COPYRIGHT SBPD PUBLIC AT IONS ACCOUNTANCY OBJECTIVE. Class XII. Thoroughly Revised Edition

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2 OBJECTIVE ACCOUNTANCY Class XII Dr. S. K. Singh M. Com., Ph. D. Recipient of Rashtriya Gaurav Award, Asian Admirable Achiever & included in Asia/Pacific Who's who Thoroughly Revised Edition Code : 9672 ISBN : Price : ` 50/-

3 PD P U CO BL PY ICA RI TI GH ON T S Based on Revised Examination Pattern and Question Paper Pattern, 2015 BIHAR SCHOOL EXAMINATION BOARD (SENIOR SECONDARY), PATNA MARKING SCHEME First Part Objective Questions No. of Questions Type of Questions Marks 01 to 40 Multiple Choice Questions 40 1 = 40 Total = 40 Total Marks = 40 2nd Part Non-Objective Questions No. of Questions Type of Questions Marks 01 to 10 Short Answer Type Questions 10 3 = to 15 Long Answer Type Questions 5 6 = 30 SB Total = 15 Total Marks = 60

4 v/;k; i`"b&la[;k 1.1. Accounting for Not-for-Profit Organisations Accounting for Partnership Firms Fundamentals Reconstitution of Partnership Change in Profit Sharing Ratio Among the 7 10 Existing Partners Contents 3. Goodwill : Meaning, Nature, Factors Affecting and Methods of Valuation Reconstitution of Partnership : Admission of a Partner Reconstitution of Partnership Retirement of a Partner Reconstitution of Partnership Death of a Partner Dissolution of a Partnership Firm Issue of Shares Forfeiture and Re-issue of Shares Issue of Debentures Redemption of Debentures Financial Statements of a Company: Balance Sheet Financial (Statement) Analysis Tools of Financial Analysis : Comparative Statements Accounting Ratios Cash Flow Statement Latest Model Paper 1 14 OMR Sheet 1 2 Board Examination Paper 1 3

5 The reading of all good books is like a conversation with the finest man. Accountancy : Dr. S. K. Singh Prob. & Sol. in Accountancy : Dr. S. K. Singh Project Work in Accountancy : m ferk : Entrepreneurship : izsfdvdy m ferk : MkW- flag,oa xqirk O;kolkf;d v/;;u : MkW- flag,oa xqirk O;kolkf;d v/;;u : MkW- vkj- ;w- flag Business Studies : Project Work in Business Studies : vfkz'kkl= : MkW- vuqie vxzoky Economics : Dr. Singh & Gupta MkW- flag,oa xqirk Dr. Singh & Gupta Dr. Singh & Gupta Dr. Sharma & Gupta Dr. Anupam Agrawal Prob. & Sol. in Economics : Dr. Anupam Agrawal English Edition & Solution of this book is also available

6 OBJECTIVE ACCOUNTANCY Chapter 1.1 ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS Instruction : In the following questions there are four options of which only one is correct. You have to choose the correct option and mark in the answer sheet : 1. Sale of old newspapers is (A) Capital Receipt (B) Revenue Receipt (C) Asset (D) Profit 2. Income and expenses related to the prize fund is shown in (A) Income and Expenditure Account (B) Assets side of the Balance Sheet (C) Liabilities side of the Balance Sheet (D) Cash Account 3. Life membership fees of non-trading concerns is (A) Capital Receipts (B) Revenue Receipts (C) Both 4. Legacies should be treated as (A) Liability (B) A Revenue Receipt (C) A Capital Receipt 5. Payment of Honorarium to secretary is treated as (B.S.E.B., 2012, 13) (A) Capital Expenditure (B) Revenue Expenditure (C) Cash Expenses 6. Specific donation is (A) Capital Receipt (B) Revenue Receipt (C) Asset 7. Income and Expenditure Account records (A) Capital items (B) Revenue items (C) A and B both 8. Outstanding subscription is a/an (B.S.E.B., 2013) (A) Income (B) Asset (C) Liability 9. Entrance fee, unless otherwise stated, is treated as (A) Revenue Receipts (B) Capital Receipts (C) Liability 10. Life membership fee received by a Club is (A) Revenue Receipt (B) Capital Receipt (C) A and B both 11. All receipts of capital nature are shown in (A) Income and Expenditure A/c (B) Balance Sheet (C) P. & L. A/c 12. All items of revenue in nature are shown in (A) Income and Expenditure A/c (B) Balance Sheet (C) A and B both 13. Which of the following is not a not-for-profit organisation (A) School (B) Hospital (C) Club (D) Partnership Firm 14. The excess of assets over liabilities in non-trading concerns is treated as (A) Capital Fund (B) Capital (C) Profit (D) Net Profit 15. Subscriptions received in advance by a Club are shown on... side of the Balance Sheet (A) Assets Side (B) Liabilities Side (C) Debit Side (D) Credit Side 16. Which of the following is not an income (A) Subscription (B) Donation (C) Sale of Ticket (D) Endowment Fund 17. Income and Expenditure A/c includes (A) Revenue Items (B) Capital Items (C) Both (A) and (B) SBPD PUBLICA TIONS

