ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR

OBJECTIVE TYPE QUESTIONS SEPT 2021 TO JULY 2025

STD: XII COMMERCE
SUB.: BOOK KEEPING AND ACCOUNTANCY (50)
SEPT. 2021
Q.1. Attempt the following sub-questions: (20)
(A) Select the correct options and rewrite the sentences: (5)
(1) A statement showing financial position of the business is called as --
--------
(a) Trial balance (b) Capital (c) Balance Sheet (d) Trading Account
Ans. A statement showing financial position of the business is called as
Balance
Sheet.
(2) The set of programme that directs the computer to perform desired
task
is ------------
(a) Software (b) Programme (c) Application (d) Hardware
Ans. The set of programme that directs the computer to perform desired
task
is Software.
(3) The information supplied by financial statements are -- in nature.
(a) Universal (b) Complete (c) Historical (d) None of these
Ans. The information supplied by financial statements are Historical in
nature.
(4) The balance on the capital of retired partner is transferred to his
-------------------------------------------------------------------------- A/c.
(a) Executor’s Loan (b) Loan (c) Wife’s Loan (d) Son’s Loan
Ans. The balance on the capital of retired partner is transferred to his
Loan A/c.
(5) The closing balance of Receipts and Payments Account usually
represents
- ------- balance.
(a) Closing Stock (b) Cash and Bank (c) Surplus (d) Deficit
Ans. The closing balance of Receipts and Payments Account usually
represents
Cash/Bank balance.
(B) Write a word/term/phrase which can substitute each of the
following
statements: (5)
(1) The shares on which dividend is not fixed.
Ans. Equity Shares/Ordinary Shares
(2) Amount which is not recoverable from Drawee on account of
insolvency.
Ans. Bad debts
(3) Liability likely to arise in future on happening of some events.
Ans. Contingent Liabilities
(4) Ratio by which surviving partners are benefited on death of the
partner.
Ans. Gain Ratio/Benefit Ratio
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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
(5) Account opened for revaluation of assets and liabilities.
Ans. Revaluation Account/Profit and Loss Adjustment Account
(C) Find out odd one: (5)
(1) Decrease in Furniture, Patent written off, Increase in Bills Payable,
R.D.D. written off.
Ans. R.D.D. written off
(2) Subscription received, Sundry receipts, Interest received, Audit fees.
Ans. Audit Fees
(3) Dock Charges, Printing and Stationery, Custom Duty, Wages and
Salary.
Ans. Printing and Stationery
(4) Electricity Bill, Trade Bill, Inland Bill, Foreign Bill.
Ans. Electricity bill
(5) Creditors, Land and Building, General reserve, Capital.
Ans. Land and Building
(D) Calculate the following: (5)
(1) When depreciation is 7,500 and closing balance of Library Books
is
92,500. Calculate the opening balance of Library Books.
Ans. 1,00,000
(2) A, B, and C are partners sharing profits in proportion of ½ , 1/3
and 1/6. If
A retires, what will be the new profit sharing ratio?
Ans. 2:1
(3) 12% p.a. interest on Bank Loan 80,000 for 6 months. Calculate
interest.
Ans. 4,800
(4) Insolvent partners capital A/c debit side total is 1,00,000 and
credit side
total is 60,000. Calculate deficiency.
Ans. 40,000
(5) Insurance premium is paid for the year ending 30th September,
2020
amounted to 1,500. Calculate prepaid insurance assuming that
year
ending is 31st March, 2020.
Ans. 750

