ISC Class 12 Accounts Competency Focused Questions 2026, Download PDF for Board Exam Preparation

Particulars

Details

Board

Council for the Indian School Certificate Examinations (CISCE)

Class

12

Subject

Accounts

Exam Date

20 February 2026

Question Type

Competency Focused Questions

Availability Mode

PDF Download

Exam Pattern

As per latest ISC syllabus and exam pattern

Official Website

cisce.org 

Question Number

Questions

1

Raju, Farhan and Rancho are partners sharing profits and losses equally. Rancho’s Capital Account is shown below: 

Rancho’s Capital A/c

Which statement is CORRECT regarding the above postings in Rancho’s Capital Account?

(a) Rancho increased his Capital by introducing Furniture and Cash at bank.

(b) Rancho retired and took the amount due to him from the firm in kind by way of Furniture and the rest through cheque.

(c) Rancho purchased Furniture from the business by paying ₹ 2,000 more than its book value.

(d) Rancho’s Capital Account shows his share of loss in the sale of Furniture.

2

Aman and Ankita are in partnership sharing profits and losses equally. Their combined capital account balance is ₹ 2,00,000. 

John is admitted as a partner. At the time of his admission:

(a) The value of non-current assets are to be increased by ₹ 30,000.

(b) John brings his share of Goodwill ₹ 20,000 which is distributed to the sacrificing partners and it is withdrawn by them.

After John’s admission, the total of all the partners’ capital accounts (including John’s capital) is ₹ 2,70,000.

What is John’s capital contribution?

(a) ₹ 20,000

(b) ₹ 40,000

(c) ₹ 50,000

(d) ₹ 70,000

3

Sky Ltd. took a loan of ₹ 4,00,000 from Next Bank for which the company placed 10% Debentures of ₹ 4,50,000 as collateral security with the bank. It also purchased a machine worth ₹ 2,70,000 and made payment to the vendors by issuing 3000, 8% debentures of ₹ 100 each. What will be total amount of Long-term borrowings in the Company’s Balance Sheet?

(a) ₹ 7,50,000

(b) ₹ 7,00,000

(c) ₹ 8,50,000

(d) ₹ 11,50,000

4

Shapoorji Pallonji group and Wilson Renewable Energy Ltd. is considering an Equity Share sale to raise up to ₹ 1,500 crore to repay its debts maturing this financial year. This repayment of debt would have been shown by the company in the Balance Sheet of 2023-24 as:

(a) long-term borrowings.

(b) short-term borrowings.

(c) other current liabilities.

(d) trade payables.

5

In accounting, what does the term ‘cell referencing’ refer to in an electronic spreadsheet?

(a) To lock the cells to prevent editing.

(b) To link cells from different worksheets.

(c) To delete cells that have sensitive information.

(d) To indicate the location of a cell within a spreadsheet.

6

Which of the following are CORRECT formulas for the calculation of capital employed?

P: Capital + Reserves + Non-current Liabilities less Goodwill (existing in the Balance

Sheet) less non-trade investment less fictitious assets.

Q: Capital + Reserves less Goodwill (existing in the balance sheet) less trade investments

less Fictitious assets.

R: Total assets less Goodwill (existing in the balance sheet) less Non-trade investments

less Fictitious assets less Outside Liabilities (Current and non-current).

S: Total assets less Goodwill (existing in the balance sheet) less Non-trade investments

less Fictitious assets less Outside Liabilities (only Current).

Choose the MOST appropriate option based on the above statements.

(a) P and Q

(b) P and R

(c) Q and S

(d) R and S

7

Which of the following statement is INCORRECT in the context of the dissolution of a partnership firm?

(a) The realisable assets and third-party liabilities to be settled, are closed and transferred to the realisation account.

(b) The loan given by the partner to the firm is closed and transferred to the partner’s capital account.

(c) The free reserves and accumulated losses are directly recorded in partners’ capital accounts.

(d) Any asset against which a provision is created is transferred at the gross value to the realization account.

8

Read the following article and answer the question that follows.

Kochi-based NBFC Indel Money to raise up to ₹200 crore through NCDs (Non-Convertible Debentures)

Kochi-based gold loan NBFC Indel Money plans to raise up to ₹ 200 crore through non-convertible debentures (NCDs) to shore up its capital and diversify lend-able resources at a coupon rate of 12.25%.

