VIKAS COMMERCE TUTORIALS

2 MARKS IMPORTANT QUESTIONS WITH ANSWERS 2ND PU ACCOUNTANCY (2023-24 Batch)

2 Marks questions come from the following chapters – 1,3,5,7,10

Chapter 01- Partnership – Basic Concepts-

1. Define Partnership.
Ans- According to Indian partnership act 1932 “Partnership is the relation between 2 or more persons who
have agreed to share profits of a business carried on by all or any of them acting for all”
2. State the 2 methods of maintaining Partner’s capital accounts.
Ans- 1. Fixed Capital Method 2. Fluctuating Capital Method
3. What do you mean by Fixed Capital Method?
Ans- Under this method all adjustments like interest on capital, interest on drawings, salary etc are not
made to partners capital account. Here the capital remains fixed.
4. What do you mean by Fluctuating Capital Method?
Ans- Under this method all adjustments like interest on capital, interest on drawings, salary etc are made to
partners capital account. Here the capital changes every year.
5. Any 2 contents of partnership deed.
Ans- 1. Nmae of the Firm 2. Name and address of all partners 3. Nature of business

Chapter 03- Retirement & Death of a Partner

1. State ant 2 circumstances when a partner retires from the firm.

Ans- 1. When he attains retirement age 2. When he falls ill.
2. What is Goodwill?
Ans- goodwill is the value of good name of a business enterprise, over a period of time, for having a good
reputation.
3. What is gain ratio?
Ans- Gain ratio is the ratio in which the old partners gain a certain share, after retirement or death of a
partner. Formula – Gain Ratio = New Ratio - Old Ratio

Chapter 05 – Accounting for Share Capital

1. What is forfeiture of shares?

Ans- Forfeiture of shares means cancellation of rights if the shareholders for nonpayment of Call
Money.
2. State 2 categories of Share Capital.
Ans- 1. Authorised Share 2. Issued share capital 3. Subscribed capital
3. What is a Company?
Ans- A company registered under companies act 2013 or any other earlier act, is called a
Company
4. What is minimum subscription?
Ans- Minimum Subscription is the amount that the company has to get from its shareholders in
order to commence the business.
5. State 2 differences between Private & Public Company.
Ans- Private Company- Minimum Members-02 Maximum Members-200
 Public Company- Minimum Members-07 Maximum Members-Unlimited

Chapter 07 – Financial Statements of a Company

1. State any 2 objectives of financial statements.

Ans- To provide information about earning capacity of business
To provide information about economic resources
2. What do you mean by financial statements?
Ans- financial statements are the basic formal & annual reports through which the company
communicates the financial information to its stakeholders.
3. Mention any 2 types of financial statements.
Ans- Statement of Profit & Loss
Statement of Balance Sheet

Chapter 10 – Financial Statements of a Company

1. What is cash flow statement?

Ans- Cash flow statement is a statement showing inflows & outflows of cash & cash equivalents
from operating, investing & financing activities of a company.
2. State any 2 uses of cash flow statements.
Ans- Helps in finding the liquidity of enterprise
Helps to find the cash flows to be generated in the enterprise
3. State any 2 objectives of cash flow statements.
Ans- To provide information about cash flows
To ascertain amount & certainty of cash flows
4. Mention any 2 activities classified as per AS3.
Ans- Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities