Accountancy

MOST POPULAR AROUND THE WORLD
SUCCESS
PRACTICE BOOK» NOT FOR SALE

SERIES
ACCOUNTANCY
BOOST YOUR ECONOMICS KNOWLEDGE
DESIGNED FOR SURE SUCCESS

MCQ EDITION
NARAYAN CHANGDER
+ S
2 7 ON
9 TI RS
ES WE
QU NS
A
USEFUL FOR
4STUDENTS 4
□ □TEACHERS 4
□PARENTS 4□KIDS 4
□QUIZ TEST
□EXAM 4
4 □TRIVIA TEST 4
□COMPETITIVE EXAM 4
□OTHERS
2
Preface:
This book has undergone rigorous scrutiny to ensure its accuracy. I eagerly invite constructive
feedback on its content. Feel free to reach out to me via Facebook at https://www.facebook.
com/narayanchangder. Additionally, you can access all of my books on Google Play Books at
https://play.google.com/store/books/author?id=Narayan+Changder.
JAI SHREE RAM
NARAYAN CHANGDER
This E-book is dedicated to the loving memory of my mother:

my guiding light, my shining star,
forever
It is my deepest gratitude and warmest

affection that I dedicate this Ebook.
To my mother JOYTSNA CHANGDER

who could not see this Ebook.
who has been a constant source of Knowledge and in-

spiration. Mom, Covid did not take you, it took our
many dreams. wherever you are we will meet again.
Disclaimer
The aim of this publication is to sup-

ply information taken from sources be-
lieved to be valid, reliable and authen-
ticate. The author bear no responsibil-
ity for any damage arising from inad-
verent omissions, negligence or inac-
curacies (typographical or factual) that
♣
NARAYAN CHANGDER
may have found their way into this PDF
booklet.
Due care has been taken to ensure that
the information provided in this book
is correct. Author is not responsible
for any errors, omissions or damage
arising out of use of this information.
nt
Importa inter-
s , s e ar ch the de
er to inclu -
i t h t h e answ w a n t
w u au
atisfied . If yo ontact
If not s rrect answers klet, please c t s:
p
net for
co
i n t h is boo F a c e b ook ht
estions on
tact him arayanchangd
er/
new qu a n c o n n
ou c om/
thor. Y acebook.c
. f
//www
CRUCIAL INFORMATION: PLEASE READ BEFORE
CONTINUING:

1. If you require practice sets on various sub-
jects, kindly send us a message on Facebook
with the subject name. Our team will be happy
to create them for you. Message us on Face-
book at https://www.facebook.com/
narayanchangder
2. Additionally, you can access all of my books
with answers on Google Play Books at »>
https://play.google.com/store/books/
author?id=Narayan+Changder
3. Answers are given at the end of every page
to help you identify your strengths and weak-
nesses.
4. It shows you how to build your own techni-
cal and pedagogical skills to enable them to
create their own materials and activities for
students.
5. It helps you to see how you can make the
transition from classroom teaching to blended
and online teaching.
6. It’s the cheapest good quality ebook that you
can buy online on google play books.
NARAYAN CHANGDER
7. The money raised from creating the sales of
the book will help to ensure that I’m able to
produce similar books like this at a compara-
ble price.
8. YOU CAN DOWNLOAD 4000+ FREE PRACTICE
SET PDF EBOOK ON VARIOUS SUBJECTS (NURS-
ERY to UNIVERSITY LEVEL) FROM GOOGLE
DRIVE LINK https://drive.google.com/
drive/u/1/folders/19TbUXltOSN5S7FV3sL
Contents
1 ACCOUNTANCY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 ACCOUNTANCY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. ACCOUNTANCY
NARAYAN CHANGDER
1.1 ACCOUNTANCY
1. If payment is to be made to the person 4. The ratio obtained by subtracting the old
whose name has been written after the ratio from the new ratio is called?
words “pay” on cheque is called a A. a. sacrifice ratio
A. bearer cheque B. B. equal ratio
B. order cheque C. S. profit ratio
C. dishonour of a cheque D. The. Loss a ratio
D. crossed cheque 5. A player plays football as a profession in
E. none of them any club is activity.
A. Non-economic
2. New partner does not bring his share in B. Economic
cash
C. Religious
A. Old partners cap. To new partners
D. Satisfaction
B. New partners cap. To old partners
6. Debit balance of the current account will
C. New partners current account To old be shown on the balance sheet
partners cap.
A. Liability
D. New partners cap. To new partners
B. Assets
current a/c
7. a company purchased a building for 7, 00,
3. Accounting 000 and issued equity shares at premium
A. includes Book-keeping of 20%
B. does not include Book-keeping A. share capital a/c dr. 800, 000To build-
ing a/c 720, 000To SPR a/c 80, 000
C. may or may not include Book-keeping
B. building a/c dr. 800, 000To share cap-
D. None of these ital a/c 640, 000To SPR a/c 120, 000
1. A 2. C 3. A 4. C 5. B 6. B 7. D
1.1 ACCOUNTANCY 3
C. share capital a/c dr. 720, 000 To build- 13. Lower the Debt Equity ratio
ing a/c 7, 00, 000 To SPR a/c 20, 000
A. Lower the protection to creditors

D. building a/c dr. 720, 000To share cap-
B. Higher the protection to creditors
ital a/c 600, 000To SPR a/c 120, 000
C. It does not affect the creditors
8. Which account is classified as an Liability?
D. None of the above
A. Concert Tickets
B. Bank Account 14. Income received before services or goods
C. Allowance are provided is referred to as
D. Auto Loan A. net income
9. A machinery which cost 200, 000 is depre- B. gross income

ciated at 25% per year using the written C. income received in advance
down value method. At the end of three
D. accrued income
years it will have a net book value of
A. 1, 50, 000 15. If the two sides of an account are equal
B. 84, 375 then account will show:(2015)
C. 1, 12, 500 A. Debit balance
D. 1, 00, 000 B. Zero balance
10. A debtor of Rs.5, 000, already transferred C. Credit balance
to Realisation Account agreed to pay the D. Debit, Credit balance
Realisation Expenses of Rs.4, 500 in full
settlement of his claim. Choose the correct 16. In the absence of partnership deed, the fol-
option: lowing rule will apply
A. Realisation Account will only be deb- A. No interest on capital
ited by Rs.4, 500.
B. Profit sharing in capital ratio
B. No Entry will be passsed.
C. Profit based salary to working partner
11. The part of the capital which can be called-
up only in case of winding up of the Com- D. 9% p.a. interest on drawings
pany is called
17. Income that has been deducted from ex-
A. Authorised Capital penses and other costs is referred to as
B. Called up Capital
A. business income
C. Uncalled Capital
B. non-business income
D. Reserve Capital
C. net income
12. The balance in Petty Cash Book is
D. gross income
A. An expense
B. A profit 18. where do we show wages&salary?
C. A liability A. trading credit side
D. An asset B. trading debit side
8. D 9. B 10. B 11. D 12. D 13. B 14. C 15. B 16. A 17. C 18. B

1.1 ACCOUNTANCY 4
19. What treatment is made of accumulated 23. An owner withdrawing cash from his busi-
profits and losses on the retirement of a ness for personal use is an events repre-
partner? senting business transaction
A. True
B. False
24. At the time of reconstitution of partner-

ship firm, which of the following adjust-
NARAYAN CHANGDER
ment is required?
A. Determination of New Profit-sharing
Ratio
A. Credited to all partner’s capital ac-
B. Treatment of Goodwill
counts in old ratio.
C. Revaluation of Assets and Reassess-
B. Debited to all partner’s capital ac-
ment of Liabilities
counts in old
D. All of the above
C. Credited to remaining partner’s capital
accounts in new ratio. 25. An increase in the balance in Accounts
D. Credited to remaining partner’s capital Payable.
accounts in gaining ratio. A. Operating
20. ON WHOM THE TRADE BILL DRAWN? B. Investing
A. seller C. Financing
B. creditor D. Supplemental
C. debtor 26. A registered company is established by the
D. owner
A. Company Act
21. In the absence of partnership deed, is in-
terest paid on loan drawn? B. Partnership Act
A. a. 6 percent annually C. Regulation Act
B. B. 8 percent annually D. Regional Act
C. S. 9 percent annually 27. Manufacturing business houses involve in

D. The. 0 percent per annum activities
A. Production
22. If payment is to be made to the person
whose name has been written after the B. Distribution
words “pay” on cheque is called a C. Exchange
A. bearer cheque D. Service
B. order cheque 28. The salary paid to a clerk Ramesh should
C. dishonour of a cheque be credited to?
D. crossed cheque A. Salary A/C
E. none of them B. Ramesh A/C
19. A 20. C 21. D 22. A 23. A 24. D 25. A 26. A 27. A 28. C 29. B
1.1 ACCOUNTANCY 5
C. Cash A/C 34. Final accounts is the stage of account-

ing cycle.
D. P/L A/C

A. Last
29. is the first step in accounting process B. First
A. Ledger C. Second
B. Journal D. none of above
C. Trial balance
35. As per table F Of Schedule I of Companies
D. Trading account Act 2013, the amount to be called up on
application or on any call shall not exceed
30. The balance in the investment Fluctuation % of total quantum of the issue
fund after meeting the fall in book value A. 20%
of investment, at the time of admission of
partner will transferred to: B. 25%
A. Revaluation Account C. 30%

D. 35%
B. Capital Account of old Partners
C. General Reserve 36. RECORDING OF TRANSACTIONS IS DONE
IN A BOOK CALLED
D. capital Account of All Partners
A. LEDGER
31. closing stock is recorded in trading account B. PURCHASE BOOK
and
C. JOURNAL
A. balancesheet liablity side
D. SALES BOOK
B. balancesheet asset side
37. Balance Sheet provides information about
C. profit and loss account financial position of the enterprise:
D. trading account debit side A. At a point in time
32. The example of legal record is B. Over a period of time

C. For a period of time
A. Letter
B. Bill
C. Articles of Association 38. Out of the following assets which one is
not a Current Asset?
D. Salary Sheet
A. Debtors
33. the need for valuation of goodwill arises B. Motor Car
A. when there is a change in the profit C. Bank Balance
sharing ratio D. Prepaid Expenses
B. when a new partner is admitted
39. In dissolution where are the Reserve and
C. when a partner dies accumulated profits transferred
D. all of the above A. Partners capital account
30. B 31. B 32. C 33. D 34. A 35. B 36. C 37. A 38. B 39. A
1.1 ACCOUNTANCY 6
B. Partners capital account realisation 44. Accounting process starts with

account A. Identification of financial transaction
C. Bank account
B. Posting into ledger
D. None
C. Recording in Journal
40. X and Y are partners sharing profits in the D. Summarising of financial transactions
ratio of 2:1. On 31st March, 2016, their
Balance Sheet showed General Reserve of 45. Double entry in accounting means there
NARAYAN CHANGDER
Rs.60, 000. It was decided that in future must be entries for every transaction?
they will share profits and losses in the ra-
A. two
tio of 3:2. Pass necessary Journal entry If
they want to show General Reserve in the B. Three
new Balance Sheet. C. six
A. X’s Capital A/c Dr. 4, 000 To Y’s Capi- D. one
tal A/c 4, 000
B. X’s Capital A/c Dr. 60, 000 To Y’s Cap- 46. In the absence of partnerships deed profit
ital A/c 60, 000 will he shared
C. Y’s Capital A/c Dr. 4, 000 To X’s Capi- A. Equal ratio
tal A/c 4, 000 B. Capital ratio
D. Y’s Capital A/c Dr. 60, 000 To X’s Cap- C. Both
ital A/c 60, 000
D. None of these
41. Which of the following items is shown
under the head ‘Current Assets’ while 47. The amount of net income calculated on an
preparing the Balance Sheet of a com- income statement is correct if
pany? A. debits equal credits
A. Trade Investment B. it is the same as the balance sheet
B. Underwriting Commission C. it is the same as the net income shown
C. Inventories on the work sheet
D. Livestock D. none of these
42. Received commission effects on 48. Financial statements are not comparable.
A. Cash and capital A. False
B. Cash and commission B. True
C. Capital and commission
49. The person to whom the amount are due
D. Capital only
for goods purchased or service rendered on
43. 13 L F means credit basis-
A. journal page number A. Credit purchase
B. last page of ledger B. Credit sales
C. ledger page number C. Trade creditors
D. all the above D. Trade debtors
40. C 41. C 42. A 43. C 44. A 45. A 46. A 47. C 48. A 49. C 50. D
1.1 ACCOUNTANCY 7
50. Which account is classified as an income? C. Balance sheet

A. Cash D. None of these.

B. cell phone bill
55. X and Y are partners in the ratio of 3:2.
C. credit card Their capitals are |2, 00, 000 and |1, 00,
D. babysitting payment 000 respectively. Interest on capitals is al-
lowed @ 8% p.a. Firm incurred a loss of
51. Which of the following is definition of ac- |60, 000 for the year ended 31st March,
counting? 2019. Interest on Capital will be:
A. It’s a process of classifying, recording, A. X |16, 000; Y |8, 000
and summarizing the business transaction
B. X |8, 000; Y |4, 000
in monetary unit, interpretating the data
and assist stakeholders in making deci- C. X |14, 400; Y |9, 600
sion. D. No interest will be allowed
B. It’s a process of recording, classifying,
and summarizing the business transaction 56. What rate interest is payable on the
in monetary unit, interpretating the data amount remaining unpaid to the executor
and assist stakeholders in making deci- of deceased partner
sion. A. 7%
C. It’s a process of classifying, recording, B. 8%
and summarizing the business transaction
interpreting the data and assist stakehold- C. 6%
ers in making decision. D. 4%
D. none of above
57. Specific donation received by not for profit
52. Those Assets which are acquired for the organisation is shown in the
purpose of increasing the earning capacity A. Credit side of income and Expenditure
of the business is called Account
A. Financial assets
B. Debit side of income and Expenditure
B. Current Assets Account
C. Fixed Assets C. Liability side of Balance Sheet
D. None of these D. As is decided by the management
53. Share can be issued to public at discount 58. X, Y & Z are partners in the ratio of 5:4:3.
A. True X has given to Z a guarantee of minimum
|10, 000 profit. For the year ending 31st
B. False
March, 2019, Firm’s profit is |28, 800.
C. Don’t know X’s share in profit will be:
D. None of these A. |9, 200
54. Gross loss is find from which account B. |9, 600
A. Trading account C. |7, 200
B. Profit &Loss account D. |12, 000
51. B 52. C 53. B 54. A 55. D 56. C 57. C 58. A 59. C

1.1 ACCOUNTANCY 8
59. Balance of Purchase Consideration is Deb- C. 155, 000

ited to
D. none of above
A. Capital A/c
B. Capital Reserve A/c 64. A Co. has issued 6, 000 equity shares of.
Rs. 10 each at par and called up amount
C. Goodwill A/c Rs. 6 per share. The remaining part of
D. Bank A/c capital is termed as
A. Called up Capital
NARAYAN CHANGDER
60. Mohar ltd. forfeited 160 shares of Rs. 10
each on which the holder had paid only the B. Paid up Capital
application money of Rs. 2 per share. Out
of these, 40 shares were reissued to Gau- C. uncalled Capital
rav as fully paid up for Rs. 9 per share. D. Subscribed Capital
The gain on reissue is
A. Rs. 320 65. The value of goodwill is based on judg-
ment of the valuer.
B. Rs. 160
A. Subjective
C. Rs. 40
D. None of these B. Objective
C. Both
61. What does a credit balance in the cash ac-
count on the trial balance indicate? D. None
A. Cash is Overdrawn
66. Distributing reserve
B. Cash is a liability
A. General reserve To old partners cap.
C. Cash is an asset
B. Old partners cap. To general reserve
D. Cash is an expense
C. General reserve To new partners
62. Accounting Equations means
D. New partners cap. To general reserve
A. A=L+C
B. L=A+C 67. Dinesh who owed us Rs 8, 000 became in-
C. C=L+A solvent and paid us 60% in full settlement.
Posting will be made to Dinesh A/c:
D. DEBIT=CREDIT
A. Rs 8, 000 on Debit side
63. Based on the above information, what
B. Rs 8, 000 on Credit side
amount will the corporation report as Net
Cash Provided by Operating Activities on C. Rs 4, 800 on Debit side
the cash flow statement?
D. Rs 4, 800 on Credit side
68. Goodwill at the time of Dissolution of Firm

is Closed by transferring it to Partners’
Capital Accounts.
A. 65, 000 A. True
B. 125, 000 B. False
60. C 61. A 62. A 63. A 64. C 65. A 66. A 67. B 68. B 69. A
1.1 ACCOUNTANCY 9
69. If the retiring partner is not paid full A. Share Capital a/c Dr 8, 00, 000To
amount due to him immediately on retire- Building a/c 7, 20, 000To Securities
ment, his balance is transferred to his Premium a/c 80, 000

A. Loan A/c B. Building a/c Dr 8, 00, 000To Share
B. Capital A/c Capital a/c 6, 40, 000To Securities Pre-
mium a/c 1, 20, 000
C. Bank A/c
C. Share Capital a/c Dr 7, 20, 000To
D. Suspense A/c Building a/c 7, 00, 000To Securities
Premium a/c 20, 000
70. on dissolution of a partnership firm, good-
will if appearing in the balance sheet, is D. Building a/c Dr 7, 20, 000To Share
transferred to Capital a/c 6, 00, 000To Securities Pre-
A. revaluation a/c mium a/c 1, 20, 000
B. realisation a/c 75. WHICH OF FOLLOWING IS NOT AN AD-

C. partners capital a/c VANTAGE OF DOUBLE ENTRY SYSTEM?
D. balance sheet A. SCIENTIFIC METHOD
B. COMPLETE METHOD
71. Capital Reserve Created out of
A. Super profit C. ARITHMETICAL ACCURACY
B. Average profit D. TIME CONSUMING
C. Capital profit 76. When the partners decide to dissolve the

D. Normal profit partnership, then the a/c prepared is
A. Revaluation a/c
72. The formula of sales revenue less cost of
goods sold enables you to calculate B. Realisation A/c
A. Net profit C. Memorandum revaluation
B. Operating profit D. None of these
C. Retained profit
77. A and B are partners sharing profits in the
D. Gross profit ratio of 3:2. On admission of C for 1/5th
share, Land is appreciated by 10% (Book
73. Profit 10500 commission 5% after charg-
Value Rs.80, 000), Building is decreased
ing commission
by 20% (Rs. 2, 00, 000), Unrecorded
A. 50 Debtors of Rs. 1, 250 are bought in the
B. 150 books and Creditors of Rs. 2, 750 need
not be paid. The Gain(profit) /loss on
C. 550 revaluation will be
D. 500 A. Loss |28, 000
74. A Company purchased a building for Rs. B. Profit |40, 000
7, 20, 000 and issued as payment equity
C. Profit |28, 000
shares at 20% premium. Journal Entry
will be D. Loss, |40, 000
70. B 71. C 72. D 73. D 74. D 75. D 76. B 77. A 78. A

1.1 ACCOUNTANCY 10
78. 7 Trial balance is a 83. Which of the following is not a sub-field of

A. (a) Statement accounting?
B. b) Account A. Financial Accounting
C. (c) Ledger B. Book keeping
D. (d) Journal C. Cost Accounting

Explanation:Equals debit and credit D. All of the above
records
84. Shares Application &Allotment A/c is a:-
NARAYAN CHANGDER
79. Which of the following is an incorrect for- A. Personal
mula?
B. Real
A. Capital = Assets-Liabilities
C. Nominal
B. Capital + Assets = Liabilities
D. artificial A/C
C. Capital + Liabilities = Assets
85. Purchasing of goods from foreign countries
D. Capital-Assets = Liabilities
for resale is known as
80. All undistributed losses are transferred to A. Import
capital account of the old partners in the
B. Export
ratio of
C. Enterprise
A. New Profit Sharing Ratio
D. All of above
B. Gaining ratio
C. Old Profit Sharing Ratio 86. Minimum subscription for issue of share
D. Sacrifice the system
A. 90%
81. The purpose of accounting is to
B. 10%
A. communicate information to inter-
C. 60%
ested users so that they can make in-
formed decisions D. 80%
B. communicate financial and non- 87. A, a creditor for Rs.25, 000 accepted a
financial information to interested users plant at Rs.18, 000 in settlement of his
so that they can make informed decisions claim, which of the following statement is
C. communicate non-financial informa- correct-
tion to interested users so that they can A. 25, 000 shall be debited to creditors
make informed decisions a/c
D. none of above B. 25, 000 shall be credited to P&M a/c
82. If rate of interest on Calls in advance is not C. No entry shall be passed
mentioned in the question, It will be D. 7, 000 shall be debited to realization
A. 6% a/c & 7, 000 shall be credited to cash a/c
B. 10% 88. WHERE ARE BILLS OF EXCHANGE USED?
C. 12% A. associations
D. 15% B. tourism
79. B 80. C 81. B 82. C 83. B 84. A 85. C 86. A 87. D 88. C 89. A
1.1 ACCOUNTANCY 11
C. international trade on 30th, Nov 2018. Under the partner-

D. none of above ship deed, the executors of deceased part-
ner are entitled to his share of profit up to

89. The basic function of Financial accounting the date of death, Profit as on ended 31st
Mar 2018 was Rs. 2, 40, 000 C’s share
A. Record all business transactions
of profit will be
B. Interpret financial data
C. Assist the management
D. None of these
90. Which of the following equation is correct
A. Assets= Liabilities-Capital
B. Liabilities= Assets-Capital A. 26667
C. Capital= Assets + Liabilities B. 40000
D. Assets= Capital-Liabilities C. 30000

D. 53333
91. Nisha paid Realiastion Expenses of Rs.10,
000 out of her private funds, who was 94. Which of the following is an example of a
to get a remuneration of Rs.8, 000 for cash in-flow for a business?
completing dissolution process and was re-
sponsible to bear all the realisation ex-
penses. Choose the correct option:
A. Nisha’s Capital Account will be Debited
by Rs.18, 000.
B. Nisha’s Capital Account will be Cred- A. payment to suppliers
ited by Rs.18, 000.
B. paying back a loan to a bank
C. Nisha’s Capital Account will be Debited
C. payment from debtors
by Rs.8, 000.
D. purchase of fixed assets
D. Nisha’s Capital Account will be Cred-
ited by Rs.8, 000. 95. How goodwill is recorded on the retire-
ment of a partner?
92. refers to choosing a desirable course of
A. Goodwill A/c Dr. To Retiring Partner’s
action from alternative courses of action
Capital A/c (with his share)
A. Control B. Remaining Partner’s Capital A/cs Dr.
B. Planning (In Gaining Ratio) To Retiring Partner’s
C. Decision Capital A/c (with his share of goodwill)
C. Goodwill A/c Dr. To All Partner’s Capi-
D. Forecasting
tal A/cs (In Old Ratio)
93. A, B, C were partners sharing Profit and D. Remaining Partner’s Capital A/cs Dr.
Losses in the ratio of 3:2:1 Books are (In New Ratio) To Retiring Partner’s Capi-
closed on 31stMarch every year. C dies tal A/c (with his share of goodwill)
90. B 91. D 92. C 93. A 94. C 95. B

1.1 ACCOUNTANCY 12
96. The portion of the capital which can be B. Business plan

called-up only on the winding up of the C. Partnership deed
company is called:
D. Partnership document
A. authorised capital
B. uncalled capital 102. A joint stock company is:
C. reserve capital A. An artificial legal person
D. issued capital B. Natural person
NARAYAN CHANGDER
97. Ravi and Mukesh are sharing profits in the C. A general person
ratio of 7:3. They admit Ashok for 3/7th D. None of these
share in the firm which he takes 2/7th
from Ravi and 1/7th from Mukesh. Cal- 103. Which account should be debited to pur-
culate new profit-sharing ratio. chase furniture for the domestic use of the
A. 14:6:15 owner? (2019)
B. 49:21:30 A. Purchases account

C. 7:3:3 B. Drawings account
D. 29:11:30 C. Proprietor’s Personal account
D. Furniture account
98. selling an asset would be an example of
A. cash inflow 104. which of the following is not a revenue
B. cash outflow receipt
A. donations for tournament
99. Nature of goodwill
B. government grants
A. Tangible
C. subscriptions
B. Intangible
D. entrance fees
C. Fixed assets
D. None 105. Very important records are kept up the
of the organization
100. Partnership act passed in the year
A. Functioning
A. 1932
B. Temporary Time
B. 1946
C. Two Years
C. 1947
D. 1955 D. Five Years
101. Suppose You and your friend start a busi- 106. Real accounts consist of:
ness in partnership. But you don’t know A. property
anything about the share of profits or
B. profit and loss
how will the profits be divided actually.
You ask your accountant friend for an ad- C. income
vice. He tells you to prepare a document. D. burden
what’s the document? Explanation:its nature is permanent,
A. Business document namely property
CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

1.1 ACCOUNTANCY 13
107. Who is entitled to Participate in manage- 112. Accounting is the language of the busi-
ment? ness

A. Equity shareholder A. False
B. Preference shareholders B. True
C. Debenture shareholder 113. Shares may be issued:

D. Manager A. At par value
B. At Premium
108. The art of recording all business transac- C. At Discount
tions in a systematic manner in a set of
books is called- D. Both (a) & (b)
A. Accounting 114. In the absence of partnership deed part-

ner share profit and loss in
B. Book-keeping
A. Capital ratio
C. Ledger
B. Gaining ratio
D. none C. Equally
109. Which accounting standard is applicable D. Old ratio
while preparing a cash flow statement? 115. Excess of credit over debit is
A. AS-4 called:(2017)
B. AS-3 A. Credit balance
C. AS-3(Revised) B. Debit balance
C. Closing balance
D. Schedule III
D. Opening balance
110. UNDER WHICH ASPECT OF ACCOUNT-
116. Share can be issued to employees at a
ING BOTH GIVING AND TAKING ASPECT
discount
SHOULD BE RECORDED
A. True
A. BUSINESS ENTITY
B. False
B. GOING CONCERN
C. Don’t know
C. DUAL ASPECT D. None of these
D. REVENUE RECOGNITION
117. Closing entry for interest on loan allowed
111. No partnership agreement, what will be to partners
the percentage of profit sharing ratio be- A. Interest on partner’s loan Dr.To
tween them? Profit and Loss A/c
A. Unequal B. Interest on loan Dr.To Profit and
Loss Appropriation A/c
B. Equal
C. Profit and Loss A/c Dr.To interest
C. It will depend on the experience of a on partner’s loan A/c
partner
D. Profit and Loss Appropriation A/c
D. It will depend on a partner’s capital Dr.To interest on loan A/c

1.1 ACCOUNTANCY 14
118. Accounting is called science because it fol- 123. The rule of stock valuation ‘cost price
lows certain guiding: or realisable value’ whichever is lower is
based on the accounting principle of:
A. Accounting Principles
A. Materiality
B. Accounting standards
B. Money measurement
C. Both a and b
C. Conservatism
D. NOne of the above
D. Accrual
NARAYAN CHANGDER
119. A and B are partners in partnership firm Explanation:Rule always reserves to con-
without any agreement. A has given a sume
loan of |50000 to the firm. At the end
of the year, loss was incurrred in the busi- 124. On the basis of nature, records can be
ness. following interest may be paid to A classified into types
by the firm.
A. Two
A. @5% p.a.
B. Three
B. @6%p.a.
C. Four
C. @6%p.m.
D. Five
D. As there is loss in the business inter-
est cannot be paid. 125. The party which is ordered to pay the
amount is known as
120. QWERTT
A. Drawer
A. A
B. Payee
B. S
C. Drawee
C. D
D. None of these
D. F
126. Which of the following account with nor-
121. Which of the following is an acoounting mal balance is shown at the debit side of
concept? a trial balance?
A. going Concern A. Creditors Account
B. Debtors B. Sales A/c
C. Infinite Period C. Rent Income Account
D. None of the above D. Cash Account
122. weighted average profit method of calcu- 127. Bank reconciliation statement is pre-
lating goodwill is useful when pared?
A. profits are not similar over the years A. at the end of each week
B. profits shows a trend either rising or B. at the end of each month
falling
C. at the end of each accounting year
C. profits are similar in all the years
D. Whenever a bank statement is re-
D. none of above cieved

1.1 ACCOUNTANCY 15
128. X, Y and Z are partners sharing profits in B. bank

the ratio of 2:3:5. Goodwill already ap- C. cash and bank both
pearing in their books at a value of 60,

000. X retires and Y and decided to share D. any of cash or bank
future profits equally. Journal entry will: E. savings bank
132. In case of special crossing and the pay-

ment can be made only to the whose
name has been written between the two
lines
A. person
B. bank
C. bank and person
A. F’s Capital A/c To A’s Capital A/c Dr.
D. none of them
12, 000 12, 000
E. none of them
B. F’s Capital A/c To/F’s Capital A/c Dr.
60, 000 60, 000 133. The persons to whom money is owing by
C. X’s Capital A/c Dr. 2, 400 F’s Capital the firm are termed as
A/c Dr. 3, 600 Z’s Capital A/c To Goodwill A. Debtors
A/c Dr. 6, 000 12, 000
B. Creditors
D. X’s Capital A/c Dr. 12, 000 F’s Capital
C. Business men
A/c Dr. 18, 000 Z’s Capital A/c Dr. 30, 000
D. Assets
129. Anil Purchased 1000 gel pens @50 each
less trade discount of 20%. Purchases ac- 134. Common Liquidity Ratios include
count will be debited by: A. The current ratio
A. Rs:50, 000 B. Net Profit Margin
B. Rs:40, 000 C. Return on capital
C. Rs:45, 000 D. Quick ratio
D. Rs:60, 000
135. Purchasing a building
130. Received Rs 4, 900 from Garima in full A. Operating
settlement of Rs 5, 000. Posting of Rs
B. Investing
100 will be made to the:
C. Financing
A. Debit side of Garima’s A/c
D. none of above
B. Credit side of Garima’s A/c
C. Debit side of Discount A/c 136. Riti and Smriti are friends. They have
just completed their class 10 boards.
D. Credit side of Discount A/c
They’re planning to start a business in
131. The single column cash book records all partnership. Can they do so?
transactions of the business A. Yes
A. cash B. No

1.1 ACCOUNTANCY 16
137. All the agreed terms, conditions and pro- B. 346000

cedure of partnership business is written C. 409000
in
D. 401000
A. Prospectus
B. Statement 142. FINANCIAL STATEMENT COMPRISES OF
C. Articles A. INCOME STATEMENT
D. Partnership Deed B. POSITION STATEMENT
NARAYAN CHANGDER
C. BOTH
138. Book-keeping and accounting
D. NONE
A. means same and are used inter-
changeably. 143. The part of the capital which can be called-
B. does not mean the same and are not up only in case of winding up of the Com-
used interchangeably. pany is called
C. means both (a) and (b) A. Authorised Capital
D. None of the above B. Called up Capital
C. Uncalled Capital
139. When recording the receipt of cash from
a customer who had previously purchased D. Reserve Capital
goods on credit, which accounts are af-
fected in the ledger? 144. Profit on redemption of debentures is
transferred to which account.
A. Debit:Accounts Receivable, Credit:Sales
A. Reserve capital A/c
B. Debit:Cash, Credit:Accounts Receiv- B. Capital Reserve A/c

able C. Debenture Redemption Reserve A/c
C. Debit:Sales, Credit:Cash D. DRI A/c
D. Debit:Cash, Credit:Revenue
145. A liability is
140. Credit purchase of furniture shall be A. obligation of a business as a result of
recorded in- a past transaction
A. Purchase book B. Something a business has to pay be-
B. Journal book cause of a past event
C. Cash-book C. current obligation of a business as a
result of a past transaction
D. None of these.
D. none of above
141. According to Profit and Loss Account, the
net profit for the year is |4, 20, 000. 146. Accounting starts
Salary of a partner is |5, 000 per month A. Where Accountancy ends.
and the commission of another partner is
|10, 000. The interest on drawings of B. Where book keeping ends.
partners is |4, 000. The net profit as per C. Where financial statements ends.
Profit and Loss D. Where analysis of financial statement
A. 354000 ends.

1.1 ACCOUNTANCY 17
147. Accounting is required in 153. Which of the following is not an error of

A. Business activities principle?

B. Non-Business activities A. Purchase of machinery debited to pur-
chase account.
C. Non-Governmental Organisation
B. Sale of old furniture credited to sales
D. All of the above account
148. Attributes of Accounting C. Repairs on the overhauling of existing
machinery debited to machinery account.
A. Identification of financial transactions
D. Cash recd. from mohan debited to so-
B. Recording
han.
C. Both A and. B
154. On the admission of a new partner
A. Old firm is dissolved
149. Rules of debit for real account is
B. Old partnership is dissolved
A. Debit the receiver
C. Both old partnership and firm are dis-
B. Debit all expenses and losses solved
C. Debit what comes in D. Neither partnership nor firm is dis-
D. Debit the giver solved
150. Unrecorded Asset taken over by a Part- 155. is created out of capital profits.
ner at the time of dissolution of the firm is A. reserve capital
to his Capital Account.
B. capital reserve
A. Debited
C. called up capital
B. Credited
D. subscribed capital
151. For depositing cash/cheques in the bank 156. Adam’s son Bruce just completed his MBA
account, which form has to be filled? course. Now he is planning to continue his
A. withdrawal slip father’s business. Is this partnership? if
B. debit note no, Then what type is it?
C. credit note A. Yes, partnership
D. pay-in-slip B. No, small business
E. receipt C. No, company form of business

D. No, family business
152. Obligations (amounts owed) are re-
ported on the balance sheet and are re- 157. Process of recording of transaction is also
ferred to as called?
A. Assets A. Summarising
B. Liabilities B. Reporting
C. Equity C. Posting
D. Debt D. Journalising

1.1 ACCOUNTANCY 18
158. Profit sharing ratio B. Over subscription

A. Sec. 13 C. Pro rata
B. Sec 13 b D. Shareholders fund
159. If the old profit sharing ratio is more than 164. Which of the following is not a character-
the new profit sharing ratio of a partners, istic of accounting
the difference is called
A. Recording non-monetary transactions
A. Capital ratio
NARAYAN CHANGDER
B. classifying
B. Sacrificing ratio
C. Gaining ratio C. Analysis
D. None of these D. Summarising
160. Who is considered to be the internal user 165. Which of the following are prohibited to
of the financial information? issue at a discount?
A. Creditor A. Ordinary Shares
B. Employee B. Preferred Shares
C. Customer C. Loan Notes
D. Government D. none of above
Explanation:They are a part of the organi-
sation 166. Accounting process starts with
161. Company may allot shares to under-
witers to pay their commission. the Entry
will be
A. Underwriting commission A/c dr.To
Underwriters A/c
B. Vendor A/c Dr.to Share Capital A/c
C. No entry is required
D. Either of the Above
A. Identification of financial transactions
162. A journal entry in which two or more ac-
counts are debited or credited, are known B. Posting into ledger
as? C. Recording in Journal
A. Double Entry
D. Summarising of financial transactions
B. Multi Entry
C. Additional Entry 167. A PERSON TO WHOM FIRM HAS SOLD
GOODS ON CREDIT IS KNOWN AS
D. Compound Entry
A. CREDITOR
163. When number of shares applied for is
B. BAD DEBTS
more than the that offered for subscription
is called C. DEBTORS
A. Under Subscription D. LENDER

1.1 ACCOUNTANCY 19
168. Wages and salaries will be recorded in 174. Revaluation A/C is a

A. profit and loss account A. personal A/c

B. balancesheet B. Impersonal A/c
C. Trading account debit side C. Real A/c
D. trading account credit side
D. Nominal A/c
169. which of the following transactions will
not result into flow of cash 175. Withdraw goods for personal use affects
on
A. issue of equity shares
A. Cash and drawings
B. purchase of machinery
B. Cash only
C. redemption of 9% debentures
D. cash deposited into bank C. Cash and capital
D. Capital only
170. Example of Personal accounts?
A. Cash 176. closing stock overvalued
B. Bank A. deducted from current year
C. Salary B. added to current year
D. Outstanding salary C. no effect
171. Amount invested by proprietor in busi- D. none of above
ness
A. investment 177. Interest on capital
B. Capital A. 13 a
C. drawing B. 13 c
D. None of these
178. Cash received from Kajal Rs. 36, 000 af-
172. arrangement of assets and liabilities in ter allowing her discount @10%. Amount
the balancesheet is known as debited to discount account will be:
A. final accounts A. Rs. 3, 600
B. accounting B. Rs. 4, 000
C. marshalling of balancesheet C. Rs. 4, 400
D. posting of entries D. Rs. 40, 000
173. The information provided in the annual
179. the old partners share all the accumulated
financial statements of an enterprise per-
profit & reserves in their
tain to-
A. Individual business enterprise A. New profit sharing ratio
B. Business industries B. old profit sharing ratio

C. The economy as a whole C. capital ratio
D. None of the above D. none of above

1.1 ACCOUNTANCY 20
180. When realisation expenses are paid by 185. Name the item out of the following which
the firm on behalf of partner, expenses are is shown as short-term provision
debited to
A. Provision for tax
A. Realisation account
B. Interest accrued but not due
B. Partner’s capital account
C. Employees’ provident fund
C. Partners’ loan account
D. Interest accrued and due
D. Bank account
NARAYAN CHANGDER
186. Partnership agreement may
181. Amount of Securities Premium Reserve A. Oral
may be used only for
B. Writing
A. Writing off preliminary expenses
C. Implied
B. Buy back of its own shares
D. All the above
C. issuing fully paid bonus shares
D. writing off discount allowed on issue of 187. Is Reserved Capital a part of
shares or debentures A. Unsubscribed capital
E. all of the above B. Uncalled capital
182. Authorised Capital is also known as (a). C. Subscribed capital
(b) (c). (d) D. Authorized Capital
A. Nominal Capital
188. GROSS PROFIT= -
B. Registered Capital.
A. SALES-COST
C. Subscribed Capital
B. NET SALES-COST OF GOODS SOLD
D. Both (a) and (b).
C. PURCHASES-SALES
183. If the trial balance does not balance, D. OPENING STOCK-CLOSING STOCK
what could be the potential error?
A. All debit entries were posted as credit 189. In which year did the Partnership Act
passed?
B. All transactions were recorded accu-
rately A. 1932
C. Only revenue accounts were included B. 1956
D. Entry was omitted in both journal and C. 1947

ledger D. 1952
184. Share Capital means 190. Zero Coupon Bonds are Issued
A. Raised by issue of shares A. At Zero interest rate
B. Claimed by calling the shares B. With Specified Rate of Interest
C. Amiunt paid by the shareholders C. Without Specified Rate of Interest
D. none of above D. None

1.1 ACCOUNTANCY 21
191. Business is said to be in a profit when B. Cash account

A. Expenditure exceeds income C. Discount allowed account

B. Income exceeds expenditure D. None of these
C. Income exceeds liability
197. What is the purpose of preparing trading
D. Assets exceed expenditure
account?
192. When Goodwill is not purchased Good- A. To calculate net sales
will account can:
B. To calculate cost of sales
A. Never be raised in the books
B. Be raised in the books C. To calculate gross profit/(loss)
C. Be partially raised in the books D. To calculate net profit

D. The raised as per the agreement of the
198. The persons who still owe some amount
partners
to the business are termed as
193. Which of these claims is FALSE about a A. Business men
balance sheet? A balance sheet
B. Creditors
A. Explains how the firm’s capital has
been invested C. Debtors
B. Shows the assets and liabilities of the D. Liabilities
firm
C. Indicates the strength of the firm’s 199. Salary paid to partners should be:
profit margin A. Debited to his current A/c
D. Is drawn up at a specific point in time B. Credited to his capital A/c
194. In the absence of Partnership Deed, the C. Credited to profit & loss appropriation
interest is allowed on partner’s capital: A/c
A. 5% p.a. D. None of these
B. 6% p.a.
200. Imprest amount-|500. What will be the
C. 5% p.a.
amount of re-imbursement if following ex-
D. No interest is allowed penses were incurred by the petty cashier
during the month-Telephone = |150, Tiffin
195. Debenture holders are of the Com-
= |50, small Repairs = |30 general ex-
pany
penses = |100
A. Debtors
A. 300
B. Creditors
B. 170
C. Customers
C. 330
D. Owners
D. 270
196. Discount allowed to Pirbhat will be cred-
ited to:(2016) 201. The costs incurred in conducting the busi-
A. Pirbhat’s account ness are

1.1 ACCOUNTANCY 22
D. Credit, Trading Account

206. Which of these are not the method of fi-
nancial statement analysis?
A. Ratio Analysis
B. Comparative Analysis
A. Assets C. Trend Analysis
D. Capitalisation Method
NARAYAN CHANGDER
B. Liabilities
C. Revenue 207. Accounting measures the transactions in
terms of-
D. Expenses
A. Differential measuring unit
202. Accounts that are reported on the bal- B. Quantity measurement Unit
ance sheet, and whose balances are car-
ried over from one period to the next are C. Average measurement unit
called D. Common measurement unit
A. real account 208. What type of agreement is used to form
B. nominal account a partnership business?
C. income statement A. Written agreement
D. not the answer above B. Oral agreement
Explanation:Real (fixed) accounts are ac- C. Written or oral agreement
counts reported in the balance sheet D. None of them
203. Objectives of Accounting 209. Which of the following factors affect
A. Maintaining Accounting Records goodwill? (a) Favourable Location (b) Ef-
B. Determining profit or loss ficiency of Management (c) Market situa-
tion (d) All of these
C. Facilitating Management
A. Favourable Location
D. Protecting Business
B. Efficiency of Management
E. All of the above
C. Market situation
204. Purchase of goods from X for cash should D. All of these
be credited to
210. In petty cash Book, the system followed:
A. Purchase
A. Accrual System
B. Cash
B. Imprest System
C. X
C. Cash System
D. Goods
D. None of these
205. General Reserve is recorded in side
211. Securities premium received on issue of
of
shares is credited to securities premium re-
A. Liability, Balance Sheet serve account
B. Assets, Balance Sheet A. True
C. Debit, Trading Account B. False

1.1 ACCOUNTANCY 23
212. The order that you would prepare your A. (i) is correct
financial statements would be
B. (ii) is correct

A. Work Sheet, Balance Sheet, Income
Statement, Statement of Owner’s Equity C. (i) and (iii) are correct
B. Statement of Owner’s Equity, Income D. (i), (ii) and (iv) are correct
Statement, Balance Sheet
217. Payment of Dividend will be received
C. Statement of Owner’s Equity, Balance
first by
Sheet, Income Statement, Work Sheet
D. Income Statement, Statement of A. Equity shareholders
Owner’s Equity, Balance Sheet B. Cumulative preference shareholders
213. A and B are partners sharing profits in C. Preference shareholders
the ratio 2:3, they admit C as a partner for D. Debentures
1/4 share, the sacrificing ratio of a and b
will be 218. what is the journal entry for creating Re-
A. 2:3 serve?
B. 1:1 A. Profit & Loss a/c-dr to P & L app a/c
C. 3:2 B. P & L app a/c-dr to P & L a/c
D. 2:1
C. Reserve a/c-dr to P & L appropriation
214. The calculation and interpretation of fi- a/c
nancial ratios D. P & L app a/c to Reserve a/c
A. Financial Ratio
219. P, Q & R are partners in 3:2:1. R is guar-
B. Money Ratio
anteed that his share of profit will not be
C. Ratio Analysis less than |70, 000. Any deficiency will be
D. Cash Ratio borne by P & Q in the ratio of 2:1. Firm’s
profit was |2, 40, 000. Share of P will
215. Which type of company can issue share be:
to public
A. |1, 00, 000
A. Public
B. |1, 10, 000
B. Private
C. |1, 20, 000
C. One person company
D. None of these D. |1, 02, 000
216. Current Ratio of ‘Jayanti Ltd.’ is 3:2. 220. A person who owes money to firm
The Finance Manager wants to maintain it against goods sold is called a
at 2:1. Following options are available:(i)
A. Creditor
He can repay Trade payables. (ii) He can
discharge Bills Payable. (iii) He can pur- B. Debtor
chase Stock-in-Trade for cash. (iv) He can
C. Both (a) And
sell the Fixed Asset (Book value ‘ 10, 000)
for ‘ 9, 000. D. None of these

