Page 1 : II PUC ACCOUNTANCY OLD QUESTION PAPER, , ONE MARK QUESTIONS (MARCH 2020), 1. Donations for specific purposes are always capitalized. State True/False, 2. The liability of a partner for acts of the firm is Unlimited, 3. A, B & C are partners in a firm. If ‘D’ is admitted as a new partner, a) Old firm is dissolved, b) Old firm and old partnership is dissolved, c) Old partnership is re-constituted., d) None of the above., 4. X,Y & Z are partners sharing profits in the ratio of 5:3:2. If ‘Z’ retires, the, new profit sharing ratio between X & Y will be 5:3, 5. When can shares be forfeited?, Ans: For non-payment of allotment, call money or both., 6. Can the company purchase its own debentures in open market?, Ans: Yes., 7. Give an example for current asset.- Debtors, cash , Bills receivable, 8. The most commonly used tools for financial analysis are:, a) Horizontal analysis b) Vertical analysis c) Ratio analysis d) All the above, 9. Expand EPS- Earning per share., 10.What is cash flow statement?, Ans: Cash flow statement is the statement which shows inflow and outflow of, cash and cash equivalents from various activities of a company during specific, period., ONE MARK QUESTIONS (Supplementary 2019), 1. Give an example for specific donation- Building Donation, 2. In order to form a partnership there should be at least, a) One person b) Two persons c) Seven persons d) None of the above., 3. State any one method of valuation of goodwill. - Average profits method., 4. General Reserve is transferred to continuing Partners capital account. State, True/False., 5. Equity shareholders are, a) Creditors b) Owners c) Customers of the Company d) None of the above., 6. Expand D.R.R. – Debenture Redemption Reserve., 7. Capital Reserve is shown under Equity/ shareholders’ funds head in the, Balance sheet of a company., 8. Give any one objective of Financial Statement Analysis., Ans: – To assess current profitability and operational efficiency of firm or any, other one., 9. Quick ratio is also known as Liquid/ Acid Test Ratio., 10. What do you mean by cash flows?, Ans: Cash flows implies the movement of cash in cash out due to some noncash items., , 1

Page 2 : II PUC ACCOUNTANCY OLD QUESTION PAPER, , ONE MARK QUESTIONS (MARCH 2019), 1. Government grants is treated as Revenue receipt., 2. When the partner’s current accounts are prepared in partnership firm?, Ans: Partners current account is prepared in partnership firms when partner’s, capital accounts are maintained under fixed capital method., 3. If the amount brought by a new partners is more than his share in capital the, excess is known as Hidden Goodwill., 4. Give the formula for calculation of new profit sharing ratio on retirement, of a partner., Ans: New Ratio = Old Ratio + Share Gained., 5. What is buy-back of shares?, Ans: Buy back of shares means Purchase of its own shares by a Company., 6. Debentures cannot be redeemed of., a) Profits b) provisions c) Capital d) All the above., 7. Financial statements generally include., a) Comparative statements b) Fund flow statements c) Income Statement, and Balance sheet d) None of the above., 8. Financial analysis is used only by the creditors. State True/False., 9. Give one example for current liability: Trade payables, short term borrowings,, outstanding expenses etc., 10.Expand ICAI: Institute of chartered Accountants of India., , ONE MARK QUESTIONS (MARCH 2019/II QP), 1. Surplus of Income and Expenditure account is added to Capital fund –, True/False, 2. Who is a Partner?, Ans: The person who contribute capital into the partnership firm and who share, profit or loss, to became a partner., 3. At the time of admission of a new partner, general reserve appearing in, the old balance sheet is transferred to, a) All Partners Capital A/c b) New Partner’s Capital A/c c) Old Parnter’s, Capital A/c d) None of the above., 4. Profit or loss on revaluation is shared among the partners in Old ratio on, retirement of a partner., 5. The minimum number of members in a public company is, a) 20 b) 50 c) No Limit d) 7, 6. Expand ‘DRFI’- Debenture redemption fund investment A/c, 7. Write any one objective of financial statements., Ans: To Assist the users in their decision making, 8. What do you mean by Financial Statement Analysis?, Ans: Financial Statement Analysis means simplification of financial data by, methodical classification given in financial statements., 9. Give the meaning of Ratio Analysis., Ans: Ratio Analysis is the indispensable part of interpretation of results revealed, by the financial statements., 2

