Test: Class 12 Accountancy: CBSE Sample Question Papers- Term I (2021-22)


55 Questions MCQ Test Sample Papers for Class 12 Commerce | Test: Class 12 Accountancy: CBSE Sample Question Papers- Term I (2021-22)


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Attempt Test: Class 12 Accountancy: CBSE Sample Question Papers- Term I (2021-22) | 55 questions in 90 minutes | Mock test for Class 12 preparation | Free important questions MCQ to study Sample Papers for Class 12 Commerce for Class 12 Exam | Download free PDF with solutions
QUESTION: 1

Gain / loss on revaluation at the time of change  in profit sharing  ratio of  existing  partners is shared by(i)_____ whereas in case of admission of a partner it is  shared  by (ii)________ .

Solution:
QUESTION: 2

Calculate the amount of second & final call when Abhijit Ltd, issues equity shares of ₹10 each at a premium of 40% payable on Application ₹3, on Allotment ₹5, on First Call ₹2.

Solution:

Face value of share = ₹10
Premium = 40% of ₹10 = ₹ 4
Total amount to be received on share = ₹10 + ₹4 = ₹14
Amount payable on second and final call = ₹14 – (₹3 + ₹5 + ₹2)
= ₹14 – ₹10
= ₹4

QUESTION: 3

Anish Ltd. issued a prospectus  inviting  applications  for  2,000 shares. Applications were received for 3,000 shares and pro-rata allotment was made to the applicants of 2,400 shares. If Dhruv has been allotted 40 shares, how many shares he  must  have  applied for?

Solution:

No. of Shares Dhruv applied for = 
= 48 shares

QUESTION: 4

Ambrish Ltd offered 2,00,000 equity shares of ₹10 each, of these 1,98,000 shares were subscribed. The amount  was  payable  as  ₹3 on application, ₹4 an allotment and balance on first call. If a shareholder holding 3,000 shares has defaulted on first call, what is the amount of money received on first call?

Solution:

Number of shares subscribed by public = 1,98,000
Amount payable on first call = ₹10 – (₹3 + ₹4) = ₹ 3
Amount to be received on first call = 1,98,000 × ₹3 = ₹ 5,94,000
Calls in arrear = 3,000 × ₹3 = ₹ 9,000
Amount received on first call = 5,94,000 – ₹9,000 = ₹5,85,000

QUESTION: 5

What will be the correct sequence of events?
(i) Forfeiture of shares.
(ii) Default on calls.
(iii) Re-issue of shares.
(iv) Amount transferred to capital reserve. options:

Solution:

Option (C) is correct.

QUESTION: 6

Arun and Vijay are partners in a firm sharing profits and losses in the ratio of 5:1.

If the value of machinery reflected in the balance sheet is overvalued by 33 x 1/3 %, find out the value 
of Machinery to be shown in the new Balance Sheet:

Solution:

Value of machinery to be shown in new balance sheet



= ₹ 10,000 × 3
= ₹ 30,000

QUESTION: 7

 Which of the following is true regarding  salary  to a partner when  the firm maintains fluctuating capital accounts?

Solution:

Salary to a partner is an appropriation of profit, hence to be adjusted through Profit and Loss Appropriation Account and the firm is following fluctuating capital method, hence the adjustment of salary to the partner will be adjusted through Partner’s Capital Account.

QUESTION: 8

At the time of reconstitution of a partnership firm, recording of an unrecorded liability will lead to:

Solution:

Recording of an unrecorded liability will increase the liability of the firm, hence it will be a loss to the existing partners of the firm.

QUESTION: 9

E, F and G are partners sharing profits in the ratio  of  3:3:2.  According to the partnership agreement, G is to get a minimum amount of ₹80,000 as his share of profit every year and any deficiency on this account is to be personally borne by E. The net profit for the year ended 31st March, 2021 amounted to ₹3,12,000. Calculate the amount of deficiency to be borne by E?

Solution:

Net profit of the firm = ₹3,12,000
Share of G in profit of the firm = 2/8 of ₹3,12,000

= ₹78,000
Guaranteed amount to be paid to him = ₹80,000
Deficiency in his share of profit = ₹80,000 – ₹78,000 = ₹2,000
Deficiency to be borne by E = ₹2,000

QUESTION: 10

At the time of admission of a partner, what will be the effect of the following information?
Balance in Workmen Compensation Reserve ₹40,000. Claim for workmen compensation ₹45,000.

Solution:

At the time of reconstitution of partnership, the excess of claim for workmen compensation over workmen compensation reserve is transferred to the debit side of revaluation account. Hence in this question, the excess of workmen compensation claim over workmen compensation reserve is ₹ 5,000 and ₹ 5,000 will be debited to revaluation account.

QUESTION: 11

In the absence of partnership deed, a partner is entitled to an  interest on the amount of additional capital advanced by him to the firm at a rate of:

Solution:

In the absence of partnership deed, partner is not entitled to receive any interest on the capital contributed by him.

QUESTION: 12

Revaluation of assets at the time of reconstitution is necessary because their present value may be different from their:

Solution:

As per the accrual basis, assets should be recorded in the books as per their market value.

QUESTION: 13

If average capital employed in a  firm  is  ₹8,00,000,  average  of actual profits is ₹1,80,000 and normal rate of return is 10%, then value of goodwill as per capitalization of average profits is:

Solution:

Capitalised value of average profit = 

= ₹18,00,000
Average capital employed of the firm = ₹ 8,00,000
Goodwill = Capitalized value of average profit – Capital employed= ₹18,00,000 – 8,00,000
= ₹10,00,000

QUESTION: 14

In which of the following situation Companies Act, 2013 allows for issue of shares at discount?

Solution:

As per Companies Act, 2013, Sweat Equity Shares (issued by the Company to its directors or employees at a discount or for consideration, other than cash, for providing their know–how or making available rights in the nature of intellectual property rights or value additions, by whatever name called) can be issued at discount.

QUESTION: 15

As per Section 52 of Companies Act, 2013, Securities Premium Reserve cannot be utilised for:

Solution:

Securities Premium Reserve can be utilized for some of the specific purposes specified in section 52 of the Companies Act, 2013 and these specific purposes are as follows:
(i) To issue fully paid–up bonus shares to the shareholders.
(ii) To write off preliminary expenses of the companies.
(iii) To write off the commission paid or expenses on issue of shares/debentures.
(iv) To pay premium on the redemption of preference shares or debentures of the company.
(v) Buy–back of equity shares and other securities as per Section 68.

QUESTION: 16

Net Assets minus Capital Reserve is:

Solution:

We know that while purchasing a business,
Capital Reserve =Net Assets – Purchase Consideration
Hence, Net Assets – Capital Reserve = Purchase Consideration

QUESTION: 17

Kalki and Kumud were partners sharing profits and losses  in  the  ratio of 5:3. On 1st April, 2021 they admitted Kaushtubh as a new partner and new ratio was decided as 3:2:1.
Goodwill of the firm was valued as ₹3,60,000. Kaushtubh couldn’t bring any amount for goodwill. Amount of goodwill share to be credited to Kalki and Kumud Account’s will be:

Solution:

Sacrifice made by Kalki = 


Sacrifice made by Kumud = 


Sacrificing ratio of Kalki and Kumud = 
= 3 : 1
Goodwill of the firm = ₹3,60,000
Goodwill to be brought in by Kaushtubh = 
= ₹60,000
So, Kalki’s Capital Account will be credited with= 
= ₹45,000
Kumud’s Capital Account will be credited with = 
= ₹15,000

QUESTION: 18

Sarvesh, Sriniketan and  Srinivas are  partners in the ratio  of 5:3:2. If Sriniketan’s share of profit at the end of the year amounted to ₹1,50,000, what will be Sarvesh’s share of profits? 

