# MCQs For NCERT Class 12 Accountancy With Answers

Students can refer to the below MCQ questions for Class 12 Accountancy with Answers provided here as per the chapters given in NCERT covering available for all important topics which are given in each chapter which will be very useful for students who are preparing for upcoming examinations. We have provided MCQ-based questions and PDFs based on the latest CBSE and NCERT curriculum, examination pattern, and expected question paper pattern issued this year.

## Class 12 Accountancy MCQs with Answers

You can click on the link below for each chapter below given as per NCERT Book for Class 12 Accountancy to get free multiple-choice questions with solutions. These MCQs have been prepared by the Accountancy teacher after thorough research on the types of questions that are expected to come in Class 12 examinations. Go through the questions and then compare your answer with the solutions provided by us.

Part 1

Part 2

### Solved Objective Questions Class 12 Accountancy

Question. Ashima and Nagma are partners in M/s Saraswati Enterprise. They admit Ashok as partner w.e.f 1st April, 2019. They agreed to value goodwill at 3 years’ purchase of Super Profit for which they decided to take average of last 5 years profit. The profits for the last five years were:
Year Ended Rs.
a) Rs. 2,01,000
b) Rs. 1,01,000
c) Rs. 2,01,000
d) Rs. 3,06,000

C

Question. Profit or Loss on revaluation of assets and reassessment liabilities is transferred to Partner’s Capital Accounts in their:
a) Fixed Capital Ratio
b) Equal Ratio
c) Old Profit Sharing Ratio
d) Gaining Ratio

C

Question. If a share of Rs. 10 issued at a premium of Rs. 2 on which the full amount has been called and Rs. 8 including premium paid is forfeited, the Share Capital Account should be debited with
a) Rs. 12
b) Rs. 10
c) Rs. 8
d) Rs. 6

B

Question. 10% Debenture. Here 10% is _______.
a) Coupon Rate
b) Dividend Rate
c) Floating Rate

A

Question. Out of the following, to which category of Account, ‘Debentures’ belong?
a) Asset
b) Capital
c) Liability
d) Expense

C

Question. If X pays Rs. 1,50,000 as his share of goodwill to Y privately, an existing partner, the treatment will be:
a) Goodwill Account will be debited by Rs. 1,50,000
b) Goodwill Account be debited by Rs. 6,00,000
c) Goodwill Account be credited by Rs. 1,50,000
d) No entry will be passed.

D

Question. Capital Account of the partners will be credited for
a) Writing off goodwill
b) Distribution of debit balance of Profit & Loss Account
c) Profit on revaluation of assets and reassessment of liabilities
d) Loss on revaluation of assets and reassessment of liabilities

C

Question. Life Membership Fee received by a NPO is a
a) Capital Receipt
b) Revenue Receipt
c) General Donation
d) Specific Donation

A

Question. Income and Expenditure accounts shows
a) Cash available to an organization
b) Closing capital of an organization
c) Cash available in the bank account
d) Surplus or Deficit for the current accounting period.

D

Question. Example of Cash and Cash Equivalents
a) Sale of Fixed Assets
c) Marketable Securities
d) Refund of Tax

C

Question. A and B are partners sharing profits and losses in the ratio of 3 : 2. Their capitals are Rs. 30,000 and Rs. 20,000 respectively. On 31st March 2019, there is balance of General Reserve of Rs. 10,000. On 1st April, 2019 C was admitted for 1/3rd share who also brings Rs. 6,000 as share of goodwill. On the date of his admission, furniture was reduced by Rs. 1,000, Provision for Doubtful Debts increased by Rs. 1,000 and there is an appreciation of Rs. 4,000 in stocks. Old partners decide that C’s capital should be in accordance with his share of profit and capital of old partner’s. Total capital of the firm after admission of C will be:
a) Rs. 1,20,000
b) Rs. 1,02,000
c) Rs. 1,30,000
d) Rs. 1,10,000

B

Question. Opening Inventory is Rs. 20,000; closing inventory is Rs. 60,000 purchases Rs. 1,60,000. Stock Turnover Ratio is
a) 4 Times
b) 6 Times
c) 3 Times
d) 2 Times

C

Question. A company has Trade Receivables of Rs. 8,80,000 on 31st March, 2016 and Rs. 9,90,000 on 31st March, 2017. The percentage change is
a) 20%
b) 12.5%
c) 15%
d) 25%

B

Question. If current ratio is 2:1 current assets are Rs. 82,000. Current liabilities will be:
a) Rs. 41,000
b) Rs. 38,000
c) Rs. 15,000
d) Rs. 20,000

A

Question. X and Y are partners sharing profits in the ratio of 3 : 2, and capitals as Rs. 100,000 and Rs. 50,000 respectively, after adjustments. Z is admitted for 1/5th share in profits, The amount Z will contribute as capital will be:
a) Rs.50,000
b) Rs.35,000
c) Rs.37,500
d) Rs.60,000

C

Question. Goodwill of Rs. 10,000 and Rs. 20,000 as on 31st March, 2018 and 31st March, 2019. The increase of goodwill will be
a) Operating Activity
b) Investing Activity
c) Financing Activity
d) Operating and Investing Activity

B

Question. A Machinery is purchased under Hire-Purchase System, each instalment will include interest and a part of principal. Cash Paid for interest is:-
a) Financing Activity
b) Operating Activity
c) Investing Activity
d) Financing and Investing Activity

A

Question. Reserve Capital is a part of
a) Issued Capital
b) Authorised Capital
c) Subscribed Capital
d) Called-up Capital

C

Question. A company has Trade Receivables amounted to Rs. 8,80,000 on 31st March, 2016 and Rs. 9,90,000 on 31st March, 2017. The percentage change is
a) 20%
b) 12.5%
c) 15%
d) 25%

B

Question. Cash collection from booking of room in Hotel Industry is
a) Operating Activity
b) Investing Activity
c) Financing Activity
d) Operating and Investing Activity

C

Fill in the Blank :

passed will be ………….. A/c Dr. Rs. 5,000 To ……………. A/c Rs.5,000 .

Revaluation, Stock

Question. Revaluation Account is _______ to post transfer) increase in Provision for Doubtful Debts.

debited

Question. Creditors of Rs. 30,000 and Bills Payable of Rs. 8,000 were due one month after 31st March, 2019 but they were paid on 31st March, 2019 at a discount of 6% p.a., the amount debited to Realisation Account will be ____.

Rs. 37,810

Question. Sports material consumed during the year is debited to Income and Expenditure Account and balance amount is carried forward in the ______.

Balance Sheet

Question. Interest on Debenture is a ________ against profit.

Charge

Question. Debentures can be converted into _______.

share

Question. Share issue Expenses are shown as outflow of cash under ______ activity.

Financing

Question. Proposed Dividend of ₹ 60,000 and ₹ 50,000 as on 31st March, 2018 and 31st March, 2019 respectively. The amount of ₹ 50,000 will be ____ as shown in the notes of accounts.

Contingent Liability

Question. The amount earlier written off as bad debt now received is _____ to Revaluation Account.

Credited

Question. Short-term Loans and Advances are included in ________.

Current Assets

Question. Buy-Back of own shares are shown in ____ activity under cash flow statement.

Financing activity

Question. SEBI prescribes that application money should not be less than ______ of the issued price.

25%

Question. Closing Balance of Receipt and Payments Account is shown in the _____ as an _____.

Balance Sheet

Question. Debenture holders do not have right to ______.

Vote

Question. Premium on issue of debentures is transferred to ________.

Question. Bank overdraft, cash credit, short-term loans and debentures are examples of ______.

Financing Activity

Question. Comparison of each component of Financial Statement for two accounting periods, prepared in a form reflecting financial data is known as _______.

Comparative Statement

Question. When Comparative Statement of the firm’s financial statements for two or more years is prepared, it is known as ______.

Intra-firm Comparison

Question. Comparative Statement of firm’s to compare financial values with that of another firm or with industry data is known as _____.

Inter-Firm Comparison

Question. ______ Comparative Statement of firm’s financial statements is prepared with that of another firm or with industry data or with the budget.

Inter-Firm Comparison

Question. Financial performance of a firm is assessed through ____ ratio.

Profitability

True/False :

Question. Newly admitted partner does not have the right on the assets of the firm.

False

Question. Change in business relationship among the Partners is Dissolution of Partnership.

True

Question. A NPO received Rs. 5,00,000 as Legacy Donation to be used for setting up a Library. It will be shown as Library Fund in the Liabilities side of Balance Sheet.

True

Question. Collateral Security is the main or principal security mortgaged for loan

False

Question. Interest on Debentures is paid only when a Company earns profit.

False

Question. Payment for purchase of fixed Assets is classified or shown as investing activity for both non-finance and finance company.

True

Question. F Ltd is carrying on a mutual fund business. It invested ₹ 20,00,000 in shares and ₹ 15,00,000 in debentures of various companies Dividend and Interest received is a financing Activity.

False

Question. At the time of admission of a partner, Revaluation Account is credited on increase in the value of Plant and Machinery.

True

Question. Current Ratio is the example of Long term Solvency Ratio.

False

True

Question. Calls-in-Arrears is the amount not received by the company against the amount called towards share capital.

True

Question. Honorarium is a token payment paid to a person in recognition of his service that normally commands a fee. It is a revenue expense for a NPO.

True

Question. Debentures are part of Shareholder’s Funds.

False

Question. Secured Debentures are those debentures which are secured against fixed charge. False

Question. Payment for purchase of fixed Assets is classified or shown as Investing Activity for both Non-Financing and Financing Companies.

True

Question. Intra-firm Comparison is Comparison of values between two or more firms.

False

Question. Inter-Firm Comparison of financial values of two firms of same period.

True

Question. Comparative Statement indicates trend and helps in forecasting.

True

Question. Common-Size Statement indicates trend and helps in forecasting.

True

Question. Debtors and Bills Receivable are included in Trade Receivable.

True

The importance of MCQs For NCERT Class 12 Accountancy has been increasing in the Class 12 examination. More and more questions with multiple choice have started coming in Class 12 examinations, thus it’s important for students to practice as many MCQs as possible given on our website. These choice-based questions have been developed after careful study of the Accountancy textbook issued by NCERT and study of all important topics. Students have always been advised by teachers to go through as many MCQs as possible prior to the examination to make sure they have a thorough understanding of each topic and are able to get good scores in their exams.

Our Accountancy teachers for class 12 have done a great amount of work in developing these questions and providing you solutions. Class 12 students should go through these questions and also for other subjects in Class 12 given on our website. This will help the students to gain a full understanding of each and every important topic in the chapters which you are currently studying.

#### Advantages of MCQs for Class 12 Accountancy

a) More MCQ based questions have started coming in Class 12 Accountancy examinations thus increasing their importance

b) Multiple Choice Questions for Accountancy Class 12 should be practiced daily to make sure all points in a chapter are covered thoroughly.

c) Daily practicing MCQs will help you to gain an understanding of very minor topics given in each chapter of Accountancy so that you have a strong understanding of everything given in each chapter

d) Though the MCQs can be tricky if you practice as many multiple choices as possible then you will definitely give correct answers

We provide Free PDFs of MCQs in CBSE Class 12 Accountancy which has been developed as per the latest syllabus and curriculum issued by CBSE, NCERT, and KVS.

You have come to the correct website https://www.ncertbooksolutions.com as here we have provided you the largest database of free multiple-choice questions for Class 12 Accountancy

The syllabus for Class 12 Accounts was updated, I want the latest and updated MCQs?

The multiple-choice questions on our website have been updated based on the latest and updated curriculum issued by CBSE, KVS, and NCERT

Where can I get all MCQs covering all the topics of NCERT Class 12 Accountancy, where get I get them?

On our website, we have provided the best collection of MCQs For NCERT Class 12 Accountancy covering every important topic in your book so that you have a thorough preparation for your exams

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