New ! Accountancy MCQ Practise Tests



Public Exam Model Question Paper 2020 - 2021

12th Standard

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Accountancy

Time : 02:45:00 Hrs
Total Marks : 90

    Part I

    Answer all the questions.

    Choose the most suitable answer from the given four alternatives and write the option code with the corresponding answer.

    20 x 1 = 20
  1. Which one of the following statements is not true in relation to incomplete records?

    (a)

    It is an unscientific method of recording transactions

    (b)

    Records are maintained only for cash and personal accounts

    (c)

    It is suitable for all types of organisations

    (d)

    Tax authorities do not accept

  2. In _____ system, only personal and cash accounts are opened.

    (a)

    Single entry

    (b)

    Double entry

    (c)

    Trial balance

    (d)

    Balance Sheet

  3. There are 500 members in a club each paying Rs. 100 as annual subscription. Subscription due but not received for the current year is Rs. 200; Subscription received in advance is Rs. 300.Find out the amount of subscription to be shown in the income and expenditure account

    (a)

    Rs. 50,000

    (b)

    Rs. 50,200

    (c)

    Rs. 49,900

    (d)

    Rs. 49,800

  4. ______is a fee collection from every member only once at the time of his or her admission into the organisation.

    (a)

    Entrance fee

    (b)

    Legacy

    (c)

    Donations

    (d)

    None of these

  5. As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is

    (a)

    8% per annum

    (b)

    12% per annum

    (c)

    5% per annum

    (d)

    6% per annum

  6. Indian partnership Act was enacted in the year ___________

    (a)

    1932

    (b)

    1956

    (c)

    1991

    (d)

    1992

  7. When the average profit is Rs. 25,000 and the normal profit is Rs. 15,000, super profit is __________

    (a)

    Rs. 25,000

    (b)

    Rs. 5,000

    (c)

    Rs. 10,000

    (d)

    Rs. 15,000

  8. _________ is the profit earned by the similar business firms under normal conditions

    (a)

    Normal profit

    (b)

    Super profit

    (c)

    Average profit

    (d)

    All of these

  9. Match List I with List II and select the correct answer using the codes given below:

    List I List II
    (i) Sacrificing ratio 1. Investment fluctuation fund
    (ii) Old profit sharing ratio 2. Accumulated profit
    (iii) Revaluation Account 3. Goodwill
    (iv) Capital Account 4. Unrecorded liability
    (a)
    (i) (ii) (iii) (iv)
    1 2 3 4
    (b)
    (i) (ii) (iii) (iv)
    3 2 4 1
    (c)
    (i) (ii) (iii) (iv)
    4 3 2 1
    (d)
    (i) (ii) (iii) (iv)
    3 1 4 2
  10. The difference between old profit sharing ratio and new profit sharing ratio at time of admission is _________ ratio.

    (a)

    old ratio

    (b)

    new ratio

    (c)

    sacrifice ratio

    (d)

    gain ratio

  11. If the final amount due to a retiring partner is not paid immediately, it is transferred to

    (a)

    Bank A/c

    (b)

    Retiring partner’s capital A/c

    (c)

    Retiring partner’s loan A/c

    (d)

    Other partners’ capital A/c

  12. If the goodwill is raised to the extent of retiring partners share _______ account is to be debited

    (a)

    Cash

    (b)

    Goodwill

    (c)

    All partner’s capital

    (d)

    Retiring partners capital

  13. Match the pair and identify the correct option

    (1) Under subscription (i) Amount prepaid for calls
    (2) Over subscription (ii) Subscription above the offered shares
    (3) Calls in arrear (iii) Subscription below the offered shares
    (4) Calls in advance (iv) Amount unpaid on calls
    (a)
    (1) (2) (3) (4)
    (i) (ii) (iv) (iv)
    (b)
    (1) (2) (3) (4)
    (iv) (iii) (ii) (i)
    (c)
    (1) (2) (3) (4)
    (iii) (ii) (iv) (i)
    (d)
    (1) (2) (3) (4)
    (iii) (iv) (i) (ii)
  14. _____ shares have to be reissued at a price lesser than the face value.

    (a)

    Issue

    (b)

    Equity

    (c)

    Subscribed

    (d)

    Forfeited

  15. A limited company’s sales has increased from Rs.1,25,000 to Rs.1,50,000. How does this appear in comparative income statement?

