Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25 Section 26 Section 27 Section 28 Section 29 Section 30

11.
Mr. X a partner in a partnership firm withdraws Rs. 2,000 at the end of each month. Rate of interest is 5%. Interest on drawings at the end of the year will be

A. Rs. 1,200

B. Rs. 600

C. Rs. 550

D. Rs. 650

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12.
X and Y are partners sharing profits and losses in 3 : 1. They admitted Z in the partnership and he bring Rs. 8,000 as his share of goodwill. New profit sharing ratio between X, Y and Z is 2 : 1 : 1, goodwill will be distributed to.

A. X and Y Rs. 6,000 and Rs. 2,000 respectively

B. X and Y Rs. 4,000 each

C. Only X

D. Only Y

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13.
Match the following

List-I List-II

a. The document related to sales return is . . . . . . . . note. 1. Business

b. Bank reconciliation statement is prepared by the . . . . . . . . enterprise. 2. Credit

c. Purchases account will always have a . . . . . . . . balance. 3. Cash

d. When the word 'paid' occurs, it means reduction of . . . . . . . . 4. Debit

A. a-4, b-3, c-2, d-1

B. a-2, b-1, c-4, d-3

C. a-2, b-4, c-1, d-3

D. a-3, b-4, c-1, d-2

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14.
Accounting standard 8 is concerned with:

A. Valuation of inventories

B. Accounting for fixed assets

C. Accounting for research and development

D. Depreciation accounting

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15.
All the possible losses should be anticipated in advance. This is in accordance with

A. Conservation concept

B. Disclosure concept

C. Materiality concept

D. Recovery concept

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16.
At what price the stock is valued under conventional method:

A. At cost price

B. At market price

C. At cost price or market price whichever is lower

D. At cost price or market price whichever is higher

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17.
Which of the following is not a formula of P/V Ratio?

A. $${\text{P/V Ratio}} = \frac{{{\text{S}} - {\text{V}}}}{{\text{S}}} \times 100$$

B. $${\text{P/V Ratio}} = \frac{{{\text{Profit}}}}{{{\text{MOS}}}} \times 100$$

C. $${\text{P/V Ratio}} = \frac{{{\text{Change in Profit}}}}{{{\text{Change in Total Cost}}}} \times 100$$

D. $${\text{P/V Ratio}} = \frac{{\text{F}}}{{{\text{BEP(Rs}}{\text{.)}}}} \times 100$$

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18.
If an equal amount is withdrawn by a partner at the beginning of each month for a period of 6 months, the interest on the total amount will be charged for

A. 2.5 months

B. 3 months

C. 3.5 months

D. 6 months

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19.
The question contains two sentences. One is statement (A) and the other is Reason (R). You have to examine both the sentence carefully and decide whether statement (A) and reason (R) correct and if so, reason is the correct explanation of statement. Mark these items in the answer sheet:
Statement (A): Wages paid for installation of new machine is treated as capital expenditure.
Reason (R): It is related to giving work to new asset.

A. Both (A) and (R) are true but R is correct explanation of A

B. Both (A) and (R) are true and R is not correct explanation of A

C. A is correct but R is wrong

D. A is wrong but R is correct

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20.
Goodwill of a firm of A and B is valued at Rs. 30,000. It is appearing in the books at Rs. 12,000. C is admitted for $${\frac{1}{4}^{{\text{th}}}}$$ share. The amount of goodwill, which he is supposed to bring, will be:

A. Rs. 4,500

B. Rs. 3,000

C. Rs. 7,500

D. Rs. 10,500

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. The document related to sales return is . . . . . . . . note.	1. Business
b. Bank reconciliation statement is prepared by the . . . . . . . . enterprise.	2. Credit
c. Purchases account will always have a . . . . . . . . balance.	3. Cash
d. When the word 'paid' occurs, it means reduction of . . . . . . . .	4. Debit

Accounting MCQ Questions and Solutions with Explanations | Commerce

11. Mr. X a partner in a partnership firm withdraws Rs. 2,000 at the end of each month. Rate of interest is 5%. Interest on drawings at the end of the year will be

Answer & Solution

12. X and Y are partners sharing profits and losses in 3 : 1. They admitted Z in the partnership and he bring Rs. 8,000 as his share of goodwill. New profit sharing ratio between X, Y and Z is 2 : 1 : 1, goodwill will be distributed to.

Answer & Solution

Answer & Solution

14. Accounting standard 8 is concerned with:

Answer & Solution

15. All the possible losses should be anticipated in advance. This is in accordance with

Answer & Solution

16. At what price the stock is valued under conventional method:

Answer & Solution

17. Which of the following is not a formula of P/V Ratio?

Answer & Solution

18. If an equal amount is withdrawn by a partner at the beginning of each month for a period of 6 months, the interest on the total amount will be charged for

Answer & Solution

Answer & Solution

20. Goodwill of a firm of A and B is valued at Rs. 30,000. It is appearing in the books at Rs. 12,000. C is admitted for $${\frac{1}{4}^{{\text{th}}}}$$ share. The amount of goodwill, which he is supposed to bring, will be:

Answer & Solution

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11.
Mr. X a partner in a partnership firm withdraws Rs. 2,000 at the end of each month. Rate of interest is 5%. Interest on drawings at the end of the year will be

12.
X and Y are partners sharing profits and losses in 3 : 1. They admitted Z in the partnership and he bring Rs. 8,000 as his share of goodwill. New profit sharing ratio between X, Y and Z is 2 : 1 : 1, goodwill will be distributed to.

14.
Accounting standard 8 is concerned with:

15.
All the possible losses should be anticipated in advance. This is in accordance with

16.
At what price the stock is valued under conventional method:

17.
Which of the following is not a formula of P/V Ratio?

18.
If an equal amount is withdrawn by a partner at the beginning of each month for a period of 6 months, the interest on the total amount will be charged for

20.
Goodwill of a firm of A and B is valued at Rs. 30,000. It is appearing in the books at Rs. 12,000. C is admitted for $${\frac{1}{4}^{{\text{th}}}}$$ share. The amount of goodwill, which he is supposed to bring, will be: