New ! Accountancy MCQ Practise Tests

All Chapter 2 Marks

12th Standard

    Reg.No. :


Time : 01:30:00 Hrs
Total Marks : 80
    Answer All The Following Question:
    40 x 2 = 80
  1. From the following details, calculate credit purchases

    Particulars Rs
    Creditors on 1st April, 2018 50,000
    Returns outward 6,000
    Cash paid to creditors 1,60,000
    Creditors on 31st March, 2019 70,000
  2. From the following details, calculate credit purchases

    Particulars Rs.
    Opening creditors 1,70,000
    Purchase returns 20,000
    Cash paid to creditors 4,50,000
    Closing creditors 1,90,000
  3. Under single entry system is it possible to check the arithmetical accuracy of books of accounts?

  4. What are the possible reasons for keeping incomplete records?

  5. How will the following appear in the final accounts of a club for the year 2017 –2018?

    Particulars Rs.
    Prize fund on 1.4.2017 60,000
    Prize fund investment on 1.4.2017 60,000
    Interest received on prize fund investment 6,000
    Prizes distributed 8,000
    Donation received for prize fund 12,000
  6. State the meaning of not–for–profit organisation

  7. Can the balance in receipts and payments account be treated as income of the period? If it shows credit balance  what does it mean?

  8. Every receipt and Payments, whether capital or revenue and irrespective of the period is recorded in receipts and payments accounts why? Give reason.

  9. Priya and Kavitha are partners. Priya draws Rs.4,000 at the end of each quarter. Interest on drawings is chargeable at 6% p.a. Calculate interest on drawings for the year ending 31st December 2018 using average period.

  10. Mani is a partner, who withdrew Rs.30,000 on 1st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31st December, 2018 and show the journal entries by assuming that fluctuating capital method is followed.

  11. Suresh and Ramesh are partners in a firm with capitals of Rs.3,00,000 and Rs.4,00,000 respectively. The do not have a partnership deed. Ramesh wants to share the profits in the ratio of capitals. State with reason whether the claim is valid

  12. Salary or comrmssion paid to a partner is debited to profit and loss appropriation account and not to profit and loss account. Why?

  13. From the following information, calculate the value of goodwill on the basis of 3 years purchase of average profits of last four years.

    Year Result Amount
    2015 Profit 5,000
    2016 Profit 8,000
    2017 Loss 3,000
    2018 Profit 6,000
  14. State any two circumstances under which goodwill of a partnership firm is valued.

  15. How does the factor's 'quality of product' affect the goodwill of a firm?

  16. How does the 'market situation' affect the value of goodwill of a firm?

  17. Hari and Saleem are partners sharing profits and losses in the ratio of 5:3. They admit Joel for 1/8 share, which he acquires entirely from Hari. Find out the new profit sharing ratio and sacrificing ratio.

  18. State whether the following will be debited or credited in the revaluation account.
    (a) Depreciation on assets
    (b) Unrecorded liability
    (c) Provision for outstanding expenses
    (d) Appreciation of assets

  19. What is meant by admission of a partner?

  20. The value of Plant and machinery increased by 10%. State whether revaluation account will be debited or credited.

  21. Arya, Benin and Charles are partners sharing profits and losses in the ratio of 3:3:2. Charles
    retires and his share is taken up by Arya. Calculate the new profit sharing ratio and gaining
    ratio of Arya and Benin

  22. Rosi, Rathi and Rani are partners of a firm sharing profits and losses equally. Rathi retired from the partnership on 1.1.2018. On that date, their balance sheet showed accumulated loss of Rs. 45,000 on the asset side of the balance sheet. Give the journal entry to distribute the accumulated loss.

  23. What is New profit sharing ratio?

  24. Who is an outgoing partner?

  25. Bharath Ltd. issued 1,00,000 equity shares of  Rs. 10 each to the public at par. The details of the
    amount payable on the shares are as follows:

    On application Rs.5 per share
    On allotment Rs.3 per share
    On first and final call Rs.2 per share

    Application money was received for 1,20,000 shares. Excess application money was refunded immediately. Pass journal entries to record the above.

  26. Jeyam Tyres issued 15,000 ordinary shares of  Rs.10 each payable as follows:
    Rs.3 on application; Rs.5 on allotment; Rs.2 on first and final call. All money were duly received except one shareholder holding 100 shares failed to pay the call money. Pass the necessary journal entries for call (using calls in arrear account).

  27. What is allotment?

  28. What are the differences between over subscription and under subscription?

  29. From the following balance sheet of Chandra Ltd, prepare comparative balance sheet as on
    31st March 2016 and 31st March 2017.

    Particulars 31st March 2016 31st March 2017
      Rs. Rs.
    Shareholders’ fund 1,00,000 2,60,000
    Non-current liabilities 50,000 60,000
    Current liabilities 25,000 30,000
    Total 1,75,000 3,50,000
    II ASSETS 1,00,000 2,00,000
    Current assets 75,000 1,50,000
    Total 1,75,000 3,50,000
  30. What is working capital?

  31. What is trend analysis?

  32. What is funds flow analysis?

  33. What is quick ratio?

  34. What does return on investment ratio indicate?

  35. Why should the inventory turnover ratio be more important when analysing a grocery store than an insurance company?

  36. The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they become due. Comments.

  37. What is automated accounting system?

  38. What are accounting reports?

  39. What is computerised accounting system?

  40. A chemist as per the requirement of law makes use of computer for recording the stock of all the medicines including their manufacturing and expiry dates. What benefits he will get from computerised records also tell the values indicated in the question.


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