NIOS Class 12 Accountancy Important Questions (320) 2025 Complete Exam Preparation Guide

NIOS Class 12 Accountancy 320 Important Questions 2026 – Chapter-Wise Objective Question Bank

Accountancy is probably the subject where the gap between reading and scoring shows up most clearly. You can understand journal entries but still write the wrong answer when an MCQ asks whether income received in advance is an asset or a liability. If you are preparing for NIOS Class 12 Accountancy (Code 320) in 2026 and want the most important chapter-wise objective questions from the Unnati Education booklet, this page gives you exactly that — with sample answers included. For the complete solution booklet covering all 38 lessons, contact Unnati Education at 9654279279 or 9899436384.

NIOS Class 12 Accountancy (320) Important Questions – Quick Overview

What Are NIOS Class 12 Accountancy 320 Important Questions for 2026?

Most students preparing for NIOS Accountancy 320 spend time reading chapters but underestimate how precisely the objective section tests concepts. Knowing that accrual basis matches expenses with revenue is not the same as correctly answering a fill-in-the-blank that asks what accrual basis matches expenses with. The Unnati Education 320 objective booklet is built chapter by chapter across all 7 modules and 38 lessons, covering MCQs, fill-in-the-blank questions, one-word answers, and numericals — all designed to match the NIOS exam pattern. This page shares chapter-wise samples so you can gauge the style before getting the full booklet.

Module I – Accounting: An Introduction

Lesson 4 – Accounting for Business Transactions

This lesson is a core objective question target every year. The definition of a business transaction, the give and take aspect, debit versus credit, voucher types, and bases of accounting all appear as direct one-mark questions.

Students preparing NIOS Class 12 TMA for Accountancy 320 can get 100% accurate solved assignments from Unnati Education in both typed and handwritten formats — ready for immediate submission.

Sample Questions

A transaction is treated as a business transaction only when it: A. Involves movement of cash B. Is supported by a voucher C. Involves exchange of values between two parties D. Results in profit
Answer: C

The give aspect of a transaction is represented by: A. Debit B. Credit C. Asset D. Expense
Answer: B

Which of the following is considered the primary evidence of a transaction? A. Ledger B. Journal C. Voucher D. Balance Sheet
Answer: C

Hybrid basis of accounting is a combination of: A. Accrual and matching basis B. Cash and accrual basis C. Cash and capital basis D. Accrual and revenue basis
Answer: B

The principle "Every debit has a credit" relates to: A. Accounting equation B. Rules of accounting C. Double entry mechanism D. Voucher system
Answer: C

Fill in the Blank A voucher prepared for recording cash payments is known as a __________ voucher.
Answer: Debit

Accrual basis of accounting follows the principle of matching __________ with revenue.
Answer: Expenses

Income received in advance is treated as a __________ until it is earned.
Answer: Liability

Lesson 2 – Accounting Concepts

Sample Questions

Which accounting concept requires that the business and its owner be treated as separate entities? A. Going concern concept B. Business entity concept C. Matching concept D. Consistency concept
Answer: B

The concept that assumes the business will continue to operate for an indefinite period is: A. Accrual concept B. Money measurement concept C. Going concern concept D. Periodicity concept
Answer: C

Fill in the Blank The accounting concept that states only monetary transactions are recorded is called the __________ concept.
Answer: money measurement

True or False Under the accrual concept, revenue is recorded when cash is received.
Answer: False

Lesson 3 – Accounting Conventions and Standards

Sample Questions

The convention that requires the same accounting methods to be followed year after year is: A. Full disclosure B. Conservatism C. Consistency D. Materiality
Answer: C

Under the convention of conservatism, a business should: A. Anticipate profits and ignore losses B. Ignore both profits and losses C. Not anticipate profits but provide for all probable losses D. Record all future profits immediately
Answer: C

Fill in the Blank The convention of __________ requires that all significant information be disclosed in financial statements.
Answer: full disclosure

Lesson 5 – Journal

Sample Questions

The process of recording transactions in the journal is called: A. Posting B. Journalising C. Balancing D. Ledgering
Answer: B

