AHSEC CLASS 12: Accountancy Most Important Theory Questions For Upcoming 2026 Exam

AHSEC ACCOUNTANCY CLASS 12
Accountancy Most Important Theory Questions 

For Upcoming 2026 Exam
Chapter wise Important Questions (Theory)

Part A

Unit – 1: Accounting For Partnership Firms (1+3+5+8)

Q.1. Define the term “Partnership”, Partners, Firm and Firm name. What are essentials of partnership? What are its merits and limitations? 2022, 2023, 2024

Q.2. What is Partnership Deed? What are its contents?                1999, 2003, 2007, 2009, 2014, 2018, 2019

Q.3. What are the rules to be followed in the absence of Partnership agreement between partners? 2000, 2002, 2009, 2011, 2014

Q.4. Mention three Rights and Duties of Partners.           2009, 2014, 2022, 2023, 2024

Q.5. What are various types of partners and partnership?

Q.6. What is Profit and Loss Appropriation Account? Mention its purpose and features. Distinguish between profit and loss account and profit and loss appropriation account.        2020, 2022, 2023, 2024, 2025

Q.7. What is fixed and fluctuating capital? Distinguish between them. Give two circumstances under which the fixed capitals of partners may change.  2007, 2020, 2022, 2024, 2025

Q.8. What is current account? Mention three differences between ‘Capital account’ and ‘Current account’. 2023

Q.9. Mention the adjustment entries for P/L appropriation account.                       1999, 2003, 2012,

Q.10. What do you mean by Guarantee in Partnership and Past Adjustments? 2025

Q.11. What is Joint Venture? Write two similarities and difference between Joint venture and Partnership.

Unit – 2: Reconstitution of Partnership (Admission of a Partner)

Q.1. What do you mean by “Reconstitution of a Partnership”? Under what situations it takes place? Explain them.          2012

Q.2. What is revaluation and revaluation account? When and Why revaluation of Assets and Liabilities are done in Partnership Business?   2013, 2023, 2024

Q.3. What is Memorandum Revaluation Account? Distinguish between Revaluation and Memorandum revaluation account?

Q.4. What do you mean admission of a partner? Why a New Partner is admitted into Partnership? Also mention its effect.  2025

Q.5. What is Sacrifice and Gaining Ratio? Distinguish between them.                     2008, 2010, 2012, 2013, 2015, 2020

Q.6. Define Hidden Goodwill and Joint Life Policy.                           2007, 2009, 2013, 2014

Q.7. Explain the treatment of accumulated profits or losses at the time of reconstitution of the firm.

Q.8. What is Premium for Goodwill? Explain the treatment of goodwill at the time of admission of a new partner.

Q.9. What do you mean by Goodwill? What are its various types? Why it is valued?   2017, 2019, 2023

Q.10. What are various characteristics of goodwill? What are the factors affecting the value of goodwill? 2022

Q.11. Explain various methods for valuation of Goodwill.            2008, 2013, 2015, 2017, 2023, 2024

Q.12. How the adjustment of capitals is made at the time of admission of a new partner?  2023

Unit – 3: Reconstitution of Partnership (Retirement and Death of a Partner)

Q.1. What do you mean by retirement of partner? Mention the causes and effect of retirement of partner. How the amount due to retiring Partner is calculated?     2013, 2016, 2017, 2023, 2025

Q.2. Explain the liability of retiring partner. What adjustments are necessary at the time of admission, retirement or death of a partner?

Q.3. How the amount due to the executors of Deceased Partner is calculated? 2014, 2016, 2024

Q.4. Explain the provisions of Sec.37 of the Partnership Act regarding payment of the amount due to the executors of the deceased partner?

Q.5. How deceased partner’s share of profit upto the date of death is calculated?           2014

Q.6. What is Premium for Goodwill? Explain the treatment of goodwill in case of retirement and death of a new partner. Why retiring and deceased partner is entitled to share goodwill of the firm?  2025

Unit – 4: Dissolution of Partnership Firms (1+2+5 or 8)

Q.1. What do you mean by Dissolution of Partnership and Dissolution of Partnership Firm? Distinguish between them.                                2012, 2015, 2018, 2020, 2022, 2024

Q.2. What are various mode of dissolution of a Partnership Firm including order of court? Explain them briefly.  2011, 2014, 2016, 2019, 2020, 2022, 2023, 2024, 2025

Q.3. What is Realisation Account? Mention its objectives. Distinguish between realisation account and revaluation account.  2017, 2019, 2022, 2025

Q.4. What are unrecorded assets and unrecorded liabilities? Explain its treatment in realisation account.

Q.5. How are the accounts settled between partners on the dissolution of a partnership firm?                  2015

Unit – 5: Accounting for Share Capital (2+5+8)

Q.1. Define the term Company. Mention its features.    2001, 2009

Q.2. What do you mean by shares? What are its various types? Explain them.   1999, 2000, 2016, 2017, 2020, 2025

Q.3. Distinguish between the following:

(a) Partnership Firm and Joint Stock Company

(b) Equity Shares and Preference Shares 1999, 2005, 2009, 2012, 2023, 2024

(c) Shares and Debentures 2002, 2004, 2006, 2008, 2010, 2012, 2014, 2016, 2017, 2018, 2020, 2022, 2023, 2024

(d) Shares and Stock

(e) Difference between Private company and Public company

Q.4. What is Share Capital? Mention its various categories.         2014, 2019, 2023, 2025

Q.5. What are the various purposes for which Securities Premium can be utilised? 2003, 08, 12, 13, 2020, 2022, 2024, 2025

Q.6. Can a company issue shares at discount? If yes, under what conditions?                     2003, 2014

Q. 7. What is Reserve Capital and Capital Reserve? Distinguish between them.                 2017, 2018, 2022

Q.8. What Statutory and Statistical Books? Give examples of such books.                             2004, 2008, 2014

Q.9. What do you mean by forfeiture of shares and re-issue of shares? How shares are forfeited and re-issued? 2012, 2015, 2016, 2018, 2019, 2023, 2024

Q.10. Briefly explain various types of company.

