ICAR NET (UG/PG): Commerce MCQs (Practice_Test 75 of 99)

Dr. Manishika Jain- Join online Paper 1 intensive course. Includes tests and expected questions.

  1. A building standing in the books at ₹ 30,000, was sold for ₹ 45,000. The gain on the sale of building was transferred to profit and loss account thus taking the net profit to ₹ 1,70, 000. The fund from operation will be
    1. ₹ 2,15, 000
    2. ₹ 1,70, 000
    3. ₹ 1,55, 000
    4. ₹ 2,00, 000
  2. Match List I with List II and select the correct answer
    List-IList-II
    1. Leasehold property
    2. Mines, quarries, etc.
    3. The interest lost on the
    4. To provide for replacement
    1. Depreciation fund method
    2. Annuity method
    3. Fixed instalment method acquisition of an asset
    4. Depletion method of asset at the end of its useful life
    • A
    • B
    • C
    • D
      • 2
      • 1
      • 4
      • 3
      • 3
      • 4
      • 1
      • 2
      • 3
      • 4
      • 2
      • 1
      • 4
      • 3
      • 1
      • 2
  3. Following are the extracts from the Trial Balance of a firm: Particulars Dr (₹) . Cr (₹) . Sunday debtors 50,000-Provision for doubtful debts-5,000 Bad debts 3,000-Additional information
    1. Additional bad debts ₹ 3,000
    2. Keep the provision for bad debts@10 % on debtors

    The net amount of bad debts that will appear in the Profit and Loss Account will be

    1. ₹ 8,000
    2. ₹ 7,500
    3. ₹ 5,700
    4. ₹ 4,500
  4. A and B sharing profits in the ratio of 3: 2 and having capitals of ₹ 30,000 and ₹ 15,000 respectively decided to dissolve the firm. After paying off all liabilities, cash realised from various assets is ₹ 15,000. This amount will be distributed between A and B as
    1. ₹ 9,000 and ₹ 6,000 respectively
    2. ₹ 10,000 and ₹ 5,000 respectively
    3. ₹ 7,500 and ₹ 7,500 respectively.
    4. ₹ 12,000 and ₹ 3,000 respectively
  5. A, B and Care partners sharing profits in the ratio of 6: 3: 1. They decided to dissolve the firm when their capitals were ₹ 8,000, ₹ 3,000 and ₹ (-) . 1,000 respectively. Other liabilities and assets were-Bank overdraft ₹ 3,500. A՚s advance to the firm ₹ 500; sundry creditors ₹ 2,500; plant and machinery ₹ 7,500; stock in trade ₹ 2,500; sundry debtors ₹ 6,000 and cash ₹ 500. Plant and machinery realised at. 20 % less, stock in trade at 25 % less and sundry debtors at 30 % less than their respective book value. Expenses of dissolution amounted to ₹ 250. C became insolvent and his private estate yielded ₹ 100 only. What is the loss on realisation?
    1. ₹ 4,125
    2. ₹ 4,150
    3. ₹ 4,175
    4. ₹ 4,225
  6. A, Band Care the partners in a business firm sharing their profits in the ratio of 4: 3: 2. A new partners D enters the firm. The new profit sharing of A, B, C and D is 5: 4: 2: 1. D contributes a goodwill of ₹ 36,000. This goodwill is to be allocated among A, B and C. Which one of the following will be the correct allocation?
    1. 16, 000 12,000 8,000
    2. 12, 000 8,000 16,000
    3. 12,000 Nil 24,000
    4. 24,000 Nil 12,000
  7. A, Band Care equal partners in a firm with capital of ₹ 16,800, ₹ 12,600 and ₹ 6,000 respectively. With bills payable ₹ 3,300; creditors ₹ 6,000; cash ₹ 600; debtors ₹ 10,800; stocks Ps. 11,400; furniture ₹ 2,400 and building ₹ 19,500. E is admitted to the firm and brings ₹ 9,000 as goodwill and ₹ 15,000 as capital. Half the goodwill is withdrawn by old partners, and stock and furniture is depreciated by 10 % . A provision of 5 % on debtors is created and value of building is taken at ₹ 27,000. The profit on revaluation will be
    1. ₹ 5,500
    2. ₹ 5,580
    3. ₹ 5,400
    4. ₹ 5,680
  8. A and Bare partners in a firm sharing profits in the ratio of 3: 2. They admit C as a new partner for share in the profits of the firm. The new profit sharing ratio of A, B and C is
    1. 3: 2: 1
    2. 3: 2: 2
    3. 3: 2: 3
    4. 6: 4: 5
  9. Some companies give cash flow statements in their annual reports as prescribed by
    1. Part IV of Schedule VI to the Companies Act, 1956
    2. the listing agreement with the stock exchanges
    3. the SEBI regulations
    4. the Accounting Standard-3 on cash flow statements
  10. Under the net worth method, the basis of ascertaining profit is the
    1. difference between the liabilities on two dates
    2. difference between the gross assets on two dates
    3. difference between the capital on two dates
    4. increase in net worth before adjusting for drawings and additions to capital
  11. A non-performing asset with a financial institution denotes an asset on which
    1. regular dividend is not being received
    2. interest is on default for two quarters or more
    3. repayment of capital appears difficult
    4. there is no earning of profit
  12. Consider the following statements: Redeemable preference shares of a company can be redeemed out of
    1. profits of the company which would otherwise be available for dividend
    2. company՚s share premium account
    3. fresh issue of shares made for the purpose of redemption

    Which of the above statements are correct

    1. 1 and 2
    2. 1 and 3
    3. 2 and 3
    4. 1,2 and 3
  13. A company forfeited 100 shares of ₹ 10 each owing to the default in the payment of share call money of ₹ 5 each. These shares were issued at ₹ 9 each, payable at ₹ 2 on application, ₹ 2 on allotment and the balance of ₹ 5 on call. The shares were then reissued to another shareholder at a price of ₹ 6 per share. The amount to be debited to forfeited shares account on account of discount on reissue of shares would be
    1. ₹ 100
    2. ₹ 300
    3. ₹ 400
    4. ₹ 500
  14. The issue of bonus shares must be in accordance with the guidelines issued by the
    1. Company Law Board
    2. Controller of capital issues
    3. Securities and Exchange Board of India
    4. Registrar of Companies
  15. Consider the following statements: A low inventory turnover may be the result of
    1. obsolescence of some of the stock
    2. slow-moving inventory
    3. frequent stock-outs
    4. fast-moving inventory

    Which of the above statement (s) is/are correct?

    1. 1 and 2
    2. 4 alone
    3. 2 alone
    4. 2 and 3

Developed by: