Check how ready you are with our Class 12 Accountancy online mock tests, made for the CBSE 2026-27 session. These free tests give you your score right after you submit, so you know exactly where you stand in Accountancy.
Class 12 Accountancy Tests, Chapter by Chapter
These tests cover Accountancy chapter by chapter for Class 12, written by teachers to match the CBSE 2026-27 marking pattern. Start any chapter with one click - no login, and take it as many times as you like.
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Class 12 Accountancy: Concept Navigators & Chapter Diagnostic Tests Select any chapter below to use real-time numerical solvers and solve high-yield board diagnostic questions with verified explanations. Interactive Concept Tool: Interest on Partner's Drawings Calculator Q1.In the absence of a Partnership Deed, what is the statutory rate of interest allowed on a partner's loan to the firm? Answer: (b) 6% p.a. (simple interest). Section 13(d) of the Indian Partnership Act, 1932 provides that partners are entitled to 6% p.a. interest on advances/loans, which is treated as a charge against profit.
Q2.A and B are partners sharing profits equally. A withdrew ₹2,000 at the beginning of each month. Interest on drawings @ 6% p.a. will be: Answer: (c) ₹780. Total Drawings = 12 × 2,000 = ₹24,000. For beginning of every month, average period = 6.5 months. Interest = 24,000 × (6/100) × (6.5/12) = ₹780.
Q3.Which of the following items is treated as a 'Charge against Profit' rather than an 'Appropriation of Profit'? Answer: (d) Rent paid to a Partner for business use of their personal property. Rent paid to a partner and interest on partner's loan are business expenses (charges against profit) debited directly to the Profit and Loss A/c, not to P&L Appropriation A/c.
Interactive Concept Tool: Hidden Goodwill Finder on Admission Q1.When a new partner brings their share of goodwill in cash, it is distributed among sacrificing partners in: Answer: (c) Sacrificing Ratio. Goodwill brought in by the incoming partner is compensation for the sacrifice made by existing partners who surrendered a portion of their profit share.
Q2.A and B share profits in the ratio 3:2. C is admitted for 1/5th share. What is the new profit sharing ratio if C acquires his share equally from A and B? Answer: (b) 5 : 3 : 2. C gets 1/10 from A and 1/10 from B. A's new share = 3/5 - 1/10 = 5/10. B's new share = 2/5 - 1/10 = 3/10. C's share = 2/10. Ratio = 5 : 3 : 2.
Q3.At the time of admission, the balance of Workmen Compensation Reserve over and above the actual claim liability is credited to: Answer: (a) Old Partners' Capital Accounts in Old Ratio. Excess reserves accumulated out of past profits belong solely to the old partners and are distributed in their old profit sharing ratio.
Interactive Concept Tool: Deceased Partner's Interim Profit Calculator Q1.On the retirement of a partner, how is existing Goodwill already appearing in the Balance Sheet treated? Answer: (b) Written off among all old partners in their Old Profit Sharing Ratio. Existing goodwill in the Balance Sheet must be written off completely by debiting all partners' capital accounts in their old ratio.
Q2.If a deceased partner's dues are not immediately settled in cash, the unpaid balance is transferred to their: Answer: (c) Executor's Loan Account (carrying 6% p.a. interest or share of profit). Section 37 of the Partnership Act allows the executor 6% p.a. interest or a proportionate share of profit on the unpaid balance until final settlement.
Q3.A, B, and C share profits in 5:3:2. B retires and his share is taken over by A and C in 2:1. The gaining ratio is: Answer: (a) 2 : 1. The question directly states that B's share is taken over by A and C in the ratio 2:1, which is by definition their Gaining Ratio.
Interactive Concept Tool: Dissolution Realisation Treatment Sorter Q1.When a creditor accepts an asset in full settlement of their claim during dissolution, what entry is passed in the books? Answer: (d) No journal entry is passed. Both the third-party liability and the asset are already closed by transfer to Realisation Account, so settling one against the other needs no additional entry.
Q2.In what order are payments made out of firm assets on dissolution as per Section 48 of the Partnership Act? Answer: (a) Third-party debts → Partners' Loans → Partners' Capitals → Surplus distributed in PSR. Section 48 mandates paying outside liabilities first, then internal partner advances, before refunding capital balances.
Q3.An unrecorded liability of ₹5,000 paid at the time of dissolution is recorded as: Answer: (b) Realisation A/c Dr. to Bank A/c. Any realization or unrecorded claim payment is debited to the Realisation Account and credited to Bank Account.
Interactive Concept Tool: Forfeiture, Reissue & Capital Reserve Calculator Q1.What is the maximum permissible discount that can be allowed on reissue of forfeited shares? Answer: (b) The amount previously forfeited on those specific reissued shares. A company cannot suffer a net loss on reissued shares beyond the credit available in the Forfeited Shares Account for those shares.
