Pattern of Mock Test as per Sample provide by NTA
| Typology of MCQs | Number of MCQs | Total Marks |
| 1. Standalone Question | 34 MCQ | 170 |
| 2 (i). Assertion –Reasoning Questions 2 (ii). Statement based Questions |
04 MCQs | 20 |
| 3 (i) Table based Questions 3 (ii) Match the following Questions |
02 MCQ | 10 |
| 4 (i) Case-Based Questions 4 (ii) Text- Based Questions |
10 MCQs | 50 |
| 40 Questions is to be attempted out of 50 | 200 |
- Salaries outstanding at the beginning should be:
(a) Added to salaries under expenditure side of income and expenditure account
(b) Shown on the asset side of the balance sheet
(c) Shown on the liability side of the balance sheet
(d) Deducted from salaries under expenditure side of income and expenditure account - Match list 1 with list 2
List 1 List 2 (A) Limited liability partnership (1) It can be formed with a minimum of two individual or body corporate through their nominees. (B) Particular Partnership (2) It is formed for a specific venture or for a particular nominee. (C) Partnership (3) It is an association of two or more individuals. (D) Mutual agency (4) A partner is both an agent and a principal in a partnership firm. Choose the correct answer from the options given below:
(a) (A)-(1), (B)-(2), (C)-(3), (D)-(4)
(b) (A)-(2), (B)-(3), (C)-(1), (D)-(4)
(c) (A)-(2), (B)-(1), (C)-(3), (D)-(4)
(d) (A)-(4), (B)-(2), (C)-(1), (D)-(3) - Assertion (A): Maximum number of partners in a partnership firm is 100.
Reason (R): Maximum number of partners in a partnership firm is prescribed in Companies (Miscellaneous) Rules, 2014
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true. - The final accounts of a partnership firm are prepared in the same way as those prepared for a sole trading concern with just one difference
(a) Related with the quality of products
(b) Amount of taxes imposed
(c) Related with the distribution of profits among partners
(d) Location of firm - Which one of the following item cannot be recorded in the appropriation account in case of partnership accounting
(a) Interest on capital
(b) Interest on drawings
(c) Rent paid to partners
(d) Partners salary - Which of the following is true regarding salary to a partner when the firm maintains fixed capital accounts?
(a) Debit Partner’s Loan A/c and Credit P & L Appropriation A/c.
(b) Debit P & L A/c and Credit Partner’s Capital A/c.
(c) Debit P & L Appropriation A/c and Credit Partner’s Current A/c.
(d) Debit P & L Appropriation A/c and Credit Partner’s Capital A/c. - A partner withdrew Rs. 20,000 at the end of each half year. Interest on his total drawings will be calculated for how many months?
(a) 6
(b) 3
(c) 1.5
(d) 4.5 - Interest allowed on partner’s loan will be debited to:
(a) Partner’s Loan Account
(b) Partner’s Capital Account
(c) Profit & Loss Account
(d) Profit & Loss Appropriation Account - Remuneration to partners will be provided to the partners of “Be Safe” but only out of:
(a) Profits for the accounting year
(b) Reserves
(c) Accumulated Profits
(d) Goodwill - Calculate the value of Goodwill on the basis of three year’s average profit of the preceding five years profit which were as follows
Year 2015-16 2014-15 2013-14 2012-13 2011-12 Profit (Rs.) 8,00,000 15,00,000 18,00,000 4,00,000 (loss) 13,00,000 (a) Rs. 36,00,000
(b) Rs. 18,00,000
(c) Rs. 12,00,000
(d) Rs. 30,00,000 - The value of goodwill, according to the simple profit method, is:
(a) The product of current year’s profits and number of years.
(b) The product of last year’s profits and number of years
(c) The product of average profits of the given year and number of years
(d) None of the above - Average profit Rs. 25,000 normal profit Rs. 10,000. Calculate the value of goodwill on the base of 4 years purchase of super profit.
(a) Rs. 45,000
(b) Rs. 40,000
(c) Rs. 60,000
(d) None of these - At the time of reconstitution of a partnership firm, recording of an unrecorded assets will lead to:
(a) Gain to the existing partners
(b) Loss to the existing partners
(c) Neither gain nor loss to the existing partners
(d) None of the above - Revaluation of assets and re-assessment of liabilities at the time of reconstitution is necessary because their present value or liabilities may be different from their:
(a) Market Value.
(b) Net Value.
(c) Cost of Asset
(d) Book Value - At the time of change in profit sharing ratio, why is it important to compute the sacrifice or gain made by each partner?
(a) Because sacrificing partner compensates the gaining partner
(b) Because gaining partner compensates the sacrificing partner
(c) Both (a) and (b)
(d) None of the above - A partner in a firm–
(a) Can not transfer his share to an outsider
(b) Can transfer his share to an outsider with the consent of majority partners
(c) Can transfer his share to an outsider without the consent of any other partner
(d) Can transfer his share to an outsider with the consent of all other partner - A and B partners sharing profits and losses in the ratio of 3:2. C is admitted with 1/3 share in the profit. What will be the new profit-loss sharing ratio?
(a) 3:2:3
(b) 6:4:5
(c) 6:4:3
(d) 3:2:5 - The goodwill brought in by new partner is withdrawn by old partners in their
(a) New profit-sharing ratio
(b) Sacrifice ratio
(c) Capital ratio
(d) Equally - A, B, C are partner sharing profit in the ratio of 4: 3: 2. D is admitted for 2/9th share of profit and brings Rs. 30,000 as capital and 10,000 for his share of goodwill. The new profit sharing ratio between partners will be 3 : 2 : 2 : 2. Goodwill amount will be credited in the capital account of:
(a) A only (equally)
(b) A, B and C (equally)
(c) A and B (equally)
(d) A and C (equally) - X and Y were partners in a firm sharing profits in 3 : 2 ratio. Their capitals were Rs. 3,00,000 and Rs. 5,00,000 respectively. Z was admitted as a new partner for 1/4th share in the profits. Z brought Rs. 3,00,000 as his capital. The amount of goodwill Premium brought by Z will be:
(a) Rs. 30,000
(b) Rs. 1,00,000
(c) Rs. 50,000
(d) Rs. 25,000 - At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs.50,000. Claim for workmen compensation Rs.55,000.
(a) Rs.50,000 Debited to the Partner’s capital Accounts.
(b) Rs.50,000 Debited to Revaluation Account.
(c) Rs.5,000 Debited to Revaluation Account.
(d) Rs.5,000 Credited to Revaluation Account. - A and B are partners in a firm sharing profits and losses in the ratio of 3:2.
Balance Sheet (Extract)
Liabilities Rs. Assets Rs. Fixed Assets 1,20,000 If the value of Fixed Assets appeared in the balance sheet is overvalued by 25 %, find out the value of Fixed Assets to be shown in the new Balance Sheet:
(a) Rs. 30,000
(b) Rs.1,50,000
(c) Rs. 96,000
(d) Rs.90,000 - Assertion (A): Share of Profit or loss on revaluation at the time of admission is not transferred to incoming partners’ capital Account
Reason (R) : Profit or loss on revaluation of assets at the time of admission of a Partner belongs to pre- admission period of incoming partner and hence belong to old partners:
In the context of the above two statements Assertion (A) and Reason (R), which of the following is correct
Codes:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false - R, J and D are partner sharing profits in the ratio 7:5:4. D died on 30th June 2016 and profits for the accounting year 2015-16 were Rs.24,000. How much share in profits for the period 1st April 2016 to 30th June 2016 will be credited to D’s account?
