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Class XII - Accountancy Quiz

Total questions: 100

Worksheet time: 1hrs 15mins

Name
Class
Date
1.

Gain of Revaluation at the time of retirement is transferred to:


a)

All Partners

b)

Outgoing partner

c)

Remaining Partner

d)

Retiring Partner

2.

Gaining ratio is calculated by


a)

Old ratio – new share

b)

Old share + acquired share

c)

New share – old share

d)

New share + old share

3.

Gaining ratio is calculated at the time of

a)

Admission of a partner

b)

Retirement of a Partner

c)

Dissolution of a partnership firm

d)

(d) Both (a) and (c)

4.

If Goodwill is appearing in the balance sheet , it will be Credited to


a)

Gaining partner

b)

Retiring partners

c)

All partners

d)

Remaining Partners’

5.

If the retiring partner is not paid full amount due to him immediately on retirement, his balance is transferred to his

a)

Loan A/c

b)

Capital A/c

c)

Bank A/c

d)

Suspense A/c

6.

A, B, C are partners sharing profit and losses in the ratio of 4:3:1: B retires and gives his share of profit to A Rs. 3,600 and C Rs. 4,500. What is the Gaining sharing ratio of A and C?

a)

4:5

b)

2:1

c)

68:48

d)

(d) 4: 1

7.

In which ratio Retiring partner is compensated by the continuing partner for his share of goodwill,in which ratio?

a)

Gaining ratio

b)

Sacrificing ratio

c)

Old ratio

d)

(d) New ratio

8.

Revaluation account is prepared at the time of :


a)

Admission of partner

b)

Retirement of a partner

c)

Death of a partner

d)

Reconstitution of the firm

9.

Revaluation account is prepare to calculate gain or loss at the time of


a)

Admission of partner

b)

Retirement of a partner

c)

Death of a partner

d)

All of a above

10.

A, B and C are partners in a firm sharing profit and losses in 3:4:2 B retire from the firm. The profit on revaluation on that date was Rs. 72,000, New ratio between A and C is 5:3 Profit on revaluation will be distributed as:

a)

(a) A Rs. 32,000 B Rs. 24,000 C Rs. 16,000

b)

(b) A Rs. 24,000 B Rs. 32,000 C Rs. 16,000

c)

(c) A Rs. 45,000 C Rs. 27,000

d)

(d) A Rs. 47,250 C Rs. 24,750

11.

At the time of retirement of partner the amount of goodwill of retiring partner will be paid by the continuing partners in (a)   ratio.

12.

As per section 37 of the Indian partnership act 1932, in the absence of partnership deed, the retiring partner is entitled to interest @ (a)   till the time amount due to him is not paid.

13.

(a)   account is prepared when amount payable to outgoing partner is paid in installments with interest.

14.

In case of retirement of a partner, any one of continuing partner sacrifice his share then his capital will be (a)   .

15.

At the of retirement of a partner Provision for bad and doubtful debts appears in in balance sheet and all Debtors become good at the time of retirement , then provision for bad & doubtful debts will be (a)   in revaluation account.

16.

P, Q and R are partners sharing profits in the ratio of 8:5:3. P retires. Q takes 3/16th share from P and R takes 5/16th share from P. What will be the new profit sharing ratio?

a)

1:1

b)

10:6

c)

9:7

d)

5:3

17.

X, Y and Z are partners sharing profits and losses in the ratio of 4:3:2. Y retires and surrenders 1/9th of his share in favour of X and the remaining in favour of Z. The new profit sharing ratio will be:

a)

1:8

b)

13:14

c)

8:1

d)

14:13

18.

At the time of retirement of a partner, share of retiring partner’s goodwill will be credited to ---------------- Capital Account(s).

a)

remaining partners

b)

retiring partner

c)

sacrificing and gaining partner

d)

both a and b

19.

When the balance sheet is prepared after retirement (subsequent to preparation of Revaluation Account), ------------- values are shown in it

a)

historical

b)

realisable

c)

marked

d)

revalued

20.