    (a)

    + 20 %

    (b)

    + 120 %

    (c)

    – 120 %

    (d)

    – 20 %

  16. Financial statements are prepared based on _____________

    (a)

    past data

    (b)

    future cost

    (c)

    terminal cost

    (d)

    historical cost

  17. The mathematical expression that provides a measure of the relationship between two figures is called

    (a)

    Conclusion

    (b)

    Ratio

    (c)

    Model

    (d)

    Decision

  18. Which ratio is the proportion of fixed income bearing funds to equity shareholders funds?

    (a)

    Debt equity ratio

    (b)

    Capital gearing ratio

    (c)

    Proprietary ratio

    (d)

    Profitability ratio

  19. In which voucher type credit purchase of furniture is recorded in Tally

    (a)

    Receipt voucher

    (b)

    Journal voucher

    (c)

    Purchase voucher

    (d)

    Payment voucher

  20. All transactions related to payments either in cash or through bank are recorded using __________

    (a)

    journal voucher

    (b)

    sontra voucher

    (c)

    receipt voucher

    (d)

    payment voucher

  21. Part II

    Answer any 7 questions. Question no. 30 is compulsory.

    7 x 2 = 14
  22. What are the possible reasons for keeping incomplete records?

  23. Chennai tennis club had Match fund showing credit balance of Rs. 24,000 on 1st April, 2018. Receipt to the fund during the year  was Rs. 26,000. Match expenses incurred during the year was Rs. 33,000. How these items will appear in the final accounts of the club for the year ended 31st March, 2019?

  24. State where the following items shall appear in case the capital contributed by partners remain fixed
    i) Interest on capital
    ii) Withdrawal of capital
    iii) Fresh capital introduced
    iv) Drawings
    v) Share of profit by a partner

  25. From the following information, find out the value of goodwill by capitalisation method:
    (a) Average profit = Rs. 60,000
    (b) Normal rate of return = 10%
    (c) Capital employed = Rs. 4,50,000

  26. Durga and Naresh were partnership in a firm. They wanted to admit five more members in the firm. List any two categories of individuals other than minors who cannot be admitted by them.

  27. What is the purpose of calculating gaining ratio?

  28. What is over-subscription?

  29. Write a short note on
    i) Intra-firm comparison
    ii) Inter-firm comparison

  30. From the following information calculate capital gearing ratio:

    Balance Sheet (Extract) as on 31.03.2018
    Particulars Rs.
    I EQUITY AND LIABILITIES  
    1. Shareholders' funds  
      (a) Share capital  
        Equity share capital 2,00,000
        6% Preference share capital 1,00,000
      (b) Reserves and surplus  
        General reserve 1,25,000
        Surplus 75,000
    2. Non-current liabilities  
        Long-term borrowings (8% Debentures) 2,00,000
    3. Current liabilities  
        Trade payables 1,50,000
        Provision for tax 50,000
    Total 9,00,000
  31. State any five accounting reports.

  32. Part III

    Answer any 7 questions. Question no. 40 is compulsory.

    7 x 3 = 21
  33. How will the following appear in the final accounts of Karaikudi sports club for the year ending 31st March, 2019?

    Particulars Rs.
    Tournament fund on 1st April 2018 90,000
    Tournament fund investment on 1st April 2018 90,000
    Interest received on tournament fund investment 9,000
    Donation to tournament fund 10,000
    Tournament expenses 60,000
  34. The firm of A and B earned a profit of Rs.2,75,000 during the year ending on 31st March, 2015. They have decided to donate 10% of this profit to an NGO working for senior citizens. Pass necessary journal entry for the distribution of profits. Identify the values shown by the firm in donating a part of profit of NGO.

  35. State any six factors determining goodwill and explain.

  36. What are the journal entries to be passed on revaluation of assets and liabilities?

  37. Kavitha, Kumudha and Lalitha are partners sharing profits and losses in the ratio of 5 : 3 : 3 respectively. Kumudha retires from the firm on 31st December, 2018. On the date of retirement, her capital account shows a credit balance of Rs. 2,00,000. Pass journal entries if:
    i) The amount due is paid off immediately by cheque.
    ii) The amount due is not paid immediately.
    iii) Rs. 70,000 is paid immediately by cheque

  38. What are the characteristics of a company?

  39. Explain the steps involved in preparing comparative statement

  40. Bring out the limitations of ratio analysis.

  41. What is functional classifications of rational analysis? and types of functional classification.

  42. Explain how to view profit and loss statement in Tally.ERP 9.

  43. Part IV

    Answer all the questions.

    7 x 5 = 35
    1. Nathiya Textiles Ltd. forfeited 100 shares of Rs.10 each, Rs.8 called up, on which Mayuri had paid application and allotment money of Rs.6 per share. Of these 75 shares were re-issued to Soundarya by receiving Rs.7 per share paid up as Rs.8 per share. Pass journal entries for forfeiture and reissue.

