Financial Accounting
Chapter 1 : Accounting Terminology
MCQ
1 (b) Liability 2 (a) Assets 3 (c) Capital 4 (c) Profit and Loss Account (Credit Balance) 5 (c) Patents 6 (a) Current Liability 7 (d) Preliminary expenses A/c 8 (d) Not an asset 9 (a) Liabilities which are payable within 12 months 10 (d) Intangible Assets 11 (b) Long term assets where benefit in the operations of the firm is likely to extend beyond one accounting period 12 (d) Lease Rights 13 (c) Current Assets 14 (d) All of the above 15 (b) Livestock 16 (a) Goods for resale 17 (b) Debtor 18 (a) Creditor 19 (a) Debtors 20 (a) Current assets
M.Com (Entrance)
1 (b) Liability 2 (c) By way of deduction from capital in Balance Sheet 3 (b) Assets 4 (c) Inventory 5 (a) Assets 6 (b) An assets and a liability 7 (b) Plant and Machinery
PGT – Commerce
1 (a) Liabilities 2 (c) Liabilities 3 (c) Assets 4 (a) An Assets
UGC N.E.T
1 (d) Long Term Loans 2 (b) (iv)
MPhil PhD in Commerce
1 (b) An assets and a liability
Chapter 2 : Rules of Double Entry Book–Keeping
MCQ
1 (a) Luca Pascioli 2 (d) Italy 3 (a) 15th century 4 (a) Two accounts 5 (b) (Current Assets + Fixed Assets – (Current liability + Long term liability) 6 (b) Rs. 1,65,000 7 (d) Rs. 10,000 8 (c) Total Assets increased by Rs. 8,00,000 & Total Liability increased by Rs. 8,00,000 9 (a) Rs. 1,70,000 10 (c) Rs. 2,30,000 11 (d) Nil 12 (c) Rs. 6,60,000 13 (a) Rs. 1,20,000 14 (b) Rs. 5,40,000 15 (c) Assets will increase by Rs. 7,000 with corresponding increase in liability by Rs. 7,000 16 (a) Rs. 1,20,000 17 (b) Rs. 2,60,000 18 (d) Reduce the Cash as well as Capital of business 19 (c) Result in no change in the Total Assets 20 (c) Results in no change in the Total Assets 21 (a) Total Liabilities
PGT – Commerce
1 (c) Capital will increase and decrease with the same amount 2 (a) Rs. 80,000 3 (b) Payment of Dividends and unprofitable operations 4 (c) 1494 5 (b) 2,50,000
M.Com (Entrance)
1 (c) Decrease in one assets, decrease in other 2 (c) Decrease an assets and decrease a liability 3 (d) Decrease assets and decrease liabilities 4 (c) Both (a) & (b) 5 (c) Fra luca picioli
UGC N.E.T
1 (c) Assets + Liability = Equity 2 (d) Total Assets minus total outside Liabilities 3 (c) Capital + Liabilities = Assets
Chapter 3 : Classification of Accounts
MCQ
1 (a) Outstanding Salary A/c 2 (a) Outstanding Salary A/c 3 (d) Cash at Bank 4 (a) Personal Account 5 (b) Only (iii) above 6 (a) Bank Account is a Personal Account 7 (b) Artificial Personal A/c 8 (c) Nominal A/c 9 (b) Personal A/c 10 (b) Personal A/c 11 (d) Creditor 12 (c) Nominal Account 13 (a) Decrease in assets account 14 (c) Nominal Account
M.Com (Entrance)
1 (c) Personal A/c 2 (a) Personal account 3 (a) Nominal A/c 4 (a) Increase in assets account 5 (b) Net Sales
PGT – Commerce
1 (b) Nominal account
UGC N.E.T
1 (c) Personal Account 2 (b) Nominal Account
Chapter 4 : Accounting Process Journal
MCQ
1 (a) Journal 2 (d) Summarizing 3 (d) Trial Balance 4 (a) Book of original entry 5 (a) Principal Book 6 (a) Journal Voucher 7 (a) Debit Note 8 (b) Credit Note 9 (a) Debit Note 10 (b) 5 11 (b) Book of original entry 12 (a) (a) Chronological manner 13 (a) Each journal entry 14 (d) Is not recorded in Books of Accounts 15 (a) Boost sales 16 (c) Debiting Drawings A/c ; Crediting Stock A/c 17 (b) Capital Reserve A/c 18 (c) Both (ii) and (iii) above 19 (b) Bad debts recovered
MCQ (NEW Book)
1 (a) 2 (d) 3 (d) 4 (a) 5 (a) 6 (a) 7 (a) 8 (a) 9 (b) 10 (a) 11 (b) 12 (b) 13 (a) 14 (a) 15 (d) 16 (a) 17 (c) 18 (b) 19 (c) 20 (b)
PGT – Commerce
1 (a) Source Document 2 (a) Debit Note 3 (d) Credit Note
M.Com (Entrance)
1 (b) Machinery Account 2 (a) Prepaid Insurance 3 (c) To have a chronological record of all transactions 4 (c) (i) (iii) & (iv) 5 (a) Capital Reserve
UGC N.E.T
1 (a) Increase in Liabilities are credits and decrease are debits
Chapter 5 : Ledger
MCQ
1 (c) T 2 (c) 2 3 (d) 8 4 (b) Debit Balance 5 (a) Folio 6 (c) Ledger 7 (d) Ledger Posting 8 (a) Principals book of accounts 9 (c) Entering in the ledger the information contained in the journal 10 (a) Only debit entries 11 (d) Debit or credit balance 12 (c) Prepaid Insurance Premium 13 (b) A Revenue or a Liability 14 (c) An Expenses or an Assets 15 (b) Amount payable 16 (d) Amount Receivable 17 (c) Income 18 (c) Expenses 19 (d) Debit or credit balance 20 (d) Debit or credit balance 21 (a) Rs.20,400 22 (a) Rs.51,400 23 (a) Rs.2,35,000 24 (a) Rs.14,000 25 (a) Rs.35,000 26 (a) Rs.20,000 27 (a) Rs.1,20,000 28 (a) Rs.25,000 29 (a) Rs.1,75,000 30 (a) Rs.51,400
PGT – Commerce
1 (c) Posting
UGC N.E.T
1 (c) Rs. 10,000
Chapter 6 : Trial Balance
MCQ
1 (c) Summary 2 (b) Positional Statement 3 (a) Trial Balance 4 (d) All of these 5 (a) Trial Balance 6 (c) Arithmetical 7 (a) Locating clerical errors 8 (a) Net Trial Balance 9 (d) All accounts 10 (a) A particular date 11 (b) Suspense Account 12 (d) Trade Receivable and Liability 13 (a) Trading Account 14 (c) Balance Sheet 15 (c) It is adjusted in the Purchases A/c 16 (b) Profit and Loss A/c 17 (c) Balance Sheet 18 (c) Assets Side of Balance Sheet 19 (d) Liability Side of Balance Sheet 20 (a) Expenses side of Profit and Loss A/c
PGT – Commerce
1 (b) Partial omission of an entry
M.Com (Entrance)
1 (a) Shown on the Liability side of the Balance Sheet 2 (c) It proves that no errors have been made in recording transactions, if it balances
Chapter 7 : Subsidiary Books
MCQ
1 (c) Debtors journal 2 (b) Debit of Sales Return Account 3 (d) Journal Proper 4 (c) Stock that customers have returned 5 (c) All such transactions for which no special journal has been kept by the business 6 (c) Only credit purchase of raw material or goods purchased for resale 7 (b) Only (iv) above 8 (b) Returns Outward Book 9 (a) General Journal 10 (a) Sales A/c 11 (b) Purchase A/c 12 (b) At the time of closing the accounts 13 (c) Purchases account and supplier’s account 14 (c) Cash Book is a subsidiary book as well as a ledger 15 (b) They transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account 16 (b) All credit purchases of goods 17 (c) Journal Proper 18 (b) Purchase return book 19 (b) Journal Proper (General Journal)
PGT – Commerce
1 (b) Cash Book
M.Com (Entrance)
1 (c) Journal Proper
UGC N.E.T
1 (d) Assets Book
Chapter 8 : Cash Book
MCQ
1 (b) Ledger 2 (b) All types of cash receipts and payments 3 (a) Discount Column 4 (d) Contra Entry 5 (b) Three-column Cash Book is prepared 6 (c) Debit side of Discount Account 7 (b) Posted to Discount Allowed A/c 8 (c) Nowhere in the Cash Book 9 (d) Nowhere in the Cash Book 10 (b) It verifies the arithmetic accuracy of posting of entries from the Journal to the Ledger 11 (d) Both (iv) and (v) above 12 (d) Both (i) and (iii) above 13 (c) Cash column 14 (c) Petty cash column 15(c) Salary remained outstanding
PGT – Commerce
1 (d) Bank and cash account in the ledger
M.Com (Entrance)
1 (b) Cash in hand 2 (c) Credit balance of Bank Pass Book is an overdraft
Chapter 9 : Rectification of Errors
MCQ
1 (b) Error of principle 2 (c) The total of the sales journal has not been posted to the Sales Account 3 (d) Both (b) and (c) above 4 (b) Omission of a transaction from a subsidiary record affects only one account 5 (d) Errors of commission arise when any transaction is recorded in a fundamentally incorrect manner 6 (c) The total of purchase journal has not been posted to the Purchase Account 7 (d) (i),(ii) and (iv) above
M.Com (Entrance)
1 (c) Error of posting 2 (b) Decrease in gross profit
UGC N.E.T
1 (d) (a)-(ii), (b)-(iii), (c)-(i), (d)-(v)
Chapter 10 : Meaning and Scope of Accounting
MCQ
1 (a) Recording of financial data. 2 (d) (a) and (b) Both 3 (a) An event 4 (d) Book – Keeping. 5 (d) Ledger posting 6 (c) Accounting reports 7 (d) Assets and liability expressed in non-monetary terms. 8 (a) Accounting 9 (a) Accounting Principal Board 10 (c) Is a recording technique of the management related transaction 11 (b) Competitive advantages 12 (d) Both transaction as well as event 13 (d) Inflation Accounting 14 (d) All of the above 15 (d) Cost of production 16 (b) Transaction 17 (d) Solving tax disputes with tax authorities 18 (b) An event 19 (b) An event 2017 (d) Solving tax disputes with tax authorities
PGT – Commerce
1 (b) Timeless
M.Com (Entrance)
1 (c) Reporting financial information for external users of accounting reports 2 (d) Dictate the specific types of business enterprise transactions that the enterprises may engaged in. 3 (c) It is factual, so it does not require judgment to prepare 4 (b) Management 5 (b) Is an end rather than a means to an end 6 (d) All of the above are important reasons 7 (b) Business transactions 8 (c) To provide information about the users of an entity’s financial statements
UGC N.E.T
1 (b) Both (A) and (R) are correct 2 (c) (a) and (d)
Chapter 11 : Accounting Concepts, Principles and Conventions
MCQ
1 (c) Separate Entity 2 (a) Cost 3 (c) Cost Concept 4 (d) Both (a) and (b) above 5 (a) Cost Concept 6 (d) Both (a) and (b) above 7 (d) Materiality 8 (c) Accounting Period Concept 9 (c) Materiality Concept 10 (d) Money Measurement Concept 11 (b) Conservatism Concept 12 (b) Going Concern Concept 13 (c) Accrual Concept 14 (b) Rs. 40,000 15 (a) Rs. 300 as Prepaid 16 (c) Rs. 11,50,000 17 (c) Business Entity Concept 18 (d) Liquidation Value 19 (b) Creating Provision for Discount on Creditors 20 (c) Provision for bad and doubtful debts is created in recognition of conservatism concept
PGT – Commerce (NEW Book)
1 (b) Convention of disclosure 2 (a) Suggest the companies to prepare financial statements on the basis of a systematic time interval, even though the operating cycle(s) of the entity may be incomplete
PGT – Commerce (OLD Book)
2 (b) 3 (a)
M.Com (Entrance)
1 (a) Understatement of assets 2 (d) Entity Concept 3 (a) Convention of full disclosure 4 (c) By Joint Venture Firms 5 (b) Business entity 6 (a) Convention of full disclosure 7 (c) Accrual basis and Double entry system 8 (b) Associating effort (cost) with accomplishment (revenue) 9 (a) Goodwill 10 (b) Conservatism 11 (d) Going Concern 12 (c) Conservation 13 (*) 14 (b) Accrual basis 15 (c) After it has been earned , but not before 16 (c) Matching Concept 17 (b) Leads to the reporting of more complete information than does cash basis accounting 18 (c) Consistency 19 (a) Conservatism principle 20 (a) Conservatism principle
UGC N.E.T
1 (d) Separate Entity 2 (c) (a)-(iii), (b)-(iv), (c)-(i), (d)-(ii) 3 (c) Separate Entity 4 (d) (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii) 5 (c) True and Fair concept 6 (a) Certain assumptions 7 (d) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i) 8 (c) Convention of Disclosure 9 (a) Taking care of the future losses 10 (d) Prudence 11 (c) Conservatism 12 (a) (a)-(iv), (b)-(ii), (c)-(iii), (d)-(i) 13 (b) Business entity concept 14 (b) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i) 15 (b) Dividend received on investment
Chapter 12 : Accounting Standard – Concepts, objectives, Benefit
MCQ
1 (a) Companies 2 (c) Both (a) and (b) 3 (b) AS 10 4 (b) Cannot over-ride 5 (a) Is replaced by AS – 26 6 (d) All of the above 7 (b) Valuation of inventories 8 (b) Accounting standards 9 (d) 26 10 (a) Corporate bodies 11 (d) All the three 12 (c) Financial Investment Recognition & Measurement 13 (b) Institute of Chartered Accountants of India 14 (c) Royalties receivable
PGT Commerce
1 (a) Amalgamation
M.Com (Entrance)
1 (d) International Accounting Standards Board 2 (d) Revenue arising from sale of goods and rendering of services. 3 (a) Define accounting practice at a time 4 (d) Depreciation accounting
UGC N.E.T
1 (a) AS 11 2 (d) 1977
Chapter 13 : Accounting Policies
MCQ
1 (d) All of the above 2 (d) All of the above 3 (d) All of these 4 (a) Going concern 5 (a) The Financial Statement 6 (b) Understate / Overstate the performance and financial position of a business entity 7 (c) Amount involved 8 (c) Adopting double Entry system of accounting in place of Single Entry 9 (a) Be suitable disclosed 10 (d) All of the above 11 (c) Both (a) and (b)
M.Com (Entrance)
1 (a) Are prescribe by AS 1 2 (c) Can be changed if other policy is more appropriate
Chapter 14 : Capital and Revenue Expenditure and Receipts
MCQ
1 (c) Capital Loss 2 (a) Revenue Loss 3 (d) Maintenance of the Asset 4 (d) First statement is not correct but second is correct 5 (a) Capital Expenditure 6 (a) Capital expenditure 7 (a) Revenue expenditure (Even though the amount is large) 8 (c) Cost of stand by equipment 9 (c) Deferred revenue Expenditure 10 (c) Deferred Revenue 11 (d) Nature of expenditure 12 (b) Machinery A/c 13 (c) Nil 14 (d) Rs. 10,70,000 15 (c) Revenue Expenditure 16 (c) Revenue Receipt 17 (b) Capital expenditure 18 (b) Repairs A/c 19 (a) Miscellaneous Expenditure 20 (a) Rs. 5,60,000
PGT Commerce
1 (c) Rs, 5,000 paid for erection of a new machine 2 (a) Revenue expenditure
M.Com (Entrance)
1 (a) Revenue Receipt 2 (b) Non-recurring profits
UGC N.E.T
1 (b) a capital expenditure 2 (a) Capital Expenditure 3 (c) Capital expenditure affects the profitability of a concern indirectly but revenue expenditure affects directly 4 (a) Capital Expenditure 5 (a) Capital expenditures 6 (a) Revenue Expenditure 7 (b) Expenses on a mega advertisement campaign while launching a new product.
Chapter 15 : Depreciation Accounting
MCQ
1 (c) Fall in market demand 2 (b) Excess charging of depreciation every year 3 (d) 8% 4 (b) W. D. V. Method 5 (a) Debit Profit & Loss A/c…….Rs. 79,500; Credit provision for depreciation A/c Rs. 79,500 6 (d) Debit provision for depreciation A/c …….. Rs. 79,500; Credit Profit and Loss A/c Rs. 79,500 7 (d) 30 % 8 (a) Machinery A/c 9 (c) Capital Loss of Rs. 1,00,000 10 (d) 7.5 % 11 (b) Rs.1,22,500 12 (c) Profit & Loss A/c 13 (d) Loss on sale of machinery transferred to P & L A/c 14 (c) Equal in the first year & more in subsequent years 15 (b) Land 16 (a) Depreciation 17 (c) Allocation 18 (b) Depreciation provided reversed to the extent of Rs. 4,000 19 (b) Rs. 100 20 (c) Loss Rs. 720 21 (a) Rs. 10,000 22 (c) Profit & Loss Account 23 (b) Debited to Revaluation Reserve A/c
PGT Commerce
1 (b) 8% 2 (b) Rs. 80,000 3 (c) Straight Line Method of Depreciation is followed to have a uniform charge for depreciation and Repairs and Maintenance together 4 (b) Double Decline balance 5 (b) Land 6 (b) Loss of Rs. 15,000
M.Com (Entrance)
1 (b) Rs.50,000 2 (c) Written –down value method 3 (a) Assets are more efficient in early years and initially generate more revenue 4 (d) It is an accounting process which allocates long lived asset cost to accounting periods 5 (c) Reasonable and necessary costs incurred to prepare the asset for use 6 (c) Amortization 7 (b) Rs.32,000 8 (b) Rs.20,000
UGC N.E.T
1 (c) Life of land is unlimited 2 (b) Diminishing balance method
Chapter 16 : Inventory Valuation
MCQ
1 (b) Rs. 2,50,000 2 (a) Excluding the goods from calculating inventory 3 (a) Rs.1,30,000 4 (c) Rs.5,25,000 5 (a) Rs.68,400 6 (d) Rs.84,000 7 (c) 3,45,000 showing loss by fire in footnote 8 (c) Cost or net Realizable Value whichever is lower 9 (b) LIFO and Weighted Average Cost Method 10 (a) Absorption costing 11 (d) Item by Item Method or Group of Items Method 12 (e) At net realizable value 13 (e) At net realizable value 14 (b) Reported profit rise due to lower cost of goods sold 15 (d) Opening stock plus purchases minus cost of goods sold is the value of closing stock 16 (a) FIFO 17 (b) LIFO 18 (a) FIFO 19 (b) LIFO 20 (d) Purchases – Closing Stock + Opening Stock
M.Com (Entrance)
1 (a) Simple average price method 2 (b) Lower profit 3 (b) Falling prices 4 (c) Current replacement cost 5 (c) FIFO 6 (A) FIFO 7 (a) FIFO 8 (c) Market Value 9 Delete by Delhi University 10 (d) First to be allocated to the cost of goods to sold
PGT – Commerce
1 (b) FIFO
UGC N.E.T
1 (c) Simple average method
Chapter 17 : Provision and Reserve
MCQ
1 (c) Dividend equalization Reserve 2 (d) Provision for bad debts 3 (a) General Reserve 4 (b) Capital Reserve 5 (d) General Reserve
PGT – Commerce
1 (b) Revenue Profit
Chapter 18 : Final Accounts
MCQ
1 (c) A.S. – 2 2 (a) Net Sales and Cost of goods sold 3 (a) Profit and loss account 4 (d) Cost price or Market price whichever is lower 5 (d) Postage & Stamps 6 (a) Rs. 39,500 7 (c) Rs. 2,40,000 8 (d) Rs. 950 9 (b) Rs. 1,85,000 10 (a) Rs. 56,580 11 (d) Both (b) and (c) above 12 (c) Gross Profit + Opening Stock + Direct expenses + Purchases – Closing stock = Sales 13 (d) Net Profits as disclosed by P&L Account is not absolute 14 (a) Financial results of the concern for a period 15 (c) Net Profit + Depreciation