SECTION-A ( ACCOUNTANCY )

1. Under fluctuation method of capital, what is the treatment of ‘Interest on capital”?

A) Credited to capital account B) Debited to capital account
C) No treatment or adjustment needed D) Credited to current account

2. A, B, and C are partner’s sharing profits in the ratio of 5:3:2 .According to the partnership agreement C
is to get a minimum amount of Rs. 10,000 as his share of profits every year. The net profit for the year
ended on 31st March, 2019 amounted to Rs. 40,000. How much amount contributed by A?
A) Rs. 1,350 B) Rs. 1,250 C) Rs. 750 D) Rs. 1,225

3. A and B share profits and losses in the ratio of 3: 2. Their respective capitals are Rs. 1,20,000 and
Rs. 54,000. C is admitted for 1/3rd share in profits who brings Rs. 75,000 as his share of capital.
Capitals of A and B to be adjusted according to C’s share. A will withdraw from capital
A) Rs. 30,000 B) Rs. 32,000 C) Rs. 15,000 D) Rs. 28,000

4. A, B, C are partners sharing profit and losses in the ratio of 4:3:1. B retires and gives his share of profit
to A Rs. 3,600 and C Rs. 4,500. What is the Gaining sharing ratio of A and C?
A) 4:5 B) 2:1 C) 68:48 D) 4: 1

5. On dissolution advertisement suspense appearing in balance sheet is shown in :-

A) Realisation Account B) Partner’s Capital Account
C) Bank Account D) Revaluation Account

6. Subscription received in cash during the year is Rs 40,000 ; subscription outstanding at the end of
previous year was Rs 1,500 and outstanding at the end of current year was Rs 2,000 . Subscription
received in advance for the next year was Rs 800. The amount credited to income & expenditure
account will be :
A) Rs 38,700 B) Rs 39,700 C) Rs 40,300 D) Rs 41,300

7. If the purchase consideration is more than net worth ,then which account will be debited for the
difference amount
A)Capital Reserve A/c B)Asset A/c C) Goodwill A/c D)Vendor A/c

8. A Company allotted 20,000 shares to applicants of 50,000 shares after rejecting 10,000 applications.
The ratio in which company allotted the share will be
A)5:2 B)5:3 C)2:1 D)3:1
9. At the time of issue of debentures , debentures account is :
A) Credited by the amount Received B) Credited by the issue price of the debentures
C) Credited by nominal value of the debenture D) none of the above
10. X Ltd has purchased the building and debentures are issued at discount .Which account will be debited
for discount :
A) Discount on issue of Debentures B) Loss on issue of debenture
C) A& B any one can be D) None of the above

IFCoO / CLASS12 Page 1

 11. When 100 debenture issued at 5 % discount @ 100 each but redeemable at premium of 8% . How
much amount will be credited as premium on redemption of debentures account :
A) 5000 B) 4000 C) 8000 D) 6000

12. Call in advance appears in a Company’s Balance sheet under:

A) Current liabilities B) Share Capital
C) Long term Borrowings D) Reserves and Surplus

13. Under which tool of Financial Statement Analysis,100% is taken as a base and all other related items
are expressed as a percentage of base?
A) Comparative Statement B) Common Size Statement
C) Ratio analysis D) Cash Flow Statement

14. Calculate proprietary ratio if share capital Rs. 5,00,000 ,reserve & surplus Rs. 2,00,000 and general
reserve Rs. 1,00,000 and total assets Rs 21,00,000.
A) 0.33:1 B) 0.38:1 C) 0.48:1 D) 0.50:1

15. If the liquid ratio of a company is 1.5:1,then if the company purchased goods of Rs. 50,000 , results in:
A) Decrease in liquid ratio B) Increase in liquid assets
C) Decrease in current liability D) Increase in liquid ratio

16. Marketable Securities costing Rs. 10,000 sold for Rs. 12,000, Profit on sale of Marketable Securities
was credited to Statement of Profit and Loss. Which of the following statement is correct?
A) Rs. 2,000 will be deducted from Net Profit under Operating Activity and shown as inflow under
Investing Activities.
B) Rs. 2,000 will be deducted from Net Profit under Operating Activity and shown as Extra-ordinary
Item under Operating Activities.
C) Rs. 2,000 will be deducted from Net Profit under Operating Activity and shown as Extra-ordinary
Item under Investing Activities.
D) Rs. 2,000 will be deducted from Net Profit under Operating Activity and added to Cash and
Cash Equivalents.

17. Dividend paid by non financing company is shown under:

A) Operating activity B) Investing activity
C) Financing activity D) Cash and cash equivalents.

18. X Ltd. wants to redeem 5,000, 5% Debentures of Rs. 100 each at 5% premium. How much amount it
transfer to Debenture Redemption Reserve, if it has already a balance of Rs. 1,00,000 in Debenture
Redemption Reserve Account ?
(A) Rs. 4, 00,000 B) Rs. 25,000 C) Rs. 2, 00,000 D) Rs. 2, 50,000

19. A and B are partners sharing profit equally. A draw regularly Rs. 4,000 at the end of every month for 6
months. Year ended on 30thSeptember 2018, calculate interest on drawings @ 5% p.a.
A) Rs. 350 B). Rs. 450 C) Rs. 150 D) Rs. 250

IFCoO / CLASS12 Page 2

 20. In admission of a partner, which of the following items of the Balance Sheet is transferred to the credit
of Capital Accounts of old partners in the old Profit-sharing Ratio, if Capital Accounts are maintained
following Fluctuating Capital Accounts Method
A) Deferred Revenue Expenditure; B) Profit and Loss Account (Debit Balance);
C) Profit and Loss Account (Credit Balance) D) Balance in Drawings Account of partners.

SECTION-B ( BUSINESS STUDIES )

21. Sarang Gupta is the MD of Dunlop Ltd .The Company had established a good name for it and had been
doing well. It was known for timely completion of orders. The production manager, Ms Kiran was
efficiently handling the processing of order and had a team of fourteen motivated employees working
under her. Unfortunately Ms Kiran met with an accident. Sarang Gupta knew that in the absence of Ms
Kiran, the company may not be able to meet the deadlines and it will lead to customer dissatisfaction,
business loss and goodwill. So he had meeting with the employees in which accurate and speedy
processing or orders was planned. Everybody agreed to work as team because the behavior of Sarang
Gupta was positive towards the employees of the organisation. Hence everyone put extra effort and the
targets were met on time. Not only this, Sarang visited Ms.Kiran and advised her to take sufficient
rest. The leadership style of Sarang Gupta is :
A) Autocratic B) Democratic C) Lassie fare D) None of the above

22. In a particular company, no importance had been attached to the suggestions given by the subordinates.
In 2014, the company appointed Mr. Lotus as its Chief Executive Officer.He was an M.B.A. degree-
holder from I.I.M. Ahemdabad with an experience of a decade. On assuming the charge of his office,
he started a sort of campaign asking for suggestions from every big or small employee of the company.
In a very short time, there were about 10,000 suggestions. After studying them intensively, about 1500
suggestions were implemented in different fields. This campaign fetched the company an additional
profit of Rs. 50 crore. What principle of management will have been working behind Mr. Lotus’
thinking?
A) Espirit De Corps B) Initiative C) Division of work D)Remuneration

23. Which of the following does not explain the impact of Government policy changes on business and
industry?
A) More demanding customers B) Increasing competition
C) Change in agricultural prices D) Market orientation

24. Mr. Keshav, a manager in UNO Ltd. can effectively manage ten to twelve subordinates under him.
This affect organisational structure of UNO Ltd. Identify the concept referred to here.
A) organization structure B) Span of management
C) functional structure D) divisional structure

25. Pan Parag and sons is a manufacturer of tobacco products. It decided to increase profits by at least
25% in the next quarter. It has many options: (i) To increase the working hours of laboures without
additional payment. (ii) To employ children from the local community. (iii) To sell its product outside

IFCoO / CLASS12 Page 3

 the school and colleges. (i) It opted the (ii) and (iii) options to achieve the target. The function of
management described in the above para is
A) Organizing B) Planning C) Coordination D) Directing

26. A test to measure the level of existing knowledge and skills in a potential employee

A) intelligence test B) trade test C) personality test D) aptitude test

27. The training technique which duplicates the actual work environment
A) computer modeling B) programmed instruction
C) vestibule training D)internship

28. Neeraj, a sales representative of ‘Omida Ltd.’ has changed seven jobs in the last one year. He is a hard
working person but is not able to finalise deals with the customers due to his inadequate vocabulary
and omission of needed words. Sometimes he uses wrong words because of which intended meaning is
not conveyed. All this created a mis-understanding between him and his clients.The communication
barrier discussed above is

A) Badly expressed message B) Lack of attention

C) Distrust D) Faulty Transaction

29. Ultra paint co. which is manufacturing paints had been enjoying a prominent market position as it is
manufacturing best quality paints made timely payment of taxes to government. It assembled various
inputs like finance, machines, raw materials, etc. from its environment but since last year it has been
dumping its untreated poisonous waste on the river bank which has created many health problems for
the people. As a result, the court passed an order to seal the manufacturing unit of the company. The
importance of business environment highlighted above is :-

A) It enables the firm to identify opportunities and getting the first mover advantage
B) It helps the firms to identify threats and early warning signals
C) It helps in improving performance
D) Tapping useful resources.

30. An efficient control system helps to:

A) Accomplish organizational objectives B) Boost employee morale
C) Judge accuracy of standards D) All of the above

31. Financial Leverage is called favourable if

A) Return on Investment is lower than cost of Debt.
B) Return on Investment is higher than cost of Debt.
C) Debt is nearly available
D) If the degree of existing financial leverage is low

IFCoO / CLASS12 Page 4

 32. Customer’s satisfaction alone can ensure success. Which marketing concept holds this view?
A) Production concept B) Product concept
C) Marketing concept D) Selling concept

33. These days ,the development of a country is also judged by its system of transferring finance from the
sector where it is in surplus to the sector where it is needed most. To give strength to the economy,
SEBI is undertaking measures to develop the capital market in which unsecured and short-term debt
instruments are actively traded every day . These markets together help the savers and investors in
directing the available funds into their most productive investment opportunity. The function being
performed by the market in the above case is
A) mobilization of funds B) Price determination.
C) Liquidity to financial instruments D) Reduces cost of transaction

34. Name the method of recruitment which is followed for casual vacancies of semi-skilled jobs
when there is a rush of order or when some permanent workers are absent:
A) Casual Callers B) Advertisement
C) Direct Recruitment D) Campus Recruitment

35. X)............is a statement of expected results expressed in numerical terms and Y)..........are the
ends that the management seeks to achieve by its operations. Fill in the blanks
A) X) Budget and Y) Programmes B) X)Policy and Y) Objectives
C) X) Objective and Y) Policy D) X) Budget and Y) Objectives

36. Mr. Ram, the operational manager of Reliance Ltd. conducted work study to fix standard time
to be taken by a worker to produce one unit. Identify the step of the controlling process
mentioned here:
A) Measurement of actual performance B) Analysing deviations
C) Setting performance standards D) Comparison of actual performance with standards

37. Tanya purchased some household goods from a “General Store’.On reaching home, she found that one
face cream, (Rs. 250) had not been billed. She became happy that, she got it without paying for. After
checking the expiry date and other details, she started using it. Her face burnt due to the use of cream.
Where should Tanya file the complaint for the cream?
A) District Forum B) State Commission
C) National Commission D) She cannot file complaint in Consumer Court

38. The main objective of functional foremanship is___

A) Not to provide free time to workers
B) Separate planning functions from executive functions
C) To separate top level management from CEO
D) Not to divide the work.

39. Return on investment is computed as

A) Total investment × EBIT B) EBIT × EBT
C) EBT÷Total investment D) EBIT÷Total Investment

IFCoO / CLASS12 Page 5

 40. Self Actualisation Needs are concerned with _____________
A . Autonomy status B. Recognition
C. Growth and Self-fulfillment D. None of these

SECTION-C ( BUSINESS AWARENESS )

41. Which Indian Enterprise used the slogan - Improving the quality of Life.
A) Reliance B) TATA C) Birla D) ITC

42. Which newspaper says You needn't read us to understand us?

A) Times of India B) The Hindu C) Indian Express D) Malyalam Manorama

43. Which Company has launched 'Citizen First' advertisement campaign?

A) Infosys B) NGC C) ITC D) RELIANCE

44. Rockr, a cell phone that uses Apple's iTunes software and stores up to 100 songs in its Flash memory,
has been launched by
A) Motorola B)Bird C)Samsung D)Nokia

45. India's Largest tractor manufacturer Mahindra & Mahindra had recently made a take over bid on
a European company, Universal Tractors. The Company is based in
A) Norway B)Romania C)England D)Finland

46. Khazanah' is the state-owned investment holding arm of which country?

A) Malaysia B)Singapore C)Japan D)Mauritius

47. Sun life of Canada is operating in India in alliance with

A)Bermans B)Sahara group C)Thapars D)AB Birla group

48 . Which of the following has become the first telecom company to achieve the 15-million mark in
subscriber base?
A) Reliance B)Airtel C)Hutch D)BSNL

49. Which of the following Stock exchanges is called "Big Board"?

A) Nasdaq B)New York stock exchange
C) Mumbai stock exchange D)London stock exchange

50. Which of the following allowed the investors to by mutual fund through digital wallets?

A) Stock Exchange board of India (SEBI) B)Financial analysis department

C) Monitoring Mutual Fund Investments D)Credit Rate List department

-------------------------------------------------XX--------------------------------------------------

IFCoO / CLASS12 Page 6

 Answers
CLASS 12
Ques. No.
1 C 26 B
2 B 27 C
3 A 28 A
4 A 29 D
5 B 30 D
6 B 31 B
7 C 32 C
8 C 33 A
9 C 34 C
10 A 35 D
11 C 36 C
12 A 37 D
13 B 38 B
14 A 39 D
15 A 40 C
16 B 41 B
17 C 42 D
18 B 43 C
19 D 44 A
20 C 45 B
21 B 46 A
22 B 47 D
23 C 48 A
24 B 49 B
25 B 50 A