Class 12th Account short type questions

 

Sanjeev Edupoint

With the help of these NCERT Solutions  you can easily grasp basic concepts better and faster. 

Click on my you tube channel Sanjeev Sukrail

Accounts short type Questions and Answers

1.    What are sweat equity shares?

Ans: These are equity shares issued by the company to its employees or directors at a discount or for consideration other than cash. These shares are issued for providing following service to company:

·        For providing know how.

·        For making available the right in the nature of intellectual property rights.

2.    Difference between sacrificing ratio and new profit sharing ratio.

Ans: Sacrificing ratio: It is the ratio in which the old partners sacrifice their share of profit in favour of the incoming partner.

New profit ratio: It is the ratio in which the remaining partners will share future profits after retirement or death

3.    Difference between call in arrears and call in advance.

Ans: Call in arrears: It is amount which defaulter shareholders have not paid on the amount called up by the company.

Call in advance: it is amount which is received in advance before the amount is due from shareholders.

4.    What is profit and loss appropriation account?

Ans: This account is an extension of profit and loss account. It is a temporary account by nature, it is a nominal account. It is used for allocation and distribution of net profits among partners of the firm

5.    What is realisation account?

Ans: It is nominal account opened on the dissolution of a firm with main object to ascertain the profit or loss on realisation of assets and payment of outsider’s liabilities. This account is preparing to close the books of firm at the time of dissolution. This account is closed by transferring the balance to partner’s capital account. No cash and bank balance transferred to realisation account.

6.    What is debenture redemption reserve(DRR)? When does a company create debenture redemption reserve?

Ans: DRR is reserve created out of profit available for dividend for the purpose of redemption of debenture.

It is created when debenture have to be redeemed out of profits. It is created before the redemption of debentures. As per the provision of the companies’ act 2013, the companies should create DRR for at least 25% of the nominal value.

7.    What are different modes of dissolution of partnership firm with or without the interference of court?

Ans: Different modes of dissolution of partnership firm are:

 Without the intervention of  the court;

·        When all partners agree to dissolve the firm or give consent to dissolved the firm in accordance with the contract among the partners.

·        When partners of the firm become insolvent or when business of the firm becomes unlawful.

·        On the insolvency of a partner, on the fulfilment of the objective of the firm for which the firm was formed and on the expiry of the period for which the firm was formed.

b)  Dissolution of firm by court;

·        When partner has become of unsound mind

·        When partner has become permanently incapable of performing his duties.

·        When the court is satisfied that the partnership firm cannot be carried on except at loss

·        When the court finds that the dissolution of firm is justified and equitable

8.    What is adjusting entries?

Ans: It is recorded to relate the figures to the trading period.

For example: if a room is sublet on March 30 and three rent is received in advance amounting to Rs 12000. Then two months advance rent is adjusted as

Rent account Dr

   To advance rent account

9.    Explain transparency control and Scalability as features of computerized accounting system?

Ans: Transparency control provides sufficient time to plan, increases data accessibility and enhances user satisfaction. With computerised accounting, the organisation will have greater transparency for day to day business operations and access to the vital information

Scalability CAS enables in changing the volume of data processing in tune with the change in the size the business and type of the organisation

10.           What is fixed capital account?

Ans: it is the capital invested by each partner in the firm remains fixed or unaltered, unless a partner introduces additional capital or withdraws out of his or her capital.

11.           What is a pro-rata allotment share?

Ans: when a public issue made by a company is over subscribed, the problem of allotment of shares arises. The company cannot allot the shares applied for by the public. The directors of company, therefore in consultation with stock exchange allot shares to all applicants proportionately

12.           Discuss the contents of partnership Deed?

Ans: Partnership deed is a legal document signed by all partners and has clauses on the following:

·        Name, description and addresses of the partners.

·        Name and address of the firm.

·        Capital contribution, Interest on capital, interest on Drawing, profit sharing ratio and remuneration to partners.

13.           Name methods of Goodwill valuation?

Ans: The various methods of goodwill valuation are:

·        Average profit method

·        Weighted average profit method

·        Super profit method

·        Capitalization of super profit and average profit

14.           Distinguished between over subscription and under subscription of shares?

Ans:

Over Subscription	Under Subscription
Number of shares applied is more than the shares offered for subscription. All applications are not accepted. Some are rejected	Number of shares applied is less than the shares offered for subscription. All the applications for shares are accepted

15.           Write a short note on Dissolution of firm?

Ans: Dissolution of firm means termination of partnership among all partners of the firm. When firm is dissolved, the business of. the firm terminates. All the assets of the firm are disposed off and all liabilities are paid. All economic relationship between the parties came to an end.

Remaining on Next page