1.1 ACCOUNTANCY 24
221. A machine is purchased on 1st April 2018 C. Intangible assets

for 80, 000, Expenses incurred on its in- D. Investments
stallation is Rs:20, 000. The residual
value at the end of its expected usefull life 225. X, Y and z are partners in a firm shar-
of 4 years is estimated at Rs:10, 000. The ing profits and losses in the ratio of 5:3:2.
amount of depreciation under straight line The partners decided to share future prof-
method, for the year ended on 31ts march its and losses in the ratio of 3:2:1. Each
2019 will be partners gain or sacrifice due to change in
NARAYAN CHANGDER
A. 22, 500 the ratio will be:
B. 20, 000 A. X sacrifice 1/30; Y gain 1/30; Z nil
C. 17, 500 B. X gain 1/30;Y nil; Z sacrifice 1/30
D. 13, 125 C. X nil; Y sacrifice 1/30; Z gain 1/30

D. X nil; Y gain 1/30; Z sacrifice 1/30
222. Sold goods for cash of the list price of
Rs 8, 000 at 10% trade discount and 3% 226. The financial statement that reports the
cash discount. Posting will be made in dis- changes in the capital account for a propri-
count A/c: etorship for a period of time.
A. Rs 216 on debit side A. Statement of Owner’s Equity
B. Rs 216 on Credit side B. Balance Sheet
C. Rs 240 on debit side C. Income Statement
D. Rs 240 on credit side D. Trial Balance
223. Copyrights, Patents, and Trademarks are 227. Accounting is referred to as the “lan-
examples of guage of “
A. current assets A. Profit
B. fixed assets B. Life
C. noncurrent assets C. Accounting
D. intangible assets D. Business
224. Identify the asset 228. capital + drawings =net capital

recorded in liablities
A. gross profit
B. net profit
C. dividend
D. purchases
229. A & B are partners, their firm charges

interest on drawing @10%. Be draws
1000 at the beginning of every month.
what will be Average period for which IOD
A. Current assets will be calculated
B. Fixed assets A. 11/2

1.1 ACCOUNTANCY 25
B. 12 235. A, B and C are partners sharing profits

C. 13/2 in the ratio of4:3:2 decided to share prof-
its equally. Goodwill of the firm is valued

D. 6 at rupees 10800. In adjusting entry for
230. If the owner takes goods from the busi- goodwill:
ness for personal use, the account to be A. A’s capital account Cr. 4, 800;B’s capi-
credited is:(2017) tal account Cr. 3, 600; C’s capital account
A. Owner Account Cr 2, 400
B. Bank Account B. A’s capital account Cr 3, 600; B’s capi-
tal account Cr 3, 600; C’s capital account
C. Purchases Account
Cr 3, 600
D. Cash Account
C. A’s capital account Dr. 1200; C’s capi-
231. Ascertain the accounting equation when, tal account Cr 1200
purchase goods from Mr Y on credit for Rs. D. A’s capital account Cr 1200; C’s capital
30, 000 account Dr. 1200
A. 30, 000 = 30, 000 + 0
236. A statement shows the profitability
B. (-) 30, 000 + 30, 000 = 0 + 0 of the business
C. 30, 000 = 0 + 30, 000
D. 0 = 30, 000 + (-) 30, 000
232. Amount withdrawn by the owner for per-
sonal use
A. Capital
B. Asset A. Cash flow
C. Drawings B. Profitability
D. Liability C. Financial Position
233. A motor car lost in fire should be debited D. Profit or Loss
to:(2019)
237. When shares are forfeited, Share Capital
A. Motor car account
Account is debited with
B. Loss by fire account
A. Nominal values of shares
C. Purchases account
B. Called-up values of shares
D. Drawings account
C. Paid-up values of shares
234. According to which principles, accounting D. Market value of shares
practices should be followed on a horizon-
tal basis from one accounting period to an- 238. ratio is computed at the time by ad-
other to achieve compatibility mission of a partner
A. Going concern principles A. Gaining ratio
B. Consistency principles B. capitalization
C. Money measurement principles C. sacrificing ratio
D. Historical cost principles D. none of above

1.1 ACCOUNTANCY 26
239. If at the time of admission, there is some B. Gain 1/8

unrecorded liability, it will be: C. Sacrifice 3/8
A. Debited to Revaluation Account
D. Sacrifice 1/8
B. Credited to Revaluation A/c
245. Return of goods by a customer is
C. Debited to Goodwill A/c
recorded in
D. Credited to Partners’ Capital A/c
A. Purchase book
NARAYAN CHANGDER
240. abnormal losses are B. Sales book
A. added to profit C. Sales return book
B. deducted from profit D. Purchase return book
C. multiplied to profit
246. On dissolution of a firm out of the pro-
D. no effect ceeds received from the sale of assets who
will be paid last of all
241. Which of the following is known as Prin-
cipal book of Accounting? A. Realisation account
A. Ledger B. Realisation account no account
B. Journal C. Partner capital account
C. Trial balance D. No entry
D. Balance sheet
247. WHICH OF FOLLOWING IS NOT AN EX-
242. Which of the following is not an asset? TERNAL USER OF ACCOUNTING INFOR-
MATION
A. Buildings
A. RESEARCHERS
B. Cash balance
B. GOVERNMENT
C. Debtors
C. TAX AUTHORITIES
D. Loan from K Haris
D. OWNERS
243. Monetary measurement can be described
as 248. The rate of interest allowed on loans ad-
vanced
A. items that can be given a money value
are to be recorded in New Zealand Dollars A. 8%
B. items that can be given a money value B. 5%
are to be recorded in the currency of the C. 6%
country they have been bought from
D. 12%
244. A and B were partners in the firm sharing
profits or losses in the ratio of 3:5. with 249. Drawings of the partners are:
effect from 1st April 2019 they decided A. Debited to profit and loss A/c
to share profits or losses equally. Due to
B. Credited to profit and loss A/c
change in profit sharing ratio, A’s gain or
sacrifice will be: C. Debited to capital A/c
A. Gain 3/8 D. Credited to capital A/c

1.1 ACCOUNTANCY 27
250. Statement of affairs is a 255. Which of the following best describes a

A. Statement of income and expenditure trial balance?

A. shows the financial position of a busi-
B. Statement of assets and liabilities
ness
C. Summary of cash transactions
B. it is a special account
D. Summary of credit transactions
C. shows all the entries in the books
251. Merchandise inventory includes D. It is a list of balances on the books
A. liquid assets 256. The type or branch of accounting that gen-
B. tangible assets erates reports for the use of external par-
ties such as creditors, investors and gov-
C. intangible fixed assets
ernment agencies is known as:
D. debt A. Financial Accounting
252. Posting is the process of transferring in- B. Managerial Accounting
formation from the journal to the ledger C. Tax Accounting
accounts.
D. Forensic Accounting
A. True
257. The financial condition of a business
B. False
refers to its financial strength.
253. It is an unscientific and unsystematic way A. True
of recording transactions B. False
258. Goodwill by super profit=

A. SPxNRR/100
B. SPx100/AP
C. SPx No of year purchase
D. SPx capital employed/100
259. The Receipts and Payments account con-

tains
A. Capital Receipts and Payments only
A. Incomplete Records
B. Revenue Receipts Payments only
B. Trial Balance
C. Petty Receipts and Payments only
C. Balance sheet
D. All receipts and Payments
D. Profit and loss Account
260. If the due date of bill falls on public holi-
254. Assets = Liability + day then the maturity date is on
A. Capital A. One day after maturity date
B. Bank Overdraft B. One day before maturity day
C. Bank Loan C. Public holidays
D. Creditors D. None of these

1.1 ACCOUNTANCY 28
261. Ram and Mohan are childhood friends. 266. Which of the following is an example of
Ram is a consultant whereas Mohan is an Cash Flow from Operating Activities?
architect. They contributed equal amounts A. Payment of Dividend
and purchased a building for Rs. 2 crores.
B. Issue of Shares
After a year, they sold it for Rs. 3 crores
and shared the equally. Are they doing the C. Purchase of Fixed Assets for Cash
business in partnership? D. Receipts from Debtors
A. Yes 267. Patents, Copyrights and Trademarks are
NARAYAN CHANGDER
B. No A. Current Assets
262. Discount on issue of debentures is re- B. Fixed Assets
stricted to C. Intangible Assets
A. 10% D. Investments
B. 20% 268. Assets that can be converted into cash in
C. 25% one accounting period are called?
D. None of these A. Fixed assets
B. Fictitious assets
263. On dissolution patents appearing in bal-
ance sheet are transferred to which ac- C. Current assets
count D. Non current assets
A. Bank account 269. Super Profit is
B. Realisation account A. Normal Profit-Average Profit
C. Capital account B. Average Profit-Normal Profit
D. None account C. Normal Profit +Average Profit
D. None of these
264. Choose the correct option
270. Rupees 5000 received from Mohan
whose account was written off as bad in
the previous year should be credited to
A. a A. Mohan account
B. b B. Bad debts account
C. c C. Bad debts recovered account
D. d D. None of these
265. In the event of death of a partner, the 271. Who can issue shares through private
amount of general reserve is transferred placement?
partners capital accounts in A. Public Company
A. New profit sharing ratio B. Private Company
B. Old profit sharing ratio C. Both Public and Private Company
C. in Capital ratio D. Company issuing ESOPs
D. in equal ratio E. Promoters

1.1 ACCOUNTANCY 29
272. How can a partner be admitted 278. WHICH SYSTEM OF ACCOUNTING IS RE-
A. Act 1932 LIABLE?

B. Act1940 A. SINGLE ENTRY SYSTEM
C. Act 1946 B. DOUBLE ENTRY SYSTEM
D. Act 1967 C. BOTH ARE EQUALLY RELIABLE

D. NONE OF THEM IS RELIABLE
273. A comparison between two components
of financial information. 279. A and B are partner’s sharing profit
A. Financial ratio equally. A draw regularly Rs. 4, 000 at
the end of every month for 6 months. Year
B. Ratio analysis ended on 30thSeptember 2018, calculate
C. Money ratio interest on drawings @ rate 5% p.a.
D. Cash ratio A. Rs. 350
B. Rs. 450
274. A Debenture Holder is entitled to
C. Rs. 150
A. Fixed Dividend
D. Rs. 250
B. Share in Profit
C. Voting rights in the Company 280. Rent received by a builder will be classi-
fied under which activity
D. Interest at the Fixed Rate
A. Financing
275. a) Liquidity Ratio explain the liquidity Po-
B. Operating
sition of the concernb) Current ratio ex-
press the short term liquidity of the Con- C. Investing
cern D. None of these
A. Both the Statement are Correct
281. In order too maintain fair dealings at
B. A is Correct but B is Wrong the time of admission it is necessary to
C. B is Correct but A is Wrong revalue assets &liabilities the firm to their
D. Both the Statement are Wrong A. cost price
B. cost price less depreciation
276. Could there be a partnership agreement?
C. true value
A. a. Oral
D. none of above
B. B. written
C. S. written or oral 282. Which account is classified as an Asset?
D. The. none of these A. Concert Tickets
B. Babysitting payment
277. The cash-book meant for recording petty
expenses is called- C. Allowance
A. Simple cash-book. D. Cash
B. Petty cash-book 283. Sacrificing Ratio =
C. Triple column A. Gaining Ratio-Old Profit Share
D. None of these B. Old Profit Share-New Profit Share

1.1 ACCOUNTANCY 30
C. New Profit Share-Old Profit Share 289. Two basic measures of liquidity are:
D. Old Profit Share-Gaining Ratio A. Inventory turnover and Current ratio
284. Is interest paid on loan in the absence of B. Current ratio and Quick ratio
partnership deed? C. Gross Profit ratio and Operating ratio
A. a. 10 annual D. Current ratio and Average Collection
B. B. 6 percent period
NARAYAN CHANGDER
C. S. 6 percent annually 290. 6 Sales return book is used to record
D. The. 10 percent A. Returns of goods by the customer for
which cash is paid immediately
285. Which account is classified as an Liabil-
ity? B. Returns of goods by the customer for
which cash is not paid immediately
A. Concert Tickets
C. Returns of assets by the customer for
B. Bank Account
which cash is not paid immediately
C. Credit Card
D. Returns of assets by the customer for
D. Bus Pass which cash is paid immediately
Explanation:Non cash item
286. A and B were partners in a firm sharing
profits and losses equally.with effect from 291. Which analysis is considered as dynamic
1st April 2019 they decided to share prof-
A. Horizontal analysis
its in the ratio 4:3. Due to change in profit
sharing ratio B’s gain or sacrifice will be: B. Vertical analysis
A. Gain 1/14 C. Internal analysis
B. Sacrifice 1/14 D. External analysis
C. Gain 4/7
292. A person to whom money is owed by a
D. Sacrifice 3/7 firm for purchase of goods or services is
called
287. Sole Proprietorship is most suitable for
A. Medium scale concerns
B. Large scale concerns
C. Small scale concerns
288. X, Y, Z are partners. Profit Sharing ratio

5:4:3. X RETIRE. Find new ratio
A. 5:3 A. The Debtor
B. 3:4 B. The Creditor
C. 4:3 C. The Drawer
D. 5:4 D. None of these

1.1 ACCOUNTANCY 31
293. Promoters of company may be issued 297. Journal entries goodwill already appears
shares for the services rendered by them. in the books
the entry will be:

A. Old partners capital To goodwill
A. Incorporation cost a/c Dr.To Share B. New partner capital To goodwill
capital a/c
C. Goodwill To old partner
B. Formation Exp. a/c Dr.To Share capital D. Goodwill To new partner
a/c
298. In the Event of death, the combined share
C. Either of the above
of profit of the continuing partner will de-
D. None of the above creases.
294. Net profit of a firm is |49, 500. Man-

ager is entitled to a commission of 10%
on profits before charging his commission.
Manager’s Commission will be:
A. 4500
B. 4950
C. 5500 A. True.
D. 495 B. False.
299. Cash sales to Ahmed Raza will be posted
295. From the following information, how
to debit side of:(2016)
much amount will be shown as Cash Flow
from Financing Activities? Equity Share A. Ahmed Raza’s account
Capital cr. yr:20, 00, 000 pr. yr:18, 00, B. Sales account
000 10% Debentures cr. yr.:2, 00, 000
C. Cash account
2nd pr.:3, 00, 000 Securities Premium Re-
serve cr yr:1, 00, 000 pr.yr:80, 000 Ad- D. None of these
ditional Information:Debentures were re- 300. Trade discount means
deemed on 31st March, 2020
A. Cash discount
A. 80, 000
B. No discount
B. 90, 000 C. Reduction in price
C. 1, 20, 000 D. None of these
D. 1, 60, 000
301. The process of accounting starts with
and ends with
296. on dissolution of a partnership firm,
goodwill if appearing in the balance sheet, A. Identifying the transaction and com-
is transferred to municating information
A. revaluation a/c B. Identifying the transaction and inter-
preting the financial transaction
B. realisation a/c
C. Recording and classifying
C. partners capital a/c
D. summarising and communicating infor-
D. balance sheet mation

1.1 ACCOUNTANCY 32
302. Accounting is also known as the language B. order cheque

of business C. dishonour of a cheque
A. True
D. crossed cheque
B. False
E. none of them
303. Each partner carrying on the business is
308. The Shareholders’ gets dividends, Deben-
the principal as well as agent for all the
ture holders will get
other partners.
NARAYAN CHANGDER
A. True A. Interest
B. False B. Fees
C. Partially True C. Commission
D. none of above D. Bonus
304. Which one of the following is representa- 309. Amount paid or payable against purchase
tive personal account? of goods is
A. Building A/c A. Revenue expenditure
B. Outstanding salary A/c B. Capital expenditure
C. Mahesh A/c C. Both (a) and (b)
D. Balan & Co D. None of these
Explanation:Anything that’s yet unpaid
310. Land & Building Account is Account
305. The information regarding the rate of div-
A. Personal
idend is a material information for the
investors since it provides a basis for B. Real
forecasting future dividends.The qualita- C. Nominal
tive characteristics of accounting informa-
tion highlighted here is: D. Assets
A. Relevance 311. In case of absence of Partnership Deed,
B. Understandability Interest on loan is given to the partners
@
C. Reliability
A. 5%
D. comparability
B. 8%
306. Is a partnership firm examined as an in-
dividual a legal entity? C. 6%
A. No D. 10%
B. Yes 312. Amount which the firm owes to outsiders
C. Partialy yes is known as
D. none of above A. Capital
B. Expenses
307. The payment of a cheque cannot be
made direct to the party on the counter C. Liability
A. bearer cheque D. Asset

1.1 ACCOUNTANCY 33
313. Following amounts were payable on is- C. 6:5:2

sue of shares by a Abtech Ltd. Rs.20 on D. 1:1:1
application, Rs. 40 on allotment. Rs. 20

on first call and Rs. 20 on final call. Raj 318. WHEN AN UNRECORDED ASSET IS SOLD
holding 1, 000 shares paid only applica- ON DISSOLUTION, IT IS CREDITED
tion and allotment money whereas James
A. REALIZATION ACCOUNT
holding 800 shares did not payfinal call.
Amount of calls in arrears will be B. REVALUATION ACCOUNT
A. 42, 000 C. ASSET ACCOUNT
B. 56, 000 D. NONE OF THESE
C. 72, 000 319. In India, the accounting standard board
D. 66, 000 was set up in the year-
A. 1972
314. 10 Main objective of preparing ledger ac-
count is to B. 1977
A. Ascertain the financial position C. 1956
B. Ascertain the profit or loss D. 1932
C. Ascertain the profit or loss and the fi- 320. Following shown in profit and loss appro-
nancial position priation a/c
D. Know the balance of each ledger ac- A. Office expenses
count B. Salary of staff
315. A transaction is an exchange in which par- C. Partners salary
ticipant’s or value. D. Interest on bank loan
A. a. Receives, sacrifices
321. All the direct revenues and direct ex-
B. b. receives, earn penses are transferred to
C. c. earn, sacrifices A. Profit and loss account
D. goods, services B. Trading account
316. Profit earn throught normal activities of C. Balance sheet
business D. Ledger
A. operating profit
322. Debenture holders are
B. net profit
A. Owners of the company
C. gross profit
B. Lenders of the company
D. manufacturing profit.
C. Vendors of the company
317. X and Y are partners. Z is admitted D. Customers of the company
as partner for 1/7thshare. New Profit-
sharing Ratio will be 323. What shall be the amount of Capital if
cash is Rs. 5, 000; Furniture Rs. 12, 000;
A. 2:3:1 Stock Rs. 30, 000 and Creditors Rs. 6,
B. 3:3:1 000.

1.1 ACCOUNTANCY 34
A. Rs. 53, 000 328. According to Profit & Loss Account, the
B. Rs. 47, 000 net profit for the year is |1, 50, 000. The
total interest on partner’s capital is |18,
C. Rs. 41, 000 000 and interest on partner’s drawings is
D. Rs. 40, 000 |2, 000. The net profit as per Profit &
Loss Appropriation Account will be:
324. Stock ‘ 80, 000, X took 50% of the stock A. |1, 66, 000
at cost less 20%. Remaining stock was
sold at a profit of 30% on cost. Realisa- B. |1, 70, 000
NARAYAN CHANGDER
tion Account will be credited by (a) ‘ 32, C. |1, 30, 000
000. (b) ‘ 52, 000. (c) ‘ 84, 000. (d)
D. |1, 34, 000
None of these.
A. 32, 000 329. WHO IS THE MAKER THE BILL OF EX-
CHANGE?
B. 52, 000
A. the creditor
C. 84, 000
B. the beneficiary
D. None of these.
C. the debtor
325. Double entry in Cash Book is completed
D. none of above
when:
A. Salaries are paid by cheque 330. The difference between assets and liabil-
ities and is the RIGHTS of the company
B. Withdrawal of money from bank for
owner is referred to as
personal use
A. debt
C. Deposited cash into bank
B. property
D. None of these
C. modal
326. The Need of revaluation of assets and li- D. burden
abilities on admission
A. Assets and Liabilities should appears 331. In the revaluation account an increase in
at revised values the value of land and building appears on
the
B. Any profit and loss an account of
change in values belong to old partners A. Debit side
C. All unrecorded assets and liabilities B. Credit side

get recorded C. Does not appear at all
D. None of Above D. None of these
327. The relationship of partner with the firm 332. Sole Proprietor is also known by busi-
is that of ness
A. An owner A. Two Men
B. An agent B. One Man
C. Manager C. Three Men
D. Owner and agent both D. Four Men

1.1 ACCOUNTANCY 35
333. A partner cannot transfer his shares to 339. Which of these best explains fixed as-
other consent of existing partners. sets?

