A machinery was purchased on 1st January 2000 at a cost of Rs. 1,20,000 and was depreciated by diminishing balance method at the rate of 15% p.a. It was sold on 31st March 2002 for Rs. 80,000 what was the loss on sale of machine
A. Rs. 3,449
B. Rs. 3,658
C. Rs. 3,251
D. None of the above
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'X' Ltd. has a liquid ratio of 2 : 1. If its stock is Rs. 40,000 and its current liabilities are of Rs. 1 Lac, its current ratio will be:
A. 1.4 times
B. 2.4 times
C. 1.2 times
D. 3.4 times
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The minimum application money to be paid as per SEBI shall not be more than:
A. 15% of the issue price
B. 20% of the issue price
C. 25% of the issue price
D. 30% of the issue price
E. In between 15% to 20% of the issue price
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Unclaimed dividends should be shown in the balance sheet of a company under the heading of:
A. Reserve and Surplus
B. Provisions
C. Current Liabilities
D. Miscellaneous Items
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Which one of the following pairs is not correctly matched
A. Suppression of Invoices ⇔ External decoradtion
B. Surchage deprecition ⇔ Secret reserve
C. Debtors cash receipt ⇔ Reduction of fund sales
D. Deletion of credit sales ⇔ Understatment of liabilties
Select an option to see the answer and solution.
Which of the following is a Personal Account:
A. Pre-paid Salary Account
B. Drawings Account
C. Outstanding Rent Account
D. All of the above
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Which of the following is an intangible asset?
A. Furniture
B. Patent
C. Investment
D. Losse tools
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In Sinking Fund for redemption of Debentures Account, the amount is transferred every year from
A. Reserve Account
B. Profit and Loss Account
C. Capital Account
D. Surplus Account
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Sony and Romy are equal partners with fixed capitals of Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 8% per annum instead of 10% per annum. In the adjusting entry
A. Sony will be credited with Rs. 8,000 and Romy will be credited with Rs. 6,000
B. Sony will be debited with Rs. 8,000 and Romy will be debited with Rs. 6,000
C. Sony will be debited with Rs. 1,000 and Romy will be credited with in Rs. 1,000
D. Sony will be credited with Rs. 1,000 and Romy will be debited with Rs. 1,000
Select an option to see the answer and solution.
The return of goods by a customer is debited to:
A. Sales Return Account
B. Customer's Account
C. Purchase Account
D. Stock Account
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The break-even chart signifies the relationship between:
A. Cost and Volume of Sales
B. Cost and Volume of Profit
C. Cost and Volume of Production
D. All the above
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Which of the following statement is incorrect?
A. A person who receives profits is always a partner
B. A person who receives profits is not necessarily a partner
C. The true test of partnership is the mutual agency, i.e., agency relationship among partners
D. Partnership comes into existence only through an agreement
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If sales are Rs. 14,900, Gross Profit Rs. 3,300, Net Loss Rs. 500. The operating expenses will be:
A. Rs. 2,800
B. Rs. 3,800
C. Rs. 11,100
D. Rs. 11,600
Select an option to see the answer and solution.
The most precise test of liquidity is
A. Quick ratio
B. Current ratio
C. Absolute liquid ratio
D. None of the above
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Assertion (A): In preparing final accounts, if closing stock is given in the trial balance, it is shown only in the Balance Sheet.Reason (R): Any item appearing in the trial balance is treated only at one place i.e. either in the trading and profit & loss a/c or in the balance sheet.
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true, but (R) is not correct explanation of (A)
C. (A) is true but (R) is false
D. (A) is false but (R) is true
Select an option to see the answer and solution.
In piecemeal distribution of cash on dissolution of a firm, cash is distributed to partners in the-
A. Capital Ratio
B. Profit Sharing Ratio
C. Sacrificing Ratio
D. None of these
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Revaluation method of depreciation is generally used in the case of:
A. Plant
B. Land & building
C. Stock
D. Loose Tools
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Wages Outstanding' is appearing in the Trial Balance of a company. While preparing the Income Statement and Balance Sheet, 'Wages Outstanding' should appear in-
A. the Balance Sheet only
B. the Income Statement only
C. both Income Statement and Balance Sheet
D. neither Income Statement nor Balance Sheet
Select an option to see the answer and solution.
Interest on loan be allowed to partners where there is no express agreement between partners to this effect and also partnership deed does not have any provision regarding this
A. No interest will be allowed
B. Allowed Interest @ 12% per annum
C. Allowed Interest @ 6% per annum
D. None of these
Select an option to see the answer and solution.
The cost of the motor car as on 1st January 1987 is Rs. 70,000. The rate of depreciation is 10% P.A. The balance of motor car on 1st January 1991 by fixed installation method and by written down value method will be
A. Rs. 42,000, Rs. 45,927
B. Rs. 45,927, Rs. 47,526
C. Rs. 35,000, Rs. 39,415
D. Rs. 45,927, Rs. 48,718
Select an option to see the answer and solution.
