MCQ Questions For Class 12 Accountancy

Students can refer to the below provided MCQ Questions for Class 12 Accountancy with solutions. We have provided chapter-wise multiple choice questions with answers for all chapters given in your Class 12 Accountancy book issued by CBSE, NCERT, and KVS. These objective questions with answers have been designed based on the latest syllabus and examination guidelines issued for the current academic year.

Accountancy Class 12 MCQ Questions with Answers

Please click on the chapter-wise links below free download in Pdf multiple-choice questions for Accountancy in standard 12. These questions are expected to be asked in the upcoming class 12th examinations. These MCQs will help you to get better marks in examinations. Our expert teachers have referred to the latest question paper patterns and have accordingly designed these important questions and answers based on NCERT books for Class 12 Accountancy issued for the current academic year.

Chapterwise MCQs with Answers for Class 12th Accountancy

MCQs for Class 12 Accountancy Part 1

Chapter 1 Accounting for Not-for-Profit Organisation

Chapter 2 Accounting for Partnership 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

MCQs for Class 12 Accountancy 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. In case partners have guaranteed profit to a partner and deficiency of profit. The deficiency happens it is borne by
a) All the partners in new profit sharing ratio
b) Remaining partners in the ratio in which they have given guarantee
c) All the partners in sacrificing ratio.
d) All the partners in old profit sharing ratio.

Question. A, B and C are partners sharing profits and losses in the ratio 6 : 3 : 3, they agreed to take D, as new partner with 1/8th Share of profits. The new profit sharing ratio will be:
a) 14 : 7 : 7 : 4
b) 1 : 1 : 1 : 1
c) 12 : 27 : 36 : 42
d) 12 : 36 : 27 : 42.

Question. In the event of firm’s business being taken over, the amount paid in excess of net assets Assets – Liabilities) is debited to
a) Profit and Loss Account
b) Capital Accounts
c) Reserve Account 
d) Goodwill Account.

Question. Goodwill is accounted in the books if
a) It is a Purchased Goodwill
b) It is a Self-Generated Goodwill
c) It is decided to be accounted by the Partners
d) Its amount is paid by the Gaining Partner

Question. Change in the relationship of existing partners which results coming to an end in agreement and a new agreement coming into effect is:
a) Revaluation of Partnership
b) Reconstitution of Partnership
c) Realisation of Partnership
d) Dissolution of Firm

Question. If Capitals are maintained on Fixed Capitals Basis, Undistributed profits, Profit and Loss Account, General Reserve etc. are transferred to:
a) Partner’s Fixed Capital A/c
b) Partner’s Current A/c
c) Revaluation A/c
d) Profit and Loss Adjustment A/c

Question. If Life Membership Fee of Rs. 5,000 wrongly treated as revenue receipt then effect of this error on surplus and closing balance of Capital Fund will be:
a) Capital Fund increased and Surplus increased by Rs. 5,000.
b) Capital Fund decreased and Surplus increased by Rs. 5,000.
c) No effect on Capital Fund but Surplus increased by Rs. 5,000.
d) Capital Fund decreased by Rs. 5,000 but no effect on Surplus.

Question. There are two partners in a firm P and Q. R is admitted into the firm for 1/3th share of profit with the guaranteed annual profit of Rs. 18,000. Firm’s profit for the year is Rs. 42,000. What amount of profit would be given to R as his share of profit by the firm?
a) Rs. 20,000
b) Rs. 25,000
c) Rs. 18,000 
d) Rs. 16,000

Question. Raja, Mohan, Roy are partners in a firm sharing profits and losses in the ratio of 4 : 3 :1. As per the terms of Partnership Deed on the death of any partner, Goodwill was to be valued at 50% of the net profits credited to that Partner’s Capital Account during the last three completed years before her death. Raja died on 28th February, 2019. The profits for the last five years were 2014 – Rs. 60,000; 2015 – Rs. 97,000; 2016 – Rs. 1,05,000; 2017 – Rs. 30,000 and 2018 – Rs. 84,000. On the date of Raja’s death. Calculate the amount of Raja’s share of Goodwill in the firm The new profitsharing ratio between Mohan and Roy will be equal.
a) Rs. 1,09,500
b) Rs. 27,375
c) Rs. 54,750
d) Rs. 73,000

