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#### 12th All Chapter 1 mark Impatant Question

12th Standard EM

Reg.No. :
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Accountancy

Time : 01:00:00 Hrs
Total Marks : 40
40 x 1 = 40
1. Incomplete records are generally maintained by

(a)

A company

(b)

Government

(c)

(d)

Multinational enterprises

2. When capital in the beginning is Rs 10,000, drawings during the year is Rs.6,000, profit
made during the year is Rs2,000 and the additional capital introduced is  3,000, find out
the amount of capital at the end

(a)

9,000

(b)

11,000

(c)

21,000

(d)

3,000

3. Balance sheet is prepared under

(a)

Single entry system

(b)

Double entry system

(c)

Both (a) & (b)

(d)

None of these

4. ______________ is not based on dual aspect concept

(a)

Single entry system

(b)

Double entry system

(c)

Balance Sheet

(d)

Statement of Affairs

5. Receipts and payments account records receipts and payments of

(a)

Revenue nature only

(b)

Capital nature only

(c)

Both revenue and capital nature

(d)

None of the above

6. Income and expenditure account is a

(a)

Nominal A/c

(b)

Real A/c

(c)

Personal A/c

(d)

Representative personal account

7. Which of the following is generally considered as a non profit organisation?

(a)

Charitable organisation

(b)

Corporation

(c)

Audit firms

(d)

Insurance companies

8. _______is prepared to find out the surplus or deficit pertaining to a particular year.

(a)

Income and Expenditure account

(b)

Receipts and Payment account

(c)

Trading and Profit and loss account

(d)

Balance sheet

9. In the absence of an agreement, partners are entitled to

(a)

Salary

(b)

Commission

(c)

Interest on loan

(d)

Interest on capital

10. Profit after interest on drawings, interest on capital and remuneration is Rs.10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission.

(a)

Rs.50

(b)

Rs.150

(c)

Rs.550

(d)

Rs.500

11. ___________ intervals refers to withdrawal made monthly, quarterly, half-yearly, once in 2 months and once in 4 months.

(a)

Fixed time

(b)

Current time

(c)

Average time

(d)

None of these

12. The debit balance of the current account, will be shown in the ____________ side of the balance sheet.

(a)

liabilities

(b)

assets

(c)

debit

(d)

credits

13. Super profit is the difference between

(a)

Capital employed and average profit

(b)

Assets and liabilities

(c)

Average profit and normal profit

(d)

Current year’s profit and average profit

14. The total capitalised value of a business is Rs.1,00,000; assets are Rs.1,50,000 and liabilities are Rs.80,000. The value of goodwill as per the capitalisation method will be

(a)

Rs.40,000

(b)

Rs.70,000

(c)

Rs.1,00,000

(d)

Rs.30,000

15. Rate of interest is 11% and the rate of risk is 9% The normal rate of return is

(a)

11%

(b)

9%

(c)

20%

(d)

2%

16. Net asset value method is based on the assumption that the company is__________.

(a)

a going concern

(b)

going to be liquidated

(c)

both 'a' and 'b'

(d)

none of the above

17. Which of the following statements is not true in relation to admission of a part

(a)

Generally mutual rights of the partners change

(b)

The profits and losses of the previous years are distributed to the old partners

(c)

The firm is reconstituted under a new agreement

(d)

The existing agreement does not come to an end

18. James and Kamal are sharing profits and losses in the ratio of 5:3. They admit Sunil as a partner giving him 1/5 share of profits. Find out the sacrificing ratio.