7 2 SBPD Publications Financial Accounting XII 18. Most transactions in non-trading concerns are (A) Cash (B) Credit (C) Both (A) and (B) 19. The main object of non-profit organisation is (A) To earn the Profit (B) To Serve the Society (C) To Prepare Profit & Loss A/c (D) All the above 20. Subscription received by an organisation is (A) Capital Receipt (B) Revenue Receipt (C) Both A and B (D) None of the above 21. Entrance fees received by a Club is treated as (A) Revenue Receipt (B) Capital Receipt (C) Revenue Expenditure 22. Receipts and Payments A/c is a summary of (A) All Capital Receipts and Payments (B) All Revenue Receipts and Payments (C) All Revenue and Capital Receipts and Payments (D) None of the above 23. Subscription received during the year ` 50,000; Subscriptions outstanding at the end of the year ` 8,000; Subscription outstanding at the beginning of the year ` 6,000. Net Income from subscription will be (A) ` 48,000 (B) ` 64,000 (C) ` 52,000 (D) ` 36, Subscription received during the year ` 1,80,000; Subscriptions outstanding at the end of the year ` 20,000; Subscriptions received in advance at the end of the year ` 10,000. The amount of subscription to be credited to Income and Expenditure Account will be (A) ` 2,10,000 (B) ` 1,90,000 (C) ` 1,70,000 (D) ` 2,00, In case specific fund is maintained, the expenses exceeding the amount of the funds, should be recorded on (A) Liabilities side of the Balance Sheet (B) Debit side of the Income and Expenditure Account (C) Credit side of the Income and Expenditure Account (D) Assets side of the Balance Sheet 26. All receipts from sale of consumable items are treated as (A) Capital Receipts (B) Revenue Receipts (C) Both A and B 27. Subscriptions received in cash during the year ` 5,000, amount received in advance for the next year is ` 300. Amount outstanding for current year was ` 400. The amount to be credited to the Income and Expenditure Account is (A) ` 4,000 (B) ` 5,100 (C) ` 4,200 (D) ` 4, If income is ` 16,000 and deficit debited to capital fund is ` 4,300, then expenditure is (A) ` 16,000 (B) ` 4,300 (C) ` 20, Balance of Income and Expenditure Account shows (A) Cash in hand (B) Capital Fund (C) Net Profit (D) Excess of Income over Expenditure or vice-versa 30. Property received as a result of the will of the deceased person is calledµ (B.I. E.C., 2012) (A) Legacy (B) Honorarium (C) Donation (D) Subscription 31. Legacies should be treated as (A) A Liability (B) A Revenue Receipts (C) An Income 32. Life membership fees received by Club is shown in (B.S.E.B., 2009, 11) (A) Income and Expenditure A/c (B) Balance Sheet (C) Receipts and Payments A/c

