CBSE Class 12th Accountancy Important MCQs: The CBSE Class 12th Accountancy Board Exam 2025 requires thorough practice, especially with Multiple-Choice Questions (MCQs), which play a key role in scoring well. To help students prepare efficiently, we have compiled the top 50 MCQs from previous years' question papers and CBSE sample papers, along with detailed answers. These important MCQs cover essential topics from all the chapters, ensuring a strong revision before the exam. Solve these high-weightage questions to boost your confidence and improve your exam performance.
CBSE Class 12th Accountancy Paper: Key Highlights
| Particulars | Details |
| Exam Conducting Body | Central Board of Secondary Education (CBSE) |
| Subject | Accountancy |
| Mode of Exam | Offline |
| Exam Duration | 3 Hours |
| Medium of Exam | English / Hindi |
| Type of Questions | MCQs, Short and Long Answer Type Questions |
| Theory Marks | 80 |
| Internal Assessment | 20 |
| Total Marks | 100 |
| Passing Marks | 33% in aggregate |
CBSE Class 12th Accountancy Exam Top 50 MCQs with Answers
Here are 50 important multiple-choice questions (MCQs) from all chapters in your 12th Accountancy syllabus along with their answers:
- For which one of the following, the balance in the Securities Premium Reserve Account cannot be used?
(A) To write off preliminary expenses
(B) To pay a premium on the redemption of preference shares
(C) To pay interest on debentures
(D) To buy back its own shares - Capital employed in a business is ₹2,00,000. Normal Rate of Return on capital employed is 15%. The firm earned a profit of ₹48,000. Calculate goodwill on the basis of 3 years’ purchase of Super Profit.
(A) ₹54,000
(B) ₹60,000
(C) ₹50,000
(D) None of these - Galib & Jakib are partners in a firm. Galib is to get a commission of 10% of net profit before charging any commission. Jakib is to get a commission of 10% on net profit after charging all commissions. Net Profit for the year is ₹55,000. What will be the amount of profit to be distributed to each?
(A) ₹5,500 to Galib & ₹4,500 to Jakib
(B) ₹27,500 each
(C) ₹22,500 each
(D) None of the above - If a guarantee is given to a partner by some partners, the deficiency on such will be borne by:
(A) Partnership firm
(B) All other partners
(C) Partners who had given the guarantee
(D) None of the above - If partners maintain capital accounts on a fixed basis, the capital account will have:
(A) Credit balance
(B) Debit balance
(C) Credit or Debit balance
(D) May have Nil balance - If the partnership deed is silent, interest on drawings will be charged at:
(A) 6% p.a
(B) 6% p.m
(C) Any other Rate
(D) Will not be charged - Which is NOT a clause of the Partnership Deed?
(A) Business can be carried on by all or any of the partners acting for all
(B) Commencement of business
(C) Rights & Duties of Partner
(D) None of the above - The net profits of Kamini were ₹20,000. Gulafsa, the manager, was to be given a commission of ₹6,000. The distribution of profits will be done as:
(A) ₹10,000 each
(B) ₹7,000 each
(C) ₹13,000 each
(D) None of the above - If a partner is given a minimum guaranteed profit, but the firm makes a loss, then who will bear the deficiency?
(A) All partners in their profit-sharing ratio
(B) Only the partner who is given a guarantee
(C) The partners who gave the guarantee
(D) None of the above - In the absence of a partnership deed, how are profits shared?
(A) In the ratio of capital invested
(B) Equally among partners
(C) As per mutual agreement
(D) None of the above - Which one of the following items is NOT dealt with through the Profit and Loss Appropriation Account?
(A) Interest on Partner’s Loan
(B) Partner’s Salary
(C) Interest on Partner’s Capital
(D) Partner’s Commission - A partner withdrew ₹4,000 per month from 1st July, accounts closed on 31st March, and interest on drawings is charged at 10% p.a. What is the interest on drawings?
