Class XII-Accounts SHHY

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TERM 1 FULL LENGTH PAPER

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I. Issue of Shares - 1. Pro-rate allotment of shares is made when there is : *

1 point

Under subscription

Oversubscription

Equal subscription

As and when desired by directors

Issue of Shares - 2. Authorised Capital of a Company is mentioned in : *

1 point

Memorandum of Association

Articles of Association

Prospectus

Statement in lieu of Prospectus

Other:

Issue of Shares - 3. X Ltd. forfeited 400 shares of Rs. 20 each Rs. 15 called up on which application and allotment money of Rs. 11 per share has been received. Of these, 100 shares were re-issued as fully paid-up for Rs. 24 per share. What is the amount to be transferred to Capital Reserve? *

1 point

Rs. 1,500

Rs. 4,400

Rs. 1,100

Rs. 3,500

Other:

Issue of Shares - 4. On issue of shares Premium is : *

1 point

Profit

Income

Revenue Receipt

Capital Profit

Other:

Issue of Shares - 5. At the time of forfeiture of shares the share capital account is debited with *

1 point

Face value

Called up value

Paid up value

Issued value

Other:

Issue of Shares - 6. If the Premium on the forfeited shares has already been received, then Securities Premium A/c should be : *

1 point

Credited

Debited

No treatment

None of these

Other:

Issue of Shares - 7. On 300 equity shares of Rs. 10 the company has called up Rs. 8 but Rs. 6 have been received by the company are forfeited, the forfeiture account should be credited by *

1 point

Rs. 2,400

Rs. 1,200

Rs. 1,800

Rs. 600

Other:

Issue of Shares - 8. Discount allowed on re-issue of forfeited shares is debited to : *

1 point

Share Capital A/c

Share forfeiture A/c

Statement of Profit & Loss

General Reserve A/c

Other:

Issue of Shares - 9. Balance of share forfeiture account is shown in the balance sheet under the head *

1 point

Share Capital Account

Reserve and Surplus

Current Liabilities and Provisions

Unsecured Loans

Other:

Issue of Shares - 10. If shares of Rs. 4,00,000 are issued for purchase of assets of Rs. 5,00,000, Rs. 1,00,000 will be treated as ……………………. : *

1 point

Discount

Premium

Profit

Loss

Other:

Issue of Shares - 11. Authorised capital of a Company is divided into 5,00,000 shares of Rs. 10 each. It issued 3,00,000 shares. Public applied for 3,60,000 shares. Amount of issued capital will be : *

1 point

Rs. 30,00,000

Rs. 36,00,000

Rs. 50,00,000

Rs. 6,00,000

Other:

Issue of Shares - 12. The subscribed capital of a company is Rs. 80,00,000 and the nominal value of the share is Rs. 100 each. There were no calls in arrear till the final call was made. The final call made was paid on, 77,500 shares only. The balance in the calls in arrear amounted to Rs. 62,500. Calculate the final call on share. *

1 point

Rs. 7

Rs. 20

Rs. 22

Rs. 25

Other:

Issue of Shares - 13. A Company offered 25,000 shares of Rs. 10 each at par payable as to Rs. 3 on applications, Rs. 5 on allotment and the balance on final call. Applications were received for 30,000 shares and the allotment was made pro-rata. The excess application money was to be adjusted on allotment and call. How much amount will be transferred from Share Application A/c to Share Allotment A/c? *

1 point

Rs. 90,000

Rs. 15,000

Rs. 75,000

Rs. 25,000

Other:

Issue of Shares - 14. Share Application Account is in the nature of: *

1 point

Real Account

Personal Account

Nominal Account

None of the above

Other:

Issue of Shares - 15. Shareholders receive from the company: *

1 point

Interest

Commission

Profit

Dividend

Other:

Fundamentals of Partnership - 16. Forming a Partnership Deed is : *

1 point

Mandatory

Mandatory in Writing

Not Mandatory

None of the Above

Other:

Fundamentals of Partnership - 17. In the absence of partnership deed, partners share profits or losses : *

1 point

In the ratio of their Capitals

In the ratio decided by the court

Equally

In the ratio of time devoted

Fundamentals of Partnership - 18. A and B are partners with a profit-sharing ratio of 2 : 1 and capitals of Rs. 6,00,000 and Rs. 4,00,000 respectively. They are allowed 6% p.a. interest on their capitals and are charged 10% p.a. interest on their drawings. Their drawings during the year were A Rs. 1,20,000 and B Rs. 80,000. B’s share of net profit as per profit and loss appropriation account amounted to Rs. 80,000. Net Profit of the firm before any appropriations was : *

1 point

Rs. 2,44,000

Rs. 2,26,000

Rs. 2,34,000

Rs. 2,90,000

Fundamentals of Partnership - 19. X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was dispute between the partners. Profit before interest on partner’s capital was Rs. 3,000 and Y determined interest @24% p.a. on his loan of Rs. 40,000. There was no agreement on this point. Calculate the amount payable to X, Y, and Z respectively. *

1 point

Rs. 1,000 to each partner.

Loss of Rs. 2,200 for X and Z; will take Rs. 7,400.

Rs. 200 for A, Rs. 2,600 for Y and Rs. 200 for Z.

None of the above.

Fundamentals of Partnership - 20. Y and Z are partners in partnership firm without any agreement. Y has given a loan of Rs. 1,50,000 to the firm. At the end of year loss was incurred in the business. Following interest may be paid to by the firm : *

1 point

@5% Per Annum

@ 6% Per Annum

@ 6% Per Month

As there is a loss in the business, interest can’t be paid

Fundamentals of Partnership - 21. In the absence of Partnership Deed : *

1 point

Interest will not be charged on partner’s drawings

Interest will be charged @. 5% p.a. on partner’s drawings

Interest will be charged @ 6% p.a. on partner’s drawings

Interest will be charged @ 12% p.a. on partner’s drawings

Fundamentals of Partnership - 22. In case of partnership the act of any partner is : *

1 point

Binding on all partners

Binding on that partner only

Binding on all partners except that particular partner

None of the above

Fundamentals of Partnership - 23. Interest on partner’s capitals will be debited to : *

1 point

Profit and Loss Account

Profit and Loss Appropriation Account

Partner’s Capital Accounts

None of the Above

Fundamentals of Partnership - 24. X, Y, and Z are partners in the ratio of 4 : 3 : 2. Salary to X Rs. 30,000 and to Z Rs. 6,000 omitted and profits distributed. For rectification, now X will be credited : *

1 point

Rs. 30,000

Rs. 2,000

Rs. 24,000

Rs. 14,000

Fundamentals of Partnership - 25. For the firm interest on capital is : *

1 point

Capital Payment

Capital Receipt

Loss

Income

Fundamentals of Partnership - 26. X and Y are partners in the ratio of 3 : 2. Their capitals are Rs. 4,00,000 and Rs.2,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of Rs. 30,000 for the year ended 31st March 2019. Interest on Capital will be : *

1 point

X Rs. 32,000; Y Rs.16,000

X Rs. 18,000; Y Rs. 12,000

X Rs. 20,000; Y Rs. 10,000

No Interest will be allowed

Fundamentals of Partnership - 27. If any loan or advance is provided by partner then, balance of such Loan Account should be transferred to : *

1 point

Balance Sheet’s Assets side

Balance Sheet’s Liability Side

Partner’s Capital A/c

Partner’s Current A/c

Fundamentals of Partnership - 28. Net profit of a firm is Rs. 55,000. Manager is entitled to a commission of 10% on profits before charging his commission. Manager’s Commission will be : *

1 point

Rs. 5500

Rs. 5000

Rs. 500

Rs. 550

Fundamentals of Partnership - 29. In the absence of Partnership Deed, the interest is allowed on partner’s capital: *

1 point

@ 5% p.a.

@ 6% p.a.

@ 12% p.a.

