+2 Accountancy L 1

The amount received over and above the par value is credited to
1. Securities premium account
2. Forfeited shares account
3. Calls in advance account
4. Share capital account
After the forfeited shares are reissued, the balance in the forfeited shares account should be transferred to
1. Capital reserve account
2. Surplus account
3. General reserve account
4. Securities premium account
Incomplete records are generally maintained by
1. Small sized sole trader business
2. Multinational enterprises
3. Government
4. A company
A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill of the firm was valued as Rs 30,000. Find the contribution of A and C to compensate B:
1. 10,000 and 20,000
2. 15,000 and 15,000
3. 20,000 and 10,000
4. 8,000 and 4,000
That part of share capital which can be called up only on the winding up of a company is called:
1. Authorised capital
2. Called up capital
3. Reserve capital
4. Capital reserve
Opening statement of affairs is usually prepared to find out the
1. Capital in the beginning of the year
2. Loss occurred during the year
3. Capital at the end of the year
4. Profit made during the year
Statement of affairs is a
1. Statement of income and expenditure
2. Statement of assets and liabilities
3. Summary of credit transactions
4. Summary of cash transactions
The amount of credit sales can be computed from
1. Bills receivable account
2. Bills payable account
3. Total creditors account
4. Total debtors account
What is the amount of capital of the proprietor, if his assets are Rs 85,000 and liabilities are Rs 21,000?
1. Rs 1,06,000
2. Rs 21,000
3. Rs 85,000
4. Rs 64,000
Current assets excluding inventory and prepaid expenses is called
1. Tangible assets
2. Funds
3. Quick assets
4. Reserves
Pick the odd one out
1. Interest on loan from partners is allowed at 6% per annum.
2. Interest on partners’ capital is allowed at 7% per annum
3. No salary or remuneration is allowed to partners
4. Partners share profits and losses equally
As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is
1. 6% per annum
2. 5% per annum
3. 12% per annum
4. 8% per annum
Opening balance of debtors: Rs 30,000, cash received: Rs 1,00,000, credit sales: Rs 90,000; closing balance of debtors is
1. 20,000
2. 30,000
3. 40,000
4. 1,30,000
Balance of receipts and payments account indicates the
1. Loss incurred during the period
2. Excess of income over expenditure of the period
3. Total cash payments during the period
4. Cash and bank balance as on the date
Receipts and payments account records receipts and payments of
1. Capital nature only
2. Both revenue and capital nature
3. Revenue nature only
4. None of the above
Which of the following statements is not true?
1. The common–size statements show the relationship of various items with some common base, expressed as percentage of the common base
2. The tools of financial statement analysis include common-size statement
3. Notes and schedules also form part of financial statements
4. Trend analysis refers to the study of movement of figures for one year
Balaji and Kamalesh are partners sharing profits and losses in the ratio of 2:1. They admit Yogesh into partnership. The new profit sharing ratio between Balaji, Kamalesh and Yogesh is agreed to 3:1:1. Find the sacrificing ratio between Balaji and Kamalesh.
1. 3:1
2. 1:3
3. 2:1
4. 1:2
Contra voucher is used for
1. Withdrawal of cash from bank for office use
2. Reports
3. Credit purchase of assets
4. Master entry
In which voucher type credit purchase of furniture is recorded in Tally
1. Journal voucher
2. Payment voucher
3. Receipt voucher
4. Purchase voucher
Which of the following statements is not true?
1. Interpretation of the analysed data involves personal judgement.
2. All the limitations of financial statements are applicable to financial statement analysis also.
3. Financial statement analysis is only the means and not an end.
4. Expert knowledge is not required in analysing the financial statements.
Rs 25,000 withdrawn from bank for office use. In which voucher type, this transaction will be recorded
1. Receipt Voucher
2. Sales Voucher
3. Payment Voucher
4. Contra Voucher
Income and expenditure account is a
1. Nominal A/c
2. Real A/c
3. Personal A/c
4. Representative personal account
Donations received for a specific purpose is
1. Capital expenditure
2. Capital receipt
3. Revenue expenditure
4. Revenue receipt
Which of the following should not be recorded in the income and expenditure account?
1. Sale of old news papers
2. Loss on sale of asset
3. Honorarium paid to the secretary
4. Sale proceeds of furniture
A, B and C are partners sharing profits in the ratio of 4:2:3. C retires. The new profit sharing ratio between A and B will be
1. 1:2
2. 4:3
3. 2:1
4. 3:4
Income and Expenditure Account is prepared to find out
1. Profit or loss
2. Cash and bank balance
3. Surplus or deficit
4. Financial position
Which one of the following is not correctly matched?
1. Liquid ratio – Proportion
2. Fixed assets turnover ratio – Percentage
3. Gross profit ratio – Percentage
4. Debt-equity ratio – Proportion
Legacy is a
1. Capital expenditure
2. Revenue expenditure
3. Capital receipt
4. Revenue receipt
Book profit of 2017 is Rs 35,000; non-recurring income included in the profit is Rs 1,000 and abnormal loss charged in the year 2017 was Rs 2,000, then the adjusted profit is
1. 38,000
2. 36,000
3. 35,000
4. 34,000
There are 500 members in a club each paying Rs 100 as annual subscription. Subscription due but not received for the current year is Rs 200; Subscription received in advance is Rs 300. Find out the amount of subscription to be shown in the income and expenditure account.
1. 50,000
2. 49,900
3. 50,200
4. 49,800
In the absence of a partnership deed, profits of the firm will be shared by the partners in
1. None of these
2. Equal ratio
3. Capital ratio
4. Both Equal ratio and Capital ratio
Subscription due but not received for the current year is
1. An asset
2. An item to be ignored
3. A liability
4. An expense
Which is not the default group in Tally?
1. Outstanding expense
2. Investments
3. Sales account
4. Suspense account
Which of the following tools of financial statement analysis is suitable when data relating to several years are to be analysed?
1. Common size statement
2. Cash flow statement
3. Trend analysis
4. Comparative statement
In the absence of an agreement among the partners, interest on capital is
1. Allowed at bank rate
2. Not allowed
3. Allowed @ 6% per annum
4. Allowed @ 5% per annum
Accounting report prepared according to the requirements of the user is
1. Special purpose report
2. Balance sheet
3. Routine accounting report
4. Trial balance
Revaluation A/c is a
1. Nominal A/c
2. Personal A/c
3. Real A/c
4. Impersonal A/c
X, Y and Z were partners sharing profits and losses equally. X died on 1st April 2019. Find out the share of X in the profit of 2019 based on the profit of 2018 which showed Rs 36,000.
1. 1,000
2. 12,000
3. 3,000
4. 36,000
When a partner withdraws regularly a fixed sum of money at the middle of every month, period for which interest is to be calculated on the drawings on an average is
1. 12 months
2. 6 months
3. 5.5 moths
4. 6.5 months
When fixed capital method is adopted by a partnership firm, which of the following items will appear in capital account?
1. Interest on capital
2. Additional capital introduced
3. Interest on drawings
4. Share of profit
Which of the following is the incorrect pair?
1. Interest on capital – Credited to capital account
2. Interest on loan – Debited to capital account
3. Share of profit – Credited to capital account
4. Interest on drawings – Debited to capital account
Which one of the following statements is not true in relation to incomplete records?
1. It is an unscientific method of recording transactions
2. Records are maintained only for cash and personal accounts
3. Tax authorities do not accept
4. It is suitable for all types of organisations
Profit after interest on drawings, interest on capital and remuneration is Rs 10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission.
1. 150
2. 50
3. 550
4. 500
The mathematical expression that provides a measure of the relationship between two figures is called
1. Model
2. Ratio
3. Conclusion
4. Decision
Super profit is the difference between
1. Assets and liabilities
2. Average profit and normal profit
3. Capital employed and average profit
4. Current year’s profit and average profit
Which of the following is true?
1. Super profit = Average profit – Normal profit
2. Super profit = Weighted profit / number of years
3. Super profit = Average profit × Years of purchase
4. Super profit = Total profit / number of years
Identify the incorrect pair
1. Goodwill under Super profit method - Super profit × Number of years of purchase
2. Goodwill under Weighted average - Weighted average profit profit method × Number of years of purchase
3. Goodwill under Average profit method - Average profit × Number of years of purchase
4. Goodwill under Annuity method - Average profit × Present value annuity factor
Which of the following items relating to bills payable is transferred to total creditors account?
1. Bills payable accepted during the year
2. Closing balance of bills payable
3. Cash paid for bills payable
4. Opening balance of bills payable
When the average profit is Rs 25,000 and the normal profit is Rs 15,000, super profit is
1. 10,000
2. 5,000
3. 25,000
4. 15,000
If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called
1. Sacrificing ratio
2. Capital ratio
3. None of these
4. Gaining ratio
Which of the following options is used to view Trial Balance from Gateway of Tally?