(A) ₹1,600
(B) ₹1,800
(C) ₹1,500
(D) ₹2,200 - A, B, and C share profits in the ratio of 2:2:1 and have fixed capitals of ₹3,00,000, ₹2,00,000, and ₹1,00,000 respectively. Interest on capitals was provided at 12% instead of 10%. Adjusting entry will be:
(A) Credit A ₹1,200; Debit B ₹800 and Debit C ₹400
(B) Debit A ₹1,200; Credit B ₹800 and Credit C ₹400
(C) Credit A ₹800; Credit B ₹400 and Debit C ₹1,200
(D) Debit A ₹800; Debit B ₹400 and Credit C ₹1,200 - Salary to a partner under a fixed capital account is credited to:
(A) Partner’s Capital A/c
(B) Partner’s Current A/c
(C) Profit & Loss A/c
(D) Partner’s Loan A/c - A business has earned a Super Profit of ₹1,00,000. The Normal Rate of Return is 10%. Calculate Goodwill.
(A) ₹10,00,000
(B) ₹54,000
(C) ₹20,000
(D) ₹36,000 - If a partner carries on a business similar to the firm and earns profit, then:
(A) Profit shall be retained by the partner
(B) Profit shall be paid to the firm
(C) Profit can be retained or paid to the firm
(D) Both A & B - Closing entry for interest on loan allowed to partners:
(A) Interest on Partner’s Loan …Dr. To Profit and Loss A/c
(B) Interest on Loan …Dr. To Profit and Loss Appropriation A/c
(C) Profit and Loss Appropriation A/c …Dr. To Interest on Partner’s Loan A/c
(D) Profit and Loss Appropriation A/c …Dr. To Interest on Loan A/c - A partner withdrew ₹8,000 each on 1st April and 1st Oct. Interest on his drawings @ 6% p.a. will be:
(A) ₹480
(B) ₹720
(C) ₹240
(D) ₹960 - Which one of the following is recorded in the Profit and Loss Appropriation Account?
(A) Interest on Loan
(B) Partner Salary
(C) Rent paid to Partner
(D) Manager’s Commission - The relationship of a partner with the firm is that of:
(A) An owner
(B) An agent
(C) An owner and an agent
(D) A manager - What should be the minimum number of persons to form a partnership?
(A) 2
(B) 7
(C) 10
(D) 20 - The maximum number of partners in a partnership firm is:
(A) 10
(B) 50
(C) 100
(D) 200 - The journal entry to distribute profits to partners is:
(A) Profit and Loss A/c Dr. To Partners’ Capital A/c
(B) Partners’ Capital A/c Dr. To Profit and Loss A/c
(C) Profit and Loss Appropriation A/c Dr. To Partners’ Capital A/c
(D) None of the above - Profit-sharing ratio is changed. Goodwill is adjusted through:
(A) Profit and Loss A/c
(B) Partners’ Capital A/c
(C) Profit and Loss Appropriation A/c
(D) None of the above - Interest on capital is allowed only when:
(A) The partnership deed provides for it
(B) Partners agree mutually
(C) Profit is sufficient
(D) None of the above - Which of the following is an essential element of a partnership firm?
(A) At least two persons
(B) Agreement between all partners
(C) Sharing of profits and losses
(D) All of the above - Which of the following statements is true?
(A) A minor cannot be admitted as a partner
(B) A minor can be admitted only for the benefits of the partnership
(C) A minor can be admitted as a full partner with equal rights
(D) None of the above - Which of the following accounts is prepared to show the appropriation of profits among partners?
(A) Trading Account
(B) Profit & Loss Account
(C) Profit & Loss Appropriation Account
(D) Partners’ Current Account - A partnership firm should have a partnership deed because:
(A) It is legally required under the Partnership Act
(B) It acts as evidence in case of disputes
(C) It is required for tax purposes
(D) None of the above - Which of the following transactions is recorded in the Profit and Loss Appropriation Account?
(A) Interest on Loan
(B) Manager’s Commission
(C) Partner’s Salary
(D) Interest on Debentures - The balance in the Securities Premium Reserve Account cannot be used for which of the following?
