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Exam Review

Key Facts: NEB Class 12 Accountancy Exam

75

Theory Marks

25

Internal Assessment Marks

3 hours

Theory Paper Duration

35%

Minimum Theory Score

NEB

Conducting Board

The NEB Class 12 Accountancy examination is conducted by the National Examinations Board (NEB) of Nepal. It consists of a 75-mark written theory paper (3 hours) plus 25 marks of internal assessment, and students need at least 35% in theory to avoid a Non-Graded (NG) result. OpenExamPrep offers free independent practice questions on company share accounts, financial statements and cash flow, cost accounting, and computerised accounting. OpenExamPrep's questions are an independent English-language multiple-choice study adaptation of the curriculum topics. They are not an official translation of the board paper or a simulation of its written format.

Sample NEB Class 12 Accountancy Practice Questions

Try these sample questions to review concepts for the NEB Class 12 Accountancy exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 75+ question experience with AI tutoring.

1What is the maximum amount of share capital that a company is authorized to issue to the public as stated in its Memorandum of Association (MoA)?
A.Authorized capital
B.Issued capital
C.Subscribed capital
D.Paid-up capital
Explanation: Authorized capital (also known as nominal or registered capital) is the maximum amount of share capital that a company is legally permitted to issue to shareholders, as formally registered and stated in the capital clause of its Memorandum of Association (MoA) under the Nepal Company Act 2063.
2Which type of shares carry a preferential right to receive dividends at a fixed rate before any dividend is paid to ordinary equity shareholders?
A.Deferred shares
B.Bonus shares
C.Right shares
D.Preference shares
Explanation: Preference shares carry two primary statutory preferences: the right to receive a fixed rate of dividend prior to any dividend distribution to equity shareholders, and priority in repayment of capital over equity shareholders in the event of company winding up.
3How is the balance of Calls-in-Arrears Account presented in the balance sheet of a company?
A.As a deduction from Called-up Share Capital under Shareholders' Funds
B.As an addition to Paid-up Capital under Shareholders' Funds
C.As a current liability under Current Liabilities and Provisions
D.As an intangible asset under Non-Current Assets
Explanation: Calls-in-Arrears represents the amount called up by the company that shareholders have failed to pay by the due date. In the balance sheet, it is presented as a deduction from Called-up Share Capital to determine the Net Paid-up Share Capital.
4How is money received by a company from shareholders in advance of future calls (Calls-in-Advance) treated in company accounts?
A.Credited to Share Capital Account and entitled to dividends
B.Credited to Capital Reserve Account as non-refundable revenue
C.Credited to Calls-in-Advance Account and shown under Current Liabilities
D.Deducted from Authorized Capital in the balance sheet
Explanation: Calls-in-Advance represents money received from shareholders prior to calls being formally made. It is credited to Calls-in-Advance Account and presented under Current Liabilities. It is not part of paid-up share capital, cannot receive dividends, but the company may pay interest on it.
5What is the primary difference between a debenture holder and an equity shareholder in a company?
A.A debenture holder is a creditor receiving fixed interest, whereas a shareholder is an owner receiving variable dividends
B.A debenture holder has voting rights, whereas an equity shareholder does not
C.Debenture interest is an appropriation of profit, whereas dividends are a charge against profit
D.Debentures cannot be secured against company assets, whereas shares are always secured
Explanation: Debentures constitute long-term loan capital, making debenture holders creditors of the company who are entitled to fixed periodic interest whether profits are made or not. Equity shareholders are residual owners who carry voting rights and earn dividends contingent on net profits.
6Himalayan Herbal Ltd invited applications for 20,000 equity shares of Rs. 100 each. Applications were received for 28,000 shares accompanied by Rs. 30 per share on application. What is the total application money received in the bank?
A.Rs. 600,000
B.Rs. 240,000
C.Rs. 2,800,000
D.Rs. 840,000
Explanation: Total application money received = Number of applications received × Application fee per share = 28,000 shares × Rs. 30 = Rs. 840,000. The bank is debited with the full amount received on application before any allotment or refund is processed.
7Kathmandu Mills Ltd issued 10,000 equity shares of Rs. 100 each at a premium of 10%. The terms of payment were: Rs. 30 on application, Rs. 50 on allotment (including premium), and Rs. 30 on final call. What amount should be credited to Share Capital Account on allotment?
A.Rs. 500,000
B.Rs. 100,000
C.Rs. 400,000
D.Rs. 300,000
Explanation: The allotment instalment of Rs. 50 includes a 10% premium (10% of Rs. 100 = Rs. 10). Therefore, the capital component of allotment is Rs. 50 - Rs. 10 = Rs. 40 per share. Amount credited to Share Capital Account = 10,000 shares × Rs. 40 = Rs. 400,000. The remaining Rs. 100,000 (10,000 × Rs. 10) is credited to Securities Premium Account.
8Pokhara Engineering Ltd purchased machinery costing Rs. 330,000 from a vendor. The purchase consideration was settled by issuing equity shares of Rs. 100 each at a premium of 10%. How many equity shares were issued to the vendor?
A.3,300 shares
B.3,000 shares
C.3,666 shares
D.2,750 shares
Explanation: Issue price per share = Face value + Premium = Rs. 100 + (10% of Rs. 100) = Rs. 110. Number of shares issued = Purchase price / Issue price per share = Rs. 330,000 / Rs. 110 = 3,000 shares.
9Sagarmatha Hydropower Ltd invited applications for 50,000 shares. Total applications received were for 75,000 shares. The directors made a pro-rata allotment in the ratio of 3:2 to all applicants. If Hari applied for 1,200 shares, how many shares were allotted to him?
A.1,800 shares
B.1,000 shares
C.600 shares
D.800 shares
Explanation: Under a 3:2 pro-rata allotment, 2 shares are allotted for every 3 shares applied. Allotted shares = Shares applied × (Total shares allotted / Total shares applied) = 1,200 × (50,000 / 75,000) = 1,200 × (2/3) = 800 shares.
10Janakpur Garments Ltd forfeited 500 equity shares of Rs. 100 each (Rs. 80 called up) for non-payment of first call money of Rs. 30 per share. What amount should be credited to Share Forfeiture Account?
A.Rs. 40,000
B.Rs. 15,000
C.Rs. 25,000
D.Rs. 50,000
Explanation: Share Forfeiture Account is credited with the amount actually paid up by the defaulting shareholder on the forfeited shares. Amount called up = Rs. 80; unpaid call = Rs. 30; amount paid per share = Rs. 80 - Rs. 30 = Rs. 50. Amount credited to Share Forfeiture Account = 500 shares × Rs. 50 = Rs. 25,000.