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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
MARCH 2022
Q.1. Attempt all of the following sub-questions: (20)
(A) Select the correct options and rewrite the sentences: (5)
(1) To find out the net profit or net loss of the business -- A/c is
prepared.
(a) Trading (b) Capital (c) Current (d) Profit and Loss
Ans. To find out the net profit or net loss of the business Profit and Loss
A/c
is prepared.
(2) From financial statement analysis the creditors are specially
interested to
know --------------
(a) Liquidity (b) Profits (c) Sale (d) Share Capital
Ans. From financial statement analysis the creditors are specially
interested to
know Liquidity.
(3) Death is a compulsory ------------
(a) dissolution (b) admission (c) retirement (d) winding up
Ans. Death is a compulsory retirement.
(4) The due date of the bill drawn for 2 months on 23rd November,
2019 will
be ----------------
(a) 23rd Jan. 2020 (b) 25th Jan. 2019 (c) 26th Jan. 2019 (d) 25th
Jan.2020
Ans. The due date of the bill drawn for 2 months on 23rd November,
2019 will
be 25th Jan. 2020.
(5) Decrease in the value of assets should be ---to Profit and Loss
Adjustment Account.
(a) debited (b) credited (c) added (d) none of these
Ans. Decrease in the value of assets should be debited to Profit and Loss
Adjustment Account.
(B) Write a word/term/phrase as a substitute for each of the
following
statements: (5)
(1) Debit balance of Trading Account.
Ans. Gross Loss
(2) Expenses incurred on dissolution of firm.
Ans. Dissolution/Realisation Account
(3) Old Ratio less New Ratio.
Ans. Sacrifice Ratio
(4) Officer appointed by Govt. for noting of dishonour of bill.
Ans. Notary Public
(5) Donation received for a specific purpose.
Ans. Specific Donation/Special Donation/Capital Receipts
(C) Answer the following questions only in ‘one ’ sentence each: (5)
(1) What is Legacy?
Ans. Any asset, property or amount of cash which ‘Not for Profit’ concern

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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
Receives as per the provisions made in the will of the donor after his
death
is called Legacy.
(2) What is CAS?
Ans. CAS means Computerized Accounting System which helps
business firms to implement accounting process and make it user
friendly with automation.
(3) Who is called Insolvent Person?
Ans. A person whose liabilities are more than the assets is an insolvent
person.
(4) What is Reserve Capital?
Ans. Reserve Capital is that part of the subscribed capital which is
reserved to be
called up only at the time of winding up of liquidation of the
company by a
special resolution.
(5) What is Revaluation Account?
Ans. An account opened and operated by any partnership firm for
recording
changes in the value of assets and liabilities to ascertain profit or
Loss made on revaluation of assets and liabilities is called
Revaluation
Account.
(D) Complete the sentences: (5)
(1) Partnership deed is an ------ of partnership.
Ans. Partnership deed is an agreement/article of partnership.
(2) Aurangabad University prepares ----- Account instead of Profit and
Loss Account.
Ans. Aurangabad University prepares Income and Expenditure Account
instead
of Profit and Loss Account.
(3) Return outward are deducted from ----------------
Ans. Return outward are deducted from Purchases.
(4) New Ratio (-) ----------- = Gain Ratio.
Ans. New Ratio (-) Old Ratio = Gain Ratio.
(5) Cash receipts which are recurring in nature are called as - receipts.
Ans. Cash receipts which are recurring in nature are called as revenue
receipts.