When goods are purchased on credit, which account is debited? A. Cash account B. Creditor's account C. Purchases account D. Sales account
Answer: C

Fill in the Blank A journal entry that involves more than one debit or credit is called a __________ entry.
Answer: compound

The narration in a journal entry is written __________ the entry.
Answer: below (after)

Lesson 6 – Ledger

Sample Questions

The process of transferring journal entries to the ledger is called: A. Journalising B. Balancing C. Posting D. Summarising
Answer: C

The balance of a real account (asset) is always: A. Credit balance B. Debit balance C. Nil balance D. Fluctuating balance
Answer: B

Fill in the Blank The difference between the total of debit side and credit side of a ledger account is called the __________.
Answer: balance

Lesson 7 – Cash Book

Sample Questions

A Cash Book is a: A. Subsidiary book only B. Ledger only C. Both subsidiary book and ledger D. Neither subsidiary nor ledger
Answer: C

The bank column of a cash book shows a credit balance when: A. Cash deposited exceeds withdrawals B. Withdrawals exceed deposits (overdraft) C. Bank balance is nil D. Both columns are equal
Answer: B

Fill in the Blank Contra entries in the cash book involve both the __________ and bank columns.
Answer: cash

Lesson 8 – Special Purpose Books

Students who want the complete NIOS Class 12 Important Questions booklet for Accountancy 320 with chapter-wise solutions for all special purpose books, journal entries, and ledger problems can get the full 2026 version from Unnati Education.

Sample Questions

The purchase return book is also known as: A. Returns inward book B. Returns outward book C. Purchases journal D. Creditor ledger
Answer: B

Which special purpose book records credit sales? A. Cash book B. Purchases book C. Sales book D. Petty cash book
Answer: C

Fill in the Blank The document on the basis of which the purchases book is written up is the __________.
Answer: invoice (or bill)

Module II – Trial Balance and Computers

Lesson 9 – Trial Balance

Sample Questions

The main purpose of preparing a Trial Balance is: A. To find out profit or loss B. To check the arithmetical accuracy of books of accounts C. To prepare the cash book D. To record all transactions
Answer: B

If the Trial Balance does not agree, the difference is transferred to: A. Profit and Loss account B. Capital account C. Suspense account D. Reserve account
Answer: C

Fill in the Blank All assets and expenses show __________ balances in the Trial Balance.
Answer: debit

Lesson 10 – Bank Reconciliation Statement

Sample Questions

A Bank Reconciliation Statement is prepared to reconcile the balance as per: A. Cash book and petty cash book B. Cash book and bank pass book C. Ledger and trial balance D. Journal and ledger
Answer: B

If a cheque is issued but not yet presented to the bank, the balance as per pass book will be: A. Less than cash book balance B. More than cash book balance C. Equal to cash book balance D. Zero
Answer: B

Fill in the Blank Cheques deposited but not yet cleared by the bank cause the pass book balance to be __________ than the cash book balance.
Answer: less

Lesson 11 – Bills of Exchange

Sample Questions

A Bill of Exchange is drawn by: A. The drawee B. The creditor (drawer) C. The payee D. The bank
Answer: B

When a bill is discounted with the bank, the account debited is: A. Bills receivable account B. Discount account C. Bank account D. Drawee's account
Answer: C

Fill in the Blank The person who accepts a Bill of Exchange is called the __________.
Answer: drawee (or acceptor)

Lesson 12 – Errors and Their Rectification

Sample Questions

An error that affects only one account is called: A. Error of principle B. One-sided error C. Compensating error D. Error of omission
Answer: B

Which of the following errors is NOT disclosed by a Trial Balance? A. Wrong totalling of the debit side of an account B. Error of complete omission C. Posting to the wrong side of an account D. Wrong balancing of an account
Answer: B

Fill in the Blank Errors that are not revealed by a Trial Balance are corrected through a __________ account.
Answer: Suspense

Students who need NIOS Class 12 Intext and Terminal Questions for Accountancy 320 with complete numerical working can get the full chapter-wise set from Unnati Education, covering all error rectification and reconciliation problems.

