TOPPERS COMMERCE ACADEMY

18/07/2025 12TH ACCOUNTANCY TEST

Class 12 - Accountancy
Time Allowed: 1 hour Maximum Marks: 50

1. Madhu and Radha were partners in a partnership firm sharing profits and losses in the ratio of 3:2. Madhu [1]
withdrew ₹ 20,000 in each quarter during the year ended 31.03.2023. Interest on drawings was to be charged @
6% p.a. Interest on Madhu's drawings will be:

a) ₹ 1,800 b) ₹ 2,400

c) ₹ 3,000 d) ₹ 4,800
2. P and Q are partners sharing Profits in the ratio of 2 : 1 with fixed capitals of ₹ 10,00,000 and ₹ 5,00,000 [1]
respectively. After closing the accounts for the year ending 31st March 2021 it was discovered that interest on
capitals was provided @ 10% p.a. but partnership deed is silent on interest on capital.
In the adjusting entry Q's Current Account will be:

a) None of these b) Credited with 1,00,000

c) Credited with 50,000 d) Debited with 50,000

3. When is the Partnership Act enforced? [1]

a) When capital contribution by the partners b) Where there is a partnership deed but there
varies are differences of opinion between the
partners

c) When there is no partnership deed d) When the partner’s salary and interest on
capital are not incorporated in the
partnership deed
4. Net profit of a firm is ₹ 49,500. Manager is entitled to a commission of 10% on profits before charging his [1]
commission. Manager’s Commission will be:

a) ₹ 4,500 b) ₹ 495

c) ₹ 4,950 d) ₹ 5,500
5. Interest on partner’s capitals will be credited to: [1]

a) interest account b) profit and loss appropriation account

c) partner's capital accounts d) profit and loss account

6. A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. A is given a guarantee that his share of profits will [1]
not be less than ₹ 1,25,000 p.a. Profit at the end of the year is ₹ 2,70,000. Deficiency if any, would be borne by B
and C equally.
B’s share of profit after meeting deficiency (if any) will be:

a) 87,500 b) 92,500

c) 87,000 d) 90,000

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 7. Match the following : if Interest on drawings is charged @ 12% p.a. [1]

(a) Partner withdrew ₹ 1,000 per month in the beginning of every month (i) 600

(b) Partner withdrew ₹ 1,000 per month at the End of every month (ii) 360

(c) Partner withdrew ₹ 2,000 per month in the End of every Quarter (iii) 660

(d) Partner withdrew ₹ 2,000 per month in the Beginning of every Quarter (iv) 780

a) (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i) b) (a) - (iv), (b) - (iii), (c) - (ii), (d) - (i)

c) (a) - (ii), (b) - (iii), (c) - (iv), (d) - (i) d) (a) - (iv), (b) - (iii), (c) - (i), (d) - (ii)
8. Josh and Jeevan were partners in a firm. During the year ended 31.03.2022 Jeevan withdrew ₹ 5,000 per month [1]
starting from 30.06.2021. The partnership deed provided that interest on drawings will be charged @ 12% per
annum. The average number of months for which interest on Jeevan's total drawings will be charged is:

a) 6 1

2
months b) 5 months

c) 4 1

2
months d) 6 months
9. Balance Sheet of Sonu and Sonia as on 31st March 2021. [1]

Liabilities Amount Assets Amount

Capital A/cs: Sonu 2,00,000 Non-current Assets 6,00,000

Sonia 2,00,000 Current Assets 1,40,000

Current A/cs: Sonu 20,000

Sonia 20,000

General Reserve 3,00,000

7,40,000 7,40,000

Drawings made by the partners during the year were ₹ 10,000 and ₹ 8,000. Profit during the year was ₹ 4,50,000
out of which 3,00,000 was transferred to the General Reserve. After closing the accounts, it was noticed that
interest on capital @6% p.a. for the year was not provided.
Interest on capital of Sonu and Sonia will be:

a) No interest on capital due to negative capital b) Sonu 12,000 and Sonia 12,000

c) Sonu 8,100 and Sonia 7,980 d) Sonu 12,000 and Sonia 10,000
10. Calculate interest on capital @ 10% p.a. for a partner Mohit from the following information: [1]

