# CBSE Class 12 Accountancy Term 1 MCQs

Q1: In absence of partnership deed, which partner gets more share of profit?

(a) sleeping

(b) active

(c) actual

(d) No one

Q2: Vikas and Yogesh were in partnership sharing profits and losses in the ratio of 2 : 1. They admitted Kunal as a new partner. Kunal brought ₹ 1,00,000 as his share of goodwill premium, which was entirely credited to Vikas’s capital account. On the date of admission, goodwill of the firm was valued at ₹ 5,00,000. The new profit sharing ratio of Vikas, Yogesh and Kunal will be:

(a) 7:5:3

(b) 7:3:5

(c) 5:7:3

(d) 3:5:7

Q3: Which of the following items is not dealt through Profit and Loss Appropriation Account?

(a) Interest on Partner’s Loan

(b) Partner’s Salary

(c) Interest on Partner’s Capital

(d) Partner's Commission

Q4: On 1st January 2019, a partner advanced a loan of ₹ 1,00,000 to the firm. In the absence of agreement, interest on loan on 31st March 2019 will be :

(a) Nil

(b) ₹ 1,500

(c) ₹ 3,000

(d) ₹ 6,000

Q5: Which of the following is a feature of goodwill?

(a) Invaluable asset

(b) Difficult to calculate exact value

(c) Fictitious asset

(d) Doesn't Impact firm's profits

Q6: Formula of find of Normal profit is

(a) Total profits ÷Number of years

(b) Total of profits × Number of years

(c) Capital employed × Normal rate of profit ÷ 100

(d) None of the above

Q7: Capital employed by a partnership firm is Rs. 5,00,000. Its average profit is Rs.60,000. The normal rate of return in similar type of business is 10%. The amount of super profit is

(a) ₹ 50,000

(b) ₹ 10,000

(c) ₹ 6,000

(d) ₹ 56,000

Q8: Exccss of ______profits over the _______ is called super profit.

(a) super, normal

(b) actual, super

(c) actual, normal

(d) super. actual

Q9: Any change in the relationship of existing partners which results in an end of the existing agreement and enforces making of new· agreement is called:

(a) Revaluation of partnership

(b) Reconstitution of partnership

(c) Realisation of partnership

(d) None of the above

Q10. The ratio in which a partner receives a rise in his share of profits is known as:

(a) New Ratio

(b) Sacrificing Ratio

(c) Capital Ratio

(d) Gaining Ratio

Q11: In case of change in profit-sharing ratio, the gaining partner must compensate the sacrificing partners by paying the proportional amount of

(a) capital

(b) cash

(c) goodwill

(d) none of the above

Q12: X,Y and Z are partners sharing profits and losses in the ratio of 5:3:2.They decide to share the future profits in the ratio of 3:2:1. Workmen compensation reserve appearing in the balance sheet on the date if no information is available for the same will be:

(a) Distributed among the partners in old profit sharing ratio

(b) Distributed among the partners in new profit sharing ratio

(c) Distributed among the partners in capital ratio

(d) Carried forward to new balance sheet without any adjustment

Q13: The 'share of premium for goodwill' brought in by the new partner is divided in which ratio?

(a) In new ratio

(b) In old ratio

(c) In sacrificing ratio

(d) None of these

Q14: A and B are partners in a firm having a capital of ₹ 54,000 and ₹ 36,000 respectively. They admitted C for 1/3rd share in the profits, C brought proportionate amount of capital. The capital brought in by C would be:

(a) ₹90,000

(b) ₹45,000

(c) ₹ 5,400

(d) ₹36,600

Q15: A and B are in partnership sharing profits and losses as 3: 2. C is admitted for 1/4th share. Afterwards, D enters for 20 paisa in the rupee. The new profit sharing ratio alter D's admission will be :

(a) 9:6:5:5

(b) 6:9:5:5

(c) 3:2:4:5

(d) 3:2:5:5

Q16: Liability of a shareholder is limited to _________ of the shares allotted to him:

(a) Paid up value

(b) Called up value

(c) Face value

(d) Reserve Price

Q17: Sale of scrap is a part of ____________ .

(a) Other income

(b) Reserves and Surplus

(c) Finance of cost

(d) Long-term Provisions

Q18: Reserve share capital means :

(a) Part of authorised capital to be called at the beginning

(b) Portion of uncalled capital to be called only at liquidation

(c) Over subscribed capital

(d) Under subscribed capita

Q19: Which of the following is not a limitation of analysis of financial statements?

(a) Window Dressing

(b) Price level changes ignored

(c) Subjectivity

(d) Intra-firm comparison possible

Q20: An Annual Report is issued by a company to its:

(a) Directors

(b) Authors

(c) Shareholders

(d) Management

Q21: Securities Premium Account is shown on the liabilities side in the Balance Sheet Under heading

(a) Reserves and Surplus

(b) Current Liabilities and Provisions

(c) Share Capital

(d) Contingent Liabilities

Q22: 'Security deposits arc presented in the balance sheet of the company under the subhead of

(a) Other noncurrent assets

(b) Long term loans and advances

(c) Fixed assets

(d) Other current liabilities

Q23: Which of the following is not required to be prepared under the Companies Act?

(a) Statement of Profit and Loss

(b) Balance Sheet

(c) Report of Director’s and Auditor’s

(d) Funds Flow Statement

Q24: Which of the following is not a limitation of 'finacial statements analysis'?

(a) It is affected by personal bias.

(b) Interfirm comparative study possible.

(c) Lack of qualitative 8nalysis.

(d) iqnores price level changes.

Q25: The two basic measures of operational efficiency of a company are

(a) Inventory Turnover Ratio and Working Capital Turnover Ratio

(b) Liquid Ratio and Operating Ratio

(c) Liquid Ratio and Current Ratio

(d) Gross Profit Margin and Net Profit Margin

1. (d) No one

2. (a) 7:5:3

3. (a) Interest on Partner’s Loan

4. (b) ₹ 1,500

5. (b) Difficult to calculate exact value

6. (c) Capital employed × Normal rate of profit ÷ 100

7. (b) ₹ 10,000

8. (c) actual, normal

9. (b) Reconstitution of partnership

10. (d) Gaining Ratio

11. (c) goodwill

12. (a) Distributed among the partners in old profit sharing ratio

13. (c) In sacrificing ratio

14. (b) ₹45,000

15. (a) 9:6:5:5

16. (c) Face value

17. (b) Reserves and Surplus

18. (b) Portion of uncalled capital to be called only at liquidation

19. (d) Intra-firm comparison possible

20. (c) Shareholders

21. (a) Reserves and Surplus

22. (b) Long term loans and advances

23. (d) Funds Flow Statement

24. (b) Interfirm comparative study possible.

25. (d) Gross Profit Margin and Net Profit Margin