Accounts Class 12th English Medium

ACCOUNTANCY
Content
1. ACCOUNTING - AN INTRODUCTION
2. ACCOUNTING CONCEPTS
3. ACCOUNTING CONVENTIONS AND STANDARDS

4. ACCOUNTING FOR BUSINESS TRANSACTIONS
5. JOURNAL
6. LEDGER
7. CASH BOOK
8. SPECIAL PURPOSE BOOKS
9. TRIAL BALANCE
10. BANK RECONCILIATION STATEMENT
11. BILLS OF EXCHANGE
12. ERRORS AND THEIR RECTIFICATION

13. COMPUTER AND COMPUTERISED ACCOUNTING SYSTEM
14. DEPRECIATION
15. PROVISIONS AND RESERVES

16. FINANCIAL STATEMENTS: AN INTRODUCTION
17. FINANCIAL STATEMENTS: I
18. FINANCIAL STATEMENTS – II
19. NOT FOR PROFIT ORGANISATION - AN INTRODUCTION
20. FINANCIAL STATEMENTS (NOT FOR PROFIT ORGANISATION)

21. ACCOUNTS FROM INCOMPLETE RECORDS
22. PARTNERSHIP: AN INTRODUCTION
23. ADMISSION OF A PARTNER
24. RETIREMENT AND DEATH OF A PARTNER
All Rights reserved  Manish Verma Official Channel, Visit https://manishvermaofficial.com/

25. DISSOLUTION OF PARTNERSHIP FIRM
26. COMPANY: AN INTRODUCTION
27. ISSUE OF SHARES

28. FORFEITURE OF SHARES
29. REISSUE OF FORFEITED SHARES
30. ISSUE OF DEBENTURES
31. FINANCIAL STATEMENTS ANALYSIS - AN INTRODUCTION

32. ACCOUNTING RATIOS - I
33. ACCOUNTING RATIOS - II
34. CASH FLOW STATEMENT
35. ELECTRONIC SPREAD SHEET

36. USE OF SPREADSHEET IN BUSINESS APPLICATIONS
37. GRAPHS AND CHARTS FOR BUSINESS
38. DATABASE MANAGEMENT SYSTEM

Ques 1. Minimum number of members required to form a Public Company is :
a) 50
b) 07
c) 20
d) 100
Ans. b) 07
Ques 2. X and Y are partners, sharing profits and losses in the ratio of 4: 3. They
admit Z into the partnership for share. X and Y decide to share future profits in the
ratio of 2: 1. What is the sacrificing ratio of X and Y?
a) 4:3
b) 13:8
c) 8:13
d) 4:17
Ans. a) 4:17
Ques 3. While charging depreciation on fixed Assets by straight line method, the
value of Assets taken into consideration is:
a) Original value
b) Diminishing value
c) Market value
d) Book value
Ans. b) Diminishing value

Ques 4. In a partnership firm the liability of each partner except a minor is:
a) limited to the capital employed by them
b) limited to their profit share
c) unlimited
d) limited to the amount agreed among partners
Ans. c) unlimited
Ques 5. Sale of the old newspaper is
a) Revenue Receipt.
b) Asset.
c) Profit.
d) Capital receipt.
Ans. a) Revenue Receipt.
Ques 6. According to Section 78 of the companies Act, the amount in the
Securities Premium A/c cannot be used for the purpose of
a) Issues of fully paid bonus shares

b) Writing off losses of the company
c) Writing preliminary expenses
d) Writing off commission or discount on issues of shares
Ans. b) Writing off losses of the company