No interest is allowed

Fundamentals of Partnership - 30. A and B are partners. According to Profit and Loss Account, the net profit for the year is Rs. 4,00,000. The total interest on partner’s drawings is Rs. 2,000. A’s salary is Rs. 80,000 per year and B’s salary is Rs. 6,000 per month. The net profit as per Profit and Loss Appropriation Account will be : *

1 point

Rs. 2,46,000

Rs. 2,50,000

Rs. 3,12,000

Rs. 3,16,000

Fundamentals of Partnership - 31. Balance sheet of a company is required to be prepared in the format given in ……………………… *

1 point

Schedule III Part II

Schedule III Part I

Schedule III Part III

Table A

Fundamentals of Partnership - 32. Which of the following items is shown under the head ‘Non-Current Assets’ while preparing the Balance Sheet of a company? *

1 point

Underwriting Commission

Current Investment

Inventory

Patents

Fundamentals of Partnership - 33. While preparing the Balance Sheet of a company ‘Securities Premium’ is shown under : *

1 point

Current Liability

Share Capital

Long-term Borrowings

None of the above

Fundamentals of Partnership - 34. While preparing the Balance Sheet of a company ‘Underwriting Commission’ is shown under which head? *

1 point

Unamortized Expenditure

Current Assets

Non-Current Assets

Current Liability

Fundamentals of Partnership - 35. Which of the following items is shown under the head ‘Current Assets’ while preparing the Balance Sheet of a company? *

1 point

Trade Investment

Underwriting Commission

Inventories

Livestock

Fundamentals of Partnership - 36. ‘Accumulated Dividend Arrears’ on preference shares is shown in the Company’s Balance Sheet as : *

1 point

Current Liability

Contingent Liability

Commitments

Short-term Provision

Fundamentals of Partnership - 37. 6% Debentures appear in a Company’s Balance Sheet under the Sub-head …………………. *

1 point

Long-term Provisions

Long-term Borrowings

Other Current Liabilities

Other Long-term Liabilities

Fundamentals of Partnership - 38. Interest accrued but not due on loans appear in a Company’s Balance Sheet under the Sub-head ……………… *

1 point

Short-term Borrowings

Trade Payables

Other Current Liabilities

Short-term Provisions

Fundamentals of Partnership - 39. ‘Claims against the Company not acknowledged as debts’ is shown under the head ………………. *

1 point

Current Liabilities

Non-Current Liabilities

Commitments

Contingent Liabilities

Fundamentals of Partnership - 40. Bills Receivables appear in a Company’s Balance Sheet under the Sub-head *

1 point

Current Investments

Cash Equivalents

Trade Receivables

Short term Loans and Advances

Fundamentals of Partnership - 41. Goodwill appears in a Company’s Balance Sheet under the Sub-head *

1 point

Unamortized Assets

Non-Current Investment

Intangible Assets

Tangible Assets

Fundamentals of Partnership - 42. In a Company’s Balance Sheet …………………. appear under the head ‘non-current assets’. *

1 point

Goodwill

Patents

Vehicles

All of the above

Ratios - 43. Current Ratio is : *

1 point

Solvency Ratio

Liquidity Ratio

Activity Ratio

Profitability Ratio

Ratios - 44. Ideal Current Ratio is : *

1 point

1 : 1

1 : 2

1 : 3

2 : 1

Ratios - 45. Current assets include only those assets which are expected to be realized within …………………….. *

1 point

3 months

6 months

1 year

2 years

Ratios - 46. Quick Ratio is also known as : *

1 point

Liquid Ratio

Current Ratio

Working Capital Ratio

None of the Above

Ratios - 47. Cash Balance Rs. 15,000; Trade Receivables Rs. 35,000; Inventory Rs. 40,000; Trade Payables Rs. 24,000 and Bank Overdraft is Rs. 6,000. Current Ratio willbe : *

1 point

3.75 : 1

3 : 1

1 : 3

1 : 3.75

Ratios - 48. Cash Balance Rs. 5,000; Trade Payables Rs. 40,000; Inventory Rs. 50,000; Trade Receivables Rs. 65,000 and Prepaid Expenses are Rs. 10,000. Liquid Ratio will be *

1 point

1.75 : 1

2 : 1

3.25 : 1

3 : 1

Ratios - 49. Which of the following transactions will improve the quick ratio? *

1 point

Sale of goods for cash

Sale of goods on credit

Issue of new shares for cash

All of the Above

Ratios - 50. The ………….. ratios provide the information critical to the long run operation of the firm. *

1 point

Liquidity

Activity

Solvency

Profitability

Ratios - 51. Proprietary Ratio indicates the relationship between Proprietor’s Funds and. *

1 point

Long-Term Debts

Short Term & Long Term Debts

Total Assets

Debentures

Ratios - 52. Equity Share Capital Rs. 20,00,000; Reserve Rs. 5,00,000; Debentures Rs. 10,00,000; Current Liabilities Rs. 8,00,000. Debt-equity ratio will be : *