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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
JULY 2022
Q.1. Attempt all of the following sub-questions: (20)
(A) Do you Agree or Disagree with the following statements: (5)
(1) Financial statement includes only Balance Sheet.
Ans. Disagree
(2) The person in whose favour the bill is endorsed is known as
endorsee.
Ans. Agree
(3) Retiring partner is not entitled to share in General Reserve and
Accumlated
profit.
Ans. Disagree
(4) Income and Expenditure Account is Real Account.
Ans. Disagree
(5) Partnership firm is a Trading concern.
Ans. Agree
(B) Select the most appropriate alternative from those given below
options and rewrite the sentences: (5)
(1) A proportion in which the continuing partners get the share of
retiring
partner is known as ----------------
(a) Old Ratio (b) New Ratio (c) Gain Ratio (d) Capital Ratio
Ans. A proportion in which the continuing partners get the share of
retiring
partner is known as Gain Ratio.
(2) Partnership is completely dissolved when partners of the firm
become------
(a) solvent (b) insolvent (c) creditors (d) debtors
Ans. Partnership is completely dissolved when partners of the firm
become
insolvent.
(3) The person on whom the bill is drawn is called as --------------
(a) Drawee (b) Payee (c) Drawer (d) None of the above
Ans. The person on whom the bill is drawn is called as Drawee.
(4) Liability of partners is a partnership business is ---------------
(a) limited (b) unlimited (c) limited and unlimited (d) none of the
above
Ans. Liability of partners is a partnership business is unlimited.
(5) Ajay and Vijay are two partners sharing profits and losses in the
ratio of 3:2.
They decided to admit Sanjay for 1/5th share, the new profit
sharing ratio
will be -----------------
(a) 12:8:5 (b) 4:3:1 (c) 12:8:1 (d) 12:3:1
Ans. Ajay and Vijay are two partners sharing profits and losses in the
ratio of 3:2.
They decided to admit Sanjay for 1/5th share, the new profit
sharing ratio
will be 12:8:5.
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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
(C) Find the odd one: (5)
(1) Reserve Fund, Bank Loan, Building, Capital.
Ans. Building
(2) Admission fees received, Sundry income, Specific donations for
Building,
Sale of old news papers.
Ans. Specific donation for Building
(3) Postage, Stationery, Dividend received, Advertisement.
Ans. Dividend received
(4) Bank overdraft, Library Books, Stock of Drugs, Equipments.
Ans. Bank Overdraft
(5) Realisation Account, Partner’s Capital Account, Balance Sheet,
Bank
Account.
Ans. Balance Sheet
(D) Complete the sentences: (5)
(1) Excess of income over expenditure is termed as ----------------
Ans. Excess of income over expenditure is termed as Surplus.
(2) - -------- shareholders are the real owners of the company.
Ans. Equity/Ordinary shareholders are the real owners of the company.
(3) Deceased partner’s Executor’s Loan Account is shown on the --------
--------
Side of the Balance Sheet.
Ans. Deceased partner’s Executor’s Loan Account is shown on the
Liabllity
Side of the Balance Sheet.
(4) - ---------- is the set of programs that direct the computer to perform
the
desired task.
Ans. Software is the set of programs that direct the computer to perform
the
desired task.
(5) Revaluation Account is also known as -------Account.
Ans. Revaluation Account is also known as Profit and Loss Adjustment
Account.

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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
MARCH 2023
Q.1. All objective questions are compulsory: (20)
(A) Write the word/phrase/term which can substitute each of the (5)
following statements:
(1) Credit balance of profit and loss account.
Ans. Net profit
(2) Donation received for a specific purpose.
Ans. Specific Donation/Capital receipt/Special Donation
(3) The ratio which is obtained by deducting old ratio from new ratio.
Ans. Gain Ratio/Benefit Ratio
(4) Expenses incurred on dissolution of firm.
Ans. Dissolution/Realisation Expenses
(5) Tally software is classified into this category.
Ans. Mercantile
(B) Calculate the following: (5)
(1) Calculate 12.5% p.a. depreciation of Furniture
(a) On 2,20,000 for 1 year
(b) On 10,000 for 6 months
Ans. (a) 27,500
(b) 625
(2) Library Books ------------ Less 10% depreciation 5,000 =
45,000.
Ans. 50,000
(3) Apte and Bhate are sharing profits and losses in the ratio of 3:2, if
Kate is
admitted as ¼ share then calculate new profit sharing ratio.
Ans. New Profit Sharing Ratio 9:6:5
(4) Ganesh draws a bill for 40,000 on 15th January, 2020 for 2
months. He
discounted the bill with Bank of India @ 15% p.a. on the same day.
Calculate the amount of discount.
Ans. 1,000
(5) From the following information, calculate Current Assets:
Debtors 60,000, Creditors 30,000, Bills Payable 20,000,
Stock 30,000, Loose Tools 10,000, Bank Overdraft 10,000.
Ans. 1,00,000
(C) Do you AGREE/DISAGREE with the following statements: (5)
(1) Partnership is an association of two or more persons.
Ans. Agree
(2) Not for profit concerns do not prepare Balance Sheet.
Ans. Disagree
(3) Retiring partner is not entitled to share in General Reserve and
Accumlated
Profit.
Ans. Disagree
(4) Dissolution takes place when the relation among the partners
comes to an

