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.

Chapter Wise Class 12 Accountancy Multiple Choice Questions

Part 1

Chapter 1 Accounting For Not For Profit Organisation

Chapter 2 Accounting for Partnership Firms – Basic Concepts

Chapter 3 Reconstitution Of A Partnership Firm – Admission Of A Partner

Chapter 4 Reconstitution Of A Partnership Firm – Retirement/Death Of A Partner

Chapter 5 Dissolution Of Partnership Firm

Part 2

Chapter 1 Accounting for Share Capital

Chapter 2 Issue and Redemption of Debentures

Chapter 3 Financial Statements of a Company

Chapter 4 Analysis of Financial Statement

Chapter 5 Accounting Ratios

Chapter 6 Cash Flow Statement

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

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

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

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

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

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.

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

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

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.

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

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

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

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%

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

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

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

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

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

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%

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

Fill in the Blank :

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

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

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 ____.

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

Question. Interest on Debenture is a ________ against profit.

Question. Debentures can be converted into _______.

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

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.

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

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

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

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

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

Question. Debenture holders do not have right to ______. 

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

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

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

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

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

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

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

True/False :

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

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

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.

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

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

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

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.

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

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

Question. Rent received by a Trading Company is an investing activity.

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

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.

Question. Debentures are part of Shareholder’s Funds.

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.

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

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

Question. Comparative Statement indicates trend and helps in forecasting.

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

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

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.