New ! Accountancy MCQ Practise Tests

All Chapter 5 Marks

12th Standard

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Accountancy

Time : 03:00:00 Hrs
Total Marks : 190
    Answer All The Following Question:
    38 x 5 = 190
  1. Bharathi does not maintain her books of accounts under double entry system. From the following details prepare trading and profit and loss account for the year ending 31st March, 2019 and a balance sheet as on that date.

    Dr.     Cash Book       Cr.
    Receipts Rs. Payments Rs.
    To balance b/d 32,000 By Purchases A/c 56,000
    To Sales A/c 1,60,000 By Creditors A/c 80,000
    To Debtors A/c 1,20,000 By General expenses A/c 24,000
        By Wages A/c 10,000
        By Balance c/d 1,42,000
      3,12,000   3,12,000
    Particulars 1.4.2018
    Rs.
    31.3.2019
    Rs.
    Stock of goods 40,000 60,000
    Debtors 38,000 ?
    Creditors 58,000 52,000
    Machinery 1,70,000 1,70,000

    Additional information: 
    (i) Credit purchases 74,000
    (ii) Credit sales 1,40,000
    (iii) Opening capital 2,22,000
    (iv) Depreciate machinery by 10% p.a.

  2. Selvam does not keep his books under double entry system. From the following information prepare trading and Profit and loss A/c and Balance Sheet as on 31-12-2018

    Particulars 1-1-2018
    Rs.
    31-12-2018
    Rs.
    Machinery 60,000 60,000
    Cash at bank 25,000 33,000
    Sundry debtors 70,000 1,00,000
    Stock 45,000 22,000
    Bills receivable 20,000 38,000
    Bank loan 45,000 45,000
    Sundry creditors 25,000 21,000
      Rs.   Rs.
    Cash sales 20,000 Credit sales 1,80,000
    Cash purchases 8,000 Credit purchases 52,000
    Wages 6,000 Salaries 23,500
    Advertisement 7,000 Interest on bank loan 4,500
    Drawings 60,000 Additional capital 21,000

    Adjustments:
    Write off depreciation of 10% on machinery. Create a reserve of 1% on debtors for doubtful debts.

  3. From the following details, find out credit purchases:

    Particulars Rs.
    Opening sundry creditors 75,000
    Closing sundry creditors 90,000
    Cash paid to sundry creditors 22,500
    Discount received 15,000
    Purchase returns 7,500
  4. From the following details of vijay who maintains incomplete records, prepare trading and profit and loss account for the year ended 31st March 2018 and a Balance sheet as on the date.

    Particulars As on 1.4.2017
              Rs.
    As on 31.3.2018
              Rs.
    Sundry Creditors 37,500 43,750
    Furniture 2,500 2,500
    Cash 6,250 10,000
    Sundry debtors 62,500 87,500
    Stock 25,000 12,500

     Other details:

      Rs.
    Drawings 10,000
    Discount received 3,750
    Discount allowed 2,500
    Cash received from sundry debtors 1,35,000
    Cash paid to creditors 1,12,500
    Sales returns 3,750
    Purchase returns 1,250
    Sundry expenses paid 8,750
  5. From the following receipts and payment account, prepare income and expenditure account of Kumbakonam Basket Ball Association for the year ended 31st March, 2018

    Receipts Rs. Rs. Payments Rs. Rs.
    To Balance b/d     By Rent of ground paid   12,000
    Cash in hand 23,000   By Printing charges   5,000
    To Rent of hall received 12,000 6,000 By Insurance for building   2,000
    To Subscription received   9,000 By Tournament expenses   16,000
    To Life membership fees   7,000 By Audit fees   3,000
    To Locker rent received   2,000 By Sports materials purchased   4,000
          By Balance c/d    
          Cash in hand 2,000  
          Cash at bank 14,000 16,000
        59,000     59,000
  6. From the following Receipts and Payment account of Yercaud Youth Association, prepare Income and expenditure account for the year ended 31st March, 2019 and the balance sheet as on that date.

