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MCQ Questions for Class 12 Accountancy set-5
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MCQ Questions for Class 12 Accountancy set-5
1
Abhishek, Rajat and Vivek are partners sharing profits in the ratio of 5 : 3 : 2. If Vivek retires, the new profit sharing ratio between Abhishek and Rajat will be:
A
3 : 2
B
5 : 3
C
5 : 2
D
None of these
2
The balance of Joint Life Policy Account and Joint Life Policy Reserve A/c is:
A
Always Equal
B
Always Unequal
C
Not Necessary
D
None of these
3
Anand, Bahadur and Chander are partners sharing profit equally. On Chander’s retirement, his share is acquired by Anand and Bahadur in the ratio of 3: 2. The new profit-sharing ratio between Anand and Bahadur will be:
A
8 : 7
B
4 : 5
C
3 : 2
D
2 : 3
4
Profit and loss on revaluation at the time of retirement is shared by:
A
Remaining Partners
B
All Partners
C
New Partner
D
None of these
5
X, Y, Z are equal partners in a firm. Z retires from the firm. The new profit-sharing ratio between X and Y is 1:2. The gaining ratio will be:
A
3 : 2
B
2 : 1
C
4 : 1
D
Only Y gains by 1/3
6
X, Y, Z are partners sharing profits in the ratio of 3 : 4 : 4. Y retires and X and Z share their profits in equal ratio. New ratio of X and Z will be :
A
1 : 2
B
2 : 1
C
3 : 1
D
1 : 1
7
A, B and C are partners. Their capitals are ₹ 1,00,000, ₹ 75,000 and ₹ 50,000 respectively. On C’s retirement his share is acquired by A and B in the ratio of 6 : 4 Gaining ratio will be :
A
3 : 2
B
2 : 2
C
2 : 3
D
None of these
8
At the time of retirement of partner, firm gets from the insurance company against joint policy taken jointly for all the partners :
A
Policy Amount + Bonus
B
Surrender Value
C
Policy Amount
D
None of these
9
Partnership Act provides that interest on amount of capital balance left by the retired partner be paid at:
A
5%
B
6%
C
Bank Rate
D
8%
10
Heri, Roy and Prasad are partners and profit-sharing ratio is 3: 5:1. Roy now wants to retire and his share is taken by Prasad. Find the new ratio of Hari and Prasad:
A
1 : 2
B
2 : 1
C
3 : 5
D
Equal
11
A, B and C are partners with profit-sharing ratio as 5 :3 :2. A retires. Find the gaining ratio :
A
3 : 2
B
5 : 3
C
5 :2
D
None of these
12
Surrender value of an insurance policy means that value:
A
Which is received an death of a partner
B
Which is received when a policy matures
C
Which can be received before the due date of the policy
D
None of the above
13
P, Q and R are partners and share profit in the ratio of 5:3:2. R retires and surrenders 3/5th of his share in favour of P and 2/5th of the share to Q. Find new profit sharing ratio:
A
7 : 3
B
1 : 2
C
31 : 19
D
None of these
14
Govind, Hari and Pratap are partners. On retirement of Govind, the goodwill already appears in the Balance Sheet at ₹ 24,000. The goodwill will be written off:
A
By debiting all Partners’ Capital Accounts in their old profit-sharing ratio
B
By debiting remaining Partners’ Capital Accounts in their new profit-sharing ratio
C
By debiting retiring Partner’s Capital Account from his share of goodwill
D
None of these
15
Goodwill is paid out of the retiring partner in :
A
Old Profit-sharing Ratio
B
Capital Ratio
C
Equal Ratio
D
None of these
16
On retirement of a partner, his share of goodwill is written off among continuing partners in there :
A
New Profit-sharing Ratio
B
New Capital Ratio
C
Gaining Ratio
D
None of these
17
On retirement of a partner, the retiring partner’s capital account will be credited with :
A
His/her share of goodwill
B
Goodwill of the firm
C
Shares of goodwill of remaining partners
D
None of these
18
In the event of dissolution of partnership firm, the provision for doubtful debts is transferred to :
A
Realisation Account
B
Partners’ Capital Accounts
C
Sundry Debtors Account
D
None of the above
19
On dissolution, if a partner undertakes to make payment of a liability of the firm, the account to be debited is:
A
profit & Loss Account
B
Realisation Account
C
Partner’s Capital Account
D
Cash Account
20
At the dime of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to :
A
Realisation Account
B
Creditors’ Account
C
Partners’ Capital Accounts
D
Profit & Loss Account
21
On dissolution, goodwill account is transferred to :
A
In the Capital Accounts of Partners
B
In the Credit of Cash Accounts
C
In the Debit of Realisation Account
D
In the Credit of Realisation Account
22
At the time of dissolution of partnership firm, fictitions assets are transferred to :
A
Capital Accounts of Partners
B
Realisation Account
C
Cash Account
D
Partners’ Loan Account
23
On dissolution of a firm, a partner paid 1,500 Rs. for firm’s realisation expenses. Which account will be debited ?