Ques 7. Sale of old newspaper for 2,000 will be recorded on:
a) Dr. Side of Income and Expenditure A/c
b) Cr. Side of Income and Expenditure A/c
c) Cr. Side of Receipts and Payments A/c

d) None of these
Ans. b) Cr. Side of Income and Expenditure A/c
Ques 8. Partnership deed is also called
(a) Articles of Association
(b) Principles of Partnership
(c) Articles of Partnership
(d) Prospectus
Ans. (c) Articles of Partnership
Ques 9. In which of the following case 'Realization Account' is prepared?
a) On admission of a partner
b) On dissolution of the firm

c) On retirement of a partner
d) On death of a partner
Ans. b) On dissolution of the firm
Ques 10. Debit balance of Trading Account is known as:
a) Gross Profit
b) Gross Loss
c) Net Profit
d) Net Loss

Ans. b) Gross Loss
Ques 11. Which statement are prepared by the Not-for-profit Organisations?
a) Receipt and payment Account
b) Income and Expenditure Account

c) Balance Sheet
d) All the above
Ans. d) All the above
Ques 12. Interest paid on calls in Advance will be debited to:
a) Interest A/c
b) Interest on calls in Advance A/c
c) Calls in Advance A/c

d) Bank A/c
Ans. b) Interest on calls in Advance A/c
Ques 13. X Ltd., invited applications for issuing 10,000 equity shares of ₹ 10 each.
Applications were received for 9,800 shares. The issue will be called:
a) Fully subscribed
b) Over subscribed
c) Under subscribed
d) Partly subscribed
Ans. c) Under subscribed
Ques 14. Shares of ₹ 10 have been issued at ₹ 11 per share. These shares will be
called as issued at:
a) Par
b) Premium

c) Discount
d) For consideration other than cash
Ans. b) Premium
Ques 15. Gross profit is transferred from Trading Account to :
a) Debit side of Profit and Loss Account
b) Credit side of Profit and Loss Account
c) Asset side of Balance Sheet

d) Liability side of Balance Sheet
Ans. b) Credit side of Profit and Loss Account.
Ques 16. Differentiate between fixed and fluctuating capital accounts on any three
bases.
Ans.
Basis Fixed capital Fluctuating capital
The number of Accounts There are two accounts in There is only one account
the Fixed Capital method, in a Fluctuating Capital
i.e. capital and current Method, i.e. capital
accounts account
Nature of Account / The nature of account in a The nature of account in a
Balance Fixed Capital Method Fluctuating Capital Method
remains unchanged changes
Credit / Debit balance Fixed capital accounts Fluctuating capital might
constantly demonstrate a sometimes illustrate a

credit balance debit balance

Ques 17. A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. B retired
and the new profit-sharing ratio between A and C was 2 : 1. On B’s retirement, the
goodwill of the firm was valued at Rs. 90,000. Pass necessary journal entry for the
treatment of goodwill on B’s retirement.
Ans.
Working Notes:
1. Calculations of gaining Ratio
A:B:C
Old Ratio – 3 : 2 : 1
B’s Partner is retirement from the firm .
A:C
New Ratio – 2 : 1
Gaining Ratio = New Ratio – Old Ratio
𝟐 𝟑 𝟒 𝟑 𝟏
A’s = 𝟑 - =𝟔 -𝟔 =𝟔
𝟔
𝟏 𝟏 𝟐 𝟏 𝟏
C’s = 𝟑 - 𝟔 = 𝟔 - 𝟔 = 𝟔

.: Gaining Ratio (A and C) = 1: 1
2. Adjustment of goodwill
Goodwill of the firm = Rs. 90,000
2
B’s Share of goodwill = 90, 000 * = ₹ 30, 000
6
B’s Share of goodwill is to be debited to remaining
Partners’ capital A/c in their gaining ratio A and C = 1: 1
1
Debited by A’s Share = 30,000 * = ₹ 15, 000
2
Ques 18. Ajay and Vijay were partners in a firm sharing profits in the ratio of 3 : 2.
Their fixed Capitals were Ajay ₹ 5,00,000 and Vijay ₹ 4,00,000. The partnership
deed provided for the following:
(a) Interest on capital @ 10% p.a.
(b) Interest on drawings @ 6% p.a.
(c) Monthly salary of ₹ 10,000 to Ajay and half yearly salary of ₹ 50,000 to Vijay.
During the year ended 31.12.2020 the firm earned a net profit of 12,50,000. During
the year each partner withdrew * 60,000. Prepare Profit and Loss Appropriation
Account of Ajay and Vijay.
Ans. (a) Calculations of interests on capital:
Interest on capital = Capital * (Rate ÷ 100)
For Ajay:
 Interest on capital = Rs. 5,00,000 * (10 ÷ 100) = Rs. 50, 000

