ainfoera.com – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Accountancy set-2

1 The relation of partners with the firm is that of:

A An owner B An Agent C An owner and an agent D Manager

✅ Correct Answer: 3

2 Liability of Partners is :

A Limited B Unlimited C Determined by partnerships Account D None of these

✅ Correct Answer: 2

3 Partnersâ€™ current accounts are opened when their capital is:

A Fixed B Fluctuating C Both (a) and (b) D None of these

✅ Correct Answer: 1

4 The interest on partnerâ€™s drawings is debited to:

A Partnerâ€™s Capital A/c B Profit and Loss A/c C Drawings A/c D P. & L. App. A/c

✅ Correct Answer: 1

5 Interest on advance given to the firm is :

A Ah appropriation B A gain C A charge D None of these

✅ Correct Answer: 3

6 Interest on loan is :

A Operating Expense B Direct Expense C Indirect Expense D All of these

✅ Correct Answer: 3

7 Partnerâ€™s salary is debited to :

A Trading Account B Profit and Loss Account C Profit & Loss Appropriation Account D None of these

✅ Correct Answer: 3

8 Partnership may be :

A Limited B Unlimited C At will D All of these

✅ Correct Answer: 4

9 Partnership Deed is also called :

A Prospectus B Articles of Association C Principles of Partnership D Articles of Partnership

✅ Correct Answer: 4

10 In which year did the Partnership Act passed ?

A Year 1932 B Year 1956 C Year 1947 D Year 1952

✅ Correct Answer: 1

11 Calculate interest on drawing @12% p.a. for Abhishek if he withdraw â‚¹ 2,000 once in month :

A â‚¹ 1,440 B â‚¹ 1,200 C â‚¹ 1,320 D â‚¹ 1,500

✅ Correct Answer: 1

12 The interest on capital accounts of partners under fixed capital method is to be credited to:

A Partnerâ€™s Capital A/c B Profit & Loss A/c C Interest A/c D Partnerâ€™s Current A/c

✅ Correct Answer: 4

13 In the absence of partnership deed, the partner will be allowed interest on the amount advanced to the firm:

A @5% B @6% C @ 9% D @8%

✅ Correct Answer: 2

14 Which one is not the feature of partnership?

A Agreement B Sharing of Profit C Limited Liability D Two or more than two persons

✅ Correct Answer: 3

15 In the absence of partnership deed, interest on capital will be given to the partners at:

A 6% p.a. B None of these C Real Account D None of these

✅ Correct Answer: 4

16 The interest on partnersâ€™ Capital Accounts under fluctuating method is to be credited to:

A Profit & Loss A/c B Interest A/c C Partnerâ€™s Capital A/c D None of these

✅ Correct Answer: 1

17 The Current Account of the partners will always have:

A Debit balance B Credit balance C Either of the two D None of these

✅ Correct Answer: 3

18 Interest on partnerâ€™s capital is calculated on:

A Opening Capital B Closing Capital C Average Capital D None of these

✅ Correct Answer: 1

19 Preparation of partnership agreement in writing is :

A Compulsory B Voluntary C Partly Compulsory D None of these

✅ Correct Answer: 2

20 Interest payable on the capital of the partners is recorded in:

A Profit & Loss A/c B Realisation A/c C Profit & Loss Appropriation A/c D None of these

✅ Correct Answer: 3

21 For the firm, interest on partnerâ€™s drawings is a/an :

A Expense B Income C Loss D Gain

✅ Correct Answer: 2

22 In the absence ofany agreement, the profits or losses of the firm are shared:

A Equally B In Capital Ratio C In Different Proportions D None o these

✅ Correct Answer: 1

23 In partnership firm profits and losses are shared :

A Equally B In the Ratio of Capitals C As per Agreement D None of these

✅ Correct Answer: 3

24 Profit & Loss Appropriation Account is prepared to:

A Create Reserve Fund B Find out Net Profit C Find out Divisible Profit D None of these

✅ Correct Answer: 3

25 In an Ordinary Partnership, maximum number of partners can be:

A 50 B 10 C 15 D 20

✅ Correct Answer: 1

26 Which of the following is an appropriation of profit?

A Interest on Loan B Interest on Capital C Salary D Rent

✅ Correct Answer: 2

27 When time of withdrawals are not mentioned, interest on drawings is charged :

A for 616 months B for 8 months C for 516 months D for 12 months

✅ Correct Answer: 2

28 When drawings are made at the end of every month of certain amount, then interest will be calculated on total drawings:

A for 616 months B for 6 months C for 516 months D for i month

✅ Correct Answer: 3

29 In the absence of partnership deed, partners are not entitled to receive:

A Salaries B Commission C Interest on Capital D All of these

✅ Correct Answer: 4

30 If a fixed amount is withdrawn on the first day of every quarter, the interest on total drawing will be calculated :

A for 6 months B for 6.5 months C for 5.5 months D for 7.5 months

✅ Correct Answer: 4

31 Which accounts are opened when the capitals are fixed?

A Only Capital Accounts B Only Current Accounts C Liability Accounts D Capital and Current Accounts

✅ Correct Answer: 4

32 Goodwill is nothing more than probability that the old customer will resort to the old place. This definition of goodwill was given by:

A Spicer and Pegler B ICAI C Lord Elton D AICPA

✅ Correct Answer: 3

33 Goodwill is to be calculated at one and half yearâ€™ purchase of average profit of last 5 years. The firm earned profits during 3 years as â‚¹ 20,000 â‚¹ 18,000 and â‚¹ 9,000 and suffered losses of â‚¹ 2,000 and â‚¹5,000 in last 2 years. The amount of goodwill will be :

A â‚¹ 12,000 B â‚¹ 10,000 C â‚¹ 15,000 D None of these

✅ Correct Answer: 1

34 When there is no Goodwill Account in the books and goodwill is raised,â€¦â€¦â€¦â€¦â€¦.account will be debited :

A Partnerâ€™s Capital B Goodwill C Cash D Reserve

✅ Correct Answer: 2

35 The amount of goodwill is paid by new partner :

A for the payment of capital B for sharing the profit C for purchase of assets D None of these

✅ Correct Answer: 2

36 At the time of admission of a new partners general reserve appearning in the old Balance Sheet is transferred to:

A All Partnerâ€™s Capital Accounts B New Partnerâ€™s Capital Account C Old Partnersâ€™. Capital Accounts D None of these

✅ Correct Answer: 3

37 Profit or Loss on Revaluation is borne by:

A Old Partners B New Partners C All Partners D Only Two Partners

✅ Correct Answer: 1

38 Share of goodwill brought by new partner in case is shared by old partners in :

A Sacrificing Ratio B Old Ratio C New Ratio D Equal Ratio

✅ Correct Answer: 1

39 A, Band Care three partners sharing profits and losses in the ratio of 4:3:2. D is admitted for 1/10 share, the new ratio will be :

A 10 : 7 : 7 :4 B 5 : 3 : 2 : 1 C 4 : 3 : 2 : 1 D None of these

✅ Correct Answer: 3

40 A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner for 1/3 rd share in the profits of the firm. The new profit sharing ratio of A, B and C would be :

A 3 : 2 : 1 B 3 : 2 : 2 C 3 : 2 : 3 D 6 : 4 : 5

✅ Correct Answer: 4

41 X and Y are partners sharing profits in the ratio of 1:1. They admit Z for 1/5 th share who contributed â‚¹25,000 for his share of goodwill. The total value of goodwill of the firm will be :

A â‚¹ 2,50,000 B â‚¹ 50,000 C â‚¹ 1,00,000 D â‚¹ 1,25,000

✅ Correct Answer: 3

42 A, B and C are partners in a firm. If D is admitted as a new partner, then:

A Old firm is dissolved B Old firm and old partnership is dissolved C Old Partnership is reconsitituted D None of these

✅ Correct Answer: 3

43 In which ratio, the cash brought in for goodwill by the new partner is shared by the existing partners :

A Profit sharing ratio B Capital ratio C Sacrificing ratio D None of these

✅ Correct Answer: 3

44 Sacrificing ratio is ascertained at the time of:

A Death of a partner B Retirement of a partner C Admission of a partner D None of these

✅ Correct Answer: 3

45 If at the time of admission of new partner, Profit and Loss Account balance appears in the books, it will the transferred to:

A Profit & Loss Appropriation A/c B All Partnersâ€™ Capital A/cs C Old Partnersâ€™ Capital A/cs D Revaluation A/c

✅ Correct Answer: 3

46 State the â€˜trueâ€™ statement:

A Profit & Loss Adjustment A/c is prepared for revaluated of assets and liabilities on the admission of a partner B The new partner is liable for the past losses of the firm C In case the new partner is unable to bring in cash for goodwill, Goodwill Account may be raised in the firmâ€™s books as per AS-26 D When a partner is admitted, there is dissolution of firm

✅ Correct Answer: 1

47 Excess of the credit side over the debit side of Revaluation account is:

A Profit B Loss C Gain D Expense

✅ Correct Answer: 1

48 Balance sheet prepared after new partnership agreement, assets and liabilities are recorded at:

A Original Value B Revalued Figure C At Realisable Value D Either of (a) or (b)

✅ Correct Answer: 2

49 Assets and Liabilities are shown at their revalued values in :

A New Balance Sheet B Revaluation A/c C All Partnerâ€™s Capital A/câ€™s D Realisation A/c

✅ Correct Answer: 1

50 Which of the following assets is compulsorily revalued at the time of admission of a new partner :

A stock B Fixed Assets C Investment D Goodwill

✅ Correct Answer: 4

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MCQ Questions for Class 12 Accountancy set-2