A
Cash Account
B
Realisation Account
C
Capital Account of the Partner
D
Profit & Loss A/c
24
On taking responsibility of payment of realisation expenses by a partner, the account credited will be :
A
Realisastion Account
B
Cash Account
C
Capital Account of the Partner
D
None of the above
25
When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to :
A
Realisation Account
B
Partners’ Capital Account
C
Partner’s Loan Account
D
None of these
26
Which of the following is transferred to Realisation Account ?
A
Balance of Profit Account
B
Balance of Profit & Loss Account
C
Amount realised on sale of assets
D
Reserves
27
On disolution of firm, loss calculated in realisation account is debited/credited to which account ?
A
Cash Account
B
Partners’ Capital Accounts
C
Realisation Account
D
None of these
28
Which of the following is not transferred to Realisatsion Account ?
A
Balance of Cash Account
B
Balance of Reserves
C
Balance of Profit & Loss Account
D
All of the above
29
On taking responsibility of payment of a liability of ₹ 20,000 by a partner, the account credited will be :
A
Realisation Account
B
Cash Account
C
Capital Account of the Partner
D
Liability Account
30
Cash balance shown in the Balance Sheet is shown on dissolution of firm in :
A
Realisation Account
B
Cash Account
C
Capital Account
D
None of the Account
31
There was an Unrecorded asset of ₹ 12,000 which was taken over by a partner at ₹ 10,500. Partner’s Capital Account will be debited by…….
A
₹ 12,000
B
₹ 10,500
C
₹ 1,500
D
₹ 32,500
32
On dissolution of a firm, Bank overdraft is transferred to:
A
Cash Account
B
Bank Account
C
Realisation Account
D
Partners’ Capital Account
33
On dissolution of a firm, Partner’s Loan Account is transferred to:
A
Realisation Account
B
Partner’s Capital Account
C
Partner’s Current Account
D
None of these
34
On dissolution, when a partner takes over an asset……….is debited :
A
Realisation Account
B
Partner’s Capital Account
C
Cash Account
D
Asset Account
35
After transferring liabilities like creditors and bills payable in the Realisation Account in the absence of any informations regarding their payment, such liabilities are treated as :
A
Never paid
B
Fully paid
C
Partly paid
D
None of these
36
Unrecorded liabilities when paid are shown in :
A
Debit side of Realisation Account
B
Debit side of Bank Account
C
Credit side of Realisation Account
D
Credit side of Bank Account
37
Payment of credit balance of Partners’ Capital Accounts at the time of dissolution of a firm is made to:
A
Partners
B
Firm
C
Wife
D
None of these
38
On dissolution of a firm Partner’s Loan A/c is transferred to:
A
Realisation A/c
B
Partners’ Capital A/cs
C
Suspense A/c
D
None of these
39
At the time of dissolution of firm book value of assets is recorded in which side of the Realisation Account ?
A
Debit Side
B
Credit Side
C
All of the above
D
Liabilities Side
40
Realisation expenses are recorded in which side of Realisation A/c:
A
Liabilities
B
Assets
C
Credit
D
Debit
41
Realisation Account is a :
A
Personal A/c
B
Nominal A/c
C
Read A/c
D
None of these
42
On dissolution of the firm, Partners’ Capital Accounts are closed through :
A
Realisation Account
B
Drawings Account .
C
Bank Account
D
Loan Account
43
Unrecorded assets when taken over by a partner are shown in:
A
Debit side of Realisation A/c
B
Debit side of Bank A/c
C
Credit side of Realisation A/c
D
Credit side of Bank A/c
44
Expenses on dissolution of firm is called :
A
Realisation Expenses
B
Legal Expenses
C
Loss Expenses
D
None of these
45
Sundry creditors amounted to ₹ 8,000. They were paid at a discount of 5 %. Realisation A/c will be debited by :
A
₹ 8,000
B
₹ 7,600
C
₹ 400
D
₹ 8,400
46
Amount realised from sale of assets is recorded in :
A
Debit side of Realisation Account
B
Credit side of Realisation Account
C
Liabilities side of Balance Sheet
D
Assets side of Balance Sheet
47
A firm can be voluntarily dissolved by the partners :
A
On Majority basis
B
On 3/4 Member’s decision
C
On 1/2 Member’s decision
D
None of these
48
On dissolution of a firm, amount realised from an unrecorded asset is credited to:
A
partners’ Capital Accounts
B
Cash Account
C
Realisation Account
D
Revaluation Account
49
Profit/loss on Realisation Account is distributed among partners:
A
In Profit-sharing Ratio
B
In Capital Ratio
C
Equally
D
None of these
50
Which of the following is correct profit or loss in case the amount received from the sale of assets is ₹ 50,000, total assets is ₹ 60,000, total liabilities ₹ 20,000 and realisation expenses ₹ 2,000 ?
A
₹ 12,000 Loss
B
₹ 32,000 Profit
C
₹ 30,000 Loss
D
₹ 12,000 Profit
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