    2. The following balance sheet has been prepared from the books of Pearl on 1-4-2018.

      Liabilities Rs. Assets Rs.
      Capital 2,26,000 Buildings 1,00,000
      Sundry creditors:   Furniture 10,000
      Maya A/c 24,000 Stock 20,000
          Sundry debtors  
          Peter 50,000
          Cash in hand 15,000
          Cash at bank 55,000
        2,50,000   2,50,000

      During the year the following transactions took place.
      (a) Wages paid by cash Rs. 2,000
      (b) Salaries paid by cheque Rs. 5,000
      (c) Cash purchases made for Rs. 3,000
      (d) Good purchased on credit from Yazhini Rs. 15,000
      (e) Goods sold on credit to Jothi Rs. 25,000
      (f) Payment made to Yazhini through NEFT Rs. 5,000
      (g) Cash received from Peter Rs. 30,000
      (h) Cash sales made for Rs. 6,000
      (i) Depreciate buildings at 10%
      (j) Closing stock on 31.03.2019 Rs. 15,000
      You are required to prepare trading and profit and loss account for the year ended 31-03-2019 and a balance sheet as on that date using Tally.

    1. Antony and Ranjith started a business on 1st April 2018 with capitals of Rs. 4,00,000 and Rs. 3,00,000 respectively. According to the Partnership Deed, Antony is to get salary of Rs. 90,000 per annum, Ranjith is to get 25% commission on profit after allowing salary to Antony and interest on capital @ 5% p.a. but after charging such commission. Profit-sharing ratio between the two partners is 1:1. During the year, the firm earned a profit of Rs. 3,65,000.
      Prepare profit and loss appropriation account. The firm closes its accounts on 31st March every year.

    2. Calculate (i) Inventory turnover ratio (ii) Trade receivables turnover ratio (iii) Trade payables turnover ratio and (iv) Fixed assets turnover ratio from the following information obtained from Dolphin Ltd.

      Particulars As on 31st March 2017 Rs. As on 31st March 2018 Rs.
      Inventory 70,000 50,000
      Trade receivables 40,000 30,000
      Trade payables 20,000 25,000
      Fixed assets 2,75,000 2,50,000

      Additional information:
      (i) Revenue from operations for the year              Rs.5,25,000
      (ii) Purchases for the year                                  Rs.2,25,000
      (iii) Cost of revenue from operations                    Rs.3,00,000    
      Assume that sales and purchases are for credit

    1. Richard and Rizwan started a business on 1st January 2018 with capitals of Rs. 3,00,000 and Rs. 2,00,000 respectively. According to the Partnership Deed
      (a) Interest on capital is to be provided @ 6% p.a.
      (b) Rizwan is to get salary of Rs. 50,000 per annum.
      (c) Richard is to get 10% commission on profit (after interest on capital and salary to Rizwan) after charging such commission.
      (d) Profit-sharing ratio between the two partners is 3:2.
      During the year, the firm earned a profit of Rs. 3,00,000.
      Prepare profit and loss appropriation account. The firm closes its accounts on 31st December every year.

    2. On 1.1.2019, Pandiyan died and on his death the following arrangements are made:
      (i) Stock to be depreciated by 10 %
      (ii) Land is to be apprecia!.e4. by Rs.11,000
      (iii) To provide 3,000 for bad debts
      (iv) The final amount due to Pandiyan was not paid
      Prepare revaluation account, partner's capital account and the balance sheet of the firm after death

    1. From the Receipt and Payment Account given below, prepare the Income and Expenditure Account of clean Delhi club for the year ended March 31, 2017

      Dr Receipt and Payment Account for the year ending March 31st, 2017 Cr
      Receipts Rs Payments Rs
      To Balance b/d   By Salary 1,500
      Cash in hand 3200 By Rent 800
      To Subscriptions 22,500 By Electricity 3,500
      To Entrance fees 1,250 By Taxes 1,700
      To Donations 2,500 By Printing stationery 380
      To Rent of hall 750 By Sundry expenses 920
      To Sale of investment 3,000 By Books purchased 7,500
          By Fixed deposit with bank 5,000
          (on31-3-2014)  
          By Balance c/d  
          Cash in hand 400  
          Cash at bank 1,500 1,900
        33,200   33,200
    2. From the following information, find out the value of goodwill by capitalisation method:
      (i) Average profit Rs. 20,000
      (ii) Normal rate of return 10%
      (iii) Capital employed Rs. 1,50,000

    1. Compute the amount of total purchases and total sales of Mr. Amit from the following information for the year ending on March 31, 2018.

