Shreya Acc MCQ

1/13/23, 2:15 PM TVSA Hosur_Grade XII_Accountancy Objective Test_Jan 2023
TVSA Hosur_Grade XII_Accountancy

Objective Test_Jan 2023
Total points 66/75
Name of the Student *
Shreya Sathish
Roll No. of the Student *
26
Date of the examination *
MM DD YYYY
01 / 13 / 2023
1. TDS refers to ................... relating to debenture interest. * 1/1
the debenture security
tax deducted at source
these debentures secured
None of these
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2. A shareholder to whom 9,000 shares of Rs.10 per share allotted failed *1/1
to pay first and final call of Rs.2 per share. How will it be recorded in the
books of company?
Rs.18,000 will be debited to calls-in-arrear A/c
Rs. 18,000 will be debited to share forfeiture A/c
Rs.18,000 will be credited to calls-in-arrear A/c
Rs.18,000 will be credited to share forfeiture A/c
3. Jhunjhun, a partner paid loan of the firm of Rs.1,00,000 at the time of 1/1
dissolution. pass the journal entry for this transaction.
Jhunjhun's capital A/c Dr 1,00,000 To Realisation A/c 1,00,000
Realisation capital A/c Dr 1,00,000 To Loan A/c 1,00,000
Realisation A/c Dr 1,00,000 To Jhunjhun's Capital A/c 1,00,000
None of the above
4. P,Q and R are partners sharing profits in the ratio of 3:2:1. They agree to *1/1
admit Z into the firm. P,Q and R agreed to give 1/3 rd, 1/6 th and 1/9 th
share of their profit. The share of profit of Z will be
11/54
13/54
1/10
12/54

5. With context to debit side of partners/ current account, pick the odd *1/1
one out.
Drawings
Interest on Drawings
Salary
None of these
6. Vijay, a director of the company proposed in a board meeting that to *1/1

inculcate the habit of savings among people, he wanted to bring a special
issue of shares. His proposal was accepted by the company. The
company issued 35,000 shares of Rs 100 each, payable Rs 30 on
application, Rs 50 on allotment and Rs 20 on call.
Tarun, a shareholder holding 25 shares could not pay his call money and
Arjun another shareholder holding 30 shares paid the call money with
allotment. Tarun, paid the amount due to him after four months
explaining the reason for this delay, the company did not charge any
interest from him. Calculate the amount received by the company on
allotment.
Rs.17,50,000
Rs. 10,50,000
Rs. 17,50,600
Rs. 24,50,000

7. Net profit is always taken after ...........in the profit and loss *1/1
appropriation account.
interest on partner's loan
manager's commission
Both (a) and (b)
None of these
8. X and Y are partners in a firm sharing profits and losses in the ratio of *1/1
5:7 respectively. Their balance sheet shows creditors at Rs.1,00,000. If
creditors amounting to Rs. 12,000 are to be written -off as they are not
likely to be claimed, what will be the new value of creditors to be shown in
new balance sheet?
Rs.12,000
Rs.1,12,000
Rs. 88,000
None of these
9. Assertion (A) Partnership agreement in writing is considered as *1/1

desirable. Reason (R) written partnership agreement serves as a evidence
in the court of law. Alternatives
Both assertion (A) and Reason (R) true and Reason (R) is the correct
explanation of Assertion (A)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A)
Assertion (A) is true, but Reason (R) is false
Assertion (A) is false, but Reason (R) is true

10. A,B and C are partners with capitals Rs.1,00,000, Rs. 75,000 and *1/1
Rs.50,000 respectively. On C's retirement, his share is acquired by A and
B in ratio of 5:3 Gaining ratio will be
3:2
2:2
5:3
None of these
11.Interest allowed by the company of the amount of calls-in -advance is *1/1

.........
12% p.a.
6% p.a.
8% p.a.
15% p.a.
12. Which of the following is not correct in relation to right of a partner? * 1/1
i) Right to inspect the books of the firm
ii) Right to take part in the affairs of the company
iii) Right to share the profits/losses if the firm
iv) Right to receive salary at the end of each month
(i) and (ii)
(i) and (iv)
Only (iv)
Only (i)

