Please refer to the latest MCQ Questions for Class 12 Accountancy PDF with answers below for all chapters in Class 12 Accountancy. These multiple-choice questions for Class 12 Accountancy cover all chapters given in your NCERT CBSE books. Our Accountancy teachers have prepared these objective-based questions based on the expected MCQ questions which can come in the upcoming class 12 Accountancy examinations. You can click on the subject-wise links given here and access chapter-wise MCQ with answers.

MCQ Questions for Class 12 Accountancy PDF and Answers

Students can expect more MCQ-based questions to be asked in your Grade 12 Accountancy class tests and exams. It is important for standard 12th Accountancy students to practice a lot of questions so that they can understand how to solve such types of questions. You can refer to the chapters given below as per your NCERT textbook for class 12 Accountancy and get access to the free database of multiple-choice based questions provided here with solutions.

Chapter Wise MCQ Questions for Class 12 Accountancy PDF

MCQs for Class 12 Accountancy Part 1

Chapter 1: Accounting for Not-for-Profit Organisation

Chapter 2: Accounting for Partnership: Basic Concepts

Chapter 3: Reconstitution of a Partnership Firm – Admission of a Partner

Chapter 4: Reconstitution of a Partnership Firm – Retirement/Death of a Partner

Chapter 5: Dissolution of Partnership Firm

MCQs for Class 12 Accountancy Part 2

Chapter 1: Accounting for Share Capital

Chapter 2: Issue and Redemption of Debentures

Chapter 3: Financial Statements of a Company

Chapter 4: Analysis of Financial Statement

Chapter 5: Accounting Ratios

Chapter 6: Cash Flow Statement

Solved Objective Questions Class 12 Accountancy

Question. In the absence of provision in the partnership deed, interest on loans given by the partners is allowed @
a) 8% p.a.
b) 6% p.a.
c) 10% p.a.
d) 9% p.a.

Question. Debentures are issued in terms of Issue of Debentures and is an agreement between the Company and the _______ for repayment of Principal amount and interest on the specified date.
a) Shareholder
b) Preference Shareholder
c) Debenture holder
d) Equity Shareholder

Question. Decrease in liability at the time of retirement of a partner is
a) Credited to Revaluation Account.
b) Debited to Revaluation Account.
c) Debited to Profit and Loss Account.
d) Transfer to Partner’s Capital Account.

Question. C Ltd. is to redeem 10,000, 8% Debentures of Rs. 100 each at a premium of Rs. 10 out of profit. (Amount that should be set aside to Debenture Redemption Reserve DRR) is
a) Rs. 2,50,000
b) Rs. 10,00,000
c) Rs. 11,00,000
d) Rs. 7,50,000

Question. In a company, current assets are Rs. 6,30,000 and total assets are Rs. 9,00,000. The percentage of current assets to total asset will be:
a) 57%
b) 60%
c) 70%
d) 65%

Question. Liabilities to third parties in case of dissolution of partnership firm include: –
a) Reserves
b) Credit Balance of Profit and Loss Account
c) Partners loan
d) Loan by Relative.

Question. The statement that shows percentage of items of financial position of a firm of the same period to a common base is called ______
a) Common Size Statement of Profit and Loss.
b) Comparative Balance Sheet.
c) Common Size Statement of Profit and Loss.
d) Common Size Balance Sheet.

Question. Interest pad to debenture holders is a
a) Fixed Expense
b) Fluctuating Liability
c) Assets of a Company
d) Revenue of the Company

Question. While preparing Common-Size Balance Sheet each item of Balance Sheet is expressed as % of
a) Current Assets
b) Non-Current Assets
c) Non-Current Liabilities
d) Total Assets/Total Liabilities

Question. Court may pass order of the dissolution of the firm: –
a) Expiry of the term for which the firm was constituted
b) When the business of the firm can’t be carried on except at a loss
c) On completion of the venture
d) When the business incur profit

Question. Which technique of financial analysis shows a comparative study of items or components of financial statements for two or more years?
a) Common-Size Statement
b) Ratio Analysis
c) Comparative Statement
d) Cash flow Statement

Question. In the absence of an agreement to the
a) Entitled to 6% interest on their capitals, only when the firm earns profits.
b) Entitled to 5% interest on their capitals, regardless whether the firm earns profits or not
c) Entitled to interest on capital at the bank rate, only when there is profit
d) Not entitled to any interest on their capitals

Question. Which of the following cannot be identified with the help of Comparative Statement of Profit and Loss?
a) Rate of increase or decrease in revenue from operations.
b) Rate of increase or decrease in trade receivables.
c) Rate of increase or decrease in incomes.
d) Rate of increase or decrease in net profit.

