CBSE Class 12 Accountancy 2025-26: Most Important Questions with Answers for High Score

The CBSE Class 12 Accountancy Board Exam is scheduled for tomorrow, February 24, 2026. Time is running out, and this last-minute revision should focus on practicing only those questions that are most likely to appear in the Board Exam.

We have prepared the most important CBSE questions, chapter-wise, with detailed answers. These questions cover all high-weight chapters. MCQs, Case Study-Based Questions, Short Answers, and Long Answers—important questions from every section are covered.

Detailed answers to each question are provided as per the CBSE Marking Scheme to ensure accurate answer presentation. If you thoroughly review these questions tonight, scoring high in the Accountancy Board Exam tomorrow will be much easier.

CBSE Class 12 Accountancy Most Important Questions

Read the important questions below and complete your last-minute revision. Here are all 50 questions with answers in the requested format:

1. In the absence of a Partnership Deed, the rate of interest on a partner's loan to the firm is:

(A) 12% p.a. (B) 6% p.a. (C) 10% p.a. (D) No interest is allowed

Answer — B

2. Sacrificing Ratio is calculated at the time of:

(A) Retirement of a partner (B) Death of a partner (C) Admission of a new partner (D) Dissolution of the firm

Answer — C

3. Goodwill is a/an:

(A) Fictitious Asset (B) Current Asset (C) Intangible Asset (D) Tangible Asset

Answer — C

4. On the admission of a new partner, the balance of General Reserve in the Balance Sheet is transferred to:

(A) Revaluation Account (B) New Partner's Capital Account (C) Old Partners' Capital Accounts in Old Ratio (D) All Partners' Capital Accounts in New Ratio

Answer — C

5. Revaluation Account is a:

(A) Real Account (B) Personal Account (C) Nominal Account (D) Asset Account

Answer — C

6. The maximum number of partners allowed in a firm as per the Companies Act, 2013 is:

(A) 20 (B) 100 (C) 50 (D) 10

Answer — C

7. Interest on drawings for a partner withdrawing equal amounts at the beginning of each month is charged for:

(A) 6 months (B) 5.5 months (C) 6.5 months (D) 7 months

Answer — C

8. Liability of a partner in a partnership firm is:

(A) Limited to his capital (B) Unlimited (C) Limited to the value of firm's assets (D) Determined by the court

Answer — B

9. On the death of a partner, his share of profit from the last Balance Sheet date till the date of death is transferred to:

(A) Profit & Loss Account (B) Profit & Loss Appropriation Account (C) Profit & Loss Suspense Account (D) Partner's Loan Account

Answer — C

10. Securities Premium Reserve can be used for:

(A) Paying tax (B) Paying dividends (C) Writing off preliminary expenses (D) Purchasing fixed assets

Answer — C

11. As per Section 53 of Companies Act 2013, the issue of shares at a discount is:

(A) Allowed for all companies (B) Prohibited (except for sweat equity) (C) Allowed with SEBI permission (D) Allowed only to existing shareholders

Answer — B

12. Minimum subscription for a public issue as per SEBI guidelines is:

(A) 100% (B) 25% (C) 50% (D) 90%

Answer — D

13. Share Forfeiture Account is shown in the Balance Sheet under the head:

(A) Reserves and Surplus (B) Share Capital (C) Current Liabilities (D) Non-current Liabilities

Answer — B

14. Equity shareholders are the:

(A) Creditors of the company (B) Customers of the company (C) Owners of the company (D) Managers of the company

Answer — C

15. If shares are forfeited on which premium was already received, Securities Premium A/c is:

(A) Debited (B) Credited (C) Not Debited (D) Closed

Answer — C

16. Debentures represent the:

(A) Long-term Debt of the company (B) Share Capital of the company (C) Director's investment (D) Short-term Loan

Answer — A

17. Interest on Debentures is a:

(A) Appropriation of profit (B) Charge against profit (C) Transfer to reserve (D) None of these

Answer — B

18. Premium on Redemption of Debentures Account is a:

(A) Real Account (B) Nominal Account (C) Personal Account (Liability) (D) Asset Account

Answer — C

19. Analysis of Financial Statements is a tool for:

(A) Window dressing (B) Decision making (C) Hiding losses (D) Increasing tax liability

Answer — B

20. Common Size Balance Sheet is also known as:

(A) Horizontal Analysis (B) External Analysis (C) Vertical Analysis (D) Dynamic Analysis

Answer — C

21. The ideal Current Ratio is:

(A) 1 : 1 (B) 2 : 1 (C) 1 : 2 (D) 3 : 1

Answer — B

22. Liquid Assets are calculated as:

(A) Current Assets + Inventory (B) Current Assets – (Inventory + Prepaid Expenses) (C) Current Assets – Creditors (D) Fixed Assets – Depreciation

Answer — B

23. Dividend paid by a non-financial company is a:

(A) Operating Activity (B) Investing Activity (C) Financing Activity (D) Cash Equivalent

Answer — C

24. Operating Ratio is a:

(A) Liquidity Ratio (B) Solvency Ratio (C) Profitability Ratio (D) Turnover Ratio

