How to Score Full Marks in Accountancy Practical Questions for Class 12 CBSE
Accountancy is one of the most scoring subjects for commerce students in Class 12 CBSE. Practical questions, in particular, can fetch full marks if approached systematically. This blog is designed to help students ace their practical questions by sharing effective strategies, tips, and some key questions from previous year CBSE question papers.
Why Practical Questions are Scoring
Practical questions in Accountancy follow a structured and logical format. Unlike theoretical answers, they are less subjective and offer direct marks if calculations, formats, and presentations are correct. These questions test students on topics such as fundamentals of partnership, admission, retirement, death, dissolution, issue of share, debenture, accounting ratio, comparative statements and cash flow statements, which can be mastered with consistent practice.
5 Steps to Ace Practical Questions
1. Master the Formats
CBSE Accountancy practical questions rely heavily on specific formats. Memorizing and practicing these formats ensures you don’t lose marks due to presentation errors. Key formats include:
Here’s a table with the specific formats for the mentioned topics in Accountancy:
| Topic | Specific Format |
| Fundamentals of Partnership | Profit and Loss Appropriation Account |
| Admission of a Partner | Revaluation Account, Partners’ Capital Account, Balance Sheet |
| Retirement of a Partner | Revaluation Account, Partners’ Capital Account, Loan Account |
| Death of a Partner | Revaluation Account, Deceased Partner’s Capital Account, Executors’ Account |
| Dissolution of Partnership | Realisation Account, Partners’ Capital Account, Bank/ Cash Account |
| Issue of Shares | Journal Entries, Share Application and Allotment Ledger, Balance Sheet |
| Issue of Debentures | Journal Entries, Debenture Account, Balance Sheet |
| Accounting Ratios | Ratio Formulas with Numerical Representation |
| Comparative Statements | Format of Comparative Income Statement and Comparative Balance Sheet |
| Cash Flow Statements | Operating, Investing, and Financing Activities Format |
Details of these formats
1. Profit and Loss Appropriation Account
Used in Fundamentals of Partnership
Dr. Profit and Loss Appropriation Account Cr.
————————————————————————————————
Particulars | Amount (₹) | Particulars | Amount (₹)
————————————————————————————————
To Salary to Partners | XXXX | By Net Profit transferred from |
To Commission to Partners | XXXX | Profit and Loss A/c | XXXX
To Interest on Capital | XXXX | By Interest on Drawings | XXXX
To Reserve Fund | XXXX | | XXXX
To Profit transferred to: | | |
– Partner A’s Capital A/c | XXXX | |
– Partner B’s Capital A/c | XXXX | |
————————————————————————————————
| XXXX | | XXXX
2. Revaluation Account
Used in Admission, Retirement, or Death of a Partner
Dr. Revaluation Account Cr.
————————————————————————————————
Particulars | Amount (₹) | Particulars | Amount (₹)
————————————————————————————————
To Decrease in Asset Value | XXXX | By Increase in Asset Value | XXXX
To Increase in Liabilities | XXXX | By Decrease in Liabilities | XXXX
To Profit transferred to: | XXXX | By Loss transferred to: | XXXX
– Partner A’s Capital A/c | XXXX | – Partner A’s Capital A/c | XXXX
– Partner B’s Capital A/c | XXXX | – Partner B’s Capital A/c | XXXX
XXXX XXXX
3. Realisation Account
Used in Dissolution of Partnership
Dr. **Realisation Account** Cr.
————————————————————————————————
Particulars | Amount (₹) | Particulars | Amount (₹)
————————————————————————————————
To Assets transferred (Book Value) | XXXX | By Liabilities transferred | XXXX
To Expenses of Realisation | XXXX | By Cash/Bank (Assets sold) | XXXX
To Partners’ Capital l | By Partner’s Capital) | XXXX
(Loss on Realisation) (Profit on Realisation
| XXXX | By Cash/Bank (Payment of Liabilities) | XXXX
————————————————————————————————
| XXXX | |XXXX
Journal entries for the dissolution of a partnership, with included Assumptions:
- Partners A and B are dissolving the partnership.
- Assets:
- Cash: ₹50,000
- Debtors: ₹40,000
- Stock: ₹30,000
- Building: ₹60,000
- Liabilities:
- Creditors: ₹70,000
- Loan from Partner B: ₹20,000
- The partners’ profit-sharing ratio is 3:2.
1. Transfer of Assets to the Realization Account
In this entry, all the assets are transferred to the Realization Account.
| Particulars | Debit (₹) | Credit (₹) |
| Realization A/c | ₹180,000 | |
| To Cash A/c | ₹50,000 | |
| To Debtors A/c | ₹40,000 | |
| To Stock A/c | ₹30,000 | |
| To Building A/c | ₹60,000 |
Narration: Transfer of assets to Realization A/c.
2. Transfer of Liabilities to the Realization Account
In this entry, all the liabilities (creditors and partner loans) are transferred to the Realization Account.
| Particulars | Debit (₹) | Credit (₹) |
| Creditors A/c | ₹70,000 | |
| Loan from B A/c | ₹20,000 | |
| To Realization A/c | ₹90,000 |
Narration: Transfer of liabilities to Realization A/c.
3. Sale of Assets
If assets are sold for ₹160,000 (example), the journal entry will record the sale.
| Particulars | Debit (₹) | Credit (₹) |
| Cash A/c | ₹160,000 | |
| To Realization A/c | ₹160,000 |
Narration: Realization of assets through sale for ₹160,000.
4. Profit or Loss on Realization
After the sale of assets and settling liabilities, any profit or loss on realization is determined.
Example:
- If there is a profit on realization of ₹10,000, it will be transferred to the partners’ capital accounts in their profit-sharing ratio (3:2).
| Particulars | Debit (₹) | Credit (₹) |
| Realization A/c | ₹10,000 | |
| To A’s Capital A/c | ₹6,000 | |
| To B’s Capital A/c | ₹4,000 |
Narration: Profit on realization transferred to partners in the ratio 3:2.
5. Realization of Loss (if applicable)
In case of a loss on realization, the entry would be reversed, with the loss debited to the partners’ capital accounts.
Example:
- If there is a loss on realization of ₹10,000, it will be debited to the partners’ capital accounts in the ratio of 3:2.
| Particulars | Debit (₹) | Credit (₹) |
| A’s Capital A/c | ₹6,000 | |
| B’s Capital A/c | ₹4,000 | |
| To Realization A/c | ₹10,000 |
Narration: Loss on realization transferred to partners in the ratio 3:2.
6. Payment of Liabilities
After realizing assets, liabilities such as creditors and partner loans are paid off.
- Payment to Creditors:
| Particulars | Debit (₹) | Credit (₹) |
| Creditors A/c | ₹70,000 | |
| To Cash A/c | ₹70,000 |
Narration: Payment made to creditors.
- Payment to Loan from Partner B:
| Particulars | Debit (₹) | Credit (₹) |
| Loan from B A/c | ₹20,000 | |
| To Cash A/c | ₹20,000 |
Narration: Payment made to Partner B’s loan.
7. Distribution of Remaining Cash Among Partners
After settling all liabilities, any remaining cash is distributed between the partners based on their capital accounts.
Example:
- If ₹70,000 is the remaining cash, it will be distributed in the ratio of 3:2.
| Particulars | Debit (₹) | Credit (₹) |
| A’s Capital A/c | ₹42,000 | |
| B’s Capital A/c | ₹28,000 | |
| To Cash A/c | ₹70,000 |
Narration: Cash distributed to A and B in the ratio 3:2.
Summary of Journal Entries for Dissolution:
| Particulars | Debit (₹) | Credit (₹) |
| Realization A/c (for assets) | ₹180,000 | |
| To Cash A/c | ₹50,000 | |
| To Debtors A/c | ₹40,000 | |
| To Stock A/c | ₹30,000 | |
| To Building A/c | ₹60,000 | |
| Realization A/c (for liabilities) | ₹90,000 | |
| To Creditors A/c | ₹70,000 | |
| To Loan from B A/c | ₹20,000 | |
| Cash A/c (for sale of assets) | ₹160,000 | |
| To Realization A/c | ₹160,000 | |
| Realization A/c (for profit on realization) | ₹10,000 | |
| To A’s Capital A/c | ₹6,000 | |
| To B’s Capital A/c | ₹4,000 | |
| A’s Capital A/c (for loss on realization) | ₹6,000 | |
| B’s Capital A/c | ₹4,000 | |
| To Realization A/c | ₹10,000 | |
| Creditors A/c (payment) | ₹70,000 | |
| To Cash A/c | ₹70,000 | |
| Loan from B A/c (payment) | ₹20,000 | |
| To Cash A/c | ₹20,000 | |
| A’s Capital A/c (distribution of cash) | ₹42,000 | |
| B’s Capital A/c (distribution of cash) | ₹28,000 | |
| To Cash A/c | ₹70,000 |
4. Share Application and Allotment Ledger Format
1. Journal Entries for Issue of Shares at Par
When Share Application Money is Received:
Bank A/c Dr. ₹XXX
To Share Application A/c ₹XXX
(Being application money received on XXX shares @ ₹XXX per share)
When Share Application Money is Transferred to Share Capital:
Share Application A/c Dr. ₹XXX
To Share Capital A/c ₹XXX
(Being application money transferred to share capital account)
When Share Allotment Money is Due:
Share Allotment A/c Dr. ₹XXX
To Share Capital A/c ₹XXX
(Being share allotment money due on XXX shares @ ₹XXX per share)
When Share Allotment Money is Received:
Bank A/c Dr. ₹XXX
To Share Allotment A/c ₹XXX
(Being share allotment money received)
When First Call Money is Due:
Share First Call A/c Dr. ₹XXX
To Share Capital A/c ₹XXX
(Being first call money due on XXX shares @ ₹XXX per share)
When First Call Money is Received:
Bank A/c Dr. ₹XXX
To Share First Call A/c ₹XXX
(Being first call money received)
When Final Call Money is Due:
Share Final Call A/c Dr. ₹XXX
To Share Capital A/c ₹XXX
(Being final call money due on XXX shares @ ₹XXX per share)
When Final Call Money is Received:
Bank A/c Dr. ₹XXX
To Share Final Call A/c ₹XXX
(Being final call money received)
2. Journal Entries for Issue of Shares at Premium
When Share Application Money is Received: (Same as at par)
When Share Allotment Money is Due (Including Premium):
Share Allotment A/c Dr. ₹XXX
To Share Capital A/c ₹XXX
To Securities Premium A/c ₹XXX
(Being allotment money due, including premium of ₹XXX per share)
(Other entries for application, calls, and receipt remain the same.)
