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MCQ Questions for Class 12 Accountancy set-5

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1. Abhishek, Rajat and Vivek are partners sharing profits in the ratio of 5 : 3 : 2. If Vivek retires, the new profit sharing ratio between Abhishek and Rajat will be:




2. The balance of Joint Life Policy Account and Joint Life Policy Reserve A/c is:




3. Anand, Bahadur and Chander are partners sharing profit equally. On Chander’s retirement, his share is acquired by Anand and Bahadur in the ratio of 3: 2. The new profit-sharing ratio between Anand and Bahadur will be:




4. Profit and loss on revaluation at the time of retirement is shared by:




5. X, Y, Z are equal partners in a firm. Z retires from the firm. The new profit-sharing ratio between X and Y is 1:2. The gaining ratio will be:




6. X, Y, Z are partners sharing profits in the ratio of 3 : 4 : 4. Y retires and X and Z share their profits in equal ratio. New ratio of X and Z will be :




7. A, B and C are partners. Their capitals are ₹ 1,00,000, ₹ 75,000 and ₹ 50,000 respectively. On C’s retirement his share is acquired by A and B in the ratio of 6 : 4 Gaining ratio will be :




8. At the time of retirement of partner, firm gets from the insurance company against joint policy taken jointly for all the partners :




9. Partnership Act provides that interest on amount of capital balance left by the retired partner be paid at:




10. Heri, Roy and Prasad are partners and profit-sharing ratio is 3: 5:1. Roy now wants to retire and his share is taken by Prasad. Find the new ratio of Hari and Prasad:




11. A, B and C are partners with profit-sharing ratio as 5 :3 :2. A retires. Find the gaining ratio :




12. Surrender value of an insurance policy means that value:




13. P, Q and R are partners and share profit in the ratio of 5:3:2. R retires and surrenders 3/5th of his share in favour of P and 2/5th of the share to Q. Find new profit sharing ratio:




14. Govind, Hari and Pratap are partners. On retirement of Govind, the goodwill already appears in the Balance Sheet at ₹ 24,000. The goodwill will be written off:




15. Goodwill is paid out of the retiring partner in :




16. On retirement of a partner, his share of goodwill is written off among continuing partners in there :




17. On retirement of a partner, the retiring partner’s capital account will be credited with :




18. In the event of dissolution of partnership firm, the provision for doubtful debts is transferred to :




19. On dissolution, if a partner undertakes to make payment of a liability of the firm, the account to be debited is:




20. At the dime of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to :




21. On dissolution, goodwill account is transferred to :




22. At the time of dissolution of partnership firm, fictitions assets are transferred to :




23. On dissolution of a firm, a partner paid 1,500 Rs. for firm’s realisation expenses. Which account will be debited ?




24. On taking responsibility of payment of realisation expenses by a partner, the account credited will be :




25. When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to :




26. Which of the following is transferred to Realisation Account ?




27. On disolution of firm, loss calculated in realisation account is debited/credited to which account ?




28. Which of the following is not transferred to Realisatsion Account ?




29. On taking responsibility of payment of a liability of ₹ 20,000 by a partner, the account credited will be :




30. Cash balance shown in the Balance Sheet is shown on dissolution of firm in :




31. There was an Unrecorded asset of ₹ 12,000 which was taken over by a partner at ₹ 10,500. Partner’s Capital Account will be debited by…….




32. On dissolution of a firm, Bank overdraft is transferred to:




33. On dissolution of a firm, Partner’s Loan Account is transferred to:




34. On dissolution, when a partner takes over an asset……….is debited :




35. After transferring liabilities like creditors and bills payable in the Realisation Account in the absence of any informations regarding their payment, such liabilities are treated as :




36. Unrecorded liabilities when paid are shown in :




37. Payment of credit balance of Partners’ Capital Accounts at the time of dissolution of a firm is made to:




38. On dissolution of a firm Partner’s Loan A/c is transferred to:




39. At the time of dissolution of firm book value of assets is recorded in which side of the Realisation Account ?




40. Realisation expenses are recorded in which side of Realisation A/c:




41. Realisation Account is a :




42. On dissolution of the firm, Partners’ Capital Accounts are closed through :




43. Unrecorded assets when taken over by a partner are shown in:




44. Expenses on dissolution of firm is called :




45. Sundry creditors amounted to ₹ 8,000. They were paid at a discount of 5 %. Realisation A/c will be debited by :




46. Amount realised from sale of assets is recorded in :




47. A firm can be voluntarily dissolved by the partners :




48. On dissolution of a firm, amount realised from an unrecorded asset is credited to:




49. Profit/loss on Realisation Account is distributed among partners:




50. Which of the following is correct profit or loss in case the amount received from the sale of assets is ₹ 50,000, total assets is ₹ 60,000, total liabilities ₹ 20,000 and realisation expenses ₹ 2,000 ?