Competitive Exams: Commerce MCQs (Practice-Test 33 of 99)

  1. Interim payments to partners of a dissolved partnership firm are made according to the

    1. Assumption that remaining unrealized assets would be able to realize their book value

    2. Balances of capital of the partners

    3. Existing profit-sharing ratios of the partners

    4. Assumption that the realizable value of the remaining assets is zero

  2. A, B and C are partners in a business sharing profits at the ratio of 2: 2: 1. C dies on 31.3. 94. The profits for the financial year 93 − 94 (April-March) is Rs. 64, 000. The share of the deceased partner in the profits for the year will be rupees

    1. 12, 800

    2. 9, 600

    3. 6, 400

    4. 3, 200

  3. Consider the following balance sheet as on 1.1. 94

    Liabilities (Rs. )

    Assets (Rs. ) 300 12, 350 350 1, 000 11, 000 300

    Salaries Outstanding XXXX 12, 650

    Cash Furniture Books & buildings Subscriptions outstanding 12, 650

    In the above Balance Sheet, the missing narration

    XXXX is

    1. Capital

    2. Capital fund

    3. Profit for the year

    4. Reserve fund

  4. Match List I (Financial Statements and Accounts) with List II (Special matters associated with Statements and Accounts) and select the correct answer using the codes given below the lists:

    List-I List-II
    1. Receipts and Payments Account

    2. Income and Expenditure Account

    3. Dividend Equalisation Reserve

    4. Club subscription received in advance account

    1. Revenue

    2. Cash

    3. Liability

    4. Balance Sheet

    5. General Reserve

    • A
    • B
    • C
    • D
      • 2
      • 1
      • 4
      • 3
      • 3
      • 2
      • 4
      • 5
      • 2
      • 1
      • 5
      • 3
      • 1
      • 2
      • 4
      • 5
  5. Profit under single entry system of Book Keeping means

    1. the difference between opening and closing cash balances as reduced by fresh capital introduced

    2. the difference between opening net assets and closing net assets as increased by drawings and reduced by new capital introduced

    3. profit shown by Trading and Profit and Loss Account and Balance Sheet

    4. the amount of closing cash balance as reduced by expenses

  6. Given that Opening Capital: Rs. 5, 000 Closing Capital: Rs. 6, 000 Drawings: Rs. 1, 000 New Capital invested: Rs. 500 The profit for the year will be

    1. Rs. 2, 000

    2. Rs. 1, 500

    3. Rs. 1, 000

    4. Rs. 500

  7. Which of the following are prepared by the organizations keeping only incomplete accounting records

    1. Cash Book

    2. Customers Accounts

    3. Expenses Accounts

    4. Day Books

    Choose the correct answer using the codes given below:

    Codes

    1. 1, 2 and 3

    2. 1, 2 and 4

    3. 1, 3 and 4

    4. 2, 3 and 4

  8. Which one of the following statements is INCORRECT?

    1. Share premium received on issue of shares can be utilized for writing off the preliminary expenses of the Company

    2. Capital Redemption Reserve is available only for issuing fully paid bonus share

    3. Discount on issue of shares is shown as a reduction from Capital Account in the Balance Sheet

    4. At the time of Rights issue, the existing shareholders gain because the shares are generally issued at a price lower than the market price

  9. The Directors of a Limited Company resolved to forfeit 1, 000 equity shares of Rs. 10 each, Rs. 7.50 paid up, for nonpayment of the final call money of Rs. 2.50 per share. 700 of these shares were reissued at Rs. 7 per share. The amount to be transferred to the Capital Reserve Account would be

    1. Rs. 2, 500

    2. Rs. 3, 150

    3. Rs. 3, 500

    4. Rs. 3, 750

  10. The nominal and book value of Sinking Fund Investments Account are respectively Rs. 1, 00, 000 and Rs. 6, 000. The company has sold investments, of the nominal value of Rs. 20, 000 at a price that was sufficient to redeem the debentures of Rs. 20, 000 at Rs. 102. The profit on sale of investments is

    1. Rs. 800

    2. Rs. 1, 000

    3. Rs. 1200

    4. nil

  11. A company's Balance Sheet inter alia contains Rs. 1, 60, 000 fully paid 10% redeemable preference shares, Rs. 1, 000 as share premium and Rs. 1, 3 1, 000 as Revenue Reserves. It resolves to immediately redeem the above-mentioned shares at 5% premium by maximum utilization of earnings from fresh issue. If the issue is made at 20% premium, the MINIMUM amount of fresh equity issue proceeds will be

    1. Rs. 28, 800

    2. Rs. 32, 000

    3. Ps. 36, 000

    4. Rs. 37, 000

  12. The following accounting entries are required in connection with the allotment of shares of a Company

    1. Adjustment entry in respect of the discount allowed, if any, on the issue of shares

    2. Transfer entry for the application money received on shares allotted

    3. Adjustment entry for the excess application money, if any, being adjusted against the allotment money due

    The correct sequence of these entries is

    1. 1, 2, 3

    2. 2, 1, 3

    3. 2, 3, 1

    4. 3, 2, 1

  13. What is the correct sequence of the following functionaries/authorities in the life of a company?

    1. Board of Directors

    2. Promoters

    3. Registrar of Companies

    4. Underwriters

    5. Liquidators

    Select the correct answer using the codes given below

    Codes:

    1. 1, 2, 3, 4, 5

    2. 2, 1, 3, 4, 5

    3. 5, 4, 1, 3, 2

    4. 2, 4, 1, 3, 5

  14. Depreciation Accounting is a process of

    1. allocation of cost

    2. valuation of assets

    3. provision for replacement of assets

    4. estimation of net profit

  15. When shares are forfeited, called up amount on shares is debited to

    1. Forfeiture Account

    2. Capital Reserve Account

    3. General Reserve Account

    4. Capital Account