For Vijay:
 Interest on capital = Rs. 4, 00,000 * (10 ÷ 100) = Rs. 40, 000
Interests on capitals are recorded on the debit side of the appropriation account
(b) Calculation of interests on drawings:
Interest on drawings = Drawings × (Rate ÷ 100)
For Ajay:
 Interest on drawings = Rs 60,000 × (10 ÷ 100) × (6 ÷ 12) = Rs 3,000
For Vijay:
 Interest on drawings = Rs 60,000 × (10 ÷ 100) × (6 ÷ 12) = Rs 3,000
Interests on drawings are recorded on the credit side of the appropriation account.
(c) Calculation of salaries:
For Ajay:
 Salary = Rs. 10,000 * 12 (Monthly = 12) = Rs. 1, 20, 000
For Vijay:
 Salary = Rs 50,000 * 2 (half – yearly = 2) = Rs. 1, 00,000
Salaries are recorded on the debit side of the appropriation account.
The profit for the year is recorded on the credit side of the appropriation account.
Calculation of profit/loss:
To determine profit/loss, observe the debit and the credit sides. If the balancing
figure appears on the debit side, it is profit. Else, loss.

Credit = Rs 12,50,000 + Rs 3,000 + Rs 3,000 = Rs 12,56,000
Debit = Rs 50,000 + Rs 40,000 + Rs 1,20,000 + Rs 1,00,000 = Rs 3,10,000
Balancing figure = Rs 9,46,000 [Dr.]
Calculation of distribution of profit:
Since they share their profits and losses in the ratio 3:2, it will be distributed
accordingly.
For Ajay:
Profit share = Rs 9,46,000 × 3/5 = Rs 5,67,600
For Vijay:
Profit share = Rs 9,46,000 × 2/5 = Rs 3,78,400
Profit & Loss Appropriation Account

Ques 19. Explain any two methods of valuation of goodwill.
Ans. 1. Average Profits Method
I) Simple Average: Under this meth od, the goodwill is valued at the agreed number of
years of purchase of the average profits of the past years. Goodwill = Average Profit x
No. of years of purchase.
ii) Weighted Average: Under this method, the goodwill is valued at an agreed number
of years of purchase of the weighted average profits of the past years. We use the
weighted average when there exists an increasing or decreasing trend in the profits
giving the highest weight to the current year’s profit.
 Goodwill = Weighted Average Profit x No. of years’ of purchase
 Weighted Average Profit = Sum of Profits multiplied by weights/ Sum of weights
2. Super Profits Method
(i) The Number of Years Purchase Method: Under this method, the goodwill is valued at
the agreed number of years of purchase of the super profits of the firm.
Goodwill = Super Profit x No. of years of purchase
 Super Profit = Actual or Average profit – Normal Profit
 Normal Profit = Capital Employed x (Normal Rate of Return/100)
Ques 20. Give the meaning of issue of shares at premium with the help of an
example. State the purposes for which securities premium money can be utilized.
Ans. Companies may offer shares at face value or par value. However, companies may
also offer shares at a value more than the face value. This process of issue of shares at a
higher value than the face value is known as the issue of shares at a premium.

There are some restrictions attached by law on how the securities premium can be
utilized by the companies. There are some provisions in Section 52 of Companies
Act, 2013 which are:
 It can be utilized by issuing fully paid bonus shares to the shareholders.

