Competitive Exams: Commerce MCQs (Practice-Test 93 of 99)

  1. Provision for discount on debtors shall be made on

    1. Book debts before incurring bad debt and before providing for bad debt

    2. Book debts after incurring bad debt and after providing for bad debt

    3. Book debts before incurring bad debt but after providing for bad debt

    4. Book debts after incurring. Bad debt but before providing for doubtful debt

  2. When sale is Rs. 4, 80, 000, gross loss is 25% on cost, purchase is Rs. 3, 50, 000 and closing stock is Rs. 60, 000, the stock in the beginning would be:

    1. Rs. 70, 000

    2. Rs. 94, 000

    3. Rs. 1, 34, 000

    4. Rs. 3, 50, 000

  3. Closing stock appearing in trial balance will be taken to

    1. trading account only

    2. balance sheet only

    3. trading account and balance sheet

    4. profit & loss account only

  4. In a trial balance, debtors appear at Rs. 45, 000. Provision for doubtful debts at 5% to be made after considering the following adjustments:

    1. An amount of Rs. 1, 000 is included in debtor who is bankrupt and his estate is expected to realize 50 (fifty) paise in the rupee

    2. Debtors include an amount of Rs. 2, 000 for goods supplied to proprietor.

    3. Bills receivable include a dishonored bill for Rs. 1, 000.

    4. Goods sold in ‘Sale or Return’ basis not approved by the customer for & 5, 000 recorded as sale.

    5. Debtors include an amount of Rs. 500 from a customer whose financial position is doubtful.

    The total provision to be made for doubtful debts is

    1. Rs. l, 900

    2. Rs. 2, 250

    3. Rs. 2, 425

    4. none of the above

  5. In the event of dissolution of a firm, the partners'personal assets are first applied for payment of

    1. the personal liabilities

    2. the firm's liabilities

    3. both the personal and firm's liabilities

    4. the preferential and tax liabilities

  6. ‘A’ and ‘B’ are partners in a business sharing profits in the ratio of 5: 3. They admit ‘C’ as a partner with ¼ share in the profits which he acquires ¾ from ‘A’ and ¼ from ‘B’ He pays Rs. 4, 000 as his share of goodwill. ‘A’ and ‘B’ will be credited by

    1. Rs. 2, 500 and Rs. 1, 500 respectively

    2. Rs. 2, 000 each

    3. Rs. 1, 000 and Rs. 3, 000 respectively

    4. Rs. 3, 000 and Rs. 1, 000 respectively

  7. ‘A’ and ‘B’ who are partners, share profits in the ratio of 7: 3. ‘C’ is admitted as a new partner. ‘A’ surrenders ⅐ of his share and ‘B’ surrenders ⅓ of his share in favor of ‘C’ The new profit sharing ratio will be

    1. 6: 2: 2

    2. 4: 1: 1

    3. 3: 2: 2

    4. none of the above

  8. ‘A’ and ‘B’ are two partners of a firm having capitals of Rs. 15000 and Rs. 5000 respectively, snaring profit and loss in the ratio of 2: 1. On dissolution of the firm the assets realised is: 1st installment Rs. 3000; 2ndinstalment Rs. 5000 Under Proportionate Capital Method, the loss to ‘B’ will be

    1. Rs. 1000

    2. Rs. 2100

    3. Rs. 3000

    4. Rs. 4000

  9. A, B, C, D are partners sharing profit and losses in the ratio 3: 3: 2: 1. The partnership is dissolved and D becomes insolvent. C brings only his share of loss and shows inability to contribute any thing towards D's deficiency. According to Garner Vs Murray ruling. D's deficiency in the total will be shared by

    1. A and B in their capital ratio

    2. A, B and C in their profit sharing ratio

    3. A, B and C in their capital ratio

    4. A, B and C equally

  10. According to Companies Act, “reserve capital” is created

    1. for a specific purpose at any time during its working life

    2. for issue to the existing shareholder as rights issue of shares

    3. as the uncalled portion of share capital of a limited company to be called only in the event of winding up

    4. for conversion of FCDS into equity shares

  11. If a company adopts Table ‘A’ the compare is required to pay interest on calls in advance at the rate of

    1. 8%

    2. 7%

    3. 6%

    4. 5%

  12. Match List I with List II and select the correct answer:

    List-I (Items of balance sheet) List-II (Heading of balance sheet)
    1. Profit prior to Incorporation

    2. Proposed dividend

    3. Interest paid out of Capital

    4. Unclaimed dividend

    1. Provisions

    2. Miscellaneous expenditure

    3. Current liabilities

    4. Reserves and Surplus

    • A
    • B
    • C
    • D
      • 4
      • 1
      • 3
      • 2
      • 4
      • 1
      • 2
      • 3
      • 1
      • 4
      • 2
      • 3
      • 1
      • 4
      • 3
      • 2
  13. Amount set apart to meet probable losses on account of bad debts is a

    1. liability

    2. reserve

    3. provision

    4. contingent liability

  14. Which one of the following is NOT a current Liability?

    1. Acceptances

    2. Local installment payable in the current year

    3. Temporary bank overdraft

    4. Arrears of preference dividend

  15. Consider the following statements: Redeemable preference shares can be redeemed out of

    1. sale proceeds of the new issue of shares.

    2. Sale proceeds of the new issue of debentures.

    3. profits available for dividends.

    4. Sales proceeds of the assets of the company.

    Of these statements:

    1. 1 and 3 are correct

    2. 1 alone is correct

    3. 2, 3 and 4 are correct

    4. 1, 2, 3 and 4 are correct