(A) Writing off preliminary expenses
(B) Paying dividend to shareholders
(C) Issuing bonus shares
(D) Buying back shares - A partner withdrew ₹10,000 on the 15th day of every month. Interest on drawings is charged at 12% per annum. What is the interest amount?
(A) ₹14,400
(B) ₹7,200
(C) ₹1,200
(D) None of these - Which one of the following is NOT a feature of a partnership?
(A) Sharing of profits and losses
(B) Joint ownership of assets
(C) Unlimited liability of partners
(D) One partner can transfer ownership without consent - Which of the following accounts will have a credit balance in case of a partnership firm?
(A) Partner’s Capital Account
(B) Drawings Account
(C) Profit & Loss Account
(D) None of the above - If goodwill is ₹1,20,000, average profit is ₹60,000, normal rate of return is 10% and capital employed is ₹4,80,000, what is the capitalized value of the firm?
(A) ₹6,00,000
(B) ₹5,00,000
(C) ₹4,00,000
(D) ₹7,00,000 - Which one of the following is an intangible asset?
(A) Debtors
(B) Land
(C) Goodwill
(D) Cash - Which of the following is NOT considered while preparing the Revaluation Account?
(A) Revaluation of assets
(B) Reassessment of liabilities
(C) Partner’s Drawings
(D) Adjustment of goodwill - The guarantee of profit is given to a partner to ensure that:
(A) The partner always gets a minimum share of profit
(B) The partner does not have to share losses
(C) The firm can attract new partners
(D) The firm's profit is distributed equally - The amount of goodwill is recorded in the books of accounts only when:
(A) A new partner is admitted
(B) Goodwill is purchased
(C) The firm makes an agreement to do so
(D) Goodwill is self-generated - Which of the following ratios is used to determine the amount to be paid to a retiring partner?
(A) Current Ratio
(B) Gaining Ratio
(C) Debt-Equity Ratio
(D) Fixed Asset Turnover Ratio - Which method is NOT used for the valuation of goodwill?
(A) Average Profit Method
(B) Super Profit Method
(C) Capitalization Method
(D) Net Asset Method - A partner’s share of goodwill is adjusted through which account in case of admission of a new partner?
(A) Revaluation Account
(B) Partner’s Capital Account
(C) Profit & Loss Appropriation Account
(D) Trading Account - Which of the following statements is TRUE regarding the revaluation of assets and liabilities?
(A) Revaluation is done only at the time of admission of a partner
(B) Revaluation is recorded in the Profit & Loss Account
(C) Revaluation is done when the profit-sharing ratio changes
(D) Revaluation is not required at the time of retirement - A partnership is dissolved when:
(A) A partner retires
(B) A partner is admitted
(C) The partnership agreement is terminated
(D) The capital of the firm is increased - A minor in a partnership firm:
(A) Can become a partner with full rights
(B) Cannot be a partner
(C) Can be admitted only for the benefits of the partnership
(D) Must contribute capital to become a partner - In the absence of a partnership deed, which of the following statements is TRUE?
(A) Profits are shared in the capital ratio
(B) No interest on capital is allowed
(C) Salary is paid to active partners
(D) Goodwill is recorded at book value - Which of the following is NOT a type of goodwill valuation method?
(A) Super Profit Method
(B) Weighted Average Method
(C) Capitalization Method
(D) Interest Coverage Ratio Method - If a partner takes over an asset at the time of dissolution, which account is credited?
(A) Realization Account
(B) Partner’s Capital Account
(C) Profit & Loss Account
(D) Cash Account - In the event of the retirement of a partner, the balance of his capital account is transferred to:
(A) His Loan Account
(B) Profit & Loss Account
(C) The firm's General Reserve
(D) The Revaluation Account - In a partnership, the liability of partners is:
(A) Limited to their capital
(B) Unlimited
(C) Equal among all partners
(D) Dependent on the type of business
Comments
All Comments (0)
Join the conversation