Bihar Board 12th Accountancy VVI Objective Questions Model Set 4 in English

Bihar Board 12th Accountancy Objective Questions and Answers

Bihar Board 12th Accountancy VVI Objective Questions Model Set 4 in English

Question 1.
In the absence of any agrement, the profits and losses of the firm are shared:
(A) Equaly
(B) In Capital Ratio
(C) In Different Proportions
(D) None of these
Answer:
(A) Equaly

Question 2.
Recording of an unrecorded liability on the reconstitution of a partnership firm will be :
(A) A gain to the existing partners
(B) A loss to the existing partners
(C) Neither a gain nor a loss to the existing partners
(D) None of these
Answer:
(B) A loss to the existing partners

Question 3.
The interest on capital accounts of partners under fluctuating method is to be credited to:
(A) Partners’ Capital A/c
(B) Profit & Loss A/c
(C) Interest A/c
(D) None of these
Answer:
(A) Partners’ Capital A/c

Question 4.
The balance of Revaluation Account is transfered to old Partners’ Capital Accounts in their:
(A) Old profit-sharing ratio
(B) New profit-sharing ratio
(C) Equal ratio
(D) None of these
Answer:
(A) Old profit-sharing ratio

Question 5.
Z is admitted in a firm for a 1/4 share in the profit for which he brings 30,000 Rs for goodwill. It will be taken away by the old partners X and Y in :
(A) Old profit-sharing ratio
(B) New profit-sharing ratio
(C) Sacrificing ratio
(D) Capital ratio
Answer:
(C) Sacrificing ratio

Question 6.
Recording of an unrecorded asset on the reconstitution of a partnership firm will be :
(A) A gain to the existing partners
(B) A loss to the existing partners
(C) Neither a gain nor a loss to the existing partners
(D) None of these
Answer:
(A) A gain to the existing partners

Question 7.
On death of a partner, profit on revaluation of assets is credited to capital account of …………..
(A) Deceased Partner
(B) All Partners
(C) Remanining Partners
(D) Only Two Partners
Answer:
(B) All Partners

Question 8.
Decrease in value of fixed assets in known as:
(A) Loss
(D) Expenses
(B) Real Account
(D) All the above
Answer:
(A) Loss

Question 9.
Current account is a …………
(A) Personal Account
(B) Real Account
(C) Nominal Account
(D) All the above
Answer:
(A) Personal Account

Question 10.
For the firm, interest on partner’s drawings is a :
(A) Expense
(B) Income
(C) Loss
(D) Gain
Answer:
(B) Income

Question 11.
Change in profit-sharing ratio of existing partners results in:
(A) Revaluation of Firm
(B) Reconstitution
(C) Dissolution of Firm
(D) None of these
Answer:
(B) Reconstitution

Question 12.
X, Y and Z are partners in a firm, they divided profit aind loss in the ratio of 4:3:1. They decided to share profit in the ratio 5:4:3. X’s sacrifices are :

Answer:
(A)

Question 13.
On reconstitution of partnership firm, recording of an unrecorded liability will result in: .
(A) Gain to the existing partners
(B) Loss to the existing partners
(C) Neither gain nor loss to the existing partners
(D) None of these
Answer:
(B) Loss to the existing partners

Question 14.
Increase in the value of assets on reconstitution of the partnership firm results into:
(A) Gain to the existing partners
(B) Loss to the existing partners
(C) Neither gain nor loss to the existing partners
(D) None of these
Answer:
(A) Gain to the existing partners

Question 15.
The balance of Revaluation Account is transferred to old Partners’ Capital Account in their:
(A) Old profit-sharing Ratio
(B) New Profit-sharing Rtaio
(C) Equal Ratio
(D) None of these
Answer:
(A) Old profit-sharing Ratio

Question 16.
X and Y share profits in the ratio 2 :3. In future they have decided to share profits in equal ratio. Which partner will sacrifice in which ratio ?
(A) X sacrifice 1/10
(B) Y sacrifice 1/5
(C) Y sacrifice 1/10
(D) None of these
Answer:
(C) Y sacrifice 1/10

Question 17.
Change in the partnership agreement results in:
(A) Reconstitution of Firm
(B) Dissolution of Firm
(C) Amalgamation of Firm
(D) None of these
Answer:
(A) Reconstitution of Firm

Question 18.
Change in the partnership agreement:
(A) Changes the relationship among the partners
(B) Results in end of partnership business
(C) Dissolves the partnership firm
(D) None of these
Answer:
(A) Changes the relationship among the partners

Question 19.
A and B are partners in a firm sharing profits and losses in the ratio of 2 : 1. Now they decide to share profits and losses equally, A’s sacrifice will be :
(A) 1/3
(B) 2/3
(C) 1/6
(D) None of these
Answer:
(C) 1/6

Question 20.
Profit & Loss Adjustment A/c is a :
(A) Personal A/c
(B) Nominal A/c
(C) Real A/c
(D) None of these
Answer:
(B) Nominal A/c

Question 21.
Following are the factors affecting goodwill except:
(A) Nature of business
(B) Efficiency of Management
(C) Technical Knowledge
(D) Location of the Customers
Answer:
(D) Location of the Customers

Question 22.
The profit of the last three years are ₹ 42,000, ₹ 39,000 and ₹45,000. Value of goodwill at two years’ purchases of the average profits will be:
(A) ₹ 42,000
(B) ₹ 84,000
(C) ₹ 1,26,000
(D) ₹ 36,000
Answer:
(B) ₹ 84,000

Question 23.
Under average profit basis goodwill is calculated by :
(A) No. of years’ purchased x Average profit
(B) No. of year’s purchased x Super profit
(C) Super Profit -r Expected Rate of Return
(D) None of these
Answer:
(A) No. of years’ purchased x Average profit

Question 24.
Goodwill is:
(A) Tangible Asset
(B) Intangible Asset
(C) Current Asset
(D) None of these
Answer:
(B) Intangible Asset

Question 25.
Legacies should be treated as a/an:
(A) Liability
(B) Revenue Receipts
(C) Asset
(D) None of these
Answer:
(A) Liability

Question 26.
Donation received for specific objective will be shown :
(A) In Income and Expenditure A/c
(B) In Liabilities side of Balance Sheet
(C) In Assets side of Balance Sheet
(D) None of these .
Answer:
(B) In Liabilities side of Balance Sheet

Question 27.
Receipts and Payments Account usually indicates:
(A) Surplus
(B) Capital Fund
(C) Debit Balance
(D) Credit Balance
Answer:
(C) Debit Balance

Question 28.
In the absence of Partnership deed partners shall:
(A) be paid salaries
(B) not be paid salaries
(C) be paid salaries to those who work for the firm
(D) None of these
Answer:
(B) not be paid salaries

Question 29.
The relation of a partner with the firm is :
(A) As a Manager
(B) As a Servant
(C) As an Agent
(D) None of these
Answer:
(C) As an Agent

Question 30.
Shar6 of goodwill brought in cash by new partner is called :
(A) Profit
(B) Asset
(C) Premium for Goodwill
(D) None of these
Answer:
(C) Premium for Goodwill

Question 31.
Excess of credit side over the debit side of Revaluation Account is called:
(A) Loss
(B) Gain
(C) Profit
(D) Expense
Answer:
(C) Profit

Question 32.
Insolvency of a partner leads to which type of dissolution ?
(A) Compulsory Dissolution
(B) Dissolution by Court
(C) Dissolution by Incidence
(D) None of these
Answer:
(A) Compulsory Dissolution

Question 33.
Income and Expenditure A/c is a:
(A) Personal A/c
(B) Real A/c
(C) Nominal A/c
(D) None of these
Answer:
(C) Nominal A/c