Module III – Financial Statements

Lesson 14 – Depreciation

Sample Questions

Depreciation is charged on: A. Current assets B. Fixed assets C. Liquid assets D. Fictitious assets
Answer: B

Under the Straight Line Method, depreciation is calculated on the: A. Written down value B. Original cost C. Market value D. Replacement cost
Answer: B

Under the Written Down Value Method, the book value of an asset: A. Remains constant B. Increases each year C. Decreases each year but never reaches zero D. Reaches zero in the last year
Answer: C

Fill in the Blank The formula for calculating annual depreciation under the Straight Line Method is (Cost − Scrap Value) / __________.
Answer: Useful life (in years)

Lesson 15 – Provisions and Reserves

Sample Questions

A Provision is created for: A. A known liability of uncertain amount B. Distributing profits C. Investing surplus funds D. Buying fixed assets
Answer: A

Which of the following is a capital reserve? A. General reserve B. Dividend equalisation reserve C. Premium on issue of shares D. Workmen compensation fund
Answer: C

Fill in the Blank A reserve created out of capital profits and not available for distribution as dividend is called a __________ reserve.
Answer: capital

Lesson 17 – Financial Statements I and Lesson 18 – Financial Statements II

Sample Questions

Gross profit is calculated as: A. Net Sales − Total Expenses B. Net Sales − Cost of Goods Sold C. Net Purchases − Sales Returns D. Total Revenue − Fixed Costs
Answer: B

Which of the following appears on the debit side of the Profit and Loss account? A. Gross profit B. Discount received C. Salaries paid D. Interest received
Answer: C

Fill in the Blank The excess of assets over liabilities represents the __________ of the business.
Answer: capital (or net worth)

Lesson 19 – NPO: An Introduction and Lesson 20 – Financial Statements of NPO

Sample Questions

The main financial statement prepared by a Non-Profit Organisation (NPO) to show the surplus or deficit for the year is: A. Profit and Loss account B. Trading account C. Income and Expenditure account D. Receipt and Payment account
Answer: C

The Receipt and Payment account of an NPO is similar to: A. Profit and Loss account B. Cash book C. Balance Sheet D. Income and Expenditure account
Answer: B

Fill in the Blank Subscriptions received in advance by an NPO are treated as __________ in the Balance Sheet.
Answer: liability (income received in advance)

Lesson 21 – Accounts from Incomplete Records

Sample Questions

The method of preparing accounts where complete double-entry records are not maintained is called: A. Single entry system B. Double entry system C. Accrual system D. Cash basis system
Answer: A

To find out profit under Single Entry System, the method used is: A. Trading and Profit and Loss account B. Statement of Affairs method C. Receipts and Payments method D. Income and Expenditure method
Answer: B

Fill in the Blank Capital at the beginning of the year is calculated from the __________ statement.
Answer: opening Statement of Affairs

Module IV – Partnership Accounts

Lesson 22 – Partnership: An Introduction

Sample Questions

In the absence of a partnership deed, interest on capital is allowed at: A. 6% per annum B. 5% per annum C. No interest is allowed D. Bank rate per annum
Answer: C

The fixed capital method differs from the fluctuating capital method in that: A. Partners share profits equally under fixed capital method B. All adjustments are made in a separate current account under fixed capital method C. Interest on capital is not allowed under fixed capital method D. Drawings are not allowed under fixed capital method
Answer: B

Fill in the Blank In the absence of a partnership deed, profits and losses are shared __________ among all partners.
Answer: equally

Lesson 23 – Admission of a Partner

Sample Questions

When a new partner is admitted, the existing partners sacrifice their share in the ratio called: A. New profit-sharing ratio B. Gaining ratio C. Sacrificing ratio D. Old profit-sharing ratio
Answer: C

Goodwill is credited to existing partners' capital accounts in the: A. New profit-sharing ratio B. Old profit-sharing ratio C. Sacrificing ratio D. Gaining ratio
Answer: C

Fill in the Blank At the time of admission of a partner, accumulated profits and losses are distributed among old partners in their __________ ratio.
Answer: old profit-sharing

Students who want NIOS Class 12 question paper collections for Accountancy 320 with complete solved answers across multiple exam cycles can access them through Unnati Education.