As per section ------------ of the Indian Partnership Act, a retiring partner becomes entitled to profits after retirement if his dues remain unpaid

a)

section 73

b)

section 26

c)

section 4

d)

section 37

21.

At the time of retirement, amount remaining in Investment Fluctuation Reserve after meeting the fall in value of Investment is:

a)

a) Credited in Sacrificing Ratio

b)

a) Credited in new ratio

c)

a) Credited in old ratio

d)

a) Credited in gaining ratio

22.

The executer is entitles to all the right of a (a)   .

23.

Share of goodwill of the decease partner is (a)   to his capital account.

24.

In case of death of a partner the profit may be estimated on the basis of ______ and_______.

(a)  

25.

The balance in the capital account of the deceased partner is transferred to his (a)   account.

26.

Interest on drawings due from deceased partner till the date of the death is (a)   to his capital account.

27.

A, B, C were partners sharing Profit and Losses in the ratio of 3.2.1 Books are closed on 31stMarch every year. C dies on 30th, Nov 2018. Under the partnership deed, the executors of deceased partner are entitled to his share of profit up to the date of death, Profit as on ended 31st Mar 2018 was Rs. 2,40,000 C’s share of profit will be

a)

26667

b)

40000

c)

30000

d)

53333

28.

An account prepared to ascertain the gain or loss at the time of death of a partner is called


a)

(a) A realisation Account

b)

(b) Executors Account

c)

(c) Revaluation Account

d)

(d) Decreased Partner

29.

In the event of death of a partner of employees provided fund appears in the balance will be shown in


a)

Capital A/c (Cr.)

b)

Account (Dr.)

c)

Liability side [Balance Sheet]

d)

Asset side[Balance Sheet]

30.

A and B were partners. They shared profits as A- ½; B- 1/3 and carried to reserve 1/6. B died. The balance of reserve on the date of death was Rs. 30,000. B’s share of reserve will be:

a)

Rs. 10,000

b)

Rs. 8,000

c)

Rs. 12,000

d)

Rs. 9,000

31.

Accounts Receivable can also be known as

a)

Creditors

b)

Debtors

c)

Bank Account

d)

People that you owe money to

32.

paying the rent would be an example of

a)

cash inflow

b)

cash outflow

33.

selling an asset would be an example of

a)

cash inflow

b)

cash outflow

34.

shows the movement of cash during a specific time frame that has already occured

a)

cash flow statement

b)

cash flow projection

35.

Which is not a category of cash flow?

a)

Operating

b)

Investing

c)

Financing

d)

Current Assets

36.

The following would appear in which section of the cash flow statement?


cash payments for equipment

a)

Operating

b)

Investing

c)

Financing

37.
Which accounting  standard  is  applicable  while  preparing  a  cash  flow  statement ? 
a)
AS-4
b)
AS-3 
c)
AS-3(Revised) 
d)
Schedule  III 
38.
While  preparing a cash flow  statement  business  activities are  classified into ? 
a)
03 categories
b)
06 categories
c)
04 categories
d)
02 categories 
39.

A cash flow statement shows an overview of money flowing in and out of a company

a)

True

b)

False

40.
Cash Flow Statement is based upon
 
a)
Cash basis of accounting
b)
Accrual basis of accounting
c)
Credit basis of accounting 
d)
None of the above
41.
Which of the following statements are false?
A) Cash Flow Statement is helpful in the formation of policies.
B) Cash Flow Statement is useful for external analysis
C) Cash Flow Statement is helpful in estimating future cash flow 
a)
Both A and B
b)
Both A and C
c)
Both B and C 
d)
None of the above
42.
While calculating Operating Net Profit which of the following is added to Net profit ____
a)
Refund of Tax
b)
Dividend received
c)
Transfer to General Reserve
d)
Gain on sale of assets
43.
Cash deposited into bank will result in ____ of cash
a)
Inflow
b)
Outflow
c)
No flow
d)
All
44.