    Dr. Receipts and Payments Account for the year ended 31st March, 2019 Cr
    Receipts Rs. Payments Rs.
    To Balance b/d   By Salary 14,000
    Cash in hand 9,600 By Office expenses 7,200
    To Government grants   By Books purchased 15,000
    for purchase of books 10,000 By Stationery purchased 1,800
    To Subscription 24,800 By Newspaper purchased 2,100
    To Admission fees 2,000 By Prizes awarded 5,000
    To Prize fund receipts 6,000 By Balance c/d  
    To Bank interest 1,500 Cash in hand 9,900
    To Sale of newspapers 1,100    
      55,000   55,000

    Additional information:
    (i) Opening capital fund Rs.20,000.
    (ii) Stock of books on 1.4.2018 Rs.9,200.
    (iii) Subscription due but not received Rs1,700.
    (iv) Stock of stationery on 1.4.2018 Rs.1,200 and stock of stationery on 31.3.2019, Rs.2,000

  7. From the following extract of Receipt and Payment Account and the additional information given below, compute the amount of income from subscriptions and show as how they would appear in the Income and Expenditure Account for the year ending March 31st, 2015 and Balance sheet.

    Dr Receipt and Payment Account for the year ending March 31, 2015 Cr
    Receipts Rs Payments Rs
    Subscription:      
    2013-14   7,000      
    2014-15   30,000      
    2015-16    5,000 42,000    

    Additional Information:
    (i) Subscriptions outstanding March 31, 2014 Rs. 8,500
    (ii) Total subscriptions outstanding March 31, 2015 Rs. 18,500
    (iii) Subscriptions received in advance as Rs. 4,000 on March 31, 2014.

  8. From the following Receipts and Payments Account of Trichy, Rotary dub, prepare Income and Expenditure Account for the year ended 31.03.2019

    Receipts Rs Paymenta Rs
    To Opening Balance   By Furniture Purchased 10,000
    Cash in hand 11,000 By Rent 2,800
    To Sale of old newspaper 3,600 By Postage 1,700
    To Member's Subscription 31,000 By General expenses 4,350
    To Locker rent 8,000 By Printing and stationery 45,000
    To Interest on investments 1,250 By Audit fees 5,000
    To Sale of furniture 5,000 By Closing balance  
        Cash in hand 3,000
  9. Bragathish and Naresh are partners who maintain their capital accounts under fixed capital method. From the following particulars, prepare capital accounts of partners.
     

    Particulars Bragathish
    Rs.

    Naresh
    Rs.

    Capital on 1st April 2018 4,00,000 6,00,000
    Current account on 1st April 2018 20,000(Cr.) 15,000(Dr.)
    Additional capital introduced during the 50,000 Nil
    Drawings made during the year 45,000 60,000
    Interest on drawings 2,000 3,000
    Share of profit for the year 80,000 1,20,000
    Interest on capital 20,000 30,000
    Commission 17,000 Nil
    Salary Nil 38,000
  10. Durai and Velan entered into a partnership agreement on 1st April 2018, Durai contributing Rs.25,000 and Velan Rs. 30,000 as capital. The agreement provided that:
    (a) Profits and losses to be shared in the ratio 2:3 as between Durai and Velan.
    (b) Partners to be entitled to interest on capital @ 5% p.a.
    (c) Interest on drawings to be charged Durai: Rs.300 Velan: Rs.450
    (d) Durai to receive a salary of Rs.5,000 for the year, and
    (e) Velan to receive a commission of Rs.2,000
    During the year, the firm made a profit of Rs.20,000 before adjustment of interest, salary and commission. Prepare the Profit and loss appropriation account.

  11. Write up the capital and current accounts of the partners, Kannagi and vasugi from the following details.

    Particulars Kannagi Rs. Vasugi Rs.
    Capital on 1.4.2018 1,00,000 60,000
    Current Alc on 1.4.2018 3,000(Dr) 2,000(Cr)
    Drawing during 2018-19 8,000 5,000
    Interest on capital 5,000 3,000
    Interest in drawings 240 150
    Share of profit 2018-19 12,000 10,000
    Partner's salary 4,000 -
  12. Anusha and Barathi contribute Rs.2,00,000 and Rs.1,00,000 respectively as capital. Their respective share of profit is 3:2 and the profit before interest on capital for the year is Rs.27,000. Compute the amount of interest on capital in each of the following situations:
    (i) If the partnership deed is silent as to the interest on capital
    (ii) If interest on capital @ 3% is allowed as per the partnership deed
    (iii) If the partnership deed allows interest on capital @ 5% p.a.

  13. A partnership firm earned net profits during the last three years as follows:
    2016 : Rs.20,000; 2017 : Rs.17,000 and 2018 : Rs.23,000
    The capital investment of the firm throughout the above mentioned period has been Rs.80,000. Having regard to the risk involved, 15% is considered to be a fair return on capital employed
    in the business. Calculate the value of goodwill on the basis of 2 years purchase of super profit.

  14. 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

  15. A partnership firm has decided to value its goodwill for the purpose of setting a retiring Partner. The profit of that firm for the last four years were as follows:
    2015 : Rs.20,000; 2016 : Rs.25,000; 2017; Rs.24,000 and 2018: Rs.23,000
    The business was looked after by a partner. No remuneration was paid to him. The fair remuneration of the partner valued at comes to Rs. 3,000 per annum.
    Find out the value of goodwill, if it is valued on the basis of three years purchase of the average profit of the last four years.

  16. 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. 5,60,000

  17. Raghu and Sam are partners in a firm sharing profits and losses in the ratio of 3:2. Their balance sheet as on 31st March, 2017 is as follows:

    Liabilities Rs. Rs. Assets Rs. Rs.
    Capital accounts:     Machinery   30,000
    Raghu 40,000   Furniture   10,000
    Sam 30,000 70,000 Stock   10,000
    Sundry creditors   30,000 Debtors 21,000  
          Less: Provision for    
          doubtful debts 1,000 20,000
          Bank   30,000
        1,00,000     1,00,000

    Prakash is admitted on 1.4.2017 subject to the following conditions:
    (a) He has to bring a capital of Rs.10,000
    (b) Machinery is valued at Rs.24,000
    (c) Furniture to be depreciated by Rs.3,000
    (d) Provision for doubtful debts should be increased to Rs.3,000
    (e) Unrecorded trade receivables of  Rs.1,000 would be brought into books now
    Pass necessary journal entries and prepare revaluation account and capital account of partners after admission.

  18. Amal and Vimal are partners in a firm sharing profits and losses in the ratio of 7:5. Their balance sheet as on 31st March, 2019, is as follows:

    Liabilities Rs. Rs. Assets Rs.
    Capital accounts:     Land 80,000
    Amal 70,000   Furniture 20,000
    Vimal 50,000 1,20,000 Stock 25,000
    Sundry creditors   30,000 Debtors 30,000
    Profit and loss A/c   24,000 Bank 19,000
        1,74,000   1,74,000

    Nirmal is admitted as a new partner on 1.4.2018 by introducing a capital of Rs.30,000 for 1/3 share in the future profit subject to the following adjustments.
    (a) Stock to be depreciated by Rs.5,000
    (b) Provision for doubtful debts to be created for Rs.3,000
    (c) Land to be appreciated by Rs.20,000
    Prepare revaluation account and capital account of partners after admission.

  19. Eswari and Ranikumari are partners sharing profits and losses in the ratio of 7:5. They agree to admit Chitra into partnership. Eswari surrenders \(\frac{1}{7}\) th of her share and Ranikumari \(\frac{1}{5}\) th of her share in the favour of Chitrao Calculate the New profit ratio and the sacrificing ratio.

  20. Valluvan and Kamban were partners sharing profits and losses as 60% tovalluvan and 40% Kamban. Their balance sheet as at 1st January, 2019 stood as under:

    Liabilities Rs. Rs. Assets Rs. Rs.
    Sundry creditors   96,000 Cash in hand   4,000
    Bills payable   34,000 Sundry debtors   56,000
    Capital Accounts:     Stock   40,000
    Valluvan 90,000   Plant and machinery   80,000
    Kamban 80,000 1,70,000 Land and Buildings   1,20,000
        3,00,000     3,00,000

    The partners agreed to admit Elangovan into the firm subject to revaluation of the following items:
    (i) Stock was to be reduced by Rs. 4,000
    (ii) Land and Buildings were to be valued at Rs. 1,60,000
    (iii) A provision of 2\(\frac{1}{2}\)% was to be created for doubtful debtors.
    (iv) A liability of  Rs.2,600 for outstanding expenses had been omitted to be recorded in the books
    Prepare the Revaluation account, capital accounts and the Balance sheet after the above adjustment

  21. John, James and Raja are partners in a firm sharing profits and losses equally. Their balance sheet as on 31st March, 2019 is as follows:
    Raja retired on 31st March, 2019 subject to the following conditions:
    (i) Machinery is valued at Rs. 1,30,000
    (ii) Value of office equipment is brought down by Rs. 2,000
    (iii) Provision for doubtful debts should be increased to Rs. 3,000
    (iv) Investment of Rs. 25,000 not recorded in the books is to be recorded now
    Pass necessary journal entries and prepare revaluation account.

