Class 12 Accountancy Practical Mock Viva 2026

The Class 12 Accountancy Practical Exam includes a project file as well as viva-voce. While the written portion tests your speed, the Class 12 Accountancy Practical Mock Viva 2026 tests your presence of mind and conceptual clarity.

Based on the latest CBSE 2026 patterns, Commerce Wallah by PW has explained the most frequently asked Viva questions and tricky Cash Flow classifications. The total project work carries 20 marks, with the viva voce contributing 10 marks to the overall assessment.

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What is Class 12 Accountancy Practical Mock Viva 2026?

The Class 12 Accountancy Practical Mock Viva 2026 is an oral examination to prepare students for the final assessment conducted by external examiners. In the CBSE and ISC curriculum, the practical component carries a total of 20 marks, and the Viva Voce specifically accounts for a significant portion of the internal assessment alongside the project file. Below is the structure of the Practical Assessment

What are Accounting Ratios?

Accounting ratios are important tools used to analyze a company's financial performance and position. They are broadly categorized into four main types:

1. Profitability Ratios: How much are we earning?

2. Solvency Ratios: Can we pay our long-term debts?

3. Activity Ratios: How efficiently are we using assets?

4. Liquidity Ratios: Can we pay our bills tomorrow?

It is noteworthy that the Operating Ratio and the Operating Profit Ratio are a pair whose sum always equals 100%.

What are Liquidity Ratios?

These ratios are calculated to assess the short-term solvency of a business, indicating its ability to meet short-term obligations. The primary liquidity ratios include the Current Ratio and the Liquid Ratio (also known as the Quick Ratio). The ideal Current Ratio is 2:1. Here’s a comparison between current ratio and quick ratio:

Cash Flow Statement (CFS)

The Cash Flow Statement provides insights into the cash inflows and outflows of an enterprise during an accounting period, classifying them into operating, investing, and financing activities.

Non-Cash and "No Flow" Transactions

It's important to distinguish between non-cash transactions and "no flow" transactions.

• Non-Cash Transactions: These are transactions that do not involve actual cash movement. Examples include:

• Amortization: An expense related to intangible assets.

• Depreciation: An expense related to tangible assets.

• "No Flow" Transactions: These transactions do not result in any change in the total cash and cash equivalents.

1. Non-Cash Investing/Financing: For instance, issuing shares to a vendor for acquiring machinery is a transaction without cash flow impact.

2. Movements within Cash & Cash Equivalents: Transactions that reallocate funds among different components of cash and cash equivalents, such as cash deposited into a bank or cash withdrawn from a bank. The total of 'Cash and Cash Equivalents' remains unchanged.

What is the Structure of the Cash Flow Statement?

The CFS classifies cash flows into three distinct activities:

1. Operating Activities

2. Investing Activities

3. Financing Activities

Breakdown of Operating Activities

The calculation of cash flow from operating activities follows a structured approach:

1. Begin by determining the Net Profit Before Tax and Extraordinary Items.

2. Adjust this profit for non-cash and non-operating items to arrive at Operating Profit Before Working Capital Changes.

3. After incorporating working capital adjustments, the result is Cash Generated from Operations.

4. Finally, subtract the tax paid to obtain the net Cash Flow from Operating Activities.

Classification Between Activities in Financial vs. Non-Financial Enterprises

The classification of certain activities can vary based on the nature of the enterprise.

Company Balance Sheet Structure

The Balance Sheet of a company is presented in two main parts:

1. Equity and Liabilities

2. Assets

Under the Equity and Liabilities section, the first major head is Shareholders' Funds. This head includes the following sub-heads:

• Share Capital

• Reserves and Surplus

• Money Received against Share Warrants

What is Forfeiture and Reissue of Shares?

When a company forfeits shares (due to non-payment of calls) and subsequently reissues them, specific accounting treatments are required.

• Profit on Reissue of Forfeited Shares: Any balance remaining in the Forfeited Shares Account after accounting for any discount allowed on reissue is transferred to the Capital Reserve.

• Amount on Un-Reissued Forfeited Shares: If forfeited shares are not reissued, the amount in the Forfeited Shares Account remains there until the shares are eventually reissued.

Partnership Accounting: Admission of a Partner

The admission of a new partner often involves adjustments related to goodwill.

Scenario 1: New Partner Unable to Bring Goodwill in Cash

If a new partner is admitted but cannot bring their share of goodwill in cash, the following treatment is applied:

• The new partner's Current Account is debited for their share of goodwill.

• This amount is then credited to the old partners' capital accounts in their sacrificing ratio.

Scenario 2: Existing Partner Also Gains in New Ratio

In situations where an existing partner also gains in the new profit-sharing ratio, in addition to the new partner's treatment:

• The Gaining Partner's Capital Account must also be debited for the proportion they have gained.

Consolidated Journal Entry for Goodwill Adjustment

Incoming Partner's Current A/c .......................... Dr.
Gaining Partner's Capital/Current A/c ............ Dr.
To Sacrificing Partner(s)' Capital/Current A/c