About the NEB Class 12 Accountancy Exam

The NEB Class 12 Accountancy examination is the national board examination for Grade 12 Management-stream students in Nepal, based on the Curriculum Development Centre (CDC) curriculum. It covers company share accounting, financial statement preparation and analysis including cash flow statements, cost accounting, and computerised accounting. OpenExamPrep's questions are an independent English-language multiple-choice study adaptation of the curriculum topics. They are not an official translation of the board paper or a simulation of its written format.

Exam sponsor: National Examinations Board (NEB), Examination Control Office, Sanothimi, Bhaktapur. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Written board examination: a 75-mark written theory paper (3 hours) plus 25 marks of internal assessment.

Time Limit

3 hours (theory paper)

Passing Score

At least 35% in the theory paper (below that: Non-Graded, NG)

Exam / Certification Fees

Set annually by NEB; paid through the school

Exam sponsor website

Reported exam pass rate: Not published by subject. Under NEB's letter-grading rules, a theory score below 35% is recorded as Non-Graded (NG) for that subject. 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.

20% of practice bank

Company Accounts: Shares

Issue, allotment, forfeiture and reissue of shares and related company accounting.

36% of practice bank

Financial Statements and Analysis

Preparing and analysing financial statements, ratio analysis and cash flow statements.

35% of practice bank

Cost Accounting

Cost concepts, cost sheets, material and inventory control, and costing methods.

9% of practice bank

Computer in Accounting

Computerised accounting systems and accounting software.

Preparing for the NEB Class 12 Accountancy Exam

What You Need to Know

  • Passing score: At least 35% in the theory paper (below that: Non-Graded, NG)
  • Assessment: Written board examination: a 75-mark written theory paper (3 hours) plus 25 marks of internal assessment.
  • Time limit: 3 hours (theory paper)
  • Exam / certification fees: Set annually by NEB; paid through the school Official sources

Using Our Practice Resources

  • Work through all 75 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

NEB Class 12 Accountancy: Suggested Study Strategy

1Practise journal entries for share issue, pro-rata allotment, forfeiture and reissue step by step.
2Work through cash flow statements, adjusting operating profit for non-cash items and working-capital changes.
3Memorise and apply inventory control formulas such as EOQ, reorder level and minimum and maximum stock levels.
4Review how computerised accounting systems record, store and report transactions.

Frequently Asked Questions

What is the format of the NEB Class 12 Accountancy examination?

The official assessment is a 75-mark written theory paper (3 hours) plus 25 marks of internal assessment. It is a written board examination, not a multiple-choice test.

What score is needed to pass NEB Class 12 Accountancy?

Under NEB's letter-grading rules, students need at least 35% of the theory marks. A lower theory score is recorded as Non-Graded (NG) for the subject.

What happens if a student is Non-Graded (NG) in Accountancy?

Students who are NG in up to two subjects can sit the grade-increment (supplementary) examination announced by NEB after the results; others take the subject again in a later regular examination.

Are these practice questions official NEB papers?

No. OpenExamPrep's questions are an independent English-language multiple-choice study adaptation of the curriculum topics. They are not an official translation of the board paper or a simulation of its written format. OpenExamPrep is independent and is not affiliated with or endorsed by NEB or the Curriculum Development Centre (CDC).