Question 34.
‘A’ and ‘B’ share profit in the ratio of 2:3. In future they decide to share profites in equal ratio. Which partner will sacrifice in which ratio ?
(A) A Sacrifices 1/10
(B) B Sacrifices 1/5
(C) B Sacrifice 1/10
(D) None of these
Answer:
(C) B Sacrifice 1/10

Question 35.
In a partnership firm, maximum number of raised to rest partners are:
(A) 50
(B) 10
(C) 15
(D) 20
Answer:
(A) 50

Question 36.
The sacrifice of old partners is :
(A) New Share – Old Share
(B) Old Share – New Share
(C) New Share
(D) Old Share
Answer:
(B) Old Share – New Share

Question 37.
When realisation expenses are paid by the firm on
behalf of a partner, such expenses are debited to which account ? ‘
(A) Realisation A/c
(B) Partners’ Capital A/c
(C) Partner’s Loan A/c
(D) None of these
Answer:
(D) None of these

Question 38.
For non-trading organisation honorarium is :
(A) Capital Expenditure
(B) Revenue Expenditure
(C) Income
(D) None of these
Answer:
(B) Revenue Expenditure

Question 39.
The popular method of calculating goodwill are:
(A) Average Profit Method
(B) Super Profit Method
(C) Capitalisation of Profit Method
(D) All of the above
Answer:
(D) All of the above

Question 40.
Under Which of the following conditions, a partnership firm is compulsorily dissolved :
(A) When the business of the firm is declared illegal
(B) If any one partner gives a notice in writing to the other partners for dissolved of the firm
(C) With constant of a few partners
(D) None of these
Answer:
(A) When the business of the firm is declared illegal

Question 41.
Right shares are the shares, which:
(A) Are issued to the Directors of the company
(B) Are issued to existing shareholders of the company
(C) Are issued to promoters in consideration of their services
(D) Are issued to the vendors for purchasing assets
Answer:
(B) Are issued to existing shareholders of the company

Question 42.
Financial statements are the product of accounting process.
(A) First
(B) Second
(C) End
(D) None of these
Answer:
(C) End

Question 43.
What do you mean by Super Profit ?
(A) Total Profit/No. of Years
(B) Average Profit-Normal Profit
(C) Weighted Profit/No. of Years’ Purchase
(D) None of these
Answer:
(B) Average Profit-Normal Profit

Question 44.
A Sinking Fund is a part of-
(A) Fixed Liabilities
(B) Current Liabilities
(C) Reserves & Surplus
(D) Fixed Assets
Answer:
(C) Reserves & Surplus

Question 45.
Joint life policy may be taken by the firm on the lives of………
(A) All the partners jointly
(B) All the partners separately
(C) All employees of the firm
(D) Both (A) and (B)
Answer:
(D) Both (A) and (B)

Question 46.
Subscription received in advance during the current year is:
(A) An income
(B) An asset
(C) A Liability
(D) None of these
Answer:
(C) A Liability

Question 47.
Balance Sheet is a:
(A) Account
(B) Statement
(C) Both (A) and (B)
(D) All the above
Answer:
(B) Statement

Question 48.
Surrender value of an insurance policy means that value:
(A) Which is received on death of a partner
(B) Which is received when a policy matures
(C) Which can be received before the due date of the policy
(D) None of the above
Answer:
(C) Which can be received before the due date of the policy

Question 49.
Profit on sale of debentures redemption fund investment in the instance in credited to :
(A) Debenture Redemption Fund A/c
(B) Profit & Loss Appropriation A/c
(C) General Reserve A/c
(D) Sinking Fund A/c
Answer:
(A) Debenture Redemption Fund A/c

Question 50.
Balance of Income and Expenditure Account shows :
(A) Cash in hand
(B) Capital Fund
(C) Net Profit
(D) Excess of Income over Expenditure or Vice versa
Answer:
(D) Excess of Income over Expenditure or Vice versa