Solution:

Sriniketan’s share of profit  = 1,50,000 for 3/10th part
Total profit of the firm =
= ₹ 5,00,000
Sarvesh’s share in profit of the firm = 
= ₹ 2,50,000

QUESTION: 19

Seeta and Geeta are partners sharing profits and losses in the ratio 4 : 1. Meeta was the manager who received a salary of ₹4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profit for the year is ₹6,78,000 before charging salary. Find the total remuneration of Meeta.

Solution:

Meeta's Salary = ₹4,000 × 12 = ₹48,000
Additional commission =(₹6,78,000 – ₹48,000) × 5/105 = ₹ 30,000
Meeta total remuneration = ₹ 48,000 + ₹ 30,000
= ₹ 78,000

QUESTION: 20

Nusrat, Sonu and Himesh are partners sharing profits and losses in the ratio of 5 : 3 : 2. The partnership deed provides for charging interest on drawings @ 10% p.a. The drawings of Nusrat, Sonu and Himesh during the year ending March 31, 2015 amounted to ₹20,000, ₹ 15,000 and ₹10,000 respectively. After the final accounts have been prepared, it was discovered that interest on drawings has not been taken into consideration. In the adjusting entry:

Solution:


 

Journal Entry for adjustment of interest on drawings would be:
Sonu's Capital A/c Dr. 150
Himesh's Capital A/c Dr. 100
To Nusrat's Capital A/c 250 (Adjustment for omission of interest on drawings)

QUESTION: 21

Rekha and Rahul are partners in a firm sharing profits and losses in the ratio of 5 : 3. Rihan is admitted in the firm for 1/5th share of profits. He is to bring in ₹20,000 as capital and ₹ 4,000 as his share of goodwill. Which journal entry reflects the correct accounting treatment if the amount of goodwill is fully withdrawn.

Solution:

Cash withdrawn by Rekha and Rahul equal to their share of goodwill.

QUESTION: 22

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A): A firm that produces high value added products has less goodwill.
Reason (R): A firm that produces high value added products is able to earn more profits.
In the context of the above statements, which one of the following is correct? 

Solution:

A firm that produces high value added products or having a stable demand is able to earn more profits and therefore has more goodwill.

QUESTION: 23

On 1st April, 2013, Jay and Vijay entered into partnership for supplying laboratory equipment to government school situated in remote and backward areas. They contributed capitals of  ₹80,000 and ₹50,000 respectively and agreed to share the profits in the ratio of 3 : 2. The partnership deed provided that Interest on Capital shall be allowed at 9% per annum. During the year, the firm earned a profit of ₹7,800. Net Profit of the firm after appropriations is:

Solution:


Calculation of Interest on Capital :
Jay =  = ₹7,200
Vijay = 
But, Profit earned = ₹7,800
∴ Interest on capital allowed to Jay = 
= ₹4,800
Interest on capital allowed to Vijay = 
= ₹ 3,000

QUESTION: 24

A and B are partners. The net divisible profits as per Profits and Loss Appropriation Account is ₹2,50,000. The total interest on partner’s drawing is ₹4,000. A’s salary is ₹4,000 per quarter and B’s salary is ₹40,000 per annum. Find out the net profit/loss earned during the year.

Solution:

Net Profit during the year:  Divisible profits + Salary to partners – Interest on drawings
= ₹2,50,000 + ₹16,000 + ₹40,000 
      – ₹4,000
= ₹3,02,000

QUESTION: 25

Kajal, Neerav and Aisha are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They decided to admit Rajan, their landlord as a partner in the firm. Rajan brought sufficient amount of capital and his share of goodwill premium. The accountant of the firm passed the entry of rent paid for the building to Rajan in 'Profit and Loss Appropriation Account'. Choose the correct option for the approach of accountant. 

Solution:

Rent paid is not an appropriation of profit, instead it is a charge against profit, thus it should be debited to Profit and Loss Account.