The most commonly used tools for financial analysis are:

a)

Comparative Statements

b)

Common-Size Statement

c)

Accounting Ratio

d)

All of the above

45.

Comparative Statements are analytical tool for:

a)

Horizontal analysis

b)

Vertical analysis

c)

Static analysis

d)

External analysis

46.

Common -Size Statements are analytical tool for:

a)

Vertical analysis

b)

Horizontal analysis

c)

Both (a) and (b)

d)

Neither (a) nor (b)

47.

Common-Size statements are prepared:

a)

In form of ratios

b)

In the form of percentages

c)

In the form of (a) and (b) both

d)

None of the above (a) and (b)

48.

Which one of the following items is not a tool used for financial analysis?

a)

Comparative Statements

b)

Ratio Analysis

c)

Common Size Statement

d)

Statement of Dividend Distribution

49.

Which one of the following items is not a method/tool of analysis of financial statements?

a)

Trend Analysis

b)

Statement of Affairs

c)

Cash Flow Statement

d)

Comparative Statements

50.

Which of the following is the objective of Comparative statements?

a)

To make the data simpler and understandable

b)

To indicate the trend

c)

To help in forecasting

d)

All of the above

51.

Which of the following is device of comparative statements?

a)

Comparison expressed in terms of absolute data

b)

Comparison expressed in terms of percentages

c)

Comparison expressed in terms of ratios

d)

All of the above

52.

Comparative Balance Sheet:

a)

Provide a summarized view of the operations of the firm

b)

Presents the financial position of the firm

c)

Presents the change in various items of Balance Sheet

d)

None of the above

53.

Comparative Statement of Profit and Loss provides information about:

a)

Rate of increase or decrease in revenue from operations

b)

Rate of increase or decrease in cost of revenue from operations

c)

Rate of increase or decrease in net profit

d)

All of the above

54.

Fixed Assets of a company increased from Rs. 3,00,000 to Rs. 4,00,000. What the percentage of changes?

a)

25%

b)

33.3%

c)

20%

d)

40%

55.

A company's current liabilities decreased from Rs.4,00,000 to Rs.3,00,000. What is the percentage of change?

a)

25%

b)

33.3%

c)

20%

d)

40%

56.

Payment of Income Tax is considering as

a)

Direct expenses

b)

Indirect expenses

c)

Operating expenses

d)

None of the above

57.

Which objective is not fulfilled by comparative statement of Profit and Loss:

a)

To compare the items of Statement of Profits and Loss of two years

b)

To know the absolute changes in items of Statement of profit and loss

c)

To show the change in financial position

d)

To know the percentages changes in items of Statement of Profit and Loss

58.

In comparative statements change in different items is presented in the form of ............

a)

Money values

b)

Percentages

c)

Both Money Values and Percentages

d)

None of the above

59.

What is gross profit + material consumed?

a)

Purchases

b)

Revenue from operations

c)

Opening inventory

d)

Closing inventory

60.

Main objective of Common Size statement is:

a)

To present the changes in various items

b)

To provide for a common base for comparison

c)

To establish relationship between various items

d)

All of the above

61.

Main objective of Common Size Balance Sheet is:

a)

To establish relationship between revenue from operations and other items of statement of profit and loss

b)

To present changes in assets and liabilities

c)

To present changes in various items of income and expenses

d)

All of the above

62.

Common Size statements are prepared:

a)

in the form of ratio

b)

in the form of percentages

c)

in both of the above

d)

none of the above

63.

Which of the following is untrue:

a)

Common size Balance sheet

b)

Common size Statement of Profit and Loss

c)

Common size Cash flow statement

d)

None of the above

64.

Main objective of Common Size Statement of profit and loss is:

a)

To present changes in assets and liabilities

b)

To judge the financial soundness

c)

To establish relationship between revenue from operations and other items of statement of profit and loss

d)

All of the above

65.

