CUET Accountancy

Cuet (Common University Entrance Test) For Undergraduate Courses Accountancy (Code: 301) A.S. Siddiqui CMA from the Institute of Cost Accountants of India, MBA from Indian Institute of Management, Bangalore, B.Com. (Hons.) from Delhi University New Delhi   LAXMI PUBLICATIONS (P) LTD (An ISO 9001:2015 Company) BEngalURU  • Chennai • Guwahati • Hyderabad • Jalandhar Kochi  • Kolkata • lucknow • mumbai • Ranchi New Delhi

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Introduction National Testing Agency has been entrusted with the responsibility of conducting the Undergraduate entrance tests for all the Central Universities (CUs) for the academic session 2022–2023. CUET will provide a single window opportunity to students to seek admission in any of the Central Universities (CUs) across the country. The CUET (UG)–2022 will be conducted in Computer Based Test (CBT) Mode. Examination Structure for CUET (UG)–2022: CUET (UG)–2022 will consist of the following four sections:  Section IA – 13 Languages  Section IB – 19 Languages  Section II – 27 Domain Specific Subjects  Section III – General Test Choosing options from each section is not mandatory. Choices should match the requirements of the desired University. Broad features of CUET (UG)–2022: Some features of CUET (UG)–2022 are as follows: Section Subjects/Tests Questions to Question Type Duration be Attempted Section IA– There are 13* different 40 questions to Language to be tested through 45 minutes Languages languages. Any of these be attempted for each languages may be chosen. out of 50 in each Reading Comprehension language language (based on different types of passages–Factual, Literary and Narrative, [Literary Aptitude and Vocabulary] Section IB– There are 19** languages. Languages Any other language apart from those offered in Section I A may be chosen. Section II– There are 27*** Domain 40 questions to • Input text can be used for 45 minutes Domain specific subjects being be attempted for each offered under this section. out of 50 MCQ Based Questions Domain Section III– A candidate may choose specific General a maximum of Six (06) 60 questions to • MCQs based on NCERT subjects Test Domains as desired by be attempted the applicable University/ out of 75 Class XII syllabus only 60 minutes Universities. For any such under- • Input text can be used for graduate programme/ programmes being offered MCQ Based Questions by Universities where a General Test is being used • General Knowledge, Current for admission. Affairs, General Mental Ability, Numerical Ability, Quantitative Reasoning (Simple application of basic mathematical concepts arithmetic/algebra geometry/ mensuration/stat taught till Grade 8), Logical and Analytical Reasoning

* Languages (13): Tamil, Telugu, Kannada, Malayalam, Marathi, Gujarati, Odia, Bengali, Assamese, Punjabi, English, Hindi and Urdu ** Languages (19): French, Spanish, German, Nepali, Persian, Italian, Arabic, Sindhi, Kashmiri, Konkani, Bodo, Dogri, Maithili, Manipuri, Santhali, Tibetan, Japanese, Russian and Chinese. *** DomainSpecificSubjects(27):1.Accountancy/BookKeeping;2.Biology/BiologicalStudies/Biotechnology/ Biochemistry; 3. Business Studies; 4. Chemistry; 5. Computer Science/Informatics Practices; 6. Economics/ Business Economics; 7. Engineering Graphics; 8. Entrepreneurship; 9. Geography/Geology; 10. History; 11. Home Science; 12. Knowledge Tradition and Practices of India; 13. Legal Studies; 14. Environmental Science; 15. Mathematics; 16. Physical Education/NCC/Yoga; 17. Physics; 18. Political Science; 19. Psychology; 20. Sociology; 21. Teaching Aptitude; 22. Agriculture; 23. Mass Media/Mass Communication; 24. Anthropology; 25. Fine Arts/Visual Arts (Sculpture/Painting)/Commercial Arts; 26. Performing Arts– (i) Dance (Kathak/Bharatnatyam/Oddisi/Kathakali/Kuchipudi/Manipuri (ii) Drama-Theatre (iii) Music General (Hindustani/Carnatic/Rabindra Sangeet/Percussion/Non-Percussion); 27. Sanskrit [For all Shastri (Shastri 3 years/4 years Honours) Equivalent to B.A./B.A. Honours courses i.e. Shastri in Veda, Paurohitya (Karmakand), Dharamshastra, Prachin Vyakarana, Navya Vyakarana, Phalit Jyotish, Siddhant Jyotish, Vastushastra, Sahitya, Puranetihas, Prakrit Bhasha,Prachin Nyaya Vaisheshik, Sankhya Yoga, Jain Darshan, Mimansa, AdvaitaVedanta, Vishihstadvaita Vedanta, Sarva Darshan, a candidate may choose Sanskrit as the Domain]. • A candidate can choose a maximum of any 3 languages from Section IA and Section IB taken together. (One of the languages chosen needs to be in lieu of Domain specific subjects). • Section II offers 27 subjects, out of which a candidate may choose a maximum of 6 subjects. • Section III comprises General Test. • For choosing Languages (up to 3) from Section IA and IB and a maximum of 6 subjects from Section II and General Test under Section III, the candidate must refer to the requirements of his/her intended University. Level of questions for CUET (UG)–2022: All questions in various testing areas will be benchmarked at the level of Class XII only. Marking Scheme of Examination For Multiple Choice Questions: To answer a question, the candidates need to choose one option corresponding to the correct answer or the most appropriate answer. However, if any anomaly or discrepancy is found after the process of challenges of the key verification, it shall be addressed in the following manner: (i) Correct answer or the most appropriate answer: Five marks (+ 5) (ii) Any incorrect option marked will be given minus one mark (– 1). (iii) Unanswered/Marked for Review will be given no mark (0). (iv) If more than one option is found to be correct then Five marks (+ 5) will be awarded to only those who have marked any of the correct options. (v) If all options are found to be correct then Five marks (+ 5) will be awarded to all those who have attempted the question. (vi) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+ 5). Note: Candidates are advised to visit the NTA CUET (UG)–2022 official website https://cuet.samarth.ac.in/, for latest updates regarding the Examination.

Contents Part A: Accounting for Not-for-Profit Organisations and Partnership Firms Unit I. Accounting for Not-for-Profit Organisations ... 3 Unit II. Accounting for Partnership ... 9 Unit III. Reconstitution of Partnership ... 15 Unit IV. Dissolution of a Partnership Firm ... 27 Part B: Company Accounts and Financial Statement Analysis Unit V. Accounting for Share and Debenture Capital ... 37 44 Unit VI. Analysis of Financial Statements ... 52 Unit VII. Statement of Changes in Financial Position ... Part C: ComputeriSed Accounting System Unit I. Overview of Computerised Accounting System ... 59 Unit II. Using Computerised Accounting System ... 62 Unit III. Accounting Using Database Management System (DBMS) ... 65 Unit IV. Accounting Applications of Electronic Spreadsheet ... 71 Answers ... 74 Mock Test Papers • Mock Test Paper –1 ... M-1 • Mock Test Paper –2 ... M-6 • Mock Test Paper –3 ... M-12 • Mock Test Paper –4 ... M-17 • Mock Test Paper –5 ... M-22 Answers ... M-27

Syllabus Note: There will be one Question Paper which will have 50 questions out of which 40 questions need to be attempted. Part A: Accounting for Not-for-Profit Organisations and Partnership Firms Unit I: Accounting for Not-for-Profit Organisation • Not-for-profit organization: Meaning and Examples. • Receipts and Payments: Meaning and Concept of fund-based and non-fund-based accounting. • Preparation of Income and Expenditure Account and Balance Sheet from Receipts and Payments Account with additional information. Unit II: Accounting for Partnership • Nature of Partnership Firm: Partnership deed (meaning, importance). • Final Accounts of Partnership: Fixed v/s Fluctuating capital, Division of profit among partners, Profit and Loss Appropriation Account. Unit III: Reconstitution of Partnership Changes in profit sharing ratio among the existing partners – Sacrificing ratio and Gaining ratio. • Accounting for Revaluation of Assets and Liabilities and Distribution of reserves and accumulated profits. • Goodwill: Nature, Factors affecting and Methods of valuation: Average profit, Super profit, Multiplier, and Capitalisation methods. • Admission of a Partner: Effect of admission of a partner, Change in profit sharing ratio, the Accounting treatment for goodwill, Revaluation of assets and liabilities, Reserves (accumulated profits), and Adjustment of capitals. • Retirement/Death of a Partner: Change in profit sharing ratio, Accounting treatment of goodwill, Revaluation of assets and liabilities, Adjustment of accumulated profits (Reserves). Unit IV: Dissolution of Partnership Firm • Meaning, Settlement of Accounts: Preparation of realization account and related accounts (excluding piecemeal distribution, sale to a company and insolvency of a partner) (vii)

(viii) Part B: Company Accounts and Financial Statement Analysis Unit V: Accounting for Share and Debenture Capital • Share Capital: Meaning, Nature and Types. • Accounting for Share Capital: Issue and Allotment of Equity and Preference Shares; Over subscription and Under subscription; Issue at par, premium and at discount; Calls in advance, Calls in arrears, Issue of shares for consideration other than cash. • Forfeiture of Shares: Accounting treatment, Re-issue of forfeited shares. • Presentation of shares and Debentures Capital in the company’s balance sheet. • Issue of Debenture – At par, premium, and discount; Issue of debentures for consideration other than cash. • Redemption of the debenture. • Out of proceeds of fresh issue, accumulated profits, and sinking fund. Unit VI: Analysis of Financial Statements • Financial Statements of a Company: Preparation of simple financial statements of a company in the prescribed form with major headings only. • Financial Analysis: Meaning, Significance, Purpose, Limitations. • Tools for Financial Analysis: Comparative statements, Common size statements. • Accounting Ratios: Meaning and Objectives, Types of ratios: Liquidity Ratios: Current ratio, Liquidity ratio. Solvency Ratio: Debt to equity, Total assets to debt, Proprietary ratio. Activity Ratio: Inventory turnover, Debtors turnover, Payables turnover, Working capital turnover, Fixed assets turnover, Current assets turnover. Profitability Ratio: Gross profit, Operating ratio, Net profit ratio, Return on Investment, Earning per Share, Dividend per Share, Profit Earning ratio. Unit VII: Statement of Changes in Financial Position • Cash Flow Statement: Meaning and Objectives, Preparation, Adjustments related to depreciation, dividend and tax, sale and purchase of non-current assets (as per revised standard issued by ICAI). Part C: Computerized Accounting System Unit I: Overview of Computerised Accounting System • Concept and Types of Computerised Accounting System (CAS). • Features of a Computerised Accounting System. • Structure of a Computerised Accounting System. Unit II: Using Computerised Accounting System • Steps in the installation of CAS, Preparation of chart of accounts, Codification, and Hierarchy of account heads. • Data entry, Data validation, and Data verification. • Adjusting entries, Preparation of financial statements, Closing entries, and Opening entries. • Security of CAS and Security features are generally available in CAS (Students are expected to understand and practice the entire accounting process using an accounting package.)

(ix) Unit III: Accounting Using Database Management System (DBMS) • Concepts of DBMS. Objects in DBMS: Tables, Queries, Forms, Reports. • Creating data tables for accounting. • Using queries, forms, and reports for generating accounting information. Applications of DBMS in generating accounting information such as shareholders’ records, sales reports, customers’ profiles, suppliers’ profiles payroll, employees’ profiles, and petty cash registers. Unit IV: Accounting Applications of Electronic Spreadsheet • Concept of an Electronic Spreadsheet (ES). • Features offered by Electronic Spreadsheet. • Applications of Electronic Spreadsheet in generating accounting information, preparing depreciation schedules, loan repayment schedules, payroll accounting, and other such company

PART – A Accounting for Not-for-Profit Organisations and Partnership Firms Unit I. Accounting for Not-for-Profit Organisations Unit II. Accounting for Partnership Unit III. Reconstitution of Partnership Unit IV. Dissolution of a Partnership Firm

Reconstitution of Partnership 15 UNIT III Reconstitution of Partnership MULTIPLE CHOICE QUESTIONS Choose the correct alternative. 6. At the time of admission, general reserve 1. Admission of a new partner results in: is distributed among the partners in the ............. . (a) Dissolution of a firm (b) Dissolution of partnership (a) Sacrificing Ratio (c) Re-structuring of business (b) Gaining Ratio (c) New Profit – Sharing ratio (d) None of these 2. New partner may be admitted to partnership (d) Old Profit – Sharing Ratio 7. Admission of a new partner requires ............. . consent of ............. . (a) with the consent of all the old partners (a) all existing partners (b) with the consent of any one partner (c) with the consent of 2/3rd of old (b) new partner (c) majority partner partners (d) Minority partner (d) with consent of 3/4th of old partners 8. Depreciation fund, at the time of admission 3. A new partner can be admitted only with or a partner, is transferred to: the ............. . (a) majority decision (a) Capital A/c of the Partner (b) unanimous decision of all partners (b) Revaluation A/c (c) approval of Registrar of Firms (c) Profit and Loss A/c (d) consent of Managing Partner (d) None of these 4. When a new partner is admitted into the 9. Sacrificing ratio is: firm the old partner stands to: (a) Old Profit Sharing Ratio – New Profit (a) gain in profit sharing ratio Sharing Ratio (b) lose in profit sharing ratio (b) New Profit Sharing Ratio – Old Profit (c) not affected at all Sharing Ratio (d) only one partner gain other lose (c) Equal to Old Profit Sharing Ratio 5. On admission of a new partner, existing (d) Equal general reserve is transferred to ............. . 10. A, B, C and D are partners sharing their (a) All Partner's Capital A/cs profit and losses equally. They change their (b) Old Partner's Capital A/cs profit sharing ratio to 2 : 2 : 1 : 1. How much (c) New Partner's Capital A/c is C's sacrifice. (d) Active Partner's Capital A/c (a) 1/6th (b) 1/12th (c) 1/24th (d) 1/2th 15

16 Accountancy 11. A and B are partners sharing profit and 18. To which account are unrecorded assets/ loss in ratio 5 : 3. On admission C brings liabilities transferred to: ` 70,000 cash and ` 48,000 against goodwill. New profit sharing ratio between A, B, C is (a) Partner Capital A/c 7 : 5 : 4. The sacrificing ratio ............. . (b) Revaluation A/c (a) 3 : 1 (b) 4 : 7 (c) Profit and Loss Appropriation A/c (c) 5 : 4 (d) 2 : 1 (d) Any of these A/c 19. Increase in the value of assets at the time of 12. A new partner, along with other partners admission of a partner is ............. . get ............. . (a) Credited to Revaluation A/c (a) right to share future profits of the firm (b) Debited to Revaluation A/c (b) right to share in the assets of the firm (c) Credited to Partner Capital A/c (c) both (d) Debited to Profit and Loss A/c (d) either (a) or (b) 13. A minor partner can be admitted into a firm 20. Decrease in value of assets at the time of admission of a partner is ............. . as a partner for ............. . (a) Credited to Revaluation A/c (a) guaranteed profit and loss (b) Debited to Revaluation A/c (b) equal profit and loss (c) Credited to Partner Capital A/c (c) profit only (d) Debited to Profit and Loss A/c (d) reasonable profit and nominal loss 21. Increase in the value of liability at the time 14. To which account is accumulated balances of admission of a partner is ............. . of profit and loss account and general reserve account transferred to at the time of (a) Credited to Revaluation A/c admission of a partner. (b) Debited to Revaluation A/c (a) Partner’s Current A/c (c) Credited to Partner Capital A/c (b) Realization A/c (c) Revaluation Account (d) Debited to Profit and Loss A/c (d) None of these 22. Decrease in value of liability at the time of 15. Admission of a partner does not require admission of a partner is: ............. . (a) Credited to Revaluation A/c (a) Revaluation A/c (b) Realization of Assets (b) Debited to Revaluation A/c (c) Distributing of Goodwill (c) Credited to Partner Capital A/c (d) Finding Sacrificing Ratio (d) Debited to Profit and Loss A/c 16. ............. is opened for revaluation of assets 23. Profit and Loss on revaluation of assets and and liabilities at time of admission of a liabilities are transferred to ............. . partner. (a) Capital A/c of New Partner (a) Profit and Loss A/c (b) Revaluation A/c (b) Capital A/c of All Partners (c) Realization A/c (c) Capital A/c of Old Partner (d) Profit and Loss Appropriation A/c 17. Revaluation account is a ............. . (d) None of these 24. Profit or loss on revaluation of assets and (a) Real A/c (b) Nominal A/c (c) Personal A/c (d) Suspense A/c liabilities are distributed in the ........... ratio. (a) gaining (b) sacrificing (c) old profit sharing ratio (d) new profit sharing ratio

Reconstitution of Partnership 17 25. Profit or loss on revaluation of assets is (a) Reconstitution of a Partnership Firm transferred to partner’s capital accounts at which ratio. (b) Goodwill Revaluation (c) Retirement of a Partner (a) Equal (d) None of these (b) Profit Sharing Ratio 32. The ratio in which old partners agree to (c) Fixed Capital Ratio sacrifice their shares of profit in favour of (d) Current Capital Ratio new incoming partner is termed as ............. . 26. Goodwill brought in by a new partner is a (a) sacrificing ratio ............. . (b) goodwill valuation (c) new ratio (a) Tangible Assets (d) none of these 33. P and Q are partners sharing profits in the (b) Fictitious Assets (c) Dummy Assets ratio of 2 : 1. T is admitted with 5/11th share which he takes 3/11th from P and 2/11th from (d) Intangible but Real Assets Q. Calculate the new profit sharing ratio of 27. When the incoming partner brings his share of goodwill in cash, which of these methods the partners. of valuation of goodwill in appropriate. (a) Revaluation Method (a) 13 : 5 : 15 (b) 16 : 5 : 20 (b) Memorandum Revaluation Method (c) Premium Method (c) 14 : 4 : 20 (d) None of the above 34. A and B are partners sharing profits in the (d) Any of these methods ratio of 7 : 3. They admit C for 1/5th share, 28. Premium brought in by a new partner is which he acquires in equal proportions meant to ............. . from both, find the new profit sharing ratio. (a) Appease the Old Partner (a) 2 : 1 : 1 (b) 1 : 1 : 1 (b) To Compensate the Old Partner (c) 3 : 1 : 1 (d) None of these (c) No purpose but it is a custom 35. Goodwill is an ............. Asset. (d) None of these (a) tangible asset (b) fictitious asset 29. Which of these terms are not true in respect (c) intangible asset (d) none of these 36. In Revaluation method, goodwill is to be to goodwill. shown on the ............. side of the Balance (a) Real Assets (b) Intangible Assets Sheet. (c) Fixed Assets (d) Fictitious Assets (a) Assets (b) Liabilities 30. Asha and Nisha are partners sharing profits (c) General Reserve (d) None of these in the ratio of 2:1. Asha’s son Ashish was admitted for 1/4th share of which 1/8th was 37. Accumulated profits are distributed among gifted by Asha to her son. The remaining was contributed by Nisha. Goodwill of old partners in their ............. profit sharing the firm is valued at ` 40,000. How much of the goodwill will be credited to the old ratio. partner’s capital account. (a) old (b) gaining ratio (c) new (d) none of these 38. Sacrificing ratio is used when new partner’s (a) ` 2,500 each (b) ` 5,000 each share of goodwill premium is ............. and is (c) ` 20,000 each (d) ` None of these to be distributed to old partners. 31. The effect of admission of a new partner on (a) brought in the form of service the partnership firm is that there is a change in the relations of the partners and there is (b) brought in Cash ............. . (c) brought in the form of property papers (d) none of these

18 Accountancy 39. A and B are partners sharing profits in the for 1/4th share. Afterwards W enters for ratio of 5 : 4. They admit C for 1/10th share, 20 paise in the rupee. Compute the profit sharing ratio of X, Y, Z and W after W’s which he acquires in equal proportion from admission. both. Find the new profit sharing ratio. (a) 9 : 17 : 18 (b) 91 : 71 : 18 (a) 9 : 6: 5 : 5 (b) 9 : 7 : 4 : 4 (c) 91 : 72 : 19 (d) None of these (c) 9 : 10 : 6 : 5 (d) None of these 40. The old profit sharing ratio among A, B and 47. A, B, C and D are in partnership sharing C were 2 : 2 : 1. The new profit sharing ratio profits and losses in the ratio of 36 : 24 : 20 : 20 after B’s retirement is 3 : 2. The gaining ratio respectively. E joins the partnership for 20% is ............. . share. A, B, C, D would share profits in future (a) 1 : 1 (b) 2 : 1 among themselves as 3/10th, 4/10th, 2/10th, (c) 3 : 1 (d) none of the above 1/10th. Calculate new profit sharing ratio after 41. On reconstitution of a firm, bringing into E’s admission. account the changes in the value of Assets (a) 6 : 8 : 4 : 2 : 5 (b) 6 : 7 : 8 : 2 : 5 (c) 7 : 4 : 3 : 2 : 5 (d) None of these means ............. . 48. Goodwill is about ............. but not tangible (a) realisation of assets assets. (b) capitalisation of assets (c) revaluation of assets (a) Fixed Assets (d) none of these (b) Fictitious Assets 42. Bringing into account the changes in the (c) Efficient Management value of liabilities is called ............. . (d) None of these 49. Retirement of a partner from a firm leads to: (a) reassessment of liabilities (b) capitalisation method (a) closure of firm (c) revaluation of goodwill (b) end of partnership (c) dissolution of the firm (d) none of these 43. In old ratio, the partners share profits or (d) all the above 50. The Retiring/Outgoing Partner losses on revaluation of assets and liabilities, when there is a sharing ratio amongst (a) to be liable for firm’s liabilities existing partners. (b) not liable for any liabilities of the firm (a) change in profit sharing ratio (c) liable for obligation incurred before (b) change in partnership deed retirement (c) change in goodwill (d) liable for obligation incurred with his (d) none of these 44. Right of sharing in the assets of the firm consent. Right of sharing in the future profits of the 51. Outgoing partner is compensated for parting with the firm’s future profits in firm. These rights are acquired by a ............. . favour of remaining partners. In what ratio does the remaining partner contribute to (a) New Partner (b) Old Partner such compensation amount. (c) New Ratio (d) None of these 45. Goodwill is needed for ............. at the time (a) Gaining Ratio (b) Capital Ratio (c) Sacrificing Ratio Admission and Retirement. (d) Profit sharing Ratio 52. A partner may retire from the firm ............. . (a) Valuation (b) Revaluation (c) Acquiring (d) None of these 46. X and Y are in partnership sharing profits (a) if there is an agreement to the effect and losses in the ratio of 3 : 2. Z is admitted (b) if all partner consent to his retirement

Reconstitution of Partnership 19 (c) by notice of a partner if at will (c) by dissolution notice given to a partner (d) all of the above (d) all the three. 53. A retiring partner is entitled to ............. . 60. The amount due to the deceased partner is (a) share of goodwill paid to his: (b) revaluation profit and other reserve (c) balance in capital/current account (a) Friends (b) Wife (c) Executor (d) His Father (d) all of the above 61. On retirement or death of a partner the 54. If the goodwill raised at the time of existing reserves are transferred to the retirement of a partner is to be written-off then the capital account of the remaining ............. . partners are debited in the: (a) Dr. Side of Partner's Capital A/c (a) New Profit Sharing Ratio (b) Cr. Side of Partner's Capital A/c (c) Dr. Side of the Remaining Partner's (b) Old Profit Sharing Ratio (c) Capital Ratio Capital (d) Gaining Ratio 55. When a partner retires, his share of profit is (d) Cr. Side of Remaining Partner’s Capital 62. On retirement of a partner the existing ............. . balance of reserves and other accumulated (a) shared by other partners Profits are transferred to all partners capital accounts ............. . (b) given to legal successor (a) in gaining ratio (c) vested with management (b) in sacrificing ratio (c) old profit sharing ratio (d) vested with the official liquidator 56. At the time of retirement of a partner, firm (d) new profit sharing ratio 63. Revaluation account is: gets ............. from the insurance company against the joint life policy taken severely (a) Real Account (b) Nominal Account for each partner. (c) Personal Account (d) None of these 64. To ascertain profit or loss on retirement/ (a) policy amount (b) surrender value (c) surrender value for all partners death of a partner ............. is prepared. (d) None of these (a) Realisation A/c 57. Amount due to retiring partner is shown as (b) Profit and Loss A/c (c) Revaluation A/c ............. . (d) All the above 65. How unrecorded assets are treated at the (a) Capital A/c (b) Long-term loss time of retirement of a partner. (c) Retiring Partner's Loan A/c (d) Term Loan A/c (a) Debited to Revaluation A/c 58. What rate of interest is allowed on the (b) Credited to Revaluation A/c outstanding loan of a retiring/deceased (c) Credited to Partner's Capital A/c partner as per the Partnership Act, 1932. (a) At Bank Rate (b) 12% (d) None of these (c) 6% 66. Balance in the Revaluation A/c is transferred (d) Rate announced by RBI 59. A partnership comes to an end due to to ............. . ............. . (a) Partner's Fixed Capital A/c (a) insolvency of all partners (b) Partner's Current A/c (c) Profit and Loss A/c (b) death of a partner (d) none of these

20 Accountancy 67. Increase in liability at the time of retirement (c) no. of partners of a partner is ............. . (d) old ratio – sacrificing ratio (a) Credited to Revaluation A/c 74. Which of these is not found in case of retirement/death of a partner: (b) Debited to Revaluation A/c (c) Debited to Profit and Loss A/c (a) Revaluation Account (b) Realisation of Assets (d) Debited to Goodwill A/c (c) Dissolution of Goodwill 68. Increase in any assets at the time of (d) Gaining Ratio retirement of a partner is ............. . 75. Joint Life Policy Account is a ............. . (a) Credited to Revaluation A/c (a) Nominal Account (b) Debited to Revaluation A/c (b) Real Account (c) Debited to Profit and Loss A/c (c) Personal Account (d) Debited to Goodwill A/c (d) Suspense Account. 69. Decrease in assets at the time of retirement 76. When the Joint Life Insurance Policy of a partner is ............. . premium is treated as an expense, the amount received on death of the partner is (a) Credited to Revaluation A/c transferred to ............. . (b) Debited to Revaluation A/c (a) Partner Capital Account (c) Debited to Profit and Loss A/c (b) Cash Account (d) Debited to Goodwill A/c 70. Retirement of a partner requires all except (c) Profit and Loss Appropriation A/c ............. of these. (d) Free Reserve A/c (a) Compensation 77. ............. is the main objective of a Joint Life Policy. (b) Revaluation of assets and liabilities (c) Distribution of existing profit and (a) To avert death/retirement of a partner reserves (b) To meet expense on retirement of partner (d) None of these 71. Gaining ratio is: (c) To provide funds for payment to the executor of a decrease partner (a) Old Ratio – New Ratio (d) To pay the amount due to the retiring (b) Old Profit Sharing Ratio partner (c) New Profit Sharing Ratio 78. Which of these is not a method of accounting (d) New Ratio – Old Ratio treatment of premium of Joint Life Policy? 72. Retirement/Death of a partner leads to (a) Treatment as an Expense ............. . (b) Treatment as an Asset (a) gain in profit sharing ratio of remaining (c) Deferred Revenue Expenditure partners (d) None of the above (b) loss in profit sharing ratio of remaining 79. ............. is created to provide funds for partners payment to the legal heirs of the deceased (c) no change in profit and sharing ratio of partner. remaining partners (a) Sinking Fund (d) none of these (b) Joint Life Policy (c) Invest in Mutual Fund 73. On retirement/death of a partner new profit sharing ratio of remaining partner will be: (d) Fixed Deposit in Banks (a) old ratio + gaining ratio (b) old ratio + sacrificing ratio

Reconstitution of Partnership 21 80. On retirement/death of a partner, the 82. Anand, Bahadur and Chander are partners, retiring/deceased partner’s capital account sharing profits equally, on Chander’s will be credited with: retirement, his share is acquired by Anand and Bahadur in the ratio of 3 : 2. The new (a) his/her share of goodwill profit sharing ratio between Anand and Bahadur will be ............. . (b) goodwill of the firm (c) shares of goodwill of remaining partners (a) 8 : 7 (b) 9 : 8 (c) 7 : 8 (d) None of these (d) none of these 81. A, B and C are partners sharing profit in the ratio of 5 : 3 : 2. If C retires, the new profit sharing ratio between A and B will be: (a) 5 : 3 (b) 3 : 5 (c) 5 : 2 (d) None of these CASE STUDIES Case Study 1 Read the given passage carefully and answer the questions. P and Q are in partnership sharing profits and losses in the ratio of 3 : 2, respectively. R joins the partnership for 25% share. (i) Calculate the new profit sharing ratio. (ii) Find the sacrificing ratio of P and Q after R (a) P : Q : R ⇒ 8 : 5 : 4 admission (b) P : Q : R ⇒ 9 : 6 : 5 (c) P : Q : R ⇒ 9 : 5 : 4 (a) P : Q ⇒ 3 : 2 (b) P : Q ⇒ 3 : 4 (d) None of these (c) P : Q ⇒ 2 : 3 (d) None of these Case Study 2 Read the given passage carefully and answer the questions. A, B, C and D are in partnership sharing profits and losses in the ratio of 36 : 24 : 20 : 20, respectively. E joins the partnership for 1/5th share. A, B, C and D would share profits in future among themselves as 3 : 4 : 2 : 1. (i) The new profit sharing ratio will be: (a) 5 : 4 : 6 : 2 : 3 (b) 6 : 8 : 4 : 2 : 5 (c) 5 : 6 : 7 : 3 : 4 (d) None of these Case Study 3 Read the given passage carefully and answer the questions. Ram and Shyam share profits and losses in the ratio of 5 : 3. Bhuwan is admitted for 3/10th share of profits half of which was gifted by Ram and the remaining share was taken by Z equally from Ram and Shyam. (i) The new ratio is: (a) 2 : 3 : 3 (b) 3 : 4 : 5 (c) 4 : 3 : 5 (d) 4 : 3 : 3

22 Accountancy Case Study 4 Read the given passage carefully and answer the questions. Admission of the new partner results in the change of agreement among old partners. Introduction of one or more partner into the existing firm means reduction in the share of old partner or partners. Hence, it will be gain for new partner and sacrifice for old partner or partners. Old partners have to make sacrifice of their share individually or collectively to accommodate new partner in the firm. It is certain that after giving a share to the new partner there will remain lesser share to be distributed among old partners in the new firm. The share given to the new partners will reduce the shares of all the partners or any one partner individually. 1 (i) A and B are partners sharing profits in the ratio of 3 : 2. They admit C for 5 share. Calculate the sacrificing ratio. (a) 3 : 2 (b) 2 : 3 (c) 2 : 1 (d) None of these Case Study 5 Read the given passage carefully and answer the questions. X, Y and Z were partners sharing profits in the ratio of 4 : 3 : 2. X dies on 31st May, 2013. The sales and profits for the year on 31st Dec., 2012 were ` 2,40,000 and ` 30,000, respectively. The sales up to 31st May, 2013 amounted to ` 1,44,000. (i) If sales is ` 1,44,000 what is the profit (ii) What is X's share in Profits? amount? (a) 2,000 (b) 8,000 (a) 18,000 (b) 20,000 (c) 10,000 (d) None of these (c) 20,000 (d) None of these Case Study 6 Read the given passage carefully and answer the questions. A, B and C were partners in a firm sharing profit in the ratio of 3 : 2 : 1. The profits of the firm for the year ending on 31st Dec., 2012 was ` 1,20,000. B dies on 31st March, 2013. (i) What is B's share of profit? (a) 10,000 (b) 20,000 (c) 8,000 (d) None of these (ii) What is the Journal Entry for B's Share of Profit being transferred to his Capital A/c? (a) Profit and Loss Suspense A/c Dr. 10,000 10,000 To B's Capital A/c (b) Profit and Loss A/c Dr. 10,000 Dr. 10,000 To B's Revaluation A/c (c) Profit and Loss Appropriation A/c Dr. 8,000 To B's Capital A/c 8,000 (d) None of these

Reconstitution of Partnership 23 Case Study 7 Read the given passage carefully and answer the questions. A, N and S were partners sharing profits and losses equally. Following was their Balance Sheet as at 31st March, 2018. Liabilities ` Assets ` Trade Creditors 40,000 Buildings 20,00,000 General Reserve 45,000 Plant & Machinery 80,000 Capitals: Stock 35,000 A 1,95,000 Debtors 80,000 N 1,20,000 Cash at Bank 85,000 S 80,000 3,95,000 4, 80, 000 4, 80, 000 S died on 1st August, 2018. The partnership deed provided that the executor of deceased partner was entitled to: (i) Balance of partner's capital account and his share of the accumulated reserves. (ii) Share of goodwill calculated on the basis of three times the average profits of the last four years. (iii) Share of profit from the closure of the last accounting year till the date of death on the basis of the profit of the preceding completed year before death. (iv) Interest on deceased's capital @ 6% per annum. ` 50,000 to be paid to deceased's executor immediately and the balance to be kept in his loan account. Profit and losses for the preceding years ending 31st March were: 2015 – ` 80,000 profit 2016 – ` 1,00,000 loss 2017 – ` 1,80,000 profit 2018 – ` 1,80,000 profit On the basis of the information provided answer the questions, that follow. (i) Choose from the following which is the correct journal entry S's share of General Reserve Transferred to his account (a) General Reserve A/c Dr. 95,000 To S's capital A/c 95,000 (S's share of General Reserve transferred to his A/c) (b) General Reserve A/c Dr. 75,000 To S's capital A/c 75,000 (S's share of General Reserve transferred to his A/c) (c) General Reserve A/c Dr. 15,000 To S's capital A/c 15,000 (S's share of General Reserve transferred to his A/c)

24 Accountancy (d) General Reserve A/c Dr. 95,000 To S's capital A/c 95,000 (S's share of General Reserve transferred to his A/c) (ii) What is the adjustment amount for S's share of goodwill? What is S's Share? (a) 70,000 (b) 60,000 (c) 50,000 (d) 80,000 (iii) What is S's share of Profit upto the date of death? (a) 20,000 (b) 30,000 (c) 40,000 (d) 50,000 Case Study 8 Read the given passage carefully and answer the questions. A, B and C were partners sharing profits in the ratio of 3 : 2 : 1. As at 31st March, 2018, their Balance Sheet stood as under: Liabilities 2,00,000 ` Assets ` Sundry Creditors 1,50,000 44,000 Cash at Bank 22,000 Reserve 1,00,000 90,000 Stock Capitals: 1,20,000 Debtors 64,000 A Investments B Fixed Assets 2,50,000 C 4,50,000 1,28,000 5, 84, 000 5, 84, 000 B died on 31st July, 2018. The partnership deed provides that the executors of the deceased partner are entitled to: (i) The capital to his credit at the time of his death (ii) His share of reserves (iii) His share of profits to the date of death based on the average profits of the last three completed years, less 10% and (iv) Goodwill according to his proportion of the total profits for the three preceding years, which were ` 80,000; ` 1,30,000 and ` 1,50,000, respectively. The Investments were sold at par and B’s executor’s were paid off. 1. What is B’s share of Profit? 3. It will be contributed by A and C in the ratio (a) 12,000 (b) 15,000 of ............ ? (c) 10,000 (d) 18,000 (a) 3 : 1 (b) 2 : 1 2. What is B's share of goodwill? (c) 4 : 1 (d) 1 : 1 (a) 1,20,000 (b) 1,00,000 (c) 1,30,000 (d) 1,40,000 Case Study 9 Read the given passage carefully and answer the questions. A, B and C were partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 1.4.2015 was as under:

Reconstitution of Partnership 25 Liabilities ` Assets ` Sundry Creditors 20,000 Cash 8,000 Reserves 9,000 Debtors 22,000 Capitals: Stock 20,000 L 50,000 Machinery 67,000 M 30,000 Investments 12,000 N 20,000 1,00,000 1,29,000 1,29,000 N died on 5th November, 2015 and according to the partnership deed his executors were entitled to be paid as follows: (a) The capital to his credit at the time of his death and interest thereon @ 8% per annum. (b) His share of reserves. (c) His share of profits for the intervening period will be based on the sales during that period, which were calculated as ` 2,40,000. The rate of profit during past 4 years had been 15% on sales. (d) Good will according to his share of profit to be calculated by taking thrice the amount of the average profit of the last four years less 25%. The profits of the previous years were: 2012 ` 10,500 2013 ` 12,000 2014 ` 12,500 2015 ` 13,000 The investments were sold at par and his executors were paid out. 1. What is the interest on capital? (c) 28,000 (d) 19,000 (a) 960 (b) 950 3. What is N's Share of goodwill? (c) 900 (d) 920 (a) 5,400 (b) 5,000 2. What is the total goodwill amount? (c) 8,000 (d) 2,000 (a) 27,000 (b) 20,000 Case Study 10 Read the given passage carefully and answer the questions. P, Q and R were partners in a firm sharing profits in the ratio of 5 : 6 : 9. On 31-3-2019, their Balance Sheet was as follows: Liabilities ` Assets ` Creditors 30,000 Cash 10,000 Bills Payable 40,000 Bank 80,000 General Reserve 60,000 Stock 40,000 Capitals: Debtors 70,000 P 1,30,000 Building 2,00,000 3,00,000 Q 2,00,000 Land 1,60,000 8,60,000 R 4,00,000 7,30,000 Profit and Loss A/c 8,60,000 R died on 30th April, 2016. The partnership deed provided for the following on the death of a Partner:

26 Accountancy (i) Goodwill of the firm was to be valued at 3 year's purchase of the average profits of the last 5 years. The profits for the year ending 31-3-2018, 31-3-2017, 31-3-2016 and 31-3-2015 were ` 80,000; ` 80,000; ` 1,10,000 and ` 2,20,000, respectively. (ii) R's share of profit or loss till the date of his death was to be calculated on the basis of the profit or loss for the year ending 31-3-2016. 1. What is the firm's goodwill amount? (a) 1,98,000 (b) 2,00,000 (c) 79,100 (d) 99,000 (c) 2,98,000 (d) 98,000 3. R's Share of loss till the date of his death: 2. What is R's share of goodwill? (a) 6,000 (b) 7,000 (a) 89,100 (b) 90,100 (c) 8,000 (d) 10,000 Case Study 11 Read the given passage carefully and answer the questions. G, E and F were partners in a firm sharing profits in the ratio of 7 : 2 : 1. The Balance Sheet of the firm as at 31st March, 2018 was follows: Balance Sheet of G, E and F as at 31st March, 2018 Liabilities 70,000 ` Assets ` Capitals: 20,000 Goodwill 10,000 Land & Building 40,000 G Machinery 60,000 E 40,000 F 1,00,000 Stock 7,000 General Reserve 20,000 Debtors 12,000 Loan From E 30,000 Cash 5,000 Creditors 14,000 1,64,000 1,64,000 E died 24th August 2018. Partnership deed provides for the settlement of claims on the death of a partner in addition to his capital as under: (i) The share of profit of deceased partner to be computed upto the date of death on the basis of average profits of the past three years which was ` 80,000. (ii) His share in profit/loss on revalued of assets and re-assessment of liabilities which were as follows: Land and Building were revalued at ` 94,000, Machinery at ` 38,000 and Stock at ` 5,000. A provision of 2.5% was to be created on debtors for bad and doubtful debts. (iii) The net amount payable of E's executors was transferred to his Loan Account, to be paid later on. G and F decided to continue the business keeping their capital balances in their new profit sharing ratio. Any surplus or deficit to be transferred to current accounts of the partners. 1. What is E's share in profit for 146 days? (c) 920 (d) 520 (a) 6,400 (b) 5,400 3. What is the new profit sharing ratio of G and F? (c) 7,400 (d) 8,400 2. What is the Interest on E's loan? (a) 7 : 1 (b) 8 : 1 (a) 720 (b) 820 (c) 9 : 1 (d) 2 : 1

PART – B COMPANY ACCOUNTS AND FINANCIAL STATEMENT ANALYSIS Unit V. Accounting for Share and Debenture Capital Unit VI. Analysis of Financial Statements Unit VII. Statement of Changes in Financial Position

52 Accountancy UNIT VII Statement of Changes in Financial Position MULTIPLE CHOICE QUESTIONS Choose the correct alternative (c) Neither of the two 1. Preparation of cash flow statement is: (d) Both (a) and (b) (a) Mendatory 7. Which of the following is an example of (b) Recommendatory Cash Flow from Operating Activities? (c) Required under the Companies Act (d) None of these (a) Purchase of Machinery 2. Issue of shares in consideration of purchase (b) Issue of Shares (c) Purchases of Inventory for Cash of plant and machinery results into: (d) Purchases of Investment (a) Inflow of Cash 8. While calculating operating profit which will be added to net profit: (b) Outflow of Cash (a) Interest received (c) Neither Inflow nor Outflow (b) Profit on sale of Asset (c) Increase in General Reserve (d) None of these (d) Refund of Tax 3. If net profit is ` 50,000 after writing off goodwill ` 10,000 then the cash flow from operating activities will be: 9. While calculating cash flow from operating (a) ` 60,000 (b) ` 40,000 netivities which will be deducted? (c) ` 50,000 (d) ` 30,000 (a) Increase in Creditors 4. If net profit is ` 35,000 after writing off (b) Increase in Debtors goodwill ` 6,000 and loss on sale of furniture (c) Decrease in Debtors ` 1,000, cash flow from operating activities (d) Decrease in Prepaid Expenses 10. While calculating cash flow from operating will be: activities, which will be added? (a) ` 35,000 (b) ` 42,000 (a) Increase in Stock (c) ` 29,000 (d) ` 28,000 (b) Increase in Creditors 5. Cash sales in: (a) Operating Activity (c) Decrease in Bills Payable (b) Investing Activity (d) Increase in Debtors (c) Financing Activity 11. An example of Cash Flow from Investing (d) None of these Activities: 6. Cash from operating activities will decrease (a) Cash Sales due to: (b) Issue of Shares (a) Increase in Current Assets (b) Decrease in Current Liabilities 52

Statement of Changes in Financial Position 53 (c) Payment of cash for purchase of (a) Operating Activities machinery (b) Investing Activities (d) Payment of Dividend 12. An example of Cash Flows from Financing (c) Finance Activities Activity is: (d) All the above (a) Sale of goods 19. Which of the following is not a Cash in Flow? (b) Sale of Investment (c) Cash receipts from issue of shares (a) Sale of Fixed Asset (d) Interest received 13. How will you treat payment of ‘Interest of (b) Purchase of Fixed Asset Debentures’ while preparing a Cash Flow (c) Issue of Debentures Statement? (d) Sale of Goods for Cash (a) Cash Flow from Operating Activities (b) Cash Flow from Investing Activities 20. In Cash Flow Statement, the item of ‘Interest’ (c) Cash Flow from Financing Activities is shown in: (d) Cash Equivalents 14. Where will you show purchase of goodwill (a) Operating Activities in Cash Flow Statement: (b) Investing Activities (a) Cash Flow from Operating Activities (c) Financial Activities (b) Cash Flow from Investing Activities (c) Cash Flow from Financing Activities (d) In both (d) & (c) (d) Cash Equivalent 15. Interest received by a finance company 21. Which of the following is not a Cash Outflow: is classified under which kind of activity (a) Increase in Creditors while preparing a Cash Flow Statement? (b) Increase in Debtors (a) Cash Flow from Operating Activities (b) Investing Activities (c) Increase in Stock (c) Financing Activities (d) Cash Equivalent (d) Increase in prepaid expenses 16. Which of the following item is considered 22. Cash from operation is equal to : as cash equivalents: (a) Net Profit + Increase in Current Assets (a) Bank Overdraft (b) Bills Receivable (b) Net Profit + Decrease in Current Liabilities (c) Debtors (d) Short-term Investment (c) Operating Profit + Adjustment of Current 17. Which of the following item is not considered Assets and Current Liabilities as cash equivalents? (d) All of the above (a) Bank Overdraft 23. Income tax refund is a cash of: (b) Commercial Papers (c) Treasury Bills (a) Source (b) Application (d) Investment 18. Cash payment to employees is a Cash Flow (c) Both (a) & (b) (d) None of these from: 24. Cash Flow Statement in based upon: (a) Cash basis of accounting (b) Accrual basis of accounting (c) Both (a) and (b) (d) None of these 25. Cash Flow Statement is related to: (a) AS-3 (b) AS-6 (c) AS-9 (d) AS-12 26. Cash Flow Statement is prepared from: (a) Balance Sheet (b) Profit & Loss Account (c) Additional Information (d) All of these

54 Accountancy 27. Following Is included in Cash Flow from 32. Cash flow statement according to AS-3 is Operating Activities: mandatory to: (a) Royalties, Fees, Commission (a) All enterprises (b) Purchase of Debentures (c) Purchase of Machinery (b) Companies listed on a stock exchange (d) Issue of Shares 28. Following are included in cash equivalent: (c) Enterprises having turnover expending 50 ` crore (a) Treasury Bill (b) Trade Bill (d) Both (b) & (c) (c) Bank Deposits of Short Maturity Period (d) All of above 33. Profit during the year ` 20,000. During 29. Claims received from Insurance Companies the year, there was increase in stock by ` 9,000 and decrease in debentures of are treated as: ` 5,000. What is the amount of cash from operating activities? (a) Cash Flow from Operating Activities (b) Cash Flow from Investing Activities (a) ` 6,000 (b) ` 16,000 (c) Cash Flow from Financing Activities (c) ` 24,000 (d) ` 34,000 (d) None of these 30. Which activity comes under ‘Operating 34. Given: Activities’? Net Profit during the year ` 1,00,000 (a) Purchase of Land Debtors in the beginning the year of ` 30,000 (b) Issue of Debentures (c) Proceeds from Issuance of Equity Shares Debtors at the end of the year ` 36,000 (d) Cash Sales 31. Which of the following is not a non-cash What is the amount of cash from operating activities? item? (a) ` 30,000 (b) ` 94,000 (a) Cash Sales (b) Goodwill written off (c) `1,06,000 (d) ` 1,66,000 (c) Depreciation (d) Provision of Bad Debts 35. Given Net Profit during the year ` 30,000 Creditors in the beginning ` 24,000 Creditors at the end ` 16,000 What is the amount of cash from operating activities: (a) ` 30,000 (b) ` 34,000 (c) ` 22,000 (d) ` 40,000 CASE STUDIES Case Study 1 Read the given passage carefully and answer the questions. From the following information, compute the amount of cash flow from Investing Activities. Particulars Amount (`) Land and Building acquired during the year 3,75,000 Non Current Investment purchased 2,02,500 Fixed tangible assets (machine) acquired 3,37,500 Fixed tangible assets (machine) sold 4,50,000 Sale of Non Current investment 1,20,000

Statement of Changes in Financial Position 55 Sale of Tangible Fixed assets (machine) 1,57,500 Receipt for Permission of use of Trademark 67,500 Interest received on Debentures held as Investment 15,000 Dividend Received on shares as Investment 22,500 (i) How much is the proceeds from sale of (iii) How much is the net cash used in investing fixed tangible assets (Machine)? activities? (a) 4,50,000 (b) 3,50,000 (a) 82,500 (b) 72,500 (c) 2,50,000 (d) 7,50,000 (c) 45,500 (d) 65,500 (ii) How much is the proceeds from sale of non- (iv) How much is the proceeds from sale of current investment? tangible fixed assets (Machine)? (a) 1,20,000 (b) 2,20,000 (a) 1,57,500 (b) 1,77,500 (c) 3,20,000 (d) None of the above (c) 1,67,500 (d) 1,97,500 Case Study 2 Read the given passage carefully and answer the questions. Investments at the beginning of the period 34,000. Investments at the end of the period 28,000, and during the year, the company sold @ 40% of its Investments held in the beginning at a profit of ` 8,400. (i) How much is the purchase of investment? (iii) How much is the Net Cash Flow from investing activities? (a) 7,600 (b) 8,600 (c) 5,600 (d) 3,600 (a) 6,000 (b) 7,000 (ii) How much is the proceeds from sale of (c) 4,000 (d) 3,000 investment? (a) 13,600 (b) 12,600 (c) 11,600 (d) 10,600

PART – C COMPUTERISED ACCOUNTING SYSTEM Unit I. Overview of Computerised Accounting System Unit II. Using Computerised Accounting System Unit III. Accounting Using Database Management System (DBMS) Unit IV. Accounting Applications of Electronic Spreadsheet

Accounting Using Database Management System (DBMS) 65 UNIT III Accounting Using Database Management System (DBMS) MULTIPLE CHOICE QUESTIONS Choose the correct alternative. 6. What is a database? 1. What is a Data Definition Language (DDL)? (a) Organized collection of information that cannot be accessed, updated, and managed (a) a syntax which helps in modifying data present in the form of tables or indexes (b) Collection of data or information without organizing (b) a method of modifying data (c) it is a form of tables or indexes (c) Organized collection of data or informa- (d) none of these tion that can be accessed, updated, and 2. What can be identified using a Primary Key? managed (a) Tables and indexes can be identified (d) Organized collection of data that cannot (b) Any file can be identified using a primary be updated key 7. What is DBMS? (c) Using the Primary Key, a specific file can (a) DBMS is a collection of queries be identified (d) None of these (b) DBMS is a high-level language 3. What is an audit trail? (c) DBMS is a programming language (a) It is the recorded history of operations performed on a file (d) DBMS stores, modifies and retrieves data (b) Recorded notes of Audit in a file (c) Recorded number of events 8. Who created the first DBMS? (d) None of these 4. What is a Row? (a) Edgar Frank Codd (a) Row is a single row or tuple represents (b) Charles Bachman all data required for a particular entity (c) Charles Babbage (b) It is all data required for a particular work (c) It is a single row or column in a programme (d) Sharon B. Codd (d) None of these 5. What is the full form of DBMS? 9. Which type of data can be stored in the database? (a) Data of Binary Management System (b) Database Management System (a) Image oriented data (c) Database Management Service (d) Data Backup Management System (b) Text, files containing data (c) Data in the form of audio or video (d) All of the above 10. In which of the following formats data is stored in the database management system? (a) Image (b) Text (c) Table (d) Graph 65

66 Accountancy—XII 11. Which of the following is not a type of data- (c) Collection of Tables base? (d) Collection of Fields (a) Hierarchical (b) Network 20. The values appearing in given attributes of any tuple in the referencing relation must (c) Distributed (d) Decentralized likewise occur in specified attributes of at least one tuple in the referenced relation, 12. Which of the following is not an example of according to .......... integrity constraint. DBMS? (a) MySQL (b) Microsoft Acess (a) Referential (b) Primary (c) IBM DB2 (d) Google (c) Referencing (d) Specific 13. Which of the following is a feature of the 21. .......... is a hardware component that is most database? important for the operation of a database management system. (a) No-backup for the data stored (b) User interface provided (a) Microphone (c) Lack of Authentication (b) High speed, large capacity disk to store data (d) Store data in multiple locations 14. Which of the following is not a function of (c) High-resolution video display the database? (d) Printer (a) Managing stored data 22. The ability to query data, as well as insert, (b) Manipulating data delete, and alter tuples, is offered by .......... . (c) Security for stored data (a) TCL (Transaction Control Language) (d) Analysing code (b) DCL (Data Control Language) 15. Which of the following is a function of the (c) DDL (Data Definition Langauge) DBMS? (d) DML (Data Manipulation Langauge) (a) Storing data 23. .......... is a set of one or more attributes taken (b) Providing multi-users access control collectively to uniquely identify a record. (c) Data Integrity (a) Primary Key (b) Foreign key (d) All of the above (c) Super key (d) Candidate key 16. Which of the following is a component of 24. Which command is used to remove a relation the DBMS? from an SQL? (a) Data (b) Data Languages (a) Drop table (b) Delete (c) Data Manager (d) All of the above (c) Purge (d) Remove 17. Which of the following is known as a set 25. Which of the following set should be associ- of entities of the same type that share same ated with weak entity set for weak entity to properties, or attributes? be meaningful? (a) Relation set (a) Neighbour set (b) Strong entity set (b) Tuples (c) Owner set (d) Identifying set (c) Entity set 26. Which of the following command is correct to delete the values in the relation teaches? (d) Entity Relation model 18. What is information about data called? (a) Delete from teaches; (a) Hyper data (b) Tera data (b) Delete from teaches where Id =’Null’; (c) Meta data (d) Relations (c) Remove table teaches; 19. What does an RDBMS consist of? (d) Drop table teaches; (a) Collection of Records (b) Collection of Keys

Accounting Using Database Management System (DBMS) 67 27. Procedural language among the following 34. After groups have been established, SQL is .......... . applies predicates in the .......... clause, allowing aggregate functions to be used. (a) Domain relational calculus (b) Tuple relational calculus (a) Where (b) Having (c) Relational algebra (c) Group by (d) With (d) Query language 35. Which of the following is not the utility of DBMS? 28. .......... operations do not preserve non- matched tuples. (i) Backup (ii) Loading (iii) Process Organi- zation (iv) File organization (a) Left outer join (b) Inner join (c) Natural join (d) Right outer join (a) (i), (ii), and (iv) only 29. Which forms have a relation that contains (b) (i), (ii) and (iii) only information about a single entity? (c) (i), (iii) and (iv) only (a) 4NF (b) 2NF (d) All (i), (ii), (iii), and (iv) (c) 5NF (d) 3NF 36. What does a foreign key combined with a primary key create? 30. The top level of the hierarchy consists of .......... each of which can contain .......... . (a) Network model between the tables that connect them (a) Schemas, Catalogs (b) Schemas, Environment (b) Parent-Child relationship between the tables that connects them (c) Environment, Schemas (c) One to many relationship between the (d) Catalogs, Schemas tables that connects them 31. .......... indicates the maximum number of (d) All of the mentioned entities that can be involved in a relationship. 37. Which of the following is correct according (a) Greater Entity Count to the technology deployed by DBMS? (b) Minimum cardinality (a) Pointers are used to maintain transac- tional integrity and consistency (c) Maximum cardinality (d) ERD (b) Cursors are used to maintain transac- tional integrity and consistency 32. The user IDs can be added or removed using which of the following fixed roles? (c) Locks are used to maintain transactional integrity and consistency (a) db_sysadmin (b) db_accessadmin (d) Triggers are used to maintain transac- tional integrity and consistency (c) db_securityadmin (d) db_setupadmin 38. Which of the following is correct regarding the file produced by a spreadsheet? 33. The traditional storage of data organized by the customer, stored in separate folders in (a) can be used as it is by the DBMS filing cabinets is an example of .......... type of ‘database’ management system. (b) stored on disk in an ASCII text format (a) Object-oriented database management (c) all of the mentioned system (d) none of the mentioned (b) Relational database management system 39. What is the function of the following command? (c) Network database management system Delete from r where P; (d) Hierarchical database management sys- tem (a) Clears entries from relation (b) Deletes relation

68 Accountancy—XII (c) Deletes particular tuple from relation 44. Which of the following is the subset of (d) All of the mentioned SQL commands used to manipulate Oracle 40. .......... resembles Create view. Structures, including tables? (a) Create table . . . as (a) Data Described Language (b) Create view as (c) Create table . . .like (b) Data Retrieval Language (d) With data 41. The query specifying the SQL view is said (c) Data Manipulation Language to be updatable if it meets which of the (d) Data Definition Language following conditions? 45. Which of the following functions construct (a) select clause contains relation attribute histograms and use buckets for ranking? names but not have expressions, aggre- gates, or distinct specification (a) Ntil() (b) from clause has 1 relation (b) Newtil() (c) query does not have group by or having (c) Rank() clause (d) All of the mentioned (d) All of the mentioned 42. When the “ROLLUP” operator for expression 46. .......... command is used in SQL to issue mul- or columns within a “GROUP BY” clause is tiple CREATE TABLE, CREATE VIEW and used? GRANT statements in a single transaction. (a) Find the groups that make up the subto- (a) CREATE CLUSTER tal in a row (b) CREATE PACKAGE (b) Create group-wise grand totals for the groups indicated in a GROUP BY clause (c) CREATE SCHEMA (c) Group expressions or columns specified (d) All of the mentioned in a GROUP BY clause in one direction, from right to left, for computing the 47. Which of the following key is required in subtotals to handle the data when the encryption is applied to the data so that the unauthorised (d) To produce a cross-tabular report for user cannot access the data? computing subtotals by grouping phrases or columns given within a GROUP BY (a) Primary key (b) Authorised key clause in all available directions (c) Encryption key (d) Decryption key 43. Which of the following is the best way to represent the attributes in a large db? 48. Which of the following is known as the process of viewing cross-tab with a fixed (a) Dot representation value of one attribute? (b) Concatenation (c) Relational-and (a) Dicing (d) All of the mentioned (b) Pivoting (c) Slicing (d) Both Pivoting and Dicing 49. For designing a normal RDBMS which of the following normal form is considered adequate? (a) 4NF (b) 3NF (c) 2NF (d) 5NF

Accounting Using Database Management System (DBMS) 69 CASE STUDIES Case Study 1 Read the given passage carefully and answer the questions. What is an SQL CREATE TABLE Statement? The CREATE TABLE statement is used to create tables to store data. The syntax for the CREATE TABLE statement is CREATE TABLE table_name ( col umn_namel datatype(size), column_name2 datatype(size), : column_nameN datatype(size) ); 1. CREATE TABLE defines a new table. 2. table_name is the name of the table. 3. column_namel, column_name2… are the names of the columns. 4. datatype is the datatype for the column like char, date, number, etc. 5. size is the size of column that a cell can hold. e.g. if you want to create the EMPLOYEE table, the statement would be like CREATE TABLE EMPLOYEE ( id INTEGER, name CHAR(20), dept CHAR(10), age INTEGER, salary INTEGER, location CHAR(10) ); Displaying a Table Structure If you have created a table in database, you may want to display its structure by using the DESC command. Syntax DESC <table_name>; or DESCRIBE <table_name>; e.g. DESC EMPLOYEE; will represent the tabular description of this table like field, type, key, etc. (i) What is CREATE TABLE? (ii) What is CREATE TABLE EMPLOYEE (a) defines a new table (a) If EMPLOYEE table is needed (b) define a new column (b) If EMPLOYEE chart is needed (c) defines a data type (c) If EMPLOYEE salary is needed (d) None of these (d) None of these

70 Accountancy—XII Case Study 2 Read the given passage carefully and answer the questions. SQL RENAME Statement The SQL RENAME statement is used to change the name of the table or a database object. Syntax To rename a table RENAME old_table_name To new_table_name; e.g. to change the name of the table EMPLOYEE to MY_EMPLOYEE, the query would be like RENAME EMPLOYEE To MY_EMPLOYEE; RENAME old_table_name To new_table_name (i) What is the above called? (ii) ‘SQL RENAME’— (a) Syntax to rename (b) Loop to rename What is the above called? (c) Row to rename (d) None of these (a) Statement (b) Loop (c) Syntax (d) None of these Case Study 3 Read the given passage carefully and answer the questions. I nserting Data into Table INSERT INTO statement is used to add a new row to a table and to insert data into table. Syntax INSERT INTO table_name (Columnl, Column2, Column 3---) VALUES (Value 1, Value 2, Value 3- - -); or INSERT INTO table name VALUES (Valuel, Value2, Value3, ...); With this syntax, only one row is inserted at a time. e.g. to insert record of new student into STUDENT_DETAILS table, you could use the following statement. INSERT INTO STUDENT_DETAILS (first_name, last_name, roll_No, class) VALUES (‘Ritika’, ‘Sheoran’, 45, 11); or INSERT INTO STUDENT_DETAILS VALUES (‘Ritika‘Sheoran’, 45,11); Inserting Rows with NULL Values To insert NULL value in a specific column, you can type NUL (i) ‘INSERT INTO’ (ii) Syntax INSERT INTO table_name What is this called? (column 1, Column 2, Column 3) (a) Statement (c) Syntax (b) Loop What is the above called? (d) None of these (a) Syntax (b) Statement (c) Loop (d) None of these

Answers PART A: ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS AND PARTNERSHIP FIRMS Unit I: Accounting for Not-for-Profit Organisations 1. (c) 2. (a) 3. (a) 4. (a) 5. (a) 6. (a) 7. (a) 8. (a) 9. (a) 10. (a) 11. (a) 12. (a) 13. (a) 14. (a) 15. (a) 16. (a) 17. (a) 18. (a) 19. (a) 20. (a) 21. (a) 22. (a) 23. (a) 24. (a) 25. (c) 26. (a) 27. (c) 28. (a) 29. (a) 30. (a) 31. (a) 32. (a) 33. (a) 34. (a) 35. (a) 36. (a) 37. (a) 38. (a) 39. (a) 40. (a) 41. (a) 42. (a) Case Study 1 (i) (a) (ii) (a) (iii) (a) (iv) (c) (v) (a) Case Study 2 (i) (a) (ii) (a) (iii) (a) (iv) (a) Case Study 3 (i) (a) (ii) (a) (iii) (a) (iv) (a) (v) (a) Unit II: Accounting for Partnership 1. (b) 2. (d) 3. (d) 4. (b) 5. (c) 6. (a) 7. (b) 8. (c) 9. (a) 10. (d) 11. (c) 12. (a) 13. (b) 14. (b) 15. (c) 16. (b) 17. (c) 18. (b) 19. (c) 20. (b) 21. (d) 22. (d) 23. (d) 24. (a) 25. (b) 26. (c) 27. (a) 28. (a) 29. (d) 30. (d) 31. (b) 32. (a) 33. (b) 34. (b) 35. (c) 36. (d) 37. (b) 38. (a) 39. (b) 40. (c) 41. (b) 42. (c) 43. (b) 44. (a) 45. (c) 46. (d) 47. (d) 48. (d) 49. (c) 50. (a) 51. (c) 52. (a) 53. (b) 54. (a) 55. (c) 56. (a) 57. (b) 58. (a) Case Study 1 (i) (b) (ii) (d) Case Study 2 (i) (d) (ii) (b) (iii) (a) Case Study 3 (i) (a) (ii) (d) Case Study 4 (i) (c) (ii) (b) (iii) (a) 74

Answers 75 Unit III: Reconstitution of Partnership 1. (a) 2. (a) 3. (b) 4. (b) 5. (b) 6. (d) 7. (a) 8. (d) 9. (a) 10. (b) 11. (a) 12. (c) 13. (c) 14. (a) 15. (b) 16. (b) 17. (b) 18. (b) 19. (a) 20. (b) 21. (b) 22. (a) 23 (c) 24. (c) 25. (b) 26. (d) 27. (c) 28. (b) 29. (d) 30. (b) 31. (a) 32. (a) 33. (a) 34. (c) 35. (c) 36. (a) 37. (a) 38. (c) 39. (b) 40. (a) 41. (c) 42. (a) 43. (a) 44. (a) 45. (a) 46. (a) 47. (b) 48. (c) 49. (b) 50. (c) 51. (a) 52. (d) 53. (d) 54. (a) 55. (a) 56. (c) 57. (c) 58. (c) 59. (d) 60. (c) 61. (b) 62. (c) 63. (b) 64. (c) 65. (b) 66. (b) 67. (b) 68. (a) 69. (a) 70. (a) 71. (d) 72. (a) 73. (a) 74. (b) 75. (b) 76. (b) 77. (c) 78. (c) 79. (b) 80. (a) 81. (a) 82. (a) Case Study 1 (i) (b) (ii) (a) Case Study 2 (i) (b) Case Study 3 (i) (d) Case Study 4 (i) (a) Case Study 5 Case Study 9 (i) (a) (ii) (b) 1. (a) 2. (a) 3. (a) Case Study 6 Case Study 10 (i) (a) (ii) (a) 1. (a) 2. (a) 3. (a) Case Study 7 Case Study 11 (i) (c) (ii) (a) (iii) (a) 1. (a) 2. (a) 3. (a) Case Study 8 1. (a) 2. (a) 3. (a) Unit IV: Dissolution of Partnership Firm 1. (c) 2. (d) 3. (b) 4. (d) 5. (c) 6. (a) 7. (b) 8. (c) 9. (c) 10. (a) 11. (c) 12. (b) 13. (c) 14. (a) 15. (c) 16. (a) 17. (a) 18. (a) 19. (a) 20. (a) 21. (a) 22. (c) 23. (a) 24. (a) 25. (c) 26. (a) 27. (a) 28. (c) 29. (b) 30. (a) 31. (a) 32. (a) 33. (c) 34. (a) Case Study 1 Case Study 4 1. (a) 2. (a) (i) (a) Case Study 2 Case Study 5 1. (a) 2. (c) 3. (a) (i) (a) (ii) (a) (iii) (a) (iv) (a) Case Study 3 (i) (a) (ii) (a) (iii) (A) (a) (B) (a)

