BK 12th Commerce PDF Free Download, Balbharati Solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapterwise List – Free.
BK 12th Commerce PDF Free Download
Question 1.
When there is no partnership agreement between partners, the division of profits takes place in ____________ ratio.
(a) equal
(b) capital ratio
(c) initial contribution
(d) experience and tenure of partners
Answer:
(a) equal
Question 2.
To find out Net Profit or Net Loss of the business ____________ Account is prepared.
(a) Trading
(b) Capital
(c) Current
(d) Profit & Loss
Answer:
(d) Profit & Loss
Question 3.
A ____________ is an Intangible Asset.
(a) Goodwill
(b) Stock
(c) Cash
(d) Furniture
Answer:
(a) Goodwill
Question 4.
In the absence of an agreement, interest on a loan advanced by the partner to the firm is allowed at the rate of ____________
(a) 5%
(b) 6%
(c) 10%
(d) 9%
Answer:
(b) 6%
Question 5.
Liability of partners in a partnership business is ____________
(a) limited
(b) unlimited
(c) limited and unlimited
(d) none of the above
Answer:
(b) unlimited
Question 6.
The Indian Partnership Act is in force since ____________
(a) 1932
(b) 1881
(c) 1956
(d) 1984
Answer:
(a) 1932
Question 7.
Maximum number of Partners in a firm are ____________ according to Companies Act, 2013.
(a) 10
(b) 25
(c) 20
(d) 50
Answer:
(d) 50
B. Write the word/phrase/term, which can substitute each of the following statements.
Question 1.
Persons who form the partnership firm.
Answer:
Partners
Question 2.
Amount of cash or goods withdrawn by partners from the business from time to time.
Answer:
Drawings
Question 3.
An association of two or more persons according to Indian Partnership Act 1932.
Answer:
Partnership firm
Question 4.
Act under which partnership firms are regulated.
Answer:
Indian Partnership Act
Question 5.
Process of entering the name of the partnership firm in the register of the Registrar.
Answer:
Registration
Question 6.
Partnership agreement in written form.
Answer:
Partnership Deed
Question 7.
Under this method capital, balances of partners remain constant.
Answer:
Fixed Capital Method
Question 8.
Proportion in which partners share profit.
Answer:
Profit-Sharing Ratio
Question 9.
Such a capital method in which only Capital Account is maintained for each partner.
Answer:
Fluctuating Capital Method
Question 10.
The account to which all adjustments are made when capital is fixed.
Answer:
Current Account
Question 11.
Expenses that are paid before they are due.
Answer:
Prepaid expenses
Question 12.
The accounts are prepared at the end of each accounting year.
Answer:
Final Accounts
Question 13.
An asset that can be converted into cash easily.
Answer:
Current Assets or Liquid Assets
Question 14.
Order in which fixed assets are recorded first in the Balance Sheet.
Answer:
Order of liquidation
Question 15.
The account in which selling expenses of the business are recorded.
Answer:
Profit and Loss Account
Question 16.
Debit balance of Trading Account.
Answer:
Gross loss
Question 17.
The credit balance of Profit and Loss Account.
Answer:
Net profit
C. State whether the following statements are True or False with reasons:
Question 1.
A partnership firm is a Non-Trading concern.
Answer:
This statement is False.
The main aim of a partnership firm Is to earn maximum profit. The partnership is a trading concern. It undertakes either manufacturing or distributive activities with the sole aim of earning profit and distribute that profit among the partners in a specific ratio. It is never formed for charitable purposes.
Question 2.
A profit and Loss Account is a Real Account.
Answer:
This statement is False.
Account of expenses, losses, gains, and incomes is called a Nominal account. The profit and Loss Account contains all indirect expenses and indirect incomes of the firm. Therefore, a Profit and Loss Account is a Nominal Account and not a real account.
Question 3.
Carriage inward is carriage on purchase.
Answer:
This statement is True.
Total transport expenses incurred on bringing the goods from market to the place of business is called the carriage. When goods are purchased, the carriage is supposed to be borne by the firm. It is known as carriage inward. It means carriage paid on purchase.
Question 4.
Adjustments are recorded in Partners Current Account in Fixed Capital Method.
Answer:
This statement is True.
In Fixed Capital Method, as the name suggests capital balances (opening and closing) are generally remain fixed. Under this method, adjustments are not to be recorded in Capital Account. All adjustments are recorded in a separate account called Partners’ Current Accounts.
Question 5.
Prepaid expenses are treated as liabilities.
Answer:
This statement is False.
Prepaid expenses are expenses that are paid before they are due. Therefore, they are considered an asset of the business organization.
Question 6.
If the partnership deed is silent, partners share profits and losses in proportion to their capital.
Answer:
This statement is False.
As per the provisions made under the Indian Partnership Act 1932, when a partnership deed is silent about profit and loss sharing ratio, partners are supposed to share profits and losses in equal proportion, and not in their capital ratio.
Question 7.
Balance Sheet is an Account.
Answer:
This statement is False.
A financial statement showing all assets and liabilities is called a Balance sheet. It is not an account. It is a position statement that shows various assets owned by the firm and various liabilities owned by it. On the left-hand side, all liabilities are listed and on the right-hand side, all assets are recorded.
Question 8.
Wages paid for the installation of machinery is a Revenue expenditure.
Answer:
This statement is False.
Wages paid for the installation of machinery is a capital expenditure and therefore it is added to the cost of machinery. It is generally, paid once in a life of an asset. It is a long-term and capital expenditure.
Question 9.
Income received in advance is a liability.