3. Journal Entries for Issue of Shares at Discount
When Shares are Issued at Discount:
Share Allotment A/c Dr. ₹XXX
Discount on Issue of Shares A/c Dr. ₹XXX
To Share Capital A/c ₹XXX
(Being allotment money due on shares issued at a discount)
(Other entries remain the same as at par.)
4. Journal Entries for Calls in Arrears
When Call Money is Not Received:
Share First/Final Call A/c Dr. ₹XXX
To Calls in Arrears A/c ₹XXX
(Being call money not received from shareholders)
5. Journal Entries for Forfeiture of Shares
For Non-Payment of Allotment and Calls:
Share Capital A/c Dr. ₹XXX
To Share Allotment A/c ₹XXX
To Share First/Final Call A/c ₹XXX
To Forfeited Shares A/c ₹XXX
(Being forfeiture of XXX shares for non-payment of allotment and call money)
6. Journal Entries for Reissue of Forfeited Shares
When Forfeited Shares are Reissued:
Bank A/c Dr. ₹XXX
Forfeited Shares A/c Dr. ₹XXX
To Share Capital A/c ₹XXX
(Being forfeited shares reissued at ₹XXX per share)
**For Transferring the Balance in Forfeited Shares A/c to Capital Reserve:**
“`
Forfeited Shares A/c Dr. ₹XXX
To Capital Reserve A/c ₹XXX
(Being balance of forfeited shares transferred to capital reserve)
5. Comparative Income Statement Format
Used in Comparative Statement
————————————————————————————————
**Particulars** | **Previous Year ₹** | **Current Year ₹** | **Absolute Change ₹** | **% Change**
————————————————————————————————
Revenue from Operations | XXXX | XXXX | XXXX | XXXX
Other Income | XXXX | XXXX | XXXX | XXXX
Expenses | XXXX | XXXX | XXXX | XXXX
Profit Before Tax | XXXX | XXXX | XXXX | XXXX
————————————————————————————————
6. Cash Flow Statement Format
Prepared as per Indirect Method
————————————————————————————————
**Particulars** | Amount (₹)
————————————————————————————————
**A. Cash Flow from Operating Activities** |
Net Profit Before Tax and Extraordinary Items | XXXX
Adjustments: |
– Depreciation | XXXX
– Interest Paid | XXXX
Operating Profit before Working Capital Changes | XXXX
Changes in Working Capital: |
– Increase/Decrease in Trade Payables | XXXX
– Increase/Decrease in Inventories | XXXX
Cash Generated from Operations | XXXX
Less: Income Tax Paid | XXXX
Net Cash from Operating Activities | XXXX
————————————————————————————————
**B. Cash Flow from Investing Activities** |
– Purchase of Fixed Assets | (XXXX)
– Sale of Investments | XXXX
Net Cash from Investing Activities | XXXX
————————————————————————————————
**C. Cash Flow from Financing Activities** |
– Issue of Shares | XXXX
– Repayment of Borrowings | (XXXX)
Net Cash from Financing Activities | XXXX
————————————————————————————————
Net Increase/Decrease in Cash and Cash Equivalents | XXXX
Add: Opening Cash and Cash Equivalents | XXXX
Closing Cash and Cash Equivalents | XXXX
——————————————————————————————-
For example, while preparing a balance sheet, always remember to follow the vertical format prescribed by CBSE and align assets and liabilities properly.