01.04.2020 Opening Capital 1,00,000

30.04.2020 Additional capital 50,000

01.08.2020 Withdrawn for personal use against capital 50,000

30.09.2020 Withdrawal of capital 20,000

31.12.2020 Additional capital 40,000

Interest on capital calculated on 31st March 2021:

a) 11,250 b) 10,000

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 c) 10,583 d) 14,583
11. State whether the given statement is True or False: [1]
Interest on capital (appropriation) in case of loss is to be shown on the debit side of Profit & Loss Account.
12. State whether the given statement is True or False: [1]
Interest on loan (loan given by a partner to the firm) is appropriation against profit.
13. If the existing profit-sharing ratio among A, B and C of 3 : 2 : 1 is changed to 1 : 2 : 3, then the partner(s) whose [1]
share will be unaffected is/are

a) A b) A and C

c) C d) B
14. What is gaining ratio: [1]

a) In which profit sharing ratio of sacrificing b) In which profit sharing ratio of gaining
partners decrease partners decrease

c) In which profit sharing ratio of sacrificing d) In which profit sharing ratio of gaining
partners increase partners increase
15. Which of the following is not transferred to partners capital account? [1]

a) Employees Provident Fund b) Retained Earnings

c) Contingency Reserve d) General Reserve

16. Due to change in the profit sharing ratio, Pooja's gain is 1

5
th while Sonu’s sacrifice is 1

5
th. They decided to [1]
adjust the following without affecting their book values, by passing a single adjustment entry:

General Reserve ₹ 20,000

Profit & Loss Account (Dr.) ₹ 30,000

The necessary adjustment entry will be:

a) Debit Pooja's capital account by ₹ 10,000 b) Debit Pooja’s capital account by ₹ 2,000
and credit Sonu’s capital account by ₹ and credit Sonu’s capital account by ₹
10,000. 2,000.

c) Debit Sonu’s capital account by ₹ 10,000 d) Debit Sonu’s capital account by ₹ 2,000 and
and credit Pooja’s capital account by ₹ credit Pooja’s capital account by ₹ 2,000.
10,000.
17. X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They decided to share future profits [1]
equally. The Profit and Loss Account showed a Credit balance of ₹ 60,000 and a General Reserve of ₹ 30,000. If
these are not to be shown in balance sheet, in the journal entry:

a) Cr. X by ₹ 30,000; Cr. Y by ₹ 30,000; Cr. Z b) Cr. X by ₹ 15,000; Dr. Z by ₹ 15,000

by ₹ 30,000

c) Cr. X by ₹ 45,000; Cr. Y by ₹ 30,000; Cr. Z d) Dr. X by ₹ 15,000; Cr. Z by ₹ 15,000

by ₹ 15,000
18. State whether the given statement is True or False: [1]
At the time of change in profit sharing ratio, profit on Revaluation Account is credited to existing partner’s
capital accounts in old ratio.

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19. State whether the given statement is True or False: [1]
Recording of unrecorded assets on the reconstitution of partnership firm is a gain to the existing partners.
20. Fill in the blanks: [1]
Revaluation Account shows ________ in the value of assets and liabilities.
21. X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership, Z paying a [1]
premium of ₹ 2,00,000 for 1

4
share of the profits while X and Y as between themselves sharing profits and losses
equally. Goodwill Credited to X will be:

a) ₹ 1,80,000 b) ₹ 20,000

c) ₹ 1,20,000 d) ₹1,00,000
22. X and Y are partners sharing profits in the ratio of 3 : 2. Z is admitted as a partner. Calculate sacrificing ratio if [1]
new profit sharing ratio is 9 : 7 : 4.

a) 9 : 7 b) 3 : 1

c) 3 : 2 d) 1 : 3
23. Komal and Neeraj were partners in a firm. They admitted Hari as a new partner for 1

3
rd share in the profits. On [1]
Hari’s admission it was found that there was a claim against the firm for damages for which a liability for
damages should be created. Which of the following accounts will be debited for creating the liability:

a) Profit and Loss Account b) Profit and Loss Adjustment Account

c) Revaluation Account d) Profit and Loss Appropriation Account

24. Admission of a partner is one of the modes of reconstituting the firm under: [1]
A. The old partnership ended and a new one between all partner (including new partner) comes into existence.
B. The new partnership ended and the old one between all partner(including new partner) comes into existence.
C. The old partnership ended and a new one between all partner(excluding new partner) comes into existence.
D. The old partnership ended and a new one between all partner(excluding old partner) comes into existence.

a) (C) b) (A)

c) (B) d) (D)
25. A and B are partners. They admit C for 1

3
rd share. In future the ratio between A and B would be 2 : 1. [1]
Sacrificing ratio will be:

a) 5 : 1 b) 1 : 5

c) 2 : 1 d) 1 : 1

26. X and Y are partners sharing profits equally. They admit Z for
1 rd share in profits. Following information is [1]
3

available at the time of admission of Z.