1 point

0.4 ; 1

0.32 : 1

0.72 : 1

0.5 : 1

Ratios - 53. Opening Inventory Rs. 1,00,000; Closing Inventory Rs. 1,50,000; Purchases Rs. 6,00,000; Carriage Rs. 25,000; Wages Rs. 2,00,000. Inventory Turnover Ratio will be *

1 point

6.6 Times

7.4 Times

7 Times

6.2 Times

Ratios - 54. Credit revenue from operations Rs. 24,00,000; Trade Receivables Turnover Ratio 6 times; Opening Debtors Rs. 3,20,000. Closing Debtors will be : *

1 point

Rs. 4,00,000

Rs. 4,80,000

Rs. 80,000

Rs. 7,20,000

Ratios - 55. What will be the amount of Gross Profit, if revenue from operations are Rs. 6,00,000 and Gross Profit Ratio 20% of revenue from operations? *

1 point

Rs. 1,50,000

Rs. 1,00,000

Rs. 1,20,000

Rs. 5,00,000

Ratios - 56. Revenue from Operations Rs. 6,00,000; Gross Profit 20%; Office Expenses Rs. 30,000; Selling Expenses Rs. 48,000. Calculate operating ratio *

1 point

80%

85%

96.33%

93%

Ratios - 57. Cost of Revenue from Operations = *

1 point

Revenue from Operations – Net Profit

Revenue from Operations – Gross Profit

Revenue from Operations – Closing Inventory

Purchases – Closing Inventory

Ratios - 58. Opening Inventory Rs. 1,00,000; Closing Inventory Rs. 1,20,000; Purchases Rs. 20,00,000; Wages Rs. 2,40,000; Carriage Inwards Rs. 1,50,000; Selling Exp. Rs. 60,000; Revenue from Operations Rs. 30,00,000. Gross Profit ratio will be : *

1 point

29%

26%

19%

21%

Ratios - 59. Profitability Ratios are generally expressed in : *

1 point

Simple Ratio

Percentage

Times

None of these

Ratios - 60. The gross profit ratio is the ratio of gross profit to : *

1 point

Net Cash Sales

Net Credit Sales

Closing Stock

Net Total Sales

Ratios - 61. Which of the following is an operating’ income ? *

1 point

Sale of Merchandise

Interest Income

Dividend Income

Profit on the sale of old car

Admission of a Partner - 62. On the admission of a new partner : *

1 point

Old firm is dissolved

Old partnership is dissolved

Both old partnership and firm are dissolved

Neither partnership nor firm is dissolved

Admission of a Partner - 63. A and B are partners sharing profit in the ratio of 3 : 2. They admit C as a partner by giving him 1/3 share in future profits. The new ratio will be : *

1 point

12 : 8 : 5

8: 12 : 5

5 : 5 : 12

None of the Above

Admission of a Partner - 64. A and B are partners in a business sharing profits and losses in the ratio of 7 : 3 respectively. They admit C as a new partner. A sacrificed 1/7th share of his profit and B sacrificed 1/3rd of his share in favour of C. The new profit sharing ratio of A, B and C will be : *

1 point

3 : 1 : 1

2 : 1 : 1

2 : 2 : 1

None of the above

Admission of a Partner - 65. X and Y are partners sharing profits in the ratio of 3 : 2. Z is admitted as a partner. Calculate sacrificing ratio if new profit sharing ratio is 9 : 7 : 4. *

1 point

3 : 1

3 : 2

1:3

9 : 7

Admission of a Partner - 66. A and B are partners sharing profits and losses as 2 : 1. C is admitted and profit sharing ratio becomes 4 : 3 : 2. Goodwill is valued at Rs. 94,500. C brings required goodwill in cash. Goodwill amount will be Credited to : *

1 point

A Rs. 14,000 and B Rs. 7,000

A Rs. 12,000 and B Rs. 9,000

A Rs. 21,000

A Rs. 94,500

Admission of a Partner - 67. P and S are partners sharing profits in the ratio of 3 : 2. R is admitted with 1/5th share and he brings in Rs. 84,000 as his share of goodwill which is Credited to the Capital Accounts of P and S respectively with Rs. 63,000 and Rs. 21,000. New profit sharing ratio will be : *

