Test Booklet No.

Subject : ACCOUNTANCY Test Booklet Code

Code : 301 E

A
Medium : English
(Do not open this Test Booklet until you are asked to do so)

Time Allowed : 60 minutes Maximum Marks : 200 Total Questions : 50 Number of questions to be answered : 40

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1. This Test Booklet contains 50 questions printed in English. Out of these, the candidate is required to answer any
40 questions. If a candidate answers more than 40 questions, the first 40 answered questions will be considered for
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301 E/A (2)
1. Match List-I with List-II.
List-I List-II
(Name of account to be debited or (Amount to be debited or credited)
credited, when shares are forfeited)
(A) Share Capital Account (I) Debited with amount not received
(B) Share Forfeited Account (II) Credited with amount not received
(C) Calls-in-arrears Account (III) Credited with amount received towards share capital
(D) Securities Premium Account (IV) Debited with amount called up

Choose the correct answer from the options given below :

(1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(2) (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
(3) (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

2. 400 shares of ₹ 50 each issued at par were forfeited for non-payment of final call of ₹ 10 per share. These
shares were reissued at ₹ 45 per share as fully paid-up. The amount transferred to capital reserve is :
(1) ₹ 15,000 (2) ₹ 14,000
(3) ₹ 16,000 (4) ₹ 13,000
3. When debentures are issued at premium and redeemed at premium, the journal entry will have the
following combination :
(A) Discount on issue of debentures account is credited
(B) Loss on issue of debentures account is debited
(C) Security premium account is credited
(D) Premium on redemption of debentures account is credited
Choose the correct answer from the options given below :
(1) (A), (B) and (D) only (2) (A), (B) and (C) only
(3) (A), (B), (C) and (D) (4) (B), (C) and (D) only
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301 E/A (3)

4. Arrange the following in the correct sequence in the context of debenture.

(A) Payment to debenture-holders
(B) Creation of DRR
(C) Issue of debentures
(D) Redemption becomes due
Choose the correct answer from the options given below :
(1) (A), (B), (C), (D) (2) (A), (C), (B), (D)
(3) (B), (A), (D), (C) (4) (C), (B), (D), (A)

5. If a delay occurs beyond 8 days in refunding the subscription amount, failing to gather the minimum
subscription, from the date of closure of the subscription list, the company shall be liable for interest at the
rate of :
(1) 15% (2) 12%
(3) 6% (4) Prevailing in State Bank of India

6. A company can accept calls in advance, if authorised by :

(1) Shareholders (2) Board of Directors
(3) Articles of Association (4) Memorandum of Association

7. A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. C died on 1 st July, 2023. On this date, final
accounts were prepared to ascertain profits for the period. It resulted in a profit of ₹ 1,75,000 to the firm. To
give effect to the above :
(1) Profit and Loss Account will be debited.
(2) Profit and Loss Appropriation Account will be debited.
(3) Profit and Loss Account will be credited.
(4) Profit and Loss Appropriation Account will be credited.

8. On the date of admission of a partner there was a balance of ₹ 45,000 in the account of machinery. It
was found undervalued by 10%. The value of machinery will appear in the new Balance Sheet at :
(1) ₹ 49,500 (2) ₹ 50,000
(3) ₹ 40,000 (4) ₹ 40,500
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301 E/A (4)

9. Dividend received is
(1) Operating activity
(2) Financing activity
(3) Investing activity
(4) Cash and cash equivalents

10. A partnership can have maximum 50 partners. This limit has been set by the :
(1) Indian Partnership Act, 1932
(2) State Government
(3) Indian Contract Act, 1872
(4) Central Government

11. Which of the following is an example of sequential code ?

(1) Using Code “CL001” for “Accounts of XYZ Ltd”.
(2) Using Code “100-199” for “Dealers of Small Pumps”.
(3) Using Code “SJ” for “Sales Journals”.
(4) Using Code “HQ” for “Headquarters”.

12. If there is no claim against Workmen Compensation Reserve, it is _________________ at the time of
admission of a partner.
Fill in the blank with the correct answer from the options given below.
(1) debited to old partners' capital account.
(2) credited to all partners' capital accounts.
(3) credited to old partners' capital accounts.
(4) debited to all partners' capital accounts.

