R4RIN – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Accountancy set-1

Receipts and Payments A/c is a summary of:

1. All Capital Receipts and Payments
2. All Revenue Receipts and Payments
3. All Revenue and Capital Receipts and Payments
4. None of the above

✅ Correct Answer: 3

Subscription received by a schoblfbr organising annual V function is treated as:

1. Capital Receipt
2. Revenue Receipt
3. Asset
4. Earned Income

✅ Correct Answer: 3

Out of the following items, which one is shown in the Receipts and Payments Account?

1. Outstanding Salary
2. Depreciation
3. Life Membership Fees
4. Accrued Subscription

✅ Correct Answer: 2

In case specific fund is maintained, the expenses exceeding the amount of the fluids, should be recorded on:

1. Liabilities side of the Balance Sheet
2. Debit side the Income and Expenditure Account
3. Credit side of the Income and Expenditure Account
4. Assets side of the Balance Sheet

✅ Correct Answer: 2

All receipts from sale of consumable items are treated as:

1. Capital Receipts
2. Revenue Receipts
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 2

Capital fUnd is calculated:

1. Income-Expenditure
2. Assets Liabilities
3. Capital + Liabilities
4. None of these

✅ Correct Answer: 2

Subscription redeved in advance during the current year is:

1. An income
2. An Asset
3. A liability
4. None of these

✅ Correct Answer: 3

Balance of Income and Expenditure Account shows:

1. Cash in hand
2. Capital Fund
3. Net Profit
4. Excess of Income over Expenditure or Vice Versa

✅ Correct Answer: 4

Property received as a result of the will of the deceased person is called:

1. Legacy
2. Honorarium
3. Donation
4. Subscription

✅ Correct Answer: 1

Receipts and Payments Account usually indicates:

1. Surplus
2. Capital Fund
3. Debit Balance
4. Credit Balance

✅ Correct Answer: 3

Income and Expenditure Account generally indicates:

1. Surplus/Deficit
2. Cash Balance
3. Capital Fund
4. Net Profit/Loss

✅ Correct Answer: 1

Donation received for a special purpose:

1. Should be credited to Income and Expenditure A/c
2. Should be credited to a separate account and shown in the Balance Sheet
3. Should be shown on the Assets side of the Balance Sheet
4. None of these

✅ Correct Answer: 2

In not-for-profit organisation, excess of expenditure over income is called :

1. Loss
2. Profit
3. Deficit
4. Surplus

✅ Correct Answer: 3

Which of the following is a non-profitable organisation ?

1. Jharkhand Academic Council
2. Tata Steel
3. Air India
4. Reliance Co. Ltd.

✅ Correct Answer: 1

Income and Expenditure Account is preparedly :

1. Trending Organisation
2. Non-trading Organisation
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 2

Sale of old newspapers is:

1. Capital Receipt
2. Revenue Receipt
3. Asset
4. Profit

✅ Correct Answer: 2

Income and expenses related to the prize fund is shown in:

1. Income and Expenditure Account
2. Assets side of the Balance Sheet
3. Liabilities side of the Balance Sheet
4. Cash Account

✅ Correct Answer: 1

Which of the following is not a not-for-profit organisation:

1. School
2. Hospital
3. Club
4. Partnership Firm

✅ Correct Answer: 4

Subscription received during the year 50,000 Rs. Subscriptions outstanding at the end of the year 8,000 Rs. Subscription outstanding at the beginning of the year 6,000 Rs. Net Income from subscription will be :

1. 48,000 Rs.
2. 64,000 Rs.
3. 52,000 Rs.
4. 36,000 Rs.

✅ Correct Answer: 3

Subscription received during the year ₹ 1,80,000 Subscriptions outstanding at the end of the year ₹ 20,000 Subscriptions received in advance at the end of the year ₹ 10,000. The amount of subscription to be credited to Income and Expenditure Account will be:

1. ₹ 2,10,000
2. ₹ 1,90,000
3. ₹ 1,70,000
4. ₹ 2,00,000

✅ Correct Answer: 2

In case specific fund is maintained, the expenses exceeding the amount of the funds, should be recorded on:

1. Liabilities side of the Balance Sheet
2. Debit side of the Income and Expenditure Account
3. Credit side of the Income and Expenditure Account
4. Assets side of the Balance Sheet

✅ Correct Answer: 2

Income and Expenditure Account is:

1. Personal Account
2. Real Account
3. Nominal Account
4. None of these

✅ Correct Answer: 3

Life Membership Fees received by a club is shown in :