and provision 16 (a) Drawings 17 (b) It must be shown in Profit & Loss account 18 (a) Credited to P & L A/c 19 (d) Decrease, Decrease 20 (c) Rs. 3,900 21 (c) Rs. 93,000 22 (c) Rs.2,300 23 (d) Rs. 3,500 24 (a) Rs. 1,045 25 (d) Rs.21,344 26 Rs.40,000 27 Rs.2,000 28 (a) Rs. 35,200 29 (a) Rs. 52,800 30 (d) Rs. 26,000 31 (b) Rs. 30,000 32 (b) Rs. 35,000 33 (b) 25 % 34 (b) Overstated by Rs. 45,000 35 (a) Rs. 9,000 36 (b) Rs. 83,000 37 (c) Rs. 68,750 38 (c) Rs. 3,300 39 (c) Rs. 15,000 40 (a) Rs. 5,400
PGT Commerce
1 (d) Operating Profit = Net profit + Non-Operating Expenses – Non-operating Incomes 2 (b) Presented in the Balance Sheet as an asset 3 (c) Rs. 14,750 4 (a) Rs. 60,000 5 (b) Real Account 6 (d) Salesmen Commission 7 (d) All of the above 8 (b) Abnormal loss 9 (c) Operating Profit = Net profit + non-operating expenses – non-operating incomes 10 (c) Profit and Loss Account 11 (c) Rs.1,ooo (credit) 12 (b) Rs.25,000
M.Com (Entrance)
1 (c) Liability side of Balance Sheet 2 (b) Total Debtors Account 3 (a) Profit and Loss A/c 4 (d) Capital receipts 5 (d) All receipts and payments whether capital or revenue 6 (a) Rs. 36,000 7 (a) 16.67 % of sales price 8 (b) Profit and Loss Account 9 (b) II, I, III, IV 10 (d) Treating capital expenditure as revenue expenditure 11 (a) Income Statement 12 (b) Obtain a true debtors’ figure for the balance sheet 13 (a) Rs. 546 14 (b) Current assets 15 (c) Rs.10,00,000
UGC N.E.T
1 (d) Profit 2 (a) Financial position of a business on a particular day 3 (d) 1, 2 and 4 4 (b) (ii), (iv), (iii), (i) 5 (c) (ii), (i), (iv), (iii) 6 (c) Rs. 68,000 7 (a) (i) and (ii) 8 (b) Non-Trading concerns 9 (a) Both (A) and (R) is correct
Chapter 19 : Introduction to Partnership Accounts
MCQ
1 (c) 50 2 (b) Does not have a legal existence, apart from its partners 3 (a) Prima facie evidence of partnership 4 (b) Conclusive evidence of partnership 5 (a) Will not be allowed 6 (b) Will be allowed @ 6% p.a. 7 (a) Will not be charged 8 (b) Interest on partner’s loan/advance 9 (d) Allowed at 6 per cent p.a. 10 (c) Interest on loan and advances 11 (d) Permitted, Investor 12 (d) 6% p.a. Simple interest 13 (b) Equally 14 (b) For partnership Firm 15 (e) (b) & (d) 16 (e) (a) & (c) 17 (b) No 18 (b) An appropriation 19 (a) Rs. 1,720 to A and Rs. 1,720 to B 20 (c) Rs. 27,500 21 (c) Rs. 2,500 22 (a) Revenue 23 (c) Either ‘a’ or ‘b’ 24 (d) Rs. 1,12,000 25 (d) All of these 26 (a) Rs. 29.75 27 (a) Ram Rs. 180 and Mohan Rs. 120 28 (d) 6.5 months 29 (b) 5.5 months 30 (a) 7.5 months 31 (b) 4.5 months 32 (c) 6 months 33 (a) Rs. 500 34 (a) Rs. 625 35 (b) Rs. 375 36 (a) Only out of profit 37 (a) Profits 38 (d) At any rate, provided it is payable only out of profits 39 (b) Rs. 2,091 and Rs. 2,509 40 (c) Will be given interest @ 6% 41 (a) Rs. 39,000 42 (a) Rs. 78,000 43 (c)
PGT – Commerce
1 (b) 3 2 (c) Profit and Loss Account 3(d) Property belonging to the partners
M.Com (Entrance)
1 (b) Rs.275
UGC N.E.T
1 (b) 6 months
Chapter 20 : Treatment of Goodwill
MCQ
1 (b Rs. 2,55,000 2 (b) Rs.15,000 3 (a) Rs.20,000 4 (b) Rs.10,000 5 (a) Rs.16,000 6 (d) Rs.1,00,000 7 (b) Rs.17,500 8 (c) Rs.27,400 9 (b) 1/12 10 (d) A’s Capital A/c ….. Dr. 10,000 To C’s Capital A/c 10,000
M.Com (Entrance)
1 (c) The product of average profits of the given year and number of years 2 (c) Rs.2,70,000