Liabilities Amount Asset Amount

Creditors 40,000 Debtors 18,000

Less: Provision for Doubtful debts 2,000 16,000

Additional information: Debtors ₹ 1,500 will be written off as bad debts and a provision of 5% will be created
for bad and doubtful debts. Creditors of ₹ 1,275 not recorded in the books earlier to be taken into account.
Revaluation Gain/Loss will be:

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 a) 950 Loss b) 950 Gain

c) 1,600 Loss d) 1,600 Gain

27. X and Y are partners sharing profits in the ratio of 4 : 3. They admit Z as a new partner. New profit sharing ratio [1]

among the partners was decided 3 : 2 : 2. Y surrendered

1 rd of his share in favour of Z.
3

X's Sacrifice will be:

a) 1 th b) 1 rd
5 3

c) 1 th d) 1 th
7 6

28. Premium for goodwill is not recorded at all on admission of a partners: [1]

a) If Brought in cash b) If Paid Privately

c) When new partner does not bring his share d) If Brought in kind
of goodwill
29. Out of the following, which is the main right of a partner? [1]

a) Right to share the old profits of the firm b) Right to stop other partners for drawings

c) Right to share the profits of the firm d) Right to say no for goodwill
30. If the incoming partner is to bring in premium for goodwill in cash and also a balance exists in the Goodwill [1]
Account, then this Goodwill Account is written off among the old partners in:

a) the old profit-sharing ratio b) the new profit-sharing ratio

c) the sacrificing ratio d) The gaining ratio

31. Assertion (A): When a new partner is admitted, all free reserves and accumulated profits/losses exist in the [1]
balance sheet, should be transferred to the old partners capital/current accounts in their old profit sharing ratio.
Reason (R): Employees Provident Fund is a liability of the firm; hence it should not be distributed among the
partners.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

32. Revaluation account shows the ________. [1]

a) Assessment of assets and reassessment of b) Valuation of assets and assessment of

liabilities liabilities

c) Revaluation of assets and Valuation of d) Revaluation of assets and Reassessment of

liabilities liabilities
33. The Partnership Deed does not have a clause on rate of interest to be paid on amount due to heirs of deceased [1]
partner. At what rate interest on the outstanding amount shall be payable?

a) At the rate of interest provided in the b) 8% p.a.

Partnership Act, 1932.

c) At the rate at which the banks grant loan. d) At the rate of interest demanded by the heirs
of the deceased partner.
34. When a Partner died he will not be able to take his due amount then, will the due amount of deceased be paid [1]

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 and if yes to whom it is paid?

a) His Executor b) Sacrificing partner

c) Remaining Partners d) Not payable to anyone

35. A, B and C are the partners sharing profits in the ratio 3 : 2 : 1, C retires. If A and B purchase the share of [1]
retiring partner equally, what will be the new profit-sharing ratio?

a) 7 : 5 b) 3 : 2

c) 1 : 1 d) 2 : 3

36. Khushi, Namita and Manvi were partners in a firm sharing profits and losses in the ratio of 5 : 2 : 3. On 30th [1]

June, 2022, Khushi died. The partnership deed provided that on the death of a partner, her share of profit till the
date of death was to be calculated on the basis of average profit of last three years less ₹ 10,000.
Profits for the last three years were:

Year ended Profits/Loss (₹)

31st March, 2020 1,20,000

31st March, 2021 (50,000)

31st March, 2022 1,70,000

Khushi's share of profit till the date of her death was:

a) ₹ 9,583 b) ₹ 35,000

c) ₹ 28,750 d) ₹ 8,750
37. P, Q and R were partners sharing profits in the ratio 5 : 3 : 2 respectively. P retires from the firm and Q and R [1]
decide to share future profits equally. Goodwill is valued at ₹ 50,000.
Adjustment entry for goodwill will be:

a) Q's Capital A/c Dr. 10,000 b) Q's Capital A/c Dr. 20,000

R's Capital A/c Dr. 15,000 R's Capital A/c Dr. 30,000

To P's Capital A/c 25,000 To P's Capital A/c 50,000

c) Q's Capital A/c Dr. 15,000 d) Q's Capital A/c Dr. 12,500

R's Capital A/c Dr. 10,000 R's Capital A/c Dr. 12,500

To P's Capital A/c 25,000 To P's Capital A/c 25,000

38. Assertion (A): Amount due to retiring partner is always transferred to his Loan Account. [1]
Reason (R): Amount due to retiring partner may be paid immediately or later in instalments.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

39. Assertion (A): There is only need of finding the gaining ratio in case of retirement and death of a partner. [1]
Reason (R): The gaining ratio is used by the remaining partner to compensate the share of the outgoing or dead
partner.

