Match the following.
List-I List-II
a. The formula for calculating the profit on reissue is . . . . . . . .
1. Article of Association
b. Right shares must be first offerred to existing . . . . . . . .
2. Security premium
c. Premium received on issue of debenture is credited to . . . . . . . . account
3. Amount forfeited less discount on reissue
d. Redeemable preference shares can be issued only when it is authorised by its . . . . . . . .
4. Equity shareholders
A. a-3, b-4, c-1, d-2
B. a-3, b-1, c-4, d-2
C. a-3, b-4, c-2, d-1
D. a-4, b-3, c-2, d-1
Select an option to see the answer and solution.
Accounting principles are based on
A. Practicability
B. Subjectivity
C. Convenience in recording
D. None of the above
Select an option to see the answer and solution.
Four milkmen, A, B, C and D rented a pasture. A grazed 24 cows for 3 months; B grazed 10 cows for 5 months; C grazed 35 cows for 4 months; D grazed 21 cows for 3 months. If A's share of rent is Rs. 720, find the total rent of the field
A. Rs. 3,000
B. Rs. 3,200
C. Rs. 3,250
D. Rs. 3,300
Select an option to see the answer and solution.
Average profit of a firm is Rs. 40,000, Its total assets amounted to Rs. 4,00,000 and its liabilities to Rs. 1,00,000. If return is similar of same firm is 10% on capital employed, what will be the value of goodwill of this firm:
A. Rs. 2,00,000
B. Rs. 4,00,000
C. Rs. 1,00,000
D. Rs. 3,00,000
Select an option to see the answer and solution.
When working capital is Rs. 60,000 and current ratio is 3 : 1 the current liabilities will be:
A. Rs. 30,000
B. Rs. 80,000
C. Rs. 90,000
D. Rs. 1,20,000
Select an option to see the answer and solution.
Capital is equal to:
A. Fixed asset + current asset
B. Total cash + Bank Balances
C. Total assets - Total external liabilities
D. None of these
Select an option to see the answer and solution.
Credit sales of business assets are recorded in
A. Sales journal
B. Journal proper
C. Cash book
D. Sales account
Select an option to see the answer and solution.
Identify, which of the following partnership's characteristic is a disadvantage?
A. Voluntary association
B. Minimal legal restrictions
C. Limited liability
D. None of the above
Select an option to see the answer and solution.
Goodwill is shown on
A. Asset side of Balance Sheet
B. Liabilities side of Balance Sheet
C. Debit side of Profit and Loss Account
D. Debit side of Trading Account
Select an option to see the answer and solution.
In the absence of any provision in the partnership agreement, partners are paid interest on partners loan @
A. 5% per annum
B. 6% per annum
C. 8% per annum
D. 10% per annum
Select an option to see the answer and solution.
In case of a firm's dissoultion, the capital accounts are finally closed by
A. Realisation Account
B. Profit and Loss Account
C. Cash or Bank Account
D. Profit and Loss Appropriation Account
Select an option to see the answer and solution.
Assertion (A) Human resource accounting is the measurement of the cost and value of people to the organisation.Reason (R) Human resource accounting involves measuring costs incurred by the, organisations to recruit, select, hire, train and develop employees and judge their economic value to the organisation.
A. (A) and (R) are true and (R) is the correct explanation of (A)
B. (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. Both (A) and (R) are false
Select an option to see the answer and solution.
Premium on redemption of debentures account, until redeemed, is shown in-
A. Current liabilities
B. Current provisions
C. Provisions for liabilities
D. Long-term provisions
Select an option to see the answer and solution.
Double Account system is applicable to:
A. Consumer industries
B. Chemical industries
C. Public enterprises
D. Public utility concern
Select an option to see the answer and solution.
What is the meaning of book keeping?
A. Recording in preliminary books
B. Preparation of profit and loss account
C. Calculation of net profit
D. Writing partnership deed
Select an option to see the answer and solution.
"Book keeping is an art of recording of business and other transactions in monetary terms." This definition has been given by
A. Spicer and Pegler
B. J. R. Batliboy
C. Carter
D. John Macneil
Select an option to see the answer and solution.
Prepaid insurance account is:
A. an expense
B. a revenue
C. an asset
D. a liability
Select an option to see the answer and solution.
In an organization, provision for Bad debts is Rs. 5,000 in the beginning. At the end total sales is Rs. 6,00,000 out of which Rs. 1,00,000 is cash sales. 1% provision is to be created on remaining debtors. The amount to be debited to profit and loss account in respect of provision is.
A. Rs. 6,000
B. Rs. 5,000
C. Rs. 1,000
D. Zero
Select an option to see the answer and solution.
Opening Stock = Rs. 10,000
A. Rs. 60,000
B. Rs. 72,000
C. Rs.80,000
D. Rs. 90,000
Select an option to see the answer and solution.
Find gross profit/gross loss if,
Cost of goods sold
Rs. 7,900
Sales
Rs. 11,000
Purchase
Rs. 3,000
A. Rs. 8,000
B. Rs. 4,900
C. Rs. 3,100
D. Rs. 100 (Profit)
Select an option to see the answer and solution.