13. A, B and C are partners sharing profits in the ratio of 3 : 3 : 4. They decide to share the future profits
equally. The sacrifice or gain of partners are :
(1) A gains 1/30; B gains 1/30; C sacrifices 2/30
(2) A gains 2/30; B gains 1/30; C sacrifices 3/30
(3) A sacrifices 1/30; B gains 3/30; C sacrifices 2/30
(4) A gains 2/30; B gains 3/30; C sacrifices 5/30
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301 E/A (5)

14. Match List-I with List-II.

List-I List-II
(Equal amount of drawings made) (Number of month for which interest calculated)
(A) At the end of each half year (I) 4.5 months
(B) At the beginning of each quarter (II) 6.5 months
(C) At the beginning of each month (III) 7.5 months
(D) At the end of each quarter (IV) 3 months
Choose the correct answer from the options given below :
(1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(2) (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
(3) (A) - (IV), (B) - (II), (C) - (I), (D) - (III)
(4) (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
15. Kavita and Lalita are partners, sharing profits in the ratio of 2 : 1. They decide to admit Mohan for
1/4th share in future profits with a guaranteed amount of ₹ 25,000. Both Kavita and Lalita undertake to
meet the liability arising due to the guaranteed amount to Mohan in their respective profit sharing ratio. The
firm earned profits of ₹ 76,000 for the year 2022–23. The deficiency borne by Kavita is :
(1) ₹ 4,000 (2) ₹ 2,000 (3) ₹ 6,000 (4) ₹ 4,500
16. Anshu and Nitu are partners, sharing profits in the ratio of 3 : 2. They admitted Jyoti as a new partner for
3/10 share which she acquired 2/10 from Anshu and 1/10 from Nitu. Calculate the new profit sharing ratio
of Anshu, Nitu and Jyoti.
(1) 4 : 3 : 3 (2) 3 : 4 : 3 (3) 3 : 3 : 4 (4) 3 : 2 : 1
17. The journal entry for treatment of goodwill, when a new partner brings his share of goodwill in cash and
one of the old partners gains, involves the following :
(A) Gaining Partner’s Capital Account is debited
(B) Premium for Goodwill Account is debited
(C) Sacrificing Partner’s Capital Account is credited
(D) Gaining Partner’s Capital Account is credited
Choose the correct answer from the options given below :
(1) (A), (B) and (D) only (2) (A), (B) and (C) only
(3) (A), (B), (C) and (D) (4) (B), (C) and (D) only
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301 E/A (6)

18. While preparing Cash Flow Statement, purchase of goodwill is treated as :

(1) Operating activity (2) Financing activity
(3) Investing activity (4) Exraordinary item

19. The components of Computerised Accounting System are :

(1) Data, Report, Ledger, Hardware, Software
(2) Data, People, Procedure, Hardware, Software
(3) People, Procedure, Ledger, Data, Chart of Accounts
(4) Data, Coding, Procedure, Rules, Output

20. The Sales and Accounts Receivable Subsystem deals with :

(1) the recording of Sales, maintaining of Sales Ledger and Receivables
(2) the preparation of Budget for the coming financial year
(3) the preparation of Profit and Loss Account, Balance Sheet and Cash Flow Statement
(4) the purchase and payment to creditors

21. The common fields used in a relationship between tables are called :
(1) Joint fields (2) Main fields
(3) Table fields (4) Key fields

22. On dissolution of a firm, bank overdraft is transferred to :

(1) Bank Account (2) Realisation Account
(3) Partners’ Capital Account (4) Partners’ Loan Account

23. Arrange the following steps in the correct sequence of the life of a company :
(A) Commencement of Business
(B) Incorporation
(C) Promotion
(D) Floatation
Choose the correct answer from the options given below :
(1) (A), (B), (C), (D) (2) (A), (C), (B), (D)
(3) (B), (A), (D), (C) (4) (C), (B), (D), (A)
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301 E/A (7)