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 a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

40. On dissolution of a firm, a partner took-over the investments of ₹ 15,000 at ₹ 19,000. By how much amount the [1]
Realisation Account will be credited?

a) Nil b) ₹ 4,000

c) ₹ 23,000 d) ₹ 19,000
41. Manik and Naman share the profits equally. They decided to dissolve their firm. Their liabilities were: Manik’s [1]
Capital ₹25,000; Naman’s Capital ₹30,000; Creditors ₹12,500; Bills payable ₹7,500; Assets of the firm realized
₹1, 00,000. Balance of cash/bank was nil in balance sheet. Find out profit on realisation.

a) ₹3000 b) ₹25000

c) ₹30000 d) ₹7500
42. On dissolution, if a partner pays firm's liability which of the following account is debited? [1]

a) Partner's Capital Account b) Cash Account

c) Realisation Account d) Profit and Loss Account

43. At the time of dissolution, there was an unrecorded asset i.e. Laptop, the market price of which was ₹24,000. [1]
This laptop was taken by a partner (Mohan) at 50% of the market price. Give journal entry for the same.

a) Realisation b) Bank A/c Dr. 10,000

Dr. 12,000
A/c
To Office
To Mohan's equipment 10,000
12,000
Capital A/c A/c

c) Mohan's d) Mohan's
Dr. 12,000 Dr. 12,000
Capital A/c Capital A/c

To Bank A/c 12,000 To Realisation

12,000
A/c

44. On dissolution of a firm, a partner took over ₹ 17,000 investments for ₹ 14,000. Which one of the following [1]
account will be debited/credited with how much amount?

a) Partner’s Capital Account Debit with ₹ b) Partner’s Capital Account Credit with ₹
14,000 17,000

c) Realisation Account Credit with ₹ 17,000 d) Realisation Account Credit with ₹ 3,000
45. Choose the current order of priority in settlement of liabilities and capital upon dissolution from items given [1]
below:
A. An expense incurred on the realization of assets such as commission, cartage, brokerage etc.
B. All outside creditors
C. Balances in Capital Accounts of partners
D. Partner’s Loan accounts
Correct sequence is

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 a) A, C, D, B b) A, B, C, D

c) A, C, B, D d) A, B, D, C
46. Read the text carefully and answer the questions: [2]
A, B and C were partners sharing profits in the ratio of 5 : 4 : 3. They decided to change their profit sharing ratio
to 2 : 2 : 1 w .e.f. 1st April, 2021. On that date, there was a balance of ₹ 3,00,000 in General Reserve and a debit
balance of ₹ 4,80,000 in the Profit and Loss Account.
(a) When they want to distribute the General Reserve, identify the wrong statement:

a) A's Capital Account will be credited b) C's Capital Account will be credited
with ₹ 1,25,000. with ₹ 75,000

c) B's Capital Account will be Credited d) They cannot distribute General Reserve
with ₹ 1,00,000. due to loss.
(b) When they do not want to distribute the General Reserve, identify the wrong statement:

a) A’s Capital Account will be credited b) B's Capital Account will be Credited
with ₹ 5,000 with ₹ 20,000

c) C's Capital Account will be credited d) B's Capital Account will be debited by
with ₹ 15,000 ₹ 20,000
47. Read the text carefully and answer the questions: [3]
Kartik and Ved were partners in a firm sharing profits and losses in the ratio of 1 : 2. Their fixed capitals were ₹
2,00,000 and ₹ 3,00,000 respectively. On 1st April,2021 Kishore was admitted as a new partner for 1/4th share
in the profits. Kishore brought ₹ 2,00,000 for his capital which was to be kept fixed like the capitals of Kartik
and Ved. Kishore acquired his share of profit from Ved.
Calculate goodwill of the firm on Kishan's admission and the new profit sharing ratio of Kartik, Ved and Kishan.
Also, pass necessary Journal Entry for the treatment of Goodwill on Kishan's admission considering that Kishan
did not bring his share of goodwill premium in Cash.
(a) Kishan's share of Premium for goodwill:

a) 40,000 b) 20,000

c) 25,000 d) 30,000
(b) New Profit Sharing Ratio:
i. 3 : 4 : 5
ii. 5 : 4 : 3
iii. 4 : 5 : 3
iv. 4 : 3 : 5

a) Option (iii) b) Option (i)

c) Option (iv) d) Option (ii)

(c) Ved's Current Account will be:

a) Credited with ₹ 15,000 b) Debited with ₹ 25,000

c) Credited with ₹ 25,000 d) Debited with ₹ 15,000

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