13. Which amongst the following shares confer voting rights on its *1/1
holders?
Equity shares
Redeemable preference shares
Participatory preference shares
None of the above
14. If a share of Rs.10 on which Rs.8 has been paid up is forfeited, it can *1/1
be reissued at the minimum price of ............
Rs.10 per share
Rs.8 per share
Rs.5 per share
Rs.2 per share
15. Loss on issue of debentures is written-off out of * 1/1
securities premium reserve
general reserve and statement of profit and loss account
Both (a) and (b)
discount of issue of debentures account

16. No interest is to be charged on drawings from the partners in case of *1/1
.........
no interest clause in deed
absence of deed
an oral agreement between partners including interest clause
Both (a) and (b)
17. What will be the correct sequence of events? * 1/1

(i) Forfeiture of shares
(ii) Default on calls
(iii) Reissue of shares
(iv) Amount transferred to capital reserve
(i), (iv), (ii), (iii)
(ii), (iv), (i), (iii)
(ii), (i), (iii), (iv)
(iii), (iv), (i), (ii)

18. X and Y were partners in a firm sharing profits and losses in the ratio *1/1
of 2:1. With effect from 1st January, 2020, they decided to share profits
and losses equally. Individual partner's gain or sacrifice due to change in
the ratio will be
Gain by X 1/6, Sacrifice by Y 1/6
Sacrifice by X 1/6, Gain by Y 1/6
Gain by X 1/2, Sacrifice by Y 1/2
Sacrifice by X 1/2, Gain by Y 1/2
19. X, Y and Z are partners in the ratio of 5:3:2. Before Y's salary of *1/1
Rs.3,400 firm's profit is Rs.19,400. How much in total, Y will receive form
the firm?
Rs.3,400
Rs.8,000
Rs.4,800
Rs.8,200
20. X Ltd issued 10,000, 8% debentures of Rs.10 each, payable on *1/1

application and redeemable at par at any time after 6 years. Record the
entries for the application money received in the books of X Ltd.
Bank A/c Dr 80,000, To Debenture Application and Allotment A/c 80,000
Bank A/c Dr 1,00,000, To Debenture Application and Allotment A/c 1,00,000
Debenture Application and Allotment A/c 1,00,000, To 8% Debentures A/c 1,00,000
None of the above

21. Zen Ltd purchased a Machinery from Kisan Ltd for Rs.2,25,000. Zen *1/1
Ltd. Immediately paid Rs.45,000 by bank draft and the balance by issue
of preference shares of Rs.100 each at 20% premium for the purchase
consideration of machinery. Number of preference shares issued will be
........
1,500
15,000
1,800
18,000
22. X, Y and Z are partners sharing profits in the ratio of 3:2:1. They agree *1/1
to admit G into the firm. X,Y and Z agreed to give 1/3rd,1/6th and 1/9th
share of their profit. The share of profit of G will be
11/54
13/54
1/10
12/54

23. Amox Ltd is registered with a capital of 10,00,000 equity shares of *1/1
Rs.10 each. 6,00,000 equity shares were offered for subscription to
public. Applications were received for 6,00,000 shares. All calls were
made and amount of share capital shown in the balance sheet?
Rs.60,00,000
Rs.58,40,000
Rs.5.84,000
Rs.6,00,000
24. A,B and C are partners sharing profits equally. A drew regularly *0/1
Rs.4,000 in the beginning of every month for the six months ended 30th
September, 2020. Calculate interest on A's drawings @ 5 %.p.a.
Rs.200
Rs.1,200
Rs.350
Rs.700
Correct answer
Rs.350
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25. State the right order of deductions for presenting correct view of the *1/1
profit and loss appropriation account.
(i) Interest on the partner's loan
(ii) Manager's commission on net profit
(iii) Interest on partner's capital
(i)-(ii)-(iii)
(ii)-(iii)-(i)
(iii)-(i)-(ii)
(i)-(iii)-(ii)
26. Pinky and Chinky are partners in a firm. They share their profits in 2:3 *0/1
ratio. The accountant of the firm, finalised the profit and loss and capital
account and presented the accounts to them. Pinky disagreed with
accounts because Pinky's capital account showed negative balance.
Pinky is in doubt, this cannot be happen. Give your opinion.
Pinky is wrong
Pinky is correct
accountant is defaulter
None of these
Correct answer
Pinky is wrong

27. Sleeping partners.......... * 1/1
take active part in the conduct of the business but provide no capital. However,
salary is paid to them
do not take any part in the conduct of the business but provide capital and
share profits and losses in the agreed ratio
take active part in the conduct of the business but provide no capital. However,
share profits and losses in the agreed ratio
do not take any part in the conduct of the business and contribute no capital.
However, share profits and losses in the agreed ratio
28. How many days notice period is given to a defaulter in forfeiture? * 1/1
7 days
14 days
21 days
28 days
29. Which of the following is correct with regard to usage of balance of *1/1
share forfeiture account?
(i) provide for discount given at the time of reissue
(ii) Write off preliminary expenses
(iii) Write off bad debts
(i) and (ii)
Only (i)
Only (iii)
Option (ii)

30. Diggi Ltd invited applications for 8,000 shares of Rs.10 each at the *1/1
issue price of Rs.10 Applications were received for 7,600 shares. What
will be the amount received on application?
Rs. 76,000
Rs. 72,000
Rs. 84,000
Rs. 80,000
31. At the time of death of a partner, the adjustment of goodwill is done in *1/1
which ratio?
Old profit sharing ratio
Gaining ratio
Sacrificing ratio
None of these

32. X and Y are partners sharing profits equally. They admit Z into *1/1
partnership for equal share. It was agreed that the firm's goodwill will be
valued at two years purchase of average normal profit of the last three
years. Profits of the business for last three years ended on 31st March
were
2018-Rs. 80,000 (after charging an abnormal loss Rs. 20,000
2019 - Rs. 1,50,000 (including an abnormal gain Rs.50,000)
2020 - Rs. 1,00,000
The value of goodwill will be..........
Rs. 1,00,000
Rs. 2,00,000
Rs. 3,00,000
Rs. 2,50,000
33. Profit and loss adjustment account is ........in nature. * 1/1
real
personal
Both (a) an (b)
Nominal

34. A and B are partners sharing profits in the ratio of 3:2. They admit Z *1/1
as a new partner. After his admission, the profit sharing ratio becomes
5:5:3. On the date of Z's admission, goodwill of the firm is valued at
Rs.1,30,000. The amount of goodwill brought in by Z will be
Rs.50,000
Rs. 1,00,000
Rs. 30,000
Rs. 1,30,000
35. Hemtechno Ltd. Invited application for 4,000 equity shares of Rs.10 *0/1
each at the issue price of Rs.10. Complete amount was received on
application itself. How the amount received will be shown in balance
sheet?
Cash not received=Rs. 40,000
Amount utilised = Rs. 40,000
Cash and cash equivalent = Rs. 40,000
Shares = Rs. 40,000
Correct answer
Cash and cash equivalent = Rs. 40,000

36. In a firm, 10% of net profit after deducting all adjustments,, including *1/1
reserve is transferred to general reserve. The net profit after all
adjustments but before transfer to general reserve is Rs.22,000 calculate
the amount which is to be transferred to reserve.
Rs.1,250
Rs. 2,000
Rs. 2,200
Rs. 1,100
37. X and Y are partners sharing profits and losses in the ratio of 5:3. On *1/1
admission, Z brings Rs.35,000 as cash and Rs.21,500 against goodwill.
New profit radio between X,Y,Z is 7:5:4. The sacrificing ratio of X and Y
will be
3:1
1:3
4:5
5:9

38. A Company is having authorised capital of Rs.50,00,000 which is *1/1
divided into shares of Rs.100 each. Company issued its 30,000 shares to
the public @ 10% premium. All the shares are applied by the public and
allotted by the company.
The amount of paid up share capital will be...........
50,00,000
30,00,000
33,00,000
55,00,000
39. If a partner withdraws consistently at the end of each quarter for a *1/1
year, average period will be .............
4.5
5.5
6.5
7.5
40.On 1st April, 2020 P's capital was Rs.10,000. On 1st October, 2020, he *1/1
introduces additional capital of Rs. 5,000. Interest on capital @ 6%p.a. on
31st March, 2021 will be
Rs. 450
Rs. 900
Rs. 525
Rs. 750

