Match
List-I with
List-II and choose correct answer:
List-I List-II
P. Partner's loan
1. Debit balance of profit and loss
Q. Death of a partner
2. 6% interest
R. Loss in business
3. Joint life insurance policy
S. Revolution account
4. Profit and loss adjustment account
A. P-2, Q-3, R-1, S-4
B. P-1, Q-2, R-3, S-4
C. P-3, Q-2, R-1, S-4
D. P-4, Q-1, R-2, S-3
Select an option to see the answer and solution.
Accounting Standard relating to Accounting Policies is
Select an option to see the answer and solution.
Original cost of an asset is Rs. 57,000, scrap value Rs.2,000 and estimated life 10 years. What will be the amount of depreciation in the first year according to the sum of the year's digits methods:
A. Rs. 10,000
B. Rs. 5,900
C. Rs. 5,700
D. Rs. 5,500
Select an option to see the answer and solution.
The basic purpose of funds flow statement is to indicate the
A. funancial position
B. increase or decrease in working assets
C. increase or decrease in liabilities
D. increase or decrease in working capital
Select an option to see the answer and solution.
The accounting standard related to amalgamation of company is
A. AS-14
B. AS-20
C. AS-16
D. AS-12
Select an option to see the answer and solution.
When interest is to be allowed on the capitals of the partners, it is generally calculated on the:
A. Capital in the beginning of the year
B. Capital in the end of the year
C. Average capital
D. Capital at the end of the year less drawings, if any
Select an option to see the answer and solution.
Out of the following, which four expenditures would be recorded in the motor van account?
A. 1, 2, 3 and 4
B. 1, 2, 5 and 6
C. 1, 3, 5 and 6
D. 1, 2, 3 and 5
Select an option to see the answer and solution.
Limited Partnership form of business organisation means
A. the number of partners is limited
B. the liability of some partners limited
C. the liability of all partners is limited
D. the amount of capital that can be raised is limited
Select an option to see the answer and solution.
Dividend declared and paid by a company is
A. an expense of the company
B. an income of the company
C. the distribution of profit earned by the company
D. the source of fund for the company
Select an option to see the answer and solution.
It is given in adjustment that during the accounting year, the trader distributed goods worth Rs. 5,000 as free samples. While preparing Final Accounts, this will be shown in
A. Profit and Loss Account
B. Both in Trading and Profit and Loss Account
C. Trading Account
D. Balance Sheet
Select an option to see the answer and solution.
If sales are Rs. 18,000 gross profit Rs. 5,000 net loss Rs. 1,000, then the amount of operating expenses will be
A. Rs. 4,000
B. Rs. 6,000
C. Rs. 13,000
D. Rs. 17,000
Select an option to see the answer and solution.
Stock turnover ratio refers to the ratio of the average amount of stock available in the museum with
A. Quantity of material used in a given period
B. Quantity of material purchased in a given period
C. Quantity of material produced in a given period
D. None of the above
Select an option to see the answer and solution.
The cash inflow per annum will be-
A. Accounting profit-tax
B. Accounting profit-tax depreciation
C. Only accounting profit
D. None of the above
Select an option to see the answer and solution.
Only personal and real accounts are shown in:
A. Trial balance
B. Balance sheet
C. Profit and loss A/c
D. Trading A/c
Select an option to see the answer and solution.
Match the following:
List-I List-II
a. Revaluation account is prepared at the time of
1. may or may not be surrendered at the time of retirement of a partner
b. Joint Life Policy
2. to settle the claim of the outgoing partner
c. Premium on Joint Life Policy taken up on the lives of all partners is paid by
3. admission of a partner
d. The objective of taking Joint Life Policy by a partnership firm is
4. partnership firm
A. a-4, b-3, c-2, d-1
B. a-3, b-1, c-4, d-2
C. a-2, b-1, c-4, d-3
D. a-2, b-4, c-1, d-3
Select an option to see the answer and solution.
With the help of following information, find out the value of fixed assets-
A. Rs. 5,04,000
B. Rs. 5,40,000
C. Rs. 3,60,000
D. Rs. 5,88,000
Select an option to see the answer and solution.
Cash flow statement is not helpful in:
A. Planning the repayment of loans and replacement of fixed assets
B. Projecting the profits of the business in the long run
C. Detecting the causes of poor cash position inspite of substantial profits
D. Evaluation of cash position of a firm
Select an option to see the answer and solution.
A, B and C who are partners had a credit balance of Rs. 5,000, Rs. 10,000 and Rs. 20,000 respectively in their capital accounts when the firm was dissolved and the assets disposed off piecemeal. If in the first instalment the realisation is Rs. 10,000 and the Garner Vs. Murray rule is applicable, the distribution among the partners will be:
A. Rs. 3,333, Rs. 3,333, Rs. 3,334
B. Rs. 1,667, Rs. 3,333, Rs. 5,000
C. Rs. 1,429, Rs. 2,857, Rs. 5,714
D. Rs. 1,500, Rs. 3,000, Rs. 5,500
Select an option to see the answer and solution.
The loss arising from the acquisition of business to its incorporation should be debited to:
A. Profit and loss account
B. Capital reserve account
C. Goodwill account
D. Profit and loss adjustment account
Select an option to see the answer and solution.
According to Companies Act, 2013 shares can be issued by a company at
A. Par
B. Discount
C. Par or Premium
D. Premium
Select an option to see the answer and solution.
