Quiz acc GLT Saraswati Bal Mandir Nehru Nagar Akhil Bhartiya Vidya Sansthan Samarth Shiksha Samiti

1. Navya Anubhuti
Welcome to GLT
SARASWATI Bal Mandir Sr.
Sec. School Nehru Nagar
Akhil Bhartiya Vidya
Sansthan
Run By SAMARTH SHIKSHA SAMITI

2. Accountancy
Quiz
2016-17
of
Class XII

3. Question : 1.
State any one condition
under which capital balance
may change under the system
of fixed capital account.

4. Answer 1.
Capital balance may change
under fixed capital.
(a) Additional Capital
(b) Withdrawal of capital

5. Question : 2.
A and B are partners.
A advances loan of Rs. 6000
to the firm.
Calculate interest on loan in
absence of partnership deed .

6. 6000x6/100= Rs. 360
Answer: 2.

7. Question : 3 .
C and D are partners in a firm.
In the absence of partnership deed,
how the profits of the
firm would be distributed between the
partners?

8. Answer: 3.
Equally (1:1)

9. Question : 4.
E and F have invested Rs. 20,000
and 30,000 respectively as partners
of a firm. Calculate the amount
allowed as interest on capital if rate
of interest is 2.5% p.a. as per
Partnership deed.

10. Answer: 4.
Interest on E’s
capital= 20,000x2.5/100=Rs 500
Interest on F’s
capital= 30,000x2.5/100=Rs 750

11. Audience Question : 5.
State all the provisions of Partnership
Act,1932 when partnership deed is silent in
respect of
● Partner’s salary/commission,
● Interest on capital,
● Interest on drawings,
● Interest on loan,
● Profit/loss

12. Provisions when the partnership deed is
silent .
1.No salary/commissions will be given to
partners.
2.Interest on partner’s loan will be
provided at 6%p.a.
3. No Interest on Drawings will be
charged.
4.Profit/losses would be shared equally.
5.No Interest on capital to be allowed.
Answer : 5

13. Question : 6.
If Rs. 2000 per quarter is withdrawn by
a partner at the end of each quarter.
Calculate the interest on drawings
when rate is 6% p.a.

14. Answer: 6.
2000 X 4 X 4.5 X 6 = Rs. 180
12 100

15. Question : 7.
If Rs. 4000 is withdrawn on
the first day of every month,
calculate interest on
drawings if rate is 2% p.a.

16. 4000 X 12 X 2 X 6.5 = Rs. 520
100 12
Answer: 7.

17. Question : 8.
If Rs. 10,000 is withdrawn
on the first day for six
months ended 30.9.2016,
calculate interest on
drawings at the rate of 5%
p.a. (Fin. Year 1 Apr 2016 -31 Mar 2017)

18. 10000 X 6 X5/100 X 3.5/12 = Rs 875
Answer: 8.

19. Question : 9.
If Rs. 5000 is withdrawn
every month in a year and
rate of interest on drawings
is 4% p.a. Calculate interest
on drawings.

20. 5000 X 12 X 4 X 6 = Rs. 1200
100 12
Answer: 9.

21. Audience Question : 10.
If a fixed amount is withdrawn
on the
(a) First day of every month
(b) 15th day of every month
(c) Last day of every month
For what period, the interest
on total drawings will be
calculated?

22. Answer: 10.
(a) 6.5 months
(b) 6 months
(c) 5.5 months

23. Question : 11.
Ravi and Mohan were partners
in a firm sharing profits in the
ratio of 7:5. The profit of the
firm was Rs. 1,20,000 which
was wrongly distributed
equally.
Give the adjustment entry .

24. Answer: 11
Date Particulars LF Dr Cr
Mohan’s capital A/C Dr
To Ravi’s capital A/C
(Being profit wrongly distributed now
rectified.)
10,000
10,000

25. Question : 12.
A,B and C are partners sharing
profit in the ratio of 3:2:1.
Profit of the firm Rs. 60,000 is
already distributed among the
partners in the ratio 2:2:1.
Give the Adjustment entry to
rectify the situation.

26. Answer: 12
Date Particulars LF Dr Cr
B’s capital A/C Dr
C’s capital A/C Dr
To A’s capital A/C
(Being profit wrongly distributed now
rectified)
4,000
2,000
6,000

27. Question : 13.
X,Y and Z are partners sharing
profits in the ratio of 4:3:2.
Goodwill of the firm is valued
at Rs. 36,000. With effect from
1.4.2016 ,they agreed to share
future profit equally.
Give Journal entry .

28. Answer: 13
Date Particulars LF Dr Cr
Z’s capital A/C Dr
To X’s capital A/C
(Being adjustment entry passed)
4,000
4,000
Sacrificing Ratio
X=4/9 - ⅓ = 1/9
Y=3/9 - ⅓ = 0
Z =2/9-⅓= 1/9 (gain)

29. Question : 14.
X and Y are partners sharing
profits and losses in the ratio of
2:1.
They admit Z into partnership with
¼ th share in profit which he
acquires equally from X and Y.
Z brings in Rs.1,65,000 as capital
and Rs. 30,000 as goodwill in
cash.
Pass the necessary Journal entry

30. Answer: 14
Date Particulars LF Dr Cr
Bank A/C Dr
To Z’s capital A/C
To premium for goodwill A/C
(Being premium & capital brought in by new partner
on admission)
Premium for goodwill A/C Dr
To X’s capital A/C
To Y’s capital A/C
(Being amount of premium distributed among
sacrificing partners in S.R ratio
1:1)
1,95,000
30,000
1,65,000
30,000
15000
15000

31. Audience Question : 15.
P and Q are partnerssharing profits in
the ratio of 7:5.
They admit R into partnership for ¼ th
Share. P and Q decide to sacrifice
equallyfor the new partner.
What will be the sacrificing ratio?

32. Answer: 15
SACRIFICING RATIO 1:1

33. Question : 16.
Give the Journal entry to distribute
“Workmen Compensation Reserve”
of Rs 70000 at the time of retirement
of Neeti when there is a claim of Rs
25000 against it. The firm hasthree
partners Naveen, Neeti and Rajat.

34. Date Particulars L
F
Dr Cr
Workmen Compensation Reserve A/c Dr
To Liability for workmen Compensation claim
To Naveen’s Capital A/C
To Neeti’s Capital A/c
To Rajat’s Capital A/C
(Transfer of balance in Workmen Compensation
Reserve in equal ratio)
70000
25000
15000
15000
15000
Answer: 16

35. Question: 17
Guru Ltd. Invited applications 5,00,000
equity shares of Rs. 10 each at a premium of
Rs. 5 per share.
Because of favourable market conditions,
the issue was over subscribed and
applications for 15,00,000 shares were
received.
Suggest the alternatives available to Board
of Directors for allotment of shares?

36. Answer: 17
Alternative available to the Board of
Directors are:
1)Excess applications may be rejected
and remaining applications were alloted
full.
2) Shares may be allotted to all the
applications on pro-rata basis.
3) Some of the applications may be
rejected and others may be allotted on
pro –rata basis

37. Question : 18.
State with reason whether the change
in profit sharing ratio amounts to
dissolution of Partnership .

38. Answer: 18
Yes, Change in profit sharing ratio
amounts to dissolution of partnership
because existing agreement amongst
the partners comes to an end and a
new agreement comes into existence.

39. Question : 19.
What Journal entry will be passed
when the firm pays realisation
expenses of Rs. 20,000 on behalf of X,
a partner who has to bear the
expenses?

40. Date Particulars LF Dr Cr
X’s Capital A/c Dr
To Bank A/c
(Being realisation expenses
paid by firm on behalf of X)
20,000
20000
Answer: 19

41. Question : 20.
Can Securities Premium Reserve be
used as Working Capital?
Give reason .

42. Answer: 20
No ,Securities Premium Reserve
cannot be used as working Capital.
It can be used only for those purposes
which are specially mentioned as per
Section 52 of Companies Act 2013.

43. Question : 21.
The value of furniture given in the old
Balance Sheet was Rs. 66,000 which
was overvalued by 10%.
What is the effect of the transaction in
Revaluation Account.

44. Answer: 21
Furniture is to be shown on debit side
of Revaluation Account with Rs 6000.
66000 X 10/110 = Rs 6000

45. Question : 22.
When a creditor who owed us
Rs. 1,50,000 takes over an
asset of Rs. 1,20,000 in full
settlement .
What Journal entry shall be
passed?

46. Answer: 22
No Entry will be passed

47. Question : 23.
A,B and C are partners sharing in the
ratio of 3:2:1. C died and his share of
profit in the firm till the date of death
was Rs.15,000.
What Journal Entry shall be passed?

48. Answer: 23
Date Particulars L
F
Dr Cr
Profit and Loss suspense A/c Dr
To C’s capital A/c
(Being C’s share of profit
transferred to P&L Suspense)
15,000
15,000

49. Question : 24.
At what rate , interest is
payable on the amount
remaining unpaid to the
executor of deceased
partner.

50. Answer: 24
6% p.a. since it’s a partner’s loan

51. Question : 25.
Do you think that Calls
in Advance is a part of
Share Capital?

52. Answer: 25
No, Calls in Advance is
not a part of Company’s
Share Capital and no
dividend is payable on
such amount.

53. Question : 26.
X , Y and Z are partners
sharing profits in the ratio of
3:2:1.
Z retires and surrenders 2/3rd
of his share in favour of Y
and remaining to X.
Calculate new profit sharing
ratio.

54. Answer : 26
Z provides his share to X = 1/3 Of 1/6
= 1/18
X share in future will be = 3/6+ 1/18
= 9+1/18= 10/18
Z provides his share to Y= 2/3 of 1/6
=2/18
Y share in future will be = 2/6+ 2/18
= 6+2/18= 8/18
New ratio of X and Y = 10:8= 5:4

55. Question : 27.
A Co. forfeited 240 shares of Rs. 10
each issued to Rajat at a premium of
20%. He paid only application money
but not allotment and calls.
His shares were forfeited .Application
money was Rs. 4. These shares were
reissued at Rs.11.
Pass a Journal entry relating to
forfeiture of 240 shares.

56. Answer : 27
Date Particulars LF Dr Cr
Equity share capital A/C Dr
Security premium A/C Dr
To Equity share forfeiture A/C
To Calls in Arrear A/C
(Being 240 shares forfeited due to non
payment of allotment & call money)
2400
480
960
1920

57. Question : 28.
Sundram Ltd. purchased furniture for
Rs. 300,000 from Ravindram Ltd. & it
was paid by issue of equity shares of
Rs. 10 each at a premium of Rs 2 per
share.
Find out Number of shares to be issued
to Ravindram.

58. Number of equity shares to be issued = 300000/12 =
25000 shares
Answer : 28

59. Question : 29.
Sona Ltd. issued 15000 shares of Rs.
10 each . Payment on these shares is
to be made as : application 4 ,
allotment 3 and final call Rs. 3.
● Rakesh to whom 1000 shares were
allotted paid the full amount.
● Mohan to whom 100 shares were
allotted failed to pay allotment
money.
Calculate how much amount the Sona
ltd. will receive at the time of
allotment?

60. Answer : 29.
Amount due on allotment = 15000x3 = 45000
Calls in advance = 1000x3 = 3000
Total = 48000
Calls in arrear = 100x3 = (300)
Amount to be received on allotment = Rs 47700

61. Question : 30.
Rohit Ltd. purchased assets from
Rohan & Co. for Rs. 350000.
A sum of Rs. 75000 was paid by
means of bank draft and for the
balance due Rohit Ltd. issued equity
shares of Rs. 10 each at a premium of
10%.
Calculate the number of shares to be
issued.

62. Question:30
Number of equity shares to be issued =
2,75,000/11
= 25000 shares

63. Question : 31.
What will be Journal entry for
goodwill at the time of death
of a partner ?

64. Answer : 31.
Date Particulars LF Dr Cr
Remaining partner’s Capital A/C Dr
To Deceased partner’s capital A/C
(Being deceased partner’s amount of
goodwill adjusted among remaining
partners in gaining ratio)
……….
……………

65. Question : 32.
P,Q and R are partners sharing profit in
the ratio of 7:2:1. P retires and the new
profit sharing ratio between Q and R is
2:1. State the gaining ratio.

66. Answer : 32.
P Q R
OLD RATIO
NEW
RATIO
7 2
2 1
1
X 3
6 3
Gaining ratio
4 2 2:1

67. Question : 33.
B Ltd. forfeited 500 shares of Rs. 10
each fully called up for non- payment of
final call of Rs. 2 per share and re-
issued to Sunil as fully paid for Rs. 10
Per share.
What amount will be transferred to
capital reserve.

68. Answer : 33.
Called up capital 500 X 10 = 5000
Calls in arrear ( Final Call) = (1000) ( 500 X 2 )
Amount of Share forfeiture = 4000
Shares re- issued at Rs 10
No, forfeiture amount will be used in re-issue
Capital reserve = Rs 4000

69. Question : 34.
India Ltd. purchased building for Rs.
10,00,000 from Gupta Ltd.
10% of the payable amount was paid
by a cheque drawn in favour of Gupta
Ltd.
The balance was paid by issue of
shares of Rs. 100 each.
Journalise

70. Date Particulars LF Dr Cr
Building account Dr
To Gupta Ltd.
To Bank A/C
(Being assets purchased )
Gupta Ltd. Dr
To Equity Share Capital A/C
(Being 9000 shares issued to
vendor )
10,00,000
9.00,000
9,00,000
1,00,000
9,00,000
Answer : 34.

71. Audience Question :35
What Journal entry would be passed
on dissolution of the firm when an
unrecorded asset realised Rs 25000.

72. JOURNAL
Audience Answer 35:
Date Particulars LF Dr Cr
Bank Dr
To Realisation
(Being the realisation of an
unrecorded asset)
25,000
25,000