2. Understand the Concepts
Practical problems are rooted in concepts. Ensure you understand topics like:
- Partnership Accounts: Admission, retirement, and death of a partner
- Company Accounts: Issue and forfeiture of shares, redemption of debentures
- Cash Flow Statement: Classification of activities (operating, investing, financing)
- Ratios: Liquidity, solvency, and profitability
Understanding these concepts will help you solve even the most complex problems during the exam.
3. Show Stepwise Solutions
Accountancy exams reward stepwise presentation. Even if your final answer is incorrect, marks can still be awarded for intermediate steps if they are correct. For instance:
- Start with clear working notes for calculations.
- Write the format neatly and align columns.
- Highlight the final answers for clarity.
4. Practice Previous Year Papers and Sample Questions
Solving past year question papers and sample questions gives you a sense of the type of problems to expect. Focus on recurring patterns like journal entries for share allotment or revaluation of assets in partnership accounts.
5. Avoid Common Errors
- Calculation Mistakes: Double-check all arithmetic calculations.
- Misclassification: Understand the difference between capital and revenue items.
- Presentation Errors: Use a pencil for columns and avoid overwriting.
Some Important Practical Questions asked in Previous CBSE Papers
Here are some frequently asked practical questions based on past year trends:
1. Partnership Accounts
- Prepare a Revaluation Account, Partners’ Capital Accounts, and the Balance Sheet after admission of a new partner. Example: A and B are partners sharing profits in the ratio 3:2. C is admitted for 1/5th share. Revalue assets and liabilities based on given adjustments.
- 2019: A similar question on admission of a partner was asked with adjustments involving goodwill and revaluation.
- Calculation of Gaining and Sacrificing Ratios when a partner retires.
- 2021: Calculate the new profit-sharing ratio and prepare a revaluation account when a partner retires.
- Prepare the Capital Account of a Deceased Partner showing treatment of goodwill and accumulated reserves.
- 2020: This question appeared with specific details of profit-sharing ratios and goodwill valuation.
2. Company Accounts
- Pass journal entries for Issue of Shares at a premium and for the forfeiture and reissue of shares. Example: A company issued 10,000 shares of ₹100 each at a premium of ₹10. Applications were received for 12,000 shares. Excess application money was refunded. 2,000 shares were forfeited for non-payment of allotment and later reissued at ₹105 each.
- 2018: The exact pattern of forfeiture and reissue was asked in the paper.
- Prepare Journal Entries and Ledger Accounts for the redemption of debentures.
- 2022: Journal entries for redemption with adjustments for premium on redemption were included.
3. Cash Flow Statement
- Prepare a Cash Flow Statement using the indirect method for a given set of financial data. Example: Net profit for the year is ₹2,00,000. Depreciation is ₹50,000. Increase in inventory is ₹30,000. Calculate cash flows from operating activities.
- 2020: A similar question involving adjustments for non-cash and working capital changes appeared.
4. Ratio Analysis
- Calculate the Current Ratio and Debt-Equity Ratio from a given balance sheet. Example: Current Assets ₹5,00,000, Current Liabilities ₹2,00,000, Debt ₹8,00,000, Equity ₹10,00,000.
- 2021: This was asked with variations in figures but similar calculations.
Tips for Last-Minute Revision
- Prioritize Important Topics: Focus on partnership accounts, share capital, and cash flow statements, as they carry the most weight.
- Create Summary Notes: Keep concise notes of formulas and journal entry formats for quick reference.
- Time Yourself: Practice solving a full-length question paper within the allotted time to improve speed and accuracy.
- Use CBSE Sample Papers: These are designed as per the latest marking scheme and exam pattern.
Sample Questions from Previous Year Papers with Years
Partnership Accounts
- Prepare Revaluation Account, Partners’ Capital Accounts, and Balance Sheet on the admission of a partner.
- 2019: Revaluation of assets and treatment of goodwill were key parts of this question.
- Calculate Gaining and Sacrificing Ratio during retirement of a partner.
- 2021: A detailed question involving ratios and adjustments.
Company Accounts
- Journal entries for the issue of shares at premium and forfeiture.
- 2018: Exact journal entries with detailed scenarios.
- Redemption of Debentures through various methods.
- 2022: Covered journal entries for premium on redemption.
Cash Flow Statement
- Prepare Cash Flow Statement using the indirect method.
- 2020: Included multiple adjustments for depreciation and working capital.
Ratio Analysis
- Calculate Current Ratio and Debt-Equity Ratio.
- 2021: Focused on direct formula application.
Conclusion
Scoring full marks in Accountancy practical questions requires a blend of conceptual understanding, practice, and attention to detail. By mastering the formats, solving stepwise, and revising past year questions, you can ensure excellent performance in the exam. Remember, consistency in practice and clarity in presentation are your keys to success.
Good luck with your preparation! Stay focused.
Always go for Extra Miles
Always go for Extra Miles
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