A. Without A. Are bought to be used in the business
B. With B. Are expensive items bought for the
business
C. Having
C. Are items which will not wear out
D. Nothing
quickly
334. If the debit and credit aspects of a trans- D. Are of long life and are not purchased
action are recorded in the cash Book it is specifically for resale
a:
340. where do we show closing stock in trad-
A. Contra entry
ing account
B. Simple entry A. trading account debit side
C. Double entry B. trading account credit side
D. Single entry
341. What is a Sole Proprietorship?
335. While preparing common-size balance A. Business owned by president
sheet each item of balance sheet is ex-
B. Business owned by several companies
pressed as percentage of
C. Business owned by one person
A. Non-current assets
D. Business owned by a company
B. Current assets
C. Non-current liabilities 342. REALIZATION ACCOUNT IS A
D. Total assets
336. Personal accounts are related to

A. Assets and liabilitie
B. Debtors and creditors
C. Expenses, losses
D. Income and gain A. NOMINAL ACCOUNT
337. Simple petty cash book is like a B. PERSONAL ACCOUNT
A. Cash book C. REAL ACCOUNT
B. Statement D. NONE OF THESE
C. Journal 343. Which one of the following is NOT an es-
D. None of these sential feature of a partnership?
A. There must be an agreement
338. A promissory note is made by
B. There must be a business
A. Seller
C. The business must be carried on for
B. Purchaser profits
C. Endorsee D. The business must be carried on by all
D. None of these the partners

1.1 ACCOUNTANCY 36
344. Who developed double entry book keep- 350. Bill of exchange has parties
ing system? A. Two
A. Luca pacioli B. Three
B. Evelyn C. Four
C. Thomas D. Seven
D. Carter
351. What is the meaning of Gross profit?
345. Securities premium reserve can be used
NARAYAN CHANGDER
A. profit from providing services to cus-
for issuing partly paid bonus shares tomers
A. True B. profit from providing money to cus-
B. False tomers
C. profit from providing goods to cus-
346. After transferring liabilities like creditors tomers
and bills payable in realisation account, in
absence of any information regarding the D. profit from providing loans to cus-
payment such liabilities are treated as- tomers
A. Never paid 352. If the new partner brings any additional
B. Fully paid amount of cash other than his capital con-
tributions then it is termed as
C. Partly paid
A. Capital
B. Reserve
347. Current Liability includes C. Premium for Goodwill
A. Bill Payable D. Profit
B. Creditors
353. Money received against share warrants
C. Outstanding Expenses is shown as
D. All of these A. Shareholders’ funds
348. To which account salary and commission B. Other long-term liabilities
to partners and interest on capital be deb- C. Long-term provisions
ited? D. Other current liabilities
A. Current Account
354. If the capital of a business is |5, 00, 000
B. Capital Account and outside liabilities are |200, 000. Cal-
C. Profit and Loss Account culate total assets of the business.
D. Profit and Loss Appropriation Account A. 3, 00, 000
B. 7, 00, 000
349. Transposition errors are evenly divisible
by the number: C. 10, 00, 000
A. 2 D. 2, 50, 000
B. 3 355. works manager salary means what?
C. 4 A. factory manager salary
D. 9 B. office manager salary

1.1 ACCOUNTANCY 37
356. in India, companies must maintain ac- 360. Debit balance of $100. Making an entry
counting records under double entry sys- of a $50 credit. What’s the new balance?
tem as per Section

A. Credit of $50
B. Debit of $50
C. Credit of $100
D. none of above
361. Opening statement of affairs is usually

prepared to find out the
A. Capital in the beginning of the year
B. Capital at the end of the year
A. 127(1)
C. Profit made during the year
B. 128(1)
D. Loss occurred during the year
C. 127(2)
D. 128(2) 362. A, B & C are partners in the ratio of
5:3:2. Before B’s salary of |17, 000,
357. Amit, a partner in a partnership firm firm’s profit is |97, 000. How much in
withdrew Rs. 7, 000 in the beginning total B will receive from the firm?
of each quarter. For how many months
would interest on drawings be charged? A. |17, 000
A. 7.5 months B. |40, 000
B. 6.5 months C. |24, 000
C. 5.5 months D. |41, 000
D. 3.5 months
363. Assets held for continued use in the busi-
358. Gross Profit ratio is also termed as ness and not meant for resale are termed
A. Gross Profit Margin as
B. Gross Margin to net sales A. Fixed asset
C. Net Profit ratio B. Current Asset
D. Ratio Analysis C. Tangible asset
359. If the total debits and total credits of the D. Intangible Asset
trial balance do not agree, the first step in
locating the error is to: 364. When an asset is acquired on hire pur-
chase system, the asset account is debited
A. re-add the debit and credit columns with of the assets in the books of the
B. find the amount you are out of balance hire purchaser.
C. make certain you copied the amount A. Hire purchase price
correctly from the ledger account to the
B. Cash price
trial balance
C. Installment price
D. divide the amount you are out of bal-
ance by 2 D. None of these

1.1 ACCOUNTANCY 38
365. Which of the following is a limitation of C. No entry shall be passed

accounting D. 7, 000 shall be debited to realization
A. Assistance to management a/c 7, 000 shall be credited to cash a/c
B. Replaces memory 370. 4 Purchases book is used to record
C. Unrealistic information A. all purchases of goods
D. Evidence in court B. all credit purchases of assets
C. all credit purchases of good
NARAYAN CHANGDER
366. An example of a transposition error is
writing the number 45 when you should D. all purchases of assets
have written 54. Explanation:Credit transactions
A. True 371. A firms earn |1, 20, 000 as its annual
B. False profits.The normal rate of profit being 10
%.Assets of the firm are |14, 40, 000
367. Internal capital is obtained from and liabilities are |4, 40, 000.Tick the cor-
A. company profits rect option for goodwill by capitalisation
method.
B. investment
A. |4, 00, 000
C. loan
B. |2, 80, 000
D. from outside the company
C. |2, 00, 000
368. While passing an opening entry, all the D. |3, 60, 000
assets are while all the liabilities are
372. Share Forfeiture Account appears in a
Company’s Balance Sheet under the Sub-
A. Credited, Debited head
B. Credited, Credited A. SHARE CAPITAL
C. Debited, credited B. RESERVE AND SURPLUS
D. None of the options C. CONTINGENT LIABILITY
D. COMMITMENTS
369. A, a creditor for Rs.25, 000 accepted a
plant at Rs.18, 000 in settlement of his 373. Patents and Copyrights fall under the cat-
claim, which of the following statement is egory of:
correct-
A. Current Assets
B. Liquid Assets
C. Intangible Assets
D. None of Above
374. A company issued 5, 000 equity shares
of |100 each at par payable as to:|40
on the application; |50 on the allotment
and |10 on call. Applications were re-
A. 25, 000 shall be debited to creditors ceived for 8, 000 shares. The allotment
a/c was made on pro-rata. How much amount
B. 25, 000 shall be credited to PM a/c will be received in cash onallotment?

1.1 ACCOUNTANCY 39
A. |2, 50, 000 A. Income Statement Debit Column

B. |1, 20, 000 B. Income Statement Credit Column

C. |1, 30, 000 C. Balance Sheet Debit Column
D. |50, 000 D. Balance Sheet Credit Column
375. WHICH ACCOUNTING CONCEPT STATES 380. WHICH ACCOUNTING CONCEPT STATES
THAT EVERY TRANSACTION SHOULD BE THAT ASSETS SHOULD BE RECORDED IN
RECORDED ON THE BASIS OF EVIDENCE. BOOKS OF ACCOUNTS AT THEIR COST OF
A. FULL DISCLOSURE ACQUISITION?
B. VERIFIABLE OBJECTIVE A. FULL DISCLOSURE
C. ACCOUNTING PERIOD B. MATCHING CONCEPT
D. REVENUE RECOGNITION C. COST CONCEPT

D. CONSERVATISM
376. Capital employed in the business is |2,
00, 000, Normal rate of return(NRR) on 381. According to which concept Business is
capital employed is 15 %.During the year distinct from its owner.
firm earned a profit of |48, 000.Find the A. Recognition
correct option if goodwill is 3 years pur-
chase of super profit. B. Conservatism
A. |54, 000 C. Consistency
B. |60, 000 D. Business entity
C. |50, 000 382. DEBIT EQUALS TO CREDIT-WHICH CON-

D. |48, 000 CEPTS?
A. DUAL ASPECTS
377. Revenue from operation is not taken
as100 in preparing common-size state- B. GOING CONCERN
ment of profit and loss. C. MATCH CONCEPTS
A. True D. MONEY MEASUREMENT CONCEPT
B. False 383. Debit all expenses and losses is associ-
378. which of the following are shown on the ated with
debit side of current account ( u can tick A. Personal account
more than one option) B. Real account
A. Drawing C. Nominal account
B. Interest on capital D. Expenses account
C. Interest on drawing
384. What is Accountancy?
D. salary
A. Art
379. Information needed to prepare an income B. Science
statement’s revenue section is obtained
from a work sheet’s Account Title column C. Art and science
and D. None of these

1.1 ACCOUNTANCY 40
385. A and B are partners. B withdraws a B. Cash A/c

fixed amount at the END of every MONTH. C. Sales A/c
IOD is charged at 15%p.a. At the end
of the year, interest on B’s Drawings D. None
amounts to rs 1650. Drawings of B were: 391. Not for profit organistions are
A. 24000 p.m. A. service providing
B. 24000 B. profit seeking organisation
NARAYAN CHANGDER
C. 12000 C. both
D. 10000 D. none
386. Sale of goods to ram for cash is debited 392. AN ACCOUNTING PERIOD STARTS FROM
to A. 1ST APRIL
A. Ram account B. 1ST MARCH
B. Cash account C. 1ST JULY
C. Sales account D. 1ST JANUARY
D. Stock account
393. is created out of uncalled capital.
387. Sold goods on credit effects on A. reserve capital
A. Goods only B. capital reserve
B. Debtors only C. called up capital
C. Goods and Debtors D. subscribed capital
D. Cash and Debtors 394. Payment of rupees 6000 as wages to
workers for installation of machine should
388. Credit balance of $100. Credit entry of
be debited to
$100. what’s the balance
A. Wedges account
A. 0
B. Repairs account
B. credit of 100
C. Machinery account
C. credit of 200
D. none of above
D. none of above
395. Cash purchase of goods is recorded in-
389. AMOUNT WITHDRAWN BY OWNER
FOR PERSONAL USE FROM BUSINESS IS A. Purchase book
KNOWN AS B. Sales book
A. CAPITAL C. Cash book
B. DRAWINGS D. None of these
C. ASSETS 396. Book-keeping is-
D. LIABILITIES A. An art
390. Sale of goods to Manju for cash should be B. A science
debited to C. An art and science both
A. Manju’s A/c D. None of these.

1.1 ACCOUNTANCY 41
397. return outward is deducted from? B. capital ratio

A. sales C. sacrificing ratio

B. purchase D. none of above
398. Out of the following assets which one is 404. In the absence of an agreement partners
not an intangible asset?a) are entitled to
A. Patents A. Salary
B. Investment B. Commission
C. goodwill C. Int. On loan

D. Int. Capital
D. trade mark
405. If there is loss it appears in
399. Which of the following is an example of
Income A. Debit side of current account
A. Sales B. Credit side of current account
B. Mortgage 406. A person worships in the temple for

peace and prosperity is activity
C. Equipment
A. An economic
D. none of above
B. Non-economic
400. A sole proprietor has a limit in which of C. Social
the following ability
D. None of all
A. Managerial
407. Long term assets without any physical
B. Owner
existence but, possessing a value are c
C. Worker
A. fixed assets
D. None of these
B. tangible assets
401. A, B and C are partners sharing profits C. intangible assets
in the ratio of 1/4:3/10:9/20. The New D. investment
ratio on the retirement of C will be
408. The amount drawn by businessmen for
A. 4:10
his personal use is-
B. 4:3
A. Capital
C. 6:5
B. Drawing
D. 5:6 C. loss
402. Separate legal entity is not a feature of D. profit
a company
409. Income and Expenditure Account shows
A. True income and expenditure of
B. False A. Revenue nature only
403. the reconstitution of the partnership re- B. Capital nature only.
quires a revision of the existing partners C. Both (a) and (b).
A. profit sharing ratio D. None of the above.

1.1 ACCOUNTANCY 42
410. Is trail balance is an accounts? 416. If Operating Cycle cannot be identified, it

A. Yes is assumed to be a period of
B. No A. 9 Months
C. Don’t know B. 10 Months
D. None of these C. 12 Months
411. UNDER WHICH CONCEPT OF ACCOUNT- D. 15 Months

ING THE LIFE OF A BUSINESS IS ASSUMED
NARAYAN CHANGDER
417. The sum of Liabilities and Capital is-
TO BE INDEFINITE
A. Expense
A. BUSINESS ENTITY
B. Income
B. COST CONCEPT
C. Drawings
C. GOING CONCERN
D. PRUDENCE D. Assets.
412. which of the following is not a type of 418. ACCOUNTING INFORMATION MUST BE
debenture A. RELIABLE
A. secured debenture B. RELEVANT
B. convertible debenture C. COMPARABLE
C. zero coupon debenture D. ALL OF THE ABOVE
D. participative debenture
419. Which of following is a current assets?
413. Small payments are recorded in a book
A. Machinery
called
B. Cash
A. Cash Book
C. Building
B. Small payments book
C. Purchase book D. Furniture
D. Petty cash book 420. When a company issues Debentures as

collateral security, it will debit
414. Anil purchased 1000 pens at the rate of
50 each less trade discount of 20% A. Bank Account
purchase account will be debited by B. Bank Loan Account
A. 50000 C. Debentures Suspense Account
B. 40000 D. Debentures Account
C. 45000
421. According to the ruling in Garner vs. Mur-
D. 60000 ray case the solvent partners should share
415. Mining rights the loss of insolvent partners in ratio
A. Tangible fixed assets A. Profit sharing ratio
B. Intangible fixed assets B. Sacrificing ratio
C. Intangible assets under development C. Gaining ratio
D. Capital work-in-progress D. Capital ratio

1.1 ACCOUNTANCY 43
422. Which statement best describes the rela- 427. An amount written in parentheses on a
tionship between x and y in the table? financial statement indicates an estimate.

A. True
B. False
428. A, B and C shared profit and losses in

the ratio of 3:2:1 respectively. With ef-
fect from 1st April, 2016, they agreed to
share profits equally. The goodwill of the
firm was valued at Rs.18, 000. Pass nec-
essary journal entry.
A. Proportional A. A’s Capital A/c Dr. 3, 000 To C’s Capi-
tal A/c 3, 000
B. Not Proportional
B. C’s Capital A/c Dr. 3, 000 To A ‘s Capi-
423. Retirement or death of a partner would tal A/c 3, 000
create a situation for continuing partners C. B’s Capital A/c Dr. 3, 000C’s Capital
which is known as A/c Dr. 3, 000 To A’s Capital A/c 3, 000
A. dissolution of partnership D. None of the above
B. dissolution of partnership firm
429. Issued share capital can be more than au-
C. winding up of business thorised capital
D. none of the above A. True
424. Purchasing goods from foreign countries B. False

is known as C. Don’t know
A. Export D. None of these
B. Import 430. Which of the following accounts are pre-
C. Enterprise pared under ‘Final Accounts’ or ‘Financial
Statements?’
D. None of above
A. Balance Sheet
425. Interest on loans advanced B. Trading Account
A. Sec. 13 d C. Profit and Loss Account
B. Sec 13 c D. Journal
426. Which of the following is a limitation of 431. Which of the following is an example of
accounting? an expense?
A. Assistance to management A. Machinery
B. Evidence in court B. Bank
C. Replaces Memory C. Petrol
D. Unrealistic Information D. none of above

1.1 ACCOUNTANCY 44
432. Double Entry System of Book-Keeping 437. Out of the following which is not a part
means of the change in profit sharing ratio
A. Entry in two set of book A. Determination of sacrificing and gain-
ing ratio
B. Entry for two aspects of the transac-
tions B. Accounting of goodwill
C. Entry at two dates C. Accounting of reserves, accumulated
profits and losses
D. All of above
NARAYAN CHANGDER
D. Dissolution of partnership firm
433. If Vendors are issued debentures ofRs. 2,
40, 000 in consideration ofnet assets of 438. Assertion( A):The main objective of ac-
Rs. 3, 00, 000 then the balance of Rs. 60, counting is to maintain the records of busi-
000 will be transferred to ness transactions.Reason ( R):Accounting
records all the transactions whether re-
A. Statement of Profit & Loss lated to money or not.
B. Capital Reserve Account A. Both ( A) and ( R) are true and R is the
C. Goodwill Account correct explanation of A
D. General Reserve Account B. Both ( A) and ( R) are true but R is not
the correct explanation of A
434. Potential Investors need Accounting in-
C. A is true but R is false
formation to
D. A is false but R is true
A. judge the safety of investment
B. judge the risk and return on invest- 439. When the shares are issued for consider-
ment ation other than cash which account will be
debited
C. Assessment of Tax
A. Securities Premium
B. Capital Reserve A/c
435. If any loan is given by the partner then, C. Vendor A/c
balance of such loan Account should be
D. Share Capital A/c
transferred to
A. B/S Asset Side 440. Adjustments given are recorded once in
a trading and profit and loss account and
B. B/S Liability Side again in balance sheet. it is so because of
C. Partner’s Capital A/c A. Matching Principle.
D. Partner’s Current A/c B. Dual Aspect Principle.
436. If a fixed amount is withdrawn by a part- C. Accrual concept.
ner on the last day of every month, inter- D. Materiality Concept.
est on drawings is charged for
441. Subscribe share capital can be less than or
A. 12 months
equal to the issued share capital but cannot
B. 6.5 months be more
C. 5.5 months A. True
D. 6 months B. False

1.1 ACCOUNTANCY 45
442. In trial Balance, which account with nor- 447. On form resolution which amount should
mal balance is recorded in the credit side? be paid at the last

A. Bank Account A. Realisation account
B. Equipment Account B. Capital account
C. Cash Account C. Bank account
D. Accrued Expenses Account D. No entries
443. Cash discount is 448. depreciation on plant and machinery will

A. Which is allowed at the time of making be recorded in
the payment A. trading account debit side
B. allowed at the time of sale of goods B. balancesheet asset side
C. received at the time of purchases of C. profit and loss account debit side
goods
D. profit and loss account credit side
D. received both at the time of making
payment and purchase of goods. 449. Resources owned by a company (such as
cash, accounts receivable, vehicles) are re-
444. Single entry system is based on
ported on the balance sheet and are re-
A. Cash book and Personal account ferred to as
B. Cash book and Real account A. Liabilities
C. cash book and Nominal account B. Assets
D. All the 3 accounts C. Income
445. When a company issues shares at a pre- D. Owner Equity

mium, amount of premium may be received
by the company: 450. The economic obligations of a business en-
tity are called
A. Along with application money
B. Along with application money
C. Along with calls
D. Along with any of the above
446. A and B are partners in a firm with cap-

itals of |10, 000 and |20, 000 each. A
wants a salary of |500 p.a. the firm
earns a net profit of |50, 000 in that year.
What will be the share of profit?
A. 24, 750 each A. Assets
B. 25, 000 each B. Liabilities
C. 20, 000 each C. Revenue
D. 15, 000 each D. Expenses

1.1 ACCOUNTANCY 46
451. The relation of partner with the firm is 455. Mohan, from whom an amount of Rs. 12,
that of 000 was to be received became insolvent
A. An Owner and 60 paise per rupee was received from
his estate, What will be the amount deb-
B. An Agent ited to Cash A/c?
C. An Owner and an Agent A. 6000
D. Manager B. 12000
NARAYAN CHANGDER
452. Any change in the relationship of existing C. 7200
partners which result in an end of the ex- D. 8000
isting agreement and enforces making of a
new agreement is called: 456. What are the responsibilities of the part-
A. Revaluation of partnership ners?
B. Reconstitution of partnership A. a. Limited
C. Realisation of partnership B. B. Unlimited
D. None of the above C. S. limited to capital
453. There were investment worth Rs. 1, 20, D. The. none of these
000, 75% of the investment were taken
457. In the event of death of a partner of em-
over by a Partner at 75% of their book
ployees provided fund appears in the bal-
value. The value at which the investment
ance will be shown in
are taken over is:-
A. Rs. 90, 000 A. Capital A/c (Cr.)
B. Rs. 67, 500 B. Account (Dr.)
C. Rs. 80, 000 C. Liability side [Balance Sheet]
D. Rs. 65, 000 D. Asset side[Balance Sheet]
454. A, B and C are partners sharing profits in 458. Debenture interest is paid
the ratio of 1/2:1/4:1/4. New ratio on A. At a predetermined rate
the retirement of B will be:
B. At variable rate
A. 2:1
C. At a rate based on net profit of the
B. 2:4 company
C. 1:2 D. At a rate as determined by the com-
D. 1/4:1/2 pany from time to time

1.1 ACCOUNTANCY 47
459. While balancing three column cash book, 465. Under fixed capital methods, profit will
the discount column are: be credited to:

A. Totaled but not adjusted A. Capital Account
B. Totaled and also adjusted
B. Drawings
C. Totaled but not balanced
C. Current Account
D. Balanced but not totaled
D. Profit & Loss
460. What is another term for sales returns of
goods?
466. Notes payable, accounts payable and un-
A. Purchase Return earned income are types of debt
B. Return Outwards A. fluent
C. Return Inwards
B. long-term
D. Carriage Returns
C. modal
461. Depreciation expense
D. mortgage debt
A. Operating
B. Investing 467. The shares which are issued above the
C. Financing face value is called
D. Supplemental A. Issue at a loss
462. Calls in Arrears appear in a Company’s B. Issue at a profit.
Balance Sheet under
C. Issue at a premium
A. Reserve & Surplus
B. Shareholder’s Funds D. Issue at a discount
C. Contingent Liabilities
468. 16 In double entry system of book keep-
D. Short-term Borrowings ing, every business transaction affects
463. THE PARTY WHO IS ENTITLED TO RE- A. Minimum of two accounts
CEIVE THE CASH OF A BILL RECEIVABLE IS
CALLED? B. Same account on two different dates
A. drawer C. Two sides of the same account
B. drawee D. Minimum three accounts
C. bank Explanation:Debit and a credit
D. none of above
469. 2 Cash book is a
464. Journal records the transactions of the
A. Principle book
form in a
A. Periodical manner B. Subsidiary book
B. Chronological order C. Both principle and subsidiary book
C. Summarised manner D. Journal proper
D. Systematic order Explanation:Main book