Answer:
This statement is True.
When Income in respect to next year, it received in the current year, it is known as income received in advance. So, in next year firm will not be able to receive that amount and therefore it is considered as a liability for the current year.
Question 10.
R.D.D. is created on Creditors.
Answer:
This statement is Raise.
R.D.D. stands for Reserve for Doubtful Debts. It is created on the value of debtors. Such provision is made against profit and loss accounts. In the future, if the loss is incurred on account of bad debts, such an amount is used to run the business.
Question 11.
Depreciation is not calculated on Current Assets.
Answer:
This statement is True.
Current Assets mean liquid assets having no fixed tenure therefore depreciation cannot be calculated on it. Depreciation is calculated and charged on fixed assets for their use, wear and tear, etc.
Question 12.
Goodwill is an intangible asset.
Answer:
This statement is True.
Goodwill is a reputation of business computed in terms of money. Reputation can be experienced but can’t be seen or felt. Therefore, Goodwill is an intangible asset.
Question 13.
Indirect expenses are debited to Trading Account.
Answer:
This statement is Raise.
Indirect expenses mean expenses that are not directly related to the production of goods and services. Therefore, indirect expenses cannot be debited to Trading Account. All indirect expenses are debited to the Profit and Loss Account.
Question 14.
A bank loan is a current liability.
Answer:
This statement is Raise.
A loan usually taken for the period of more than 1 year say 5 years from the bank is called Bank Loan. It is a long term loan. It is not repaid within 1 year but paid in installments over a number of years. It might be paid in lumpsum at the expiry of the term.
Question 15.
Net profit is the debit balance of Profit and Loss Account.
Answer:
This statement is Raise.
In a Profit and Loss Account, when the credit side total i.e. a total of incomes is more than the debit side total, i.e. expenses it is known as a credit balance. When incomes exceed expenses there is profit. Therefore credit balance of the Profit and Loss Account indicates net profit.
D. Find an odd one.
Question 1.
Wages, Salary, Royalty, Import Duty
Answer:
Salary
Question 2.
Postage, Stationery, Advertising, Purchases
Answer:
Purchases
Question 3.
Capital, Bills Receivable, Reserve fund, Bank overdraft
Answer:
Bills Receivable
Question 4.
Building, Machinery, Furniture, Bills Payable
Answer:
Bill Payable
Question 11.
Depreciation is not calculated on Current Assets.
Answer:
This statement is True.
Current Assets mean liquid assets having no fixed tenure therefore depreciation cannot be calculated on it. Depreciation is calculated and charged on fixed assets for their use, wear and tear, etc.
Question 12.
Goodwill is an intangible asset.
Answer:
This statement is True.
Goodwill is a reputation of business computed in terms of money. Reputation can be experienced but can’t be seen or felt. Therefore, Goodwill is an intangible asset.
Question 13.
Indirect expenses are debited to Trading Account.
Answer:
This statement is Raise.
Indirect expenses mean expenses that are not directly related to the production of goods and services. Therefore, indirect expenses cannot be debited to Trading Account. All indirect expenses are debited to the Profit and Loss Account.
Question 14.
A bank loan is a current liability.
Answer:
This statement is Raise.
A loan usually taken for the period of more than 1 year say 5 years from the bank is called Bank Loan. It is a long term loan. It is not repaid within 1 year but paid in installments over a number of years. It might be paid in lumpsum at the expiry of the term.
Question 15.
Net profit is the debit balance of Profit and Loss Account.
Answer:
This statement is Raise.
In a Profit and Loss Account, when the credit side total i.e. a total of incomes is more than the debit side total, i.e. expenses it is known as a credit balance. When incomes exceed expenses there is profit. Therefore credit balance of the Profit and Loss Account indicates net profit.
D. Find an odd one.
Question 1.
Wages, Salary, Royalty, Import Duty
Answer:
Salary
Question 2.
Postage, Stationery, Advertising, Purchases
Answer:
Purchases
Question 3.
Capital, Bills Receivable, Reserve fund, Bank overdraft
Answer:
Bills Receivable
Question 4.
Building, Machinery, Furniture, Bills Payable
Answer:
Bill Payable
Question 7.
Partners are ____________ liable for the debts of the firm.
Answer:
joint & several
Question 8.
Partnership Deed is an ____________ of Partnership.
Answer:
Article
Question 9.
The withdrawal by the partner for personal use from the firm is ____________ to his account.
Answer:
debited
Question 10.
Commission payable to partner is ____________ to the firm.
Answer:
liability/outstanding expense
Question 11.
When partners adopt Fixed Capital Method then they have to operate ____________ Account.
Answer:
Partner’s Current
Question 12.
If the partners Current Account shows ____________ balance it is shown to the Liability side of the Balance Sheet.
Answer:
credit
Question 13.
The expenses paid for trading purpose are known as ____________ expenses.
Answer:
trade
Question 14.
Cash receipts which are recurring in nature are called as ____________ Receipts.
Answer:
Revenue
Question 15.
Return outward are deducted from ____________
Answer:
purchase
Question 16.
Expenses which are paid before due date are called as ____________
Answer:
Prepaid Expenses
Question 17.
Assets which are held in the business for a long period are called ____________
Answer:
Fixed Assets
Question 18.
Trading Account is prepared on the basis of ____________ expenses.
Answer:
direct
Question 19.
When commission is allowed to any partner, it is ____________ of the business.
Answer:
expenditure
Question 20.
When goods are distributed as free samples, it is treated as ____________ of the business.
Answer:
advertisement expense
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