ACCOUNTANCY SAMPLE PAPER 4 CLASS 12

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ACCOUNTANCY SAMPLE PAPER 4 CLASS 12

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1.Which of the following statement is true?
(A) a minor cannot be admitted as a partner
(B) a minor can be admitted as a partner, only into the benefits of the partnership
(C) a minor can be admitted as a partner but his rights and liabilities are same of adult partner
(D) none of the above
2.Which one of the following is NOT an essential feature of a partnership?
(A) There must be an agreement
(B) There must be a business
(C) The business must be carried on for profits
(D) The business must be carried on by all the partners
3.Which of the following is not incorporated in the Partnership Act?
(A) profit and loss are to be shared equally
(B) no interest is to be charged on capital
(C) all loans are to be charged interest @6% p.a.
(D) all drawings are to be charged interest
4.Interest on capital will be paid to the partners if provided for in the partnership deed but only out of: (C.S. Foundation; December, 2012)
(A) Profits
(B) Reserves
(C) Accumulated Profits
(D) Goodwill
5.If any loan or advance is provided by partner then, balance of such Loan Account should be transferred to :
(A) B/S Assets side
(B) B/S Liability Side
(C) Partner’s Capital A/c
(D) Partner’s Current A/c
6.A partner introduced additional capital of ₹30,000 and advanced a loan of ₹40,000 to the firm at the beginning of the year. Partner will receive year’s interest:
(A) ₹4,200
(B) ₹2,400
(C) Nil
(D) ₹1,800
7.Is rent paid to a partner appropriation of profits?
(A) It is appropriation of profit
(B) It is not appropriation of profit
(C) If partner’s contribution as capital is maximum
(D) If partner is a working partner.
8.Sangeeta and Ankita are partners in a firm. Sangeeta’s capital is ₹70,000 and Ankita’s Capital is ₹50.000. Firm’s profit is ₹60,000. Ankita share in profit will be :
(A) ₹25,000
(B) ₹3 0,000
(C) ₹35,000
(D) ₹20,000
9.A and B were partners in a firm sharing profit or loss equally. With effect from 1st April, 2019 they agreed to share profits in the ratio of 4 : 3. Due to change in profit sharing ratio, B’s gain or sacrifice will be :
(A) Gain 1/14
(B) Sacrifice 1/14
(C) Gain 4/7
(D) Sacrifice 3/7
10.A, B and C were partners sharing profit or loss in the ratio of 7 : 3 : 2. From Jan. 1,2019 they decided to share profit or loss in the ratio of 8 : 4 : 3. Due to change in the profit-loss sharing ratio, B’s gain or sacrifice will be :
(A) Gain 160
(B) Sacrifice 160
(C) Gain 260
(D) Sacrifice 360

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11.The Goodwill of the firm is NOT affected by : (CPT; June 2011)
(A) Location of the firm
(B) Reputation of firm
(C) Better customer service
(D) None of the above
12.The net assets of a firm including fictitious assets of ₹5,000 are ₹85,000. The net liabilities of the firm are ₹30,000. The normal rate of return is 10% and the average profits of the firm are ₹8,000. Calculate the goodwill as per capitalisation of super profits.
(A) ₹20,000
(B) ₹30,000
(C) ₹25,000
(D) None of these
13.P, Q and R were partners in a firm sharing profis in 5 : 3 : 2 ratio. They decided to share the future profits in 2 : 3 : 5. For this purpose the goodwill of the firm was valued at ₹1,20,000. In adjustment entry for the treatment of goodwill due to change in the profit sharing ratio :
(A) Cr. P by ₹24,000; Dr. R by ₹24,000
(B) Cr. P by ₹60,000; Dr. R by ₹60,000
(C) Cr. P by ₹36,000; Dr. R by ₹36,000
(D) Dr. P by ₹36,000; Cr. R by ₹36,000
14.A, B and C are partners in a firm sharing profits in the ratio of 3 : 4 : 1. They decided to share profits equally w.e.f. 1 st April, 2019. On that date the Profit and Loss Account showed the credit balance of ?96,000. Instead of closing the Profit and Loss Account, it was decided to record an adjustment entry reflecting the change in profit sharing ratio. In the journal entry :
(A) Dr. A by ₹4,000; Dr. B by ₹16,000; Cr. C by ₹20,000
(B) Cr. A by ₹4,000; Cr. B by ₹16,000; Dr. C by ₹20,000
(C) Cr. A by ₹16,000; Cr. B by ₹4,000; Dr. C by ₹20,000
(D) Dr. A by ₹16,000; Dr. B by ₹4,000; Cr. C by ₹20,000
At the time admission, which ratio is used to compensate the old partners for their share sacrificed?
(A) Sacrifice Ratio
(B) Gaining Ratio
(C) Both Ratios
(D) None of the above
15.B and N are partners in a firm sharing profits in the ratio of 3 : 2. They admit S as a partner for l/4th share in the profits. S acquires his share from B and N in the ratio of 2 : 1. The new profit-sharing ratio will be :
(A) 2:1:4
(B) 19:26: 15
(C) 3:2:4
(D) 26 : 19 : 15
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16.P and Q are partners sharing profits in the ratio of 9 : 7. R is admitted as a partner with 9/20th share in the profits, which he takes 1/5th from P and 14th from Q Sacrificing ratio will be :
(A) 5 : 4
(B) 9 : 7
(C) 7 : 9
(D) 4 : 5
17.If at the time of admission, there is some unrecorded liability, it will be :
(A) Debited to Revaluation Account
(B) Credited to Revaluation Account
(C) Debited to Goodwill Account
(D) Credited to partners’ Capital Accounts
18.If, at the time of admission, the revaluation A/c shows a profit, it should be credited to :
(A) Old partners capital accounts in the old profit sharing ratio.
(B) All partners capital accounts in the new profit sharing ratio.
(C) Old partners capital accounts in the new profit sharing ratio.
(D) Old partners capital accounts in the sacrificing ratio.
19.Which statement is issued before the issue of shares ?
(a) Prospectus
(b) Articles of Association
(c) Memorandum of Association
(d) All of these
20.Securities Premium cannot be applied :
(a) For paying dividend to members
(b) For issuing bonus shares to members
(c) For writing off preliminary expenses of company
(d) For writing off discount on issue of debentures
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21.Shares may be issued :
(a) At par value
(b) At FYemimum
(c) At Discount
(d) Both (a) & (b)
22.If the loss on reissue of shares is less than the amount forfeited, the ‘surplus’ or profit is transferred to :
(a) Capital Reserve
(b) Revenue Reserve
(c) Profit & Loss A/c
(d) None of these
23.Amount of calls in Arrear is :
(a) Added to capital
(b) Deducted from share capital
(c) Shown on the assets side
(d) Shown an the equity and liability side
24.Balance of Forfeited Shares Account after reissue of forfeited shares is transferred to :
(a) Profit & Loss A/c
(b) Capital Reserve Account
(c) General Reserve Account
(d) None of these
25.Shares can be forfeited :
(a) For failure to attend meetings
(b) For non-payment of call money
(c) For failure to repay the loan to the Bank
(d) For which shares are pledged as a security
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26.Share Allotment Account is :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
27.As per Table F the maximum rate of interest on calls in advance paid is:
(a) 8% p.a.
(b) 12% p.a.
(c) 5 % p.a.
(d) None of these
28.Which account should be debited when shows an issued to promoters:

