CBQ Practice›Class 12 Accountancy
📊

Class 12 Accountancy
CBQ Practice

Competency Based Questions · 3 chapters · 6 CBQ sets

Question types:Case StudySource BasedAssertion–Reason
💡Attempt each question before clicking Show Answers — then compare.
Filter:
Ch 2

Accounting for Partnership Firms – Fundamentals

2 sets
CBQ 1Case StudyProfit Distribution in a Partnership4 marks

Read the passage

Amit, Balu, and Chetan are partners in a firm with capitals of ₹3,00,000; ₹2,00,000; and ₹1,00,000 respectively. As per their Partnership Deed: (1) Interest on capital is allowed at 6% p.a. (2) Amit gets a salary of ₹12,000 p.a. (3) Balu gets a commission of 10% of net profit before any adjustments. (4) After all adjustments, profits and losses are shared in the ratio 3:2:1. The net profit of the firm for the year before any appropriations is ₹90,000. The accountant is preparing the Profit and Loss Appropriation Account to determine the final share of each partner.
1

What is the total interest on capital for all three partners?

1M
(A)₹30,000
(B)₹36,000
(C)₹24,000
(D)₹18,000
2

Balu's commission is 10% of net profit before any adjustments. What is Balu's commission?

1M
(A)₹5,400
(B)₹9,000
(C)₹6,000
(D)₹8,000
3

The Profit and Loss Appropriation Account is prepared to:

1M
(A)Record the daily expenses of the firm
(B)Distribute the profits among partners according to the partnership deed
(C)Calculate the total revenue of the firm
(D)Show the assets and liabilities of the firm
4

Calculate the distributable profit (profit remaining after salary, interest on capital, and commission) to be shared among the partners.

1M
CBQ 2Assertion–Reason1 mark
A
Assertion

Interest on drawings is credited to the Profit and Loss Appropriation Account, increasing the distributable profit.

R
Reason

Interest on drawings is a charge on partners (they pay it to the firm), which increases the firm's earnings available for distribution.

(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true
Ch 4

Reconstitution of Partnership – Admission of a Partner

2 sets
CBQ 1Case StudyGoodwill and Capital Adjustment on Admission4 marks

Read the passage

Rajan and Seema are partners sharing profits in the ratio 3:2. They admit Priya as a new partner for 1/5 share. Priya is required to bring ₹50,000 as capital and ₹20,000 as her share of goodwill (premium for goodwill). The firm's goodwill is valued at ₹1,00,000. The new profit-sharing ratio after Priya's admission is 5:3:2 (Rajan : Seema : Priya). On admission, the existing partners need to record the sacrificing ratio, distribute Priya's goodwill premium, and revalue assets if necessary. The accountant records all adjustments through the appropriate journal entries.
1

Priya's share of goodwill brought in cash (₹20,000) will be credited to:

1M
(A)Priya's Capital Account
(B)Rajan's and Seema's Capital Accounts in their sacrificing ratio
(C)Firm's Goodwill Account
(D)Profit and Loss Account
2

The sacrificing ratio of Rajan and Seema when the new profit ratio is 5:3:2 (old ratio 3:2) is:

1M
(A)3:2
(B)1:1
(C)5:3
(D)2:3
3

When goodwill already appears in the books at the time of admission, it must be:

1M
(A)Kept at the same value
(B)Written off by debiting it to all (old + new) partners in new ratio
(C)Written off by debiting it to old partners in old ratio
(D)Transferred to Revaluation Account
4

Explain the concept of 'sacrificing ratio' and state its formula.

1M
CBQ 2Assertion–Reason1 mark
A
Assertion

On admission of a new partner, the Revaluation Account is prepared to record the increase or decrease in the values of assets and liabilities.

R
Reason

Revaluation of assets and liabilities ensures that the existing partners gain or bear the profit/loss due to changes in values that occurred during their tenure, before the new partner joins.

(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true
Ch 8

Financial Statements of a Company

2 sets
CBQ 1Case StudyBalance Sheet Analysis4 marks

Read the passage

Sunrise Ltd. is a public limited company. The accountant is preparing the Balance Sheet as per Schedule III of the Companies Act, 2013. The Balance Sheet shows two main headings: Equity and Liabilities (on one side) and Assets (on the other side). Equity and Liabilities include: Shareholders' Funds (Share Capital + Reserves and Surplus), Non-Current Liabilities (Long-term borrowings), and Current Liabilities. Assets include: Non-Current Assets (Fixed Assets + Long-term investments) and Current Assets (inventories, trade receivables, cash). The company has Share Capital of ₹10,00,000, General Reserve ₹2,00,000, Long-term loans ₹5,00,000, Trade payables ₹1,00,000, Fixed Assets ₹12,00,000, Inventory ₹4,00,000, and Cash ₹2,00,000.
1

As per Schedule III of the Companies Act, 2013, the Balance Sheet presents:

1M
(A)T-format with Liabilities on left and Assets on right
(B)Vertical format with Equity and Liabilities at top, Assets below
(C)Horizontal format with Assets on left and Liabilities on right
(D)Cash flow format
2

The total of Shareholders' Funds for Sunrise Ltd. is:

1M
(A)₹10,00,000
(B)₹12,00,000
(C)₹15,00,000
(D)₹18,00,000
3

Trade Receivables are classified under which heading in the Balance Sheet?

1M
(A)Non-Current Assets
(B)Current Assets
(C)Shareholders' Funds
(D)Current Liabilities
4

Distinguish between 'Reserves and Surplus' and 'Provisions' as per Schedule III of the Companies Act, 2013.

1M
CBQ 2Assertion–Reason1 mark
A
Assertion

Goodwill is classified as an intangible asset in the Balance Sheet of a company.

R
Reason

Goodwill has no physical existence but provides future economic benefits to the firm in the form of higher earning capacity, customer loyalty, and brand reputation.

(A) Both A and R are true and R is the correct explanation of A
(B) Both A and R are true but R is not the correct explanation of A
(C) A is true but R is false
(D) A is false but R is true

Also useful for Class 12 Accountancy

NCERT Solutions →Important Questions →Chapter Summaries →All CBQ Subjects →Topper Answer Sheets →