Wednesday, February 28, 2018

AHSEC CLASS 12: ACCOUNTANCY QUESTION BANK (THEORY PART)

AHSEC – CLASS 12: ACCOUNTANCY QUESTION BANK (THEORY)
(MORE THAN 75 MARKS EXPECTED FROM THEORY SECTION)
ACCOUNTING FOR NOT FOR PROFIT ORGANISATION (5 MARKS)
SHORT AND LONG ANSWER TYPE QUESTIONS
1.       Briefly explain with example the Trading concerns having profit motive and Non Trading concerns (NPO) having service motive. Also distinguish between them.
2.       Mention five features of a Non Trading Organization. Mention the financial statements of NPO.
3.       What is receipts and payments account and Income and expenditure account?
4.       Mention five features of Receipts and Payments Account and Income and Expenditure account.
5.       Give five points of distinction between Receipts and Payments Account and an Income and Expenditure Account. (Features can be expressed as differences)
6.       How following items are treated at the time of preparing Income and Expenditure Account - Sale of old fixed assets, Legacy, Sale of sports materials, Sale of old news papers, Entrance Fees, endowment fund, general and specific donation.
7.       Write objectives and limitations of preparation of Receipts and Payments Account.
8.       Define deferred revenue expenditure. Give two special features of deferred revenue expenditure.             
9.       What is fund based and non-fund based accounting? Distinguish between them.
10.   What is capital fund and incidental trading activities?
Accounting for Partnership Firms – Basics (3 TO 5 MARKS)

Q.1. Define Partnership, Partner and Firm. What are its features?
Q.2. Mention two rights and Liabilities of Partners.
Q.3. What is Partnership Deed? What are its contents? Mention the rules to be followed in the absence of partnership deed.
Q.4. Distinguish between fixed and fluctuating capital. Mention the circumstances where fixed capital is changed.
Q.5. What is profit and loss appropriation account? Why it is prepared. Mention the adjustment entries for p/l appropriation account.
Q.6. What do you mean by guarantee of profit, current account of partners, JLP and Hidden goodwill? 2Marks each
Q.7. What is a Joint Venture? State four points of similarities and distinction between Joint Venture and a partnership.
Q. 8. Mention the circumstances where partner’s capital account does not show a debit balance in spite of regular loss.
Q.9. Distinguish between Profit and loss account and Profit and loss appropriation account.
Valuation of Goodwill (3 MARKS)
Q.1. What is Goodwill? Explain its nature.
Q.2. Why Goodwill is valued? Mention the situation when valuation of goodwill become necessary.
Q.3. What is Hidden goodwill? Mention the factors affecting goodwill of a Partnership Firms.
Q.4. Explain three methods for valuation of goodwill.
Q.5. What are various types of goodwill?
Admission, Retirement and Death of a Partner  (15 MARKS)
Q.1. What do you mean by “reconstitution of a firm”? Mention the situations when such reconstitution of firm takes place.
Q.2. Why a new partner is admitted? Mention its right.
Q.3. What is sacrificing and gaining ratio? Distinguish between them.
Q.4. Why assets and liabilities are valued? Mention the circumstances when a revaluation of assets and liabilities becomes necessary.
Q.5. What is revaluation account? Distinguish between Revaluation account and Memorandum Revaluation account. Pass necessary revaluation entries.
Q.6. What do you mean by retirement of a partner? Why a partner is retired? Mention two methods for retirement.
Q.7. How the amount due to retiring partner is calculated?
Q.8. How the amount due to executor’s of deceased is calculated?
Q.9. Mention the provisions of Sec.37 in case of death of a partner.
Q.10. How the profit upto date of death of a partner is calculated?
Q.11. Define in two lines: Hidden goodwill, super profit,  memorandum revaluation account, Joint life policy, Surrender value.
Dissolution of partnership (8 MARKS)
Q.1. What is dissolution of partnership and dissolution of partnership firms? Distinguish between them.
Q.2. What is realisation account? Distinguish between realisation and revaluation account.
Q.3. How Accounts are settled in case of dissolution of partnership?
Q.4. Write short note on liability of partners after dissolution. Mention the treatment of private debt and firm debt.
Q.5. Mention various modes for dissolution of partnership:
a)      Compulsory dissolution
b)      Dissolution of partnership at will
c)       Dissolution by the court
d)      Dissolution on the happening of certain events
Issue of shares and share capital ( 13 MARKS)
Q.1. What is a Joint Stock Company? Mention their four features. Write two advantages and disadvantages of Joint stock company.
Q.2. What are various types of shares?  Mention three important features of each. Distinguish between equity shares and preference shares.
Q.3. What do you mean by issue of shares at a premium? Mention the purposes for which securities premium can be utilized.
Q.4. What do you mean by issue of shares at a discount? What are the conditions for issue of shares at a discount?
Q.5. Mention 5 statutory books and statistical books of a company.
Q.6. What do you mean by “Forfeiture of Shares” and “Re-issue of forfeited shares? Discuss the procedure of forfeiture of shares.
Q.7. What are various types of capital? Explain them briefly.
Q.8. What are various types of companies?
Q.9. Distinguish between:
Ø  Partnership and Joint Stock Company
Ø  Public Company and Private Company
Ø  Capital reserve and reserve capital
Q.10. Define in two line: Minimum subscription, over-subscription and under- subscription, Issue of shares for consideration other than cash, preliminary expenses, Buy back of shares, issue of shares at par – at premium and at discount.
Issue and Redemption of Debentures (13 MARKS)
Q.1. What is debentures? Mention its 4 features. Write three advantages and disadvantages of it.
Q.2. Mention various types of Debentures.
Q.3. What do you mean by “issue of debentures as collateral security”? Explain its accounting treatment.
Q.4. Distinguish between Shares and Debentures.
Q.5. What is sinking fund? How it is created?
Q.6. What do you mean by “Discount on issue of shares” and “Loss on issue of debentures”? Explain their treatment.
Q.7. What do you mean by Redemption of debentures? Explain various methods for redemption of debentures.
Q.8. What do you mean by purchasing own debentures in open market? Explain its accounting treatment.
Financial Statement and Financial Statement analysis (15 MARKS)
Q. 1. What are financial statements? What constitute financial statements? What are its essential features?
Q.2. Mention the objectives of financial statements(2)? List out the external and internal users of financial statement and financial statement analysis.
Q.3. What are uses and importance of financial statements? Mention five limitations of financial statements.
Q.4. What is financial statements analysis? Discuss its importance and limitations. (5 points only)
Q.5. What are various types of financial analysis? Mention them.
Q.6. What are various tools and techniques of financial analysis (Comparative Statements, Common size and Trend analysis)? Explain them with their respective merits and demerits. (2 points only)
Q.7. What is contingent liabilities? Give some examples.
Q.8. Draft a format of Company’s Balance sheet and Income Statement. (Major headings and their elements)
Q.9. Distinguish between Company’s Balance sheet and Partnership firm’s balance sheet.
Q.10. What are the various information provided by financial statements?
Ratio Analysis (3 MARKS)
Q.1. What is ratio analysis? What are its objectives?
Q.2. Explain the importance and limitations of Ratio analysis.
Q.3. Mention various types of accounting ratios. Give some examples of Liquidity Ratios, Solvency Ratios, Activity (Turnover) Ratios and Profitability Ratios.
Q.4. What is short term and long term solvency ratio?
Cash Flow Statement (5 MARKS)
Q.1. What is Cash flow statement according to AS - 3? What are its need and objectives?
Q.2. Mention some features of cash flow statement.
Q.3. Mention five limitations of cash flow statement.

Q.4. Mention three examples of cash flow from operating activities, investing activities and financing activities.