New ! Accountancy MCQ Practise Tests

All Chapter 3 Marks

12th Standard

    Reg.No. :


Time : 01:30:00 Hrs
Total Marks : 102
    Answer All The Following Question:
    34 x 3 = 102
  1. David does not keep proper books of accounts. Following details are given from his records

    Particulars 1.4.2018
    Cash 43,000 29,000
    Stock of goods 1,20,000 1,30,000
    Sundry debtors 84,000 1,10,000
    Sundry creditors 1,05,000 1,02,000
    Loan 25,000 20,000
    Business premises 2,50,000 2,50,000
    Furniture 33,000 45,000

    During the year he introduced further capital of Rs. 45,000 and withdrew Rs. 2,500 per month from the business for his personal use. Prepare statement of profit or loss with the above information.

  2. From the following particulars, calculate total sales.

    Particulars Rs
    Debtors on 1st April 2017 1,50,000
    Bills receivable on 1st April 2017 40,000
    Cash received from debtors 3,90,000
    Cash received for bills receivable 90,000
    Bills receivable dishonoured 10,000
    Sales return 40,000
    Bills receivable on 31st March, 2018 30,000
    Sundry debtors on 31st March, 2018 1,30,000
    Cash sales 2,00,000
    Dr. Bills receivable account Cr.
    Particulars Rs Particulars Rs
    To Balance b/d 40,000 By Cash A/c 90,000
    To Debtors A/c* 90,000 By Debtors A/c 10,000
    (Bills received during the year –
    balancing figure)
      (Bills receivable dishonoured)  
        By Balance c/d 30,000
      1,30,000   1,30,000


    Dr. Total debtors account Cr.
    Particulars Rs Particulars Rs
    To Balance b/d 1,50,000 By Cash A/c 3,90,000
    To Bills receivable A/c (dishonoured) 10,000 By Sales returns A/c 40,000
    To Sales A/c (credit) 4,90,000 By Bills receivable A/c*  
    (balancing figure)   (bills received)  
        By Balance c/d 1,30,000
      6,50,000   6,50,000

    Total Sales = Cash Sales + Credit Sales = Rs. 2,00,000 +Rs. 4,90,000 = Rs. 6,90,000.

  3. Radhika started a small bakery for providing healthy and good quality bakery product at reasonable prices on 1st January, 2019 with a capital of Rs.1,80,000. She appointed a ten year old boy as a sweeper. She withdrew Rs.60,000 for household expenses. She introduced Rs.20,000as fresh capital. Her position of assets and liabilities as at 31st December, 2019 stood as follows.

    Cash in hand 70,000
    Stock 80,000
    Bills receivable 1,00,000
    Debtors 1,50,000
    Creditors 60,000
    Bills payable 10,000
  4. Which values are affected, when accounts are maintained on single entry system basis.

  5. How the following items are dealt with in the final accounts of not–for–profit organisation?
    a) Sale of sports materials
    b) Life membership fees
    c) Tournament fund

  6. How the following items will appear in the final accounts of a club for the year ending 31st March 2019?

    Dr. Receipts and Payments Account for the year ended 31st March, 2019 Cr.
    Receipts Rs. Rs. Payments Rs.
    To Subscription        
    2017-2018 10,000      
    2018-2019 50,000      
    2019-2020 5,000 65,000    

    There are 200 members in the club each paying an annual subscription of Rs.400 per annum. Subscription still outstanding for the year 2017- 2018 is Rs.2,000.

  7. Yuvan foundation is formed to educate and to provide jobs to unemployed women. Identify the values involved.

  8. Youth of India sports club decided to donate ~ 50,000 and spread awareness among the people of nearby societies about cleanliness in the country under the programme "Bharat Abhiyan". Identify the values highlighted.

  9. A and B contribute Rs.4,00,000 and Rs.2,00,000 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.

  10. Arulappan and Nallasamy are partners in a firm sharing profits and losses in the ratio of 4:1. On 1st January 2018, their capitals were Rs.20,000 and Rs.10,000 respectively. The partnership deed specifies the following:
    (a) Interest on capital is to be allowed at 5% per annum.
    (b) Interest on drawings charged to Arulappan and Nallasamy are Rs.200 and Rs.300 respectively.
    (c) The net profit of the firm before considering interest on capital and interest on drawings
    amounted to Rs.18,000.
    Give necessary journal entries and prepare Profit and loss appropriation account for the year ending 31st December 2018. Assume that the capitals are fluctuating.