(a)

1:3

(b)

3:1

(c)

5:3

(d)

3:5

19. When the value of an asset increases, it results in

(a)

profit

(b)

loss

(c)

income

(d)

expense

20. List I List II
i) Revaluation
account
1. Credit side
ii) Unrecorded
assets
2. Debit side
iii) Unrecorded
liability
3. Revaluation
account
iv) Memorandum
revaluation
account
4. Nominal account
(a)
 (i) (ii) (iii) (iv) 4 3 1 2
(b)
 (i) (ii) (iii) (iv) 1 2 3 4
(c)
 (i) (ii) (iii) (iv) 2 3 4 1
(d)
 (i) (ii) (iii) (iv) 4 1 2 3
21. A partner retires from the partnership firm on 30th June. He is liable for all the acts of the firm up to the

(a)

End of the current accounting period

(b)

End of the previous accounting period

(c)

Date of his retirement

(d)

Date of his final settlement

22. 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

23. At the time to retirement Balance Sheet items like profit and loss account and General reserve must be transferred to

(a)

Revaluation Alc

(b)

Partners capital A/c

(c)

Both 'a and 'b'

(d)

None of the above

24. _________maybe taken on the life of the partners in a partnership firm

(a)

Life policies

(b)

(c)

Both 'a and 'b'

(d)

None of these

25. A preference share is one
(i) which carries preferential right with respect to payment of dividend at fixed rate
(ii) which carries preferential right with respect to repayment of capital on winding up

(a)

Only (i) is correct

(b)

Only (ii) is correct

(c)

Both (i) and (ii) are correct

(d)

Both (i) and (ii) are incorrect

26. Which of the following statement is false?

(a)

Issued capital can never be more than the authorised capital

(b)

In case of under subscription, issued capital will be less than the subscribed capital

(c)

Reserve capital can be called at the time of winding up

(d)

Paid up capital is part of called up capital

27. _____ is the maximum amount which be raised as capital.

(a)

Subscribed capital

(b)

Called up capital

(c)

Paid up capital

(d)

Authorised capital

28. The amount of one call should not be more than _____ of the face value of the share.

(a)

25%

(b)

50%

(c)

75%

(d)

100%

29. Which of the following statements is not true?

(a)

All the limitations of financial statements are applicable to financial statement analysis also.

(b)

Financial statement analysis is only the means and not an end.

(c)

Expert knowledge is not required in analysing the financial statements

(d)

Interpretation of the analysed data involves personal judgement

30. Expenses for a business for the first year were  80,000. In the second year, it was
increased to Rs. 88,000. What is the trend percentage in the second year?

(a)

10 %

(b)

110 %

(c)

90 %

(d)

11%

31. Interpretation of accounts is the

(a)

art and science of translating the figures

(b)

to know financial strengths and weakness of a business

(c)

to know the causes for the prevailing performance of business

(d)

all of the above

32. __________ concerns prepare income statement and balance sheet at the of an accounting period.

(a)

(b)

Industry

(c)

(d)

None of these

33. Debt equity ratio is a measure of

(a)

Short term solvency

(b)

Long term solvency

(c)

Profitability

(d)

Efficiency

34. Cost of revenue from operations Rs. 3,00,000; Inventory in the beginning of the year Rs. 60,000; Inventory at the close of the year Rs. 40,000. Inventory turnover ratio is

(a)

2 times

(b)

3 times

(c)

6 times

(d)

8 times

35. _______ ratio is an indicator of the overall profitability of the business.

(a)

Gross profit

(b)

Net profit

(c)

Operating cost

(d)

Operating profit

36. Solvency ratios are expressed in terms of ________________

(a)

Proportion

(b)

Times

(c)

Percentage

(d)

None of these

37. What are the predefined Ledger(s) in Tally?
(i) Cash
(ii) Profit & Loss A/c
(iii) Capital A/c

(a)

Only (i)

(b)

Only (ii)

(c)

Both (i) and (ii)

(d)

Both (ii) and (iii)

38. Contra voucher is used for

(a)

Master entry

(b)

Withdrawal of cash from bank for office use

(c)

Reports

(d)

Credit purchase of assets

39. Branch/Division is a group defined under

(a)

Assets

(b)

Income

(c)

Liabilities

(d)

Expenditure

40. Which is the short cut key used for closing Tally?

(a)

Ctrl + F1

(b)

Ctrl + Shift + F4

(c)

Ctrl + X

(d)

Ctrl + Q