This file contains Sample Questions For Accountancy Practical for students of Commerce.

1. (For Free Circulation to any teacher or student of Commerce)
12th Accountancy Sample
Questions for Practical
Exam.(Written)
(For the Students of Commerce )
APPEARING IN C.B.S.E.BOARD EXAMS.2020
Date of publishing - 25.12.2019
This manual contains the sample questions for
Accountancy Practical Exam.(Written)

2. 12th Accountancy Sample Questions for Practical
Exam.(Written)
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Questions for Accountancy Practical
Ratio Analysis
No. Questions M.M.
Q1. The current ratio of a company is 2 : 1. What will be the effect of the
following transactions on this ratio?
(a) Purchased goods on credit;
(b) Sale of a Machine (Book value: ₹ 4,000) for ₹ 3,000 only;
(c) Sale of merchandise (goods) costing ₹ 10,000 for ₹ 11,000.
3
Q2. Current liabilities of a company are ₹ 3,60,000, current ratio is 2.5:1 and
quick ratio is 2:1. Find the value of Inventories.
3
Q3. Current ratio is 4:1, quick ratio 3:1.Inventory ₹ 36,000. What will be the
effect of increase in inventory to ₹56,000 on the liquidity of the company.
6
Q4. Current assets of a company are ₹5,00,000. Current ratio is 2.5:1 and
Liquid ratio is 1:1. Calculate the value of liquid assets and inventories.
3
Q5. Current Ratio is 3.5 : 1. Working Capital is ₹90,000. What will be the
amount of Working Capital if Current assets are increased by ₹20,000.
1
Q6. Sucheta Ltd. has a current ratio 4.5 : 1 and quick ratio 3 : 1; if the
inventory is ₹36,000, calculate its Working Capital.
3
Q7. Current Liabilities of a company are ₹75,000. If current ratio is 3:1 and
Liquid Ratio is 1 : 1, calculate Working Capital and Inventory.
3
Q8. Harman Ltd. has inventory of ₹ 20,000. Liquid assets are ₹ 1,20,000 and
quick ratio is 2 : 1. Calculate current ratio and Working Capital.
3
Q9. What will be the effect of 'The payment of Dividend ₹40,000' on the Debt-
equity ratio of a company having: Total Assets ₹15,00,000, Current
Liabilities ₹6,00,000, Total Debts ₹12,00,000.
3
Q10. What will be the effect of 'Payment of Dividend ₹ 30,000' on the Current
Ratio of a company having: Inventory ₹ 6,00,000; Liquid Assets
₹24,00,000; Quick Ratio 2 : 1.
3
Q11. Compute Inventory Turnover Ratio from the following information: Net
Revenue from Operations ₹ 2,00,000, Gross Profit ₹ 50,000, Inventory at
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the end ₹60,000, Excess of inventory at the end over inventory in the
beginning ₹ 20,000.
Q12. Calculate following ratios from the following information:
(a) Liquid ratio (b) Operating Ratio (c) Gross profit ratio
Current Assets ₹ 35,000, Current Liabilities ₹17,500, Inventory ₹ 15,000,
Operating Expenses ₹ 20,000, Revenue from Operations ₹ 60,000, Cost of
Revenue from operation ₹ 30,000.
3
Q13. From the following information calculate:
(a) Gross Profit Ratio (b) Inventory Turnover Ratio (3) Current Ratio (4)
Liquid Ratio (5) Net Profit Ratio (6) Working Capital Ratio:
Revenue from Operations ₹ 25,20,000, Net Profit ₹ 3,60,000, Cost of
Revenue from Operations ₹19,20,000, Long-term Debts ₹ 9,00,000, Trade
Payables ₹2,00,000, Average Inventory ₹ 8,00,000, Current Assets ₹
7,60,000, Fixed Assets ₹ 14,40,000, Current Liabilities ₹ 6,00,000, Net
Profit before Interest and Tax ₹ 8,00,000.
6
Q14. Compute Gross Profit Ratio, Working Capital Turnover Ratio and Debt
Equity Ratio from the following information: Paid-up Share Capital
₹5,00,000, Current Assets ₹4,00,000, Revenue from Operations
₹10,00,000, 11% Debentures ₹ 2,00,000, Current Liabilities ₹ 2,80,000
,Cost of Revenue from Operations ₹6,00,000.
6
Q15. Calculate Inventory Turnover Ratio if:
Inventory in the beginning ₹ 76,250, Inventory at the end ₹ 98,500, Gross
Revenue from Operations ₹ 5,20,000, Sales Return ₹ 20,000, Purchases ₹
3,22,250.
3
Q16. Calculate Inventory Turnover Ratio from the data given below:
Inventory in the beginning of the year ₹ 10,000, Inventory at the end of the
year ₹ 5,000, Carriage ₹ 2,500, Revenue from Operations ₹ 50,000,
Purchases ₹ 25,000
3
Q17. The debt equity ratio of X Ltd. is 2 : 1. Which of the following would
increase/decrease or not change the debt equity ratio?