41. .......... is also known as articles of partnership. * 1/1
Partnership prospectus
Partnership deed
Principles of Partnership
None of these
42. Reserve capital of the company is the .........capital. * 1/1
uncalled
paid-up
called-up
None of these
43. At the time of admission, increase in the value of liabilities is ............... * 1/1
debited to revaluation account
credit to revaluation account
credited to partner's capital account
debited to partner's capital account

44. On firm's dissolution, a partner A took over 50% of the stock at a *1/1
discount of 20% (book value of stock was Rs.5,00,000) What will be the
value of taken over stock?
Rs. 2,50,000
Rs. 1,00,000
Rs. 2,00,000
Rs. 5,00,000
45. Capital employed by a partnership firm is Rs. 2,50,000. Its average *1/1
profit is Rs. 30,000. The normal rate of return in similar type of business
is 10% The amount of super profit will be.
Rs. 25,000
Rs. 5,000
Rs. 3,000
Rs. 28,000
46. 600 shares of Rs. 10 each were forfeited for non-payment of Rs.2 per *1/1
share on first cal and Rs.5 per share on final call. Share forfeiture account
will be credited with
Rs. 1,200
Rs. 1,800
Rs. 3,000
Rs. 4,200

47. Which of the following statement is true? * 1/1
(i) Fixed capital account will always have a credit balance
(ii) Current account can have a positive or a negative balance
(iii) fluctuating capital account can have a positive or a negative balance
(i) and (ii)
(ii) and (iii)
(i) and (iii)
(i) (ii) and (iii)
48. When a partner is given guarantee by other partners, loss on such *1/1
guarantee will be borne by
Partnership firm
all the other partners
Partners who give the guarantee
partner with highest profit sharing ratio
49. On an equity share of Rs.50 the company has called up Rs.40 but only *1/1
Rs.30 have been received by the company and the share is forfeited. In
this case, share capital account should be debited by
Rs. 50
Rs. 40
Rs. 30
Rs. 10

50. X and Y are sharing profits and losses in the ratio of 3:2. Z is admitted *1/1
with 1/5th share in profits of the firm which he gets entirely from X. Find
out the new profit sharing ratio.
12: 8: 5
8: 12: 5
2: 2: 1
2: 2: 2
51. X and Y contribute Rs.50,000 and Rs.30,000 respectively in a *1/1

partnership firm by way of capital on which they agree to allow interest @
8% p.a. Their profit or loss sharing ratio is 3:2. The profit at the end of the
year was Rs. 1,400 before allowing interest on capital. If there is a clear
agreement that interest on capital will be paid even in case of loss, then
Y's share of profit or loss will be
profit Rs. 3,000
profit Rs. 2,000
loss Rs. 3,000
loss Rs. 2,000
52. State the order of share capitals of the following types according to *1/1
the schedule III, Part I of the companies balance sheet.
(i), (ii), (iii)
(ii), (iii), (i)
(iii), (ii), (i)
No specified order

53. If vendors are issued fully paid shares of Rs.62,500 in consideration *0/1
of net assets of Rs.75,000 the balance
Rs. 12,500 will be credited to statement of profit and loss
Rs. 12,500 will be credited to goodwill account
Rs. 12,500 will be credited to securities premium reserve account
Rs. 12,500 will be credited to capital reserve account
Correct answer
Rs. 12,500 will be credited to securities premium reserve account
54. P has given guarantee to Q for minimum Rs.5,000 profit. At year end, *1/1
the firm suffered loss and Q's share in the loss was Rs.1,000. Calculate
amount of deficiency to be borne by P.
Rs.1000
Rs.5000
Rs.6000
None of these
55. Realisation account is prepared at the time of ........... * 1/1
admission of a partner
change in profit sharing ratio
dissolution of a firm
dissolution of partnership only

56. From the following information, you are required to calculate cost of *0/1
material consumed. Opening inventory of materials Rs.30,00,000;
opening stock in trade Rs. 8,00,000; Material purchased Rs.1,00,000;
purchase of stock in trade Rs.60,00,000; closing inventory of material
Rs.10,00,000 and closing inventory of stock 6,00,000.
60,00,000
1,20,00,000
80,00,000
None of these
Correct answer
1,20,00,000
57. Which of the following is a non-operating income? * 1/1
Dividend received by an investment company
Premium received by an insurance company
Revenue form sale in a trading concern
Profit on the sale of used plant in manufacturing company
58. Which of the following is highly liquid investment? * 1/1
Cash convertible investment
Cash equivalent
Short-term investment
None of these

59. Which of the following is not an financing cash flow? * 0/1
Issue of debentures for Rs.75,000 cash
Dividend paid on equity shares amounting to Rs.24,000
Purchase of investment for Rs.40,000 cash
Both (a) and (b)
Correct answer
Purchase of investment for Rs.40,000 cash
60. Livestock is a item of ........assets under sub-head fixed assets and *1/1
the major head non-current assets.
intangible
inventories
trade receivables
tangible
61. If current assets are Rs.1,00,000 current liabilities are Rs.50,000 *1/1
inventories Rs.6,000 and prepaid expenses Rs.10,000 what is the value of
quick assets?
Rs.50,000
Rs,94,000
Rs.90,000
Rs.84,000

62. For a company manufacturing garments, procurement of raw *1/1
material, incurrence of manufacturing expenses, sale of garments are
classified as ............ activity.
financing
investing
operating
None of these
63. Liquid ratio is calculated as * 1/1
Current Assets-Fictitious Assets / Current Liabilities
Current Assets - Current Liabilities / Current Assets
Current Assets-Liquid Assets / Current Liabilities
Current Assets-Inventories-Prepaid Expenses / Current Liabilities
64. Which of the following is not an investing cash flow? * 1/1
Purchase of marketable securities for Rs.25,000 cash
Sale of land for Rs.28,000 cash
Sale of 2,500 shares (held as investment) for Rs.15 each
Purchase of equipment for Rs.500 cash

65. Which of the following is not an item of sub-head other current *1/1
liabilities in balance sheet?
Creditors
Outstanding expenses
Advance income
Both (b) and (c)
66. If debt equity ratio is 2:1, which of the following will have no effect on *0/1
it?
(i) Purchase on fixed assets by taking loan of Rs.10,00,000
(ii) Sale of fixed assets at a loss of Rs.30,000
(iii) Issue of bonus shares
(iv) Declaration of final dividend
(i) and (ii)
(iii) and (iv)
Only (iii)
(i), (ii) and (iv)
Correct answer
Only (iii)
67. Financial statement analysis includes...........and.........of financial *0/1

statements
analysis, preparation
preparation, interpretation
preparation, analysis
analysis, interpretation
Correct answer
analysis, interpretation
68. The net amount of source or use of cash when a fixed asset (having *1/1
book value Rs.1,20,000) is sold at a loss of Rs.40,000 in term of cash flow
will be.......
Rs.1,20,000
Rs.40,000
Rs.80,000
Rs.1,60,000

69. If operating ratio of a company is 80% which of the following will *1/1
increase the operating ratio?
(i) Credit purchases of goods Rs.5,000
(ii) Sales return Rs.200
(iii) Payment to creditors Rs.1,000
(iv) Selling expenses Rs.800
(v) Cash sales Rs. 10,000
(vi) Purchase return Rs.100
(i) and (ii)
(i),(ii) and (iv)
(ii), (iii) and (iv)
(i),(ii),(iii),(iv) and (v)
70. Which one of the following is not an item of securities premium *1/1
reserve?
Revaluation reserve
Securities premium reserve
Share options outstanding account
None of these
71. Rakshak Ltd made an operating profit of Rs.1,85,500 after charging *1/1
depreciation of Rs.31,200. During that year, trade payables increased by
Rs.26,600 and inventory increased by Rs.40,300. There was no change to
trade receivables. Assuming that no other factors affected it, what would
be the cash generate from operations?
Rs.2,03,000
Rs.2,30,400
Rs.2,25,800
Rs.2,43,300
72. Which of the following is correct? *0/1

