Class 12 Accountancy Case Study Questions

CBSE has issued a question bank for students. It has many questions on the new exam pattern. Students can download CBSE Class 12 Accountancy Case Study Questions from the CBSE website. But this question bank has very limited questions from each chapter.

Case Study Questions on myCBSEguide App

Since the CBSE question bank has only sample questions, students need more questions to practice. Here, the myCBSEguide app helps you a lot. We have hundreds of case study questions for CBSE class 12 Accountancy and other subjects. Just install the myCBSEguide app and get access to complete course material for class 12 Accountancy.

12 Accountancy Case Study Questions

Class 12 Accountancy Scope

For students appearing for grade 12 CBSE exams from the Commerce stream, Accountancy is a very important subject. Accountancy is considered to be the toughest of all other core subjects in the CBSE class 12 commerce stream. To ace this CBSE exam, students need to burn the midnight oil.

Among all the mandatory subjects of the Commerce stream i.e accountancy, economics and business studies, it’s accountancy that poses a lot of challenges to the students with its complex theories and principles. It is definitely not a cakewalk to score well in the CBSE 12 grade accountancy examination without adequate practice and knowledge .

Many students who opt for the commerce stream after their 10-grade exams aspire to become chartered accountants, so the subject is of utmost importance for them. Accountancy is a logical subject that involves conceptual clarity followed by practice with the right approach.

Case Study Questions in class 12 (Accountancy)

CBSE introduced case-based questions in class 12 accountancy question paper last year i.e 2021 to enhance critical thinking in students. CBSE introduced a few changes in the accountancy class 12 question paper so as to enhance and develop analytical and reasoning skills among students. The questions would be based on real-life scenarios encountered by mankind.

The purpose of Case Study Questions

The sole purpose of introducing case-based questions in the class 12 curriculum by CBSE was to drift from rote learning to competency and situation-based learning.

Case Studies and NEP 2020

Sanyam Bhardwaj, controller of examinations, CBSE focussed on the fact that case-based questions would enhance the critical reasoning skills of the students. He highlighted the fact that adding such questions to the examination was a step toward achieving the goals of the National Education Policy (NEP) 2020.

Introduction of Case Study Questions

Last year 8 sample case-based questions were released by the CBSE and immediately a panic situation was created among the teachers as well as students. The concept was new and unexplored. A hypothetical text was provided on the basis of which the student was required to solve the given case-based question asked by CBSE in the accountancy class 12 exam.

Initially, the case-based questions appeared to be puzzling and tricky for both the students and the teachers. Perhaps, they were reluctant on experimenting with something new but now a lot more clarity is there that has made the question paper quite a student friendly.

Accountancy syllabus of class 12 CBSE

The entire Accountancy course is divided into 2 parts:

• Part A: Accounting for partnership firms
• Part B: Analysis of financial statement OR Computerized Accounting

Accountancy Textbooks

Most of the CBSE board questions are based on the exercises of NCERT textbooks. It is recommended to go through the textbooks rigorously. Three books have been published by NCERT. But Accountancy is a vast subject and students need to follow and practice other reference books too. Adhering only to NCERT textbooks will not be adequate to excel in this commerce stream subject.

Marks Distribution

CBSE Class – 12 Accountancy (Code No. 055)

Theory: 80 Marks
Project: 20 Marks

Units		Periods	Marks
Part A	Accounting for Partnership Firms and Companies
	Unit 1. Accounting for Partnership Firms	105	36
	Unit 2. Accounting for Companies	45	24
		150	60
Part B	Financial Statement Analysis
	Unit 3. Analysis of Financial Statements	30	12
	Unit 4. Cash Flow Statement	20	8
		50	20
Part C	Project Work	20	20
	Project work will include:
	Project File: 4 Marks
	Written Test: 12 Marks (One Hour)
	Viva Voce: 4 Marks
OR
Part B	Computerized Accounting
	Unit 4. Computerized Accounting	50	20
Part C	Practical Work	20	20
	Practical work will include:
	Practical File 4 Marks
	Practical Examination 12 Marks (One Hour)
	Viva Voce 4 Marks

Case Study Passage (Accountancy class 12)

As part of these questions, the students would be provided with a hypothetical situation or text, based on which analytical questions will have to be answered by them. It is a must for the students to read the passage in depth before attempting the questions. In the coming examination cycle (2022-23), case-based questions have a weightage of around 15 to20%. These questions can be based on each chapter in the NCERT book for accountancy, class 12.

Students must prepare well for the case-based questions before appearing for their accountancy board exam as these questions demand complete knowledge of the various concepts in their syllabus. CBSE plans to increase the weightage of such questions in the upcoming years.

Kind of case-based Questions in Accountancy

Accountancy is a subject that is closely related to trade and commerce. The subject records allocate and outline the transactions of a business. The subject is for sure demanding thus requiring a greater effort from the students in order to strive for a perfect score. It is termed to be challenging but at the same time, it is scoring.

The case-based questions asked in the CBSE accountancy question paper for class 12 are of two types:

• Objective
• Subjective

As per the latest circular issued by CBSE on Assessment and Evaluation practices of the board for the session 2022-23, CBSE has clearly mentioned that competency-based questions including case studies will be different from subjective questions. It is quite likely that CBSE will ask only objective questions in CBSE class 12 Accountancy case study questions too.

How To Prepare For Case-based Questions? 

Students need to prepare well for the case-based questions before appearing for their class 12 Accountancy board exams. Here are some tips which will help the student to solve the case-based questions at ease:

• Read the hypothetical text carefully
• Try to comprehend the situation and focus on the question asked
• Analyze and carefully answer the question asked
• Focus on formats, accountancy is one subject where alongside the concepts students need to be cautious about the formats.
• Do not neglect the theory portion of accountancy, this is the key to scoring a perfect score.
• Practice as much as possible
• Answer briefly and precisely

Students need to solidify their concepts in order to ace the accountancy class 12 CBSE board exam. Case studies can be easily solved if your key fundamentals are strong and clear. These simple points if kept in mind will definitely help the students to fetch good marks in case study questions in class 12 Accountancy.

Case study question examples in accountancy

Here are some given case study questions for CBSE class 12 Accountancy. If you wish to get more case study questions and other study material, download the myCBSEguide app now. You can also access it through our student dashboard.

12th Accountancy Case Study 1

Read the hypothetical text given and answer the following questions:

VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players down south. With the support and guidance of his family, he started the Star cricket academy at Tirunelveli township area on 1st April 2020. The land was donated by his grandfather worth Rs. 10,00,000 as per his will. His father Shankar donated Rs.5,00,000 for the construction and running of the academy. He spent Rs.3,00,000 on the construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of Rs.1200 each. 10 players paid in advance for the next year 2021 -22. Vijayashankar appointed a well-experienced coach for them, the coach fee amounted to Rs. 1,20,000 p.a. The maintenance expenses amounted to Rs.75,000. Bats and balls purchased during the year amounted to Rs.15,000. Closing stock of bats and ball amount to Rs.1000.

Based on the above information you are required to answer the following question.

1 What is the Primary source of income for the academy?

2 The amount of subscription to be credited to income and expenditure account————-

3 How will you treat the land donated by his grandfather?

4 The liability towards advance subscription amounted to:

(a) Rs. 12,000

(b) Rs.24,000

(c) Rs.1,200

(d) Rs.1,20,000

5 The amount of subscription received as per Receipts and payments Account of Star cricket club is:

(a) Rs.2,52,000

(b) Rs.2,40,000

(c) Rs.2,50,000

(d) None of the above

6 What amount should be charged to the Income and Expenditure account for bats and balls consumed during the year?

(a) Rs.15,000

(b) Rs.16,000

(c) Rs.14,000

(d) Rs.13,500

Answer Key:

1 Subscription

2 Rs.2,40,000

3 Vijaya Shankar’s grandfather donated land for cricket coaching which is to be treated as a legacy and is to be capitalized.