8 33. For non-trading organisation honorarium is (B.S.E.B., 2010, 11) (A) A Capital Expenditure (B) A Revenue Expenditure (C) An Income 34. Receipts & Payments A/c is a (B.S.E.B., 2010) (A) Personal A/c (B) Real A/c (C) Nominal A/c 35. Income & Expenditure A/c is a (A) Personal A/c (B) Real A/c (C) Nominal A/c 36. Which of the following is not a not-for-profit organisation (A) College (B) Sports Club (C) Maruti Udyog (D) Hospital 37. Income and Expenditure Account is prepared (A) By Business Organisation (B) By Industrial Organisation (C) By Not-for-profit Organisation (D) By all Organisations 38. Receipts and Payments Account usually indicates (A) Surplus (B) Capital Fund (C) Debit Balance (D) Credit Balance 39. Income and Expenditure Account generally indicates (A) Surplus/Deficit (B) Cash Balance (C) Capital Fund (D) Net Profit/Loss 40. Donation received for specific objective will be shown (A) In Income and Expenditure A/c (B) On Liabilities side of B/S (C) On Assets side of B/S (D) In none of these 41. The excess of assets over liabilities in non-trading concerns is treated as (B.S.E.B., 2010) (A) Capital Fund (B) Capital (C) Profit (D) Net Profit 42. In non-trading concerns, excess of income over expenditure is called (A) Profit (B) Surplus (C) Loss (D) Deficit 43. In not-for-profit organisations, excess of expenditure over income is called (A) Loss (B) Profit (C) Deficit (D) Surplus [Ans. 1. (B), 2. (A), 3. (A), 4. (C), 5. (B), 6. (A), 7. (B), 8. (B), 9. (A), 10. (B), 11. (B), 12. (A), 13. (D), 14. (A), 15. (B), 16. (D), 17. (A), 18. (C), 19. (B), 20 (B), 21. (A), 22. (C), 23. (C), 24. (B), 25. (B), 26. (B), 27. (B), 28. (C), 29. (D), 30. (A), 31, (A), 32. (B), 33. (B), 34. (B), 35. (C), 36. (C), 37. (C), 38. (C), 39. (A), 40. (B), 41. (A), 42. (B), 43. (C).] Explanation of Answers 23. Subscriptions received during the ` 24. Subscriptions received during the ` year 50,000 year 1,80,000 Add : Subscriptions O/S at the end of Add : Subscriptions O/S at the end of year 8,000 year 20,000 58,000 2,00,000 Less : Subscriptions O/S at the Less : Advance subscriptions at the beginning of year 6,000 end of year 10,000 Net Income from subcriptions 52,000 Subscriptions to be Credited to 27. Subscriptions received during the Income and Expenditure A/c 1,90,000 year 5, Expenditure = Income + Deficit Less : Advance Subscriptions for next = ` 16, ,300 = ` 20,300 year 300 4,700 Add : Outstanding subscriptions for current year 400 Subscriptions to be credited to Income and Expenditure A/c 5,100 Objective Accountancy 3

9 4 SBPD Publications Financial Accounting XII Chapter 1 ACCOUNTING FOR PARTNERSHIP FIRMS : FUNDAMENTALS Instruction : In the following questions there are four options of which only one is correct. You have to choose the correct option and mark in the answer sheet : 1. Partner's salary is debited to (A) Trading Account (C) Profit & Loss Appropriation Account (B) Profit and Loss Account 2. Current Account of the partners should be opened, when capital are (A) Fluctuating (B) Fixed (C) Circulating 3. Maximum Number of Partnership firm performing banking business is (A) 20 (B) 15 (C) Liability of a partner is (A) Limited (B) Unlimited (C) Limited to Capital 5. Partnership Deed is also called (A) Prospectus (B) Articles of Association (C) Principles of Partnership (D) Articles of Partnership 6. The relationship of partners with the firm is (A) As Manager (B) As Servant (C) As Agent (D) As Monopolist 7. Preparation of Partnership Deed is : (A) Compulsory (B) Not Compulsory (C) Unnecessary (D) Partly Compulsory 8. In which year did the Partnership Act passed? (A) 1932 (B) 1956 (C) 1947 (D) Partnership Agreement can be : (A) Oral (B) Written (C) Oral or Written 10. The interest on Partners Capital Accounts is to be credited to (A) Profit and Loss A/c (B) Interest A/c (C) Partners Capital A/c 11. In the absence of any Partnership Agreement, the profits or losses of the firm are divided (A) In Capital Ratio (B) In Equal Ratio (C) In any of these two ratios 12. In the absence of partnership deed, the partner will be allowed interest on the amount advanced to the firm by him at the rate of (B.S.E.B., 2010) (A) 4% p. a. (B) 5% p. a. (C) 6% p. a. (D) 8% p. a. 13. In partnership firm, profits and losses are shared (A) Equally (B) In the ratio of Capitals (C) As per Agreement 14. Which one of the following is not the feature of partnership (A) Agreement (B) Sharing of Profit (C) Limited Liability (D) Two or more than two persons 15. Profit and Loss Appropriation Account is prepared to (A) Create Reserve Fund (B) Find out Net Profit (C) Find out Divisible Profit 16. In an ordinary partnership, maximum number of partners are (A) 20 (B) 10 (C) 15 (D) 5