(a) Issue of preference shares, ₹10,000.
(b) Cheque received from debtors, ₹5,000.
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(c) Purchase of goods on cash basis, ₹2,000.
Q18. From the following details, calculate interest coverage ratio:
Net Profit after tax ₹ 60,000; 15% Long-term debt ₹10,00,000; and Tax
rate
40%. What would be the effect of increase in Tax Rate by 10%, on this
ratio?
3
Q19. From the following information, calculate inventory turnover ratio :
Inventory in the beginning ₹18,000, Inventory at the end ₹22,000, Net
purchases ₹50,000, Wages ₹ 14,000, Revenue from operations ₹ 80,000.
3
Q20. From the following information, calculate inventory turnover ratio:
Revenue from operations ₹4,00,000, Average Inventory ₹55,000, Gross
Profit Ratio is 10%.
3
Q21. A trader carries an average inventory of ₹ 40,000. His inventory turnover
ratio is 8 times, If he sells goods at a profit of 20% on Revenue from
operations, find out the gross profit.
3
Q22. Calculate the amount of gross profit: Average inventory ₹80,000, Inventory
turnover ratio is 6 times, Selling price is 25% above cost.
3
Q23. Calculate Inventory Turnover Ratio: Annual Revenue from operations
₹2,00,000, Gross Profit is 20% on cost of Revenue from operations,
Inventory in the beginning ₹ 38,500, Inventory at the end ₹ 41,500.
3
Q24. Calculate the Trade receivables turnover ratio from the following
information: Total Revenue from operations ₹ 4,00,000, Cash Revenue
from operations 20% of Total Revenue from operations, Trade receivables
as at 1.4.2018 ₹ 40,000, Trade receivables as at 31.3.2019 ₹ 1,20,000.
3
Q25. Calculate the Trade payables turnover ratio from the following figures:
Credit purchases during 2018-19 ₹12,00,000, Creditors on 1.4.2018
₹3,00,000, Bills Payables on 1.4.2018 ₹ 1,00,000, Creditors on 31.3.2019
₹1,30,000, Bills Payables on 31.3.2019 ₹ 70,000.
3
Q26. From the following information, calculate –
(a) Trade receivables turnover ratio, (b) Average collection period
(c) Trade Payable turnover ratio,
Information given : Revenue from Operations ₹8,75,000, Creditors
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Cash Flow Statement
Q1. If credit sales are ₹ 9,00,000 and cash sales are 20% of Total Sales, find
out cash flows from cash sales from operating activities.
2
Q2. Credit purchases made by an enterprise are ₹ 15,00,000 and cash
purchases are 25% of total purchases. Find out the Cash Flow from
operating activities.
2
₹90,000, Bills receivable ₹48,000, Bills payable ₹52,000, Purchases
₹4,20,000, Trade debtors ₹59,000.
Q27. Calculate gross profit ratio from the following information for the year
2018-19, Revenue from Operations: Cash ₹25,000, Credit ₹75,000,
Purchases : Cash ₹15,000, Credit ₹60,000, Carriage Inwards ₹2,000,
Salaries ₹25,000, Decrease in Inventory ₹10,000, Return Outwards ₹2,000,
Wages ₹5,000.
3
Q28. Given the following information:
Revenue from Operations ₹3,40,000, Cost of Revenue from Operations
₹1,20,000, Selling Expenses ₹80,000, Administrative Expenses ₹40,000
Calculate Gross profit ratio and Operating ratio.
3
Q29. Gross profit ratio of a company was 25%. Its credit revenue from
operations was, ₹20,00,000 and its cash revenue from operations was 10%
of the total revenue from operations. If the indirect expenses of the
company were ₹50,000, calculate its net profit ratio.
3
Q30. Following information is given by a company from its books of accounts as
on March 31, 2019:
Inventory ₹1,00,000, Total Current Assets ₹1,60,000, Shareholders’ funds
₹4,00,000, 13% Debentures ₹3,00,000, Current liabilities ₹1,00,000, Net
Profit Before Tax ₹3,51,000, Cost of revenue from operations ₹5,00,000
Calculate: (a) Current Ratio, (b) Inventory Turnover Ratio,(c) Debt Equity
Ratio.
3
Q31. The current ratio is 2.5 : 1. Current assets are ₹ 50,000 and current
liabilities are ₹ 20,000. How much must be the decline in current assets to
bring the ratio to 2 : 1?
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Q3. Mohit and Akshay went to Stock Exchange. ' Mohit ' purchased shares
worth ` 8,000 and sold for ` 9,600. Akshay purchased shares for ` 5,000
and sold them for ` 6,600. Who is a better investor and why ?
