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100+ Free UPMSP Intermediate Accountancy Practice Questions

Prepare for the Uttar Pradesh UPMSP Intermediate (Class 12) Accountancy — Code 156 exam with instant access — no signup required.

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2026 Statistics

Key Facts: UPMSP Intermediate Accountancy Exam

100

Practice questions available in this study module

OpenExamPrep

Code 156

Official UPMSP Subject Code for Intermediate Accountancy

UPMSP Board Curriculum

6% p.a.

Statutory interest rate on partner's loan in absence of partnership deed

Indian Partnership Act 1932 (Section 13d)

Companies Act 2013

Governing statutory framework for corporate share capital and financial statement preparation

Ministry of Corporate Affairs / NCERT Class 12

AS-3 (Revised)

Mandatory Accounting Standard governing Cash Flow Statement preparation

ICAI / UPMSP Class 12 Syllabus

33%

Minimum pass percentage required in UPMSP Board Intermediate examination

UPMSP Examination Regulations

Comprehensive English MCQ prep for UPMSP Class 12 Accountancy (Code 156) covering partnership reconstitution, share capital, debentures, ratio analysis, and cash flow statements.

Sample UPMSP Intermediate Accountancy Practice Questions

Try these sample questions to test your UPMSP Intermediate Accountancy exam readiness. 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 written partnership deed, what is the statutory rate of interest allowed on a loan advanced by a partner to the firm according to the Indian Partnership Act, 1932?
A.6% per annum simple interest
B.12% per annum compound interest
C.5% per annum simple interest
D.No interest is allowed on partner's loan
Explanation: According to Section 13(d) of the Indian Partnership Act, 1932, if the partnership deed is silent, a partner advancing money beyond capital is entitled to interest at 6% per annum. This interest is a charge against profits and must be paid irrespective of profits or losses.
2What is the accounting nature of the Profit and Loss Appropriation Account prepared by a partnership firm?
A.Real Account
B.Nominal Account
C.Personal Account
D.Representative Personal Account
Explanation: The Profit and Loss Appropriation Account is a Nominal Account because it records incomes and gains credited (like net profit and interest on drawings) and expenses/appropriations debited (like interest on capital, partner salaries, and reserves). It is an extension of the Profit and Loss Account.
3When partners maintain Fixed Capital Accounts, where is the interest on capital credited?
A.Partner's Capital Account
B.Partner's Current Account
C.Profit and Loss Account
D.Firm's General Reserve Account
Explanation: Under the Fixed Capital Method, the main Capital Account remains unchanged except for permanent capital introductions or withdrawals. All routine adjustments including interest on capital, drawings, interest on drawings, and profit share are recorded in the Partner's Current Account.
4What is the minimum number of persons required to form a partnership under the Indian Partnership Act, 1932?
A.1 person
B.2 persons
C.7 persons
D.10 persons
Explanation: A partnership is defined as an association of two or more persons under Section 4 of the Indian Partnership Act, 1932. Therefore, at least two competent persons are required to execute a valid partnership agreement.
5What is the maximum limit on the number of partners in a firm as prescribed under Rule 10 of the Companies (Miscellaneous) Rules, 2014?
A.20 partners
B.50 partners
C.100 partners
D.200 partners
Explanation: Section 464 of the Companies Act, 2013 empowers the Central Government to prescribe maximum partners up to 100. Rule 10 of the Companies (Miscellaneous) Rules, 2014 currently sets this limit at 50 partners for partnership firms.
6A firm earns an average profit of Rs 50,000. What is the value of goodwill based on 3 years' purchase of average profit?
A.Rs 1,00,000
B.Rs 1,50,000
C.Rs 2,00,000
D.Rs 50,000
Explanation: Under the Average Profit Method, Goodwill = Average Profit × Number of Years' Purchase. Here, Goodwill = Rs 50,000 × 3 = Rs 1,50,000.
7A partner withdraws Rs 2,000 at the beginning of every month throughout the year. If interest on drawings is charged at 10% per annum, what is the total interest on drawings?
A.Rs 1,200
B.Rs 1,300
C.Rs 1,100
D.Rs 2,400
Explanation: Total drawings = Rs 2,000 × 12 = Rs 24,000. When equal amounts are withdrawn at the beginning of every month, interest is calculated for an average period of 6.5 months: Interest = 24,000 × 10/100 × 6.5/12 = Rs 1,300.
8If a partner withdraws Rs 4,000 at the end of each month and interest is charged at 12% per annum, what is the interest on drawings for the year?
A.Rs 2,880
B.Rs 2,640
C.Rs 3,120
D.Rs 2,400
Explanation: Total drawings = Rs 4,000 × 12 = Rs 48,000. When drawings are made at the end of each month, the average period is 5.5 months. Interest = 48,000 × 12/100 × 5.5/12 = Rs 2,640.
9Capital Employed in a business is Rs 5,00,000 and the normal rate of return is 10%. If the average profit earned is Rs 70,000, what is the goodwill calculated at 4 years' purchase of super profit?
A.Rs 80,000
B.Rs 2,00,000
C.Rs 2,80,000
D.Rs 50,000
Explanation: Normal Profit = Capital Employed × Normal Rate = 5,00,000 × 10% = Rs 50,000. Super Profit = Average Profit - Normal Profit = 70,000 - 50,000 = Rs 20,000. Goodwill = Super Profit × Years' Purchase = 20,000 × 4 = Rs 80,000.
10Super Profit of a firm is Rs 60,000 and the normal rate of return is 12%. What is the value of goodwill using the Capitalisation of Super Profit method?
A.Rs 7,200
B.Rs 5,00,000
C.Rs 6,00,000
D.Rs 4,80,000
Explanation: Under Capitalisation of Super Profit, Goodwill = (Super Profit / Normal Rate of Return) × 100 = (60,000 / 12) × 100 = Rs 5,00,000.

About the UPMSP Intermediate Accountancy Exam

The Uttar Pradesh Board of High School and Intermediate Education (UPMSP) Class 12 Accountancy (Code 156) curriculum trains commerce students in advanced accounting principles. Key focus areas include partnership reconstitutions and dissolution, corporate accounting for shares and debentures, financial ratio analysis, and cash flow accounting per AS-3. This dataset provides a 100-question English-language MCQ study adaptation tailored to UPMSP Intermediate students preparing for board exams and competitive entrance tests.

Assessment

This English-language MCQ practice bank adapts the Uttar Pradesh UPMSP Intermediate (Class 12) Accountancy — Code 156 curriculum. The official UPMSP examination tests students on Accounting for Partnership Firms (35%), Accounting for Companies (25%), Financial Statement Analysis (12%), Accounting Ratios (14%), and Cash Flow Statement (14%). Note: This question set provides an English-language multiple-choice adaptation designed for comprehensive self-assessment and numerical mastery.

Time Limit

3 hours 15 minutes

Passing Score

33% minimum pass mark in written theory

Exam Fee

₹600.75 for institutional (regular) Intermediate candidates and ₹806 for private candidates for the 2026 examination, plus ₹206 per additional subject. UPMSP charges one registration fee per candidate, not per subject paper. (Board of High School and Intermediate Education Uttar Pradesh (UPMSP))

UPMSP Intermediate Accountancy Exam Content Outline

15%

Accounting for Partnership Firms - Fundamentals & Goodwill

Partnership deed provisions, Indian Partnership Act 1932 rules, profit and loss appropriation, partner capital accounts (fixed vs. fluctuating), interest on capital/drawings, and valuation of goodwill.

25%

Reconstitution of Partnership - Admission, Retirement & Death

Calculation of new profit sharing ratio, sacrificing and gaining ratio, revaluation of assets and liabilities, adjustment of reserves and goodwill treatment on admission, retirement, and death of a partner.