1.1 ACCOUNTANCY 48
470. A, B, C are partners sharing profit and 474. Paid cash for supplies.
losses in the ratio of 4:3:1:B retires and
A. Cash (DR) Supplies (CR)
gives his share of profit to A Rs. 3, 600
and C Rs. 4, 500. What is the Gaining B. Supplies (DR) Cash (CR)
sharing ratio of A and C? C. Supplies (DR) Accounts Payable(CR)
A. 4:5 D. They are both debits
B. 2:1
475. Which branch of accounting deals with
C. 68:48
NARAYAN CHANGDER
the calculate the profit or loss of a busi-
D. (d) 4:1 ness during a period and to provide an ac-
471. Interest on withdrawal is- curate picture of the financial position of
the business as on a particular date to in-
A. a. loss of firm vestors or banks?
B. B. partners’ income
A. Auditing
C. S. firm’s income
B. Cost accounting
D. The. none of these
C. Financial Accounting
472. Ratan Ltd. forfeited 5, 000 shares of ‘
D. Tax accounting
10 each on which application money of ‘ 3
was received. Out of these 2, 500 shares 476. Accounting furnishes data on
were reissued as fully paid-up and ‘ 5, 000
has been transferred to Capital Reserve. A. Income and cost for the managers
Calculate the rate at which these shares B. Financial conditions of the institutions
were reissued
C. Company’s tax liability for a particular
A. ‘ 10 per share year
B. ‘ 9 per share D. All of the above
C. ‘ 11 per Share
477. IN A COMPANY’S BALANCE SHEET
D. ‘ 8 per share
APPEARS UNDER THE HEAD ‘NON-
473. The diagram shows CURRENT ASSETS’.
A. GOODWILL
B. PATENTS
C. VEHICLES
D. ALL THE ABOVE
478. Which is the last step of accounting as a

process of information?
A. Recording the transaction
A. Positive correlation B. Communication of information
B. Negative correlation C. Preparation of financial statements
C. Perfect correlation D. Analysis and interpretation of informa-
D. Not correlated tion

1.1 ACCOUNTANCY 49
479. A(n) cheque can be transferred by en- C. Nominal account

dorsement and delivery D. Capital account

A. bearer cheque
486. X sold goods of Rs. 100 at a trade dis-
B. order cheque count of 20% and received 50% cash, giv-
C. dishonour of a cheque ing 10% cash discount, how much cash
will he earn?
D. crossed cheque
A. 36
E. none of them
B. 72
480. Sole proprietorship business owner has
C. 80
A. Restricted Liability
D. 40
B. No Liability
487. The process of establishing the relation-
C. Unlimited Liability ship between various items or group of
D. Limited Liability items taken from Income Statement or Bal-
ance Sheet or both is known as
481. Authorised capital is shown in the notes
to accounts on share capital A. Analyzing
A. True B. Interpreting
C. Recording
B. False
D. Classifying
482. Salary due to Ram will be credited to
488. What is the purpose of preparing profit
A. Ram Account
and loss statement?
B. Outstanding Salary A/c
A. To calculate gross profit
483. Which of the following is a liability? B. To compute closing capital
A. Machinery C. To calculate net profit/ (loss)
B. Creditors for goods D. To calculate cost of sales
C. Motor vehicles 489. Complete the following statement:When
D. Cash at bank there is neither Partnership Deed nor ex-
press agreement or Partnership Deed ex-
484. If the date of drawings is not given aver- ists but it is silent on allowing remunera-
age period is taken for tion to partners, the provisions of the
A. 8 months would be applicable.
B. 7 Months A. Indian Partnership Act, 1932.
C. 6 months B. Indian Companies Act, 1956.
D. 9 month C. Indian Companies Act, 2013.
D. None of above
485. The amount invested into the business by
the owner is called; (2019) 490. Accounting records only transactions
A. Cash account A. Business
B. Real account B. Financial

1.1 ACCOUNTANCY 50
C. Both a and b C. To maintain the records of the busi-

D. None of the above ness
D. To provide information on the perfor-
491. When the amount of goodwill pay pri- mance of an enterprise
vately
496. Which of the following items cannot be
A. No entry recorded in the profit and loss appropria-
B. 2 entry tion account?
NARAYAN CHANGDER
C. 3 entry A. Interest on Capital
D. 4 entry B. Interest on drawings
C. Rent paid to partner
492. Cash, goods or assets invested by the D. Partner’s salary
proprietor in the business for earning
profit is called- 497. Industries involve in production of goods
from plants and animals are industries
A. Profit
A. Manufacturing
B. Capital
B. Extraction
C. Fixed assets
C. Genetic
D. None of these
D. Construction
493. When Partners’ capital accounts are 498. How many types of accounts?
fixed, which one of the following items
A. 1
will be written in the partner’s capital ac-
count? B. 2
A. Partner’s Drawings C. 3
B. Additional capital introduced by the D. 4

partner in the firm 499. WHICH ACCOUNTING CONCEPT RE-
C. Loan taken by the partner from the QUIRES THAT STOCK BE RECORDED IN
firm THE BOOKS OF ACCOUNTS AT ITS MAR-
KET VALUE OR COST PRICE WHICH EVER
D. Loan advanced by the partner to the IS LOWER?
firm
A. HISTORICAL COST
494. what is the start date for financial year? B. REVENUE RECOGNITION
A. 1st January C. PRUDENCE/ CONSERVATISM
B. 1st April D. CONSISTENCY
495. Which of the following statement is not 500. Classify the type of account for the be-
an objective of accounting? lowI. Bank-ii. Outstanding salary
A. Personal and nominal
A. To provide information about firms lia-
bilities, assets and capital B. Personal personal
B. To provide information on the personal C. personal and real
assets and liabilities of the owner of the D. none of the above
firm. Explanation:2 to do

1.1 ACCOUNTANCY 51
501. BY WHOM MUST THE BILL OF EX- 507. What is depreciation?

CHANGE BE ACCEPTED IN ORDER TO BE A. An estimate of the fall in value of a
VALIDATED?

fixed asset over time
A. the drawee B. A cash flow caused by buying foxed as-
B. the payee sets
C. the drawer C. An increase in the value of a currency
D. none of above D. A cost arising when customers fail to
pay their bills
502. In case of partnership the act of any part-
ner is: 508. Investment in Shares & debentures of
company which are quoted on a recognized
A. Binding on all partners
stock exchange are called
B. Binding on that partner only
A. Listing
C. Binding on all partners except that par-
B. Quoted investment
ticular partner
C. trading on shares
D. stock exchange
503. 8 Trial balance is prepared:
509. P and Q are two partners in a firm hav-
A. At the end of the year ing capitals of Rs 15000 each.R is admit-
B. On a particular date ted for 1/3 rd share for which he has to
C. For a year bring Rs 20000 for his share of capital.
The amount of goodwill will be
A. 5000
504. Withdrawal of cash from business by the B. 15000
proprietor is credited to
C. 10, 000
A. Drawing A/c
D. none of above
B. Capital A/c
510. ‘Claims against the Company not ac-
C. Cash A/c
knowledged as debts’ is shown under the
D. Bank A/c head
505. When the bills of exchange of drawn and A. CURRENT LIABILITIES
accepted for trade purpose it is called B. NON-CURRENT LIABILITIES
A. Accommodation bill C. COMMITMENTS
B. Trade bill D. CONTINGENT LIABILITIES
506. On dissolution of firm but entry pass for 511. 15 Real account deals with
payment of an unrecorded liability
A. Individual persons
A. Cash a/c To realisation B. Expenses and losses
B. Realisation a/c To cash/bank C. Assets
C. No entry D. Incomes and gains
D. Realisation To partners cap a/c Explanation:Things

1.1 ACCOUNTANCY 52
512. WHICH SYSTEM OF ACCOUNTING

SAYS THAT TRANSACTION SHOULD BE
RECORDED IN THE BOOKS OF ACCOUNTS
WHEN IT IS ENTERED INTO WHETHER
CASH RECEIVED OR NOT.
A. CASH BASIS
B. ACCRUAL BASIS
A. Rs. 10, 000
NARAYAN CHANGDER
C. BOTH CASH AND ACCRUAL BASIS
B. Rs. 8, 000
D. NEITHER CASH NOR ACCRUAL
C. Rs. 12, 000
513. Import duty paid will be included in D. Rs. 9, 000
A. trading account credit side
517. Which of the following accounts would
B. trading account debit side typically appear on the debit side of a trial
C. profit and loss account debit side balance?
D. profit and loss account credit side A. Prepaid Rent
B. Service Revenue
514. The process of recording, classifying and
summarizing all business transactions in C. Accounts Payable
order to know the financial result is called- D. Loan
A. Book-keeping 518. Borrowing cash from a bank for addi-
B. Accounting tional working capital
C. Journalizing A. Operating
D. None of these. B. Investing
C. Financing
515. A & B are partners in a partnership firm
without any agreement. A has given a D. none of above
loan of 50, 000 to the firm. At the end
519. TRADE MARK Is(1)
of year loss was incurred in the business.
Following interest may be paid to A by the A. Tangible assets
firm: B. Fixed assets
A. 5%p.a C. Current assets
B. 6%p.a D. Liability
C. 6% p.m 520. Remuneration to partner
D. As there is a loss in the business, in- A. Section 13 a
terest can’t be paid
B. Section 14 a
516. A and B were partners. They shared prof-
its as A-1/2; B-1/3 and carried to re- 521. 12 The process of finding the net amount
serve 1/6. B died. The balance of reserve from the totals of debit and credit columns
on the date of death was Rs. 30, 000. B’s in a ledger is known as
share of reserve will be: A. Casting

1.1 ACCOUNTANCY 53
B. Posting debited to the account. Bank statement

C. Journalising balance is

D. Balancing A. Rs:1420(Dr.)
Explanation:Equaling B. Rs:620(Dr.)
C. Rs:4300(Cr.)
522. Students at Cooper Elementary school
took a survey about what kinds of pets D. Rs:1700(Dr.)
they had at home. Then, students plot-
526. In single entry system:2015
ted that information on a frequency table.
How many kids have dogs and cats for A. Personal accounts are maintained
pets? B. Real accounts are maintained
C. Nominal accounts are maintained
D. None of these
527. An account is having debit balance is es-

tablished when
A. The last entry of the accounting period
was posted on the debit side
B. The amount of debit exceeds the
amount on credit
A. 19
C. There are more entries on the debit
B. 12 side than on the credit side
C. 7 D. None of the Above
D. 20
528. balancesheet is an account
523. Who prepares a debit note- A. true
A. Seller B. false
B. Purchaser C. not acceptable
C. Cashier D. its a statement
D. None of these 529. Ascertain the accounting equation when,
withdraw cash Rs. 2, 000 for personal
524. Patents and copyrights include groups
use.
A. fixed assets
A. 0 = 2, 000 + 0
B. liquid assets
B. 2, 000 = 0 + (-) 2, 000
C. intangible assets
C. -2, 000 = 0 + (-)2, 000
D. other property D. -2000 = (-)2, 000 + 0
525. Current account shows Rs:1, 000 as 530. Share are alloted on pro rata basis in case
overdrawn. When bank statement is re- of
ceived, it was identified that one of the
debtors has deposited Rs:400 into the ac- A. Oversubscription
count and bank charges Rs:20 had been B. Undersubsciption

1.1 ACCOUNTANCY 54
C. Minimum subscription 536. Reserve share capital means:

D. Forfeited share A. Part of authorized capital to be called
at the beginning
531. The sum of Liabilities and Capital is-
B. Portion of uncalled capital to be called
A. Expense only at liquidation
B. Income C. Over subscribed capital
C. Drawings D. Under subscribed capital
NARAYAN CHANGDER
D. assets 537. A partnership firm has 50 members. All
the partners have agreed to admit Riya
532. Which branch of accounting is concerned and Priya as new partners. Can Riya and
with analyzing costs of products or ser- Priya be admitted?
vices rendered in a business?
A. Yes
A. Auditing
B. No
B. Cost accounting
538. On liquidation of a company, Principal
C. Financial Accounting
amount of debentures is returned
D. Management Accounting A. First of All
E. Tax Accounting B. Last of All
533. Purchased goods on credit and on cash C. Before Equity Capital
will affect:(2019) D. After Equity Capital
A. Cash of goods
539. Public enterprise is a business unit estab-
B. Cash of creditors lished and operated by the
C. Cash, creditors and owner’s equity A. Shareholders
D. Cash, goods and creditors B. People
C. Employees
534. Expenses which are yet to be paid is
known as D. Government
A. Prepaid expenses 540. From financial statement analysis the

creditors are interested to know
B. Accrued expenses
A. Liquidity
C. Outstanding expenses
B. Profit
D. Unearned expenses
C. Efficiencies
535. . The financial statements of a business D. Share capital
enterprise include
541. Three days are added for ascertaining the
A. Balance sheet
date of maturity. These are known as
B. Profit and loss account days of
C. Cash flow statement A. Maturity
D. All the above B. Grace

1.1 ACCOUNTANCY 55
C. Payment 547. Gross profit is calculated in

D. none of these A. balancesheet

542. Goods taken by Proprietor for personal B. profit and loss account
use are credited to:
C. trading account
A. Purchases
B. Drawings D. ledger
C. Sales
548. State the need for treatment of goodwill
D. None of the above on the admission of a partner
543. Retiring partner’s share of goodwill is A. to compensate the new partner
adjusted through the remaining partners’
capital account in B. To compensate the old partner for
their sacrifice
A. Old Ratio.
B. Gaining Ratio. C. No entry
C. New Ratio. D. To compensate all partners

D. Sacrificing Ratio.
549. In the absence of an agreement, Interest
544. Sakshi Ltd. purchased for immediate can- on capital is
cellation its own 3, 000, 9% debentures
of Rs. 100 each redeemable at 5% pre- A. Not allowed
mium for Rs. 107. amount of loss will be B. Allowed at bank rate
A. 21000
C. Allowed @ 5%
B. 15, 000
D. 6%
C. 6, 000
D. 36, 000 550. Would you prefer a Savings Account
545. Discount or loss on issue of debentures is with?
written off from A. A higher interest rate
A. Securities premium reserve
B. A lower interest rate
B. Securities premium reserve (if it ex-
ists) and thereafter from statement of 551. GAAPs are:
profit and loss
A. Generally Accepted Accounting Poli-
C. Statement of profit and loss
cies
D. General reserve
B. Generally Accepted Accounting Princi-
546. Long term assets having no physical ex- ples
istence but, possessing a value are called
C. Generally Accepted Accounting Provi-
A. Intangible assets sions
B. Fixed assets
D. None of these
C. Current assets Explanation:Accounts always works with
D. Investments a logic steps

1.1 ACCOUNTANCY 56
552. X, Y and Z were partners in a firm shar- B. Cash account

ing profits in the ratio of 3:2:1. X retired C. Premium for Goodwill Account
and the new profit sharing ratio between
Yand Z will be 5:4. On Xs retirement the D. Revaluation Account
goodwill of the firm was valued at |54, 557. ready-to-use cash included on
000. Journal entry will be:
A. other property
A. Y’s Capital A/c Dr. 12, 000 Z’s Capital
B. intangible assets
A/c Dr. 15, 000 To X’s Capital A/c 27, 000
NARAYAN CHANGDER
C. fixed assets
B. Y’s Capital A/c Dr. 24, 000 Z’s Capital
A/c Dr. 30, 000 To X’s Capital A/c 54, 000 D. liquid assets
C. Y’s Capital A/c Dr. 15, 000 Z’s Capital 558. The interest on capital accounts of part-
A/c Dr. 12, 000 To X’s Capital A/c 27, 000 ners under fluctuating capital account
D. X’s Capital A/c Dr. 27, 000 To Y’s Cap- method is credited to:
ital A/c 12, 000 To Z’s Capital A/c 15, 000 A. Interest Account
553. ACCOUNTING RECORDS B. Profit and Loss Account
A. QUALITATIVE ASPECTS ONLY C. Partners’ Capital Account
B. QUANTITATIVE ASPECTS ONLY D. Partners’ Current Account
C. BOTH QUALITATIVE AND QUANTITA- 559. WHICH ACCOUNTING CONCEPT RE-

TIVE QUIRES THAT ACCOUNTING POLICIES
D. NEITHER QUALITATIVE NOR QUANTI- AND METHODS ONCE SELECTED SHOULD
TATIVE BE USED YEAR AFTER YEAR?
A. CONSERVATISM
554. GAAP stands for
B. PRUDENCE
A. Generally applicable Accounting Princi-
C. CONSISTENCY
ples
D. BUSINESS ENTITY
B. Generally Assumption Accounting Prin-
ciples 560. What is a Bill of Exchange?
C. Generally Accepted Accounting Princi-
pals
D. Generally Accepted Accounting Princi-
ples
555. Revised indian company act

A. 2000
B. 2011 A. a written order to a person requiring
them to make a specified payment to the
C. 2013
signatory or to a named payee
D. None of these B. A bill of exchange is an unconditional
556. When new partner brings cash for good- order in writing
will, the amount is credited to: C. a promissory note
A. Realisation Account D. none of above

1.1 ACCOUNTANCY 57
561. Which accounts are opened when the cap- 565. Postage stamps purchased for |30 by
itals are fixed? business. This transaction will be recorded
in:

A. Only Capital Accounts
A. Purchase book
B. Only Current Accounts
B. Cash Book
C. Capital Accounts as well as Current Ac-
counts C. Petty Cash Book
D. Either Capital Accounts or Current Ac- D. Journal

counts 566. A, B & C are partners sharing profits of a
business in the ratio of 3:2:1 respectively.
562. Gaining Ratio is calculated at the retire-
They admit D who brings in Rs. 60, 000
ment or death of a partner and change in
for his share of goodwill. A, B, C and D
profit-sharing ratio.
decide to share the profits respectively in
A. True. the ratio of 5:3:2:2. Credit will be given
to
B. False.
A. A Rs. 30, 000; B Rs. 18, 000 ; C Rs. 12,
563. The practice of measuring, classifying, 000
verifying, summarizing, interpreting and B. A Rs. 6, 000; B Rs. 6, 000
reporting on business transactions for a
business to reveal profit or loss, a firm’s C. A Rs. 30, 000; B Rs. 20, 000 ; C Rs. 10,
assets, liabilities and owners’ equity. 000
D. A Rs. 30, 000; B Rs. 30, 000
567. In case of partnership the act of any part-

ner is:
A. Binding on all partners
B. Binding on that partner only
C. Binding on all partners except that par-
ticular partner
A. Accounting
568. Machinery is
B. Accountancy
A. Fixed assets
C. Accountant B. Current asset
D. Bookkeeper C. Both
564. The balance in the profit and loss account D. Fictitious asset
is
569. Which section of the partnership act de-
A. Gross profit or gross loss fines partnership as the relation between
person who have agreed to share the
B. Net profit or net loss
profit of the business carried on by all or
C. Financial position any of them acting for all?
D. Super profit A. Section 61

1.1 ACCOUNTANCY 58
B. Section 130 575. The person, firm, or institution who does

not pay the price in cash for the goods pur-
C. Section 4
chased or the services received is called-
D. Section 48
A. Creditor
570. A and B are partners in a firm, they are B. Proprietor
entitled to interest on their capitals but the C. Debtor
net profit was not sufficient for this inter-
est, then the net profit will be distributed D. none
NARAYAN CHANGDER
among partners in: 576. Nature of goodwill is
A. Agreed ratio A. intangible asset
B. Captial ratio B. fictitious asset
C. Profit sharing ratio C. long term liability
D. equally D. current asset
571. Accrued Commission is a/an 577. Revaluation account is not prepared to

give effect to changed values of assets and
A. Income liabilities. True/False
B. Asset A. True.
C. Liability B. False
D. Expense 578. Accounting rules for partnership are gov-
erned by the partnership act of
572. Comparative analysis is also known as
time series analysis. A. 1933
A. True B. 1956
C. 1932
B. False
D. 2013
573. Current Assets do not include:
579. A ltd. wants to redeem 5, 000, 5%
A. Prepaid Expenses debentures of Rs. 100 each at 5% pre-
B. Inventory mium. How much amount it must transfer
to DRR, if it already had a balance of 10,
C. Goodwill 000 in DRR A/c.
D. Bills Receivable A. 25, 000
574. Which of the following items can not be B. 1, 15, 000

recorded in the Profit & Loss Appropriation C. 40, 000
Account? D. 50, 000
A. Interest on Capital
580. Goods worth rupees 7000 given away as
B. Interest on drawings charity should be credited to
C. Rent paid to partners A. Sales account
D. Partner’s salary B. Purchases account

1.1 ACCOUNTANCY 59
C. Charity account B. Rs. 30, 000

D. Trustee account C. Rs. 60, 000

581. Co-operative marketing society is the as- D. Rs. 25, 000
sociation of small, and
586. A and B are partners. Divisible profit as
A. abour and Employees per Profit and Loss Appropriation Account
B. Farmers and Artisans is ‘ 2, 50, 000. Total interest on partners’
drawings is ‘ 4, 000. A’s salary is ‘ 4, 000
C. Capital and Loan per quarter and B’s salary is ‘ 40, 000 per
D. Cottage and Small Scale annum. What will be the net profit/loss
earned during the year?
582. discount allowed will be recorded in
A. 3, 00, 000
A. trading account debit side
B. 2, 94, 000
B. trading account credit side
C. 3, 06, 000
C. profit and loss account debit side
D. 3, 02, 000
D. profit and loss account credit side
587. Which of the following is not a limitation
583. Fixed method is adopted which of the fol-
of financial statement analysis
lowing will appear in capital account
A. Ignores the qualitative elements
A. Additional capital
B. Not free from personal bias
B. Int. On capital
C. Intra-firm comparison
C. Int. On drawings
D. Ignores the price level changes
D. Share of profit
588. bad debts will be recorded in
584. FULL FORM OF IFRS
A. INTERNATIONAL FINANCIAL REPORT- A. trading account credit side
ING SYSTEM B. profit and loss account debit side
B. INTERNATIONAL FINANCIAL RECORD- C. balancesheet liablity side
ING SYSTEM D. profit and loss account credit side
C. INTERNATIONAL FINANCIAL RECOG-
NITION SYSTEM 589. Pick the odd one out:
D. INTERNATIONAL FINANCIAL REPORT- A. Interest on Partner’s Capital
ING STANDARDS. B. Partners’ Salaries/Commission
585. Eena, Meena and Teena are partners in C. Transfer of Part of Profit to Reserve
a firm. Teena retired from the firm. Af- D. Interest on Partner’s Loan
ter making adjustments for reserves and
revaluation of assets and liabilities the bal- 590. Making partnership deed-
ance in Teena’s capital account was Rs. 1, A. a. are mandatory
20, 000.Eena and Meena paid Rs, 1, 80,
000 in full settlement to Teena. By what B. B. are optional
amount is Meena’s capital account debited: C. S. are partly mandatory
A. Rs. 50, 000 D. The. none of these