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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
end.
Ans. Agree
(5) The Authorised Capital is also known as Nominal Capital.
Ans. Agree
(D) Select the most appropriate alternatives form the following and
Rewrite the sentences: (5)
(1) Maximum number of partners in a firm are----- according to the
Companies Act. 2013.
(a) 10 (b) 25 (c) 20 (d) 50
Ans. Maximum number of partners in a firm are 50 according to the
Companies Act. 2013.
(2) Income and Expenditure Account is a ----------- Account.
(a) Capital (b) Real (c) Personal (d) Nominal
Ans. Income and Expenditure Account is a Nominal Account.
(3) If asset is taken over by the partner ----- Account is debited.
(a) Revaluation (b) Capital (c) Asset (d) Balance Sheet
Ans. If asset is taken over by the partner Capital Account is debited.
(4) Death is compulsory ----------------
(a) dissolution (b) admission (c) retirement (d) winding up
Ans. Death is compulsory retirement.
(5) The person on whom a bill is drawn is called a -----------------
(a) drawee (b) payee (c) drawer (d) acceptor
Ans. The person on whom a bill is drawn is called a drawee.

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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
JULY 2023
Q.1. All objective questions are compulsory: (20)
(A) Write the word/phrase/term which can substitute each of the (5)
following statements:
(1) Debit balance of Trading Account.
Ans. Gross Loss
(2) The receipts which are not recurring in nature.
Ans. Capital Receipts
(3) Capital Employed x N.R.R./100 =
Ans. Normal Profit
(4) Fees charged by notary public for getting the fact of dishonour
noted.
Ans. Noting Charges
(5) The person who purchases the share of the company.
Ans. Shareholder
(B) Complete the following sentences: (5)
(1) Return outwards are deducted from ------------
Ans. Return outwards are deducted from Purchases.
(2) Receipts and Payments Account falls under the category of
-----------------------------------------------------------------------Account
.
Ans. Receipts and Payments Account falls under the category of Real
Account.
(3) Revaluation Account is also known as -------- Account.
Ans. Revaluation Account is also known as Profit and Loss Adjustment
Account.
(4) Making payment of the bill before the due date of maturity is known
as -----
Ans. Making payment of the bill before the due date of maturity is known
as
Retirement of bill.
(5) Benefit Ratio = New ratio -
Ans. Benefit Ratio = New ratio – Old Ratio
(C) Answer in one sentence only: (5)
(1) When is partner’s current account opened?
Ans. When fixed capital method is adopted by the firm, partners current
account
Is opened.
(2) What is Surplus?
Ans. Surplus is an excess of income over expenditure of an Income and
Expenditure Account of ‘Not for Profit’ concern.
(3) What is sacrifice ratio?
Ans. A ratio which is surrendered or given up by the old partners in
favour of a
newly admitted partner is called Sacrifice ratio.
(4) Who is called insolvent person?
Ans. Whose capital shows debit balance and who is not a position to
meet his
Capital deficiency even from his private property is called insolvent
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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
person.
(5) What is Computerized Accounting System?
Ans. CAS means Computerized Accounting System which helps business
firms to
Implement accounting process and makes it user friendly with
automation.
(D) Select the most appropriate alternatives form the following and
rewrite the sentences: (5)
(1) The Indian Partnership Act is in force since --------------
(a) 1932 (b) 1881 (c) 1956 (d) 1984
Ans. The Indian Partnership Act is in force since 1932.
(2) Not for profit organization is also called ---------- organization.
(a) Service (b) Trading (c) Profit making (d) Commercial
Ans. Not for profit organization is also called service organization.
(3) Rishi, Ratna, and Ruchira are sharing profits and losses ½, 3/10,
and 1/5 ,
If Rishi retires then their new ratio will be ----------------
(a) 5:2 (b) 3:2 (c) 5:3 (d) 2:5
Ans. Rishi, Ratna, and Ruchira are sharing profits and losses ½, 3/10,
and 1/5 ,
If Rishi retires then their new ratio will be 3:2.
(4) Assets and liabilities are transferred to Realisation Account at their
----------
Values.
(a) market (b) purchase (c) sales (d) book
Ans. Assets and liabilities are transferred to Realisation Account at their
book
Values.
(5) The common size statement requires -----------
(a) Common base (b) Journal entry (c) Cash flow
(d) Current ratio.
Ans. The common size statement requires Common base.