QUESTION: 26

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A):
When firm’s assets are not adequate to meet its liabilities, private assets of the partners can be used to meet the firm’s liabilities.
Reason (R): Partnership firm has a separate legal entity.
In the context of the above two statements, which of the following is correct? 

Solution:

As per Law, the partners and partnership firm are not separate legal entities. 

QUESTION: 27

The subscribed capital of a company is ₹80,00,000 and the nominal value of the share is ₹100 each. There were no calls-in-arrears till the final call was made. The final call money was received made on 77,500 shares only. The balance in the calls in arrear amounted to ₹62,500. The final call on share will be: 

Solution:

Total no of shares:  = = 80,000
Final calls received on no. of shares: 
= 77,500
No. of shares on which call money not received = ₹80,000 – ₹77,500 = ₹2,500
Amount of calls-in-arrears = ₹62,500
Call money = ₹62,500 / ₹2,500
= ₹25

QUESTION: 28

When a company issues shares at a premium, the amount of premium should be received by the company:

Solution:

When a company issues shares at a premium, the amount of premium can be received by the company along with application money or allotment money or calls money. 

QUESTION: 29

Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were ₹4,00,000 and ₹6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought ₹4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's admission and choose the correct option.

Solution:

Total capital of the firm=₹4,00,000×4 = ₹16,00,000
Net worth = ₹4,00,000+ ₹6,00,000+₹4,00,000 = ₹14,00,000
Hidden goodwill = ₹16,00,000− ₹14,00,000 = ₹2,00,000

QUESTION: 30

Traders Ltd. had its capital of ₹50,000 divided into ₹10 per share. On 1st October, 2020 shares were issued at par. Amount was payable ₹7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of ₹2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:
Share Capital A/c   Dr.    ₹X
To Share Forfeiture A/c  ₹Y
To Share Allotment A/c   ₹Z
Here X, Y, and Z are:

Solution:

Share Forfeiture A/c = 1,000 × ₹7.5 = ₹7,500
Share Allotment A/c = 1,000 × ₹2.5 = ₹2,500

QUESTION: 31

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): Prospectus contains complete information about the company and the manner in which the money is to be collected from the prospective investors.
Reason (R): Because Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business.
In the context of the above two statements, which of the following is correct?

Solution:

Prospectus is a formal legal document issued by a corporate body to invite the public or investors for subscribing the securities. It contains all pertinent information about an investment offering.

QUESTION: 32

There is a profit of ₹2,500 on revaluation of assets and liabilities of the partnership firm of Mohit, Kanti and John. As a result of change in profit sharing ratio Mohit sacrifices his 3/10th share in favour of John. The partners decided to record the effect of revaluation without affecting the book values of the assets and liabilities. Which of the following will be true in reference to above situation?

Solution:

Proportionate amount of share of profit on revaluation: ₹25,000 × 3/10 = ₹7,500

QUESTION: 33

A company issued 50,000 shares of ₹20 each at 5% premium. ₹10 were payable on application and balance on allotment. What will be the allotment amount?

Solution:

Issued share 50,000 @20 each at 5% premium = ₹20 × 5/100 = ₹1
On application = 50,000 × ₹10 = ₹5,00,000
On allotment = 50,000 × ₹11 = ₹5,50,000

QUESTION: 34

Agarwal Ltd. purchased a running business from Vikas Ltd. for a sum of ₹2,50,000 payable as ₹2,20,000 in fully paid equity shares of ₹10 each and balance by a bank draft. The assets and liabilities consisted of the following : Plant and Machinery ₹ 90,000; Building ₹ 90,000; Sundry Debtors ₹30,000; Stock ₹ 50,000; Cash ₹ 20,000; Sundry Creditors ₹20,000. The amount credited to Capital Reserve will be:

Solution:

QUESTION: 35

Mohit and Rohan share profits and losses in the ratio of 2 : 1. They admit Rahul as partner with 1/4th share in profits with a guarantee that his share of profit shall be atleast ₹50,000. The net profit of the firm for the year ending 31st March, 2015 was ₹1,60,000. Deficiency borne by Rohan is:

Solution:

The new profit sharing ratio after admission of Rahul comes 2:1:1. As per this ratio the share of partners in the profit comes to:
Mohit =  
Rohan = 
Ralul   = 
But, since Rahul has been given a guarantee of minimum of ₹30,000 as his share of profit, the deficiency of ₹10,000 (₹30,000 – ₹40,000) shall be borne by Mohit and Rohan in the ratio in which they share profits and losses between themselves, viz. 2 : 1 as follows :
Mohit's share in deficiency comes to 2/3 × ₹ 10,000 = ₹6,667
Rohan's share in deficiency comes to 1/3 × ₹10,000 = ₹3,333

QUESTION: 36

'WX Ltd.’ was registered with an authorised capital of 2,00,000 equity shares of ₹10 each. The company offered 1,50,000 shares to the public for subscription. 1,45,000 shares were subscribed. All calls were made and were duly received except the final call of ₹3 on 5,000 shares. What will the amount of subscribed but not only fully paid equity shares?

Solution:

QUESTION: 37

Question no.’s 37 and 38 are based on the hypothetical situation given below :
Rajiv, Poonam and Abhishek are partners sharing profits in the ratio of 3 : 2 : 1 respectively. From 1st January, 2019 they decided to share profits in the ratio of 1 : 3 : 2. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at three years' purchase of average of five years’ profits. The profits and losses of the preceding five years are:
2014 : ₹ 1,20,000 2015 : ₹ 3,00,000
2016 : ₹ 3,40,000 2017 : ₹ 3,80,000
2018 : ₹ 1,40,000 (Loss)

_____ partner sacrifices the share of profit.

Solution:

Rajiv = 
Poonam = 
Abhishek = 

QUESTION: 38

Question no.’s 37 and 38 are based on the hypothetical situation given below :
Rajiv, Poonam and Abhishek are partners sharing profits in the ratio of 3 : 2 : 1 respectively. From 1st January, 2019 they decided to share profits in the ratio of 1 : 3 : 2. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at three years' purchase of average of five years’ profits. The profits and losses of the preceding five years are:
2014 : ₹ 1,20,000 2015 : ₹ 3,00,000
2016 : ₹ 3,40,000 2017 : ₹ 3,80,000
2018 : ₹ 1,40,000 (Loss)

What is the amount of goodwill to be compensated by the gaining partners?

Solution:

The gaining ratio is 1 : 1.

QUESTION: 39

Question no.’s 39 to 41 are based on the hypothetical situation given below :
X Ltd issued 2,00,000 shares of ₹ 100 each. Amount to be paid on application ₹ 30 per share; on allotment ₹ 40 per share and on first & final call ₹ 30 per share. All money was duly subscribed and paid towards the nominal value of shares except on 9,000 shares who failed to pay allotment and calls money. These shares were forfeited. 5,000 shares were re-issued at ₹ 80 per share fully paid.
Which amount of the following will be shown into the Balance Sheet of the company under the sub-head “Share Capital”?

Solution:

Share Capital = Subscribed Capital – Forfeited shares + Share Forfeiture amount
= ₹ 2,00,00,000 – (4,000 × ₹ 100) + 
₹ 1,20,000
= ₹ 1,97,20,000

QUESTION: 40

Question no.’s 39 to 41 are based on the hypothetical situation given below :
X Ltd issued 2,00,000 shares of ₹ 100 each. Amount to be paid on application ₹ 30 per share; on allotment ₹ 40 per share and on first & final call ₹ 30 per share. All money was duly subscribed and paid towards the nominal value of shares except on 9,000 shares who failed to pay allotment and calls money. These shares were forfeited. 5,000 shares were re-issued at ₹ 80 per share fully paid.
Which of amount the following will be called paid up share capital?