76 Accountancy—XII PART B: COMPANY ACCOUNTS AND FINANCIAL STATEMENT ANALYSIS Unit V: Accounting for Share and Debenture Capital 1. (b) 2. (b) 3. (a) 4. (d) 5. (b) 6. (c) 7. (a) 8. (a) 9. (b) 10. (a) 11. (c) 12. (b) 13. (b) 14. (c) 15. (d) 16. (b) 17. (a) 18. (c) 19. (b) 20. (c) 21. (a) 22. (c) 23. (c) 24. (c) 25. (a) 26. (c) 27. (a) 28. (c) 29. (a) 30. (c) 31. (a) 32. (c) 33. (c) 34. (b) 35. (c) 36. (d) 37. (d) 38. (d) 39. (b) 40. (c) 41. (a) 42. (c) 43. (d) 44. (d) 45. (b) 46. (b) 47. (b) 48. (d) 49. (c) 50. (d) 51. (a) 52. (d) 53. (c) 54. (c) 55. (d) 56. (a) 57. (d) 58. (b) 59. (c) 60. (b) 61. (c) Case Study 1 (i) (a) (ii) (b) (iii) (c) (iv) (d) (v) (d) Case Study 2 (i) (a) (ii) (b) Case Study 3 (i) (b) (ii) (a) Case Study 4 (i) (a) (ii) (c) Case Study 5 (i) (a) (ii) (a) Unit VI: Analysis of Financial Statements 1. (d) 2. (a) 3. (a) 4. (a) 5. (c) 6. (c) 7. (c) 8. (a) 9. (a) 10. (a) 11. (c) 12. (a) 13. (a) 14. (a) 15. (b) 16. (c) 17. (a) 18. (a) 19. (a) 20. (d) 21. (a) 22. (a) 23. (a) 24. (a) 25. (a) 26. (a) 27. (d) 28. (a) 29. (b) 30. (d) 31. (a) 32. (c) 33. (d) 34. (c) 35. (c) 36. (c) 37. (d) 38. (b) 39. (b) 40. (b) 41. (c) 42. (d) 43. (d) 44. (d) 45. (b) 46. (b) 47. (c) 48. (d) 49. (d) 50. (b) 51. (d) 52. (d) 53. (b) 54. (c) 55. (c) 56. (d) 57. (a) 58. (b) 59. (a) 60. (b) 61. (d) 62. (c) 63. (b) 64. (a) 65. (c) 66. (c) 67. (c) 68. (b) 69. (b) 70. (c) 71. (a) 72. (b) 73. (b) 74. (b) 75. (b) 76. (a) 77. (d) 78. (b) 79. (c) 80. (b) 81. (a) 82. (b) 83. (c) 84. (a) 85. (d) 86. (b) 87. (c) 88. (b) 89. (d) 90. (a) 91. (d) 92. (c) 93. (d) 94. (b) 95. (c) 96. (b) 97. (c) 98. (b) 99. (a) 100. (d) 101. (d) 102. (b) Case Study 1 (i) (c) (ii) (b) (iii) (c) Case Study 2 (i) (a) (ii) (d) (iii) (b) (iv) (a) (v) (b) Case Study 3 (i) (d) (ii) (a) (iii) (d) (iv) (a)

Answers 77 Unit VII: Statement of Changes in Financial Position 1. (a) 2. (c) 3. (a) 4. (b) 5. (a) 6. (d) 7. (c) 8. (c) 9. (b) 10. (b) 11. (c) 12. (c) 13. (c) 14. (a) 15. (a) 16. (a) 17. (d) 18. (a) 19. (b) 20. (d) 21. (a) 22. (b) 23. (a) 24. (a) 25. (b) 26. (d) 27. (a) 28. (d) 29. (a) 30. (d) 31. (a) 32. (d) 33. (b) 34. (b) 35. (c) Case Study 1 (i) (a) (ii) (a) (iii) (a) (iv) (a) Case Study 2 (i) (a) (ii) (a) (iii) (a) PART C: COMPUTERISED ACCOUNTING SYSTEM Unit I: Overview of Computerised Accounting System 1. (c) 2. (c) 3. (d) 4. (a) 5. (b) 6. (a) 7. (d) 8. (d) 9. (e) 10. (b) 11. (a) 12. (d) 13. (c) 14. (d) 15. (a) 16. (c) 17. (d) 18. (a) 19. (d) 20. (c) Case Study 1 (i) (a) (ii) (a) Unit II: Using Computerised Accounting System 1. (a) 2. (a) 3. (a) 4. (a) 5. (a) 6. (a) 7. (a) 8. (a) 9. (a) 10. (c) 11. (a) 12. (a) 13. (a) 14. (a) 15. (a) 16. (a) 17. (a) 18. (a) 19. (a) 20. (a) 21. (a) 22. (a) 23. (a) 24. (a) 25. (a) Case Study 1 (i) (a) (ii) (a) Unit III: Accounting Using Database Management System (DBMS) 1. (a) 2. (c) 3. (a) 4. (a) 5. (b) 6. (c) 7. (d) 8. (b) 9. (d) 10. (c) 11. (d) 12. (d) 13. (b) 14. (d) 15. (d) 16. (d) 17. (c) 18. (c) 19. (c) 20. (a) 21. (b) 22. (d) 23. (c) 24. (a) 25. (d) 26. (a) 27. (c) 28. (b) 29. (a) 30. (d) 31. (c) 32. (b) 33. (d) 34. (d) 35. (a) 36. (a) 37. (c) 38. (a) 39. (c) 40. (a) 41. (d) 42. (c) 43. (b) 44. (d) 45. (a) 46. (c) 47. (d) 48. (c) 49. (b) Case Study 1 Case Study 3 (i) (a) (ii) (a) (i) (a) (ii) (a) Case Study 2 (i) (a) (ii) (a) Unit IV: Accounting Applications of Electronic Spreadsheet 1. (a) 2. (d) 3. (c) 4. (b) 5. (a) 6. (b) 7. (a) 8. (b) 9. (d) 10. (d) 11. (b) 12. (b) 13. (b) 14. (d) 15. (c) 16. (a) 17. (c) 18. (d) 19. (c) 20. (b) 21. (b) 22. (c) 23. (c) 24. (a) 25. (a) 26. (c) 27. (a) 28. (c) 29. (d) 30. (b) 31. (c) 32. (b) 33. (d) 34. (d) 35. (b) 36. (c) 37. (d) 38. (d) 39. (b) 40. (a) 41. (a) 42. (a) 43. (b) Case Study 1. (b) 2. (b) 3. (b) 4. (d)

Mock Test Paper –1 M-1 Mock Test Paper –1 1. Not-for-profit organisations work: (a) Profits are not equal (a) Specifically for a lumpsum profit motive (b) Profits are in increasing trend (b) Specifically for industries (c) Profits are in decreasing trend (c) For providing services to people and (d) Either (b) or (c) not for earning profits 8. What type of account is a Revaluation A/c? (d) None of these (a) Real A/c (b) Nominal A/c 2. Any profit on sale of fixed assets appears (c) Personal A/c (d) Suspense A/c on the ............. side of the Income and Expenditure Account. 9. The following particulars are available in respect of the business carried on by (a) Income (b) Expenditure a partnership firm. Profits and Loss are as follows: 2010 (loss) ` 5,000; 2011 (loss) (c) Assets (d) None of these ` 10,000; 2012 (profit) ` 75,000; 2013 (profit) ` 60,000. Compute the goodwill on the basis 3. State the basis of accounting while preparing of 5 years’ purchase of average profit of ‘Income and Expenditure’Account of a Not- business. for-Profit organisation? (a) Accrual Basis (b) Cash Basis (a) ` 1,25,000 (b) ` 1,50,000 (c) Credit Basis (d) None of these (c) ` 10,000 (d) ` 1,20,000 4. How is Donation Received for a special 10. In the absence of special provisions in the purpose treated? partnership deed what is the rate of interest on capital of the partners? (a) Donation received for a special purpose is treated as a Capital Receipt (a) @ 8% (b) @ 10% (b) It is treated as a Capital Expenditure (c) @ 6% (d) Nil (c) It is treated as a Capital gain 11. A retiring partner is entitled to ............. . (d) None of these 5. What name is used for profits for not-for- (a) share of goodwill profit organisations? (b) revaluation profit and other reserve (c) balance in capital/current account (a) Surplus (b) Gain (c) Payments (d) None of these (d) all of the above 12. Increase in liability at the time of retirement 6. Which of these terms is true in respect to goodwill? of a partner is ............. . (a) Current Assets (b) Intangible Assets (a) Credited to Revaluation A/c (c) Tangible Assets (d) Fictitious Assets (b) Debited to Revaluation A/c (c) Debited to Profit and Loss A/c 7. Weighted average method of calculating goodwill which is used when: (d) Debited to Goodwill A/c M-1

M-2 Accountancy 13. Which of these is not a method of accounting (b) outstanding expenses treatment of premium of Joint Life Policy? (c) payment of liabilities (a) Treatment as an Expense (d) none of these (b) Treatment as an Asset 20. On Dissolution of a firm, a partner paid (c) Deferred Revenue Expenditure ` 700 for the firm's realisation expenses. (d) None of the above Which Account will be debited? 14. A and B are partners sharing profits in the (a) Realisation A/c ratio of 5 : 4. They admit C for 1/10th share, (b) Cash A/c which he acquires in equal proportion from (c) Profit and loss A/c both. Find the new profit sharing ratio. (d) None of these (a) 9 : 17 : 18 (b) 91 : 71 : 18 21. Premium on redemption of debentures is generally provided at the time of: (c) 91 : 72 : 19 (d) None of these 15. Asha and Nisha are partners sharing profits (a) Issue of Debentures in the ratio of 2:1. Asha’s son Ashish was (b) Redemption of Debentures (c) Every year admitted for 1/4th share of which 1/8th was gifted by Asha to her son. The remaining (d) After 10 years 22. Application money should not be less than was contributed by Nisha. Goodwill of ............. of the face value of shares. the firm is valued at ` 40,000. How much of the goodwill will be credited to the old partner’s capital account. (a) 25% (b) 20% (a) ` 2,500 each (b) ` 5,000 each (c) 30% (d) none of these (c) ` 20,000 each (d) ` None of these 23. Debentures which are secured by a change 16. Unrecorded assets when taken over by a upon some or all assets of a company are partner are shown in: known as: (a) Debit of Realisation Account (a) first mortgage debentures (b) Debit of Bank Account (b) second mortgage debentures (c) Credit of Realisation Account (c) bearer debentures (d) Credit of Bank Account (d) secured debentures 17. On dissolution all assets are transferred to 24. In India companies are governed by: Realisation Account at their: (a) Indian Partnership Act, 1932 (a) Book Value (b) The Companies Act, 2013 (b) Market Value (c) Securities Registration Act (c) Realized Value (d) Cost or market price whichever is less (d) All of the above 18. On dissolution of a firm, cash in hand is 25. Dividends are usually paid as a percentage transferred to: of: (a) Authorized Share Capital (a) Cash Account (b) Paid up Capital (c) Net Profit (b) Realisation Account (d) Called up Capital (c) Creditor’s Account 26. Tangible assets of a company increased (d) Partner’s Capital Accounts from ` 4,00,000 to ` 5,00,000. What is the 19. If no information is provided in regard to percentage of change? liabilities, ............... is always made in full. (a) 25% (b) 40% (a) payment of assets (c) 45% (d) None of these