(i) Forfeited shares account is shown under the head shareholders funds
(ii) Interest accrued and due on debentures is shown under the head
other current liabilities
(iii) Loose tools are shown under the head current liabilities
(i) and (ii)
Only (ii)
(i) and (iii)
All are correct
Correct answer
(i) and (ii)
73. If the value of current assets is twice the current liabilities and *1/1
working capital is Rs.80,000 what will be the value of current liabilities?
Rs.20,000
Rs.1,60,000
Rs.60,000
Rs. 80,000
74. Holyname Ltd made an operating profit of Rs.2,00,000 after charging *1/1
deprecation of Rs.22,000 During that year, trade payables increased by
Rs.27,200 and inventory increased by Rs.75,000 There was no change in
trade receivables. Assuming that no other factors affected it, what would
be the cash generated from operations?
Rs.1,74,200
Rs.1,47,000
Rs.2,,49,200
Rs.2,22,000
75. XLt.redeemed Rs.1,00,000 9% debentures at 10% premium. What will *1/1

be the amount of cash flows from financing activities?
Rs.1,10,000
Rs.1,00,000
Rs.10,000
None of these
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1/13/23, 2:15 PM TVSA Hosur_Grade XII_Accountancy Objective Test_Jan 2023

TVSA Hosur_Grade XII_Accountancy

Name of the Student *

Roll No. of the Student *

Date of the examination *

1. TDS refers to ................... relating to debenture interest. * 1/1

the debenture security

tax deducted at source

these debentures secured

Rs.18,000 will be debited to calls-in-arrear A/c

Rs. 18,000 will be debited to share forfeiture A/c

Rs.18,000 will be credited to calls-in-arrear A/c

Rs.18,000 will be credited to share forfeiture A/c

Jhunjhun's capital A/c Dr 1,00,000 To Realisation A/c 1,00,000

Realisation capital A/c Dr 1,00,000 To Loan A/c 1,00,000

Realisation A/c Dr 1,00,000 To Jhunjhun's Capital A/c 1,00,000

None of the above

6. Vijay, a director of the company proposed in a board meeting that to *1/1

interest on partner's loan

Both (a) and (b)

9. Assertion (A) Partnership agreement in writing is considered as *1/1

Assertion (A) is true, but Reason (R) is false

Assertion (A) is false, but Reason (R) is true

11.Interest allowed by the company of the amount of calls-in -advance is *1/1

(i) and (ii)

(i) and (iv)

Redeemable preference shares

Participatory preference shares

None of the above

Rs.10 per share

Rs.8 per share

Rs.5 per share

Rs.2 per share

15. Loss on issue of debentures is written-off out of * 1/1

securities premium reserve

general reserve and statement of profit and loss account

Both (a) and (b)

discount of issue of debentures account

no interest clause in deed

an oral agreement between partners including interest clause

Both (a) and (b)

17. What will be the correct sequence of events? * 1/1

(i), (iv), (ii), (iii)

(ii), (iv), (i), (iii)

(ii), (i), (iii), (iv)

(iii), (iv), (i), (ii)

Gain by X 1/6, Sacrifice by Y 1/6

Sacrifice by X 1/6, Gain by Y 1/6

Gain by X 1/2, Sacrifice by Y 1/2

Sacrifice by X 1/2, Gain by Y 1/2

20. X Ltd issued 10,000, 8% debentures of Rs.10 each, payable on *1/1

Bank A/c Dr 80,000, To Debenture Application and Allotment A/c 80,000

Bank A/c Dr 1,00,000, To Debenture Application and Allotment A/c 1,00,000

Debenture Application and Allotment A/c 1,00,000, To 8% Debentures A/c 1,00,000

None of the above

(i) and (ii)

Old profit sharing ratio

33. Profit and loss adjustment account is ........in nature. * 1/1

Both (a) an (b)

Cash not received=Rs. 40,000

Amount utilised = Rs. 40,000

Cash and cash equivalent = Rs. 40,000