1. Income and Expenditure A/c
2. Balance Sheet
3. Receipts and Payments A/c
4. None of these

✅ Correct Answer: 2

Receipts and Payments Account is a :

1. Personal Account
2. Real Account
3. Nominal Account
4. None of these

✅ Correct Answer: 2

Income and Expenditure Account is prepared :

1. By Business Organisation
2. By Industrial Organisation
3. By Not-for-Profit Organisation
4. By All Organisations

✅ Correct Answer: 3

Payment of honorarium to secretary is treated as :

1. Capital expenditure
2. Revenue expenditure
3. An Income
4. None of these

✅ Correct Answer: 2

Outstanding subscription is a:

1. Income
2. Asset
3. (a) and (b) both
4. None of these

✅ Correct Answer: 3

Legacies should be treated as :

1. A Liability
2. A Revenue Receipt
3. An Income
4. None of these

✅ Correct Answer: 1

The excess of assets over liabilities in non-trading concerns is termed as:

1. Capital Fund
2. Capital
3. Profit
4. Net Profit

✅ Correct Answer: 1

For a non-trading concern, honorarium paid is:

1. An Income
2. An Asset
3. An Expense
4. None of these

✅ Correct Answer: 2

Entrance fees, unless otherwise stated, is treated as:

1. A Capital Receipt
2. A Revenue Income
3. A Liability
4. None of these

✅ Correct Answer: 2

Specific donation is:

1. Capital Receipt
2. (Revenue Receipt
3. Asset
4. None of these

✅ Correct Answer: 1

Income and Expenditure Account records transactions of:

1. Capital nature only
2. Revenue nature only
3. (a) and (b) both
4. None of these

✅ Correct Answer: 2

Life membership fee received by a club is:

1. Revenue Receipt
2. Capital Receipt
3. (a) and (b) both
4. None of these

✅ Correct Answer: 2

All receipts of capital nature are shown in :

1. Income and Expenditure A/c
2. Balance Sheet
3. P. & L. A/c
4. None of these

✅ Correct Answer: 2

All items of revenue in nature are shown in:

1. Income and Expenditure A/c
2. Balance Sheet
3. (a) and (b) both
4. None of these

✅ Correct Answer: 1

Which of the following is not a not-for-profit organisation ?

1. College
2. Sports Club
3. Maruti Udyog
4. Hospital

✅ Correct Answer: 3

Subscriptions received in advance by a club are shown on… .of the Balance Sheet

1. Assets Side
2. Liabilities Side
3. Debit Side
4. Credit Side

✅ Correct Answer: 2

Which of the following is not an income ?

1. Subscription
2. Donation
3. Sale of Ticket
4. Endowment Fund

✅ Correct Answer: 4

Most transaction in non-trading concerns are:

1. Cash
2. Credit
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 1

The main object of non-profit organisation is:

1. To earn Profit
2. To Serve the Society
3. To Prepare Profit & Loss A/c
4. All the above

✅ Correct Answer: 2

Subscription received by an organisation is:

1. Capital Receipt
2. Revenue Receipt
3. Both (a) and (b)
4. None of the above

✅ Correct Answer: 2

Features of a partnership firm are:

1. Two or more persons
2. Sharing profit and losses in the agreed ratio
3. Business carried on by all or any of them acting for all
4. All of the above

✅ Correct Answer: 4

What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month ?

1. 7 months
2. 6 months
3. 5 months
4. 6.5 months

✅ Correct Answer: 4

A draws ₹ 1,000 per month on the last day of every month. If the rate of interest is 5% p.a., then the total interest on drawings will be :

1. ₹ 325
2. ₹ 275
3. ₹ 300
4. ₹ 350

✅ Correct Answer: 2

In the absence of an agreement, partners are entitled to:

1. Salary
2. Profit share in capital ratio
3. Interest on loan and advances
4. Commission

✅ Correct Answer: 3

Fluctuating capital account is credited with :

1. Interest on capital
2. Profit of the year
3. Remuneration of partners
4. All of these

✅ Correct Answer: 4

Interest on Partner’s capital is :

1. An expenditure
2. An appropriation
3. A gain
4. None of these

✅ Correct Answer: 2

Calculate interest on drawings @ 12% p.a. for Gambhir if he withdrew 7 2,000 once at the beginning of each month:

1. 7 1,560
2. 7 1,500
3. 7 1,200
4. 7 1,000

✅ Correct Answer: 1

Interest on drawings of the Partners is a :

1. Loss to business
2. Profit to business
3. Profit to partners
4. Loss to Bank

✅ Correct Answer: 2