X and Y are partners in a firm who share profits and losses in 2 : 1. their capital balance are Rs. 50,000 and Rs. 30,000 respectively. If Z with consent of Y takes half of the share of X for Rs. 30,000 then Z's capital account will be credited by what amount.
A. Rs. 25,000
B. Rs. 5,000
C. Rs. 15,000
D. Rs. 20,000
Select an option to see the answer and solution.
The entity concept of Accounting is applicable to:
A. Sole Proprietary Concern
B. Partnership Firm
C. Joint Stock Company
D. All of the aforesaid
Select an option to see the answer and solution.
Machinery purchased in the journal entry for the transaction, machinery account will be
A. Debited
B. Credited
C. Debited and Credited
D. None of the above
Select an option to see the answer and solution.
A and B are partners sharing profit and loss in the ratio of 4 : 3. They admit C to the partnership for 5 1 20 3 20 1
A. 15 : 13 : 7
B. 23 : 17 : 10
C. 33 : 23 : 14
D. 59 : 53 : 28
Select an option to see the answer and solution.
Match the items of
List-I with those of
List-II and indicate the correct answer:
List-I List-II
a. AS-6
1. Accounting for consolidated financial statements
b. As-3
2. Accounting for fixed assets
c. AS-10
3. Depreciation accounting
d. AS-21
4. Accounting for cash flow statement
A. a-2, b-4, c-3, d-1
B. a-3, b-4, c-2, d-1
C. a-4, b-3, c-1, d-2
D. a-1, b-2, c-3, d-4
Select an option to see the answer and solution.
A company bought assets worth Rs. 3,60,000 and in lieu issued debentures of Rs. 100 each at a discount of 10%. The number of debentures issued will be:
A. 3,900
B. 3,600
C. 3,000
D. 4,000
Select an option to see the answer and solution.
Discount allowed on issue of shares is an example of
A. Capital Expenditure
B. Deferred Revenue Expenditure
C. Revenue Expenditure
D. Accrued Income
Select an option to see the answer and solution.
Amount set apart to meet probable losses on account of bad debts is a:
A. Liability
B. Reserve
C. Provision
D. Contingent liability
Select an option to see the answer and solution.
Assertion (A) Sinking fund is a charge against profit and loss account.Reason (R) Sinking fund is created for repayment of a long-term liability.
A. (A) is true, but (R) false
B. Both (A) and (R) are true
C. (A) is false, but (R) true
D. Both (A) and (R) are false
Select an option to see the answer and solution.
In case of dissolution of a firm, in which order the following creditors should be paid?
A. 1, 2, 3, 4
B. 1, 3, 4, 2
C. 2, 3, 4, 1
D. 2, 3, 1, 4
Select an option to see the answer and solution.
Which of the following is not a current asset?
A. Stock
B. Preliminary expenses
C. Debtors
D. Cash balance
Select an option to see the answer and solution.
After sale of investment the balance of sinking fund investment account is transferred to
A. Profit and loss account
B. Capital reserve account
C. Sinking fund account
D. Debentures account
Select an option to see the answer and solution.
The only item that is not recorded in the books of account is-
A. Goodwill
B. Special Discount
C. Trade Discount
D. Cash Discount
Select an option to see the answer and solution.
Liability of a partner in a partnership firm
A. limited
B. unlimited
C. restricted
D. undefined
Select an option to see the answer and solution.
If opening stock is Rs. 2,45,000, Purchases Rs. 15,00,000, Sales Rs. 17,40,000 and Rate of gross profit on cost is 20%, then closing stock will be
A. Rs. 3,53,000
B. Rs. 2,95,000
C. Rs. 2,45,000
D. Rs. 1,95,000
Select an option to see the answer and solution.
When the reserve is to be capitalized the shares issued to the existing shares are called
A. Right issue
B. Bonus share
C. Preference share
D. All of the above
Select an option to see the answer and solution.
An arrangement under which a company raises funds by issuing securities which carry a fixed rate of interest or dividend which is less than the average earnings of the company with a view to increasing the return on equity shares, is known as:
A. Under-capitalisation
B. Over-capitalisation
C. Trading on equity
D. Capital gearing
Select an option to see the answer and solution.
On the admission of a new partner, Revaluation of assets and liabilities is to be made for the
A. benefit of old partners
B. benefit of new partner
C. mutual benefit of old and new partners
D. benefit of old partners who are sacrificing
Select an option to see the answer and solution.
Acid Test Ratio is:
A. Current Assets : Current Liabilities
B. Quick Assets : Current Liabilities
C. Total Assets : Total Liabilities
D. Fixed Assets : Fixed Liabilities
Select an option to see the answer and solution.
Cost volume profit analysis is not based on which of the following recognition-
A. The sales mix of the products remains constants
B. Quantity of stock is variable from year to year
C. Income and cost are linear within the prescribed limits
D. Value of goods and wages are immutable/constant
Select an option to see the answer and solution.