3
Q4. Ramesh started making designer garments. He bought an automatic
sewing machine for ` 70,000, spent ` 1,00,000 on its renewal and
purchased fabric for ` 4,00,000. Find out Cash Flow from Operating and
Investing activities.
3
Q5. Shankar started business with ` 20 lakhs , borrowed ` 15 lakhs from his
father and ` 5 lakhs from a bank @ 12% p.a. He bought machines for ` 9
lakhs, raw material for ` 4,50,000 and paid salaries ` 16,000 and rent of `
8,000 during the year. Calculate cash used in various types of activities
and their percentage of total funds at his disposal.
6
Q6. Cheten Ltd., made a profit of ₹ 1,00,000 after charging depreciation of ₹
20,000 on assets and a transfer to general reserve of ₹ 30,000, the
goodwill amortised was ₹ 7,000 and gain on sale of machinery was ₹
3,000, trade receivables showed an increase of ₹ 3,000; trade payables an
increase of ₹ 6,000; prepaid expenses an increase of ₹ 2000; and
outstanding expenses a decrease of ₹ 2,000.
Ascertain cash flow from operating activities.
3
Q7. Mugdha Ltd. has given you the following information:
Machinery as on April 01, 2018, ₹ 80,000
Machinery as on March 31, 2019, ₹ 65,000
Accumulated Depreciation on April 01, 2018, ₹ 23,000
Accumulated Depreciation on March 31, 2019, ₹ 13,000
During the year, Machine costing ₹ 25,000 in respect of which Depreciation
of ₹ 5,000 had been written off, was sold for ₹ 13,000.
Calculate cash flow from Investing Activities on the basis of the above
information.
3
Q8. From the following information, calculate cash flows from financing
activities:
Items 31.03.2018(₹) 31.03.2019(₹)
9% Debentures 3,00,000 3,50,000
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7. 12th Accountancy Sample Questions for Practical
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Long-term Loans 2,00,000 1,50,000
During the year, the company repaid a loan of ₹ 1,00,000.
Q9. From the following particular, calculate cash flows from investing
activities:
Items Purchased(₹) Sold(₹)
Plant 4,50,000 80,000
Investment 1,80,000 1,20,000
Goodwill 2,00,000 nil
Patents nil 1,00,000
Interest received on debentures held as investment ₹ 50,000.
Dividend received on shares held as investment ₹ 15,000.
A plot of land had been purchased for investment purposes and was let out
for commercial use and rent received ₹20,000.
3
Q10. From the following Information, calculate cash flows from investing and
financing activities:
Particular 31.03.2018(₹) 31.03.2019(₹)
Machine at cost
Accumulated Depreciation
Equity Shares Capital
Bank Loan
5,00,000
3,00,000
28,00,000
12,50,000
9,00,000
4,50,000
35,00,000
7,50,000
During the year, machine costing ₹ 2,00,000 was sold at a profit of ₹
1,50,000, Depreciation charged on machine during the year amounted to ₹
2,50,000.
3
Q11. Angad Ltd., arrived at a net income of ₹ 5,00,000 for the year ended March
31, 2019. Depreciation for the year was ₹ 2,00,000. There was a profit of ₹
50,000 on assets sold which was transferred to Statement of Profit and
Loss account. Trade Receivables increased during the year ₹ 40,000 and
Trade Payables also increased by ₹ 60,000. Compute the cash flow from
operating activities by the indirect approach.
3
Q12. For each of the following transactions, calculate the resulting cash flow 3

8. 12th Accountancy Sample Questions for Practical
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and state the nature of cash flow, viz., operating, investing and financing.
(a) Acquired machinery for ₹ 2,50,000 paying 20% by cheque and
executing a bond for the balance payable.
(b) Paid ₹ 2,50,000 to acquire shares in InfoTech. Ltd. and received a
dividend of ₹ 50,000 after acquisition.
(c) Sold machinery of original cost ₹ 2,00,000 with an accumulated
depreciation of ₹ 1,60,000 for ₹ 60,000.
Q13. Compute net cash from operations for the year ended March 31, 2019, if
Statement of Profit and Loss of a company for the year ended March 31,
2019, disclosed Profit before tax ₹1,50,000 and following Additional
information is provided to you:
(a) Trade receivables decrease by ₹ 30,000 during the year.
(b) Prepaid expenses increase by ₹ 5,000 during the year.
(c) Trade payables increase by ₹ 15,000 during the year.
(d) Outstanding expenses payable increased by ₹ 3,000 during the year.
(e) Other expenses included depreciation of ₹ 25,000.
3
Q14. Compute cash from operations from the following figures:
(a) Profit for the year 2018-18 is, ₹10,000 after providing for depreciation
of ₹ 2,000.