Question. P, Q and R have been sharing profits in the ratio of 8 : 5 : 3.P retires. Q takes 3/16th share from P and R takes 5/16th share from P. New profit sharing ratio will be :
a) 1 : 1
b) 10 : 6
c) 9 : 7
d) 5 : 3

Question. Delhi Cricket Club gives the following information:
Opening Stadium Fund is Rs. 10,00,000, Donation for Stadium fund received during the year Rs. 5,00,000, Income from Stadium Fund Investment Rs. 1,00,000. Amount spend during the year on construction of stadium Rs. 6,00,000. Identify which of the following statement is correct in respect to preparation of Balance Sheet.
a) Rs. 6,00,000 is shown as an asset in the Balance Sheet.
b) Rs. 6,00,000 is shown as an asset in the Balance Sheet. Also Rs. 6,00,000 is transferred to the credit of Income and Expenditure Account.
c) Rs. 6,00,000 is shown as an asset in the Balance Sheet and also Rs. 6,00,000 is transferred from Stadium Fund to General Fund in the Balance Sheet.
d) Rs. 6,00,000 is shown as an expense in the Income and Expenditure Account and Rs. 6,00,000 is transferred to the credit of Income and Expenditure Account from Stadium Fund.

Question. A and B are sharing profits and losses in the ratio of 3 : 2. They admitted C as a partner for 1/3rd share in the profits of the firm. The new profit sharing ratio will be:
a) 6 : 4 : 5
b) 3 : 2 : 2
c) 3 : 2 : 5
d) 5 : 2 : 3

Question. Current Accounts of the partners are opened:-
a) When capital are fluctuating
b) When capital are fixed
c) When fresh capital is introduced
d) Whether Capitals are fluctuating 

Question. A and B are sharing profits and losses in the ratio of 3 : 2. They admit C as partner for 1/3rd share in the profits. He takes this share 3/5th from A and 2/5th from B. New profit sharing ratio will be:
a) 5 : 6 : 3
b) 2 : 4 : 6
c) 6 : 4 : 5
d) 18 : 24 : 38

Question. Debentures issued as collateral security will be debited to:-
a) Debenture Application and Allotment Account
b) Debenture Suspense Account
c) Bank Account
d) Bank Loan Account

Question. What is the nature of ‘Premium on Redemption of Debentures Account’?
a) Real
b) Nominal
c) Personal
d) Expense

Question. Which of the following capitals is shown in the company’s Balance Sheet:-
a) Authorised Capital
b) Issued Capital
c) Subscribed and Fully Paid Up
d) Reserve capital

Question. When the shares are issued for consideration other than cash which account will be credited:-
a) Securities Premium Account
b) Capital Reserve Account
c) Vendor’s Account
d) Share Capital Account

Question. Nature of Realisation Account is:-
a) Nominal Account
b) Real Account
c) Personal Account
d) Asset Account

Question. Section 48 of the Indian Partnership Act, 1932 deals with :-
a) Payment of firms debts and private debts
b) Settlement of account when the firm is dissolved
c) Dissolution of the firm
d) Admission of a partner

Fill in the Blank :

Question. Goodwill brought by the incoming partner is distributed among the old partners in their ______.

Question. The statement that shows percentage of items of profitability of a firm of the same period to a common base is called ______.

Question. 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 ______.

Question. Token payment made to a person, who voluntarily undertakes a service which would normally command a fee is __________.

Question. The ratio in which one or more partners of the firm forego i.e., sacrifice their share of profits in favour of one or more partners of the firm is called ___________.

Question. Surplus or deficit of the Income and Expenditure Account is transferred to the ____ .

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

Question. Raj is admitted in a firm for 1/4th share in the profits for which he brings Rs.30,000 as goodwill. It will be credited to the Old Partners Capital Accounts in their ______.

Question. In preparing Common size Balance Sheet, Common base taken is _____.

Question. Goodwill is valued with a purpose to compensate ________ partners) by the_________ partners.

Question. Life Membership Fee received by a NPO is a ________.

Question. If profit-sharing ratio changes, Investments Fluctuation Reserve is _______ by the amount of fall in value of investments.

Question. Partners may or may not have written ________.

Question. Goodwill may be recorded in the books of account only when consideration is paid in ___ or _____.

Question. Analysis and interpretation are ________ to each other.

Question. Securities Premium Reserve Account is shown on ____ side of the Balance Sheet under ____.