Answer — C

25. Gain on sale of fixed assets is:

(A) Added to net profit in Operating Activities (B) Deducted from net profit in Operating Activities (C) Ignored in Cash Flow Statement (D) Added to Investing Activities

Answer — B

26. Change in Profit Sharing Ratio among existing partners results in:

(A) Dissolution of Firm (B) Reconstitution of Firm (C) Winding up of Company (D) None of these

Answer — B

27. At the time of retirement, the retiring partner's capital account is credited with:

(A) His share of Goodwill (B) Total Goodwill of the firm (C) Share of Goodwill of remaining partners (D) None of these

Answer — A

28. Realisation Account is prepared at the time of:

(A) Admission (B) Retirement (C) Death (D) Dissolution

Answer — D

29. Calls in Arrears are ________ from Called-up Capital:

(A) Added (B) Deducted (C) Multiplied (D) Ignored

Answer — B

30. Capital Reserve is created out of:

(A) Normal Profits (B) Capital Profits (C) Sale of Goods (D) Interest received

Answer — B

31. Debentures can be issued:

(A) At Par (B) At Premium (C) At Discount (D) All of the above

Answer — D

32. Proprietary Ratio shows the relationship between:

(A) Total Assets and Total Liabilities (B) Shareholders' Funds and Total Assets (C) Current Assets and Current Liabilities (D) Net Profit and Sales

Answer — B

33. Cash Flow Statement is prepared as per:

(A) Accounting Standard 1 (B) Accounting Standard 3 (C) Accounting Standard 10 (D) Accounting Standard 26

Answer — B

34. Payment of Income Tax is classified as:

(A) Operating Activity (B) Investing Activity (C) Financing Activity (D) Extra-ordinary item

Answer — A

35. Interest received by a Finance Company is part of:

(A) Investing Activity (B) Operating Activity (C) Financing Activity (D) None of these

Answer — B

36. Gaining Ratio =

(A) Old Ratio – New Ratio (B) New Ratio – Old Ratio (C) Sacrificing Ratio + Old Ratio (D) None of these

Answer — B

37. The balance of the Revaluation Account is transferred to Partners' Capital Accounts in:

(A) New Ratio (B) Old Ratio (C) Sacrificing Ratio (D) Capital Ratio

Answer — B

38. Unrecorded liabilities when paid at the time of dissolution are debited to:

(A) Realisation A/c (B) Partners' Capital A/c (C) Cash A/c (D) Liability A/c

Answer — A

39. Interest on Calls in Advance is paid at the rate of:

(A) 6% p.a. (B) 10% p.a. (C) 12% p.a. (D) 5% p.a.

Answer — C

40. A company is an:

(A) Artificial Legal Person (B) Natural Person (C) Partnership (D) Sole Proprietorship

Answer — A

41. Inventory Turnover Ratio is a/an:

(A) Liquidity Ratio (B) Activity Ratio (C) Solvency Ratio (D) Profitability Ratio

Answer — B

42. Working Capital =

(A) Current Assets + Current Liabilities (B) Current Assets – Current Liabilities (C) Fixed Assets – Current Assets (D) Cash + Bank

Answer — B

43. Ideal Quick Ratio is:

(A) 2 : 1 (B) 1 : 2 (C) 1 : 1 (D) 0.5 : 1

Answer — C

44. Return on Investment (ROI) is calculated as:

(A) (Net Profit before Interest & Tax / Capital Employed) × 100 (B) (Net Profit after Tax / Sales) × 100 (C) (Gross Profit / Sales) × 100 (D) (Operating Profit / Sales) × 100

Answer — A

45. Which of the following is not a Cash Inflow?

(A) Sale of Fixed Assets (B) Issue of Shares (C) Purchase of Machinery (D) Cash received from Debtors

Answer — C

46. Preliminary Expenses are shown in the Balance Sheet under:

(A) Non-current Assets (B) Current Assets (C) They are written off and not shown (D) Fixed Assets

Answer — C

47. Accumulated losses are transferred to partners in:

(A) Old Profit Sharing Ratio (B) New Profit Sharing Ratio (C) Gaining Ratio (D) Capital Ratio

Answer — A

48. Premium on issue of debentures is a:

(A) Capital Gain (B) Capital Loss (C) Revenue Gain (D) Revenue Expense

Answer — A

49. Debt-Equity Ratio is a:

(A) Liquidity Ratio (B) Activity Ratio (C) Solvency Ratio (D) Profitability Ratio

Answer — C

50. Marketable Securities are treated as:

(A) Investing Activity (B) Cash Equivalents (C) Operating Activity (D) Financing Activity

Answer — B

All 50 questions formatted with answers. Would you like me to also create chapter-wise grouping or add explanations for any of these questions?

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👉 CBSE Class 12 Study Materials

CBSE Class 12 study material includes latest syllabus, sample papers, NCERT books and solutions, previous year question papers, chapter-wise important questions, case study questions, assertion-reason questions, and competency-based questions — all updated as per the latest CBSE board exam pattern.