Important Theoretical Questions for ISC Board Examination Accountancy:

1. Give the accounting treatment in the books of a co-venturer under the Memorandum Joint
Venture Method, when he takes over the unsold stock.
2. What is the minimum price at which a company can reissue its forfeited shares which were
originally issued at par?
4. Differentiate between fixed capital method and fluctuating capital method.
5. Explain issue of debentures as collateral security?
6. Differentiate between Revaluation Account and Realization Account.
7. Give the adjusting and closing entry for interest on calls in arrears due from a share
holder.
8. State the provisions of the Indian Partnership Act, 1932, regarding charging of interest on
drawings/loan/capital from a partner when:
a) The firm has a partnership deed.
b) The firm does not have a partnership deed.
9. What is meant by number of years’ purchase in the valuation of a firm’s goodwill?
10. Why is premium received on the issue of debentures considered a capital profit?
11. Give two differences between Net Profit and Cash from Operations.
12. Give two differences between Authorized Capital and Issued Capital.
13. Why is the word memorandum affixed to the Memorandum Joint Venture Account?
14. What is the accounting treatment of Employees’ Provident Fund appearing in the
Balance Sheet of a partnership firm at the time of its dissolution?
15. Give two differences between Reserve Capital and Capital Reserve.
16. What accounting steps are taken by a partnership firm when a new partner is unable to
bring the business guaranteed by him?
17. State any two uses of Securities Premium as stated in Section 78 of the Companies Act,
1956.
18. Give two differences between Sacrificing Ratio and Gaining Ratio.
19. In case of a Joint Venture business, how is abnormal loss of goods which have been
insured, treated in the books of accounts?
20. State two differences between average profits and super profits.
21. State two differences between current ratio and quick ratio.
22. List any two types of operating/investing/financing activities.
23. Differentiate between dissolution of firm and dissolution of partnership.
24. Explain the various factors affecting goodwill valuation.
25. What is meant by Operating Cycle?