CHSE ACCOUNTANCY PREVIOUS YEAR QUESTION PAPER

 CHSE accountancy previous year questions 12th class odisha

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CHAPTERWISE IMPORTANT QUESTIONS

Chapter 1- Company Accounts Financial Statements of Not-for-Profit Organisations

1.Define Non-for-Profit Organization.

Answer: The Non-for-Profit Organization is an organisation which does not intend to make any profit and are exempted from paying tax. These organizations are basically formed for religious, educational, cultural, charitable, public service to the public or special cause. The Non-for-Profit organisation is also known as a Non-Profit Organization.

2.Mention the important features of Income and Expenditure Account

Answer: The important features of Income and Expenditure Account are:

Income and Expenditure Account is a nominal account

It does not record any capital items

Revenue expenditure of current year is recorded on the Debit side and all the revenue receipts of current year on the Credit side.

Only current period items are recorded.

3.Explain three features of Not-for-Profit Organization.

Answer: The features of the Not-for-Profit Organization are.

Service- Its objective is to render service to any individual or a group or work for a cause without any expectation of return or profit.

Separate legal entity- The organisation is established as a trust or a charitable society. Therefore, it does not have an individual or group of an individual as an owner but belongs to society. It exists as a separate entity.

Source of Income: The source of income for a non profit organisation are donations, grants by government,memberships etc.

Chapter 2- Accounting for Partnership Firms- Fundamentals

4.Define Partnership.

Answer:A partnership agreement is an agreement between two or more individuals who sign a contract to start a profitable business together. In the Partnership agreement, the partners are equally responsible for the debt of an organisation. Even if one person withdraws his/her partnership, they are liable for an already existing debt, and future liability if they do not provide with proper notice of retirement. Sometimes, a partnership can also exist without signing any scripted agreement, in such cases law that regulates partnership would apply.

5.Explain the importance of partnership agreement

Answer: A partnership agreement is vital to keep away the disagreement, confusion or any changes that might occur in the course of business tenure. Below are a few points that describe why a partnership agreement is essential:

To form distinguished roles and responsibilities for each partner.

To avoid tax problems, the tax status shows that the partner is dispensing profits to each partner based on accounting practice and acceptable tax.

To avoid liability and legal issue, if there is any with any of the partners.

It helps to deal with any lifestyle or circumstance changes of any partners. They usually deal with buy-out agreement with individual partners.

To surpass non-compete agreements and conflict of interest with partners.

To overrule the state law

Chapter 3- Goodwill- Nature and Valuation

6.Define Goodwill.

Answer: Goodwill is an intangible asset which places an enterprise at an advantageous position due to which an enterprise is able to earn higher profits without putting extra effort.

7.Give two features of goodwill.

Answer: The two features of goodwill are

It is an intangible asset. It does not have any physical existence

It helps in earning higher profits

7.What is the need for valuation of goodwill?

Answer: The need for valuation of goodwill arises.

When there is a change in the profit-sharing ratio

When a new partner is admitted

When a partner retires or dies

When a partnership firm is sold as a going concern

When two or more firms/partners amalgamates

When a partnership firm is converted into a company

Chapter 4- Change in Profit – Sharing Ratio Among the Existing Partners

8.Define Sacrificing ratio.

Answer: Sacrificing ratios is the ratio in which one or more partners of a company sacrifice their share of profit in favour of one or more partners of the firm.

9.How sacrificing the share of each partner is calculated.

Answer: The sacrificing share of each partner is calculated as follows:

Sacrificed Share= Old Share – New Share

10.Define Gaining ratio.

Answer: Gaining ratios is the ratio in which one or more partners gain a share of profit as a result of sacrificed share in profits by one or more partners of a company.

Chapter 5- Admission of a Partner

11.Define admission of partners.

Answer: Admission of a partner is a mode of reconstituting the firm because, with the admission of a partner, the existing agreement ends and new agreement among all the partners comes into force.

12.What is a new profit-sharing ratio?

Answer: A new profit-sharing ratio is a ratio which all partners along with fresh or incoming partner, will distribute future profit and loss of the business.

Chapter 6- Retirement/Death of a Partner

13.Explain Retirement of a partner.

Answer: Retirement of partner refers to retiring from the partnership, i.e., ceasing to be a partner of the enterprise. A partner may retire from the firm anytime in the following scenarios:

If there exists an agreement to that effect

If all the partners agree to his retirement
sharing ratio

14.What is Gaining Ratio?

Answer: Gaining Ratio is such type of ratio in which partners have agreed to gain their share of profit from the other partners of the firm.

Chapter 7- Dissolution of Partnership Firm

15.Define the new profit sharing ratio.

Answer: New pprofsharing ratio is the ratio by which existing partner and new partner will share proits and losses of the firm.

16.What does Dissolution of Firm mean?

Answer: Dissolution of Firm means closure of the enterprise and end of the business association among all the partners.

17.What are the modes of Dissolution of Firm?

Answer: The modes by which a Firm can be dissolved are:

Mutual agreement

Compulsory dissolution

By notice

The occurrence of an event

Dissolution by court


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