Rajiv Limited forfeited 20 shares of Rs. 10 each on which Rs. 6 per share had been paid. Out of these, 10 shares are re-issued as fully paid at a price of Rs. 5.50 per share. The amount to be transferred to Capital Reserve Fund would be:
A. Rs. 10
B. Rs. 12
C. Rs. 15
D. Rs. 18
Select an option to see the answer and solution.
Given:
Gross Profit
Rs. 60,000
Gross Profit rate
20%
Debtors velocity
2 Month
The amount of debtors will be:
A. Rs. 12,000
B. Rs. 50,000
C. Rs. 1,20,000
D. Rs. 3,00,000
Select an option to see the answer and solution.
Assume that
A. M - N = O + P
B. M - O = P - O
C. M - O = P - N
D. P - M = N + O
Select an option to see the answer and solution.
A Ltd. forfeited 500 shares of M of Rs. 10 each fully called-up for non-payment of first call of Rs. 2 per share and final call of Rs. 2 per share. 300 of these shares were reissued at 9 per share, fully paid-up. What amount will be transferred to the Capital Reserve A/c?
A. Rs. 2,000
B. Rs. 1,200
C. Rs. 1,500
D. Rs. 1,800
Select an option to see the answer and solution.
Accounting standards in India are issued by -
A. Central Government
B. State Government
C. The Institute of Chartered Accountants of India
D. RBI
Select an option to see the answer and solution.
Which of the following features is not present with partnership form of organization?
A. Perpetual succession
B. Unlimited liability
C. Creation by an agreement
D. Voluntary registration
Select an option to see the answer and solution.
If subsription received during the year is Rs. 4,460, outstanding subscription at the end of the year is Rs. 290, outstanding subscription at the beginning of the year is Rs. 90, advance subscription received for the next year is Rs. 160, the amount of subscription to be shown in income and expenditure account will be:
A. Rs. 4,500
B. Rs. 4,220
C. Rs. 4,380
D. Rs. 4,750
Select an option to see the answer and solution.
Stock appearing in the Trial Balance is shown in
A. Trading Account
B. Profit and Loss Account
C. Balance Sheet
D. Trading Account and Balance Sheet
Select an option to see the answer and solution.
If capital is Rs. 50,000, liability is Rs. 30,000 and fixed assets are Rs. 70,000, then the value of current assets will be
A. Rs. 90,000
B. Rs. 50,000
C. Rs. 10,000
D. Rs. 1,50,000
Select an option to see the answer and solution.
Determination of cost from actual expenses incurred is termed as
A. Direct costing
B. Indirect costing
C. Historical costing
D. Standard costing
Select an option to see the answer and solution.
Match
List-I with
List-II and select the correct answer:
List-I List-II
a. Credit purchase of an asset
1. Purchase Return
b. Cash sales of an asset
2. Sales Return
c. Return inward
3. Cash Book
d. Return outward
4. Journal Proper
A. a-1, b-2, c-3, d-4
B. a-3, b-1, c-4, d-2
C. a-4, b-3, c-2, d-1
D. a-1, b-3, c-2, d-4
Select an option to see the answer and solution.
Which of the following is not an example of contingent liability?
A. Liability under guarantee
B. Interim dividend
C. Liability in respect of bills discounted
D. None of the above
Select an option to see the answer and solution.
The current ratio of a firm is 2 : 1. Which one of the following suggestion would improve the ratio?
A. To pay a current liability
B. To borrow money for a short period on an interest bearing promissory note
C. To purchase goods for cash
D. To give an interest bearing promissory note to a creditor in payment of the full amount due to him
Select an option to see the answer and solution.
The convention of conservation will have the effect of-
A. overstatements of assets
B. understatements of assets
C. understatements of liabilities
D. understatements of provision for bad and doubtful debts
Select an option to see the answer and solution.
Horizontal analysis is
A. Dynamic analysis
B. Average analysis
C. Trend analysis
D. Static analysis
Select an option to see the answer and solution.
The liquidity position of a business enterprise is best reflected by:
A. Current ratio and debtors turnover ratio
B. Quick ratio and asset turnover ratio
C. Current ratio and net profit ratio
D. Quick ratio and ROI
Select an option to see the answer and solution.
Which one of the follwoing is not a function of accounting?
A. Keeping systematic record
B. Protecting the properties of the Business
C. Maximising the results
D. Meeting legal requirements
Select an option to see the answer and solution.
A company issued shares of Rs. 100 each on which Rs. 80 has been paid-up and the company declares a dividend of 25%. The amount of dividend per share comes to Rs. 20. On the basis of normal rate of return of 10%, the market value of share will be
A. Rs. 40/40
B. Rs. 120/120
C. Rs. 160/160
D. Rs. 200/200
Select an option to see the answer and solution.
What is the main function of accounting?
A. Recording of economic data
B. Provide information base for work
C. Recording and classification of business transaction
D. Achievement of non-economic goals
Select an option to see the answer and solution.
Assertion (A) The Partnership Act does not make it obligatory that a firm must a deed in writing.Reason (R) It is better to have it in writing to avoid confusion.
A. (A) is true, but (R) is false
B. (A) is false, but (R) is true
C. Both (A) and (R) are true
D. Both (A) and (R) are false
Select an option to see the answer and solution.