  22. Vijayan, Sudhan and Suman are partners who share profits and losses in their capital ratio. Their balance sheet as on 31.12.2018 is as follows

    Balance Sheet as on 31.12.2018

    Liabilities

    Rs. Rs. Asset Rs.
    Capital accounts:     Building 80,000
    Vijayan 70,000   Stock 45,000
    Sudhan 50,000   Debtors 25,000
    Suman 20,000 1,50,000 Cash at bank 20,000
    General reserve   18,000 Cash in hand 15,000
    creditors   17,000    
        1,85,000   1,85,000

    Suman died on 31.3.2019. On the death of Suman, the following adjustments are made:
    (i) Building is to be valued at Rs. 1,00,000
    (ii) Stock to be depreciated by Rs. 5,000
    (iii) Goodwill of the firm is valued at Rs. 36,000
    (iv) Share of profit from the closing of the last financial year to the date of death on the
    basis of the average of the three completed years’
    profit before death. Profit for 2016, 2017 and 2018 were Rs. 40,000, Rs. 50,000 and Rs. 30,000 respectively.
    Prepare the necessary ledger accounts and the balance sheet immediately after the death of Suman.

  23. Thangamuthu, Anaimuthu and Vairamuthu are partners sharing profit and loss in the ratio of 3:3:2.
    Thangamuthu wanted to retire on 1st June 2018, the firms books showed a general reserve of~40,000.
    Pass entry.

  24. Selvam, Saravanan and Santhosh were partners of a firm sharing profits and losses in the ratio of 3: 2 : 1. Set out below was their balance sheet as on 31't December 2018.

    Liabilities Rs. Rs. Assets Rs.
    Bills payable   15,000 Cash in hand 3,000
    Sundry creditors   25,000 Cash at bank 35,000
    Capital Accounts     Bill receivable 11,000
    Selvam 80,000   Book debts 18,000
    Sarvanan 50,000   Stock 36,000
    Santhosh 40,000 1,70,000 Furniture 7,000
    Profit and Loss A/c   30,000 Plant & Machinery 50,000
          Buildings 80,000
        2,40,000   2,40,000

    Selvam retired from the partnership on 1st January 2019 on the following terms:
    (i) Goodwill of the firm was to be valued at Rs. 30,000
    (ii) Assets are to be valued as under: stock Rs. 30,000 plant and machinery Rs. 40,000; Buildings Rs.1,00,000
    (iii) A provision for doubtful debts be created at Rs.1,000
    (iv) Rs.21,500 was to be paid to Selvam immediately and the balance was transferred to his loan account.
    Show revaluation account, capital accounts, bank account and the balance sheet of the
    reconstituted Partnership.

  25. Sara Company issues 10,000 equity shares of Rs.10 each payable fully on application. Pass journal entries if the shares are issued
    (i) at par
    (ii) at a premium of Rs.2 per share.

  26. Rajan Ltd. purchased machinery of Rs.6,00,000 from Jagan Traders. It issued equity shares of Rs.10 each fully paid in satisfaction of their claim. What entries will be made if such issue is made:
    (a) at par and
    (b) at a premium of 50%.

  27. Das Ltd. offered 50,000 equity shares of Rs.10 each to the public payable as follows: On application Rs.4; on allotment Rs.3; on first call Rs.1 and on second and final call Rs.2.
    Applications were received for 1,00,000 shares. All the applicants were allotted 1 share for every two shares applied. Excess application money was used for amount due on allotment and call. Pass necessary journal entries.

  28. Alpha Company issues 10,000 equity shares Rs.10 each payable fully on application.
    Pass journal entry if the shares are issued
    (i) at par
    (ii) at a premium of Rs.2 per share.

  29. From the following particulars, prepare comparative income statement of Arul Ltd.

    Particulars 2015-16
    Rs.
    2016-17
    Rs.
    Revenue from operations 50,000 60,000
    Other income 10,000 30,000
    Expenses 40,000 50,000
  30. From the following particulars, calculate the trend percentages of Kala Ltd.