(a) Rs. 6,000
(b) Rs. 1,500
(c) Rs. 2,500
(d) Rs. 2,000 - On retirement or death of a partner, the remaining partner those who have gained due to change in profit sharing ratio should compensate the :
(a) Retiring partner only
(b) Remaining partners (who have sacrificed) as well as retiring partners
(c) Remaining partners (who have sacrificed)
(d) Any one of the above - If all the partners are insolvent except one:
(a) Only partnership is dissolved
(b) Partnership agreement is dissolved
(c) The insolvent partners are automatically thrown out form the business
(d) Partnership firm is dissolve - Reserve share capital means:
(a) Part of authorized capital to be called at beginning
(b) Portion of uncalled capital to be called only at liquidation
(c) Oversubscribed capital
(d) Under subscribed capital - In the Balance Sheet of a company, Reserve Capital
(a) is required to be disclosed under Authorized Capital.
(b) is required to be disclosed under Issued Capital.
(c) is required to be disclosed under Subscribed Capital.
(d) is not required to be disclosed. - Unless otherwise stated, a preference share is always presumed to be:
(a) Cumulative, participating and non-convertible
(b) Non – cumulative and non – participating
(c) Cumulative, non- participating and non- convertible
(d) Non-cumulative participating and non-convertible - Match the following
A. Authorized capital
B. Preference share
C. Reserve capital
D. Share
i. Reserves their preference in dividend
ii. Called up only on liquidation of company
iii. Unit of a fixed small amount in share capital
iv. Maximum amount of share capital
A. B. C. D.
(a) iv, iii, ii, i
(b) iv, i , ii ,iii
(c) iii, i ,iv, ii
(d) iv, ii, i, iii - Securities and Exchange Board of India has laid down which of the following?
(a) Maximum subscription of a company must be 60 percent of shares issued for subscription before it allots the shares.
(b) Maximum subscription of a company must be 90 percent of shares issued for subscription before it allots the shares.
(c) Minimum subscription of a company must be 60 percent of shares issued for subscription before it allots the shares.
(d) Minimum subscription of a company must be 90 percent of shares issued for subscription before it allots the shares - Pankaj Limited issued a prospectus inviting application for 2,000 shares. Applications were received for 3,000 shares and pro rata allotment was made on the application for 2,400 shares. If Anmol has been allotted 40 shares, how many shares he must have applied for?
(a) 40
(b) 44
(c) 48
(d) 52 - If a share of Rs. 10 on which Rs. 8 has been called and Rs. 6 is paid is forfeited the share capital A/c should be debited with:
(a) Rs. 10
(b) Rs. 8
(c) Rs. 6
(d) Rs. 2 - X was issued 100 shares of Rs. 10 each at a premium of Rs.1 he paid application money and allotment money which is total amounted to Rs. 5 (excluding premium) and failed to pay the balance call money of Rs. 5. Find the maximum discount that can be given at the time reissue of shares:
(a) Rs. 4 per shares
(b) Rs. 5 per shares
(c) Rs. 2 per shares
(d) Rs. 6 per shares - Profit on cancellation of own debentures should be transferred to
(a) Profit & Loss Account
(b) Profit & Loss Appropriation Account
(c) Capital Reserve Account
(d) Reserve Capital Account - Financial statements are:
(a) Anticipated facts
(b) Recorded facts
(c) Estimated facts
(d) Analysis facts - Given below are two statements
Statement I: Financial Statements include Statement of Profit and Loss, Balance Sheet and Cash Flow Statement
Statement II: The prescribed form of the statement of Profit and Loss for the companies is given in the Schedule III of the Companies Act, 2013.
In light of the above statements, choose the most appropriate answer from the options given below:
(a) Both Statement I and Statement II are correct
(b) Both Statement I and Statement II are incorrect
(c) Statement I is correct but Statement II is correct
(d) Statement I is incorrect but Statement II is correct - Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A): The focus of calculation of working capital revolves around managing the operating cycle of the business.
Reason (R): It is because the concept of operating cycle is required to ascertain the liquidity of assets and urgency of payments to liabilities.
In the context of the above two statements, which of the following is correct?
Codes:
(a) Both (A) and (R) are true, but (R) is not the explanation of working capital management.
