About This Solved Paper
| Prepared by | Unnati Education academic team, IGNOU-experienced content writers |
|---|---|
| Qualification | Graduate with specialization in Statistics and Quantitative Methods |
| Programme | IGNOU Bachelor of Arts in Facility and Services Management (BAFSM) |
| Institution Reference | IGNOU Term-End Examination, December 2025 |
| Last updated | April 2026 |
What is the BFO-012 December 2025 Question Paper?
The BFO 012 December 2025 question paper is the official IGNOU Term-End set for Basic Accounts and Finance under the BAFSM programme. It runs three hours, totals one hundred marks, and asks students to attempt any five out of ten questions, with all questions carrying equal weight at twenty marks each.
Here's the part that matters. This is the academic record of what IGNOU actually tested last December, and it doubles as the closest preview for any 2026 sitting because syllabus weighting rarely shifts session to session. The paper mixes theory and one full balance-sheet numerical (Q5), with most questions split into a 12+8 or 14+6 sub-part structure. The student picks five and answers them in detailed form.
About IGNOU BFO-012 Basic Accounts and Finance
This is the dedicated accounting-and-finance paper inside the BAFSM programme, and it's the one most students need a structured plan for. You'll cover the accounting process, accounting concepts and standards, trial balance and arithmetical accuracy, budgeting, working capital determinants, ratio analysis from a balance sheet, funds flow statement, capital structure determinants, depreciation, computerised accounting, and the financial manager's role. The paper rewards both clean theory and clear numerical workings.
Most students notice this paper grades on showing the work. With clean structure, full ratio formulas before substitution, and a few real Indian company examples, even mid-range students cross sixty out of one hundred. Theory and numericals weigh equally here.
BFO 012 Question Paper December 2025: Exam Pattern and Marks Breakdown
| Duration | 3 hours |
|---|---|
| Total marks | 100 |
| Total questions set | 10 |
| Questions to attempt | Any 5 |
| Marks per question | 20 |
| Sub-part structure | Most questions split into two parts (12+8 or 14+6) |
| Numerical question | Q5 (Balance Sheet ratio analysis) |
| Short-note question | Q8 (5×4=20) |
| Calculator policy | Allowed (numericals expected) |
| Language of answer | English |
| Missing data | State your assumption clearly before answering |
All Questions in the BFO 012 Question Paper December 2025 (Complete List)
Below is the unedited reprint of every question from the official IGNOU sheet. Read it the way you'd read a real exam, not a textbook.
BACHELOR OF ARTS (FACILITIES AND SERVICES MANAGEMENT) (BAFSM) Term-End Examination December, 2025 BFO-012: BASIC ACCOUNTS AND FINANCE Time: 3 Hours Maximum Marks: 100
Note: (i) Attempt any five questions. (ii) All questions carry equal marks.
