SB

PD

AI

PU

BLIC

TO

NS

© C

OPYR

IGH

T

OBJECTIVE

ACCOUNTANCYClass XII

Code : 9672

Price : ` 50/-

ISBN : 978-93-5167-864-9

Dr. S. K. Singh M. Com., Ph. D.

Recipient of

Rashtriya Gaurav Award,

Asian Admirable Achiever &

included in Asia/Pacific

Who's who

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

SB

PD

AI

PU

BLIC

TO

NS

© C

OPYR

IGH

T

First Part–Objective Questions

BIHAR SCHOOL EXAMINATION BOARD

(SENIOR SECONDARY), PATNA

Based on

and Question Paper Pattern, 2015

Revised Examination Pattern

Type of Questions

01 to 40 Multiple Choice Questions 40 × 1 = 40

Total = 40 Total Marks = 40

No. of Questions Marks

01 10 10 × 3 = 30

11 to 15 Long Answer Type Questions 5 × 6 = 30

Total = 15 Total Marks = 60

No. of Questions Type of Questions Marks

to Short Answer Type Questions

MARKING SCHEME

2nd Part–Non-Objective Questions

SB

PD

AI

PU

BLIC

TO

NS

© C

OPYR

IGH

T

v/;k; i`"B&la[;k

1.1. 1—3

1. Accounting for Partnership Firms—Fundamentals 4—7

2. Reconstitution of Partnership—Change in Profit Sharing Ratio Among the 7—10

Existing Partners

3. Goodwill : Meaning, Nature, Factors Affecting and Methods of Valuation 10—12

4. Reconstitution of Partnership : Admission of a Partner 13—17

5. Reconstitution of Partnership—Retirement of a Partner 18—21

6. Reconstitution of Partnership—Death of a Partner 21—24

7. Dissolution of a Partnership Firm 24—27

1. Issue of Shares 28—31

2. Forfeiture and Re-issue of Shares 32—34

3. Issue of Debentures 34—36

4. Redemption of Debentures 37—39

5. Financial Statements of a Company: Balance Sheet 40—42

6. Financial (Statement) Analysis 42—44

7. Tools of Financial Analysis : Comparative Statements 45—46

9. Accounting Ratios 46—51

10. Cash Flow Statement 52—56

l 1—14

l 1—2

l 1—3

Accounting for Not-for-Profit Organisations

Latest Model Paper

OMR Sheet

Board Examination Paper

ContentsContentsContents

SB

PD

AI

PU

BLIC

TO

NS

© C

OPYR

IGH

T

l : Dr. S. K. Singh

l : Dr. S. K. Singh

l :

l :

l :

l : MkW- flag ,oa xqIrk

l : MkW- flag ,oa xqIrk

l : MkW- vkj- ;w- flag

l :

l :

l : MkW- vuqie vxzoky

l :

l : Dr. Anupam Agrawal

Dr. Singh & Gupta

Dr. Singh & Gupta

Dr. Singh & Gupta

Dr. Sharma & Gupta

Dr. Anupam Agrawal

Accountancy

Prob. & Sol. in Accountancy

Project Work in Accountancy

m|ferk

Entrepreneurship

izSfDVdy m|ferk

O;kolkf;d v/;;u

O;kolkf;d v/;;u

Business Studies

Project Work in Business Studies

vFkZ'kkL=

Economics

Prob. & Sol. in Economics

MkW- flag ,oa xqIrk

“The reading of all good books is likea conversation with the finest man.”

English Edition & Solution of this book is also availableEnglish Edition & Solution of this book is also available

SB

PD

AI

PU

BLIC

TO

NS

© C

OPYR

IGH

T

Chapter 1.1ACCOUNTING FOR NOT-FOR-PROFIT

ORGANISATIONS

Instruction : In the following questions there are four options of which only one is correct. Youhave 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 (D) None of these

4. Legacies should be treated as—

(A) Liability (B) A Revenue Receipt (C) A Capital Receipt (D) None of these

5. Payment of Honorarium to secretary is treated as— (B.S.E.B., 2012, 13)

(A) Capital Expenditure (B) Revenue Expenditure

(C) Cash Expenses (D) None of these

6. Specific donation is—

(A) Capital Receipt (B) Revenue Receipt (C) Asset (D) None of these

7. Income and Expenditure Account records—

(A) Capital items (B) Revenue items (C) A and B both (D) None of these

8. Outstanding subscription is a/an— (B.S.E.B., 2013)

(A) Income (B) Asset (C) Liability (D) None of these

9. Entrance fee, unless otherwise stated, is treated as—

(A) Revenue Receipts (B) Capital Receipts

(C) Liability (D) None of these

10. Life membership fee received by a Club is—

(A) Revenue Receipt (B) Capital Receipt

(C) A and B both (D) None of these

11. All receipts of capital nature are shown in—

(A) Income and Expenditure A/c (B) Balance Sheet

(C) P. & L. A/c (D) None of these

12. All items of revenue in nature are shown in—

(A) Income and Expenditure A/c (B) Balance Sheet

(C) A and B both (D) None of these

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) (D) None of these

OBJECTIVE ACCOUNTANCY

SB

PD

AI

PU

BLIC

TO

NS

© C

OPYR

IGH

T

18. Most transactions in non-trading concerns are—

(A) Cash (B) Credit (C) Both (A) and (B) (D) None of these

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 (D) None of these

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) ` 36,000

24. 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) ` 2,00,000

25. 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’ (D) None of these

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) ` 4,600

28. If income is ` 16,000 and ‘deficit’ debited to capital fund is ` 4,300, then expenditure is—

(A) ` 16,000 (B) ` 4,300 (C) ` 20,300 (D) None of these

29. 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 (D) None of these

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 (D) None of these

2 SBPD Publications Financial Accounting—XII

SB

PD

AI

PU

BLIC

TO

NS

© C

OPYR

IGH

T

33. For non-trading organisation honorarium is— (B.S.E.B., 2010, 11)

(A) A Capital Expenditure (B) A Revenue Expenditure

(C) An Income (D) None of these

34. Receipts & Payments A/c is a— (B.S.E.B., 2010)

(A) Personal A/c (B) Real A/c (C) Nominal A/c (D) None of these

35. Income & Expenditure A/c is a—

(A) Personal A/c (B) Real A/c (C) Nominal A/c (D) None of these

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 5,000 28. Expenditure = Income + Deficit

Less : Advance Subscriptions for next = ` 16,000 + 4,300 = ` 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

SB

PD

AI

PU

BLIC

TO

NS

© C

OPYR

IGH

T

Chapter 1ACCOUNTING FOR PARTNERSHIP FIRMS :

FUNDAMENTALS

Instruction : In the following questions there are four options of which only one is correct. Youhave to choose the correct option and mark in the answer sheet :

1. Partner's salary is debited to—

(A) Trading Account (B) Profit and Loss Account

(C) Profit & Loss Appropriation Account (D) None of these

2. Current Account of the partners should be opened, when capital are—

(A) Fluctuating (B) Fixed (C) Circulating (D) None of these

3. Maximum Number of Partnership firm performing banking business is—

(A) 20 (B) 15 (C) 10 (D) None of these

4. Liability of a partner is—

(A) Limited (B) Unlimited

(C) Limited to Capital (D) None of these

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) 1952

9. Partnership Agreement can be :

(A) Oral (B) Written (C) Oral or Written (D) None of these

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 (D) None of these

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 (D) None of these

12. In the absence of partnership deed, the partner will be allowed interest on the amount advancedto 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 (D) None of these

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 (D) None of these

16. In an ordinary partnership, maximum number of partners are—

(A) 20 (B) 10 (C) 15 (D) 5

4 SBPD Publications Financial Accounting—XII

SB

PD

AI

PU

BLIC

TO

NS

© C

OPYR

IGH

T

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 (D) None of these

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 drawingswill 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 ` 1,200 (D) None of these

24. 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 (D) None of these

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) ` 350

28. 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’scapital— (B.S.E.B., 2012, C.P.T., 2010 June, 2009, 13)

(A) 8% (B) 6% (C) 9% (D) None of these

31. Interest on Partner’s capital is—

(A) An expenditure (B) An appropriation (C) A gain (D) None of these

32. Calculate interest on drawing @12% 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

Objective Accountancy 5

Objective Accountancy Class 12th

Publisher : Sbpd Publications ISBN : 9789351678649 Author : Dr. S.K Singh

Type the URL : http://www.kopykitab.com/product/4172

Get this eBook

30%OFF