Jagran Josh
CBSE Class 12 Accountancy Assertion and Reason MCQs: The Central Board of Secondary Education (CBSE) is going to conduct the Class 12 Accountancy paper on 31st March under the ongoing CBSE Board Exam 2023. The question paper of CBSE Class 12 Accountancy will have assertion and reason type questions which will be asked in the MCQs’ section of the paper. In order to attempt these questions, students must have hands-on practice before appearing for the exam. We have provided below important assertion and reason type questions for CBSE Class 12 Accountancy. These questions which have been curated by the subject teachers and are based on the revised CBSE syllabus. Therefore, students must solve all the questions provided below to secure good marks in CBSE Class 12 Accountancy Exam 2023.
Assertion Reason Questions for CBSE Class 12 Accountancy
Q. no. 1-6: Read the given Assertion (A) and Reason(R). Choose one of the correct alternatives given below.
(a) Both Assertion(A) and Reason (R) are true and Reason(R) is the correct explanation of Assertion(A)
(b) Both Assertion(A) and Reason (R) are true and Reason(R) is not the correct explanation of Assertion(A)
(c) Assertion(R) is true but the Reason(R) is false
(d) Assertion(R) is false but the Reason(R) is true
1.Assertion(A): Rent to partner is shown in Profit& Loss Appropriation Account
Reason (R): Rent to partner is a charge against profit
Answer: (d)
2.Assertion(A):A partnership firm can have a maximum of 50 partners
Reason (R): Maximum limit of partners is prescribed in Indian Partnership Act,1932
Answer: (c)
3.Assertion (A): If drawings by a partner are on the different dates and/or amounts of draw ings is not the same interest on drawings is calculated using the product method.
Reason (R) : Interest on drawings is charged for the period it is drawn by a partner, in case the amount of drawings and/or period for which is drawn is not uniform, average method cannot be applied to determine interest on capital.
Answer: (b)
4.Assertion (A): Adith, a partner in the firm gave a loan of ₹. 50,000 to the firm without an agreement to rate of interest. Interest on Loan by Adith is to be allowed at @6% p.a.
Reason (R): In the absence of the Partnership Deed, Provisions of the Partnership act 1932, apply. Thus interest on a loan to a Partner should be charged @6% p.a
Answer: (c)
5.Assertion (A) Sandhya, Sudheer, and Namitha are partners sharing profits in the ratio of 3:2:1, Sandhya is guaranteed a minimum profit share of ₹. 75000 p.a after appropriations. Profit for the year after all adjustments were ₹. 1, 80,000. The profit share of Sandhya and Namitha will be Rs.90000, 30000 respectively.
Reason (R): The profit share of Sudheer is ₹. 75000 since her actual share is ₹. 60000(1, 80000*2/6). Balance profit ₹, 105000 will be distributed between Sandhya and Namitha in the ratio of 3:1. Thus Sandhya will get ₹. 78750, and Namitha ₹. 26,250.
Answer: (d)
6.(A)current ratio of a company will increase by redemption of debentures
(R) debentures are considered current liability in the year of redemption
Answer: (a)
Q. no. 7-8: Read the givenAssertion (A) and Reason(R). Choose one of the correct alternatives given below.
(a) Both (A) and (R) are correct and (R) is the correct reason of (A)
(b) Both (A) and (R) are correct but (R) is not the correct reason of (A).
(c) Only (R) is correct.
(d) Both (A) and (R) are wrong.
7.Assertion(A): Preferential allotment means allotment of shares at a pre determined price to the identified people who are interested in taking shares in the company.
Reason(R): Employee Stock Option Plan is a category of sweat Equity In the context of the above two statements, which of the following is correct?
Answer: (b)
8.Assertion (A): The forfeited shares may be reissued by the company at par, at premium or at discount.
Reason(R): Reissue of forfeited shares is not an issue of shares but is selling the shares that were issued earlier and were cancelled by the company.
Answer: (a)
Q. no. 9-11: There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion(A)
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A)is false, but Reason (R) is true
(d) Assertion (A ) is true, but Reason (R) is false
9.Assertion (A) Bills receivable are shown as trade receivables in the balance sheet of the company.
Reason (R) Debtors and bills receivable forms the part of trade receivables.
Answer: (a)
10.Assertion (A) The bank charges charged by the bank are included in finance cost.
Reason (R) Bank charges are an expense not incurred in connection with raising finance but for availing the services of the bank.
Answer: (c)
11.Assertion (A) Analysis of financial statements is done to assess the managerial efficiency.
Reason (R) Financial statement analysis helps to identify the areas where the managers have been efficient and the areas where they have been inefficient.
Answer: (a)
Q. no. 12-13:Read the given Assertion (A) and Reason(R). Choose one of the correct alternatives given below.
(a) (A) and (R) both are correct and (R) correctly explains (A).
(b) Both (A) and (R) are correct but (R) does not explain (A).
(c) Both (A) and (R) are incorrect.
(d) (A) is correct but (R) is incorrect.
12.Assertion (A): A high Operating Ratio indicates a favourable position.
Reason (R): A high Operating Expenses leaves a high margin to meet Non-operating
expenses.
Answer: (c)
13.Assertion (A): If Gross Profit Ratio is 20%, goods for 50,000 sold to employees at cost will
decrease the ratio.
Reason (R): There will be no change in Gross Profit Ratio, because both Cost of Revenue
from Operations and Revenue from Operations will increase by the sameamount
Answer: (d)
14.Assertion (A):The part of un-called capital, to be called only in the liquidation of a company is called Reserve Capital.
Reason (R): It can be used for writing off capital losses.
In the context of the above two statements, which of the following is correct?
(a) (A) is correct, but (R) is wrong.
(b) Both (A) and (R) are correct.
(c) (A) is wrong, but (R) is correct.
(d) Both (A) and (R) are wrong
Answer: (a)
15.Assertion (A): Interest on loan advanced by a partner to the firm is shown in Profit and Loss A/c.
Reason (R):- Interest on loan advanced by a partner to the firm is charge against profits and is to be provided at the rate as mentioned in the partnership deed or @6% p. a as the case may be.
(a) (A) is correct but (R) is wrong
(b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
(c) Both (A) and (R) are incorrect.
(d) Both (A) and (R) are correct, and (R) is the correct explanation of (A)
Answer: (d)
Check other important resources for CBSE Class 12 Accountancy Exam 2023 below:
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