Grade 12 NEB Accounts MCQ and Test Question From Final Accounts

Q26. Transfer to General Reserve (for a sole proprietorship) is shown in:#26 Hard

a) P&L A/c (Debit) and shown in B/S under Capital
b) Trading A/c (Debit)
c) P&L Appropriation A/c (Debit)
d) Not recorded

✅ a) P&L A/c (Debit) and shown in B/S under Capital
For sole traders, appropriations are often made directly from net profit in P&L and accumulated in capital/reserve.

Q27. Under-stated opening stock will:#27 Hard

a) Overstate current period GP
b) Understate current period GP
c) No effect on GP
d) Only affect Balance Sheet

✅ a) Overstate current period GP
Lower opening stock reduces COGS, artificially increasing gross profit.

Q28. Which item is added to purchases to compute Cost of Goods Available for Sale?#28 Hard

a) Sales return
b) Carriage inward
c) Carriage outward
d) Discount allowed

✅ b) Carriage inward
COG Available = Opening Stock + Net Purchases + Direct Expenses (e.g., carriage inward) before deducting closing stock.

Q29. Net profit transferred to P&L Appropriation A/c is computed as:#29 Hard

a) Gross Profit less direct expenses
b) Gross Profit less indirect expenses plus other incomes
c) Sales less purchases only
d) Capital plus drawings

✅ b) Gross Profit less indirect expenses plus other incomes
Net profit from P&L (after adjusting indirect items) is transferred to Appropriation A/c for distribution.

Q30. In a partnership, the order of appropriation is generally:#30 Hard

a) Divisible profit → Interest on capital → Partners’ salary → Reserves
b) Net profit → Partners’ salary → Interest on capital → Reserves → Distribution
c) Net profit → Reserves → Office expenses → Dividend
d) Net profit → Trading expenses → Distribution

✅ b) Net profit → Partners’ salary → Interest on capital → Reserves → Distribution
Appropriation starts with net profit from P&L and then allocates as per agreement before dividing the balance among partners.

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