To comply with the Companies Act 2013, what is the amount of Debenture Redemption

Reserve to be created and Debenture Redemption Investment to be made by the company, if

these debentures are redeemed in lumpsum.?

(a) Debenture Redemption Reserve of ₹ 20 Crore, and Debenture Redemption Investment of ₹ 30 Crore.

(b) Debenture Redemption Reserve of ₹ 20 Crore but no Debenture Redemption Investment is required.

(c) Debenture Redemption Reserve of ₹ 30 Crore, but no Debenture Redemption Investment is required.

(d) Debenture Redemption Reserve and Debenture Redemption Investment both are not required.

9

Which of the following is considered as a Cash Flow from Financing Activity?

P : Calls in Arrears received on partly paid up shares.

Q: Dividend received on Equity Shares of other company.

R: Interest on Calls in Arrears received from shareholders.

S: Bonus shares Issued to the existing shareholders.

Choose the MOST appropriate option based on the above statements.

(a) P and R

(b) P, Q and R

(c) Q and S

(d) Q, R and S

10

A Database Management System (DBMS) provides tools for enforcing constraints, such as constraints on the values of data and access controls, that restrict who can access the data.

Which feature of DBMS is highlighted in the above statement?

(a) Concurrence Control

(b) Date Storage and Retrieval

(c) Data integrity and security

(d) Data modelling

11

Amit, Ronald and Charan dissolved their partnership firm. Dissolution expenses were ₹

10,000; out of the said expenses, ₹4,000 were to be borne by Ronald and the balance was to

be paid by the firm. ₹ 8,000 was paid by Ronald and the balance by the firm.

What is the entry to record the above transaction?

(a) Debit Realisation A/c ₹ 10,000; Credit Bank A/c ₹ 2,000; Credit Ronald A/c ₹ 8,000.

(b) Debit Realisation A/c ₹ 6,000; Debit Bank A/c ₹ 2,000; Credit Ronald A/c ₹ 8,000.

(c) Debit Realisation A/c ₹ 6,000; Credit Bank A/c ₹ 2,000; Credit Ronald A/c ₹ 4,000.

(d) Debit Realisation A/c ₹10,000; Credit Bank A/c ₹6,000; Credit Ronald A/c ₹ 4,000.

12

Sarita Ltd. (an unlisted company) redeems its 10,000, 9% Debentures of ₹ 100 each in instalments as follows:

Choose the correct option regarding the treatment of Debenture Redemption Investment by Sarita Ltd.

(a) Invest as Debenture Redemption Investment ₹30,000 on1st April, 2024.

(b) Invest as Debenture Redemption Investment ₹15,000 on1st April, 2024.

(c) Encash Debenture Redemption Investment of ₹45,000 on 31st March, 2024.

(d) Encash Debenture Redemption Investment of ₹15,000 on 31st March, 2024.

13

Nikhil Ltd. forfeited 1,000 shares of Akash of the face value of ₹ 10 each for non-payment of allotment and call money. Akash had applied for 1,600 shares and was allotted 1,000 shares on pro-rata basis. His excess application money was adjusted with sum due on allotment. Amount payable on allotment was ₹ 5 (including premium of ₹ 3) per share and on First & final call ₹ 3 per share. On forfeiture, the Securities Premium A/c was debited with:

(a) ₹ 3,000

(b) ₹ 2,000

(c) ₹ 1,000

(d) ₹ 5,000

14

What feature allows to freeze of specific rows or columns in an electronic spreadsheet?

(a) Autofill

(b) Freezing panes

(c) Date functions

(d) Print titles

15

Loews corporation reported net income of $ 364 million or $1.53 per share in the fourth quarter of 2022, compared to $ 343 million or $ 1.36 per share in the fourth quarter of 2021.

On 30th, December, 2022 the market price of its share was $58.33 per share.

What was the Price Earning Ratio of the company on 30th December, 2022?

(a) 42.89 times

(b) 42.58 times

(c) 38.12 times

(d) 38.13 times

ISC Class 12 Accounts Competency Focused Questions 2026

Friday, February 20

Accounts