GENERAL STUDIES QUESTIONS CLASS-XII(ACCOUNTANCY) Q1.

Name the entry which effects both the cash and bank column of a cash book ?
Ans. Contra entry Q2. Name the ratio which is calculated at the time of retirement of a partner? Ans.Gaining Ratio Q3. Name the two types of goodwill Ans. (i)Purchased goodwill (ii) Self generated goodwill Q4. How do you treat legacy while preparing accounts of not for profit organizations? Ans. Liability Q5. Which type of ratios are calculated to judge the short term solvency of a company Ans. liquidity ratios Q6. What is the nature of income and expenditure account . Ans. Nominal Account. Q7. Name the account which is prepared to allocate the profits earned by the business among partners. Ans. Profit and Loss Appropriation Account . Q8. Under which accounting standard is Cash Flow statement prepared ? Ans. Accounting Standard 3. Q9. At what rate is the interest on calls in advance provided ? Ans. 6%p.a. Q10. Where is the balance of debenture redemption reserve transferred after the debentures are redeemed ? Ans. General Reserve. Q11. What can be the maximum number of people in Banking business ? Ans. 10 Q12. Under which schedule of the companies act 1956 the balance sheet of a company is prepared ? Ans. Schedule 6 Q13. State the two methods of maintaining capital accounts of a partner. Ans. (i) Fixed capital method (ii) Fluctuating capital method Q14.Why is Revaluation account prepared Ans. The Revaluation account is prepared to revalue the assets and liabilities at the time of reconstitution of a firm. Q15. Name the account in which the amount due to a deceased partner is transferred from his capital account. Ans. Deceased partners Executors account Q16. What is meant by Authorised share capital of a company . Ans. It is the maximum amount to which a company can issue shares. Q17. State any two purpose for which securities premium can be utilized . Ans. (i) Issuing fully paid bonus shares (ii) Writing off preliminary expenses.

Q18. Name the methods for redemption of debentures. Ans. (i) On maturity in lump sum (ii) Installments by draw of lots (iii) By purchase in the open market (iv) By conversion into new debentures or shares. Q19. Name the various tools or techniques of Financial statement analysis. Ans. Comparative statements ,Common size statements , Trend percentages, Ratio analysis, Fund flow statement, Cash flow statement. Q20. State any two limitations of financial statement analysis Ans. (i) Qualitative aspect is ignored (ii) Variations in accounting practices.