The ARYAN International School

MCQ SHEET
Class – XII Com.
Subject: Accountancy Date: 20.03.2024

correct explanation of Assertion(A)

(c) Assertion(A) is incorrect but Reason(R) is correct
(d) Assertion(A) is correct but Reason(R) is incorrect

3. Balance in Share forfeiture account is shown in the Balance Sheet under the head of:
(a) reserves and surplus
(b) long term borrowings
(c) share capital
(d) other current liabilities
OR
Premium on redemption of debentures account is a ______ account
(a) real
(b) nominal
(c) personal
(d) none of these
4. A and B were partners in a firm sharing profit or loss in the ratio of 3 : 1. With effect from Jan. 1, 2019 they agreed to
share profit or loss in the ratio of 2 : 1. Due to change in profit-loss sharing ratio, B‟s gain or sacrifice will be :
(a) Sacrifice 1/12
(b) Gain 1/12
(c) Gain 1/3
(d) Sacrifice 1/3
OR
Which one of the following is NOT an essential feature of a partnership?
(a) There must be an agreement
(b) There must be a business
(c) The business must be carried on for profits
(d) The business must be carried on by all the partners

5. What will be the interest on drawing @12.5% p.a. for Ashish if he withdrew ₹ 5000 once in a month?
(a) Rs. 3500
(b) Rs. 7500
(c) Rs. 3750
(d) None of the above

6. The debentures which are payable on the expiry of a specified period either in lump sum or in installments during the
lifetime of the company are known as
(a) secured debentures
(b) specific coupon rate debentures
(c) redeemable debentures
(d) convertible debentures
OR
Which of the following statements is incorrect with respect to debentures?
(a) debentures can be issued for cash
(b) debentures cannot be issued at discount
(c) debentures can be issued as collateral security
(d) debentures can be issued at premium

7. Assertion (A): Manoj Ltd. gave shares worth Rs. 150000 to the vendor from whom it bought machinery.
Reason (R): The company can issue shares as against the payment to the vendors.
(a) Both Assertion(A) and Reason(R) are correct and Reason(R) is the correct explanation of Assertion(A)
(b) Both Assertion(A) and Reason(R) are correct but Reason(R) is not the correct explanation of Assertion(A)
(c) Assertion(A) is incorrect but Reason(R) is correct
(d) Assertion(A) is correct but Reason(R) is incorrect

8. Akshita, Shraddha and Pooja were partners sharing profits and losses in the ratio of 4:3:1. Shraddha retires and gives her
share of profit to Akshita for 3600 and Pooja for 3000. The gaining ratio of Akshita and Pooja will be:
(a) 4:5
(b) 6:5
(c) 2:1
(d) 4:1
OR
A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. B was guaranteed a profit of Rs. 2,00,000 During
the year the firm earned a profit of Rs. 84,000, Calculate the net amount of Profit or Loss transferred to the Capital
Accounts of A and C.
(a) Rs. 87,000 & Rs. 29,000
(b) Rs. 77,000 & Rs. 39,000
(c) Rs. 25,000 & Rs. 75,000
(d) Rs. 27,000 & Rs. 89,000

Read the following hypothetical situation, answer question no. 9 and 10.
X and Y are partners in 3:2. Their capital balances as on 1st April 2022 amounting to ₹ 2,00,000 each. On 1st February
2023, X contributed an additional capital of 1,00,000. Following are the terms of deed
(a) Interest on capital @ 6% per annum
(b) Interest on drawings @ 8% per annum
(c) Salary to X 1,500 per month
(d) Commission to Y @10% on net profit after charging interest on capital, salary and his commission.
Drawings of the partners were ₹ 20,000 and ₹ 30,000 respectively during the year. Net profit earned by the firm was ₹
2,08,000.
9. What is the amount of interest on capitals of X and Y:
(a)Rs. 12000 each
(b) Rs. 12000 to X and Rs. 13000 to Y
(c) Rs. 13000 to X and Rs. 12000 to Y
(d) None of these

10. What is the amount of interest on drawings of X and Y?

(a) Rs. 120 and Rs. 1800 respectively
(b) Rs. 800 and Rs. 1200 respectively
(c) Rs. 1200 and Rs. 800 respectively
(d) Rs. 1600 and Rs. 2400 respectively

11. X, Y and Z were doing business in partnership with capital investment of Rs. 40000, Rs. 40000 and Rs.80000 as
capitals. Deed is silent regarding the profit sharing ratio of the partners. During the year they earned a profit of Rs. 120000.
How much amount of profit will be given to Z assuming that the whole business is managed by Z alone?
(a) Rs.60000 (c) Rs. 120000
(b) Rs. 40000 (d) None of the above

12. An equity share of Rs. 10 fully called up on which Rs. 6 has been paid was forfeited for the non-payment of the
balance amount. At which of the following minimum price can it be re issued?
(a) Rs. 4 (c) Rs. 16
(b) Rs. 10 (d) Rs. 6

13. The allowed amount of discount on re-issue of shares will be _____.

(a) @ 10% of issue price
(b) up to the amount of forfeited money
(c) could not issue at discount
(d) none of these

14. P, Q and R are partners in a firm sharing profits and losses in the ratio 2:2:1. They admitted L as a new partner for
1/5th share in the profits. L was given a guarantee that his share of profit shall be 100000. Any deficiency arising on
account of guarantee to L will be borne by Q. The profit of the firm during the year ended 31st March 2023 was 4 lakh.
The amount of deficiency borne by Q was:
(a) 80000
(b) 20000
(c) 6667
(d) 10000

15. Manoj and Manish are partners. Manish draws a fixed amount in the beginning of every quarter. Interest on drawings
is charged @12% p.a. At the end of the year interest on Manish‟s drawings amounted to 4500. Drawings of Manish
were:
a) 14,000 per quarter.
b) 15,000 per quarter
c) 20,000 per quarter
d) 10,000 per quarter
OR
A, D and K were equal partners. They decided to change the profit sharing ratio to 4:3:2. For this purpose the Goodwill of
the firm was valued at 90000. The journal entries for the treatment of goodwill on change in profit sharing ratio will be:
(a) debit K‟s capital account; credit A‟s capital account 10000
(b) debit D's capital account; credit A‟s capital account 10000
(c) debit A‟s capital account; credit K‟s capital account 90000
(d) debit A‟s capital account; credit K‟s capital account 10000

16. On dissolution of the partnership firm of A, B and C, the accumulated profits of ₹ 40000 will be transferred to which
of the following accounts?
(a) Revaluation account
(b) Realization account
(c) Partner‟s capital accounts
(d) Bank account