UGC N.E.T
1 (c) 1:1 2 (b) Cat goodwill
Chapter 21 : Admission of New Partner
MCQ
1 (b) 3:3:1 2 (b) 12:16:7 3 (b) 3/7 :3/7 4 6:8:4:2:5 5 3:2:2 6 2:1:1 7 (a) 21:11:8 8 (a) 6:2:2 9 (a) 75:48:37 10 (c) 2:2:1 11 (a) 1/3 :1/3: 1/6: 1/6 12 (a) 3:1 13 (d) 1:2 14 12:8:5:5 15 5:3:7:5 16 Rs.50,000 17 Rs.1,00,000 18 (c) A and B (equally) 19 (b) x only 20 (b) Unrecorded investment A/c ……..Dr. 5,000 To Revaluation A/c 5,000 21(a) loss Rs.28,000 22 (a) Rs.30,000 23 (d) Rs.22,500 24 (a) 2,60,000 : 2,06,000 : 50,000
MCQ Part II
1 (c) Old partner’s capital account 2 (b) Rs. 5,000 each 3 (c) Old partnership is reconstituted 4 (b) Assets Account 5 (a) Old Partners in old profit sharing ratio
PGT – Commerce
1 (a) Rs.4,00,000 2 (d) Rs.25,000 3 (b) x only 4 (c) 4:2:3 5 (a) 9:7:4
M.Com (Entrance)
1 (a) 2:1:1 2 (b) 2:2:3
UGC N.E.T
1 (c) 5:3:1:1 2 (c) 4:1 3 (c) 4:2:3 4 (c) C’s A/c debited for Rs.3,000 5 (b) 6:5:3 6 (b) 28:21:14:9 7 (b) Rs.27,500 8 (d) 1:3 9 (d) 1:3 10 (c) Rs.7,500
Chapter 22 : Retirement and Death of a Partner
MCQ
1 (b) 5:1 2 (d) 1:1 3 (a) 1:2 4 (a) 3:2 5 (a) 1:2 6 (d) only y gain by 1/3 7 (b) Rs.8,000 and Rs.4,000 8 (c) Rs.71,000 9 (a) Rs.70,820 10 (a) 70,800 11 (c) Rs.65,000 12 (c) Rs.3,200 13 (b) Rs.750 14 (b) Rs.15,000 15 (b) Rs.6,000 16 (d) Debited; Profit & Loss A/c 17 (a) Surrender value of a policy 18 (a) Policy value 19 (a) Rs.1,05,000; Rs.70,000; Rs.35,000 20 (d) All of the above 21 (b) Rs.7,000 22 Rs.20,000 23 Rs.1,500
PGT – Commerce
1 (a) Profit & Loss Suspense Account 2 (b) In the event of retirement of a partner, if the Joint Life policy already appears at its surrender value, no further adjustment is required. 3 (b) The retiring partner may claim a share in the profits of the firm even after his retirement if his accounts are not settled 4 (d) Exercising option to continue of not, on attainment of majority by the minor 5 (d) Debited by the old profit sharing ratio
UGC N.E.T
1 (c) 4:1 2 (b) If he does not give public notice 3 (d) Loan
Chapter 23 : Dissolution of Partnership Firm
MCQ
1 (a) Nominal account 2 (d) At the time of dissolution of partnership firm 3 (a) Complete breakdown relationship between all the partners 4 (c) Dissolution of partnership 5 (c) Realization account 6 (a) Realization account 7 (c) Partners’s capital account 8 (b) Only remaining amount of creditors are paid 9 (b) Partners Current or Capital account 10 (c) 2,1,4 and 3 11 (b) Garner vs Murray 12 (c) In the ratio of capital after adjusting accumulated profits and losses but before adjusting losses or gains due to realization 13 (a)Both statements are true 14 (c) The firm is insolvent 15 (a) 1 and 2 16 (c) 2,3,4,1 17 (b) 3,4,2,1
PGT – Commerce
1 (d) Rights to be consulted 2 (d) 48
M.Com (Entrance)
1 (a) Cost of dissolution 2 (b) Capital ratio which stood prior to dissolution
UGC N.E.T
1 (d) By the insolvency of all but one partner 2 (c) (i), (ii), (iii), (iv) 3 (b) In the profit sharing ratio
Chapter 24 : Accounting for Hire-Purchase
MCQ
1 (b) Payment of last installment 2 (c) Rs.400 3 (a) Rs.36,000 4 (d) Rs.1,000 5 (a) Rs.36,000 6 (c) Hire -Purchase Price
M.Com (Entrance)
1 (b) Payment of last installment 2 (c) Rs.400 3 (a) Rs.36,000
Chapter 25 : Inland Branch
MCQ
1 (a) Dependent Branch 2 (c) Independent Branch 3 (b) Nominal