    Particulars Rs.in thousands
      2015-16 2016-17 2017-18
    Revenue from operations 400 500 600
    Other income 100 150 200
    Expenses 200 290 350
  31. From the following particulars of Vijay Ltd, prepare common size income statement for the year ended 31st March 2017 and 31st March 2018

  32. From the following information, calculate trade percentages for Malar Ltd

    Particulars Rs. In lakhs
    2015-16 2016-17 2017-18
    Revenue from operations 100 120 160
    Other income 20 24 20
    Expenses 20 14 40
    Income tax 30% 30% 30%
  33. From the following Balance Sheet of Sundaram Ltd. calculate proprietary ratio:

    Balance Sheet of Sundaram Ltd. as on 31.3.2019
    Particulars Amount
    Rs.
    I. EQUITY AND LIABILITIES  
    1. Shareholders' funds  
    (a) Share capital  
    (i) Equity share capital 2,50,000
    (ii) Preference share capital 1,50,000
    (b) Reserves and surplus 50,000
    2. Non-current liabilities  
    Long-term borrowings -
    3. Current liabilities  
    Trade payables 1,50,000
    Total 6,00,000
    II ASSETS  
    1. Non-current assets  
    (a) Fixed assets 4,60,000
    (b) Non-current investments 1,00,000
    2. Current assets  
    Cash and Cash equivalents 40,000
    Total 6,00,000
  34. From the following information of Geetha Ltd., calculate fixed assets turnover ratio
    (i) Revenue from operations during the year were Rs. 55,00,000.
    (ii) Fixed assets at the end of the year Rs. 5,00,000.

  35. Following is the extract of the balance sheet of Hindustan Products Ltd., as on 31st March 2019.

    Particulars Rs.
    I. EQUITY AND LIABILITIES  
    1. Shareholders' funds  
    (a) Share capital 2,90,000
    (b) Reserves and surplus 60,000
    2. Non-current liabilities  
    Long term borrowings 40,000
    3. Current liabilities  
    (a) Trade payables 1,15,000
    (b) Other current liabilities 15,000
    Total 5,20,000
  36. Calculate quick ratio of Babu construction Ltd., from, the information given below

    Particulars Rs.
    Total current liabilities 2,00,000
    Total current assets 4,00,000
    Inventories 70,000
    Prepaid expenses 30,000
  37. Record the following transactions in Tally.
    (a) Devi commenced a business with a capital of Rs. 4,00,000
    (b) An account was opened with Indian Bank and deposited Rs. 60,000
    (c) Purchased furniture by paying cash Rs. 15,000
    (d) Goods purchased on credit from Sumathy for Rs. 50,000
    (e) Cash sales made for Rs. 10,000
    (f) Goods purchased from Raja for Rs. 5,000 and paid by cheque
    (g) Goods sold to Arun on credit for Rs. 70,000
    (h) Money withdrawn from bank for office use Rs. 25,000
    (i) Part payment of Rs. 30,000 made to Sumathy by cheque
    (j) Arun made part payment of Rs. 10,000 by cash
    (k) Salaries paid to staff through ECS Rs. 36,000
    (l) Carriage on purchases of Rs. 6,000 paid by cash
    (m) Purchased computer from Muthu Ltd. on credit Rs. 44,000

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

    Liabilities Rs. Assets Rs.
    Capital 1,60,000 Buildings 40,000
    Sundry creditors:   Furniture 20,000
    Maya A/c 20,000 Stock 10,000
        Sundry debtors  
        Peter 20,000
        Cash in hand 30,000
        Cash at bank 60,000
      1,80,000   1,80,000

    During the year the following transactions took place.
    (a) Wages paid by cash Rs. 4,000
    (b) Salaries paid by cheque Rs. 10,000
    (c) Cash purchases made for Rs. 4,000
    (d) Good purchased on credit from Yazhini Rs. 30,000
    (e) Goods sold on credit to Jothi Rs. 40,000
    (f) Payment made to Yazhini through NEFT Rs. 6,000
    (g) Cash received from Peter Rs. 10,000
    (h) Cash sales made for Rs. 4,000
    (i) Depreciate buildings at 20%
    (j) Closing stock on 31.03.2019 Rs. 9,000
    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.

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