Final revision before exams can be daunting. To ease your journey, here are 50 concise questions with answers to help you cover key concepts in Class 12th Accountancy quickly and efficiently.<\/p>\n\n\n\n
1. What is a partnership deed?<\/strong> 2. What happens if no partnership deed exists?<\/strong> 3. Define goodwill.<\/strong> 4. What is a sacrificing ratio?<\/strong> 5. What is a revaluation account?<\/strong> 6. What are equity shares?<\/strong> 7. What is meant by authorized capital?<\/strong> 8. Define ESOP.<\/strong> 9. What is the purpose of a Securities Premium Reserve?<\/strong> 10. What is meant by redemption of debentures?<\/strong> 11. What are financial statements?<\/strong> 12. What are comparative financial statements?<\/strong> 13. Define current ratio.<\/strong> 14. What is a cash flow statement?<\/strong> 15. What is a proprietary ratio?<\/strong> 16. Define cash equivalents.<\/strong> 17. What are the main activities classified in a cash flow statement?<\/strong> 18. How is depreciation treated in a cash flow statement?<\/strong> 19. What is the indirect method of cash flow preparation?<\/strong> 20. Why is bank overdraft treated as a short-term borrowing?<\/strong> 21. Pass a journal entry for goods withdrawn by the proprietor worth \u20b95,000 for personal use.<\/strong> 22. Rectify this error: Wages paid \u20b910,000 recorded as Repairs.<\/strong> 23. Calculate goodwill using the average profit method. Profits: \u20b950,000, \u20b960,000, \u20b970,000. Goodwill = 2 years\u2019 average profit.<\/strong> 24. Journalize: Machinery purchased for \u20b91,00,000 with GST @18%.<\/strong> 25. What is the formula for Inventory Turnover Ratio?<\/strong> 26. What is accrued income?<\/strong> 27. Define contingent liability.<\/strong> 28. What are reserves?<\/strong> 29. What is a suspense account?<\/strong> 30. Define depreciation.<\/strong> 31. Name two liquidity ratios.<\/strong> 32. What is the purpose of a balance sheet?<\/strong> 33. State two methods of calculating depreciation.<\/strong> 34. What is trade discount?<\/strong> 35. What is the matching principle?<\/strong> 36. Define capital expenditure.<\/strong> 37. What is a liability?<\/strong> 38. What are deferred expenses?<\/strong> 39. What is working capital?<\/strong> 40. What are intangible assets?<\/strong> 41. Name two solvency ratios.<\/strong> 42. What is the format of a Trading Account?<\/strong> 43. What is abnormal loss?<\/strong> 44. Define gross profit.<\/strong> 45. What is profit and loss appropriation account?<\/strong> 46. Name one accounting standard in India.<\/strong> 47. What is marshalling?<\/strong> 48. Define internal reconstruction.<\/strong> 49. What are the two bases of accounting?<\/strong> 50. What is book value?<\/strong> These 50 questions cover key concepts essential for Class 12th Accountancy exams. Keep practicing, stay confident, and ace your exams!<\/p>\n","protected":false},"excerpt":{"rendered":" Introduction Final revision before exams can be daunting. To ease your journey, here are 50 concise questions with answers to help you cover key concepts in Class 12th Accountancy quickly and efficiently. Unit 1: Accounting for Partnership Firms 1. What is a partnership deed?A legal document specifying the rights and duties of partners in a […]<\/p>\n","protected":false},"author":1,"featured_media":859,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"googlesitekit_rrm_CAow44u0DA:productID":"","footnotes":""},"categories":[179,169],"tags":[171],"class_list":["post-858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-studies","category-viva","tag-accountancy"],"acf":[],"yoast_head":"\n
A legal document specifying the rights and duties of partners in a partnership.<\/p>\n\n\n\n
Provisions of the Indian Partnership Act, 1932 apply.<\/p>\n\n\n\n
Goodwill is the reputation or premium value of a business.<\/p>\n\n\n\n
The ratio in which old partners surrender their share of profit in favor of a new partner.<\/p>\n\n\n\n
An account used to record the revaluation of assets and liabilities during admission, retirement, or death of a partner.<\/p>\n\n\n\n
\n\n\n\nUnit 2: Accounting for Companies<\/h3>\n\n\n\n
Shares representing ownership of a company with voting rights.<\/p>\n\n\n\n
The maximum capital a company is authorized to raise.<\/p>\n\n\n\n
Employee Stock Option Plan allows employees to buy shares of the company at a predetermined price.<\/p>\n\n\n\n
It is used for issuing bonus shares, writing off preliminary expenses, or premium on redemption of debentures.<\/p>\n\n\n\n
Repayment of the amount borrowed through debentures.<\/p>\n\n\n\n
\n\n\n\nUnit 3: Analysis of Financial Statements<\/h3>\n\n\n\n
Statements that provide information about the financial performance and position of a business.<\/p>\n\n\n\n
Statements showing financial data of two or more years side by side for comparison.<\/p>\n\n\n\n
Current Ratio = Current Assets \/ Current Liabilities.<\/p>\n\n\n\n
A statement summarizing cash inflows and outflows from operating, investing, and financing activities.<\/p>\n\n\n\n
Proprietary Ratio = Proprietor\u2019s Funds \/ Total Assets.<\/p>\n\n\n\n
\n\n\n\nUnit 4: Cash Flow Statement<\/h3>\n\n\n\n
Short-term, highly liquid investments easily convertible into cash.<\/p>\n\n\n\n
Operating, Investing, and Financing activities.<\/p>\n\n\n\n
Added back to net profit in the operating activities section.<\/p>\n\n\n\n
Starts with net profit and adjusts for non-cash items and changes in working capital.<\/p>\n\n\n\n
Because it is repayable on demand.<\/p>\n\n\n\n
\n\n\n\nPractical Problems<\/h3>\n\n\n\n
Drawings A\/c Dr. \u20b95,000
To Purchases A\/c \u20b95,000<\/em><\/p>\n\n\n\n
Repairs A\/c Dr. \u20b910,000
To Wages A\/c \u20b910,000<\/em><\/p>\n\n\n\n
Goodwill = (\u20b950,000 + \u20b960,000 + \u20b970,000) \u00f7 3 \u00d7 2 = \u20b91,40,000<\/em><\/p>\n\n\n\n
Machinery A\/c Dr. \u20b91,18,000
Input GST A\/c Dr. \u20b918,000
To Bank A\/c \u20b91,18,000<\/em><\/p>\n\n\n\n
Inventory Turnover Ratio = Cost of Goods Sold \/ Average Inventory.<\/em><\/p>\n\n\n\n
\n\n\n\nAdditional Concepts<\/h3>\n\n\n\n
Income earned but not received.<\/p>\n\n\n\n
A liability that may or may not arise based on the outcome of an event.<\/p>\n\n\n\n
Profits retained in the business for future use.<\/p>\n\n\n\n
A temporary account used to rectify errors.<\/p>\n\n\n\n
A systematic allocation of the cost of a tangible asset over its useful life.<\/p>\n\n\n\n
\n\n\n\nRevision Mix<\/h3>\n\n\n\n
Current Ratio, Quick Ratio.<\/p>\n\n\n\n
To show the financial position of a business.<\/p>\n\n\n\n
Straight Line Method (SLM), Written Down Value Method (WDV).<\/p>\n\n\n\n
A reduction in price offered to buyers for bulk purchases.<\/p>\n\n\n\n
Expenses should be recognized in the same period as the revenues they help to generate.<\/p>\n\n\n\n
\n\n\n\nKey Terms<\/h3>\n\n\n\n
Expenditure incurred to acquire or upgrade fixed assets.<\/p>\n\n\n\n
An obligation arising from past events, expected to result in an outflow of resources.<\/p>\n\n\n\n
Expenses paid in advance but not yet incurred.<\/p>\n\n\n\n
Working Capital = Current Assets – Current Liabilities.<\/p>\n\n\n\n
Non-physical assets like goodwill, patents, and trademarks.<\/p>\n\n\n\n
\n\n\n\nExam Boosters<\/h3>\n\n\n\n
Debt to Equity Ratio, Interest Coverage Ratio.<\/p>\n\n\n\n
Debit: Opening Stock, Purchases, Direct Expenses.
Credit: Sales, Closing Stock.<\/p>\n\n\n\n
Loss arising from unexpected events like fire or theft.<\/p>\n\n\n\n
Gross Profit = Sales – Cost of Goods Sold.<\/p>\n\n\n\n
An account to distribute net profit among partners.<\/p>\n\n\n\n
\n\n\n\nQuick Facts<\/h3>\n\n\n\n
AS-26: Intangible Assets.<\/p>\n\n\n\n
Grouping assets and liabilities in a particular order.<\/p>\n\n\n\n
Reorganizing a company\u2019s financial structure without liquidating.<\/p>\n\n\n\n
Cash Basis, Accrual Basis.<\/p>\n\n\n\n
The value of an asset as per the books of accounts.<\/p>\n\n\n\n
\n\n\n\nConclusion<\/h4>\n\n\n\n