Qa COMMERCE O Accountancy F se © ; O Economics ; Ce e » O Business Studies O Maths X mh )Attempt only 40 questions out of the given 50 questions. Instructio1 Full Marks: 40 eta lett em g (Time: 45 Minutes) If the credit side of Receipts and Payments A/e exceeds the debit side, the balance represents: a, Bank charges c. Bank overdraft <100000 received as annual subscription. Out of this <20000 is of pervious year whereas <10000 is receivable at the end of the current year. b. Commi n d. Interest a. <1,00,000 b. <90,000 ©. <1,20,000 d. <80,000 In the Income and Expenditure Account, all revenue receipts are entered on the a. Left-hand side b. Right-hand side c. Liability side d. Asset side }- Out of the following items, whieh One is shown in the Receipts and Payments Account? a. Outstanding Salary b, Depreciation c. Life Membership Fees 4, Acérued Subscription Surplus of Not-for -Profit organisations a. Distributed among the members b, Is not distributed among the members ©. May be or May not be distributed among the members 4. Is debited to General fund Ostensible partners are those who a. do not contribute any capital but get some share of profit for lending their name to the business b, contribute very less capital but get eugl profit ¢. do not contribute any capital and without having any interest in the business, lend their name to the business 4. contribute maximum capital of the business 7. Profit will be divided in 10. i. 12. in the absence of partnership deeds. adil b.2:1 e1:2 . equal ratio When only Partner’s capital Account is maintained all the adjustments are made: a, Partners) Capital Accounts b, Partners” Current Accounts ©. Cash Account d. None of these What time would be taken into consideration if an equal monthly amount is drawn as drawings at the beginning of each month ? a. 7 months ¢. 5 months b. 6 months 4. 6.5 months In a partnership, liability of all partners is a. unlimited b, limited ©. according to capital d, decided by company act The ratio in which the continuing partners acquire the outgoind partners share is called a. Gaining Ratio b, New Profit sharing ratio ©. Old Profit sharing ratio d, None of the options Goodwill is nothing more than probability that the old customer will resort to the old place. This definition of goodwill was given by: b. ICAL 4. AICPA a, Spicer and Pegler ©. Lord Elton Gaining Ratio is a. New Ratio ~ Old Ratio14. 15. 16. 17. 18. 19. b, Old Ratio ~ New Ratio ¢. New Ratio + Old Ratio 4. Old Ratio + New Ratio The partners whose share decrease as a result of change in profit sharing ratio are known as a. Sacrificing Partners d. Gaining Partners ©. Sleeping Partners d, None of the options A, B and C were partners sharing profit or loss in the ratio of 7 : 3 : 2. From Jan. 1,2019 they decided to share profit or loss in the ratio of 8:4: 3, Due to change in the profit-loss sharing. ratio, B’s gain or sacrifice will be a. Gain 1: 60 b. Sacrifice 1 : 60 ©. Gain 2: 60 d, Sacrifice 3: 60 In the absence of any information regarding the acquisition of share in profit of the retiring/ decreased partner by the remaining partners. It is assumed that they will acquires his/her shares: a. Old Profit Sharing ratio b, New Profit Sharing ratio c. Equal Ratio 4. None of these X, Y and Z were partners sharing profits in the ratio of 5:3: 2. Goodwill does not appear in the books but it is agreed to be worth 1,00,000 Rs. X retires from the firth and Y and Z decide to share profits equally. X’s share of goodwill, will ted to Y's and Z’s Capital Ales in b2:3 d, None of these What treatment is made of accumulated profits and losses on the retirement of a partner? a. Credited to all partner’s capital accounts in old ratio. b, Debited to all partner’s capital accounts in old ratio, ¢. Credited to remaining partner’s capital accounts in new ratio. 4. Credited to remaining partner’s capital accounts in gaining ratio. What journal entry will be recorded for writing off the goodwill already existing in the Balance Sheet at the time of retirement of a partner? a. Retiring Partner’s Capital A/c Dr. To Goodwill Ale 20, 21, 22, 23, 24, 28, 26. © b, All Parter’s Capital A/es (including retiring) Dr. (in old ratio) To Goodwill Ale c. Remaining Partner's Capital Aves Dr. gaining ratio) To Goodwill A/c 4, Remaining Partner’s C: ratio) To Goodwill A’e Revaluation account or Profit & loss adjustment account is (in pital Ales Dr, (in new b, Real Account 4. None of the options In which condition a parmership firm is deemed to be dissolved? a. Personal Account c. Nominal Account a. Ona partner’s admission b, On retirement of a partner c. On expiry of the period of partnership 4. On loss in partnership. New ratio is not to be calculated on: a. Admission of a partner b. tetirement of a partner c. death of a partner 4. dissolution of a partnership On Dissolutioti, Goodwill Account is transferred to a: In the capital Accounts of Partners . On the credit of Cash Account c. On the debit of Reasliation Account 4. On the credit of Reasliation Account On Dissolution, Goodwill Account is transferred to a. In the capital