1.1 ACCOUNTANCY 60
591. Receipts and payments account is pre- B. Reserve capital

pared on C. P/L account
A. Cash Basis
D. None of these
B. Time basis
597. A Ltd. issued 2, 000; 9% Debentures of
C. Accrual Basis
|100 each on the following terms:|20 on
D. Sales Basis applications ;|20 on allotment ; |30 on
first call ; |30 on final call.The public ap-
NARAYAN CHANGDER
592. The Balance of Petty Cash is:
plied for 2, 400 debentures. Applications
A. An Expense for 1, 800 debentures were accepted in
B. Revenue full. Applications for 400 debentures were
allotted 200 debentures and applications
C. An asset for 200 debentures were rejectedamount
D. Liability to be credited in 9%debenture allotment
at the time of application
593. On retirement of a partner, goodwill will
be credited to the Capital Account of: A. 40000
A. Retiring Partner B. 4000
B. Remaining Partners C. 400

D. none of these
594. Following are essential elements of a
partnership firm except: 598. Accounting equation can be expressed as-
A. At least two persons A. Liability = Assets + Capital
B. There is an agreement between all B. Assets = Liability-Capital
partners
C. Assets = Liability + Capital
C. An equal share of profits and losses
D. Assets = Internal Equity-External Eq-
D. A partnership agreement is for some uity
businesses.
599. A documentary evidence in support of
595. Which one of the following is not a main
business transaction is known as
objective of accounting?
A. Events
A. Systematic recording of transactions
B. Entry
B. Ascertainment of the profitability of
the business C. Voucher
C. Ascertainment of the financial position D. Purchases
of the business
600. Number of partners in a partnership firm
D. Solving tax disputes with tax authori-
may be:
ties
Explanation:Has nothing to do with govt A. Maximum Two
B. Maximum Ten
596. Gain on reissue of forfeiture share trans-
fer to C. Maximum One Hundred
A. Capital reserve D. Maximum Fifty

1.1 ACCOUNTANCY 61
601. Select the odd one out C. Partners capital account

A. Revaluation profit D. Partners loan account

B. Accumulated loss
606. On Retirement of a partner, the retiring
C. Goodwill brought by new partner partners capital account will be credited
D. Investment fluctuation fund with:
A. His/Her share of goodwill.
602. Shreya is a good baker. She wants to
start a bakery. For this, she wants to get B. His share in reserves and surplus.
into partnership with her friend’s daughter
C. proportionate amount of employees
advita, interested in business, who’s 15th
provident fund.
birthday was celebrated a week ago. Can
they form a partnership? D. His share of profit in revaluation.
A. Yes 607. the basic accounting postulates are de-
B. No noted by-
603. Accounting measures the business trans- A. Concepts

actions in terms of units. B. book keeping
A. valueless C. accounting
B. Non-Monetary D. none
C. Monetary
608. Journal entries of workmens compensa-
D. marketable
tion reserve
604. At the time of reissue of all forfeited A. All partners cap. To W.C.R
shares
B. W.C.R A/C TO All partners cap.
A. General reserve is debited with the
credit balance left in the forfeited shares C. Retire partners cap.a/c To W.C.R
account D. W.C.R To retired partners cap.
B. General reserve is credited with the
609. Which of the following is the primary pur-
credit balance left in the forfeited shares
pose of a ledger in accounting?
account
C. General reserve is credited with the A. To record financial transactions in
credit balance left in the forfeited shares chronological order
account B. To prepare financial statements
D. Capital reserve is credited with the C. To provide a summary of all accounts
credit balance left in the forfeited shares with their balances
account
D. To record cash transactions only
605. If any loan or advance is provided by
partner then, balance of such Loan Account 610. How much amount will be paid to A, if
should be transferred to his opening capital is 2, 00, 000 and his
share of realisation profit amounts to 10,
A. Assets side of balance sheet 000 and he has taken over assets valuing
B. Liabilities site of balance sheet 25, 000 from the firm?

1.1 ACCOUNTANCY 62
B. 8, 000
C. 13, 000
D. none of above
615. If three partners A, B, C are sharing profit

as 5:3:2, then on the death of a partner A,
how much B and C will pay to A executor
A. 2, 35, 000 on account of goodwill. Goodwill is to be
NARAYAN CHANGDER
calculated on the basic of 2 years purchase
B. 1, 65, 000
of last 3 years average profit, profits for
C. 2, 15, 000 the last 3 years are Rs. 3, 28, 000 Rs. 3,
D. 1, 85, 000 46, 000 and Rs. 4, 00, 000.
611. R
A. Q
B. G
C. H
D. Hf
612. Warehousing maintains safety of goods

and services and fulfills utility. A. Rs. 3, 16, 000 and Rs. 1, 42, 000
A. Place B. Rs. 2, 44, 000 and Rs. 2, 16, 000
B. Risk C. Rs. 4, 29, 600 and Rs. 2, 86, 400

C. Time D. Rs. 2, 16, 000and Rs. 1, 44, 000
D. Finance 616. Credit rules for personal account is
613. Ledger is a book in which:(2016) A. Credit the giver
A. Only personal and cash accounts are B. Credit the receiver
opened C. Credit what comes in
B. Only real accounts are opened D. Credit all gain and expenses
C. Only nominal accounts are opened
617. 4 month bill drawn on 1st January 2019
D. All, real, nominal and personal ac- will mature for payment on
counts are opened
A. 3rd may 2019
614. What amount will be reported under Cash B. 4th may 2019
From Investing Activities?
C. 5th may 2019
D. 10th may 2019
618. Working Capital is the:

A. Cash and Bank Balance
A. 3, 000 B. Capital borrowed from the Banks

1.1 ACCOUNTANCY 63
C. Difference between Current Assets 624. Goodwill is?

and Current Liabilities A. A tangible asset

D. Difference between Current Assets B. Intangible asset
and Fixed Assets
C. Both intangible and fictitious
619. Which account is classified as an Income? D. Intangible but not fictitious
A. Auto Loan
625. Transaction are posted in a book called
B. college Fund ledger.
C. Bank Account A. True
D. Allowance B. False
620. How many types of share? 626. Following is not a right of a shareholder
A. 1
B. 2 A. To receive a dividend declared by the
company
C. 3
B. To attend and vote a meetings
D. 4
C. To manage Company’s affairs
621. Interpretation of Financial Statements in- D. To receive the company’s accounts
cludes:
A. Criticisms and Analysis 627. Realisation account is a-
B. Comparison and Trend Study A. Personal Account
C. Drawing Conclusion B. Real Account
D. All the above C. Nominal Account
622. Total assets in a business are Rs 8, 00,
000 and total liabilties are Rs 5, 00, 000. 628. Current ratio is 2:1. On the sale of fixed
The difference is called: asset (book value Rs 20, 000) for Rs 18,
A. Income 000, state whether the current ratio will
B. Expenses A. Improve
C. Capital B. Decline
D. Goodwill C. Not change

D. Can not say
623. Which of the following account with a
normal balance is shown at the credit side 629. in the absence of partnership deed, the
of a trial balance? interest is allowed on partners capital:
A. Bank A. @5% p.a.
B. Equipment B. @6%p.a.
C. Cash C. @12%p.a.
D. Unpaid Expenses D. no interest is allowed

1.1 ACCOUNTANCY 64
630. Land, buildings and machinery are in- B. Goodwill

cluded C. Revaluation profit
A. liquid assets D. Balance in profit and loss account
B. fixed assets
636. The concept which assumes that a busi-
C. intangible assets ness will last indefinitely is
D. other property A. Business Entity
NARAYAN CHANGDER
631. is the language of business B. Going concern
A. Accounting C. Periodicity
B. Commerce D. Conservatism
C. Economics Explanation:Does t conserve things
D. Stock 637. When the world ‘bearer’ is struck off by
drawing a line, the cheque becomes an or-
632. Liability of partner is: der cheque.
A. Limited
A. bearer cheque
B. Unlimited
B. order cheque
C. Determined by Court
C. dishonour of a cheque
D. none of above
D. crossed cheque
633. Production of factory had to stop for E. none of them
week due to labour strike. The owner es-
timated the loss of production and likely 638. RATIO ANALYSIS IS HELPFUL FOR
loss of profit arising out of the situation. A. FINANCIAL ANALYSIS
He directed the accountant to record the
B. FINANCIAL PLANNING
loss in the books of account. Which of the
concept accountant violate C. FORECASTING
A. Verifiable objective concept D. ALL OF THE ABOVE
B. Revenue recognition concept 639. rent received will be recorded in
C. Cost concept A. profit and loss account debit side
D. Prudence concept B. profit and loss account credit side
634. Gross profit is C. trading account credit side
A. Cost of goods sold + Opening stock D. trading account debit side
B. Excess of sales over cost of goods sold 640. Industries involve in collection of natu-
C. Sales fewer Purchases ral and mineral resources from land, water
D. Net profit fewer expenses of the pe- and air are industries
riod A. Manufacturing
635. Sacrificing ratio is used to distribute B. Extraction

in case of admission of a partner: C. Construction
A. Reserve D. Genetic

1.1 ACCOUNTANCY 65
641. Indian Company act 647. Liability of a shareholder is limited to

A. 1956 of the shares allotted

A. Paid up value
B. 1932
B. Called up value
C. 1988
C. Face value
D. 1999
D. Reserve price
642. A cash book with discount, cash and bank
column is called 648. In a partnership firm, a partner withdrew
|5, 000 per month on the first day of ev-
A. Simple cash book ery month during the year for personal ex-
B. Three column cash book penses. If interest on drawings is charged
@6%p.a. the interest charged will be:
C. Double column cash book
A. |3, 600
D. Petty cash book
Explanation:An all in one book B. |1, 950
C. |1, 800
643. The process of recording transactions in
ledger is called:(2016) D. |1, 650
A. Recording 649. .... all expenses and losses 2 what

B. Journalizing goes out3 the giver.
A. Debit, debit, debit
C. Transferring
B. credit, credit, credit
D. Posting
C. He owes, he owes, he owes
644. Brief explanation of an entry is called as
D. debit, credit, credit
A. Folio
650. Balaji and Kamalesh are partners shar-
B. Narration ing profits and losses in the ratio of 2:1,
C. Posting they admit yogesh into partnership.the
new profit sharing ratio between balaji ka-
D. Journalising
malesh and yogesh is agreed to 3:1:1.Find
645. John Smith invested 15, 000. How the sacrificing ratio between balaji and ka-
would you record it in the General Jour- malesh
nal? A. 1:3
A. John Smith Capital (DR) Cash (CR) B. 3:1
B. Cash (DR) John Smith, Capital (CR) C. 2:1
D. 1:2
646. Tick the situations in which a partnership
firm comes to an end 651. Vikas is a partner in a firm. His drawings
A. Retirement during the year ended 31st March 2019
were |30, 000. If interest on drawings
B. Death
is charged @9% p.a the interest charged
C. Lunacy will be
D. Insolvency A. |270

1.1 ACCOUNTANCY 66
B. |2, 700
C. |1, 350
D. None of these
652. Cash book records receipts and pay-

ments.
A. cash A. Balance of Profit Loss A/c
NARAYAN CHANGDER
B. credit B. Advertisement Suspense A/c
C. cash and credit both C. Partner’s Loan
D. either cash or credit D. All of the above
E. neither cash nor credit 657. If goods are distributed as free samples,
which account should you debit?
653. X & Y are partners in the ratio of 3:2. A. Purchases
Their capitals are |2, 00, 000 & |1, 00,
000 respectively. Interest on capitals is B. Goods
allowed @8%p.a Firm earned a profit of C. Free sample
|60, 000 for the year ended 31st March D. Advertising
2019. Interest on Capital will be:
658. In the absence of any information, it is
A. X |16, 000; Y |8, 000
assumed that Securities Premium is due
B. X |8, 000; Y |4, 000 alongwith
C. X |14, 400; Y |9, 600 A. Application Money
D. No interest will be allowed B. Allotment Money
C. Call Money
654. A chartered Company is established by
D. As per convenience
head of the
A. Government 659. Surplus, i.e., Balance in Statement of
profit and loss is shown as
B. State
A. Share capital
C. Region
B. Reserves and surplus
D. District C. Other long-term liabilities
655. Sole proprietorship business can be D. Current liabilities
started by 660. What is meant by a Debenture?
A. at least seven persons A. Debenture is an oral acknowledge-
B. any one person ment of debt taken by company
C. at least two persons B. Debenture is a written acknowledge-
ment of debt taken by company
D. at least three persons
C. Debenture may be written or oral ac-
656. Which of the following is not transferred knowledgement of debt taken by company
to Realisation A/c D. None of these

1.1 ACCOUNTANCY 67
661. Investment Fluctuation Reserve Rs. 1, C. An expense is defined as a decrease

80, 000, Investment Rs. (Book Value) 4, in assets which is not a distribution to the
00, 000 & Market value Rs.4, 20, 000 owner

with what Amount A will be credited. If D. none of above
their are three Partners Sharing Profit &
Losses 2:2:1. Now From 1st April 2020 666. The of a business firm is measured by
wants to change to 3:2:1. its ability to satisfy its short term obliga-
A. Rs.72, 000 tions as they become due.
B. Rs.80, 000 A. Activity
C. Rs.1, 00, 000 B. Liquidity
D. Rs.1, 08, 000 C. Debt
662. A and B are partners sharing profits in ra- D. Profitability

tio of 2:1. They admit C for 1/3 share in
667. Income and Expenditure A/C is prepared
profits. The sacrifice ratio of A and B is
in order to ascertain
A. 2:3
A. Profit or Loss
B. 1:2
B. Surplus or Deficit
C. 2:1
C. Cash in hand & at Bank
D. 1:1
D. Assets & Liabilities
663. Declaration and payment of dividends on
company’s stock. 668. In Partnership business there must be
among the partners
A. Operating
A. Normal Relation
B. Investing
B. Disputes
C. Financing
C. Friendly
D. Supplemental
D. Utmost Good Faith
664. Ascertain the accounting equation when,
purchase furniture for Rs. 10, 000 669. Amount of capital stated in MoA of com-
pany as its registered Capital
A. 10, 000 = 0 + 10, 000
A. Authorised Capital
B. 10, 000 + 10, 000 = 0 + 0
C. (-) 10, 000 + 10, 000 = 0 + 0 B. Share Capital
D. 10, 000 = 10, 000 + 0 C. Reserve Capital

D. Paid up Capital
665. An Expense is
A. An expense is defined as a decrease in 670. Debenture holders are
assets which can be a distribution to the A. Owners of the Company
owner
B. Promoters of the Company
B. An expense is defined as an increase
in assets which can be a distribution to the C. Debtors of the Company
owner D. Creditors of the Company

1.1 ACCOUNTANCY 68
671. Petty cash may be used to pay 676. Capital of the partners are maintained
A. The expenses relating to postage and by:
conveyance. A. Fixed capital method
B. Salary to administrative staff. B. Fluctuating capital method
C. For the purchase of furniture and fix- C. By any two above methods
tures D. None of these
D. For the purchase of raw material.
677. Generally cash book is made on which ba-
NARAYAN CHANGDER
672. A businessman generally opens a ac- sis.
count with a bank and maintains related A. weekly
cash book. B. monthly
A. savings C. yearly
B. current D. all of them
C. multiple deposit E. any of them
D. fixed deposit
678. In the absence of partnership deed, how
E. premium is profit and loss divided?
673. A and B are partners sharing profits in ra- A. a. capital ratio
tio of 3:2. A’s Capital is Rs. 30, 000 and B. B. sacrifice ratio
B’s Capital is Rs. 15, 000. They admit C C. S. equal ratio
for 1/5thshare of profits. C will bring as
his capital D. The. in proportion to income
A. Rs. 9, 000 679. Straight line method of depreciation is
B. Rs. 12, 000 that method under which
A. Depreciation is charged at the fixed
C. Rs. 14, 500
percentage on the book value of the as-
D. Rs. 11, 250 sets.
674. While preparing the Balance Sheet of a B. Depreciation is charged at a fixed per-
Company which item is shown under the centage on the original cost of the assets.
head ‘Long term Borrowings’? C. Depreciation is charged on original
A. 6% Debentures cost of asset but the depreciation rate
changes.
B. Security Premium Reserve
C. Trade Payable
D. None of the above 680. X and Y are partners with capital of
Rs.50, 000 each. They admit Z as a part-
675. Debentures are said to be issued at Dis- ner with 1/4th share in the profits of the
count when firm. Z brings in Rs.80, 000 as his share
A. I.P. = F.V. of capital. The Profit and Loss Account
showed a credit balance of Rs.40, 000 as
B. I.P. > F.V. on date of admission of Z. The Value of
C. I.P. < F.V. Firm’s Goodwill will be
D. Any of these A. Rs. 1, 00, 000

1.1 ACCOUNTANCY 69
B. Rs. 25, 000 686. When two parallel lines are drawn across
the cheque, it is said to be crossed
C. nil

A. bearer cheque
D. Rs. 1, 80, 000
B. order cheque
681. The formula for calculating the net income
C. dishonour of a cheque
component percentage is
D. crossed cheque
A. net income / total sales
E. none of them
B. total sales / total expenses
C. total sales-total expenses / net in- 687. If transaction is totally omitted from the
come books, it is called?
D. none of these A. A
B. S
682. For getting share in profits, a new part-
ner brings C. V
A. Capital D. AAS
B. Loan 688. Expenses which are paid in advance is

C. Goodwill
D. None of these A. Prepaid Expenses
B. Postpaid Expenses
683. Which of the following capital is not
shown in the company’s Balance Sheet ‘ C. Outstanding Expenses
D. Accrued Expenses
A. Authorised capital
B. Issued &subscribed capital 689. If, at the time of admission, the Revalua-
tion A/c shows a profit, it should be cred-
C. Called-up and paid up-capital
ited to
D. Reserve capital
A. All Partners Capital Accounts in the
684. Which one of the following is not branch new profit sharing ratio
of accounting B. Old Partners Capital Accounts in the
A. Financial accounting old profit sharing ratio
B. Management accounting C. Old Partners Capital Account in the

sacrificing ratio
C. Human resources accounting
D. All Partners Capital Accounts equally
690. Sole Trading concern is liability in na-
685. Sacrificing Ratio ture
A. New Ratio-Old Ratio A. Limited
B. Old Ratio-New Ratio B. Unlimited
C. Old Ratio-Gaining Ratio C. More Limited
D. Gaining Ratio-Old Ratio D. Less Limited

1.1 ACCOUNTANCY 70
691. Ram and Mohan are in partnership with 697. on the admission of a new partner, in-
48 others. Mohan wants to admit his crease in the value of assetsis debited to
friend Sohan into the partnership. All the A. p n l adjustment a/c
other partners agree. Will sohan be admit-
ted? B. assets a/c
A. Yes C. old partners capital a/c
B. No D. none of these
NARAYAN CHANGDER
698. WHICH ACCOUNTING CONCEPT STATES
692. Equipment, land and buildings included on
THAT ONLY THOSE TRANSACTIONS
A. liquid assets SHOULD BE RECORDED IN THE BOOKS OF
ACCOUNTS WHICH CAN BE MEASURED IN
B. tangible assets
TERMS OF MONEY?
C. intangible fixed assets
A. GOING CONCERN CONCEPT
D. not the answer above B. MONEY MEASUREMENT
693. A voucher is prepared for C. REVENUE RECOGNITION
A. Cash and credit purchases D. FULL DISCLOSURE
B. Cash and credit sales 699. 5 Sales book is used to record

C. Cash received and paid A. all sales of goods
D. All of these B. all credit sales of assets
C. all credit sales of goods
694. Accounting communicates information to
D. all sales of assets and goods
A. Internal Users Explanation:Sold on credit
B. External Users
700. Liquid or Quick assets =
C. Both A and B
A. Current assets-(Stock + Work in
D. None of the above progress)
B. Current assets + Stock + Work in
695. Cash book is a form of:
progress
A. Trial Balance
C. (Current assets + Stock) + Work in
B. Ledger progress
C. Journal D. (Current assets + Work in progress)-
Stock
D. All of the above
701. The liability of shareholders of a company
696. Which is not a category of cash flow? is limited up to their investment
A. Operating A. Assets
B. Investing B. Goods
C. Financing C. Capital
D. Current Assets D. Debentures

1.1 ACCOUNTANCY 71
702. Realisation accounts is prepared when 708. The example of Financial Record is
A. Dissolution of partnership firm A. Notice