(a) Share Capital A/c
(b) Assets A/c
(c) Promoter’s A/c
(d) Goodwill A/c
29.A company is registered with a share capital of ₹ 1,00,000 Rs. divided into ₹ 10,000 shares of ₹ 10 each. Of these shares 9,990 shares are held by Rajeev and 10 Shares are held by Sanjay. In the eye of law it is treated as:
(a) Partnership
(b) Private Company
(c) Public Company
(d) Government Company
30.The subscribed share capital of Shri Ltd. is Rs.90,00,000 of Rs.100 each. There were no calls in arrear till the final call was made. The final call was paid on Rs.85,000 shares. The calls in arrear amounted to Rs.1,25,000. The final call per share
(A) 25
(B) 20
(C) 125
(D) 225
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31.The reserve which is created for a particular (specific) purpose and which is a charge against revenue is called:
(a) Capital Reserve
(b) General Reserve
(c) Secret Reserve
(d) Specific Reserve
32.Balance Sheet is a :
(a) Account
(b) Statement
(c) Both (a) and (b)
(d) All the above
33.Debit Balance of Profit & Loss Statement will be shown on:
(a) Assets Side of Balance Sheet
(b) Liabilities Side of Balance Sheet
(c) Under the head Reserve & Surplus
(d) Under the head Reserves and Surplus as a negative item
34.Preliminary Expenses are shown in the Balance Sheet under which head ?
(a) Fixed Assets
(b) Reserves and Surplus
(c) Loans & Advances
(d) None of these
35.Total Assets ₹ 8,10,000
Total Liabilities ₹ 2,60,000
Current Liabilities ₹ 40,000
Debt-equity ratio is:
(a) 0.05 : 1
(b) 0.4 : 1
(c) 2.5 : 1
(d) 4 : 1
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36.The gross profit ratio is the ratio of gross profit to :
(a) Net Cash Sales
(b) Net Credit Sales
(c) Closing Stock
(d) Net Total Sales
37.To know the return on investment, by capital employed we mean:
(a) Net Fixed Assets
(b) Current Asset-Current Liabilities
(c) Gross Block
(d) Fixed Assets + Current Assets-Current Liabilities

38.Cost of goods sold :
(a) Sales – Net profit
(b) Sales – Gross profit
(c) Purchases – Opening Stock
(d) None of the above
39.Current Ratio includes:
(a) Stock
(b) Debtors
(c) Cash
(d) All of these
40.Current Ratio =
(a) Current Assets/Current Liabilities
(b) Liquid Assets/Current Liabilities
(c) Liquid Assets/Current Assets
(d) Fixed Assets/Current Assets
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ANSWER KEY

1.B	11.D	21.D	31.D
2.B	12. B	22.A	32.B
3.D	13. B	23.B	33.D
4.A	14. A	24.B	34.D
5.B	15. D	25.B	35.C
6.B	16.D	26.A	36.D
7.B	17.A	27.B	37.D
8.B	18.A	28.D	38.B
9.B	19.D	29.B	39.C
10.A	20.A	30.A	40.A