10%

Dissolution of Partnership Firm

Difference between dissolution of partnership and dissolution of firm, preparation of Realisation Account, Partner Capital Accounts, Cash/Bank Account, and settlement of debts.

25%

Accounting for Companies - Share Capital & Debentures

Types of share capital, issue of shares at par/premium, calls-in-arrears, calls-in-advance, forfeiture and reissue of forfeited shares, issue of debentures as collateral security, and redemption methods.

13%

Financial Statement Analysis & Accounting Ratios

Schedule III Balance Sheet layout, comparative and common-size financial statements, liquidity ratios (current, quick), solvency ratios (debt-to-equity), turnover ratios, and profitability ratios.

12%

Cash Flow Statement (AS-3)

Classification of cash flows into Operating, Investing, and Financing activities, indirect method calculations, adjustments for non-cash expenses, and net increase/decrease in cash and cash equivalents.

How to Pass the UPMSP Intermediate Accountancy Exam

What You Need to Know

  • Passing score: 33% minimum pass mark in written theory
  • Assessment: This English-language MCQ practice bank adapts the Uttar Pradesh UPMSP Intermediate (Class 12) Accountancy — Code 156 curriculum. The official UPMSP examination tests students on Accounting for Partnership Firms (35%), Accounting for Companies (25%), Financial Statement Analysis (12%), Accounting Ratios (14%), and Cash Flow Statement (14%). Note: This question set provides an English-language multiple-choice adaptation designed for comprehensive self-assessment and numerical mastery.
  • Time limit: 3 hours 15 minutes
  • Exam fee: ₹600.75 for institutional (regular) Intermediate candidates and ₹806 for private candidates for the 2026 examination, plus ₹206 per additional subject. UPMSP charges one registration fee per candidate, not per subject paper.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

UPMSP Intermediate Accountancy Study Tips from Top Performers

1Practice numerical calculations for Sacrificing Ratio and Gaining Ratio under admission, retirement, and change in profit-sharing ratio.
2Master the journal entries for Share Forfeiture and Reissue, remembering that the gain on reissue is transferred to Capital Reserve.
3Memorize the precise formula for major ratios, such as Current Ratio, Quick Ratio, Debt-Equity Ratio, Inventory Turnover Ratio, and Trade Receivables Turnover Ratio.
4Understand the three activity heads of Cash Flow Statement (Operating, Investing, Financing) and how non-cash expenses like depreciation are adjusted back in Operating Cash Flow.
5Review the provisions of the Indian Partnership Act 1932 that apply in the absence of a written Partnership Deed, such as 6% per annum interest on partner loans.

Frequently Asked Questions

What is UPMSP Subject Code 156?

Code 156 is the official subject code assigned by the Uttar Pradesh Madhyamik Shiksha Parishad (UPMSP) for Accountancy at the Intermediate (Class 12 Commerce) level.

Is this practice bank available in English?

Yes. This question set is an English-language MCQ study adaptation of the UPMSP Class 12 Accountancy curriculum to assist students in preparing for objective and conceptual questions.

Which accounting standards are incorporated into the syllabus?

The curriculum incorporates Indian Accounting Standards and NCERT guidelines, including Accounting Standard 3 (AS-3 Revised) for Cash Flow Statements and Companies Act 2013 Schedule III for Financial Statements.

What types of questions are included in this 100-question practice set?

The practice bank includes theoretical principles, journal entry identification, accounting treatments, and precise numerical problem solving across partnership, company accounts, ratios, and cash flows.

What is the passing criteria for UPMSP Intermediate Accountancy?

Students must score at least 33% marks in the written examination to pass the subject.

Are these official UPMSP board exam questions?

No. These questions are independently authored by OpenExamPrep as an educational practice resource strictly aligned with the UPMSP Intermediate Class 12 Accountancy syllabus.