B. Admission of a partner B. Circular
C. Retired of a partner
C. Government Rule
D. No entry of partner
D. Trading A/c
703. Revaluation account is necessary for
A. Adjustment in the value of Assets and 709. Current Liabilities include:
liabilities A. Bills Payable
B. To find the Goodwill of
B. Creditors
C. To find the Goodwill of from to find
profit and loss of C. Outstanding Expenses
D. To find profit and loss of firm how to D. All of the above
prepare balance sheet
710. Sale of goods to Ram for cash is debited
704. Rent due for the month of March will ap- to
pear of the cash book.
A. Ram
A. On the receipt side
B. On the payment side B. Cash A/c
C. As a Contra Entry C. Sales A/c
D. Nowhere D. Stock A/c
705. A balance sheet reports financial informa-
711. While preparing the Balance Sheet of a
tion over a specific period of time.
company ‘Securities Premium’ is shown
A. True under:
B. False A. CURRENT LIABILITY
706. Amount invested by owner in business is B. SHARE CAPITAL
called?
C. LONG TERM BORROWINGS
A. Drawings
D. NONE OF THE ABOVE
B. Capital
C. Assets 712. X, Y & Z are partners in the ratio of 4:3:2.
D. Liability Salary to X |15, 000 and to Z |3, 000
omitted and profits distributed. For recti-
707. Accounting provides information on fication, now X will be credited:
A. Cost and income for managers
A. |15, 000
B. Company’s tax liability for a particular
year B. |1, 000
C. Financial conditions of an institutions C. |12, 000

D. All of the above D. |7, 000

1.1 ACCOUNTANCY 72
713. Indebtedness arising from purchases of 717. As per Companies Act, the Balance Sheet
goods, materials, supplies, services or of a company is required to be presented
other transactions is in
A. Horizontal Form
B. Vertical Form
C. Either Horizontal or Vertical Form
D. Neither of the above
NARAYAN CHANGDER
718. Zee ltd. purchased its own 5, 000 7%
debenturesof Rs.100 each from open mar-
ket at Rs.96 each for immediate cancella-
tion.Profit on redemption will be
A. Accounts Payable
A. 5, 00, 000
B. Notes Payable
B. 4, 80, 000
C. Bonds Payable
C. 20, 000
D. Loans Payable
D. 35, 000
714. On a share of Rs. 10 issued at a premium
719. Which of the following items is a charge
of Rs. 2, whole amount is called-up and Rs.
against profit?
7 is received, share capital account will be
credited by A. Interest on Capital
A. Rs. 10 B. Interest on loan
B. Rs. 12 C. Interest on drawings
C. Rs. 10 D. Partners’ salaries
D. Rs. 16 720. What will be journal entry when cash is
withdrawn from bank for personal use?
715. Calls-in-advance and interest thereon is
shown as A. Drawing A/c debit, Bank A/c credit
A. Shareholders’ funds B. Cash A/c debit, Bank A/c credit

C. Bank A/c debit, Drawing A/c credit
B. Other non-current liabilities
D. Bank A/c debit, Capital A/c credit
C. Other current liabilities
D. Trade payables 721. Debit what comes in, Credit what goes
out is rule of which account
716. X and Y are partners sharing profits and
A. Real Account
losses in the ratio of 3:2. Z is admitted for
1/5th share in profits which he gets from B. Nominal Account
X. New profit sharing ratio will be C. Personal Account
A. 12:8:5 D. None
B. 8:12:5 722. Debts whose repayment obligations are
C. 2:2:1 more than one year are referred to as
D. 2:2:2 A. notes payable

1.1 ACCOUNTANCY 73
B. Long-term debt B. college Fund

C. current debt C. Bank Account

D. accounts payable D. Cash
723. In the absence of partnership deed, inter-
est on capital is allowed at the rate of: 728. The party which is entitled to receive the
payment of the bill is known asA.
A. 6% p.a. simple interest
A. DrawerB.
B. 6% p.a. compound interest
C. 12% simple interest B. DraweeC.
D. None of the above C. Bankad.

D. Payee
724. Bills payable is shown as
A. Long-term borrowings 729. A, B and C are partners sharing profits in
B. Short-term borrowings the ratio of 5:2:1. If the new ratio on the
retirement of A is 3:2, what will be the
C. Other current liabilities
gaining ratio?
D. Trade payables
A. 11:14
725. X and Y are partners in a firm sharing
B. 3:2
profits and losses in the ratio of 3:2. They
take C as a new partner. Goodwill of the C. 2:3
firm is valued at Rs. 3, 00, 000 and C
D. 14:11
brings Rs. 30, 000 as his share of good-
will in cash which is entirely credited to the
730. Total assets and liabilities of the firm are
Capital Account of A. New profit-sharing
Rs.70, 000 and Rs.10, 000. Average
ratio will be:
profit is Rs.8, 000. NRR 10%. Calculate
A. 3:2:1 super profit?
B. 6:3:1 A. Rs.1, 000
C. 5:4:1
B. Rs.2, 000
D. 4:5:1
C. Rs.3, 000
726. X & Y are partners sharing profits in D. Rs.4, 000
the ratio of 3:2. Z is admitted as a
partner. Calculate sacrificing ratio if new 731. A, B, C are partners sharing profit and
profit sharing ratio is 9:7:4 losses in the ratio of 4:3:1:B retires and
A. 3:1 gives his share of profit to A Rs. 3, 600
B. 3:2 and C Rs. 4, 500. What is the Gaining
sharing ratio of A and C?
C. 1:3
A. 4:5
D. 9:7
B. 2:5
727. Which account is classified as an Ex-
pense? C. 23:45
A. Concert Tickets D. 4:1

1.1 ACCOUNTANCY 74
732. Cash, goods, or assets invested by the C. To record the account number
proprietor in the business for earning D. we don’t use it
profit is called-
A. Profit 738. ALL ASSETS INCLUDING CASH ARE
TRANSFERRED TO THE REALIZATION AC-
B. Capital
COUNT
C. Fixed assets
D. none
NARAYAN CHANGDER
733. Incomplete records are generally main-
tained by
A. A company
B. Government
C. Small sized sole trader business
A. TRUE
D. Multinational enterprises
B. FALSE
734. Amount which the proprietor has in-
vested in a business is known as 739. In what ratio is the profit on revaluation
shared?
A. Capital
A. a. In the new profit-loss ratio
B. Liability
B. B. sacrifice ratio
C. Asset
C. S. old profit loss ratio
D. Expenses
D. The. in yield ratio
735. Purchase refers to the buying of
A. Goods or products for resale 740. If total assets of a business are rs 10, 00,
000 and capital is rs 4, 00, 000. Calculate
B. Assets for the factory Creditors
C. Stationery for office use A. 7, 00, 000
D. Daily expenses B. 6, 00, 000
736. The term SALES is used only for the sale C. 14, 00, 000
of and is never used for the sale of any
D. 8, 00, 000
asset.
A. Furniture 741. X Ltd. purchased a building for |60,
00, 000 payable as 20% in Cash and
B. land
balanceby allotment of 8% debentures of
C. Purchases |500 each at a premium of 20%. Num-
D. Goods berof debentures issued will be:
A. 9600
737. What is the post reference column on the
account form used for? B. 5000
A. To record the date C. 8000
B. To record the page number D. 10000

1.1 ACCOUNTANCY 75
742. are those assets which have a physi- C. Purchase returns account
cal existence and which can be seen or felt.
D. Furniture account

A. Current Asset
B. Wasteful Asset 747. For GST paid on inter-state of goods,
which of the following account is credited:
C. Intangible Asset
A. Output CGST A/c
D. Tangible Asset
B. Output IGST A/c
743. On dissolution of a firm where is cash in
C. Input IGST A/c
hand transferred
D. Output SGST A/c
A. Only debit side of cash
B. On the debit side of cash account on 748. In a company’s Balance Sheet, Debit
the credit side of cash account (Negative) balance of Statement of profit
C. Only credit side of cash account and loss is shown as
D. No entry in cash account A. Non-current liabilities
B. Current liabilities
744. The systematic process of keeping or
maintaining financial records and transac- C. Non-current assets
tions for a business
D. Reserves and surplus
749. If the retiring partner is not paid full

amount due to him immediately on retire-
ment, his balance is transferred to his
A. Loan account
B. Bank account
A. Accounting C. Capital account
B. Accountancy D. Current account
C. Accountant
750. Rent due for the month of March will ap-
D. Bookkeeper pear in the Cash Book.
745. identify the type of debenture classified A. On the receipt side
on the basis of tenure B. On the payment side
A. zero coupon debenture
C. as a contra entry
B. registered debenture
D. no where
C. secured debenture
D. irredeemable debenture 751. Current assets example
A. Debtors
746. The periodic total of purchases return
journal is posted to: B. Capital
A. Purchase account C. Drawing
B. Profit and loss account D. Furniture

1.1 ACCOUNTANCY 76
752. Assets, which have physical existence, C. Business entity

are called:(2017) D. Consistency
A. Intangible assets
758. X Ltd. Forfeited 500 shares of |10 each,
B. Tangible assets |7 called up, issued at a premium of |2
C. Quick assets per share to be paid at the time of allot-
D. Current assets ment for non payment of first call of |2
per share. Entry on forfeiture will be:
NARAYAN CHANGDER
753. The person from whom the amount are A. Share capital A/c Dr 3, 500Securities
due for goods sold or service rendered on Premium Reserve A/c Dr 1, 000To Share
credit basis is term as- First Call A/c 1, 000To Share Forfeiture
A. Trade creditors A/c 3, 500
B. Trade debtors B. Share capital A/c Dr 4, 500Securities
C. Opening Stock premium Reserve A/c Dr 1, 000To Share
First Call A/c 1, 000To Share Forfeiture
D. Closing Stock A/c 4, 500
754. Ascertain the accounting equation when, C. Share Capital A/c Dr 4, 500To Share
sold goods costing Rs. 10, 000 for cash first Calle A/c 1, 000To Share Forfeiture
Rs. 12, 000 A/c 3, 500
A. -10, 000 = 0 + 12, 000 D. Share Capital A/c DrTo Share First Call
A/c 1, 000To Share Forfeiture A/c 2, 500
B. -10, 000 + 12, 000 = 0 + 0
C. -10, 000 + 12, 000 = 0 + 2, 000 759. Which of the following is/are method(s)
of valuation of goodwill?
D. 12, 000 = 10, 000 + 2, 000
A. Average profit method
755. WHAT INCLUDES A BILL OF EXCHANGE?
B. super profit method
A. title
C. capitalisation method
B. amount
D. All of the above
C. signature
D. none of above 760. Debentures represent the
A. Long-term Borrowings of a Company
756. Who wrote Arthasasthra?
B. The Investment of Equity-Shareholders
A. Chandragupta Maurya
B. Kautilya C. Directors share in a Company
C. Kannadasan D. Short-Term Borrowings of a Company
D. Kalki
761. Gama Chemicals Ltd. is a newly formed
757. Which concept says that Accounting prac- company. How much discount per share
tices once adopted should be applied year can it allow for issuing the shares to the
after year? public?
A. Conservatism A. 6%
B. Accrual B. 10%

1.1 ACCOUNTANCY 77
C. 5% A. Rs 85, 800
D. None of these B. Rs 77, 800

C. Rs 82, 200
762. You are recording info in the ledger. You
are posting a debit to an account that al- D. Rs 74, 200
ready has a debit balance. What do you 767. Creditors were worth Rs. 6, 000, they
do? accepted Stock worth Rs. 9, 000 in full
A. add settlement. The accounting treatment will
B. subtract be:
C. just move the number

D. none of above
763. WHO USES THE BILL OF EXCHANGE?

A. the cashier
B. the drawee, the payee and the drawer
C. the retailer A. Through Realisation A/c
D. none of above B. Through Partners’ Capital A/cs
764. Interest Payable on Debenture is C. Either (i) or (ii)
A. an Appropriation of profits of the Com- D. No Entry

pany 768. The principal amount of debentures will
B. a charge against profits of the Com- be repaid by the Company either at the
pany end of a specified period or by installments
during the life time of the Company. Such
C. transferred to sinking fund investment
types of debentures are Called
account
A. Redeemable Debentures
D. transferred to general reserve
B. Irredeemable Debentures
765. Journal proper includes entries related to C. Convertible Debentures
D. Bearer Debentures
A. Sale of asset on credit
769. carriage inward is recorded in
B. Sale of asset for cash
A. trading account credit side
C. Sale of goods for cash
B. trading account debit side
D. Sale of goods on credit
C. profit and loss account debit side
766. Salary paid in cash during the current D. profit and loss account credit side
year was Rs 80, 000; Outstanding salary
at the end was Rs 4, 000; salary paid in 770. Purchase goods for cash affects on
advance last year pertaining to the current A. Purchases
year was Rs 3, 200; paid in advance dur- B. Goods
ing current year for next year was Rs 5,
000; the amount debited to Income and Ex- C. Purchases and cash
penditure Account will be: D. Goods and cash

1.1 ACCOUNTANCY 78
771. Proceeds from the sale of equipment used D. dual aspect concept
in the business Explanation:Individual is different from
A. Operating business
B. Investing 777. Income received in advance if given in a

C. Financing trial balance is shown in
A. Trading a/c as deduction from the re-
D. Supplemental
spective income.
NARAYAN CHANGDER
772. Which of the following is not incorpo- B. Profit and loss account as deduction
rated in the Partnership Act? from the respective income.
A. Profit & Loss are to be shared equally C. Profit and loss account as deduction
B. no interest is to be allowed on capital from the respective income and in the li-
ability side of the balance sheet.
C. Partner’s loan is to be allowed interest
@ 6% p.a D. Balance sheet in the liability side.
D. all drawings are to be charged interest 778. Transferring the entries from the journal
to ledger is called
773. Goodwill of the firm is not affected by
A. Posting
A. Location of the firm
B. Trial balance
B. Reputation of firm
C. Journal
C. Better customer service
D. Trading account
D. None
779. Generally the duration of an Accounting
774. If profit is insufficient int. On capital will period is of-
not be provided
A. 3 months
A. True
B. 6 months
B. False
C. 9 months
775. Interest received of 100 was recorded as D. 12 months
interest paid. What will be the effect on
cash balance? 780. The concept of multinational company
is developed due to mutual co-operative
A. Cash will reduce by 100.
among nations
B. Cash will increase by 200.
A. Close
C. Cash will reduce by 200.
B. Developing
D. No effect on cash balance.
C. Friendly
776. The business is liable to the proprietor D. Developed
of the business in respect of capital intro-
duced by the person according to 781. If a fabric company has space that is not
being used, it is rented to another com-
A. Money measurement concept pany. So the income obtained from renting
B. Cost concept the space is referred to as
C. Business entity concept A. business income

1.1 ACCOUNTANCY 79
B. non-business income D. nil

C. direct income 786. The root of financial accounting system is

D. debt A. Social accounting
Explanation:because this income is not re-
lated to the business sector (fabric com- B. Stewardship accounting
pany) C. Management accounting
782. Premium on issue of shares can be used D. Responsibility accounting
for 787. Accounting can be viewed as an informa-
A. Issue of partly paid bonus shares tion system which has its inputs, process-
B. Writing of losses incurred during the ing methods and output.
year A. True
C. Writing off discount/loss on issue of B. False
debentures
788. IFRS ARE
D. Writing off past losses
A. RULE BASED
783. Claims from other parties, whether indi-
B. PRINCIPLE BASED
viduals or business entities, are referred
to as C. BOTH RULE AND PRINCIPLE BASED
A. receivables D. NEITHER RULE BASED NOR PRINCI-
PLE BASED
B. equipment
C. money order receivable 789. Surplus that is balance in statement of
profit and loss is shown as
D. the burden is paid in advance
Explanation:A note receivable is a receiv- A. Share capital
able reinforced by a promissory note B. Reserve and surplus
784. In double column cash book, how many C. Other long term Liabilities
columns of amount are there in cash book? D. Current liabilities
A. one column each side
790. Comparative statements show the
B. one column changes in
C. two columns A. Percentages
D. two columns each side B. Absolute amounts
E. any of them C. Both a and b
785. total capital employed in the firm is 8, 00, D. Ratios
000. normal rate of return is 15% and the
profit for the year is 1, 20, 000. value 791. Which account is classified as an Ex-
of goodwill as per capitalisation method pense?
would be A. Auto Loan
A. 8, 20, 000 B. college Fund
B. 1, 20, 000 C. Bank Account
C. 4, 20, 000 D. Cell phone bill

1.1 ACCOUNTANCY 80
792. Left hand side of an account is 797. From the given items which is not shown
called:(2015) under current liabilities
A. Debit side A. Trade payables
B. Credit side B. Short-term provisions
C. Both A and B C. Short-term borrowings
D. None of these D. Inventories
NARAYAN CHANGDER
793. Kaveri Ltd. a financing company, took 798. The retiring partner may claim a share in
loan of ‘ 20, 00, 000 during the year to the profits of the firm even after his retire-
be repaid in 5 yearly instalments starting ment if his account is not settled
after two years @ 10% p.a. It will be in- A. False
cluded in which of the following activities
while preparing Cash Flow Statements? B. True
A. Investing Activities 799. Analysis simply means simplification of

B. Financing Activities data.
A. True
C. Both Investing and Financing Activities
B. False
D. Operating Activities
800. The financial statement that reports in-
794. 14 The process of transferring the debit
come/loss along with expenses.
and credit items from journal to ledger ac-
counts is called A. Balance sheet
A. Casting B. Income statement
B. Posting C. Owner’s equity statement
C. Journalising D. Work sheet
D. Balancing 801. what is L.F. in cash book?
Explanation:Moving from one to another
A. latest forward
795. Credit the increase in:(2015) B. ledger file
A. Assets, Expenses C. ledger folio
B. Assets, Capital and Liabilities D. latest file
C. Revenue, Capital and Liabilities E. last forward
D. Expenses, Capital and Liabilities
802. An employee dismissed from his job is an
796. The person, firm or institution who does events which represent business transac-
not pay the price in cash for the goods pur- tion.
chased or the services received is called- A. True
A. Creditor B. False
B. Proprietor 803. A Person to whom goods is sold on credit
C. Debtor is called
D. None of these. A. Seller

1.1 ACCOUNTANCY 81
B. Debtor 809. Financial position of a business is ascer-

C. Creditor tained on the basis of

D. Liability A. Journal
B. Trial balance
804. A decrease in the balance of Accounts Re-
ceivable. C. Balance Sheet
A. Operating D. ledger
Explanation:It’s the final result
B. Investing
C. Financing 810. The area of accounting which focuses on
D. Supplemental reporting information to internal users.
A. Financial Accounting
805. The excess of assets over liabilities is
B. Payroll Accounting
A. Loss
C. Managerial Accounting
B. Cash
D. Accounts Payable Accounting
C. Capital
D. Profit 811. Which of the following statement is
false?
806. Debentures redeemable after 10 years
from the date of issue are shown as A. At maturity, debenture holders get
back their money
A. Long-term borrowings
B. Debentures can be forfeited for non-
B. Other long-term liabilities payment of call money
C. Short-term borrowings C. In Company’s Balance Sheet, deben-
D. Other short-term liabilities tures are shown under the head Long
term borrowings
807. Is revaluation profit transferred on ad-
mission of partner? D. Interest on Debentures is a charge
against profit
A. a. In the capital account of all the part-
ners 812. Rs. 5, 000 received from Mohan whose
B. B. In the capital account of the new account was written off as bad in the pre-
partner vious year should be credited to:
C. S. In the capital account of old part- A. Mohan’s A/c
ners B. Bad debts A/c
D. The. in profit and loss account C. Bad debts recovered A/c
808. A, B and C are partners sharing profits in D. None
the ratio 2:2:1.C retired. The new profit
sharing ratio between A and B will be: 813. value of fixed assets will be recorded in
A. 2:1 A. balancdesheet liablity
B. 1:1 B. balancesheet assets
C. 3:1 C. profit and loss account
D. none of the above D. trading account

1.1 ACCOUNTANCY 82
814. Double entry system means 819. From the following information calculate
proprietary ratio:share capital Rs 5, 00,
A. Twice recorded
000, non current assets Rs 22, 00, 000,
B. Once in ledger once in journal reserves and surplus Rs 3, 00, 000, cur-
C. Recording of both aspects of transac- rent assets Rs 10, 00, 000.
tion A. 100%
D. None of these B. 70%
NARAYAN CHANGDER
815. On retirement of a partner, the remaining C. 40%
partners compensate
D. 25%
A. retiring partner only
B. remaining partners only who have sac- 820. ALL ASSETS INCLUDING CASH ARE
rificed TRANSFERRED TO THE REALIZATION AC-
COUNT
C. retiring partner as well as remaining
partner who have sacrificed A. TRUE
D. None of the above B. FALSE
816. Items or events having insignificant eco- 821. A firm earns |1, 10, 000. The normal
nomic effect or not being relevant to the rate of return is 10%. The assets of the
user’s need not be disclosed in firm amounted to |11, 00, 000 and liabili-
ties to |1, 00, 000. The value of goodwill
A. Materiality principle
by capitalisation of Average Profit will be:
B. Full disclosure principle
A. |2, 00, 000
C. Accrual principle
B. |10, 000
D. Conservatism principle
C. |5, 000
817. Which accounts are opened when the cap- D. |1, 00, 000
itals are fixed?
A. Only capital account 822. Q1 When goodwill is not recorded in the
books at all on admission of a partners?
B. Only current account
A. If paid privately
C. Capital account as well as current ac-
count B. If brought in cash
D. Either current account and capital ac- C. If not brought in cash
count
D. If brought in Kind
818. Which is not a section on the income
statement? 823. Gaining ratio
A. Revenue A. New old

B. Expenses B. Old new
C. Owner’s Equity C. Old old
D. Net Income/Net Loss D. New new

1.1 ACCOUNTANCY 83
824. WHICH OF THE FOLLOWING IS NOT AN 828. Name the difference between capital em-
OBJECTIVE OF ACCOUNTING STANDARDS ployed and non current liabilities

A. TO BRING UNIFORMITY IN ACCOUNT- A. Shareholders fund
ING PRACTICES
B. Capital employed
B. TO PROVIDE NORMS FOR PREPARA-
C. Total assets
TION AND PRESENTATION OF ACCOUNT-
ING STATEMENTS. D. Total debts
C. TO MAKE COMPARISON MEANING- 829. Would you prefer a credit card with?
FUL.
A. A higher interest rate
D. TO EARN PROFIT IN BUSINESS.
B. A lower interest rate
825. A person who owes money to a firm
against goods bought or services received 830. Which branch of accounting embraces the
is called preparation of various tax returns and tax
planning necessary to minimize the impact
of taxes on the firm?
A. Auditing
B. Cost accounting
A. The Debtor C. Financial accounting
B. The Creditor D. Tax accounting
C. The Drawer 831. A business transaction affects:(2015)

