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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:
3 : 2
5 : 3
5 : 2
None of these
2. The balance of Joint Life Policy Account and Joint Life Policy Reserve A/c is:
Always Equal
Always Unequal
Not Necessary
None of these
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:
8 : 7
4 : 5
3 : 2
2 : 3
4. Profit and loss on revaluation at the time of retirement is shared by:
Remaining Partners
All Partners
New Partner
None of these
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:
3 : 2
2 : 1
4 : 1
Only Y gains by 1/3
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 :
1 : 2
2 : 1
3 : 1
1 : 1
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 :
3 : 2
2 : 2
2 : 3
None of these
8. At the time of retirement of partner, firm gets from the insurance company against joint policy taken jointly for all the partners :
Policy Amount + Bonus
Surrender Value
Policy Amount
None of these
9. Partnership Act provides that interest on amount of capital balance left by the retired partner be paid at:
5%
6%
Bank Rate
8%
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:
1 : 2
2 : 1
3 : 5
Equal
11. A, B and C are partners with profit-sharing ratio as 5 :3 :2. A retires. Find the gaining ratio :
3 : 2
5 : 3
5 :2
None of these
12. Surrender value of an insurance policy means that value:
Which is received an death of a partner
Which is received when a policy matures
Which can be received before the due date of the policy
None of the above
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:
7 : 3
1 : 2
31 : 19
None of these
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:
By debiting all Partners’ Capital Accounts in their old profit-sharing ratio
By debiting remaining Partners’ Capital Accounts in their new profit-sharing ratio
By debiting retiring Partner’s Capital Account from his share of goodwill
None of these
15. Goodwill is paid out of the retiring partner in :
Old Profit-sharing Ratio
Capital Ratio
Equal Ratio
None of these
16. On retirement of a partner, his share of goodwill is written off among continuing partners in there :
New Profit-sharing Ratio
New Capital Ratio
Gaining Ratio
None of these
17. On retirement of a partner, the retiring partner’s capital account will be credited with :
His/her share of goodwill
Goodwill of the firm
Shares of goodwill of remaining partners
None of these
18. In the event of dissolution of partnership firm, the provision for doubtful debts is transferred to :
Realisation Account
Partners’ Capital Accounts
Sundry Debtors Account
None of the above
19. On dissolution, if a partner undertakes to make payment of a liability of the firm, the account to be debited is:
profit & Loss Account
Realisation Account
Partner’s Capital Account
Cash Account
20. At the dime of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to :
Realisation Account
Creditors’ Account
Partners’ Capital Accounts
Profit & Loss Account
21. On dissolution, goodwill account is transferred to :
In the Capital Accounts of Partners
In the Credit of Cash Accounts
In the Debit of Realisation Account
In the Credit of Realisation Account
22. At the time of dissolution of partnership firm, fictitions assets are transferred to :
Capital Accounts of Partners
Realisation Account
Cash Account
Partners’ Loan Account
23. On dissolution of a firm, a partner paid 1,500 Rs. for firm’s realisation expenses. Which account will be debited ?
Cash Account
Realisation Account
Capital Account of the Partner
Profit & Loss A/c
24. On taking responsibility of payment of realisation expenses by a partner, the account credited will be :
Realisastion Account
Cash Account
Capital Account of the Partner
None of the above
25. When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to :
Realisation Account
Partners’ Capital Account
Partner’s Loan Account
None of these
26. Which of the following is transferred to Realisation Account ?
Balance of Profit Account
Balance of Profit & Loss Account
Amount realised on sale of assets
Reserves
27. On disolution of firm, loss calculated in realisation account is debited/credited to which account ?
Cash Account
Partners’ Capital Accounts
Realisation Account
None of these
28. Which of the following is not transferred to Realisatsion Account ?
Balance of Cash Account
Balance of Reserves
Balance of Profit & Loss Account
All of the above
29. On taking responsibility of payment of a liability of ₹ 20,000 by a partner, the account credited will be :
Realisation Account
Cash Account
Capital Account of the Partner
Liability Account
30. Cash balance shown in the Balance Sheet is shown on dissolution of firm in :
Realisation Account
Cash Account
Capital Account
None of the Account
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…….
₹ 12,000
₹ 10,500
₹ 1,500
₹ 32,500
32. On dissolution of a firm, Bank overdraft is transferred to:
Cash Account
Bank Account
Realisation Account
Partners’ Capital Account
33. On dissolution of a firm, Partner’s Loan Account is transferred to:
Realisation Account
Partner’s Capital Account
Partner’s Current Account
None of these
34. On dissolution, when a partner takes over an asset……….is debited :
Realisation Account
Partner’s Capital Account
Cash Account
Asset Account
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 :
Never paid
Fully paid
Partly paid
None of these
36. Unrecorded liabilities when paid are shown in :
Debit side of Realisation Account
Debit side of Bank Account
Credit side of Realisation Account
Credit side of Bank Account
37. Payment of credit balance of Partners’ Capital Accounts at the time of dissolution of a firm is made to:
Partners
Firm
Wife
None of these
38. On dissolution of a firm Partner’s Loan A/c is transferred to:
Realisation A/c
Partners’ Capital A/cs
Suspense A/c
None of these
39. At the time of dissolution of firm book value of assets is recorded in which side of the Realisation Account ?
Debit Side
Credit Side
All of the above
Liabilities Side
40. Realisation expenses are recorded in which side of Realisation A/c:
Liabilities
Assets
Credit
Debit
41. Realisation Account is a :
Personal A/c
Nominal A/c
Read A/c
None of these
42. On dissolution of the firm, Partners’ Capital Accounts are closed through :
Realisation Account
Drawings Account .
Bank Account
Loan Account
43. Unrecorded assets when taken over by a partner are shown in:
Debit side of Realisation A/c
Debit side of Bank A/c
Credit side of Realisation A/c
Credit side of Bank A/c
44. Expenses on dissolution of firm is called :
Realisation Expenses
Legal Expenses
Loss Expenses
None of these
45. Sundry creditors amounted to ₹ 8,000. They were paid at a discount of 5 %. Realisation A/c will be debited by :
₹ 8,000
₹ 7,600
₹ 400
₹ 8,400
46. Amount realised from sale of assets is recorded in :
Debit side of Realisation Account
Credit side of Realisation Account
Liabilities side of Balance Sheet
Assets side of Balance Sheet
47. A firm can be voluntarily dissolved by the partners :
On Majority basis
On 3/4 Member’s decision
On 1/2 Member’s decision
None of these
48. On dissolution of a firm, amount realised from an unrecorded asset is credited to:
partners’ Capital Accounts
Cash Account
Realisation Account
Revaluation Account
49. Profit/loss on Realisation Account is distributed among partners:
In Profit-sharing Ratio
In Capital Ratio
Equally
None of these
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 ?
₹ 12,000 Loss
₹ 32,000 Profit
₹ 30,000 Loss
₹ 12,000 Profit
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