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Free Practice Questions for Kerala Plus Two Accountancy with AFS (DHSE)

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Exam Review

Key Facts: Kerala Plus Two Accountancy with AFS (DHSE) Exam

~2.5 hours

Typical Kerala Plus Two Accountancy with AFS Terminal Evaluation theory duration (incl. cool-off as notified)

DHSE Higher Secondary exam logistics

80 + 20

Common TE + CE mark split for non-practical Plus Two subjects including Accountancy with AFS

DHSE TE+CE pattern for non-practical subjects

511/512

Official ACCOUNTANCY WITH AFS course codes on beta.hseportal.kerala.gov.in

Kerala HSE subject catalog (beta portal)

Commerce

Accountancy with AFS is a core Plus Two Commerce stream elective under DHSE

Kerala HSE subject-combination practice

~30%

Commonly stated Kerala Higher Secondary subject pass floor (D+; confirm TE minimum yearly)

DHSE Plus Two pass criteria practice

English MCQ adaptation

This free local bank is not the official Plus Two TE paper format

OpenExamPrep practice policy

Kerala DHSE Plus Two Accountancy with AFS (codes 511/512) is a Class 12 Commerce public-exam theory elective of about 2.5 hours (commonly TE 80 + CE 20) with a ~30% pass floor, covering partnership through cash flow — not a pure MCQ board paper. This free 2026 bank is an English MCQ study adaptation for NCERT/DHSE-focused Plus Two Accountancy concepts and numericals.

Sample Kerala Plus Two Accountancy with AFS (DHSE) Practice Questions

Try these sample questions to review concepts for the Kerala Plus Two Accountancy with AFS (DHSE) exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In the absence of a partnership deed, partners share profits and losses:
A.In the ratio of their capital contributions
B.Equally
C.In the ratio of time devoted
D.As decided by the managing partner
Explanation: The Indian Partnership Act, 1932 provides that, in the absence of an agreement, partners share profits and losses equally, irrespective of capital contributions or time devoted.
2In the absence of a partnership deed, interest on partners' capital is:
A.Allowed at 6% per annum
B.Allowed at 12% per annum
C.Not allowed
D.Allowed only on fixed capitals
Explanation: Without an agreement, no interest on capital is payable. Interest on capital is allowed only if the partnership deed provides for it (and usually only out of profits).
3Interest on a partner's loan to the firm, in the absence of agreement, is allowed at:
A.5% per annum
B.6% per annum
C.8% per annum
D.12% per annum
Explanation: Section 13 of the Indian Partnership Act provides for interest at 6% p.a. on a partner's loan when the deed is silent. This is charged as an expense of the firm.
4Under the fixed capital method, interest on capital is credited to:
A.Partners' Capital Accounts
B.Partners' Current Accounts
C.Profit and Loss Account only
D.Drawings Account
Explanation: With fixed capitals, capital accounts remain at the agreed fixed amounts. Adjustments such as interest on capital, share of profit, and drawings pass through Partners' Current Accounts.
5A and B share profits equally. Capitals: A Rs 1,00,000; B Rs 60,000. Interest on capital is 10% p.a. as per deed, allowed only out of profits. Profit before interest is Rs 12,000. Interest allowed will be:
A.A Rs 10,000; B Rs 6,000
B.A Rs 7,500; B Rs 4,500
C.A Rs 6,000; B Rs 6,000
D.A Rs 12,000; B Rs 0
Explanation: Full interest would be A Rs 10,000 + B Rs 6,000 = Rs 16,000, but available profit is only Rs 12,000. Interest is restricted in the ratio of interest claims 10:6 (5:3). A gets 5/8 x 12,000 = Rs 7,500; B gets 3/8 x 12,000 = Rs 4,500.
6Drawings of Rs 10,000 made on 1 July. Interest on drawings is 12% p.a. and books close on 31 March. Interest on drawings is:
A.Rs 1,200
B.Rs 900
C.Rs 600
D.Rs 300
Explanation: Period from 1 July to 31 March is 9 months. Interest = 10,000 x 12% x 9/12 = Rs 900.
7When partners use fluctuating capital accounts, partners' drawings are:
A.Debited to Partners' Current Accounts
B.Debited to Partners' Capital Accounts
C.Credited to Partners' Capital Accounts
D.Not recorded in partners' accounts
Explanation: Under the fluctuating capital method there is usually no separate current account. All adjustments including drawings, interest, salary, and profit share are made in the Capital Accounts. Drawings are debited to Capital Accounts.
8A guarantee that a partner will receive a minimum profit means that any deficiency is borne by:
A.The firm as a business expense
B.The guaranteeing partner(s) as agreed
C.The government
D.Only the partner with the largest capital
Explanation: When a partner is guaranteed a minimum share of profit, any shortfall is met by the partner(s) who gave the guarantee, in the agreed manner (often in their profit-sharing ratio among themselves).
9Past adjustments for omitted interest on capital are generally made through:
A.Revaluation Account
B.Partners' Capital (or Current) Accounts with a single adjusting entry
C.Realisation Account
D.Cash Account only
Explanation: Errors or omissions relating to interest, salary, or profit distribution for prior periods are corrected by adjusting partners' capital/current accounts (often via Profit and Loss Adjustment Account), not through revaluation or realisation.
10A, B and C are partners sharing profits 2:2:1. C is guaranteed a minimum profit of Rs 50,000. Firm's profit is Rs 1,80,000. C's actual share before guarantee is Rs 36,000. Deficiency of Rs 14,000 is borne by A and B equally as per deed. Profit credited to A will be:
A.Rs 72,000
B.Rs 65,000
C.Rs 58,000
D.Rs 79,000
Explanation: Profit before guarantee: A 2/5 x 1,80,000 = Rs 72,000; B Rs 72,000; C Rs 36,000. C needs Rs 50,000, so deficiency Rs 14,000 is borne equally by A and B (Rs 7,000 each). A's final share = 72,000 - 7,000 = Rs 65,000; B Rs 65,000; C Rs 50,000.

About the Kerala Plus Two Accountancy with AFS (DHSE) Exam

Kerala Plus Two Accountancy with Analysis of Financial Statements under DHSE covers Class 12 Accountancy aligned to NCERT Class 12 Accountancy and SCERT/DHSE Higher Secondary syllabi for Commerce (ACCOUNTANCY WITH AFS; codes 511/512). Core topics include partnership basic concepts, admission, retirement and death, dissolution, share capital, debentures, financial statements of a company, analysis of financial statements, accounting ratios, and cash flow statement. Official assessment is Terminal Evaluation (TE) theory of about 2–2.5 hours (commonly TE 80 + CE 20). This free local bank provides English four-option MCQs for revision and numerical application; pair it with official blueprints and written answers via dhsekerala.gov.in and beta.hseportal.kerala.gov.in.

Exam sponsor: Directorate of Higher Secondary Education (DHSE) / Directorate of General Education, Government of Kerala. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Kerala DHSE Plus Two Accountancy with Analysis of Financial Statements is a Class 12 Commerce theory elective under the Higher Secondary public examination (official course title ACCOUNTANCY WITH AFS; codes 511/512). Official logistics for non-practical subjects commonly describe Terminal Evaluation (TE) 80 marks plus Continuous Evaluation (CE) 20 marks, with theory duration about 2 to 2.5 hours including cool-off. Syllabus is NCERT Class 12 Accountancy-aligned: Partnership basic concepts, admission, retirement/death, dissolution; share capital; debentures; financial statements of a company; analysis of financial statements; accounting ratios; cash flow statement. English/Malayalam medium materials are typical; this practice bank is an English-language MCQ study adaptation. Confirm the current blueprint, model papers, and circulars on dhsekerala.gov.in and beta.hseportal.kerala.gov.in.

Time Limit

About 2.5 hours

Passing Score

About 30%

Exam / Certification Fees

As notified by DHSE and paid through affiliated Higher Secondary schools for regular and improvement/SAY sittings (no single fixed public subject fee for all categories).

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

~10% of this local bank

Partnership — Basic Concepts

Deed, capitals, interest on capital/drawings, profit sharing, guarantee, and past adjustments.

~12% of this local bank

Admission of a Partner

New/sacrificing ratios, goodwill, revaluation, reserves, and capital adjustments.

~10% of this local bank

Retirement and Death of a Partner

Gaining ratio, goodwill, revaluation, claim settlement, and executor’s account.

~8% of this local bank

Dissolution of Partnership Firm

Realisation account, liability settlement, capital accounts, and insolvency basics.

~12% of this local bank

Accounting for Share Capital

Issue, calls, premium, forfeiture, reissue, and pro-rata allotment.

~10% of this local bank

Issue and Redemption of Debentures

Types, issue at par/premium/discount, interest, and redemption methods.

~8% of this local bank

Financial Statements of a Company

Company balance sheet and statement of profit and loss presentation.

~8% of this local bank

Analysis of Financial Statements

Comparative, common-size, and trend analysis tools.

~12% of this local bank

Accounting Ratios

Liquidity, solvency, activity, and profitability ratios with interpretation.

~10% of this local bank

Cash Flow Statement

Operating, investing, and financing activities and indirect-method adjustments.

Preparing for the Kerala Plus Two Accountancy with AFS (DHSE) Exam

What You Need to Know

  • Passing score: About 30%
  • Assessment: Kerala DHSE Plus Two Accountancy with Analysis of Financial Statements is a Class 12 Commerce theory elective under the Higher Secondary public examination (official course title ACCOUNTANCY WITH AFS; codes 511/512). Official logistics for non-practical subjects commonly describe Terminal Evaluation (TE) 80 marks plus Continuous Evaluation (CE) 20 marks, with theory duration about 2 to 2.5 hours including cool-off. Syllabus is NCERT Class 12 Accountancy-aligned: Partnership basic concepts, admission, retirement/death, dissolution; share capital; debentures; financial statements of a company; analysis of financial statements; accounting ratios; cash flow statement. English/Malayalam medium materials are typical; this practice bank is an English-language MCQ study adaptation. Confirm the current blueprint, model papers, and circulars on dhsekerala.gov.in and beta.hseportal.kerala.gov.in.
  • Time limit: About 2.5 hours
  • Exam / certification fees: As notified by DHSE and paid through affiliated Higher Secondary schools for regular and improvement/SAY sittings (no single fixed public subject fee for all categories). Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

Kerala Plus Two Accountancy with AFS (DHSE): Suggested Study Strategy

1Learn partnership deed defaults (interest on capital, drawings, profit sharing) before attempting past-adjustment numericals.
2Always compute new ratio, sacrificing ratio, and gaining ratio carefully — wrong ratios cascade through goodwill and capital adjustments.
3For goodwill, practise average profit, super profit, and capitalisation methods with clear normal-rate assumptions.
4On admission/retirement, complete revaluation and reserve distribution before adjusting capitals to the new ratio.
5For share capital, sequence application → allotment → calls → forfeiture → reissue without mixing Securities Premium with Share Capital.
6Memorise formula sets for current ratio, quick ratio, debt-equity, inventory turnover, trade receivables turnover, gross/net profit, and ROI before timed drills.
7For cash flow (indirect method), start from profit before tax and systematically adjust non-cash items, working-capital changes, and classify investing/financing flows under AS-3 style rules.
8Use current DHSE Plus Two Accountancy with AFS blueprints and model papers from dhsekerala.gov.in / beta.hseportal.kerala.gov.in to allocate revision time between TE objective/subjective sections and CE activities.

Frequently Asked Questions

How is Kerala Plus Two Accountancy with Analysis of Financial Statements officially examined?

Accountancy with AFS is examined under the Kerala Higher Secondary (Plus Two) public examination as a Class 12 Commerce theory elective (official course title ACCOUNTANCY WITH AFS; codes 511/512 on beta.hseportal.kerala.gov.in). Official logistics for non-practical subjects commonly describe Terminal Evaluation (TE) 80 marks plus Continuous Evaluation (CE) 20 marks, with theory duration about 2 to 2.5 hours including cool-off. Confirm the year’s blueprint, model papers, date sheet, and circulars on dhsekerala.gov.in and beta.hseportal.kerala.gov.in.

Is this practice bank the same format as the official Plus Two Accountancy paper?

No. Official DHSE Plus Two Accountancy with AFS Terminal Evaluation papers mix objective-style items, short/long theory, and multi-step journal/ledger/numerical problems, and include Continuous Evaluation. This bank is an English-language multiple-choice study adaptation for concepts and numerical application only — not an official translation, blueprint replica, or full written-paper simulation.

What syllabus does this bank follow?

It is aligned to NCERT Class 12 Accountancy / Kerala Plus Two Accountancy with Analysis of Financial Statements (Commerce) scope: Part I Partnership Accounts (basic concepts, admission, retirement/death, dissolution) and Part II Company Accounts & Analysis of Financial Statements (share capital, debentures, financial statements of a company, analysis of financial statements, accounting ratios, cash flow statement).

What is the pass mark for Kerala Plus Two Accountancy with AFS?

Kerala Higher Secondary pass criteria commonly require about 30% overall (D+ or above) with a separate minimum in Terminal Evaluation (TE). Always verify the current DHSE notification for exact criteria for your sitting.

Are English and Malayalam mediums used for Accountancy with AFS?

Yes. English and Malayalam media are common for Kerala Higher Secondary Commerce subjects including Accountancy with AFS. This free local bank is English-only MCQ practice; use school textbooks and official materials for Malayalam medium wording where needed.

Where should I check official blueprints and model papers?

Use the DHSE site at dhsekerala.gov.in and the Higher Secondary portals at beta.hseportal.kerala.gov.in and hseportal.kerala.gov.in for Plus Two Accountancy with AFS blueprints, model question papers, and exam circulars. SCERT Kerala publishes curriculum-related materials at scert.kerala.gov.in.

Do fees for Plus Two Accountancy go through schools?

Yes. Examination fees are notified by DHSE and are typically paid through affiliated Higher Secondary schools for regular candidates; amounts and categories (regular vs improvement/SAY) vary by session. Confirm the current fee circular rather than relying on a fixed public marketplace price.