Q.11. Explain the concept of issue of shares at par, at a premium and at a discounted price.                       2017

Q. 12. Write short notes on:                                                                       2016

1. Right Issue:

2. Calls-in-Arrears:                          2018, 2019, 2022, 2023

3. Calls-in-Advance: 2018, 2020, 2023, 2024

4. Minimum Subscription            2017, 2019, 2022

5. Under Subscription, Oversubscription and Pro-rata allotment:             2018, 2019, 2020, 2022, 2023, 2025

6. Under subscription:                   2018, 2020, 2025

7. Sweat Equity Shares:

8. Issue of Shares in consideration other than cash:

9. Preliminary Expenses:           2017

10. Bonus shares:

11. Buy-back of shares:   2025

12. Employees stock option plan (ESOP):

13. Methods of raising capital:

Unit – 6: Accounting for Debentures (Issue and Redemption) (2+8)

Q.1. What do you mean by “Debentures” and “Bonds”? Mention its features. What are its advantages and disadvantages? 2007, 2013, 2015, 2017, 2018, 2022

Q.2. What are various Types of Debentures? Explain them briefly.          2018, 2023, 2025

Q.3. What do you mean by Issue of Debenture as Collateral Security? Explain its accounting treatment.  2023

Q.4. What do you mean by Redemption of Debentures? Explain its sources and Methods.  2012, 14, 15, 17, 19, 00, 2022 

Q.5. What do you mean by “Discount on Issue of Debenture” and “Loss on Issue of Debenture”? Explain its treatment.                2012, 2013, 2014, 2019

Q.6. What is Sinking Fund? Why and How it is created?                 2013

Q.7. What is Debenture Trust Deed and Zero coupon bonds/Debentures?

Q.8. Explain the provisions of Debenture Redemption Reserve (DRR) according to the Indian Companies Act, 2013.

Q.9. What are various terms for issue and redemption of debentures?

Part B

Unit – 7: Financial Statements of a Company (1+3+3)

Q.1. Explain the term “Financial Statements”. What are its Ideal Characteristics?    2012, 16, 17, 19, 2025

Q.2. What are various types of financial statements? Explain them.                        2016, 2023

Q.3. Draft a Format of Revised Balance Sheet of a Company and Statement of Profit and Loss.   (MOST IMPORTANT PART)                    2012, 2013, 2014, 2015, 2016, 2017, 2018, 2020, 2024

Q.4. Explain the objectives and purpose of preparing various types of financial statements. 2019, 2020, 2022, 2023, 2024, 2025

Q.5. Who are the users of Financial Statement? What types of information provided by it?

Q.6. Explain the importance and limitations of financial statements.      2012, 2013, 2015, 2016, 2023

Q.7. What are contingent liabilities? Mention two items included under this head?         2013, 2019

Q.6. Difference between Balance Sheet of a Company and Balance sheet of a Partnership Firm. 2015

Unit – 8: Analysis of Financial Statements (3+5)

Q.1. What is financial analysis? What are its significance and Limitations (5 Points)? 2012, 2013, 2016, 2024, 2025

Q.2. What are various types of Financial Analysis?                           2012

Q.3. Who are the parties interested in financial analysis?

Q.4. What are various tools of Financial Analysis? Explain them with their respective objectives, merits and limitations.  2023, 2024

a)       Comparative balance sheets and income statements                               2016, 2018, 2019, 2022, 2024

b)      Common size statements,                                    2015, 2017, 2018, 2020

c)       Trend analysis,                                                          2014, 2017

d)      Ratio analysis,

e)      Cash flow analysis.

Q.5. What is window dressing of financial statements? How does it affect the analysis of financial statements?

Unit – 9: Ratio Analysis (3+5)

Q.N.1. what do you mean by ratio analysis? What are the objectives and advantages of such analysis? Also point out the limitations of ratio analysis.               2012, 2012, 2018, 2020, 2022, 2024

Q.N.2. What are the types of Ratios according to traditional classification?                         2016, 2017

Q.N.3. Explain the meaning and method of calculation of some specific ratios.

a) Current Ratio:

b) Liquid Ratio: 2022

c) Gross Profit Ratio: 2019, 2022

d) Net Profit Ratio:

e) Operating Profit Ratio: 2019

f) Operating Ratio:

g) Return on Investment or Return on Capital Employed:

h) Return on Equity:

i) Earnings Per Share:

j) Price-earning Ratio:

k) Debt-Equity Ratio: 2022

l) Proprietary Ratio:

m) Capital Turnover Ratio:

n) Fixed Assets Turnover Ratio:

o) Working Capital Turnover Ratio:

p) Stock Turnover Ratio: 2022

q) Debtors’ Turnover Ratio:

r) Debt Collection Period:

s) Creditor’ Turnover Ratio:

t) Average Payment Period:

Unit – 10: Cash Flow Statement (5)

Q.1. What is Cash Flow Statement? What are its objectives and features? Mention its uses and Limitations. 2012, 13, 15, 16, 17, 19, 20, 2022, 2023, 2024, 2025

Q.2. How cash flow statement is prepared? Or What are various classification of Cash flows? Give four examples of each.                     2013, 2017, 2018, 2022, 2023, 2025

Q.3. Explain the method of calculating “Cash flows from Operating Activities” under direct and indirect method. 2022

Q.4. What is cash and cash equivalents? 2023, 2024

CHAPTERWISE PRACTICAL IMPORTANT QUESTIONS