Solution:

Paid Up Capital = Subscribed Capital – Forfeited Shares
= ₹ 2,00,00,000 – (4,000 × ₹ 100) 
= ₹ 1,96,00,000

QUESTION: 41

Question no.’s 39 to 41 are based on the hypothetical situation given below :
X Ltd issued 2,00,000 shares of ₹ 100 each. Amount to be paid on application ₹ 30 per share; on allotment ₹ 40 per share and on first & final call ₹ 30 per share. All money was duly subscribed and paid towards the nominal value of shares except on 9,000 shares who failed to pay allotment and calls money. These shares were forfeited. 5,000 shares were re-issued at ₹ 80 per share fully paid.
Which amount of the following is balance in Share Forfeiture Account?

Solution:

Total Share Forfeiture Amount on 9,000 shares: ₹ 2,70,000. 5,000 shares re-issued.
On 4,000 shares forfeited amount = 

QUESTION: 42

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A): The reliability of ratios is dependent upon the correctness of the Financial Statements.
Reason (R): Ratios are calculated from the Financial Statements.
In the context of the above statements, which one of the following is correct? 

Solution:

If the Financial Statements are not true and fair, the analysis will give a false picture of the affairs of the business, e.g. if the closing stock is over-valued, not only the profitability will be overstated but the financial position will also not appear to be better. Thus, ratios are as accurate as financial statements are.

QUESTION: 43

Which of the following is not a profitability ratio?
(i) Earning per share
(ii) Return on investment
(iii) Interest Coverage Ratio
(iv) Gross Profit Ratio

Solution:

Interest Coverage Ratio is a solvency ratio.

QUESTION: 44

Which of the following will increase the current ratio which is currently 2:1?

Solution:

It will increase cash by ₹11,000 and decrease the stock by ₹10,000 and ultimately, the current ratio will improve or increase.

QUESTION: 45

Which of the following is/are correct?
(i) Fictitious Assets are the assets which do not have any physical existence.
(ii) Fictitious Assets are expected not to realise any value or render any service in future.
(iii) Fictitious Assets are to be written off against Reserve and Surplus.
(iv) Building is an example of a fictitious asset.

Solution:

Building is an example of a tangible fixed asset.

QUESTION: 46

Which of the following appears under Reserves and Surplus?
(i) Capital Reserve
(ii) Securities Premium Reserve
(iii) Capital Redemption Reserve
(iv) Debenture Redemption Reserve

Solution:
QUESTION: 47

Match the items given in Column I with the headings/subheadings (Balance sheet) as defined in Schedule III of Companies Act, 2013.

Choose the correct option:

Solution:
QUESTION: 48

The persons who have advanced money to the business on long-term basis will be interested in:

Solution:
QUESTION: 49

Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): Proprietary ratio establishes relationship between proprietor's fund and total assets.
Reason (R): The objective of calculating proprietary ratio is to measure proportion of fixed assets financed by shareholders' funds.
In the context of the above two statements, which of the following is correct? 

Solution:
QUESTION: 50

Opening Inventory ₹1,00,000; Closing Inventory ₹ 1,50,000; Purchases ₹ 6,00,000;Carriage ₹ 25,000; Wages ₹ 2,00,000. Inventory Turnover Ratio will be:

Solution:

Inventory Turnover Ratio = 
= 6.2 times

QUESTION: 51

One of the limitations of financial statements analysis is that it:

Solution:
QUESTION: 52

Revenue from Operations, i.e. sales ₹6,00,000, gross profit is 1,50,000. Gross profit ratio will be:

Solution:

GP Ratio =  = 25%

QUESTION: 53

Match Column I with Column II and select the correct answer using the options given below.

Solution:
QUESTION: 54

Current ratio of X Ltd. is 2.4:1 and Y Ltd. is 1.2:1. Choose the most appropriate option from the following :

Solution:
QUESTION: 55

Current liabilities of a firm are ₹ 3,50,000. Its current ratio is 3:1 and liquid ratio is 1.75:1. The value of inventory of the firm will be:

Solution:

Option (D) is correct.

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