 It can be written off in the preliminary expenses of the company.
 It can be used by paying the premium payable for the redemption of any
redeemable preference shares or debentures.
 Securities premiums can also be utilized by writing off the expenses incurred during
the issue of shares and debentures. The expenses include discounts allowed or
commissions paid for issuing the shares.
 The money can be used to buy back its own shares.
Ques 21. In the absence of Partnership deed state the provision of Indian
Partnership Act 1932, which becomes applicable.
Ans. If there is no partnership deed or when there is no express statement in the
partnership deed, then the following provisions of the Act will apply:
(i) Remuneration to partners
No salary or remuneration is allowed to any partner. [Section 13(a)]
(ii) Profit sharing ratio
Profits and losses are to be shared by the partners equally. [Section 13(b)]
(iii) Interest on capital
No interest is allowed on the capital. Where a partner is entitled to interest on capital
contributed as per partnership deed, such interest on capital will be payable only out of
profits. [Section 13(c)]

(iv) Interest on loans advanced by partners to the firm
Interest on loan is to be allowed at the rate of 6 per cent per annum. [Section 13(d)]
(v) Interest on drawings
No interest is charged on the drawings of the partners.
Ques 22. The Directors of X Ltd. forfeited 400 shares of ₹ 10 each fully called up
on which ₹ 2,400 have been received. 300 of these shares were re-issued for ₹
2,500. Pass necessary journal entries for forfeiture and re-issue of shares.
Ans.
Particulars L.F. Dr. Cr.
Share capital A/c Dr. 4000 { 400 * 10 }
To Share Forfeited 2400
To final call 1600
Being - (Share forfeited 400 shares)
Bank a/c Dr. 2500
To share forfeited 2500
Being – (share reissue 300)
Ques 23. On 1st October 2019 purchased machinery 1,00,000 sold the same on 1st
July 2022 ₹ 37,500 Depreciation @ 10 % SLM year ended 31st march every year .
Calculate profit and loss on sale of fixed assets. on 10% deprecation SLM and also
prepare machinery Account.
Ans.

Machinery A/c
Date Particulars Amounts (₹) Date Particulars Amounts (₹)
2019 oct. 1 To Bank A/c 100,000 2020 March By dep. A/C (6 5, 000
31 Months)
2020 March By Balance C/d 95 ,000

31 1,00,000
1,00,000
2020 April 1 To balance 95, 000 2021 March By dep A/c (12 10 ,000
b/d 31 Month)
2021 March By balance C/d 85, 000
95,000 31 95,000
2021 April 1 To balance 85, 000 2022 March By dep. A/c 10 ,000
b/d 31 (12 Month)

2022 March By balance C/d 75, 000
85, 000 31 85, 000
2022 April 1 To balance 75, 000 2022 June 30 By dep. A/c 25,00
b/d (3 Month)
2022 June 30 By Bank A/c 37500
(sale)
By P & L A/c 35000

2022 June 30
75, 000 75, 000

Ques 24. A club has paid rent of ₹ 20000 in the year 2013. Rent still to be paid
amounts to ₹ 2,000. Amount of ₹ 1,500 was paid in 2012 on account of the year
2013. Calculate the amount to be taken to Income & expenditure A/c of 2013.
Ans. Rent paid in 2013 20,000
Add Rent outstanding for 2013 2,000
Add Rent paid in advance in 2012 for the year 2013 1,500
Rent for 2013 to be charged to Income and Expenditure A/c 23,500
Ques 25. The following is the Receipts and Payments Account of Help AID Society
of India for the year ended 31st December, 2013.
Receipts and Payments A/c
Receipts Amount Payments Amount
Balance b/d 8,400 Salaries 12,000
Subscriptions 7,800 Rent 6, 000
Entrance Fees 600 Purchase Vans 28, 000
Government Grant 30, 000 Expenses of motor Vans 6, 400
Donations For buildings 25,000 Laundry charges 5,200
Fund
Interest Received 2,400 Drugs and incidental 9,600
charges
Publicity expenses 4,000
Balance C/d 3, 000
74,200 74,200