4 (a) Rs.12,000

5 (a) Rs.2,52,000

6 ( c) Rs.14,000

12th Accountancy Case Study 2

Nidiya Limited was incorporated on 1st April 2017 with a registered office in Mumbai. The capital clause of the memorandum of Association reflected a registered capital of 8,00,000 equity shares of Rs.10 each and 1,00,000 preference shares of Rs.50 each. Since some large investments were required for building and machinery the company in consultation with vendors, Ms.VPS Enterprises issued 1,00,000 equity shares and 20,000 preference shares at par with them in full consideration of assets acquired. Besides this, the company issued 2,00,000 equity shares for cash at par payable as Rs 3 on application, 2 on the allotment, 3 on the first call and 2 on the second call. To date, the second call has not yet been made and all the shareholders have paid except Mr. Ajay who did not pay allotment and calls on his 300 shares and Mr. Vipul who did not pay the first call on his 200 shares. Shares of Mr. Ajay were then forfeited and out of them, 100 shares were reissued at Rs.12 per share.

Based on the above information you are required to answer the following questions.

1 Shares issue to vendors of building and machinery, Ms. VPS Enterprises, would be classified as:

1. Preferential Allotment
2. Employee Stock Option Plan
3. Issue for Consideration other than cash
4. Right Issue of Shares

2 How many equity shares of the company have been subscribed?

1. 3,00,000
2. 2,99,500
3. 2,99,800
4. None of these

3 What is the amount of security premium reflected in the balance sheet at the end of the year?

1. ₹200
2. ₹600
3. ₹400
4. ₹ 1,000

4 What amount of share forfeiture would be reflected in the balance sheet?

1. ₹600
2. ₹900
3. ₹200
4. ₹ 300

Answer Key

1 ( c) Issue for consideration other than cash.

2 ( c) Rs.2,99,800

3 ( c) Rs.400

4 (a) Rs. 600

12th Accountancy Case Study 3

Yogadatra Ltd. (pharmaceutical company) appointed marketing expert, Mr. Kartikay as the CEO of the company, with a target to penetrate their roots in the rural regions. Mr. kartikay discussed the ways and means to achieve the target of the company with financial, production and marketing departmental heads and asked the finance manager to prepare the budget. After reviewing the suggestions given by all the departmental heads, the finance manager proposed the requirement of an additional fund of ₹52,50,000. Yogadatra Ltd. is a zero-debt company. To avail of the benefits of financial leverage, the finance manager proposed to include debt in the capital structure. After deliberations, on April 1, 2020, the board of directors had decided to issue 6% Debentures of ₹100 each to the public at a premium of 5%, redeemable after 5 years at ₹110 per share.

You are required to answer the following questions:

(i) Calculate the number of debentures to be issued to raise additional funds.

(ii) Pass Journal entry for the allotment of debentures.

(iii)Pass Journal entry to write off loss on issue of debentures.

(iv)Calculate the amount of annual fixed obligation associated with debentures.

(v) Prepare Loss on Issue of Debentures Account.

Answer Key

Advantages of case study questions in Accountancy

Class 12 Accountancy syllabus is divided into 2 books and CBSE can ask case study questions from any of them. Students are expected to prepare themselves thoroughly for both books. They ought to practice class 12 Accountancy case-based questions from the various options available to them to excel in the subject.

• Enhance the analytical skills of students
• Provide a complete and detailed understanding of the concepts
• Inculcate intellectual capabilities in students
• Help students retain knowledge for a longer period of time
• The questions would help to discard the concept of rote learning
• Case studies promote and strengthen practical learning.

There is no substitute for hard work!