1. Gateway of Tally - > Trial Balance
2. Gateway of Tally - > Reports - > Trial Balance
3. Gateway of Tally - > Reports - > Display - > Trial Balance
4. இவைகளில் ஏதுமில்லை
The total capitalised value of a business is Rs 1,00,000; assets are Rs 1,50,000 and liabilities are Rs 80,000. The value of goodwill as per the capitalisation method will be
1. 30,000
2. 1,00,000
3. 70,000
4. 40,000
On revaluation, the increase in the value of assets leads to
1. Loss
2. Gain
3. None of these
4. Expense
James and Kamal are sharing profits and losses in the ratio of 5:3. They admit Sunil as a partner giving him 1/5 share of profits. Find out the sacrificing ratio.
1. 3:1
2. 3:5
3. 5:3
4. 1:3
In the absence of an agreement, partners are entitled to
1. Commission
2. Interest on capital
3. Interest on loan
4. Salary
Which of the following statements is true?
1. Goodwill is a current asset
2. Goodwill is a fictitious asset
3. Goodwill cannot be acquired
4. Goodwill is an intangible asset
At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of
1. the old partners
2. the new partner
3. the sacrificing partners
4. all the partners
Which of the following statements is not true in relation to admission of a partner
1. Generally mutual rights of the partners change
2. The profits and losses of the previous years are distributed to the old partners
3. The firm is reconstituted under a new agreement
4. The existing agreement does not come to an end
Select the odd one out
1. Goodwill brought by new partner
2. Accumulated loss
3. Investment fluctuation fund
4. Revaluation profit
The profit or loss on revaluation of assets and liabilities is transferred to the capital account of
1. All the partners
2. The old partners
3. The new partner
4. The Sacrificing partners
A partner retires from the partnership firm on 30th June. He is liable for all the acts of the firm up to the
1. Date of his final settlement
2. End of the current accounting period
3. End of the previous accounting period
4. Date of his retirement
Salary account comes under which of the following head?
1. Direct Expenses
2. Direct Incomes
3. Indirect Incomes
4. Indirect Expenses
On retirement of a partner from a partnership firm, accumulated profits and losses are distributed to the partners in the
1. New profit sharing ratio
2. Sacrificing ratio
3. Old profit sharing ratio
4. Gaining ratio
On revaluation, the increase in liabilities leads to
1. Loss
2. Gain
3. Profit
4. None of these
If the final amount due to a retiring partner is not paid immediately, it is transferred to
1. Other partners’ capital A/c
2. Bank A/c
3. Retiring partner’s loan A/c
4. Retiring partner’s capital A/c
‘A’ was a partner in a partnership firm. He died on 31st March 2019. The final amount due to him is Rs 25,000 which is not paid immediately. It will be transferred to
1. A’s current account
2. A’s Executor account
3. A’s Executor loan account
4. A’s capital account
The financial statements do not exhibit
1. Non-monetary data
2. Long term data
3. Short term data
4. Past data
In a common-size balance sheet, if the percentage of non-current assets is 75, what would be the percentage of current assets?
1. 175
2. 125
3. 25
4. 100
A preference share is one
(i) which carries preferential right with respect to payment of dividend at fixed rate
(ii) which carries preferential right with respect to repayment of capital on winding up
1. Both (i) and (ii) are correct
2. Only (i) is correct
3. Only (ii) is correct
4. Both (i) and (ii) are incorrect
On retirement of a partner, general reserve is transferred to the
1. Capital account of all the partners
2. Revaluation account
3. Memorandum revaluation account
4. Capital account of the continuing partners
Which of the following statement is false?
1. Issued capital can never be more than the authorised capital
2. Reserve capital can be called at the time of winding up
3. In case of under subscription, issued capital will be less than the subscribed capital
4. Paid up capital is part of called up capital
Cost of revenue from operations Rs 3,00,000; Inventory in the beginning of the year Rs 60,000; Inventory at the close of the year Rs 40,000. Inventory turnover ratio is
1. 2 times
2. 6 times
3. 3 times
4. 8 times
When shares are issued for purchase of assets, the amount should be credited to
1. Vendor’s A/c
2. Share capital A/c
3. Sundry assets A/c
4. Bank A/c
Which submenu displays groups, ledgers and voucher types in Tally?
1. Accounting vouchers
2. Inventory vouchers
3. Company Info
4. Account Info
If a share of Rs 10 on which Rs 8 has been paid up is forfeited. Minimum reissue price is
1. Rs 8 per share
2. Rs 2 per share
3. Rs 5 per share
4. Rs 10 per share
Supreme Ltd. forfeited 100 shares of Rs 10 each for non-payment of final call of Rs 2 per share. All these shares were re-issued at Rs 9 per share. What amount will be transferred to capital reserve account?