Question. When the called up amount is not paid by the shareholder then it may be transferred to ____ account.

Question. A partnership firm cannot have more than _____ partners and is prescribed in the ______.

Question. The amount brought by an incoming partner besides the capital at the time of his admission is __________.

True / False :

Question. Under NPO, sale of old newspaper is shown as an income.

Question. Sudhir and Bhuwan are partners in a firm sharing profits in the ratio of 3:2. They decided to share future profit equally. On the date of change in profit sharing ratio, Profit and Loss Account has a debit balance of Rs. 50,000. It will be adjusted in Partners Capital Accounts by passing the following Journal Entry:
Sudhir’s Capital A/c …Dr. 30,000
Bhuwan’s Capital A/c …Dr. 20,000
To Profit and Loss A/c 50,000.

Question. Partnership is the relation between persons who have agreed to share profits of a business carried on by all or any of them acting for all.

Question. The claim of Workmen Compensation is less than Workmen Compensation Reserve at the time of admission of a partner. The difference is Workmen Compensation Reserve and claim will be transferred to Capital Accounts of the old partners in their old profit sharing ratio.

Question. Two factors affecting goodwill are efficient management, repeated customers leading to higher sales and profit thus; it leads to higher value of goodwill.

Question. At the time of change in profit sharing ratio the combined shares of all partners remains unchanged.

Question. Gaining partner always compensates Sacrificing Partner.

Question. Income and Expenditure Account shows transactions of revenue nature for the accounting year.

Question. All partners consent is required to admit a new partner.

Question. Surplus or Deficit of a Not-For-Profit Organisation is added to or subtracted from Accumulated Fund.

Question. In the event of change in Profit-sharing ratio, General Reserve existing in the Balance Sheet is transferred to Capital Accounts of partners in their Old Profit Sharing Ratio. 

Question. P, Q and R are partners sharing profits in the ratio of 5 : 4 : 3. Q retires and P and R decide to share future profits equally. Gaining Raito will be 1 : 3.

Question. Weighted Average Method of calculating goodwill is useful when Profits are similar in all the years

Question. Relationship between the partners is of Senior – subordinate.

Question. A NPO has a ‘Match Fund’ of Rs. 1,00,000 and Match Expenses of Rs. 40,000, Match Fund and Match Expenses will be shown in Liabilities side of Balance Sheet, expenses being deducted from fund.

Question. As per Accounting Standard – 26, Both purchased and self-generated goodwill are accounted in the books of accounts.

Question. A and B were partners in a firm sharing profits or losses in the ratio of 3 : 5. With effect from 1st April, 2019, they decided to share profits or losses equally. Due to the change in profit sharing ratio, A’s sacrifice will be 1/8.

Question. Admission of a Partner means Reconstitution of a firm as existing agreement comes to an end and a new agreement comes into effect because of the Admission of a Partner.

Question. An advance receipt of subscriptions from members of the Not-For-Profit Organization is a Liability.

Question. In the absence of provision in the partnership deed, interest on loans given by the partners is allowed @ 6%.

Our team of teachers has developed these multiple-choice questions with answers for Standard 12th Accountancy for all important topics from which questions are going to be asked in the exams. We have provided answers to all the MCQs so that you can check your level of understanding of the subject. We have provided all MCQs for Class 12 Accountancy in Pdf format so that you can download them easily.

There will be a lot of MCQ-based questions asked in this year’s Grade 12 Accountancy exam. Students of Class 12 should carefully understand all the topics given in each chapter and then attempt the questions given for each chapter above. Our faculty have used the latest NCERT Book for Class 12 Accountancy issued for the current academic year for designing the MCQ questions.

Benefits of MCQ Questions for Class 12 Accountancy with Answers

a) This year there will be a lot of MCQ questions coming in the upcoming Accountancy examination. In order to improve your marks, you should learn all the important questions and answers provided by us.

b) Multiple Choice Questions for Accountancy Class 12 have been developed by our expert faculty based on the latest guidelines relating to question paper patterns issued by CBSE.

c) Daily practice of all MCQ questions is required to score better marks in Grade 12th Accountancy exams.

d) We have provided easy-to-download and print Pdfs of MCQ questions for Accountancy Class 12.

Printable MCQs CBSE Class 12 Accountancy is designed by our expert faculty and we have also provided the best study material as per CBSE NCERT standards.