Accounts of Partners b. On the credit of Cash Account c. On the debit of Realisation Account 4. On the credit of Reasliation Account At the dime of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to : a, Realisation Account ». Creditors’ Account ¢. Partners’ Capital Accounts 4, Profit & Loss Account Minimum number of members in a Private Company a2 e7 es27. The profit on reissue of forfeited shares is transferred to: a. General Reserve 28, Reserve share capital means : a. Part of authorised capital to be called at the beginning b. Portion of uncalled capital to be called only at liquidation ¢. Over subscribed capital 4d. Under subscribed capital 29, The following amounts were payable on the issue of shares by a company: Rs. 3 on application, Rs. 2 the first call, and Rs. 2 on the final call, holding 500 shares paid only application and allotment mon whereas Y holding 400 shares did not pay a final call. Amount of calls in arrear will be a. Rs. 3,800 b. Rs. 2,800 ©. Rs. 1,800 4. Rs. 6,200 30. Which debentures are issued with a specific rate of interest a. Coupon rate debentures b. First debentures. ©. Second debenture 4. None of the options 31. When all debentures are redeemed, balance in the Debenture Redemption, Fund Account is transferred to: Capital Reserve b. General Reserve , Profit & Loss Appropriation A/e 4. None of the above If debentures of Rs. 50,000 are issued at par but redeemable at a premium of 10%. By what principle of accounting, the loss on issue of debentures account will be debited with Rs. 5,000 while passing the issue entry? a, Principle of Revenue recognition b, Principle of Materiality ¢. Principle of Conservatism/Prudence 4. Principle of Full Disclosure, 33. Debentures of a Company can be issued 34, 38. 36. 38. 39, 40. 41. © a. For Cash b, For Consideration other than Cash. c. Asa Collateral Security d. All of the above Debentures account is always credited with the b Premium Value 4. None of the options Which of the following is the element of financial statements? a. Nominal value ¢. Discount value b. Profit & Loss A/c d. None of the above Balance Sheet . Both (a) and (b) is conducted by bankers and government a, External Analysis, b. Internal Analysis ¢. External Analysis and Internal Analysis None of the options . Closing stock is recorded in the a. Balance sheet b. Profit and loss account c. Trial balance 4. None of the options According to the prescribed order of assets in a Company's Balance Sheet which the asset should be shown first of all? a. Non-current Assets b, Current Assets, ¢. Current Investments 4. Loans and Advances Interpretation of Financial Statements includes: a. Criticisms and Analysis b, Comparison and Trend Study c. Drawing Conclusion 4. All the above Which of the following statements are true a. All of the options Extemal analysis depends ntirely on issued financial statements Interpretation and analysis both are different Financial analysis covers interpretation jignificance or Importance of Financial Analysis is nae a. All of the options42. 43. 44. 4s. 46. 47. 48. 49. '. To know the profitability Condition ¢. To know the liquidity Condition 4. To know the solvency Condition ‘Who among the following is not an external user of the financial statement analysis? a, Shareholders c. Creditors b, Debenture holders 4. Management Two basic measures of liquidity are: a, Inventory turnover and Current ratio b. Current ratio and Quick ratio ©. Gross Profit ratio and Operating ratio 4. Current ratio and Average Collection period The formula for ascertaining Total Assets to Debt Ratio is: Total Assets Tong—term Loans Current Assets Total Assets © Total Liabilities Total Liabilities Proprietary or equity ratio is equal to Tangible Assets Tong-term Loans a, Shareholders funds/total assets . Shareholders funds* total a b. sets ¢. Shareholders funds. a. total assets None of the options Working Capital is the Capital borrowed from the Banks. Difference between Current Assets and Curtent Liabilities, Difference between Current Assets and Fixed Assets, 4. Cash and Bank Balance. Sale of Copyrights is concemed with oP a, Investing Activities b, Operating Activities ¢. Both Operating Activities and Financing Activities 4d. Financing Activities Preparation of cash flow s a. Mandatory b, Recommendatory ¢. Required under the Companies Act 4. None of these Which of the following is source of cash? a, Cash deposited into Bank 50. b, Cash withdrawn from Bank ¢, Sale of Goods costing 210,000 for 88,000 4. Sale of marketable securities for cash Dividend Received is concerned with a, Investing Activities b, Operating Activities Financing Activities Both Operating Activities Activities e and Financing© eS LoO2wob%® ® 4 & & © 6&6 O 2M. @%® @ 1 @ UW. (@) 12 (&) 13, (@) 14 (@) IS. @)— 16. (@)_ 17. (b) TB. (a) 19.) 20. () 21. (©) 22 () 23. (©) 24 (©) 28. (©) 26. (27. (©) 28. (b) 29% (b) 30. @@) 3. @ 32% ©) 33 @ 34 @ 35 ©) 36 (@ 37. @ 38 @) 3% @ 40. @ AL (@) 42.) 43.) 44. (a) 45, (©) 46, (0) 47. (2) 48. (a) 49.) 50. (a) COMING SOON Wane 2 ... 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