Lesson 24 – Retirement and Death of a Partner and Lesson 25 – Dissolution of a Partnership Firm

Sample Questions

When a partner retires, the remaining partners gain in the: A. Sacrificing ratio B. Old profit-sharing ratio C. Gaining ratio D. New profit-sharing ratio
Answer: C

On dissolution of a firm, the Realisation account is credited with: A. All liabilities B. All assets transferred to it C. Cash received from sale of assets D. Partner's capital
Answer: C

Fill in the Blank At the time of retirement of a partner, goodwill is debited to the remaining partners' capital accounts in their __________ ratio.
Answer: gaining

Module V – Company Accounts

Lesson 27 – Issue of Shares

Sample Questions

When shares are issued at a price higher than the face value, the excess is called: A. Dividend B. Securities Premium C. Capital Redemption Reserve D. General Reserve
Answer: B

Share Application account is a: A. Real account B. Nominal account C. Personal account D. Suspense account
Answer: C

Fill in the Blank Shares issued at less than their face value are said to be issued at a __________.
Answer: discount

Lesson 28 and 29 – Forfeiture and Reissue of Forfeited Shares

Sample Questions

When shares are forfeited, the Share Capital account is: A. Credited with the called-up amount B. Debited with the called-up amount C. Credited with the paid-up amount only D. Not affected
Answer: B

On reissue of forfeited shares, the maximum discount allowed is: A. The amount forfeited on those shares B. The face value of the shares C. The securities premium collected D. The total calls in arrears
Answer: A

Fill in the Blank Profit on reissue of forfeited shares is transferred to __________ reserve.
Answer: Capital

Lesson 30 – Issue of Debentures

Sample Questions

Debenture holders are: A. Owners of the company B. Creditors of the company C. Employees of the company D. Shareholders of the company
Answer: B

When debentures are issued at a discount, the Discount on Issue of Debentures account is: A. A real account, shown as asset B. A fictitious asset, written off over time C. A liability D. A capital reserve
Answer: B

Fill in the Blank Debentures redeemable at a price higher than their face value involve a loss known as __________ on redemption.
Answer: premium (or loss on redemption)

Module VI – Analysis of Financial Statements

Lesson 32 and 33 – Accounting Ratios I and II

Sample Questions

Current Ratio is calculated as: A. Current Assets / Total Assets B. Current Assets / Current Liabilities C. Fixed Assets / Current Liabilities D. Working Capital / Current Assets
Answer: B

A Current Ratio of 2:1 means that for every ₹1 of current liabilities, the firm has ₹2 of: A. Fixed assets B. Total assets C. Current assets D. Cash
Answer: C

Quick Ratio excludes __________ from current assets.
Answer: inventory (stock) and prepaid expenses

Fill in the Blank Gross Profit Ratio = (Gross Profit / __________) × 100.
Answer: Net Sales

Lesson 34 – Cash Flow Statement

Sample Questions

A Cash Flow Statement classifies cash flows into: A. Two activities: operating and investing B. Three activities: operating, investing, and financing C. Four activities: operating, investing, financing, and trading D. Only financing activities
Answer: B

Payment of dividends is classified under which activity in a Cash Flow Statement? A. Operating B. Investing C. Financing D. Trading
Answer: C

Fill in the Blank Purchase of machinery for ₹5,00,000 appears under __________ activities in the Cash Flow Statement.
Answer: investing

Module VII – Application of Computers in Financial Accounting

Lesson 35 – Electronic Spreadsheet and Lesson 38 – Database Management System

Sample Questions

In a spreadsheet, a cell is identified by its: A. Row number only B. Column letter only C. Column letter and row number combined D. Sheet name only
Answer: C