1 point

3 : 1 : 5

9 : 7 : 4

3 : 2 : 5

7 : 9 : 4

Admission of a Partner - 68. A and B are partners sharing profits and losses as 2 : 1. C and D are admitted and profit sharing ratio becomes 3 : 2 : 4 : 1. Goodwill is valued at Rs. 90,000. C and D bring required goodwill in Cash. Credit will be given to : *

1 point

A Rs. 30,000; B Rs. 15,000

A Rs. 66,000; B Rs. 24,000

A Rs. 33,000; B Rs. 12,000

A Rs. 27,000; B Rs. 18,000

Admission of a Partner - 69. A and B are partners sharing profits in the ratio of 3 : 2. They admit C into the partnership with 14th share in future profits. The new profit sharing ratio is 5 : 4 : 3. The firm’s goodwill on C’s admission was valued at Rs. 1,44,000. But C could not bring any amount for goodwill in Cash. Credit will be given to : *

1 point

A Rs. 80,000; B Rs. 64,000

A Rs. 20,000; B Rs. 16,000

A Rs. 1,05,600; B Rs. 38,400

A Rs. 26,400; B Rs. 9,600

Admission of a Partner - 70. Goodwill of a firm of A and B is valued at Rs. 30,000. It is appearing in the books at Rs. 12,000. C is admitted for 1/4 share. What amount he is supposed to bring for goodwill? *

1 point

Rs. 3,000

Rs. 4,500

Rs. 7,500

Rs. 10,500

Valuation of Goodwill - 71. A firm’s goodwill is not affected by *

1 point

Location of the firm

The reputation of the Firm

Better Customer Service

None of the Above

Valuation of Goodwill - 72. Weighted average method of calculating goodwill is used when *

1 point

Profits are not equal

Profits show an increasing or decreasing trend

Profits are Fluctuating

None of the Above

Valuation of Goodwill - 73. A firm earns Rs. 1,00,000. The normal rate of return is 10%. The assets of the company amounted to Rs. 11,00,000 and liabilities to Rs. 1,00,000. Value of goodwill by the capitalization of average actual profit will be *

1 point

Rs. 2,00,000

Rs. 10,000

Rs. 5,000

Rs. 1,00,000

Valuation of Goodwill - 74. When there is a change in the current partners’ association that results in ending the existing agreement and initiate a formation of a new agreement is known as *

1 point

Revaluation of Partnership

Reconstitution of Partnership

Realization of Partnership

None of the Above

Valuation of Goodwill - 75. The total capital employed in the company is Rs. 8,00,000 a reasonable rate of return is 15% and the profit of the year is 12,00,000. The value of goodwill of the company as per the capitalisation method will be *

1 point

Rs. 82,00,000

Rs. 12,00,000

Rs. 72,00,000

Rs. 42,00,000

Valuation of Goodwill - 76. Goodwill is defined as *

1 point

Intangible asset

Fictitious asset

Current asset

Liquid asset

Valuation of Goodwill - 77. Formula for average profit? *

1 point

Average profit =Total Normal profits/ Number of years

Average profit =Total Super profits/ Number of years

Average profit =Total Weighted profits/ Number of years

None of these

Valuation of Goodwill - 78. The profit for the last five years of a firm were as follows –year 2015 4,02,000;year 2016 3,98,000;year 2017 4,55,000;year 2018 4,45,000;year 2019 5,00,000.goodwill of the firm is to be valued on the basis of 3 years purchase of 5 years average profits. goodwill of the firm? *

1 point

Rs. 4,40,000

Rs. 13,20,000

Rs. 22,00,000

None of these

Valuation of Goodwill - 79. The average net profits expected of a firm is future are 88000 per years and capital invested in the business by the firm is 3,50,000. The rate of interest expected from capital invested in this class of business is 12%. The remuneration of the partners is estimated to be 18,000 for the year. Calculate the value of goodwill on the basis of two years purchase of super profits. Calculate the value of goodwill? *

1 point

70,000

42,000

28,000

56,000

Valuation of Goodwill - 80. Super profit means- *

1 point

More than normal profit

Less than normal profit

Average profit+Normal Profit

None of these

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