R4RIN – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Accountancy set-5

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:

1. 3 : 2
2. 5 : 3
3. 5 : 2
4. None of these

✅ Correct Answer: 2

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

1. Always Equal
2. Always Unequal
3. Not Necessary
4. None of these

✅ Correct Answer: 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:

1. 8 : 7
2. 4 : 5
3. 3 : 2
4. 2 : 3

✅ Correct Answer: 1

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

1. Remaining Partners
2. All Partners
3. New Partner
4. None of these

✅ Correct Answer: 2

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:

1. 3 : 2
2. 2 : 1
3. 4 : 1
4. Only Y gains by 1/3

✅ Correct Answer: 4

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. 1 : 2
2. 2 : 1
3. 3 : 1
4. 1 : 1

✅ Correct Answer: 4

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 :

1. 3 : 2
2. 2 : 2
3. 2 : 3
4. None of these

✅ Correct Answer: 1

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

1. Policy Amount + Bonus
2. Surrender Value
3. Policy Amount
4. None of these

✅ Correct Answer: 2

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

1. 5%
2. 6%
3. Bank Rate
4. 8%

✅ Correct Answer: 2

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. 1 : 2
2. 2 : 1
3. 3 : 5
4. Equal

✅ Correct Answer: 1

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

1. 3 : 2
2. 5 : 3
3. 5 :2
4. None of these

✅ Correct Answer: 1

Surrender value of an insurance policy means that value:

1. Which is received an death of a partner
2. Which is received when a policy matures
3. Which can be received before the due date of the policy
4. None of the above

✅ Correct Answer: 3

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:

1. 7 : 3
2. 1 : 2
3. 31 : 19
4. None of these

✅ Correct Answer: 3

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:

1. By debiting all Partners’ Capital Accounts in their old profit-sharing ratio
2. By debiting remaining Partners’ Capital Accounts in their new profit-sharing ratio
3. By debiting retiring Partner’s Capital Account from his share of goodwill
4. None of these

✅ Correct Answer: 1

Goodwill is paid out of the retiring partner in :

1. Old Profit-sharing Ratio
2. Capital Ratio
3. Equal Ratio
4. None of these

✅ Correct Answer: 1

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

1. New Profit-sharing Ratio
2. New Capital Ratio
3. Gaining Ratio
4. None of these

✅ Correct Answer: 3

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

1. His/her share of goodwill
2. Goodwill of the firm
3. Shares of goodwill of remaining partners
4. None of these

✅ Correct Answer: 1

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

1. Realisation Account
2. Partners’ Capital Accounts
3. Sundry Debtors Account
4. None of the above

✅ Correct Answer: 1

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

1. profit & Loss Account
2. Realisation Account
3. Partner’s Capital Account
4. Cash Account

✅ Correct Answer: 2

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

1. Realisation Account
2. Creditors’ Account
3. Partners’ Capital Accounts
4. Profit & Loss Account

✅ Correct Answer: 3

On dissolution, goodwill account is transferred to :

1. In the Capital Accounts of Partners
2. In the Credit of Cash Accounts
3. In the Debit of Realisation Account
4. In the Credit of Realisation Account

✅ Correct Answer: 3

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

1. Capital Accounts of Partners
2. Realisation Account
3. Cash Account
4. Partners’ Loan Account

✅ Correct Answer: 1

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

1. Cash Account
2. Realisation Account
3. Capital Account of the Partner
4. Profit & Loss A/c

✅ Correct Answer: 2

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

1. Realisastion Account
2. Cash Account
3. Capital Account of the Partner
4. None of the above

✅ Correct Answer: 3

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

1. Realisation Account
2. Partners’ Capital Account
3. Partner’s Loan Account
4. None of these

✅ Correct Answer: 2

Which of the following is transferred to Realisation Account ?

1. Balance of Profit Account
2. Balance of Profit & Loss Account
3. Amount realised on sale of assets
4. Reserves

✅ Correct Answer: 3

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

1. Cash Account
2. Partners’ Capital Accounts
3. Realisation Account
4. None of these

✅ Correct Answer: 2

Which of the following is not transferred to Realisatsion Account ?

1. Balance of Cash Account
2. Balance of Reserves
3. Balance of Profit & Loss Account
4. All of the above

✅ Correct Answer: 4

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

1. Realisation Account
2. Cash Account
3. Capital Account of the Partner
4. Liability Account

✅ Correct Answer: 3

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

1. Realisation Account
2. Cash Account
3. Capital Account
4. None of the Account

✅ Correct Answer: 2

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…….

1. ₹ 12,000
2. ₹ 10,500
3. ₹ 1,500
4. ₹ 32,500

✅ Correct Answer: 2

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

1. Cash Account
2. Bank Account
3. Realisation Account
4. Partners’ Capital Account

✅ Correct Answer: 3

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

1. Realisation Account
2. Partner’s Capital Account
3. Partner’s Current Account
4. None of these

✅ Correct Answer: 4

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

1. Realisation Account
2. Partner’s Capital Account
3. Cash Account
4. Asset Account

✅ Correct Answer: 2

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 :

1. Never paid
2. Fully paid
3. Partly paid
4. None of these

✅ Correct Answer: 2

Unrecorded liabilities when paid are shown in :

1. Debit side of Realisation Account
2. Debit side of Bank Account
3. Credit side of Realisation Account
4. Credit side of Bank Account

✅ Correct Answer: 1

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

1. Partners
2. Firm
3. Wife
4. None of these

✅ Correct Answer: 1

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

1. Realisation A/c
2. Partners’ Capital A/cs
3. Suspense A/c
4. None of these

✅ Correct Answer: 4

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

1. Debit Side
2. Credit Side
3. All of the above
4. Liabilities Side

✅ Correct Answer: 1

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

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

✅ Correct Answer: 3

Realisation Account is a :

1. Personal A/c
2. Nominal A/c
3. Read A/c
4. None of these

✅ Correct Answer: 2

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

1. Realisation Account
2. Drawings Account .
3. Bank Account
4. Loan Account

✅ Correct Answer: 3

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

1. Debit side of Realisation A/c
2. Debit side of Bank A/c
3. Credit side of Realisation A/c
4. Credit side of Bank A/c

✅ Correct Answer: 3

Expenses on dissolution of firm is called :

1. Realisation Expenses
2. Legal Expenses
3. Loss Expenses
4. None of these

✅ Correct Answer: 1

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

1. ₹ 8,000
2. ₹ 7,600
3. ₹ 400
4. ₹ 8,400

✅ Correct Answer: 2

Amount realised from sale of assets is recorded in :

1. Debit side of Realisation Account
2. Credit side of Realisation Account
3. Liabilities side of Balance Sheet
4. Assets side of Balance Sheet

✅ Correct Answer: 2

A firm can be voluntarily dissolved by the partners :

1. On Majority basis
2. On 3/4 Member’s decision
3. On 1/2 Member’s decision
4. None of these

✅ Correct Answer: 4

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

1. partners’ Capital Accounts
2. Cash Account
3. Realisation Account
4. Revaluation Account

✅ Correct Answer: 3

Profit/loss on Realisation Account is distributed among partners:

1. In Profit-sharing Ratio
2. In Capital Ratio
3. Equally
4. None of these

✅ Correct Answer: 1

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 ?

1. ₹ 12,000 Loss
2. ₹ 32,000 Profit
3. ₹ 30,000 Loss
4. ₹ 12,000 Profit

✅ Correct Answer: 1