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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
MARCH 2024
Q.1. Attempt all of the following sub-questions: (20)
(A) Find the odd one: (5)
(1) Subscribed Capital, Called up Capital, Paid up Capital, Equity
Shares.
Ans. Equity Shares
(2) Building, Bills Payable, Furniture, Machinery.
Ans. Bills Payable
(3) Retaining of Bill, Noting of Bill, Discounting of Bill, Endorsing of
Bill.
Ans. Noting of Bill
(4) Audit Fees, Insurance, Medical Expenses, Sundry Receipts.
Ans. Sundry Receipts
(5) General Reserve, Creditors, Investments, Capital.
Ans. Investments
(B) Do you agree or disagree with the following statements: (5)
(1) ‘Not for profit’ concerns do not prepare Balance Sheet.
Ans. Disagree
(2) Current Account always shows a debit balance.
Ans. Disagree
(3) A Bill of Exchange is a conditional order.
Ans. Disagree
(4) Retiring partner is entitled to share in Reserve Fund and
Accumlated Profit.
Ans. Agree
(5) On dissolution, Cash or Bank Account is closed automatically.
Ans. Agree
(C) Select the most appropriate alternatives form those given below
and
rewrite the sentences: (5)
(1) In case of dissolution, assets and liabilities are transferred to
---------------------------------------------------------------------- Account
.
(a) Bank (b) Partner’s Capital (c) Realisation
(d) Partner’s Current
Ans. In case of dissolution, assets and liabilities are transferred to
Realisation
Account.
(2) In the absence of an agreement, interest on loan advance by the
partner to
the firm is allowed at the rate of --------
(a) 5% (b) 6% (c) 10% (d) 9%
Ans. In the absence of an agreement, interest on loan advance by the
partner to
the firm is allowed at the rate of 6%.
(3) If an asset is taken over by the partner --- account is debited.
(a) Revaluation (b) Capital (c) Asset (d) Balance Sheet
Ans. If an asset is taken over by the partner Capital account is debited.
(4) The balance of Capital Account of a retired partner is transferred to
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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
his -----
Account, if it is not paid.
(a) Loan (b) Personal (c) Current (d) Son’s
Ans. The balance of Capital Account of a retired partner is transferred to
his
Loan Account, if it is not paid.
(5) Income and Expenditure Account is a ----- Account.
(a) Capital (b) Real (c) Personal (d) Nominal
Ans. Income and Expenditure Account is a Nominal Account.
(D) Write a word/term/phrase as a substitute for each of the
following
statements: (5)
(1) Tally software is classified into this category.
Ans. Mercantile
(2) Partnership Agreement in written form.
Ans. Partnership Deed
(3) An asset which can be converted into cash immediately.
Ans. Liquid Asset/Quick Asset/Acid Asset
(4) A person who represents the deceased partner.
Ans. Legal Heir or Executor or Nominee
(5) The debit balance of Income and Expenditure Account.
Ans. Deficit