1. Rs 800
2. Rs 1,000
3. Rs 700
4. Rs 900
When capital in the beginning is Rs 10,000, drawings during the year is Rs 6,000, profit made during the year is Rs 2,000 and the additional capital introduced is Rs 3,000, find out the amount of capital at the end.
1. Rs 3,000
2. Rs 11,000
3. Rs 21,000
4. Rs 9,000
Balance sheet provides information about the financial position of a business concern
1. As on a particular date
2. Over a period of time
3. For the accounting period
4. For a period of time
At the time of forfeiture, share capital account is debited with
1. Called up amount
2. Face value
3. Nominal value
4. Paid up amount
Which of the following is not a tool of financial statement analysis?
1. Common size statement
2. Standard costing
3. Trend analysis
4. Comparative statement
The term ‘fund’ refers to
1. Non-current assets
2. Working capital
3. Current liabilities
4. Fixed assets
A limited company’s sales has increased from Rs 1,25,000 to Rs 1,50,000. How does this appear in comparative income statement?
1. +20%
2. -120%
3. +120%
4. -20%
At the time of retirement of a partner, determination of gaining ratio is required
1. To transfer revaluation profit or loss
2. None of these
3. To distribute accumulated profits and losses
4. To adjust goodwill
Which of the following is shown in Profit and loss appropriation account?
1. Office expenses
2. Interest on bank loan
3. Salary of staff
4. Partners’ salary
Expenses for a business for the first year were Rs 80,000. In the second year, it was increased to Rs 88,000. What is the trend percentage in the second year?
1. 10%
2. 110%
3. 11%
4. 90%
Current ratio indicates
1. Ability to meet short term obligations
2. Long term solvency
3. Profitability
4. Efficiency of management
Debt equity ratio is a measure of
1. Efficiency
2. Long term solvency
3. Short term solvency
4. Profitability
(i) Current ratio 1. Liquidity
(ii) Net profit ratio 2. Efficiency
(iii) Debt-equity ratio 3. Long term solvency
(iv) Inventory turnover ratio 4. Profitability
1. 1 4 3 2
2. 3 2 4 1
3. 1 2 3 4
4. 4 3 2 1
(1) Under subscription - (i) Amount prepaid for calls
(2) Over subscription - (ii) Subscription above the offered shares
(3) Calls in arrear - (iii) Subscription below the offered shares
(4) Calls in advance - (iv) Amount unpaid on calls
1. (iv) (iii) (ii) (i)
2. (iii) (iv) (i) (ii)
3. (i) (ii) (iii) (iv)
4. (iii) (ii) (iv) (i)
To test the liquidity of a concern, which of the following ratios are useful?
(i) Quick ratio
(ii) Net profit ratio
(iii) Debt-equity ratio
(iv) Current ratio
Select the correct answer using the codes given below:
1. (ii) and (iii)
2. (ii) and (iv)
3. (i) and (iv)
4. (i) and (ii)
Proportion of share holders' funds to total assets is called
1. Capital gearing ratio
2. Proprietary ratio
3. Current ratio
4. Debt equity ratio
Receipts and payments account is a
1. Representative personal account
2. Real A/c
3. Nominal A/c
4. Personal A/c
The excess of assets over liabilities is
1. Profit
2. Loss
3. Capital
4. Cash
(i) Sacrificing ratio 1. Investment fluctuation fund
(ii) Old profit sharing ratio 2. Accumulated profit
(iii) Revaluation Account 3. Goodwill
(iv) Capital Account 4. Unrecorded liability
1. 1 2 3 4
2. 4 3 2 1
3. 3 2 4 1
4. 3 1 4 2
Current liabilities Rs 40,000; Current assets Rs 1,00,000 ; Inventory Rs 20,000 . Quick ratio is
1. 1:2
2. 1:1
3. 2:1
4. 2.5:1
Function key F11 is used for
1. Accounting vouchers
2. Company Features
3. None of these
4. Company Configuration
What are the predefined Ledger(s) in Tally?
(i) Cash (ii) Profit & Loss A/c (iii) Capital A/c
1. Both (ii) and (iii)
2. Only (i)
3. Only (ii)
4. Both (i) and (ii)
The average rate of return of similar concerns is considered as
1. Normal rate of return
2. Average profit
3. None of these
4. Expected rate of return

+2 Accountancy L 1 - L 10 (EM)

Lesson:- 1 - 10