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Accounting MCQ Questions and Solutions with Explanations | Commerce

Accounting MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Accounting MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-5 section-5

Each section contains 100 MCQs on Accounting .
41
Profit prior to incorporation of a company:
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Answer & Solution
Answer: Option B
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42
A and B are partner in partnership firm. They admitted C for $${\frac{1}{4}^{{\text{th}}}}$$ share in profit. New profit sharing ratio between A, B and C is
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Answer & Solution
Answer: Option C
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43
Discount on issue of debenture should be shown in
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Answer & Solution
Answer: Option A
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44
Which of the following is not the responsibility centre for control purposes?
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Answer & Solution
Answer: Option D
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45
Advance payment of Income tax should be shown as
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Answer & Solution
Answer: Option B
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46
For what, a company may utilise the securities premium amount?
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Answer: Option A
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47
With the help of following information calculate provisions for bad and doubtful debts
Debtors M: Rs. 3,200 Bad to be written off
Debtors N: Rs. 8,000 expeected to realise only 70%
Debtors O: Rs. 6,000 expected to realise only 60%
Debtors P: Rs. 4,000 financial condition very poor, no recovery is likely
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Answer & Solution
Answer: Option B
Solution:
Interpretation

The phrase “provision for bad and doubtful debts” requires recognising the entire expected loss from debtors: amounts already identified as bad (to be written off) plus the doubtful portions that are not expected to be recovered

Loss computation debtor-wise

Debtor M: ₹3,200 is bad ⇒ 100% loss = ₹3,200

Debtor N: Expected to realise 70% of ₹8,000 ⇒ loss = 30% × 8,000 = ₹2,400

Debtor O: Expected to realise 60% of ₹6,000 ⇒ loss = 40% × 6,000 = ₹2,400

Debtor P: Financial condition very poor, no recovery ⇒ 100% loss = ₹4,000

Total provision (bad + doubtful)

₹3,200 + ₹2,400 + ₹2,400 + ₹4,000 = ₹12,000

Note

If the requirement were only for a provision against doubtful debts (excluding specific bad debts already written off), it would be ₹2,400 + ₹2,400 = ₹4,800. However, the wording includes both bad and doubtful, so the correct option is ₹12,000
48
Which of the following accounting principles differentiates between owner and management
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Answer & Solution
Answer: Option A
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49
Arrange the following liabilities in the order of company's balance sheet.
1. Bank Overdraft
2. Bank Loan
3. Share Capital
4. Provision for Taxation
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Answer & Solution
Answer: Option C
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50
X and Y are partners in a firm having capital balances Rs. 1,08,000 and Rs. 72,000, respectively. They admit Z into a partnership for $${\frac{1}{3}^{{\text{rd}}}}$$ share, and Z brings proportion ate amount of capital. The capital amount of Z is
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Answer & Solution
Answer: Option B
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