41
In the event of death of a partner, the amount of joint life policy is credited to
A)
the account of dead partner only
B)
all the partner's capital accounts in the profit and loss ratio
C)
remaining partner's capital accounts in profit and loss ratio
D)
none of these
Answer & Solution
Answer: Option
B
42
The Balance Sheet of an Indian company should show, by way of notes, the following contingent liabilities :
A)
Claims against the company not acknowledged by as debts
B)
Uncalled liability on shares partly paid
C)
Arrears of fixed cumulative dividends
D)
All the above
Answer & Solution
Answer: Option
A
43
Which of the following is a current liability?
A)
Capital
B)
Reserve Fund
C)
Bills Payable
D)
Debenture
Answer & Solution
Answer: Option
C
44
The Garner Vs. Murray case was concerned with the settlement of accounts among the partners at the time of:
A)
Admission of a new partner
B)
Retirement of a partner
C)
Death of a partner
D)
Insolvency of a partner
Answer & Solution
Answer: Option
D
45
Under statement of closing work-in-progress in the period will
A)
understate cost of goodsmanufactured in that period
B)
overstate current assets
C)
overstate gross profit from sales in that period
D)
understate net income in that period
Answer & Solution
Answer: Option
D
46
Under the 'imprest system of petty cash book' the petty cashier submits the periodical statement and recovers
A)
budget allotted for the period
B)
actual amount spent
C)
budget allotted plus unspent amount
D)
petty amount of cash
Answer & Solution
Answer: Option
D
47
Net loss
Rs. 20,000
Depreciation on Machinery
Rs. 50,000
Amortisation of goodwill
Rs. 5,000
Loss on the sale of old furniture
Rs. 3,500
Profit on the sale of land
Rs. 8,500
Funds from operation are
A)
Rs. 25,000
B)
Rs. 30,000
C)
Rs. 32,000
D)
Rs. 36,500
Answer & Solution
Answer: Option
B
48
Match the following
List-I List-II
a. Income is measured and financial position is assessed
1. Consistency concept
b. Anticipate no profit and provide for all possible losses
2. Going concern concept
c. Assets are depreciated on the basis of expected life rather than on the basis of market value
3. Conservatism concept
d. The comparison of one accounting period with that in the past is possible
4. Matching concept
A)
a-4, b-3, c-2, d-1
B)
a-2, b-1, c-4, d-3
C)
a-4, b-3, c-1, d-2
D)
a-3, b-4, c-2, d-1
Answer & Solution
Answer: Option
A
49
Fixed Assets (Net):st December,1994 = Rs. 1,50,000st December, 1995 = Rs. 1,90,000
A)
Rs. 1,10,000
B)
Rs. 1,80,008
C)
Rs. 2,05,000
D)
Rs. 2,20,000
Answer & Solution
Answer: Option
A
50
Which of the following is not a current liability:
A)
Bank overdraft
B)
Redeemable debentures
C)
Accounts payable
D)
Provision for bad debts
Answer & Solution
Answer: Option
B