Question. The part of Authorised Capital which can be called-up only on winding up is called
a) Issued Capital
b) Unsubscribed Capital
c) Reserve Capital
d) Nominal Capital

Question. Example of Investing activity both for ‘Financing and Non-Financing Companies’ is
a) Purchase of Non-Current Assets
b) Purchase of stock
c) Transfer to General Reserve
d) Purchase of Current Assets

Question. Average Capital Employed of a firm is Rs.4,00,000 and the Normal Rate of Return is 15% .Average profit of the firm is Rs.80,000 per annum. If management cost is estimated at Rs.10,000 per annum, then on the basis of two years purchase of Super-Profit, value of Goodwill will be :
a) Rs.10,000
b) Rs.20,000
c) Rs.60,000
d) Rs.80,000

Question. Not-for-Profit Organizations prepare all the following accounts except the
a) Receipts and Payment Accounts
b) Income and Expenditure Account
c) Balance Sheet
d) Profit and Loss Account

Question. When Realisation expenses are borne and also paid by the same partner: –
a) No entry will be passed for expenses
b) Realisation Account will be debited, partner as be remuneration and expense is credited to his Capital Account. The transaction of payment Cash Account will be credited
c) Realisation Account will be credited, Cash Account will be debited
d) Realisation Account is debited, Partners’ Capital Account will be credited

Question.Fixed assets of a company are increased from Rs. 3,00,000 to Rs. 4,00,000. What is the percentage change?
a) 25%
b) 33.3%
c) 20%
d) 40%

Question. Under the Capitalisation Method of Valuation of Goodwill the formula for calculating goodwill is :
a) Super profits multiplied by the rate of return
b) Average profits multiplied by the rate of return
c) Super profits divided by the rate of return
d) Average profits divided by the rate of return

Fill in the Blank :

Question. A, B and C were partners sharing profits and losses in the ratio 3 : 2 : 1. C retired and the new profit sharing ratio between the continuing partners is 3 : 2. Gaining ratio will be _____.

Question. If Profit after Tax was Rs. 40,000 and Tax rate was 20%, then Profit before Tax was Rs. ______.

Question. A firm is compulsory dissolved when all the partners or all the partners except one become ____.

Question. If Capital accounts are maintained on Fixed Capital Accounts method, Interest on Capital, Salary, Commission and share of profit is shown in the ____ of Partner’s Current Account.

Question. Customer Satisfaction ____ the value of goodwill.

Question. Solvency of business is assessed through _______.

Question. In the absence of Partnership Deed, interest on Loan by partners to the firm is allowed @ _____ .

Question. Outstanding subscriptions at the end are shown in the _____side of the Balance Sheet.

Question. If the profit sharing ratio among A, B and C 3:2:1 is changed to 1:2:3, then the partners), whose share will be unaffected is/are ____.

Question. Bharat, a partner was appointed to look after the dissolution for a remuneration of Rs. 50,000. Bharat agreed to bear the dissolution expenses. Actual dissolution expenses Rs.30,000 which were paid by Bharat. Realisation Account will be debited by _____.

Question. Interest on Drawings is charged if the Partnership Deed provides for it and whether the firm earns ______ or not.

Question. Entrance Fee is shown in debit side of _______ and credited to ________.

Question. Loss of Realisation Account is debited to Partners’ Capital Accounts in their ____.

Question. Expenses expected to be incurred to earn profit are deducted to determine normal profit for valuation of ______.

Question. On the death of a partner his legal heirs are entitled to his share of profit from the beginning of the financial year up to the date of ______.

Question. A machinery is purchased under Hire-Purchase system instalment will include interest and a part of principal. Cash paid for Principal is ______.

Question. An example of non-cash expenses is ________.

Question. Application money should be refunded, if _______ is not received.

Question. When the shares are issued at a price more than face value it is known as ______.

Question. A , B and C were partners, B retired from the firm. On the date of his retirement Stock, Sundry Debtors and Provisions for Doubtful Debts were Rs.50,000, Rs.45,000 and Rs.4,500 respectively. The partners decided to reduce the value of stock to 90%. The journal entry passed will be
………….. A/c Dr. Rs. 5,000
To ……………. A/c Rs.5,000

True/False :

Question. Increase in the value of assets and unrecorded assets being recorded at the time of retirement or death of a partner is debited to Revaluation Account.

Question. The statement that compares items of financial position of a firm of different periods of time is Common Size Balance Sheet.

Question. The court can order the Dissolution of a Partnership Firm, if any of the partners becomes a person of unsound mind.

Question. Salary paid to a partner is debited to Partner’s Capital A/c.

Question. Net assets of a firm including fictitious assets of Rs. 5,000 are Rs. 85,000. Net liabilities of the firm are Rs.30,000. Normal Rate of Return is 10% and the Average Profits of the firm is Rs.8,000. Value of goodwill as per Capitalisation of Super Profit Method will be Rs. 30,000. 

Question. Loose Tools is a part of Inventory while calculating Current Ratio. 

Question. Current Accounts of the partners are opened when capital is withdrawn.

Question. Balance Sheet of a Not-for-Profit Organisation such as charitable hospital does not have Owner’s Equity.

Question. A and B were partners in a firm sharing profits or losses equally. With effect from 1st April, 2019 they decided to share profits and losses in the ratio of 4 : 3. Due to the change in profit sharing ratio. B’s sacrifice will be 1/14.

Question. When the business of the firm becomes unlawful, business of the firm has to be discontinued.

Question. If interest on capital is to be allowed as per the agreement, then interest on capital is calculated with reference to time and is calculated on Capital in the beginning.

Question. Expenditure greater than income of a Not-For-Profit Organization give rise to a Profit.

Question. Partners are liable for firm’s debt jointly and severally.

Question. Capital employed by a partnership firm is Rs.5,00,000. Its average profit is Rs.60,000.The normal rate of return in similar type of business is 10%. The amount of super profits is Rs. 10,000.

Question. A, B and C are the partners sharing profits in the ratio 3 : 2 : 1. C retires, if A and B take the share of retiring partner equally .The new profit sharing ratio will be 5:7.

Question.Payment for purchase of fixed asset is classified or shown as investing activity for both Non-Financing and Financing Company.

Question. ‘Proposed Dividend of the Current year’ will be treated as Contingent Liability.

Question. Balance in the Forfeited Shares Account is shown in the Balance Sheet under the head Unsecured Loans. 

Question. A Company can issue shares at discount to public. 

Question. A, B and C are the partners sharing profits in the ratio of 4 : 5 : 3. C retired and remaining partners shared profits in the ratio of 7 : 8. The gaining ratio will be 8 :7.

You should practice MCQ questions daily designed based on the latest syllabus in Accountancy Class 12. Students should go through all topics given in your CBSE books for class 12th Accountancy and then attempt these MCQs. You should also refer to the answers provided by us for all class 12 MCQs for Accountancy.

NCERT MCQs for Class 12 Accountancy have been prepared by our expert Grade 12th faculty based on the latest NCERT books for Class 12 issued by NCERT. All important topics in every chapter of your books have been covered. Students should solve these MCQs post reading all chapters in Accountancy Class 12 and then compare your answers with solutions provided by us.

Benefits of MCQ Questions for Class 12 Accountancy PDF with answers

a) More MCQ questions will be coming in Class 12 Accountancy Exams, students should go through all MCQs provided here to gain more practice.

b) All objective questions for Accountancy in Grade 12 have been prepared based on the latest CBSE NCERT books issued for the current academic year.

c) By going through Class 12 Accountancy notes and then practicing these MCQs you will be able to improve your confidence

d) We have provided a lot of Class 12 MCQs for you to practice.

Free Printable MCQs in PDF of CBSE Class 12 Accountancy have been developed by our expert class 12th faculty as per CBSE NCERT guidelines and examination pattern.