Page 3 : II PUC ACCOUNTANCY OLD QUESTION PAPER, , 10.Give an example for investing activities., Ans: Purchase of Machinery/Assets., TWO MARKS QUESTIONS (MARCH 2020), 1. Write any two features of receipts and payment account., Ans: a) Summary of cash book b) include both capital and revenue items., 2. State the two methods by which the capital accounts of partners are, maintained., Ans: a) Fixed capital method b) Fluctuating Capital method., 3. What are the two main rights acquired by a newly admitted partner in, the partnership firm?, Ans: a) Right to share the assets of the firm b) Right to share profits of the, firm., 4. Write the journal entry for the payment of unrecorded liabilities on the, dissolution of a firm., Ans: Realization A/c Dr, To Cash/Bank A/c, (Being payment of unrecorded liability), 5. Name any two categories of share capital., Ans: a) Authorized share capital b) Issued share capital., 6. Mention two types of financial statements., Ans: a) Profit and loss Account b) Balance sheet c) Cash flow statement., 7. Name any two users of financial statements analysis., Ans: a) Investors b) Top management., 8. Mention any two cash flow activities classified as per AS-3., Ans: a) Operating activities b) Investing activities., TWO MARKS QUESTIONS (Supplementary 2019), 1. What is not for profit organisation?, Ans: Organisation which is established not for earning profit, but to provide, services to the public is known as not for profit organisation., 2. State any two features of Partnership., Ans: a) Agreement: It is an agreement to share profit or loss of the business., b) Liability: The liability of partners in partnership is unlimited., 3. Goodwill of the firm is valued at two years purchase of average profits of the, last 4 years. The total profits of the last 4 years are `80,000. Calculate the, Goodwill of the firm., Ans: Goodwill = Average profit X Number of years of purchase, Average Profit = Total profits___, Number of years, , 80,000 = `20,000, 4, , Therefore Goodwill = 20,000X2 years of purchase = `40,000, , 3

Page 4 : II PUC ACCOUNTANCY OLD QUESTION PAPER, , 4. Give the journal entry for assets taken over by a partner on dissolution, of firm., Ans: Partners Capital A/c Dr, To Realisation A/c, (Being Assets taken over), 5. Mention any two features of Company., Ans: a) It is an artificial legal person b) The liability of member is limited., 6. Write any two limitations of Financial Statements., Ans: a) Do not reflect current situation., b) No Qualitative information., 7. List any two tools of Financial Statement Analysis., Ans: a) Ratio Analysis. B) Comparative Statements., 8. What do you mean by investing activities?, Ans: Activities relating to purchase and sale of long term or fixed assets and, transactions relating to long term investments are known as investing, activities., TWO MARKS QUESTIONS (MARCH 2019), 1. State any two features of Receipts and Payments account., Ans: a) Summary of cash book b) Includes Capital and Revenue items., 2. Name any two contents of partnership deed., Ans: a) Profit and loss sharing ratio b) Capital contribution by partners., 3. Goodwill of the firm is value at two years purchase of the average profit of, last four years. The total profits for last four years is `40,000., Calculate the goodwill of the firm., Ans: Goodwill = Average profit X Number of years of purchase, , Average Profit = Total profits___, Number of years, , 4., , 5., , 6., , 7., , 40,000 = `10,000, 4, , Therefore Goodwill = 10,000X2 years of purchase = `20,000, Give the Journal entry for the asset taken over by a partner in case of, dissolution of partnership firm., Ans: Partners Capital A/c Dr, To Realisation A/c, (Being Assets taken over), What is forfeiture of shares?, Ans: Forfeiture of shares means cancellation of membership of a shareholder, who fails to make payment due on his shares., Give the meaning of financial statements., Ans: Financial statements are the basic and formal annual reports through, which the corporate management communicates financial information to its, owners and various other external parties., List out any two techniques of financial statement analysis., Ans: a) Ratio Analysis. B) Comparative Statements., 4

Page 5 : II PUC ACCOUNTANCY OLD QUESTION PAPER, , 8. Mention any two activities which are classified as per AS-3, Ans: a) Operating activities b) Investing activities., TWO MARKS QUESTIONS (MARCH 2019/II QP), 1. Mention any two differences between Receipts and Payments Account, and Income and Expenditure A/c., Ans:, Receipts and Payments accounts, Income and Expenditure account, 1) It is a real account, 1) It is a nominal account, 2) It is the summary of cash 2) It is the summary of incomes and, transactions relating to a particular expenses relating to a particular, period., period., 3) Receipts of cash are shown on the 3) Expenses are shown on the debit, debit side and payments of cash are side and incomes are shown on the, shown on the credit side, credit side., 4) It starts with opening balance of 4) It does not start with any opening, cash or bank or both, balance, 2. Name any tow contents of partnership deed., Ans: 1) Name of the partnership firm, 2) Name, address, qualification of partners, 3) Profit sharing ratio., 3. State any two methods of valuation of goodwill., Ans: 1) Average profit method 2) Super Profit method., 4. Give the Journal entry for the asset taken over by a partner in case of, dissolution of partnership firm., Ans: Partners capital A/c, Dr, To Realisation A/c, (Being Assets taken over by partner), 5. State any two types of shares., Ans: a) Equity shares b) Preference shares., 6. What is financial statements?, Ans: Financial Statements are the basic and formal annual reports through which, corporate management communicates financial information to its owners and, various other external parties., 7. Write any two objectives of analysis of financial statements., Ans: a- To ascertain the relative importance of different components, b- To identify the reasons for change in profitability/financial position., 8. What is cash flow statement?, Ans: Cash Flow statement is the statement which shows inflow and outflow of, cash and cash equivalents from various activities of a company during specific, period., , *****, Dated: 14/11/2021, 5