Mock Test Paper –1 M-3 27. In a common-size Balance Sheet, total equity (c) Conventional Processing Unit and liabilities are assumed to be equal to: (d) None of these (a) 1,000 (b) 100 35. There are three .......... in a data base: Physical level, Logical level and View level. (c) 1 (d) None of these 28. Sales less cost of goods sold is called (a) levels of abstractions (a) Gross Profit (b) Net Profit (b) levels of allocation (c) Operating Profit (d) None of these (c) levels of accounting information 29. ............... ratios are a measure of the speed (d) none of these with which various accounts are converted into sales or cash. 36. A .......... is an accounting information system that processes the financial transactions (a) Activity (b) Liquidity and events as per Generally Accepted Accounting Principles (GAAP) to produce (c) Debt (d) Profitability reports as per user requirements. 30. ABC Co. extends credit terms of 45 days to (a) computerized accounting system its customers. Its credit collection would be considered poor if its average collection (b) codification of accounts period was: (c) Tailor-made software system (a) 30 days (b) 36 days (d) none of these (c) 47 days (d) 57 days 37. What is the full form of DBMS? 31. If net profit is ` 50,000 after writing off (a) Data of Binary Management System goodwill ` 10,000 then the cash flow from (b) Database Management System operating activities will be: (c) Database Management Service (a) ` 60,000 (b) ` 40,000 (d) Data Backup Management System (c) ` 50,000 (d) ` 30,000 38. Which forms have a relation that contains information about a single entity? 32. Cash flow statement according to AS-3 is mandatory to: (a) 4NF (b) 2NF (a) All enterprises (c) 5NF (d) 3NF (b) Companies listed on a stock exchange 39. What is the function of the following command? (c) Enterprises having turnover expending 50 ` crore Delete from r where P; (d) Both (b) & (c) (a) Clears entries from relation 33. COBOL, BASIC, FORTRAN, C, C+ +, JAVA (b) Deletes relation are examples of: (c) Deletes particular tuple from relation (a) High-level programming languages (d) All of the mentioned (b) Low-level machine language 40. Computer spreadsheet cell that is highlighted (c) Assembly language with heavy border is: (d) Application software (a) Active cell (b) Passive cell 34. What is the full name for CPU? (c) Locked cell (d) Formatted cell (a) Central Processing Unit (b) Control Processing Unit

M-4 Accountancy Read the given extract/source/passage carefully and answer the questions that follow: Receipts & Payments Account Dr. for the year ended 31st March, 2019 Cr. Amount Receipts Amount Payments (`) (`) To Sale of Sports Materials By Creditors for Sports Materials 3,00,000 80,000  (Book Value 1,10,000) 1,37,000  (Payment made) By Cash Purchase of Sports Materials Additional Information: Stock of sports material As at 31st March, 2018 (`) As at 31st March, 2019 (`) Creditors for sports material 1,20,000 1,50,000 45,000 60,000 41. According to the information provided 44. What is the amount of sports material what is the amount of payment made for which is to be debited of the Income and sports materials? expenditure Account? (a) ` 3,00,000 (b) ` 6,00,000 (a) ` 2,55,000 (b) ` 3,55,000 (c) ` 4,00,000 (d) ` 5,00,000 (c) ` 1,55,000 (d) ` 2,00,000 42. How much was the amount of creditors for 45. How much is the amount of stock of sports sports materials in the beginning? materials which is to be shown on the assets side of the Balance Sheet as on 31st March (a) ` 45,000 (b) ` 35,000 2019? (c) ` 70,000 (d) ` 30,000 (a) ` 1,50,000 (b) ` 2,50,000 43. What was the total purchases of sports (c) ` 3,50,000 (d) ` 3,00,000 materials? (a) ` 3,95,000 (b) ` 4,95,000 (c) ` 2,95,000 (d) ` 1,95,000 Read the given passage carefully and answer the questions. Sterling enterprises is a partnership firm with Ryan, Williams and Sania as partners engaged in the production and sale of electrical items and equipment. Their capital contributions were ` 50,00,000, ` 50,00,000 and ` 80,00,000, respectively with the profit the sharing ratio of 5 : 5 : 8. As they are now looking forward to expand their business, it was decided that they would bring in sufficient cash to double their respective capitals. This was duly followed by Ryan and Williams but due to unavoidable reasons Sania could not do so and ultimately, it was agreed that to bridge the shortfall in the required capital a new partner should be admitted who would bring in the amount that Sania could not bring and that the new partner would get share of profits equal to half of Sania's share which would be sacrificed by Sania only. Consequent to this agreement Ejaz was admitted and he brought in the required capital and ` 30,00,000 as premium for goodwill.

Mock Test Paper –1 M-5 46. What will be the new profit-sharing ratio of 48. What is the value of the goodwill of the Ryan, Williams, Sania and Ejaz? firm? (a) 1 : 1 : 1 : 1 (b) 5 : 5 : 5 : 8 (a) ` 1,35,000 (b) ` 30,00,000 (c) 5 : 5 : 4 : 4 (d) None of the above (c) ` 1,50,00,000 47. What is the amount of capital brought in by (d) Cannot be determined from the given the new partner Ejaz? data. (a) ` 50,00,000 (b) ` 80,00,000 (c) ` 40,00,000 (d) ` 30,00,000 Read the given passage carefully and answer the questions. Visit a commercial organisation where the accounting is performed manually. Observe the various accounting activities. Now discuss the advantage and disadvantages which would have accrued, had the accounting being performed through computers. 49. State two advantages of computerized 50. List any two disadvantages of computerized accounting: accounting. (a) MIS reports and storage (a) Cost of training and system failure (b) MIS reports and sale (b) Cost of training and database (c) MIS reports and staff opposition (d) None of these implementation (c) Cost of training and sequence of actions (d) None of these

Answers Mock Test Paper–1 1. (c) 2. (a) 3. (a) 4. (a) 5. (a) 6. (b) 7. (d) 8. (b) 9. (b) 10. (d) 11. (d) 12. (b) 13. (c) 14. (b) 15. (b) 16. (c) 17. (a) 18. (a) 19. (c) 20. (a) 21. (a) 22. (a) 23. (d) 24. (b) 25. (c) 26. (a) 27. (b) 28. (a) 29. (a) 30. (c) 31. (a) 32. (d) 33. (a) 34. (a) 35. (a) 36. (a) 37. (b) 38. (a) 39. (c) 40. (a) 41. (a) 42. (a) 43. (a) 44. (a) 45. (a) 46. (c) 47. (b) 48. (a) 49. (a) 50. (a) Mock Test Paper–2 1. (a) 2. (a) 3. (a) 4. (a) 5. (a) 6. (d) 7. (c) 8. (d) 9. (c) 10. (d) 11. (a) 12. (a) 13. (b) 14. (a) 15. (a) 16. (a) 17. (c) 18. (c) 19. (d) 20. (c) 21. (c) 22. (d) 23. (b) 24. (c) 25. (a) 26. (a) 27. (c) 28. (d) 29. (d) 30. (b) 31. (b) 32. (d) 33. (a) 34. (a) 35. (c) 36. (d) 37. (d) 38. (b) 39. (b) 40. (b) 41. (a) 42. (a) 43. (a) 44. (a) 45. (c) 46. (a) 47. (b) 48. (a) 49. (b) 50. (a) Mock Test Paper–3 1. (a) 2. (a) 3. (a) 4. (a) 5. (a) 6. (d) 7. (a) 8. (d) 9. (a) 10. (d) 11. (a) 12. (a) 13. (a) 14. (a) 15. (c) 16. (b) 17. (b) 18. (a) 19. (a) 20. (a) 21. (b) 22. (c) 23. (a) 24. (a) 25. (c) 26. (a) 27. (b) 28. (d) 29. (a) 30. (b) 31. (a) 32. (a) 33. (a) 34. (d) 35. (c) 36. (c) 37. (b) 38. (a) 39. (a) 40. (b) 41. (a) 42. (a) 43. (a) 44. (a) 45. (a) 46. (d) 47. (b) 48. (a) 49. (c) 50. (a) Mock Test Paper–4 1. (a) 2. (a) 3. (a) 4. (a) 5. (a) 6. (b) 7. (b) 8. (d) 9. (a) 10. (c) 11. (c) 12. (a) 13. (a) 14. (b) 15. (b) 16. (c) 17. (c) 18. (a) 19. (c) 20. (b) 21. (c) 22. (d) 23. (b) 24. (d) 25. (b) 26. (a) 27. (b) 28. (a) 29. (d) 30. (c) 31. (b) 32. (c) 33. (a) 34. (c) 35. (a) 36. (d) 37. (b) 38. (b) 39. (c) 40. (c) 41. (a) 42. (b) 43. (a) 44. (a) 45. (a) 46. (a) 47. (a) 48. (b) 49. (c) 50. (d) Mock Test Paper–5 1. (a) 2. (a) 3. (a) 4. (a) 5. (a) 6. (c) 7. (b) 8. (a) 9. (d) 10. (a) 11. (c) 12. (c) 13. (a) 14. (c) 15. (a) 16. (c) 17. (a) 18. (a) 19. (a) 20. (c) 21. (b) 22. (d) 23. (b) 24. (b) 25. (a) 26. (c) 27. (b) 28. (a) 29. (c) 30. (a) 31. (a) 32. (d) 33. (a) 34. (d) 35. (a) 36. (b) 37. (c) 38. (b) 39. (c) 40. (b) 41. (a) 42. (a) 43. (a) 44. (a) 45. (a) 46. (a) 47. (a) 48. (a) 49. (b) 50. (d)