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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
JULY 2024
Q.1. All objective questions are compulsory: (20)
(A) Write if you agree or disagree with the following statements: (5)
(1) Legal software is fully functional software without any restrictions.
Ans. Agree
(2) Rebate or discount given on retiring a bill is an income to the
drawee.
Ans. Agree
(3) Realisation loss is not transferred to insolvent partner’s capital
account.
Ans. Disagree
(4) ‘Not for profit’ concerns have profit motive.
Ans. Disagree
(5) ‘The Indian Partnership Act’ was enforced in the year 1945.
Ans. Disagree
(B) Select the correct options and rewrite the statements: (5)
(1) The balance on the capital account of a partner on his death is
transferred
to --------- account.
(a) Relatives (b) Legal heir’s loan/Executor’s loan (c) Partner’s
capital
(d) Partner’s loan
Ans. The balance on the capital account of a partner on his death is
transferred
to Legal heir’s loan/Executor’s loan account.
(2) Decrease in the value of assets should be --- to Profit and Loss
Adjustment Account.
(a) debited (b) credited (c) added (d) equal
Ans. Decrease in the value of assets should be debited to Profit and Loss
Adjustment Account.
(3) Excess of proportionate capital over actual capital represents --------
---
(a) Equal capital (b) Surplus capital (c) Deficit capital (d) Gain
Ans. Excess of proportionate capital over actual capital represents
Deficit
Capital.
(4) Subscription received in advance during the current year is ----------
--
(a) an income (b) an expense (c) an asset (d) a liability
Ans. Subscription received in advance during the current year is a
liability.
(5) When there is no Partnership Agreement between partners, the
division of
profits takes place in -----ratio.
(a) equal (b) capital (c) initial contribution
(d) experience and tenure of partners
Ans. When there is no Partnership Agreement between partners, the
division of
profits takes place in equal ratio.
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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
(C) Write a word/term/phrase as a substitute for each of the
following
statements: (5)
(1) An asset which can be converted into cash immediately.
Ans. Liquid Asset/Quick Asset
(2) Debit balance of Realisation Account.
Ans. Loss on Realisation
(3) The ratio in which general reserve is distributed to the old partners.
Ans. Old Ratio
(4) Excess of total assets over total liabilities of a non-for-profit
concern.
Ans. Capital Fund
(5) The account in which selling expenses of business are recorded in
final
account.
Ans. Profit and Loss Account
(D) Find the odd one: (5)
(1) At premium, At discount, At par, Brokerage.
Ans. Brokerage
(2) Notary Public, Drawer, Drawee, Payee.
Ans. Notary Public
(3) Increase in Building, Increase in Machinery, Decrease in Furniture,
Increase
in Bills Receivable.
Ans. Decrease in Furniture
(4) Surplus, Deficit, Net profit, Capital fund.
Ans. Net Profit
(5) Carriage inward, Salary, Royalty, Import Duty.
Ans. Salary

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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
MARCH 2025
Q.1. All objective questions are compulsory: (20)
(A) Select the correct options and rewrite the statements: (5)
(1) A------------is an tangible asset.
(a) Goodwill (b) Stock (c) Cash (d) Furniture
Ans. A Goodwill is an tangible asset.
(2) Excess of income over expenditure in ‘Not for Profit Concern’ is
termed
as -----------------
(a) Deficit (b) Profit (c) Surplus (d) Loss
Ans. Excess of income over expenditure in ‘Not for Profit Concern’ is
termed
as Surplus.
(3) Decrease in the value of assets should be ---to Profit and Loss
Adjustment account.
(a) debited (b) credited (c) added (d) equal
Ans. Decrease in the value of assets should be debited to Profit and Loss
Adjustment account.
(4) Dissolution Expenses are credited to ------ account.
(a) Realisation (b) Cash/Bank (c) Capital (d) Loan
Ans. Dissolution Expenses are credited to Cash/Bank account.
(5) Notary Public is a ------------------
(a) Government officer (b) Drawer (c) Payee (d) Endorsee
Ans. Notary Public is a Government officer.
(B) Complete the sentences: (5)
(1) Trading Account is prepared on the basis of -- expenses.
Ans. Trading Account is prepared on the basis of direct expenses.
(2) Income and Expenditure Account is a -------------
Ans. Income and Expenditure Account is a Nominal Account.
(3) Decreased partner’s executor’s account is shown on the side of
Balance sheet.
Ans. Decreased partner’s executor’s account is shown on the liability
side of
Balance sheet.
(4) Fixed deposit account comes under ------- group.
Ans. Fixed deposit account comes under investment group.
(5) If an asset is taken over by the partner ------account is debited.
Ans. If an asset is taken over by the partner Partner’s Capital account is
debited.
(C) Find the odd one: (5)
(1) Wages account, Salary account, Royalty account, Import duty
account.
Ans. Salary account
(2) Machinery account, Furniture account, Computer account, Rent
account.
Ans. Rent account
(3) General reserve account, Creditors account,
Machinery account,
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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
Capital account.
Ans. Machinery account
(4) Notary public, Drawer, Drawee, Payee.
Ans. Notary public
(5) At par, At premium, At discount, At loan.
Ans. At loan
(D) Do you agree or disagree with the following statements: (5)
(1) Partnership firm is a trading concern.
Ans. Agree
(2) ‘Not for profit concerns’ do not have profit motive.
Ans. Agree
(3) Retiring partner is called an outgoing partner.
Ans. Agree
(4) Gain ratio is calculated at the time of admission of new partner.
Ans. Disagree
(5) Financial statement includes only balance sheet.
Ans. Disagree