D. None of these A. At least one account
826. Interest on capital will be paid to the part- B. At least two accounts
ners if provided for in the partnership deed C. Maximum two accounts
but only out of:
D. Maximum three accounts
A. Profits
B. Reserve 832. A amount of any known liability cannot
be determined with accuracy
C. Accumulated Profit
A. A liability should be provided.
D. Goodwill
B. A provision should be made.
827. Assertion (A):Interest on Partner’s capi-
tal may be shown in Profit and Loss Ac- C. A reserve should be set aside.
count. Reason(R):If Partners treat inter- D. None of these
est on capital as a charge.
833. Types of capital based on their nature are
A. Both (A) and (R) are true and (R) is the
divided into:
correct explanation of (A)
A. internal and external capital
B. Both (A) and (R) are true and (R) is not
the correct explanation of (A) B. personal and social capital
C. (A) is true, but (R) is false C. concrete and abstract capital
D. (A) is false, but (R) is true. D. own capital or loans

1.1 ACCOUNTANCY 84
834. A is an Intangible Assets. and excess application money was re-

A. Goodwill funded.what is amount that is refunded?
A. 2000000
B. Cash
B. 20000
C. Furniture
C. 200000
D. Stock
D. all of the above
835. Debenture issued as collateral security
840. On revaluation, the increase in the value
NARAYAN CHANGDER
will be debited to
of assets leads to
A. bank A/c
A. Gain
B. Debenture A/c
B. Loss
C. Debenture Suspense A/c
C. Expense
D. Profit & Loss A/c D. None of these
836. Uncalled capital means 841. debentures interest payable half
A. Balance of authorized capital yearlyamount of interest will be debited
to P&L will be
B. Amount Collected later from public
when required A. 24000
C. Part of Called up capital B. 12, 000
D. none of above C. 6000
D. 3000
837. “T” account is the simplest form of
a:(2015) 842. Number of partners in a partnership firm
may be
A. Journal
A. Maximum two
B. Ledger
B. Maximum ten
C. Trial balance
C. Maximum one hundred
D. Final account
D. Maximum fifty
838. An example of social capital is
843. At the time of dissolution of a partnership
A. private house firm assets are transferred to Realisation
B. machine A/c at its
C. Copyright
D. road
Explanation:Social capital is capital
owned by a group of people
839. ABC Ltd. issued 40, 000; 10% Deben-

tures of |100 each at par for cash payable
in full along with the application. Ap-
plications were received for 60, 000 A. Book Value
debentures. Debentures were allotted B. Realisable value

1.1 ACCOUNTANCY 85
C. Present Value A. 50
D. None of the above B. 100

844. A Sole proprietor concern is free from reg- C. 20
ulation by D. 10
A. Indian Contract Act 850. Assertion:Accounting helps in the iden-
B. Government tification of the strength and weakness
C. Private Indian of the business.Reason:Accounting records
all the business transactions that can be
D. Indian Law expressed in terms of money
845. The amount of goodwill is withdrawn by A. Both A and R are true and R is the cor-
old partners rect explanation of A
A. New partners capital a/c To bank B. Both A and R are true but R is not the
B. Old partners capital a/c To bank correct explanation of A
C. Bank To old partner C. A is true but R is false
D. Bank To new partners D. A is false but R is true
846. Balance of partner’s current accounts are: 851. A, B and C are partners in 3:4:2. B wants
to retire from the firm. The profit on reval-
A. Debit balance uation on that date was |36, 000. New
B. Credit balance ratio of A and C is 5:3. Profit on revalua-
tion will be distributed as:
C. Debit & create Balance
A. A |16, 000; B |12, 000; C |8, 000
D. Either debit balance nor credit balance
B. A |22, 500; C |13, 500
847. Which account is classified as an Asset?
C. A |12, 000; B |16, 000; C |8, 000
A. Concert Tickets
D. A |23, 625; C |12, 375
B. Bank Account
C. Allowance 852. The written agreement signed by the
partners entailing all terms and conditions
D. Bus Pass of partnership is called
848. What will always be the balance of part- A. partnership contract
ners’ current accounts? B. partnership agreement
A. a. Dr.(Debit) Balance C. partnership document
B. B. Cr.(Deposit) Balance D. partnership deed
C. S. either of both
853. Which of the following is not an internal
D. The. none of these user?
849. By virtue of Section 464 of the Compa- A. Employees
nies Act, 2013 the Central Government is B. Management
empowered to prescribe maximum number
of partners in a firm but the number of C. Owners
partners cannot be more than D. Creditors

1.1 ACCOUNTANCY 86
854. On the basis of retention, records may be B. Both A and R are true but R is not the
classified into types. correct explanation of A
A. Two C. A is true but R is false
B. Three D. A is false but R is true
C. Four
859. Salary paid to wasim should be debited
D. Five to:(2017)
NARAYAN CHANGDER
855. Information needed to prepare a balance A. Wasim account
sheet liabilities section is obtained from a B. Cash account
work sheet’s Account Title column and
C. Salary account
A. income statement debit column
D. Bank account
B. income statement credit column
C. balance sheet debit column 860. Financial analysis helps an analyst to ar-
rive at a decision.
D. balance sheet credit column
A. True
856. In GAAP, the accounting principles that
B. False
can be implemented without much com-
plexity or cost is- 861. the profit or less on revaluation of assets
A. Relevance and liabilities is transferred to the capital
account of
B. Objectivity
A. The old partners
C. Feasibility
B. The new partner
C. All the partners
857. Subscription received in cash during the
year amounted to Rs 60, 000. Subscrip- D. The sacrificing ratio
tion received in advance for next year was
862. Co-operative society is a voluntary asso-
Rs 3, 000 and received in advance during
ciation of minimum members
previous year was Rs 2, 000. Subscrip-
tion in arrear at the end of current year A. Twenty-Five
was Rs 5, 400. The amount credited to B. Twenty
Income and Expenditure Account will be:
C. Thirty-Two
A. Rs 53, 600
D. Twenty-Two
B. Rs 66, 400
C. Rs 56, 600 863. The process of transferring the transac-
tion recorded in the journal to respective
D. Rs 64, 400
accounts opened in Ledger is-
858. Assertion:Goodwill is a tangible fixed as- A. Journalising
set.Reason:Tangible fixed assets can be
B. Posting
touched and felt.
C. Balancing
A. Both A and R are true and R is the cor-
rect explanation of A D. Position Statement

1.1 ACCOUNTANCY 87
864. Sacrifice the system results thereof.”This definition of account-

A. New old ing is given by:

B. Old new A. Indian Institute of Chartered Accoun-
tants
C. New new
B. American accounting Association
D. Old old
C. American institute of certified public
865. which of the following items can not be accountants
recorded in the P & L appropriation a/c
D. International Financial regulation sys-
A. IOC
tem
B. IOD
C. Rent paid to partners 870. Which one of the following is not a main
objective of accounting
D. Partner’s salary
A. Systematic recording of transactions
866. In the absence of an agreement, int. On
capital is B. Ascertainment of the profitability of
the business
A. Not allowed
B. Allowed at bank rate C. Ascertainment of the financial position
of the business
C. Allowed @ 5%
D. Solving tax disputes with tax authori-
D. 6%
ties
867. Where two aspects of a transaction are
posted in the Cash Book, such an entry is 871. Insurance is the system that takes re-
called. sponsibility of to trading concerns for
the value of goods insured.
A. Double Entry
B. Debit Entry A. Production
C. Credit Entry B. Exchange

D. Contra Entry C. Return
868. Partner withdraws regularly at the mid- D. Compensation

dle of every month int calculated on
872. is the sequence of steps involved in
A. 5.5 months
the accounting process
B. 6 months
A. Journal
C. 12 month
B. Accounting cycle
D. 6.5 month
C. Ledger
869. “Accounting is the art of recording classi-
fying and summarising in a significant man- D. Posting
ner and in terms of money transactions
and events which are in part at least of 873. Incomplete records may be maintained by
a financial character and interpreting the

1.1 ACCOUNTANCY 88
878. What is meant by partnership deed?

A. A. Terms of purchase and sale of busi-
ness
B. B. Terms and conditions of operation
of partnership business
C. S. Rules regarding dissolution of part-
nership
NARAYAN CHANGDER
D. The. none of these
879. Which of the following transactions is al-

A. Industries
ways recorded in the partner’s capital ac-
B. Banking sector count irrespective of whether the partners
capitals are fixed or fluctuating?
C. Large scale business man
A. Interest on partner’s loan
D. small sized sole traders
B. Additional capital introduced by a part-
874. Every journal entry requires a posting to ner
at least two accounts.
C. Permanent withdrawal of capital by a
A. True partner
B. False D. both (b) and (c)
875. The debts which are to be repaid within 880. The long term assets that have no physi-
a short period of time are known as cal existence but are rights that have value
is known as:
A. Current Liabilities
A. Fixed Assets
B. Fixed Liabilities
B. Current Assets
C. Contingent Liabilities
C. Intangible Assets
D. All of the above
D. Investments
876. Cash paid to Nadeem will affect:(2015)
881. The financial obligation of an enterprise
A. Cash and Owner’s Equity other than owner’s fund is
B. Cash and Creditor A. Liabilities
C. Cash and Debtor B. Assets
D. Cash and Goods C. Capital
D. Drawings
877. Financial position of a business is ascer-
tained on the basis of 882. Gaining ratio is calculated at the time of
A. Journal A. Admission of a partner
B. Trial balance B. Retirement of a Partner
C. Balance sheet C. Dissolution of a partnership firm
D. Ledger D. (d) Both (a) and (c)

1.1 ACCOUNTANCY 89
883. If a partner takes an Assets against his B. 360000

loan, entry is not passed in the book of C. 720000
account.

D. 800000
888. A, B and C share profits and Losses in the

ratio, of 3:2:1. D is admitted for 1/6th
share which he gets from A. New ratio will
be:
A. 2:2:1:1
B. 2:1:2:1
A. TRUE C. 1:1:2:2
B. FALSE D. 2:2:1:3
884. Cash purchases of goods from Anjila 889. Which account is opened to transfer de-
should be debited to ceased partner’s share of profit to his cap-
A. Anju’s A/c ital account.
B. Cash A/c
C. Purchase A/c
D. Goods A/c
885. Main object of preparing a Journal is:

A. To ascertain the financial position of
the business
B. To journalise the cash transactions A. PL Adjustment account
C. To make posting in the ledger B. PL Appropriation account
D. To record the business transactions C. PL Suspense account

first of all D. None of the above
886. Paid Rent results in 890. Super profit =

A. Increase in cash & capital A. Average profit-Normal profit
B. Decrease in cash & capital B. Normal profit-actual profit
C. Increase in cash & Decrease in capital C. Average Profit-capital employed
D. No Effect D. None of the above
887. Mr. X purchased goods worth Rs. 800, 891. Maintenance of books of accounting
000 availing 10% trade discount, the which is often routine and clerical in
seller had promised to give him a 15% if nature-
he pays the whole amount within 14 days, A. Accountancy
on the 7th day he pays 50% of the amount
by cheque? By what amount will Mr. X’s B. Financial Management
Bank A/c be Credited? C. Accounting
A. 306000 D. Book-Keeping

1.1 ACCOUNTANCY 90
892. The reason for the end of the sole propri- 897. Nature of revaluation account is
etorship can be A. Personal account
A. Insolvency B. Nominal account
B. Insanity C. Real Account
C. Death D. None of these
D. All the above 898. In three column Cash Book, when does
contra entry occurs?
NARAYAN CHANGDER
893. ASSETS WHICH CAN BE CONVERTED
INTO CASH WITHIN A PERIOD OF ONE A. Withdrawal of cash from bank
YEAR ARE CALLED? B. Payment to creditors
A. CURRENT ASSETS C. Withdrawal of cash from bank for per-
sonal use
B. FIXED ASSETS
D. all of the above
C. INTANGIBLE ASSET
D. NON CURRENT ASSETS 899. pick the odd one out
A. rent to partner
894. Which of the following best describes a B. manager commission
trial balance?
C. interest on partner loan
A. It shows the financial position of a
business D. interest on partners capital
B. It is a special account 900. Refers to those liabilities which are

to be paid normally with in one year.
C. It shows all the entries in all the jour-
nals A. Current liability
D. It is a list of the total balances for the B. Non Current Liability

books C. Loan
D. Borrowing
895. goodwill which is acquuired by making
payment 901. The art of recording all business transac-
A. inherited goodwill tions in a systematic manner in a set of
books is called-
B. purchased goodwill
A. Accounting
C. none of the above B. Book-keeping
D. none of above C. Ledger
896. When preparing a balance sheet, the D. None of these.
amount of owner’s capital is obtained from 902. Which As is changed from fixed assets to
A. the general ledger property plant and Equipment
B. the work sheet’s balance sheet credit A. 10
column B. 26
C. the income statement C. 4
D. none of these D. 6

1.1 ACCOUNTANCY 91
903. The Balance on the debit side of the bank 908. HOW MANY PARTS DOES A BILL OF EX-
column in Cash Book indicates CHANGE?

A. Total amount withdrawn from the Bank A. 3
B. Total amount deposited in the Bank B. 4
C. Cash at Bank C. 2
D. Bank Overdraft D. none of above

909. The liability of members is only limited to
904. If the new partner brings his share of
the value of shares held by them. this is
goodwill in cash, it will be shared by old
partners in
A. liability limited by shares
A. Sacrificing Ratio
B. limited liability
B. Old profit sharing ratio
C. unlimited liability
C. New profit sharing ratio
D. liability at will
D. Capital Ratio
910. Firm incurs loss int. Captial will be pro-
905. A & B were partners in a firm sharing vided
profits & losses in the ratio of 3:1. With A. True
effect from Jan.1, 2019 they agreed to
B. False
share profit or loss in the ratio of 2:1. Due
to change in profit sharing ratio, B’s gain 911. Ascertain the accounting equation when
or sacrifice will be Mr X started business with cash Rs. 1,
A. Gain 1/12 00, 000
B. Sacrifice 1/12 A. 1, 00, 000 = 0 + 0

B. 0 = 0 + 1, 00, 000
C. Gain 1/3
C. 1, 00, 000 = 0 + 1, 00, 000
D. Sacrifice 1/3
D. 1, 00, 000 = 1, 00, 000 + 0
906. The assets that can be easily converted
into cash within a short period, i.e., 1 year 912. Capital permanently withdrawn comes in
or less are known as which account
A. Capital
A. Current assets
B. Current
B. Fixed assets
C. Both
C. Intangible assets
D. None
D. Investments
913. The following are expenses:
907. Paid Cash for water bill A. Insurance
A. Cash (DR) Water bill (CR) B. Sales
B. Water Bill (CR) Cash (CR) C. Stationary supplies
C. Utilities Expense (DR) Cash (CR) D. Salaries
D. Both are debits E. Fees received

1.1 ACCOUNTANCY 92
914. What amount will the corporation report B. They can be issued for consideration
as the Net Cash Provided by Operating Ac- other than cash
tivities on the cash flow statement? C. They cannot be issued as collateral se-
curity
D. They can be issued partly on credit and
partly in cash
918. Equity shares of Rs 10 each were issued
NARAYAN CHANGDER
A. 225, 000 at 8 % premium to the promoter of a com-
B. 235, 000 pany for their services. Which account will
be debited?
C. 253, 000
A. Share capital a/c
D. none of above
B. Goodwill a/c
915. Which of following is not an intangible C. SPR a/c
assets?
D. Cash a/c
A. Goodwill
919. New partner can be admitted into part-
B. Patents
nership
C. Trade marks
A. With the consent of any one partner
D. Furniture
B. With the consent of majority of part-
916. In the Balance Sheet Total Debtors ap- ners
pear at 50, 000 and provision for Doubt- C. With the consent of all the partners
ful Debts appears at 1, 500. How much
D. With the consent of two third of old
amount will be realized from Debtors, if
partners
bad debts amount to 10, 000 and remain-
ing debtors are realized at a discount of 920. Balance of Partner’s current accounts are
5%?
A. Debit balance
B. Credit Balance
C. Debit or Credit balances
D. Neither Debit nor Credit balances
921. If a shareholder does not pay his dues on

allotment, for the amount due, there will
be
A. 38, 000 A. Credit balance in the share allotment
B. 36, 500 account
C. 35, 575 B. Debit balance in the share forfeiture
account
D. 39, 500
C. Credit balance in the shares forfeiture
917. Which of the following is correct with re- account
spect to debentures D. Debit balance in the shares allotment
A. They can be issued on credit account

1.1 ACCOUNTANCY 93
922. Preliminary expenses include 927. in the value of , in the amount

A. Exp. incurred on preparation & print- of is debited to account-

ing of various documents A. increase, liabilities, increase, assets,
B. duty payable on authorised capital revaluation
C. cost of preliminary expenses B. decrease, assets, increase, liabilities,
revaluation
D. stamp duty & registration fee
C. increase, assets, decrease, liabilities,
E. all of the above partners’ capital
923. contingent liablities will be recorded in D. reduction, liabilities, decrease, assets,
A. balancesheet asset revaluation
B. trading account 928. Which of the Following is False
C. balancesheet liablities A. Debenture is a form of public borrow-
D. profit and loss account ings
B. It is customary to prefix debentures
924. Ram and Shyam are partners in the ratio
with the agreed rate of interest
of 3:2. Before profit distribution, ‘ Ram
is entitled to 5% commission of the net C. Debenture interest is a charge against
profit (after charging such commission). profits
Before charging commission, firm’s profit D. the issue price and redemption value
was |42, 000. Shyam’s share in profit of debentures cannot differ
will be:
929. Which of the following is the most rele-
A. 24000
vant accounting information for taxation
B. 16000 authorities?
C. 26000 A. Cash balance of the firm
D. 16400 B. Book value of the fixed assets
925. A& B are partners in a firm. A’s Caoital is C. Credit sales of the year
|70, 000 & B’s Capital is |50, 000. Firm’s D. Profit generated during the year
profit is |60, 000. A’s share in profit will
be: 930. Net Profit of a firm is |49, 500. Man-
ager is entitled to a commission of 10%
A. |25, 000
on profits before charging his commission.
B. |30, 000 Manager’s commission will be:
C. |35, 000 A. |4, 500
D. |20, 000 B. |4, 950
926. Commercial organization is involved in C. |5, 500
goods and services D. |495
A. Service
931. The analysis of actual movement of
B. Distribution and exchange money inflow and outflow in an organisa-
C. Production tion is called analysis
D. Consumption A. Ratio Analysis

1.1 ACCOUNTANCY 94
B. Cash flow analysis D. common size statement analysis

C. comparative statement analysis
NARAYAN CHANGDER

Accountancy

Uploaded by

Copyright:

Available Formats

You might also like

Accountancy

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Accountancy

Uploaded by

Copyright:

Available Formats

MOST POPULAR AROUND THE WORLD

PRACTICE BOOK» NOT FOR SALE

DESIGNED FOR SURE SUCCESS

JAI SHREE RAM

PRACTICE BOOK» NOT FOR SALE

It is my deepest gratitude and warmest

To my mother JOYTSNA CHANGDER

who has been a constant source of Knowledge and in-

The aim of this publication is to sup-

PRACTICE BOOK» NOT FOR SALE

PRACTICE BOOK» NOT FOR SALE

9. A machinery which cost 200, 000 is depre- B. gross income

8. D 9. B 10. B 11. D 12. D 13. B 14. C 15. B 16. A 17. C 18. B

24. At the time of reconstitution of partner-

C. S. 9 percent annually 27. Manufacturing business houses involve in

C. Cash A/C 34. Final accounts is the stage of account-

PRACTICE BOOK» NOT FOR SALE

A. Revaluation Account C. 30%

32. The example of legal record is B. Over a period of time

B. Partners capital account realisation 44. Accounting process starts with

50. Which account is classified as an income? C. Balance sheet

PRACTICE BOOK» NOT FOR SALE

51. B 52. C 53. B 54. A 55. D 56. C 57. C 58. A 59. C

59. Balance of Purchase Consideration is Deb- C. 155, 000

68. Goodwill at the time of Dissolution of Firm

PRACTICE BOOK» NOT FOR SALE

B. realisation a/c 75. WHICH OF FOLLOWING IS NOT AN AD-

B. Average profit D. TIME CONSUMING

C. Capital profit 76. When the partners decide to dissolve the

70. B 71. C 72. D 73. D 74. D 75. D 76. B 77. A 78. A

78. 7 Trial balance is a 83. Which of the following is not a sub-field of

B. b) Account A. Financial Accounting

C. (c) Ledger B. Book keeping

D. (d) Journal C. Cost Accounting

C. international trade on 30th, Nov 2018. Under the partner-

PRACTICE BOOK» NOT FOR SALE

90. Which of the following equation is correct

D. Assets= Capital-Liabilities C. 30000

90. B 91. D 92. C 93. A 94. C 95. B

96. The portion of the capital which can be B. Business plan

B. 49:21:30 A. Purchases account

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

PRACTICE BOOK» NOT FOR SALE

C. Debenture shareholder 113. Shares may be issued:

A. Accounting 114. In the absence of partnership deed part-

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

128. X, Y and Z are partners sharing profits in B. bank

PRACTICE BOOK» NOT FOR SALE

132. In case of special crossing and the pay-

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

137. All the agreed terms, conditions and pro- B. 346000

B. Debit:Cash, Credit:Accounts Receiv- B. Capital Reserve A/c

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

147. Accounting is required in 153. Which of the following is not an error of

PRACTICE BOOK» NOT FOR SALE

C. credit note A. Yes, partnership

D. pay-in-slip B. No, small business