MODEL PAPER 2025 — Accountancy STD 12 Commerce — Question

Discount on issue of debentures to be written off within 12 months of the balance sheet date or the period of operating cycle is shown under _____.

1. Other Current Assets
2. Current Assets
3. Reserves and Surplus
4. Other Current Liabilities

The part of authorised capital which can be called-up only on the company being wound up is called.

1. Issued Capital.
2. Unsubscribed Capital.
3. Reserve Capital.
4. None of these.

Goodwill of a company is shown on the assets side of the Balance Sheet under the head.

1. Current Assets
2. Non-current Assets
3. Miscellaneous Expenditure
4. None of these

Which of the following is not included in current assets?

1. Debtors
2. Opening Stock
3. Cash at bank
4. Cash in hand

Discount or Loss on issue of debentures is a ______and is written-off in the year when debentures are issued.

1. Capital Profit
2. Revenue Loss
3. Capital Loss
4. Revenue Expenses

Preparation of cash flow statement is:

1. Mendatory
2. Recommendatory
3. Required under the Companies Act
4. None of these

Which of the following is not required to be prepared under the Companies Act?

1. Balance Sheet
2. Statement of Profit & Loss
3. Cash Flow Statement
4. Auditor’s Report

Which one of the following statements is correct?

1. Increases in liabilities are credits and decreases are debits.
2. Increases in assets are credits and decreases are debits.
3. Increases in capital are debits and decreases are credits.
4. Increases in expenses are credits and decreases are debits.

…………..will result in increase in Liquid Ratio without affecting the Current Ratio.

Which of the following items is not an operating expense?

1. Advertising
2. Depreciation of office equipment
3. General management salaries
4. Loss on the sale of motor car