In the Balance sheet of a Common size statement:

a)

Figure of share capital is assumed to be 100

b)

Figure of current liabilities is assumed to be 100

c)

Figure of fixed assets is assumed to be 100

d)

Figure of total assets is assumed to be 100

66.

In a common size Balance sheet, total liabilities are assumed to be equal to:

a)

1

b)

10

c)

100

d)

1000

67.

Total assets of a firm are Rs.20,00,000 and its fixed assets are Rs.8,00,000. What will be the percentage of fixed assets on total assets?

a)

60%

b)

40%

c)

29%

d)

71%

68.

If total assets of a firm are Rs.8,20,000 and its fixed assets are Rs.5,90,400. What will be percentage of current assets on total assets?

a)

42%

b)

58%

c)

28%

d)

72%

69.

Debenture premium can be used to :

a)

(a) Write off the discount on issue of shares or debentures

b)

(b) Write off the premium on redemption of shares or debentures

c)

(c) Write off capital loss

d)

(d) All of the above

70.

A company issued ₹ 1,00,000 12% debentures of ₹ 100 each. The amount of interest on debentures will be:

a)

(a) ₹ 12,000

b)

(b) ₹ 1,20,000

c)

(c) ₹ 12,00,000

d)

(d) None of these

71.

When debentures are issued as collateral security, which entry has to be passed ?

a)

(a) Debenture Suspense A/c Dr. To Debentures

b)

(b) No entry has to be made

c)

(c) (a) or (b)

d)

(d) None of these

72.

F Ltd. purchased machinery for a book value of ₹ 4,00,000. The consideration was paid by issue of 10% Debentures of ₹ 100 each at a discount of 20%. The Debenture Account will be credited by :

a)

(a) ₹ 4,00,000

b)

(b) ₹ 5,00,000

c)

(c) ₹ 3,20,000

d)

(d) ₹ 4,80,000

73.

Discount on issue of Debentures should be written off:

a)

(a) Out of Securities Premium Account

b)

(b) Out of Capital Profits

c)

(c) Out of Statements of Profit and Loss

d)

(d) In the above order over the period of debentures

74.

Discount on issue of Debentures is in the nature of:

a)

(a) Revenue Loss

b)

(b) Capital Loss

c)

(c) Deferred Revenue Expenditure

d)

(d) None of there

75.

If debentures of ₹ 4,50,000 are issued for the consideration of net assets of ₹ 5,00,000 balance ₹ 50,000 will be credited to:

a)

(a) Profit & Loss A/c

b)

(b) Goodwill A/c

c)

(c) General Reserve A/c

d)

(d) Capital Reserve A/c

76.

Deep Ltd. issue 10,00,000, 7 % debentures of 100 Rs. each at a discount of 4%, redeemable after 5 years at a premium of 6%. Loss issue of debentures is :

a)

(a) ₹ 10,00,000

b)

(b) ₹ 6,00,000

c)

(c) ₹ 16,00,000

d)

(d) ₹ 4,00,000

77.

Debentures are a part of

a)

Shareholders' fund

b)

Borrowed funds

c)

Borrowings from Bank

d)

None of these

78.

Debentures are shown in the balance sheet of a company under the head of

a)

Non current liabilities

b)

Current liabilities

c)

Share Capital

d)

None of these

79.

Debenture holders are

a)

Owners of the company

b)

Lenders of the company

c)

Vendors of the company

d)

Customers of the company

80.

Debenture interest is paid

a)

At a predetermined rate

b)

At variable rate

c)

At a rate based on net profit of the company

d)

At a rate as determined by the company from time to time

81.

At the time issue of debentures, debentures account is

a)

Credited by the amount received

b)

Credited by the issue price of the debentures

c)

Credited by the nominal (face) value of the debentures

d)

None of the above

82.

When debentures are issued at a discount, the discount is written off

a)

After debentures have been redeemed

b)

In the year when debentures are issued

c)

During the life of the debentures

d)

None of these

83.

Interest on debentures is paid on

a)

Amount received on issue

b)

Nominal (face) value

c)

On premium

d)

None of these

84.