24. Arrange the following in the correct order :

(A) Subscribed Capital
(B) Issued Capital
(C) Authorised Capital
(D) Paid-up Capital
(E) Called-up Capital
Choose the correct answer from the options given below :
(1) (C), (B), (A), (D), (E) (2) (B), (C), (A), (D), (E)
(3) (C), (B), (A), (E), (D) (4) (B), (C), (A), (E), (D)
25. The Deceased Partner's Capital Account includes the following amount/balances :
(A) Opening balance of his capital
(B) His share of profit/loss till the date of death
(C) His share of General Reserve
(D) His drawings till the date of death
(E) Amount paid to his executors
Choose the correct answer from the options given below :
(1) (A), (B), (D) and (E) only
(2) (A), (B), (C) and (D) only
(3) (A), (B) and (C) only
(4) (A), (B), (C) and (E) only
26. Identify the correct sequence of the following steps involved in calculating cash flows from operating
activities of a company :
(A) Operating profit before working capital changes
(B) Cash generated from operations
(C) Income tax paid
(D) Net cash flow from operating activities
(E) Goodwill amortised
Choose the correct answer from the options given below :
(1) (E), (C), (D), (A), (B) (2) (E), (A), (D), (B), (C)
(3) (E), (A), (B), (C), (D) (4) (A), (B), (C), (D), (E)
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301 E/A (8)
Read the following information carefully and answer the next five questions :
Particulars ₹
Revenue from Operations 8,75,000
Creditors 90,000
Bills Receivable 48,000
Bills Payable 52,000
Purchases 4,20,000
Trade Debtors 59,000

27. Calculate Trade Receivables Turnover Ratio.

(1) 8.18 times (2) 8.23 : 1
(3) 8.18% (4) 8.81 : 1

28. Calculate Average Collection Period.

(1) 30 days (2) 60 days
(3) 45 days (4) 15 days

29. Calculate Trade Payables Turnover Ratio.

(1) 29.6 times (2) 2.96 times
(3) 29.6% (4) 2.69 : 1

30. Calculate Average Payment Period.

(1) 123 days (2) 121 days
(3) 132 days (4) 133 days

31. Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio are categorised as :
(1) Liquidity Ratio (2) Solvency Ratio
(3) Activity Ratio (4) Profitability Ratio
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301 E/A (9)
Read the following carefully and answer the next five questions :
G, K and B were partners running a partnership for last 10 years, sharing profit and loss in the ratio of 5 : 3 : 2.
Post Covid, their firm was affected badly and started incurring losses. On 31st March, 2023 they all decided to
dissolve the firm due to continuous losses. Their capital balances were ₹ 4,00,000, ₹ 3,00,000 and ₹ 2,00,000
respectively. Firm had liabilities ₹ 80,000, Cash balance ₹ 40,000, other Sundry Assets ₹ 8,50,000 and P&L
A/c constituted the rest. Assets realised at 80% and liabilities were paid in full. There was unrecorded liability
of ₹ 50,000 which was settled at ₹ 40,000. Realisation expenses amounted to ₹ 30,000, being paid by G on behalf
of the firm.
32. What is the mode of dissolution of the firm followed by G, K and B ?
(1) Dissolution by Agreement
(2) On the happening of certain contingencies
(3) Dissolution by Notice
(4) Compulsory Dissolution
33. Determine the amount of Profit and Loss Account.
(1) (Cr.) ₹ 90,000 (2) (Dr.) ₹ 90,000
(3) (Cr.) ₹ 1,30,000 (4) (Dr.) ₹ 1,30,000
34. Determine Gain/Loss on Realisation.
(1) Loss ₹ 2,40,000 (2) Gain ₹ 24,000
(3) Loss ₹ 1,70,000 (4) Loss ₹ 2,10,000
35. The entry for realisation expenses in above case study will be :
(1) Realisation A/c Dr.
To Cash A/c
(2) Realisation A/c Dr.
To G’s Capital A/c
(3) G’s Capital A/c Dr.
To Realisation A/c
(4) Cash A/c Dr.
To Realisation A/c
36. Existing Profit and Loss Account in the books of the firm will be shared/borne by partners in the ratio :
(1) 5 : 3 : 2 (2) Equal Ratio
(3) 4 : 3 : 2 (4) Ratio of closing capital claims
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301 E/A ( 10 )
37. Libraries run by charitable trusts are an example of :
(1) Partnership (2) Not for profit organisation
(3) Companies (4) Cooperatives
38. The main source of revenue for 'not for profit' organisation is :
(1) Sale of goods (2) Sale of periodicals
(3) Subscription from members (4) Sale of assets
39. Match List-I with List-II.
List-I List-II
(A) Share capital (I) Will be called at the time of winding up
(B) Reserves and surplus (II) Calls in advance
(C) Reserve capital (III) Subscribed but not fully paid
(D) Current liabilities (IV) Sinking fund
Choose the correct answer from the options given below :
(1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(2) (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
(3) (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
40. Which of the following would affect the Revaluation Account at the time of reconstitution of a partnership
firm ?
(1) Increase in assets (2) Drawings against capital
(3) Interest on capital (4) Parntner's salary
41. Identify the correct sequence to be followed while preparing of final account of a partnership firm :
(A) Profit and Loss Appropriation Account
(B) Profit and Loss Account
(C) Trading Account
(D) Balance Sheet
Choose the correct answer from the options given below :
(1) (C), (B), (A), (D) (2) (A), (C), (B), (D)
(3) (B), (A), (D), (C) (4) (C), (B), (D), (A)
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301 E/A ( 11 )
42. Window dressing is a practice
(1) to manipulate the accounts to show a better picture of the financial position than the actual one.
(2) to show excesive depreciaton.
(3) to avoid tax.
(4) to reduce tax.

43. Match List-I with List-II.

List-I List-II
(A) Salary to partner (I) Credit side of Partner's Capital Account
(B) Interest on partner's loan (II) Debit side of Partner's Current Accont
(C) Interest on partner's drawings (III) Debit side of Profit and Loss Account
(D) Additional capital introduced (IV) Credit side of Partner's Current Account

Choose the correct answer from the options given below :

(1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(2) (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
(3) (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

44. Which of the following would affect the Revaluation Account at the time of admission of a partner ?
(A) Increase in assets
(B) Drawings against capital
(C) Recording of unrecorded assets
(D) Decrease in liabilities
Choose the correct answer from the options given below :
(1) (A), (B) and (C) only
(2) (A), (B) and (D) only
(3) (A), (C) and (D) only
(4) (B), (C) and (D) only

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301 E/A ( 12 )
45. Match List-I with List-II.
List-I List-II
(Items of cash flow) (Type of activity)
(A) Purchase of tangible assets (I) Operating activity
(B) Issue of shares (II) Cash and cash equivalents
(C) Increase in current assets (III) Investing activity
(D) Marketable securities (IV) Financing activity
Choose the correct answer from the options given below :
(1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
(2) (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
(3) (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
46. Which one of the following are correct in connection with the Common Size Statement ?
(A) Expressed as a percentage on revenue from operation
(B) Horizontal analysis
(C) Vertical analysis
(D) Expressed as a percentage on total assets
Choose the correct answer from the options given below :
(1) (A), (B) and (D) only
(2) (A), (B) and (C) only
(3) (A), (C) and (D) only
(4) (B), (C) and (D) only
47. Calculate the resulting cash flow and state the nature of cash flow from the following information :
Acquired machinery for ₹ 3,50,000 by issuing cheque.
(1) Investing activity and outflow ₹ 3,50,000
(2) Investing activity and inflow ₹ 3,50,000
(3) Investing activity and no flow
(4) Operating activity and outflow ₹ 3,50,000
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301 E/A ( 13 )

48. Arrange the following in proper sequence while preparing Cash Flow Statement :
(A) Net cash flow from operating activities
(B) Cash flow from financing activities
(C) Cash flow from investing activities
(D) Calculate net profit before tax and extraordinary items in working note
Choose the correct answer from the options given below :
(1) (A), (B), (C), (D)
(2) (D), (A), (C), (B)
(3) (B), (A), (D), (C)
(4) (C), (B), (D), (A)
49. The adjustment required for overvaluation of closing stock, while calculating adjusted profit for calculating
goodwill is
(A) reduction from concerned year's profit.
(B) reduction from next year's profit.
(C) addition to next year's profit.
(D) addition to previous year's profit.
Choose the correct answer from the options given below :
(1) (A), (B) and (D) only
(2) (A) and (C) only
(3) (A) and (D) only
(4) (B), (C) and (D) only
50. Oversubscription is a situation where the
(1) number of shares applied for is equal to the number of shares issued.
(2) number of shares applied for is more than the number of shares issued.
(3) number of shares applied for is less than the number of shares issued.
(4) face value of the share is less than the issue price of the share.

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301 E/A ( 14 )

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301 E/A ( 15 )

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301 E/A ( 16 )

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