10 17. Which of the following is an appropriation of profit (A) Interest on Loan (B) Interest on Capital (C) Salary (D) Rent 18. When time of withdrawals are not mentioned, interest on drawings is charged (A) for 6½ months (B) for 6 months (C) for 5½ months (D) for 12 months 19. When drawings are made at the end of every month of certain amount, then interest will be calculated on total drawings for (A) 6½ months (B) 6 months (C) 5½ months (D) 1 month 20. For the firm, interest on drawing is a (A) Gain (B) Expense (C) Loss 21. In the absence of partnership deed, partners are not entitled to receive (A) Salaries (B) Commission (C) Interest on Capital (D) All of these 22. If a fixed amount is withdrawn on the first day of every quarter, the interest on total drawings will be calculated for (A) For 6 months (B) For 6.5 months (C) For 5.5 months (D) For 7.5 months 23. Anukalp and Karan are partners with the capital of ` 25,000 and ` 15,000 respectively. Interest payable on capital is 10% p.a. Find the interest on capital for both the partners when the profits earned by the firms is ` 2,400. (A) ` 2,500 and ` 1,500 (B) ` 1,500 and ` 900 (C) ` 1,200 and ` 1, Features of a partnership firm are (A) Two or more persons (B) Sharing profit and losses in the agreed ratio (C) Business carried on by all or any of them acting for all (D) All of the above 25. What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month? (A) 7 months (B) 6 months (C) 5 months (D) 6.5 months 26. What balance does a partner s current account has? (A) Debit balance (B) Credit balance (C) A or B 27. A draws ` 1,000 per month on the last day of every month. If the rate of interest is 5% p.a., then the total interest on drawings will be (A) ` 325 (B) ` 275 (C) ` 300 (D) ` In the absence of an agreement, partners are entitled to (C.P.T., 2007 Feb.) (A) Salary (B) Profit share in capital ratio (C) Interest an loan and advances (D) Commission 29. Fluctuating capital account is credited with (C.P.T., 2007 Nov.) (A) Interest on capital (B) Profit of the year (C) Remuneration of partners (D) All of these 30. In the absence of an agreement between partners, the interest to be allowed on partner s capital (B.S.E.B., 2012, C.P.T., 2010 June, 2009, 13) (A) 8% (B) 6% (C) 9% 31. Interest on Partner s capital is (A) An expenditure (B) An appropriation (C) A gain Objective Accountancy Calculate interest on p.a. for Gambhir if he withdrew ` 2,000 once at the beginning of each month (A) ` 1,560 (B) ` 1,500 (C) ` 1,200 (D) ` 1,000

11 Objective Accountancy Class 12th 30% OFF Publisher : Sbpd Publications ISBN : Author : Dr. S.K Singh Type the URL : Get this ebook

Objective Accountancy

Objective Accountancy CLASS XI Multiple Choice Questions with Answers SBPD Model Paper for BSEB ( with OMR Sheet) Dr. S. K. Singh M. Com., Ph. D. Recipient of Rashtriya Gaurav Award, Asian Admirable Achiever,