(b) The current assets and current liabilities of the business for the year
ended March 31, 2018 and 2019 are as follows:
Particulars 31.03.2018(₹) 31.03.2019(₹)
Trade Receivables
Provision for Doubtful Debts
Trade Payables
Inventories
Other Current Assets
Expenses payable
Prepaid Expenses
Accrued Income
Income received in advance
14,000
1,000
13,000
5,000
10,000
1,000
2,000
3,000
2,000
15,000
1,200
15,000
8,000
12,000
1,500
1,000
4,000
1,000
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Q15. From the following Information, calculate cash flows from financing
activities:
Particular 2018(₹) 2019(₹)
Equity Shares Capital
Bank Loan
Proposed Dividend
5,00,000
3,00,000
60,000
7,00,000
4,50,000
70,000
2
Q16. From the following Information, calculate cash flows from financing
activities:
Particular 2018(₹) 2019(₹)
Equity Shares Capital
Bank Loan
Proposed Dividend
5,00,000
3,00,000
50,000
7,00,000
4,50,000
65,000
During the year ended 31st March,2019,an Interim dividend was paid
₹25,000.
3
Q17. From the following Information, calculate cash flows from financing
activities:
Particular 2018(₹) 2019(₹)
Equity Shares Capital
10% Debentures
Proposed Dividend
5,00,000
3,00,000
50,000
7,00,000
4,50,000
65,000
Additional Information:
(a)Debentures were issued on 31.10.2018
(b)During the year ended 31st March,2019,an Interim dividend was paid
₹25,000.
3
Q18. From the following Information, calculate cash flows from financing
activities:
Particular 2018(₹) 2019(₹)
Equity Shares Capital
Bank Loan
Proposed Dividend
5,00,000
3,00,000
50,000
7,00,000
4,50,000
65,000
3

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During the year ended 31st March,2019,an Interim dividend was paid
25,000.
Q19. From the following Information, calculate cash flows from financing
activities:
Particular 2018(₹) 2019(₹)
Equity Shares Capital
9% Debentures
Proposed Dividend
4,00,000
3,00,000
50,000
5,00,000
4,50,000
60,000
During the year ended 31st March,2019, Dividend was paid ₹35,000.
3
Segment Reporting
Q1. The Second Quarter Report of a company gives following information
about Segment Performance:
Segment Sales(₹) Net Profit(₹)
Clothes 10,00,000 4,00,000
Machine 30,00,000 6,00,000
Footwear 16,00,000 6,00,000
Using Ratio Analysis, comment on the following:(a) Which is the best
segment? (b) If the company has to discontinue one segment, which
segment should be discontinued?
4
Q2. The Third Quarter Report of a Company gives following information about
Segment Performance:
Segment Sales(₹) Net Profit(₹)
Water Purifier 20,00,000 4,00,000
Air Purifier 30,00,000 8,00,000
Fashion Accessories 40,00,000 6,00,000
From the above data, find out which is the best segment and which
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segment should be discontinued if the company has to discontinue one
segment.
Q3. The Quarterly Report of a company gives the following information about
its Sales Revenue and Net Profit for the second quarter of the current year
and the second quarter of the previous year:
Particulars QuarterII,2018-19(₹) Quarter II,2017-18(₹)
Sales Revenue 16,00,000 13,00,000
Net Profit 3,80,000 3,00,000
Which quarter is performing better? Has the performance improved?
Comment using ratios as tools of your analysis.
3
Q4. From the following particulars regarding Segment A and Segment B of a
Company, You are required to comment on their efficiency in collection
from debtors ?
Particulars Segment A(₹) Segment B(₹)
Opening bal. of trade receivables 25,000 Nil
Closing bal. of trade receivables 12,000 30,000
Credit Revenue from Operations 1,20,000 2,40,000
3
Q5. The Third Quarter report of a company gives following information about
the performance of different segments:
Segment Revenue from Operations(₹) Net Profit(₹)
Bags 20,00,000 3,50,000
Shoes 30,00,000 4,50,000
Garments 40,00,000 4,00,000
Stationery 50,00,000 8,00,000
Find out which product should be discontinued.
5
Q6. The fourth quarter report of a company gives following information about
the performance of different segments:
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12. 12th Accountancy Sample Questions for Practical
Exam.(Written)
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Segment Rev. from Operations(₹) Gross Profit(₹)
Product E 20,00,000 3,50,000
Product F 30,00,000 5,00,000
Product G 40,00,000 6,50,000
Product H 50,00,000 8,00,000
Find out which segment is the best .
Q7. Given the following information relating to two segments X and Y ,of a
company, comment on the profitability of the two segments. Which
segment is performing better?
Particulars Segment X(₹) Segment Y(₹)
Revenue from Operations 3,40,000 4,20,000
Cost of Rev. from Operations 1,20,000 2,60,000
Selling expenses 80,000 40,000
Administrative Expenses 40,000 30,000
6
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