(b) Both (A) and (R) are true and (R) is a correct explanation of (A).
(c) Both (A) and (R) are false.
(d) (A) is false, but (R) is true. - While preparing cash flow statement ‘cash and cash equivalents’ consist of assets which can be converted into cash within
(a) 2 months
(b) 4 months
(c) 3 months
(d) 6 months - In a statement of cash flows (Indirect method), a decrease in inventory should be reported as:
(a) A deduction from net income in determining cash flows from operating activities
(b) An addition to net income in determining cash flows from operating activities
(c) An increase in investing activity
(d) Not reported
Read the following paragraph and answer the following Question from (41) to (45).
A and B are partners sharing profit and loss in the ratio of 4:1. Their capital balances as on 1st April 2021 amounting to Rs.5,00,000 each. On 1st January, 2022, A contributed an additional capital of Rs.1,00,000. Following are the terms of partnership deed:
(i) Interest on capital @ 10% per annum
(ii) Interest on drawings @ 8% per annum
(iii) Salary to A Rs.1,500 per month
(iv) Commission to B @ 20% on net profit after charging interest on capital, salary and his commission. Drawings of the partners were Rs.25,000 and Rs.40,000 respectively during the year. Net profit earned by the firm was Rs.3,16,500.
Choose the correct option based on the above information:
- What is the amount of Interest on capitals of A and B:
(a) Rs.60,000 each
(b) Rs.50,000 to A and Rs. Rs.52,500 to B
(c) Rs.60,000 to A and Rs.50,000 to B
(d) Rs.52,500 to A and Rs. 50,000 to B - What is the amount of interest on drawings of A and B: (a) 2,000 and Rs. 3,200 respectively
(b) Rs. 3,200 and Rs. 2,000 respectively
(c) Rs. 1,000 and Rs. 1,600 respectively
(d) Rs. 1,600 and Rs. 1,000 respectively - What is the amount of commission payable to B?
(a) Rs. 39,720
(b) Rs. 63,300
(c) Rs. 33,100
(d) Rs. 52,750 - What is A’s share in the net divisible profit?
(a) Rs. 1,32,400
(b) Rs. 33,100
(c) Rs. 2,53,200
(d) Rs. 1,65,500 - What will be the closing capital of A after all adjustments?
(a) Rs. 5,00,000
(b) Rs. 6,00,000
(c) Rs. 7,83,900
(d) Rs. 7,84,900
Read the following paragraph and answer the following Question from (46) to (50)
A Ltd issued 2,00,000 shares of Rs. 100 each at 20% premium, payable as under: On Application: Rs. 40 per share (including 10% premium); On Allotment: Rs. 40 per share (including 10% premium); and balance on First & Final Call: 3,00,000 shares were subscribed. 50,000 applications were rejected and pro-rata allotment was made to remaining applicants. All money was duly received except from Govind, allotted to whom 15,000 shares failed to pay allotment and calls. These shares were forfeited and out of which 9,000 shares reissued at Rs.75 per share fully paid.
- What the amount was called in first & final call per share?
(a) Rs. 20 per share
(b) Rs. 40 per share
(c) Rs. 30 per share
(d) None of these - Which of the following amount received on allotment of shares?
(a) Rs. 55,50,000
(b) Rs. 60,00,000
(c) Rs. 1,20,00,000
(d) Rs. 75,50,000 - Which of the following amount will be debited to calls-in arrears account on allotment?
(a) Rs. 6,00,000
(b) Rs. 4,50,000
(c) Rs. 3,00,000
(d) Rs. 7,50,000 - Which of the following amount will be transferred to Capital Reserve Account?
(a) Rs. 2,70,000
(b) Rs. 1,35,000
(c) Rs. 45,000
(d) Rs. 6,75,000 - What is the balance of share forfeiture account after transfer to Capital Reserve Account?
(a) Rs. 45,000
(b) Rs. 2,40,000
(c) Rs.4,50,000
(d) Rs. 1,80,000
Answer Key : Open