Debentures issued as collateral security

a)

Are recorded in the books

b)

Are not recorded in the books

c)

May or may not be recorded in the books

d)

None of these

85.

X ltd. purchased building of Y ltd. for Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of Rs. 20. 10% debentures account is credited with

a)

Rs. 5,20,000

b)

Rs. 5,00,000

c)

Rs. 4,80,000

d)

Rs. 3,20,000

86.

Discount or loss on issue of debentures is written off from

a)

Securities premium reserve

b)

Securities premium reserve (if it exists) and thereafter from statement of profit and loss

c)

Statement of profit and loss

d)

General reserve

87.
AS PER SEBI GUIDELINES AN AMOUNT EQUAL TO ___________ OF THE DEBENTURES ISSUE MUST BE TRANSFERRED TO DEBENTURE REDEMPTION RESERVE BEFORE REDEMPTION BEGINS.
a)
50%
b)
25%
c)
80%
d)
100%
88.
WHERE IS DEBENTURE REDEMPTION RESERVE TRANSFERRED AFTER THE REDEMPTION OF ALL DEBENTURES
a)
CAPITAL RESERVE A/C
b)
GENERAL RESERVE A/C
c)
STATEMENT OF PROFIT AND LOSS
d)
SINKING FUND ACCOUNT
89.
DEBENTURES CAN BE REDEEMED....
a)
BY ANNUAL DRAWINGS
b)
BY PURCHASE IN THE OPEN MARKET
c)
BY CONVERSION
d)
BY ALL THE ABOVE
90.
PROFIT ON CANCELLATION OF OWN DEBENTURES IS
a)
REVENUE PROFIT
b)
CAPITAL PROFIT
c)
OPERATING PROFIT
d)
TRADING PROFIT
91.
PROFIT ON REDEMPTION OF DEBENTURE IS TRANSFERRED TO WHICH ACCOUNT
a)
CAPITAL RESERVE ACCOUNT
b)
GENERAL RESERVE ACCOUNT
c)
SINKING FUND ACCOUNT
d)
STATEMENT OF P&L ACCOUNT
92.
WHICH OUT OF THE FOLLOWING IS NOT A METHOD OF REDEMPTION OF DEBENTURE
a)
BY DRAW OF LOTS
b)
BY PURCHASE IN THE OPEN MARKET
c)
BY REVALUATION METHOD
d)
BY CONVERSION 
93.

Receipt and Payment Account generally shows:

a)

A Debit balance

b)

Surplus or Deficit

c)

A Credit Balance

d)

Capital fund

94.

Donation received for a special purpose

a)

Should Be credited to Income and Expenditure Account

b)

Should be credited to separate account and shown in the Balance Sheet

c)

Should be shown on the assets side

d)

Should not be recorded at all.

95.

The amount of ‘Entrance Fees’ received by a Non-profit organisation (if it is received regularly) is shown in which of the following?

a)

Liability side of Balance Sheet

b)

Assets side of Balance Sheet

c)

Debit side of Income and Expenditure Account

d)

Credit side of Income and Expenditure Account

96.

Subscription received by a school for organising annual function is treated as

a)

Capital Receipt (i.e., Liability)

b)

Revenue Receipt (i.e., Income)

c)

Asset

d)

None of there

97.

What is is the main motive of non-profit organisation

a)

Profit

b)

Service

c)

Both

d)

None of the above

98.

There is no difference between Receipts and Payment Account and Income and Expenditure Account.

a)

True

b)

False

99.

Khanna sports club received ₹ 200 as subscription for the accounting year 2018 -19 and ₹ 100 are yet to be received. It also received ₹ 50 as advance subscription for subsequent year. What amount of subscription would be shown in credit side of Income and Expenditure A/C for the year ending 31 march 2019?

a)

200

b)

250

c)

300

d)

350

100.

Capital of NPO is generally known as:

a)

Equity

b)

Accumulated fund

c)

Capital fund

d)

Financial reserve