  11. What is Fluctuating capital method?

  12. 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.

  13. The following particulars are available in respect of the business carried on by a partnership firm:
    (i) Profits earned: 2016: Rs.25,000; 2017: Rs.23,000 and 2018: Rs.26,000.
    (ii) Profit of 2016 includes a non-recurring income of Rs.2,500.
    (iii) Profit of 2017 is reduced by Rs.3,500 due to stock destroyed by fire.
    (iv) The stock was not insured. But, it is decided to insure the stock in future. The insurance premium is estimated to be Rs.250 per annum.
    You are required to calculate the value of goodwill of the firm on the basis of 2 years purchase of average profits of the last three years.

  14. How is the value of goodwill calculated under the capitalisation method?

  15. What is the need for valuation of goodwill?

  16. Explain the classification of goodwill.

  17. Arun, Babu and Charles are partners sharing profits and losses equally. They admit Durai into partnership for 1/4 share in future profits. The goodwill of the firm is valued at Rs.36,000 and Durai brought cash for his share of goodwill. The existing partners withdraw half of the amount of their share of goodwill. Pass necessary journal entries on the assumption that the fluctuating capital method is followed.

  18. Seenu and Siva are partners sharing profits and losses in the ratio of 5:3. In the view of Kowsalya admission, they decided
    (a) To increase the value of building by Rs.40,000.
    (b) To bring into record investments at Rs.10,000, which have not so far been brought intoaccount.
    (c) To decrease the value of machinery by Rs.14,000 and furniture by Rs.12,000.
    (d) To write off sundry creditors by Rs.16,000.
    Pass journal entries and prepare revaluation account

  19. Roja, Neela and Kanaga are partners sharing profits and losses in the ratio of 4:3:3. On 1st April 2017, Roja retires and on retirement, the following adjustments are agreed upon.
    (i) Increase the value of building by Rs. 30,000.
    (ii) Depreciate stock by Rs. 5,000 and furniture by Rs. 12,000.
    (iii) Provide an outstanding liability of Rs. 1,000
    Pass journal entries and prepare revaluation account.

  20. Balu, Chandru and Nirmal are partners in a firm sharing profits and losses in the ratio of 5:3:2. On 31st March 2018, Nirmal retires from the firm. On the date of Nirmal’s retirement, goodwill appeared in the books of the firm at Rs. 60,000. By assuming fluctuating capital account, pass the necessary journal entry if the partners decide to
    (a) write off the entire amount of existing goodwill
    (b) write off half of the existing goodwill

  21. Maruthu Ltd. forfeited 150 equity shares of  Rs.10 each for non payment of final call of Rs.4 per share. Of these 100 shares were reissued @ Rs.9 per share. Pass journal entries for forfeiture and reissue.

  22. What is reissue of forfeited shares?

  23. What are the characteristics of a company?

  24. Write a short note on
    (i) Rights issue
    (ii) Bonus issue

  25. From the following particulars of Kumar Ltd, prepare a common-size income statement for
    the year ended 31st March, 2018.

    Particulars 2017-18
    Revenue from operations 5,00,000
    Other income 20,000
    Expenses 3,00,000
  26. Briefly explain any three limitations of financial statements

  27. What are the significance of financial statements?

  28. What are the objectives of financial statement analysis?

  29. The credit revenue from operations of Harini Ltd. amounted to Rs.9,60,000. Its debtors and bills receivable at the end of the accounting period amounted to Rs.1,00,000 and Rs.60,000 respectively. Calculate trade receivable turnover ratio and also collection period in months.

  30. From the following figures obtained from Kalpana Ltd, calculate the trade payables turnover ratio and credit payment period (in days).

    Particulars Rs.
    Credit purchases during 2018 – 2019 1,00,000
    Trade creditors as on 1.4.2018 20,000
    Trade creditors as on 31.3.2019 10,000
    Bills payable as on 1.4.2018 4,000
    Bills payable as on 31.3.2019 6,000
  31. What is functional classifications of rational analysis? and types of functional classification.

  32. What is Credit payment period?

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

  34. Explain any five applications of computerised accounting system.


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