(a) Discuss the various stages involved in the accounting process. 14 (b) What is the accounting implication of Going Concern Concept? 6
(a) What do you mean by accounting concepts? Briefly explain the accounting concepts which guide the accountant at the recording stage. 12 (b) What are Accounting Standards? What is the need of issuing accounting standards? 8
(a) Why do you regard Trial Balance as a test of the arithmetical accuracy of the books of account? List the errors that will be disclosed by the Trial Balance. 10 (b) Differentiate between financing decision and investment decision. 10
(a) What is Budgeting? What are the advantages and limitations of Budgeting? 12 (b) Explain the factors that influence working capital needs. 8
From the following Balance Sheet of Kavitha Ltd., calculate Debt Equity Ratio and Total Debt Equity Ratio: 20
Balance Sheet of Kavitha Ltd. as on March 31, 2024 Liabilities, Amount (Rs.) Equity capital, 1,50,000 9% Preference share capital, 60,000 Reserve and Surpluses, 40,000 8% Debentures, 80,000 Long-term loans, 1,20,000 Creditors, 30,000 Bills Payable, 65,000 Total, 5,45,000
Assets, Amount (Rs.) Land and Buildings, 2,00,000 Plant and Machinery, 2,00,000 Sundry Debtors, 1,10,000 Cash at bank, 35,000 Total, 5,45,000
(a) "Funds Flow Statement is only supplementary to P & L Account and Balance Sheet; it can't be substitute to P & L Account and Balance Sheet." Do you agree with this statement? Justify your views. 12 (b) What are the determinants of capital structure? Explain briefly. 8
(a) Define a computerised accounting system. Distinguish between manual and computerised accounting system. 12 (b) Explain the need and significance of depreciation. What factors should be considered for determining the amount of depreciation? 8
Write short notes on any four of the following: 5×4=20 (a) Petty cash book (b) Journal entry (c) Dividend Function (d) Working capital ratio (e) Break-even point (f) International financial reporting standard
List and elaborate activities of a financial manager of a large corporate. 20
What is the difference between net working capital and cash? Explain in detail. 20
- Accounting process and concepts, accounting standards, trial balance, financing vs investment decisions, budgeting and working capital, debt-equity ratio analysis, funds flow statement, capital structure, computerised accounting, depreciation, financial manager's role, and net working capital versus cash
This is the umbrella set of topics the December 2025 paper draws from, and the same set powers upcoming sittings. The accounting-process and concepts questions anchor the foundational block. Trial balance, ratio analysis, and funds flow form the recording-and-reporting block. Budgeting, capital structure, and the financial-manager role cover the corporate-finance block. Treat them as one connected syllabus.
Syllabus Topics Covered
The questions on this paper trace a clean line through the BFO-012 syllabus. You'll see the seven-stage accounting cycle, the going-concern, accrual, and matching concepts, the AS and Ind-AS framework, the four error types disclosed by trial balance, capital and revenue budgets, the operating-cycle determinants of working capital, the debt-equity formula, the funds-flow statement structure, the trade-off and pecking-order theories of capital structure, and the SLM and WDV depreciation methods.
Sample Answer Preview: BFO-012 Basic Accounts and Finance Explanation
Take Question 5: calculate Debt Equity Ratio and Total Debt Equity Ratio from the balance sheet of Kavitha Ltd. This is a twenty-mark numerical, and examiners are scoring three things at once, formula accuracy, the correct classification of items, and a one-line interpretation.
Open with the formulas. Debt Equity Ratio = Long-term Debt divided by Shareholders' Funds. Total Debt Equity Ratio = Total Debt divided by Shareholders' Funds, where Total Debt includes both long-term and short-term liabilities. Stating each formula clearly is worth roughly four marks.
Build the working table next. Shareholders' Funds = Equity Capital plus Preference Share Capital plus Reserves and Surpluses, that is 1,50,000 + 60,000 + 40,000 = 2,50,000. Long-term Debt = 8% Debentures plus Long-term Loans, that is 80,000 + 1,20,000 = 2,00,000. Current Liabilities = Creditors plus Bills Payable, that is 30,000 + 65,000 = 95,000. Total Debt = 2,00,000 + 95,000 = 2,95,000. That's six marks for clean classification.
Now substitute. Debt Equity Ratio = 2,00,000 / 2,50,000 = 0.80, or 0.80:1. Total Debt Equity Ratio = 2,95,000 / 2,50,000 = 1.18, or 1.18:1. That's six marks for the calculation.
Close with a one-line interpretation. A debt-equity ratio of 0.80:1 indicates that for every rupee of owners' funds, the firm uses about 80 paise of long-term debt, signalling moderate leverage. The total ratio of 1.18:1 shows total debt is slightly higher than shareholders' funds, which is acceptable but warrants monitoring of working-capital health. Examiners reward this kind of formula-plus-substitution-plus-interpretation answer with one extra line on what the ratio means in practice. The remaining marks come from neat presentation.
How to Write High-Scoring Answers
Open every numerical with the formula stated separately, then move to the working table, then to substitution, then to a one-line interpretation. That structure alone protects four to five marks per numerical. For theory questions, keep your answer in clear stages or numbered points, especially for the accounting cycle, trial-balance errors, and depreciation factors.