Additional Information:
1. Subscription outstanding amounted to ₹ 1,500
2. Interest accrued but not received ₹ 600
3. Salary outstanding is ₹ 1,200
4. Provide depreciation on Motor Van @ 20%
Prepare Income & Expenditure A/c.
Ans. Books of Help AID Society of India
Income & Expenditure A/c
for the year ending December 31, 2013

Ques 26. From the following Balance Sheets of X Ltd., prepare Cash Flow
Statement:
Ans.
X Ltd.
Cash Flow Statement
for the year ended 31st March, 2014
Particulars Amount (₹) Amount (₹)
Cash Flow from Operating Activities
Profit for the Year (Difference between Closing and
Opening Surplus, i.e., Balance in Statement of Profit 1,30,000
and Loss) (₹ 2,30,000 - ₹ 1,00,000)

Add: Decrease in Current Asset and Increase
in Current Liabilities:
Decrease in Trade Receivables 50,000
1,80,000
Less: Increase in Current Asset and Decrease
in Current Liabilities:
Increase in Inventories (1,00,000)
Decrease in Trade Payables (2,50,000) (3,50,000)
Cash Used in Operating Activities
(1,70,000)
Cash Flow from Investing Activities
(1,60,000)
Cash Payment for Land Purchased
(1,60,000)
Cash Used in Investing Activities
Cash Flow from Financing Activities

5,00,000
Cash Proceeds from Issue of Share

Cash Flow from Financing Activities 5,00,000
Net Increase in Cash and Cash Equivalents 1,70,000
Add: Cash and Cash Equivalents in the Beginning 3,00,000
Cash and Cash Equivalents at the End 4,70,000
Ques 27. Fashion Fabrics Ltd. issued 100000 shares of ₹10 each on 1st April, 2014.
The
amount payable on these shares was as under:
₹ 2 per share on application.
₹ 3 per share on allotment.
₹ 5 per share on call.
Ans.

Fashion Fabrics Ltd.
Journal Entries

Ques 28. Explain the following ratios with its significance:
(a) Inventory Turnover ratio
(b) Trade Payables Turnover ratio
Ans. (a) Inventory Turnover ratio: -
Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory
Where average inventory refers to arithmetic average of opening and closing inventory,
and the cost of revenue from operations means revenue from operations less gross
profit.
Significance: It studies the frequency of conversion of inventory of finished goods into

revenue from operations. It is also a measure of liquidity. It determines how many times
inventory is purchased or replaced during a year. Low turnover of inventory may be due
to bad buying, obsolete inventory, etc., and is a danger signal. High turnover is good but
it must be carefully interpreted as it may be due to buying in small lots or selling quickly
at low margin to realise cash. Thus, it throws light on utilisation of inventory of goods.
(b) Trade Payables Turnover ratio = Net Credit purchases/ Average trade payable
Where Average Trade Payable = (Opening Creditors and Bills Payable + Closing
Creditors and Bills Payable)/2
Average Payment Period = No. of days/month in a year / Trade Payables Turnover

Ratio
Significance: It reveals average payment period. Lower ratio means credit allowed by
the supplier is for a long period or it may reflect delayed payment to suppliers which is
not a very good policy as it may affect the reputation of the business. The average
period of payment can be worked out by days/ months in a year by the Trade Payable
Turnover Ratio.