Q2.Securities Premium Account CANNOT be utilized for which of the following purposes under Section 52(2) of the Companies Act? Answer: (d) Distribution of cash dividends to equity shareholders. Section 52(2) strictly restricts Securities Premium usage to 5 specific capital purposes; it cannot be distributed as operational dividends.
Q3.A company forfeited 100 shares of ₹10 each (₹8 called up) for non-payment of first call of ₹3 per share. Share Capital A/c will be debited with: Answer: (c) ₹800. On forfeiture, Share Capital Account is debited with the called-up amount (100 shares × ₹8 = ₹800), not the full face value.
Interactive Concept Tool: Debentures Issue vs. Redemption Journal Guide Q1.Premium on redemption of debentures is classified in the Balance Sheet under: Answer: (c) Other Long-term Liabilities. Premium on redemption is a long-term liability recognized at the time of debenture issue under the Prudence Principle.
Q2.When debentures are issued as collateral security for a bank loan, the accounting entry passed (if recorded) is: Answer: (a) Debenture Suspense A/c Dr. to % Debentures A/c. Debenture Suspense Account appears as a deduction from Debentures under Non-Current Liabilities on the Balance Sheet.
Q3.Discount or Loss on Issue of Debentures must be written off completely: Answer: (b) In the year debentures are issued, first from Securities Premium and then from Statement of P&L. As per revised ICAI guidelines, unamortized issue loss is written off in the year of allotment itself.
Interactive Concept Tool: Schedule III Major Head & Sub-Head Sorter Q1.Under Schedule III of the Companies Act, 2013, 'Loose Tools' and 'Stores & Spares' are presented under: Answer: (b) Current Assets → Inventories. Under Schedule III disclosure rules, loose tools and stores are sub-classified under Inventories (though excluded while calculating Quick Ratio).
Q2.Interest accrued but not due on debentures is shown under which sub-head in a Company's Balance Sheet? Answer: (a) Other Current Liabilities. Both interest accrued and due, and interest accrued but not due, are classified under Current Liabilities → Other Current Liabilities.
Q3.Where are 'Unclaimed Dividends' disclosed in a company's Balance Sheet? Answer: (d) Other Current Liabilities. Unclaimed dividend represents an obligation payable on demand, so it is placed under Other Current Liabilities.
Interactive Concept Tool: Comparative vs. Common-Size Base Finder Q1.In a Common-Size Statement of Profit and Loss, each revenue and expense line is expressed as a percentage of: Answer: (c) Revenue from Operations (Net Sales). Net Revenue from Operations is taken as the 100% baseline for common-size income statement comparisons.
Q2.Financial statement analysis that compares data of a company with competing firms in the same industry for the same year is called: Answer: (a) Cross-Sectional / Inter-Firm Analysis. Cross-sectional analysis compares two or more distinct business units at the same point in time.
Q3.Which of the following is a major limitation of financial statement analysis? Answer: (b) It ignores qualitative non-monetary aspects and is affected by window dressing. Financial ratios reflect only monetary figures and historical costs, overlooking employee quality and subjective accounting policies.
Interactive Concept Tool: Current Ratio Impact Analyzer (Initial CR = 2:1) Q1.If Revenue from Operations is ₹6,00,000 and Gross Profit is 20% on Cost, what is the Gross Profit in rupees? Answer: (c) ₹1,00,000. 20% (1/5) on Cost equals 1/6 on Sales. Gross Profit = 6,00,000 × (1/6) = ₹1,00,000 (Cost of Revenue = ₹5,00,000).
Q2.While calculating the Quick Ratio (Acid Test Ratio), which item is excluded from Current Assets? Answer: (d) Inventories and Prepaid Expenses. Quick Assets = Current Assets - (Inventories + Prepaid Expenses), as these cannot be converted into cash immediately.
Q3.What is the ideal benchmark standard for Debt-to-Equity Ratio and Current Ratio respectively? Answer: (a) 2 : 1 and 2 : 1. An industry standard of 2:1 is considered safe for long-term solvency (Debt-Equity) and short-term liquidity (Current Ratio).
Interactive Concept Tool: AS-3 Activity Sorter Q1.Which of the following is a non-cash expense added back in Cash from Operating Activities? Answer: (a) Depreciation. Depreciation does not involve an actual outflow of cash, so it is added back to Net Profit Before Tax to calculate operating cash flows.
Q2.As per AS-3 (Revised), where are Bank Overdraft and Cash Credit classified in the Cash Flow Statement? Answer: (b) Financing Activities (Short-term Borrowings). Under Revised AS-3, bank overdrafts and cash credits are considered short-term borrowings, not cash equivalents.
Q3.An increase in Current Assets (e.g., Debtors or Inventory) during the financial year is treated as: Answer: (c) Deduction under Operating Activities (Working Capital Adjustment). An increase in current assets indicates that cash was locked up in working capital, so it is subtracted from Operating Profit before tax.
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