Pick five of the ten questions you can finish thoroughly within thirty minutes each. Mix one numerical with four theory or short-note questions for safety. Don't forget to bring your calculator. Examiners notice that.
Who Should Use This Solved Question Paper
This paper is built for the BAFSM student writing BFO-012 in 2026 or later, especially the one who finds numerical-and-theory mixes intimidating and isn't sure how to structure either. It also helps repeat-attempt students who scored under forty last December because of weak ratio answers. Working professionals in hospitality finance, audit, or admin find the structured templates save them an entire study weekend.
Why This is Better Than Free PDFs and Telegram Files
Free PDFs are usually scanned scraps of older papers, sometimes mislabelled, sometimes from a session that no longer matches the syllabus. Telegram files arrive without an author, without a date, and often with answers full of arithmetic errors in the ratio sums. The IGNOU BFO-012 question paper set on this page is typed clean, fully solved with verified workings, and written by writers who actually understand the IGNOU answer style for accounting subjects.
You also get a real human on the support side if anything breaks, which no chat group offers.
Student Reviews
Sneh, Hisar. The Kavitha Ltd ratio working for Question 5 finally showed me how to classify shareholders' funds versus debt cleanly. I'm a working hotel accountant doing BAFSM on weekends, and the formula-then-substitution format cut my prep time in half.
Tarun, Bareilly. The accounting-cycle answer for Question 1 saved me. First-time IGNOU learner here, and I couldn't sequence the seven stages from the textbook alone. Got it in one read here.
Reema, Nashik. Second attempt for me. I scored 38 last December because my funds-flow answer was vague. The Question 6 framing of supplementary-versus-substitute is exactly the position-taking structure I should've used.
Frequently Asked Questions
Is this BFO-012 paper genuine?
Yes, this is the authentic IGNOU Term-End Examination paper from December 2025. The questions reproduced on this page match the official paper distributed at IGNOU exam centres for the BFO-012 Basic Accounts and Finance course under the BAFSM programme. Our team cross-checked every question, every figure in the balance sheet, and every instruction line against the original sheet, so what you study is what was actually asked.
Will this help me for the 2026 exam?
It will help significantly. IGNOU rotates a small pool of question types across sessions, and BFO-012 follows that pattern closely. Topics like the accounting cycle, accounting concepts, trial balance, budgeting, ratio analysis, funds flow, capital structure, depreciation, and the financial manager's role are syllabus pillars that almost certainly reappear in 2026. Practising this paper trains you on the exact mix examiners use right now.
Are the numericals fully solved?
Yes, the Question 5 ratio numerical is solved end to end, with every classification, every sub-total, every formula, and every substitution shown clearly. We also include a short interpretation line so you know how to add the qualitative comment that earns the last two marks. Other answers cover theory questions and short notes in detailed prose with named examples and proper structure.
Can I use this for my BFO-012 assignment?
You can use it as reference, but assignment writing has its own logic. Assignments expect more elaboration, your own examples, and a slightly fresher tone. Treat the solved paper as your skeleton: lift the structure, the formulas, and the way each topic is broken down, then add personal observations and a small reflection paragraph in your own words. That avoids similarity flags during evaluation.
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About Unnati Education
Unnati Education is a study-resource platform built for IGNOU students who want clear, verified material instead of forwarded files. Our team includes graduates with backgrounds in statistics, education, and finance, and most of our writers have written IGNOU exams themselves. We focus on the courses where students struggle most, BFO-012 included, and we update papers within days of every Term-End sitting.
Explore More IGNOU BFO-012 Study Material
If this paper helps, you'll find more on our site, including previous-session question papers, current-cycle assignment solutions, short revision notes for each unit, and a topic-wise question bank covering ratio analysis, funds flow, and depreciation. Use them in this order: notes first, paper second, assignment third. That sequence gives you the cleanest revision arc.