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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
JULY 2025
Q.1. All objective questions are compulsory: (20)
(A) Select the most appropriate alternatives from the following and
rewrite the sentences: (5)
(1) In tally, Fixed Deposit Account comes under --- group.
(a) Investments (b) Current Liabilities (c) Bank Account
(d) Current Assets
Ans. In tally, Fixed Deposit Account comes under Investments group.
(2) Before acceptance the bill is called a/an --------------
(a) order (b) request (c) draft (d) instrument
Ans. Before acceptance the bill is called a/an draft.
(3) If asset is taken over by the partner, ------ account is debited.
(a) revaluation (b) capital (c) asset (d) balance sheet
Ans. If asset is taken over by the partner, capital account is debited.
(4) Donation for building fund is ---------
(a) revenue receipt (b) capital receipt (c) capital expenditure
(d) revenue expenditure
Ans. Donation for building fund is capital receipt.
(5) The Indian Partnership Act is enforced since ----------
(a) 1932 (b) 1881 (c) 1956 (d) 1984
Ans. The Indian Partnership Act is enforced since 1932.
(B) Write a word/term/phrase which can substitute each of the
following
Sentences: (5)
(1) Issue of shares at its face value.
Ans. Issue at par
(2) Money value of business reputation earned by the firm over a
number of
years.
Ans. Goodwill
(3) Capital employed x NRR/100 =
Ans. Normal Profit
(4) The receipts which are recurring in nature.
Ans. Revenue Receipts
(5) Under this method, capital balances of partners remain constant.
Ans. Fixed Capital Method
(C) Answer in one sentence only: (5)
(1) To which account profit is to be transferred up to the date of
death of a
Partner?
Ans. Profit of deceased partner, up to his death is transferred to Profit
and Loss
Suspense Account .
(2) How many days of grace are allowed to honour a bill?
Ans. Three extra days of grace are allowed to honour a bill.
(3) Who should bear the capital deficiency of insolvent partner?
Ans. The capital deficiency of insolvent partner should be borne by the
solvent
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 ACCOUNTANCY COMMERCE ACADEMY , JAYSINGPUR
Partners.
(4) What is Entrance Fees?
Ans. Entrance fees are the fees paid by the persons’ who intend to
become a member of the organization/concern.
(5) What do you mean by pre-received income?
Ans. Income which is received by the partnership firm before it is due is
called
Pre-received income.
(D) Do you agree or disagree with the following statements: (5)
(1) On dissolution, cash/bank account is closed automatically.
Ans. Agree
(2) Financial statement includes only Balance Sheet.
Ans. Disagree
(3) On retirement of a partner, sacrifice ratio is considered.
Ans. Disagree
(4) Receipts and Payments Account is a Real Account.
Ans. Agree
(5) Current Account always shows debit balance.
Ans. Disagree

PROF. SHRI. PRAPHUL V. UPADHYE

[Link]., (Adv. A/[Link].) [Link]., (Adv. Costing) [Link]. (Education Technology)
M.B.A. (Finance & Marketing), G.D.C.& A.,

Contact No : 9423271009 9890347007

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