        Rs.
      Total debtors as on April 01, 2017 40,000
      Total creditors as on April 01,2017 50,000
      Bills receivable as on April 01, 2017 30,000
      Bills payable as on April 01, 2017 45,000
      Discount received 5,000
      Bad debts 2,000
      Return inwards 4,000
      Discount allowed 3,000
      Cash sales 10,000
      Cash purchases 8,000
      Total debtors as on March 31, 2018 80,000
      Cash received from debtors 1,00,000
      Cash paid to creditors 80,000
      Cash received against bills receivable 25,000
      Payment made against bills receivable 40,000
      Total creditors as on March 31, 2018 40,000
      Bills payable as on March 31, 2018 50,000
      Bills receivable as on March 31,2018 35,000
    2. From the following Receipts and Payments account of Coimbatore Cricket Club for the year ending 31st March 2016, prepare income and expenditure account for the year ending 31st March, 2016 and a balance sheet as on that date.

      In the books of Coimbatore Cricket Club Receipts and Payments Account for the year ending 31st March, 2016
      Receipts Rs. Payments Rs.
      To Balance b/d:   By Maintenance 5,000
      Cash at bank 8,000 By Furniture 15,000
      To Subscriptions 11,000 By Tournament expenses 1,400
      To Sale of old bats and balls 100 By Secretary’s honorarium 4,500
      To Subscription for tournament 2,000 By Bats and balls 7,400
      To Legacies 20,000 By Balance c/d:  
          Cash at bank 7,800
        41,100   41,100

      Additional information:
      On 1st April, 2015 the club had stock of balls and bats Rs. 3,000 and an advance subscription of Rs. 500. Surplus on account of tournament should be kept in reserve for permanent pavilion.Subscription due on 31.03.2016 was Rs. 2,000. Stock of bats and balls on 31.3.2016 was Rs. 1,000.

    1. Rajesh, Sathish and Mathan are partners sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Their balance sheet as on 31.3.2017 is given below

      Liabilities Rs Rs Asset Rs Rs
      Capital accounts:     Premises   4,00,000
      Rajesh 4,00,000   Machinery   4,20,000
      Sathish 3,00,000   Debtors   1,60,000
      Mathan 2,50,000 9,50,000 Stock   3,00,000
      General reserve   1,20,000 Cash at bank   20,000
      Creditors   50,000      
      Bills payable   1,80,000      
          13,00,000     13,00,000

      Mathan retires on 31st March, 2017 subject to the following conditions:
      (i) Rajsh and Sathish will share profits and losses in the ratio of 3:2
      (ii) Assets are to be revalued as follows:
      Machinery  Rs. 3,90,000, Stock Rs. 2,90,000, Debtors Rs. 1,52,000.
      (iii) Goodwill of the firm is valued at Rs. 1,20,000
      Prepare necessary ledger accounts and the balance sheet immediately after the retirement of Mathan.

    2. From the following particulars, calculate the trend percentages of Anu Ltd.

      Particulars Rs.in thousands
        Year 1 Year 2 Year 3
      I EQUITY AND LIABILITIES      
      Shareholders’ Fund 500 550 600
      Non-current liabilities 200 250 240
      Current liabilities 100 80 120
      Total 800 880 960
      II ASSETS      
      Non-current assets 600 720 780
      Total 800 880 960
    1. Following is the receipts and payments accounts of Literacy club for the year ended 31st March 2016

      Receipts Rs. Rs. Payments Rs.
      To Balance c/d   19,550 By Salary 3,000
            By News papers 2,050
      To Subscribtions     By Electricity bill 1,000
      2014·2015 1,200   By Fixed deposit 20,000
      2015·2016 26,500   (on 1st July, 2015 @  
        500   9% per annum  
          28,200 By Books 10,600
            By Rent 6,800
      To slae old news paper   1,250 By Furniture 10,500
      To Government grants   10,000 By Balance dd 11,200
      To sale of old furniture   5,700    
      (book value Rs.7,000)        
      To interest on fixed deposits   450    
          65,150   65,150

      Additional information:
      (i) Subscription outstanding as on 31st March, 2015 were Rs. 2000 and on 31st March, 2016 Rs. 2,500.
      (ii) On 31st March, 2016 Salary outstanding was Rs. 600 and rent outstanding was Rs. 1,200.
      (iii) The club owned furniture Rs. 15,000 and books Rs. 7,000 on 1st April, 2015. Prepare income and expenditure account of the dub for the year ended 31st March 2016 and as certain capital fund on 31st March, 2015. Also prepare a balance sheet as on 31st March, 2016.

    2. Kokila and Mala were sharing profits in the ratio of 4:3. Chandra was admitted in the business as a partner with \(\frac{3}{7}\)th share in the profits of the firm which she takes \(\frac{2}{7}\) th from Kokila and \(\frac{1}{7}\) th from Mala. Find out New profit Ratio and the sacrificing ratio.

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