ISC ACCOUNTS SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER WITH SOLVED ANSWERS

ISC SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER ACCOUNTS WITH SOLVED ANSWER

 

SPECIMEN QUESTION PAPER ISC 12 ACCOUNTS

Maximum marks : 80
Time allowed : One and a half hours 
(Candidates are allowed additional 15 minutes for only reading the paper)
All questions of Section A are Compulsory. 
All questions from either Section B or Section C are Compulsory.
Each correct answer carries 2 marks.
Select the correct option for each of the following questions.

ISC SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER ACCOUNTS WITH SOLVED ANSWER

SECTION A
Answer all questions.

Question 1

Pick the odd one out from the following:

(a) Interest on Partner’s capital

(b) Partner’s Commission

(c) Salary due to the manager of the firm

(d) Salary due to a partner of the firm

Question 2

Anil, Ravi and Bela are partners in a firm sharing profits and losses in the ratio of 6:4:1. Anil guaranteed a minimum profit of ₹ 16,000 to Bela. The trading profit of the firm for the year ending 31st March, 2021, was ₹ 1,32,000. Anil share in the profits of the firm will be:

(a)₹ 72,000

(b)₹ 68,000

(c)₹ 69,600

(d)  ₹ 16,000

Question 3

Mohit, Rachit and  Mayank  started a partnership business on 1st April, 2019. Their capital contributions were ₹4,00,000 , ₹3,00,000 and ₹2,00,000 respectively. Their Drawings are  ₹50,000, ₹ 40,000 and ₹30,000 respectively. Interest charged on Drawings @ 6 % p.a. Interest on Drawings charged from Mohit will be:

(a)₹ 1,500

(b) ₹ 2,400

(c) ₹ 1,800

(d) ₹ 3,000

Question 4

X,Y, and Z are partners sharing profits in the ratio of 5 : 3 : 2 Their capitals on 1st April 2019 were ₹ 4,00,000 ₹ 3,00,000 and ₹ 2,00,000 respectively.During the year their drawings were ₹ 20,000, ₹ 15,000 and ₹ 10,000 respectively. After closing the accounts on 31st March 2020 it was found out that according to the partnership agreement interest on drawing ₹ 1,000, ₹ 750 and ₹ 250 respectively was not charged, before distribution of profit. It was agreed among the partners to make the adjustment entry at the beginning of the next year rather than to alter the Balance Sheet.  Journal entry will be passed-

(a) Y’s Capital A/c   Dr  150

To Z’s Capital A/c        150

(The adjustment of interest on Drawing omitted in previous year’s Account)

(b) x’s Capital A/c   Dr  150

To y’s Capital A/c        150

(The adjustment of interest on Drawing omitted in previous year’s Account)

(c) Y’s Capital A/c   Dr  150

To X’s Capital A/c        150

(The adjustment of interest on Drawing omitted in previous year’s Account)

(d) None of these

Question 5

Share of goodwill brought in cash by the new partner is called ….

(a) Profit and Loss
(b) Premium
(c) Assets

(d) Liabilities

ISC SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER ACCOUNTS WITH SOLVED ANSWER

Note: Answers are given below at the end.

Also read :Issue of Shares MCQs With Solved Answer

Question 6

 A and B are partners in a firm sharing profit and losses in the ratio of
3 : 2. C is admitted for 1/5th share in profits of the firm. C gets his share equally from A and B .New Ratio?

(a) 5 : 3 : 2
(b) 12:8:5
(c) 4:3: 2

(d) None of these

Question 7

A and B are partners sharing profits and losses in the ratio of 3:2 (A’s Capital is Rs. 60,000 and B’s Capital is Rs. 30,000). They admitted C agreed to give 1/5
th share of profits to him. How much C should bring in towards his capital?
(a)  18,000.
(b)  24,000.
(c)  29,000.
(d)  22,500.

Question 8

Tina and Sonu are partners in a firm sharing profit in the ratio 5 : 3. They admitted Gati as a new partner for 1/4th share in the profit. Gati brings 50,000 for her share of goodwill is cash . What journal entries passed in the books of the firm after the admission of Gati? The new profit sharing ratio will be 2 : 1 : 1.

(a) (i)Cash/Bank A/c Dr. 50,000

 To Premium for goodwill A/c 50,000

(ii) Premium for goodwill A/c Dr 50,000

To Tina’s Capital A/c 25,000

To Sonu’s Capital A/c 25,000

 

(b) (i) Cash/Bank A/c Dr. 50,000

 To Premium for goodwill A/c 50,000

(ii) Premium for goodwill A/c Dr 50,000

To Tina’s Capital A/c 30,000

To Sonu’s Capital A/c 20,000

 

(c) (i) Gati’s Capital A/c Dr. 50,000

 To Premium for goodwill A/c 50,000

(ii) Premium for goodwill A/c Dr 50,000

To Tina’s Capital A/c 25,000

To Sonu’s Capital A/c 25,000

 

(d) (i) Cash A/c Dr. 50,000

 To Gati’s Capital A/c A/c 50,000

(ii) Premium for goodwill A/c Dr 50,000

To Tina’s Capital A/c 25,000

To Sonu’s Capital A/c 25,000

Question 9

If, at the time of admission of A partner , there are Reserves or Accumulated profits/losses existing in the books of the firm, these should be transferred to….

(a) Old  Partner’s Capital Accounts (if capitals are fluctuating)
(b) Old  Partner’s Current Accounts (if capitals are fixed)
(c) a and b

(d) New Partner’s Capital Accounts

Question 10

A and B  are partners in the ratio of 3:2 C is admitted in the firm for 1/5 th share in profits. Firm earns profit of Rs.1,10,000. The normal rate of return in a similar type ofbusiness is 10%. The value of total assets (excluding goodwill) and total outside liabilities are Rs.11,00,000 and Rs.1,00,000 respectively.  The value of goodwill of the firm and c share of goodwill is …..
(a) 1,00,000 and 20,000
(b) 10,00,000 and 2,00,000
(c) Nil.
(d) None of the above

Note: Answers are given below at the end.

Question 11

Goodwill can be classified into:

(a) Purchased Goodwill

(b) Self generated Goodwill

(c) a and b

(d) None of these

Question 12

Following are the factor affecting goodwill except:

(a) Nature of business.

(b) Favourable location of business

(c) Effeciency of Management

(d) Nature of goods

(e) location of the customers

Question 13

Number of year purchase?

(a) Number of years’ purchase means for how many years the firms will earn the same  amount of profit because of the past efforts.

(b) Number of years’ purchase means 12 years profit.

(c) Number of years’ purchase means 15 years future profit.

(d) Number of years’ purchase means 10 years past profit.

Question 14

Formula for super profit?

(a) Super profit= Average Profit  –  Normal profit

(b) Super profit= Normal profit – Average Profit

(c) Super profit= Weighted Average Profit  –  Normal profit

(d) Super profit= Average Profit +  Normal profit

Question 15

A, B and C are partner in a firm sharing profits and losses equally. B retires from the firm and his share is purchased by A and C in the ratio of 2:3 New Profti sharing ratio between A and C respectively would be:-
(a) 1:1

(b) 2:2
(c) 7:8

(d) 3:5

Note: Answers are given below at the end.

Question 16

A, B and C were partners sharing profits in the ratio of 6:4:5. On
1st April, 2016, B retired from the firm and the new profit sharing ratio between A and C was decided as 11:4. On B’s retirement, the goodwill of the firm valued at Rs. 90,000. Journal entry for treatment of goodwill on B’s retirement will be ?
(a) A’s Capital A/c Dr. 30,000
To B’s Capital A/c 24,000
To C’s Capital A/c 6,000

(b) A’s Capital A/c Dr. 24,000

 C’s Capital A/c 6,000
To B’s Capital A/c 30,000

(c) A’s Capital A/c Dr. 24,000
To B’s Capital A/c 20,000
To C’s Capital A/c 4,000

(d) None of these

Question 17

At the time of retirement of a partner , if goodwill appear in the Balance sheet , it must be written off  and all partner’s capital capital account debited in their ….

(a) Sacrificing Ratio

(b) Gaining Ratio
(c) New profit sharing Ratio

(d) Old profit sharing Ratio

Question 18

A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively with the capital balance of Rs. 60,000 for A ,Rs. 60,000 for B,  Rs. 40,000 for C. B declared to retire from the firm and balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 10,050 then what amount will be transferred to the loan account of C?
(a) Rs. 82,020.
(b) Rs. 50,820.
(c) Rs. 25,820.
(d) Rs. 58,820.

Question 19

The retiring partners’ claim consists of….

(a)The credit balance of Capital Account/Current Account;

(b)His/her share in the Goodwill of the firm;

(c)His/her share in the Gain/Profit on Revaluation;

(d) His/her share in General Reserve and Accumulated Profit

(e) All of these. 

Question 20

Adjustment required at the time of Retirement of a partner…….

(a) Calculation of new profit sharing ratio, gaining ratio and sacrificing ratio.

(b) Adjustment with regard to goodwill including hidden goodwill. 

(c)Adjustment with regard to undistributed profits and losses. 

(d)Preparation of Revaluation Account on retirement of a partner. 

(e)Calculation and payment of amount due to the retiring partner.

(f) ) All of these. 

ISC SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER ACCOUNTS WITH SOLVED ANSWER

Note: Answers are given below at the end.

Question 21

 The major heads under ‘Equity and Liabilities’ part  I of the company’s Balance Sheet include :

1. Shareholders’ Funds,

2. Share Application Money Pending Allotment,

3.Non-current Liabilities,

4.Current Liabilities

5. Current Assets

6. Non-Current Assets

(a) 1,2,3,4.

(b) 2,3,4,5.

(c) 3,4,5,6.
(d) 1,2,5,6.

Question 22

The major heads under ‘which the Assets side  of a company’s Balance Sheet include :

1. Non-Current Assets,

2. Current Assets 

3. Non-current Liabilities,

4.Current Liabilities

(a) 1,2,3,4.

(b) 1,2,3.

(c) 3,4.
(d) 1,2.

Question 23

Which of the following will not covered under finance cost?
(a) Discount on issue of debentures written off.
(b) Interest paid on bank overdraft.
(c) Bank charges.
(d) Premium payable on redemption of debentures written off.

Question 24

Other Current Liabilities include:
(a) Unpaid Dividend
(b) Interest accrued and due on borrowings
(c) Calls in advance
(d) Outstanding expenses etc

(e) All of these

Question 25

Which of the following item will not be shown under head of current liabilities and sub head of other current liabilities:

(a) Unclaimed dividend

(b) Calls in advances

(c) Interest accrued but not due on debentures

(d) Cash Credit

ISC SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER ACCOUNTS WITH SOLVED ANSWER

Note: Answers are given below at the end.

Question 26

Which of the following item will not be shown under head of Non-current Assets and sub head of Intangible Assets:

(a) Goodwill

(b) Licences and franchise

(c) Trademark

(d) Computer software

(e)  Loose Tools

Question 27

The maximum amount with which the company is registered is called-
(a) Authorized Share Capital

(b) Issued Share Capital
(c) Subscribed capital

(d) Called up capital

Question 28

The forfeited shares can be reissued at-
(a) Par

(b) Premium
(c) Discount

(d) All of them

Question 29

A company forfeited 200 shares of Rs.10 each (which were issued at par) held by Mr. Loya for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital will be…
(a) Rs.10,000
(b) Rs.8,000
(c) Rs.2,000
(d) Rs.1,800

Question 30

JK Ltd. Issued 20,000 Equity shares of Rs. 10 each at a premium
of Rs. 3 payable as follows: On Application Rs. 4
On Allotment Rs. 5 (including Securities Premium) On First Call Rs. 2 On Final
Call Rs. 2 All shares were duly subscribed and all money duly received. The amount to be credited to securities premium Reserve Account-

(a) Rs.1,00,000
(b) Rs.80,000
(c) Rs.60,000
(d) Rs.40,000

ISC SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER ACCOUNTS WITH SOLVED ANSWER

Note: Answers are given below at the end.

Also read : Issue of Debentures MCQs With Solved Answer

SECTION B
Answer all questions.

31. The revenue from operations of ALPHA Ltd. is ₹ 15,40,000.

Return Inward ₹ 40,000
Cost of revenue from operation is ₹ 9,00,000;
Operating expenses are ₹ 1,75,000;
Commission received is ₹ 25,000;
Profit from sale of fixed asset is ₹ 20,000.
The Operating Profit Ratio of ALPHA Ltd will be:
(a) 30%
(b) 31·33%
(c) 34%
(d) None of these

32.The particulars of JSMR Ltd are given below:
Sundry debtors ₹4,00,000
Stock ₹160,000
Marketable securities ₹80,000
Cash ₹120,000
Prepaid expenses ₹40,000
Bill payables ₹80,000
Sundry creditors ₹160,000
Debentures ₹200,000
Outstanding ₹ Expenses 160,000

The Current  Ratio of JSMR  Ltd will be:

(a) 2:1
(b) 1:1
(c) 3:1
(d) None of these

33. The particulars of Alpha Ltd are given below:
Equity Share Capital (₹)2,00,000
5% Preference Share Capital (₹)60,000
General Reserve (₹)2,10,000
Fixed Assets (₹)7,05,000
Current Assets (₹)1,95,000
Current Liabilities (₹)40,000
Loan @ 10% interest (₹)5,00,000
Tax provided during the year (₹)60,000
Profit for the current year after interest and tax (available for the shareholders) (₹) 1,90,000 The Interest Coverage Ratio of the company will be:
(a) 6  times
(b) 5 times
(c) 3·4 times
(d) 2·4 times

34. The correct formula for computing Earning per share is:
(a) 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥/ 𝑁𝑜. 𝑜𝑓 𝑆ℎ𝑎𝑟𝑒𝑠
(b) 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥 𝑎𝑛𝑑 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑/𝑁𝑜. 𝑜𝑓 𝑆ℎ𝑎𝑟𝑒𝑠
(c) 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥 𝑎𝑛𝑑 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑/𝑁𝑜. 𝑜𝑓 𝐸𝑞𝑢𝑖𝑡𝑦 𝑆ℎ𝑎𝑟𝑒𝑠
(d) 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥 𝑎𝑛𝑑 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑/𝑁𝑜. 𝑜𝑓 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑆ℎ𝑎𝑟𝑒

35. Which ratios is not included in the Balance Sheet ratio:

(a) Current Ratio
(b) Quick Ratio
(c) Debt Equity Ratio
(d) Debt to Total assets ratio
(e) Operating Ratio

ISC SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER ACCOUNTS WITH SOLVED ANSWER

Note: Answers are given below at the end.

36. Liquidity Ratios include:

(a) Current Ratio
(b) Quick Ratio
(c) a and b
(d) None of these

37. Working Capital Ratio explains the relationship between:

(a) Current Assets and Current Liability
(b) Liquid Assets and Current Liability
(c) Current Assets and Non-Current Liability
(d) Current Assets and Working Capital

38. Current Assets includes:

(a) Inventory
(b) Trade Receivable
(c) Current Investment
(d) Cash and Bank Balance
(e) All of These

39. The current Ratio of a company is 2:1. Repayment of a current Liability, current tario  is:

(a) Improve
(b) Reduce
(c) Not Alter
(d) None of these

40. The particulars of BATA Ltd are given below:
Equity Share Capital (₹)4,00,000
5% Preference Share Capital (₹)2,00,000
General Reserve (₹)2,00,000
Fixed Assets (₹)7,50,000
Current Assets (₹)2,50,000
Current Liabilities (₹)40,000
Loan @ 10% interest (₹)1,60,000
 Proprierary Ratio of the company will be:
(a) .8:1
(b) ·75:1
(c) ·70:1
(d) ·06:1

ISC SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER ACCOUNTS WITH SOLVED ANSWER

Note: Answers are given below at the end.

Answers:

1. Answer- (c) Salary due to the manager of the firm

2. Answer- (b)₹ 68,000

3. Answer-(a)₹ 1,500

4. Answer- 

(a) Y’s Capital A/c   Dr  150

To Z’s Capital A/c        150

(The adjustment of interest on Drawing omitted in previous year’s Account)

5. Answer-(b) Premium

6.Answer- (a) 5 : 3 : 2

7.Answer-  (d)  22,500.

8.Answer-  (a) 

(a) (i)Cash/Bank A/c Dr. 50,000

 To Premium for goodwill A/c 50,000

(ii) Premium for goodwill A/c Dr 50,000

To Tina’s Capital A/c 25,000

To Sonu’s Capital A/c 25,000

9. Answer- (c) a and b

10. Answer- (a) 1,00,000 and 20,000

11. Answer- (c) a and b

12. Answer- (e) location of the customers

13. Answer- (a) Number of years’ purchase means for how many years the firms will earn the same  amount of profit because of the past efforts.

14. Answer- (a) Super profit= Average Profit  –  Normal profit

15. Answer- (c) 7:8

16. Answer- (a)

A’s Capital A/c Dr. 30,000
To B’s Capital A/c 24,000
To C’s Capital A/c 6,000

17. Answer- (d) Old profit sharing Ratio

18. Answer- (a) Rs. 82,020.

19. Answer- (e) All of these. 

20. Answer- (f) ) All of these. 

21. Answer- (a) 1,2,3,4.

22. Answer- (d) 1,2.

23. Answer- (c) Bank charges.

24. Answer- (e) All of these

25. Answer- (d) Cash Credit

26. Answer- (e)  Loose Tools

27. Answer- (a) Authorized Share Capital

28. Answer-  (d) All of them

29. Answer-  (d) Rs.1,800    

30. Answer- (c) Rs.60,000

ISC SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER ACCOUNTS WITH SOLVED ANSWER

31. Answer- (a) 30%

32. Answer- (a) 2:1

33. Answer-(a) 6  times

34. Answer-(c) 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥 𝑎𝑛𝑑 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑/𝑁𝑜. 𝑜𝑓 𝐸𝑞𝑢𝑖𝑡𝑦 𝑆ℎ𝑎𝑟𝑒𝑠

35. Answer- (e) Operating Ratio

36. Answer- (c) a and b

37. Answer- (a) Current Assets and Current Liability

38. Answer- (e) All of These

39. Answer- (a) Improve

40. Answer- (a) .8:1

ISC SEMESTER 1 EXAMINATION SPECIMEN QUESTION PAPER ACCOUNTS WITH SOLVED ANSWER