Ques 29. Calculate ‘Gross Profit Ratio’ from the following information:
Sales 3,80,000
Cost of Revenue from operations 2,20,000
Sales Returns 80,000
Operating Expenses 25,000
Ans. Gross Profit Ratio = Gross Profit / Revenue from Operations (Net Sales) *100
Gross Profit = Net sales – Cost of revenue from operations
Net Sales = Sales - Sales return
Net sales = 3, 80, 000 - 80,000 = ₹ 3,00,000
Gross Profit = Net sales – Cost of revenue from operations
= 3,00,000 - 2,20,000
= 80, 000
Gross Profit Ratio = Gross Profit / Revenue from Operations (Net Sales) *100
= 80, 000 / 3,00,000 * 100
= 26. 66 %
Ques 30. Ideal current ratio of a company is:
(a) 1 : 1
(b) 3 : 2
(c) 2 : 1
(d) 1 : 2

Ans. (c) 2: 1
Reasons: -
Ideal level of current ratio is 2:1. High ratio indicates under trading and over
capitalization. Low ratio indicates over trading and under capitalization. It is most widely
used of all analytical devices based on the balance sheet.
Ques 31. Give the meaning of work sheet.
Ans. The term Worksheet used in Excel documents is a collection of cells organized in
rows and columns. It is the working surface you interact with to enter data. Each
worksheet contains 1048576 rows and 16384 columns and serves as a giant table that
allows you to organize information.
Ques 32. What is meant by ‘Payroll Accounting Statement’? Explain its any three
important components
Ans. Payroll is the sum total of the compensation that a business should pay its
employees on a given date or for a said period. It can be defined as a list of all the
employees working in an organization. In addition, it may also refer to the process of

calculation and distribution of wages and taxes.
Payroll comprises of the following components:
Employee Details
In addition to the compensation paid to the employees, payroll also includes the details
of all the employees in an organization like names, addresses, social security numbers,
and tax deductions.

Salaries and Wages
The fixed amount to be paid to the employees on a monthly basis is known as salary. On
the other hand, wages are based on the working hours. A specific rate of pay is set up
for each hourly employee. The total wages are calculated by multiplying the rate of pay
with number of hours the employee works.
Overtime
Some organizations pay an overtime to its employees for the extra hours they work.
Generally, the overtime hours begin after an employee works more than 36 hours a
week. It is one and a half times the normal rate of pay.
Ques 33. Explain the features of ‘Electronic Spreadsheet.
Ans.
1. Workbook - This is a collection of multiple worksheets in a single file
2. Worksheet - This is a single page of a workbook. It is an equivalent of a work area
in Microsoft Word. A worksheet is made up of rows and columns which intersect to
form cells. Worksheets are labelled sheet1, sheet2, sheet3 by default, but they can
be renamed. A workbook by default has 3 worksheets, however, these can be
increased in the user’s interest and renamed
3. Columns - These are vertical lines that run through the worksheet. Worksheet
columns are labelled by letters; A, B, C, D, E… which are displayed in grey buttons

across the top of the worksheet
4. Rows - Are horizontal lines across a worksheet. Worksheet rows are labelled by
numbers; 1, 2, 3, 4, 5… which are displayed in grey buttons across the left of the
worksheet
5. A cell - This is an intersection of a column and a row. Each cell on the spreadsheet
has a cell.

Ques 34. What is meant by ‘Resizing of Chart’?
Ans. When you create a new chart, it has an initial size. Sometimes, the data in the chart
do not perfectly fit the size of the chart. In case of a table chart the columns and rows
may not perfectly fit the data in it. To make data fit the chart, you can resize the chart.
Ques 35. Explain the steps to create tables in excess.
Ans.
1. Click the Create tab.
2. Click Table.
3. Click the Click to Add field heading
4. Select the field type
5. Type a name for the field
6. Repeat Steps 3-5 to add the remaining fields to your table.

7. When you’re finished adding fields, click the Close button and click Yes to save your
changes.
8. Enter a name for your new table.
9. Click OK.
Ques 36. What is a ‘Pivot Table’? State its features and any four advantages for the
users
Ans. A pivot table is a powerful data summarization tool that can automatically sort,
count, and sum up data stored in tables and display the summarized data.
Features: -
A PivotTable is an interactive way to quickly summarize large amounts of data. You can
use a PivotTable to analyze numerical data in detail, and answer unanticipated questions

about your data. A PivotTable is especially designed for: Querying large amounts of data
in many user-friendly ways.
Advantages: -
1. They allow you to see how the data works.
Pivot tables are one of the only tools available to users that can provide deep insights
into analytics data. Multiple reports can be generated with this tool off the same
collected data within a single file.
2. It can work with SQL exports.
If the pivot table is being used on Microsoft Excel, then the tool is able to work with any
SQL export.
3. The data is easier to segment.
Analytics that are gathered into a spreadsheet or database are easier to segment thanks
to pivot tables.
4. You can create instant data.
Whether you program equations directly into the pivot table or you rely on formulas,
instant data can be created with this tool.

Accounts Class 12th English Medium

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Accounts Class 12th English Medium

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ACCOUNTANCY

3. ACCOUNTING CONVENTIONS AND STANDARDS

10. BANK RECONCILIATION STATEMENT

11. BILLS OF EXCHANGE

12. ERRORS AND THEIR RECTIFICATION

15. PROVISIONS AND RESERVES

18. FINANCIAL STATEMENTS – II

19. NOT FOR PROFIT ORGANISATION - AN INTRODUCTION

20. FINANCIAL STATEMENTS (NOT FOR PROFIT ORGANISATION)

22. PARTNERSHIP: AN INTRODUCTION

23. ADMISSION OF A PARTNER

24. RETIREMENT AND DEATH OF A PARTNER

All Rights reserved  Manish Verma Official Channel, Visit https://manishvermaofficial.com/

26. COMPANY: AN INTRODUCTION

27. ISSUE OF SHARES

29. REISSUE OF FORFEITED SHARES

30. ISSUE OF DEBENTURES

31. FINANCIAL STATEMENTS ANALYSIS - AN INTRODUCTION

33. ACCOUNTING RATIOS - II

34. CASH FLOW STATEMENT

35. ELECTRONIC SPREAD SHEET

37. GRAPHS AND CHARTS FOR BUSINESS

38. DATABASE MANAGEMENT SYSTEM

All Rights reserved  Manish Verma Official Channel, Visit https://manishvermaofficial.com/

ratio of 2: 1. What is the sacrificing ratio of X and Y?

Ans. b) Diminishing value

All Rights reserved  Manish Verma Official Channel, Visit https://manishvermaofficial.com/

a) limited to the capital employed by them

b) limited to their profit share

Ques 5. Sale of the old newspaper is

Ans. a) Revenue Receipt.

Ques 6. According to Section 78 of the companies Act, the amount in the

Securities Premium A/c cannot be used for the purpose of

a) Issues of fully paid bonus shares

d) Writing off commission or discount on issues of shares

Ans. b) Writing off losses of the company

All Rights reserved  Manish Verma Official Channel, Visit https://manishvermaofficial.com/

a) Dr. Side of Income and Expenditure A/c

b) Cr. Side of Income and Expenditure A/c

c) Cr. Side of Receipts and Payments A/c

Ans. b) Cr. Side of Income and Expenditure A/c

Ques 8. Partnership deed is also called

(a) Articles of Association

(b) Principles of Partnership

(c) Articles of Partnership

Ans. (c) Articles of Partnership

Ques 9. In which of the following case 'Realization Account' is prepared?

b) On dissolution of the firm

Ans. b) On dissolution of the firm

Ques 10. Debit balance of Trading Account is known as:

All Rights reserved  Manish Verma Official Channel, Visit https://manishvermaofficial.com/

Ques 11. Which statement are prepared by the Not-for-profit Organisations?

a) Receipt and payment Account

b) Income and Expenditure Account

d) All the above

Ans. d) All the above

Ques 12. Interest paid on calls in Advance will be debited to:

b) Interest on calls in Advance A/c

c) Calls in Advance A/c

Ans. b) Interest on calls in Advance A/c

Ans. c) Under subscribed

called as issued at: