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ICSE XII — Quiz
MCQ Questions for Class 12 Accountancy set-2
50 questions · Test your knowledge
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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
2
Liability of Partners is :
A
Limited
B
Unlimited
C
Determined by partnerships Account
D
None of these
3
Partners’ current accounts are opened when their capital is:
A
Fixed
B
Fluctuating
C
Both (a) and (b)
D
None of these
4
The interest on partner’s drawings is debited to:
A
Partner’s Capital A/c
B
Profit and Loss A/c
C
Drawings A/c
D
P. & L. App. A/c
5
Interest on advance given to the firm is :
A
Ah appropriation
B
A gain
C
A charge
D
None of these
6
Interest on loan is :
A
Operating Expense
B
Direct Expense
C
Indirect Expense
D
All of these
7
Partner’s salary is debited to :
A
Trading Account
B
Profit and Loss Account
C
Profit & Loss Appropriation Account
D
None of these
8
Partnership may be :
A
Limited
B
Unlimited
C
At will
D
All of these
9
Partnership Deed is also called :
A
Prospectus
B
Articles of Association
C
Principles of Partnership
D
Articles of Partnership
10
In which year did the Partnership Act passed ?
A
Year 1932
B
Year 1956
C
Year 1947
D
Year 1952
11
Calculate interest on drawing @12% p.a. for Abhishek if he withdraw ₹ 2,000 once in month :
A
₹ 1,440
B
₹ 1,200
C
₹ 1,320
D
₹ 1,500
12
The interest on capital accounts of partners under fixed capital method is to be credited to:
A
Partner’s Capital A/c
B
Profit & Loss A/c
C
Interest A/c
D
Partner’s Current A/c
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%
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
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
16
The interest on partners’ Capital Accounts under fluctuating method is to be credited to:
A
Profit & Loss A/c
B
Interest A/c
C
Partner’s Capital A/c
D
None of these
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
18
Interest on partner’s capital is calculated on:
A
Opening Capital
B
Closing Capital
C
Average Capital
D
None of these
19
Preparation of partnership agreement in writing is :
A
Compulsory
B
Voluntary
C
Partly Compulsory
D
None of these
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
21
For the firm, interest on partner’s drawings is a/an :
A
Expense
B
Income
C
Loss
D
Gain
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
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
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
25
In an Ordinary Partnership, maximum number of partners can be:
A
50
B
10
C
15
D
20
26
Which of the following is an appropriation of profit?
A
Interest on Loan
B
Interest on Capital
C
Salary
D
Rent
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
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
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
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
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
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
33
Goodwill is to be calculated at one and half year’ purchase of average profit of last 5 years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered losses of ₹ 2,000 and ₹5,000 in last 2 years. The amount of goodwill will be :
A
₹ 12,000
B
₹ 10,000
C
₹ 15,000
D
None of these
34
When there is no Goodwill Account in the books and goodwill is raised,…………….account will be debited :
A
Partner’s Capital
B
Goodwill
C
Cash
D
Reserve
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
36
At the time of admission of a new partners general reserve appearning in the old Balance Sheet is transferred to:
A
All Partner’s Capital Accounts
B
New Partner’s Capital Account
C
Old Partners’. Capital Accounts
D
None of these
37
Profit or Loss on Revaluation is borne by:
A
Old Partners
B
New Partners
C
All Partners
D
Only Two Partners
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
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
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
41
X and Y are partners sharing profits in the ratio of 1:1. They admit Z for 1/5 th share who contributed ₹25,000 for his share of goodwill. The total value of goodwill of the firm will be :
A
₹ 2,50,000
B
₹ 50,000
C
₹ 1,00,000
D
₹ 1,25,000
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
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
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
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 Partners’ Capital A/cs
C
Old Partners’ Capital A/cs
D
Revaluation A/c
46
State the ‘true’ 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 firm’s books as per AS-26
D
When a partner is admitted, there is dissolution of firm
47
Excess of the credit side over the debit side of Revaluation account is:
A
Profit
B
Loss
C
Gain
D
Expense
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)
49
Assets and Liabilities are shown at their revalued values in :
A
New Balance Sheet
B
Revaluation A/c
C
All Partner’s Capital A/c’s
D
Realisation A/c
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
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