Which of the following is an example of spreadsheet software? A. MS Word B. MS Excel C. MS PowerPoint D. MS Access
Answer: B

A DBMS stores data in the form of: A. Documents B. Slides C. Tables (relations) D. Charts
Answer: C

Fill in the Blank The function used in a spreadsheet to add a range of cells is __________.
Answer: SUM

Most Repeated Topics in NIOS Accountancy 320 Exams

Common Mistakes Students Make While Preparing Accountancy 320

Writing that income received in advance is an asset — it is a liability because the business owes services or goods against it. Confusing the sacrificing ratio with the gaining ratio — sacrificing ratio applies when a partner gives up share (on admission), gaining ratio applies when a partner benefits (on retirement). Writing that debenture holders are owners — they are creditors and receive interest, not dividends. Saying depreciation is charged on current assets — it is only charged on fixed assets. Confusing Receipt and Payment account with Income and Expenditure account — the former is like a cash book (real receipts and payments), the latter shows surplus or deficit for the period. Writing that the Trial Balance detects all errors — errors of complete omission, errors of principle, and compensating errors are not detected by the Trial Balance. Treating securities premium as revenue reserve — it is a capital reserve and cannot be used for dividend distribution.

About Unnati Education

Unnati Education has been supporting NIOS students since 2010. The Accountancy 320 booklet covers all 38 lessons across all 7 modules with correct answers, clear explanations, and step-by-step numerical working. We know which chapters NIOS targets most consistently, and the booklet is built around that knowledge. We also provide solved TMAs, previous year question papers with complete solutions, and chapter-wise notes — all updated for both the April and October 2026 NIOS exam cycles.

How to Get the Complete Solutions

If you want the full NIOS Class 12 Accountancy 320 important questions booklet with complete solutions for 2026, or if you need previous year question papers, solved TMAs, or chapter-wise notes, contact Unnati Education today.

Phone and WhatsApp: 9654279279 or 9899436384 Website: unnatieducations.com/nios

Frequently Asked Questions

Q1. Are these NIOS Class 12 Accountancy 320 important questions enough for the 2026 exam?

These chapter-wise questions cover the most important objective topics from all 7 modules of NIOS Accountancy 320, including business transactions, journal entries, financial statements, partnership accounts, company accounts, ratios, and cash flow statements. For the complete solution booklet with detailed answers and numerical working for every chapter, contact Unnati Education at 9654279279 or 9899436384 today.

Q2. Where can I download the NIOS Accountancy 320 important questions PDF for 2026?

Unnati Education provides a complete NIOS Accountancy 320 important questions PDF with MCQs, fill-in-the-blank questions, one-word answers, and numerical problems from all 38 lessons, with full explanations and worked solutions. Call or WhatsApp at 9654279279 or 9899436384 and our team will share the complete material directly with you without any delay.

Q3. Does the booklet cover numerical problems for partnership, company accounts, and financial ratios?

Yes, the Unnati Education booklet includes step-by-step numerical solutions for all calculation-based chapters including admission and retirement of partners, issue and forfeiture of shares, depreciation calculations, preparation of financial statements, and accounting ratios. Every formula is explained with worked examples. Contact us at 9654279279 or 9899436384 for your complete 2026 booklet.

Q4. Can I get previous year question papers for NIOS Accountancy 320 from Unnati Education?

Yes, Unnati Education provides previous year question papers with complete solutions for NIOS Accountancy 320. These papers show how numerical and objective questions are framed across modules, which chapters appear most frequently, and what working method earns full marks. Call or WhatsApp at 9654279279 or 9899436384 to get the full paper collection.

Q5. Is the Unnati Education booklet valid for both April and October 2026 NIOS Accountancy exams?

Yes, the Unnati Education objective question booklet for NIOS Accountancy 320 is fully valid for both the April and October 2026 NIOS exam cycles. All content is based on the current NIOS syllabus and reviewed throughout the year to stay accurate. Whichever cycle you are appearing in, this booklet prepares you completely for the objective and numerical sections of your Accountancy paper.

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