CBSE Class 12 Accountancy — MCQs

There are two statements Assertion (A) and Reason (R) : Assertion (A) : Partnership Agreement becomes the basis of relationship among the partners. Reason (R) : Partnership is the result of an agreement between two or more persons to do business and share its profits and losses. Choose the correct option from the following :

Which of the following is not correct about collateral security? OR 'A company is formed according to the provisions of Company Law' indicates which of the following characteristics of a company?

The nominal capital of Dharma Ltd. is :

The issued capital of the company is :

Subscribed and not fully paid capital of Dharma Ltd. will be :

(a) The process of identifying the financial strengths and weaknesses of the firm by properly establishing relationships between the various items of Balance Sheet and the Statement of Profit and Loss is called : (A) Comparative Statement Analysis (B) Cash Flow Analysis (C) Financial Analysis (D) Common Size Analysis OR (b) Ratios calculated to measure the ability of the business to pay the amount due to stakeholders as and when it is due are known as : (A) Solvency ratios (B) Liquidity ratios (C) Activity ratios (D) Profitability ratios

Which of the following transaction will affect the 'Gross Profit Ratio' of a company : (i) Revenue from operations Rs. 1,00,000 (ii) Purchased goods worth Rs. 70,000. (iii) Goods costing Rs. 15,000 withdrawn for personal use. (iv) Goods costing Rs. 50,000 sold for Rs. 60,000.

(a) Purchase of marketable securities or short term investments are not considered for the preparation of cash flow statement because : (A) These are current assets (B) These constitute cash equivalents (C) These are intangible assets (D) These are tangible assets OR (b) Which of the following will not amount to cash outflow from operating activities ? (A) Purchase of marketable securities (B) Cash payment to suppliers of goods (C) Payment of employee benefit expenses (D) Payment of insurance premium

The books of Mehul and Barkha showed that their capital employed on 31st March, 2025 was Rs. 6,00,000. If the normal profits are Rs. 60,000 and super profits are Rs. 20,000, then the normal rate of return is :

(a) If 600 shares of Rs. 10 each, issued at a premium of Rs. 1 per share are forfeited on which Rs. 8 per share (including premium) have been called and Rs. 6 per share (including premium) have been paid, then 'Share Forfeiture Account' will be ________ by ________. (A) credited, Rs. 3,000 (B) debited, Rs. 3,000 (C) debited, Rs. 3,600 (D) credited, Rs. 3,600 OR (b) T.D. Ltd. issued Rs. 10,00,000, 9% debentures at a discount of 10% redeemable at a certain rate of premium. On issue of these 9% debentures, the premium on redemption of debentures account was credited by Rs. 1,00,000. The amount of 'loss on issue of debentures' was : (A) Rs. 1,00,000 (B) Rs. 2,00,000 (C) Rs. 3,00,000 (D) Nil

(a) Tarun and Tej were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April 2024, Tej had given a loan of Rs. 50,000 to the firm. The net profit of the firm before charging interest on loan was Rs. 3,75,000. The firm closes its books on 31st March every year. The amount of profit transferred from Profit and Loss Account to Profit and Loss Appropriation Account will be : (A) Rs. 3,75,000 (B) Rs. 3,72,000 (C) Rs. 4,25,000 (D) Rs. 3,78,000 OR (b) Ashok and Vasu were partners in a firm sharing profits and losses in the ratio of 4 : 3. Their capitals on 31st March, 2025 were Rs. 3,00,000 and Rs. 3,75,000 respectively. During the year ended 31st March, 2025 Vasu withdrew Rs. 40,000 for his personal use and introduced Rs. 1,50,000 as additional capital in the business. Profit of the firm for the year ended 31st March, 2025 was Rs. 1,40,000. Vasu's capital in the beginning of the year was : (A) Rs. 2,75,000 (B) Rs. 4,25,000 (C) Rs. 2,05,000 (D) Rs. 3,45,000

Soni and Kush were partners in a firm sharing profits and losses in the ratio of 4 : 5. Hitesh was admitted as a new partner for 1/5th share in the profits of the firm. After all adjustments regarding general reserve, goodwill, and gain on revaluation of assets and reassessment of liabilities, the balances in capital accounts of Soni and Kush were Rs. 7,00,000 and Rs. 13,00,000 respectively. Hitesh brought in proportionate capital for his 1/5th share in the profits of the firm. The amount of proportionate capital brought in by Hitesh was :

Chandan, Ravi and Mahesh were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. From 1st April, 2025 they decided to share the future profits in the ratio of 3 : 2 : 1. On that date there existed a general reserve of Rs. 7,00,000 in the books of the firm which they decided to distribute among themselves. In which ratio will the general reserve be distributed among the partners? OR Suman and Tanya were partners in a firm sharing profits and losses in the ratio of 2 : 1. With effect from 1st April, 2025, they decided to share the profits equally. On that date furniture was appearing in the books of the firm at Rs. 4,50,000. At the time of change in the profit sharing ratio, it was found to be undervalued by 10%. In the new balance sheet, furniture will be shown at :

Tula, Ram and Madhvi were partners in a firm. The partnership deed provided for interest on partners drawings @ 12% p.a. The firm closes its books on 31st March every year. Starting from 31st December, 2025 Madhvi withdrew Rs. 40,000 at the end of every month for her personal use. Interest on Madhvi's drawings will be :

Dharam, Karam and Raman were partners in a firm sharing profits and losses in the ratio of 7 : 8 : 5. On 31st March, 2025, Raman retired from the firm. Dharam and Karam decided to share profits in future in the ratio of 11 : 9. Their gaining ratio will be : OR Deen, Raju and Hari were partners in a firm sharing profit and losses in the ratio of 7 : 6 : 7. On 31st March, 2025 Raju died. Deen and Hari decided to take over Raju's share equally. The new profit sharing ratio between Deen and Hari will be :

Nidhi and Kunal were partners in a firm sharing profits and losses in the ratio of 4 : 1. Their capitals were Rs. 3,00,000 and Rs. 2,00,000 respectively. They were entitled to interest on capital @ 6% p.a. The firm earned a profit of Rs. 15,000 during the year. Interest on partners' capitals will be :

On 1st April, 2024, Dina Ltd. issued 8,000, 9% debentures of Rs. 100 each at a discount of 6%. The total amount of interest due on debentures for the year ended 31st March, 2025 will be :

Sakshi Ltd. forfeited 500 equity shares of Rs. 10 each, issued at a premium of Rs. 2 per share for non-payment of second and final call of Rs. 4 per share (including premium). The maximum amount of discount at which these shares can be reissued is :

Surya Ltd. issued 50,000 equity shares of Rs. 10 each. The amount was payable as follows : on Application - Rs. 3 per share, on Allotment - Rs. 2 per share, on First and Final Call - the balance. Usha, to whom 700 shares were allotted, paid her entire share money on allotment. Raj, to whom 300 shares were allotted did not pay the first and final call. The amount to be debited to Bank Account for first and final call after it becomes due will be :

Sidhi, Gyan and Gayatri were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 2. On 31st March, 2025 their firm was dissolved. At the time of dissolution a debtor amounting to Rs. 25,000 whose debt had been previously written off as bad debt paid 40% of the amount. The accounting treatment for the above transaction will be :

Chaman and Vatika were partners in a firm sharing profits and losses in the ratio of 4 : 5. They admitted Mohan as a new partner for $\frac{1}{5}$th share in the profits of the firm. Mohan acquired his share equally from Chaman and Vatika. The new profit sharing ratio of Chaman, Vatika and Mohan will be :

Lalita, Shivani and Madhuri were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Madhuri retired from the firm on 31st March, 2025. The balance in her capital account on the date of her retirement was Rs. 1,80,000. Lalita and Shivani agreed to pay her Rs. 2,25,000 in full settlement of her claim. The goodwill of the firm on Madhuri's retirement was :

The amount of 'Share Capital' presented in the Balance sheet of Dharma Ltd. under 'Shareholders Funds' will be :

Subscribed and fully paid capital of Dharma Ltd. will be :

In the Notes to Accounts, the amount to be shown under 'Share Forfeiture Account' will be :