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

51.
Which of the following is not true?

A. When all the forfeited shares are not reissued, the forfeited shares account will also show credit balance equal to gain on forfeiture of shares not yet reissued

B. Losson the reissue of shares cannot be more than the gain on forfeiture of those shares

C. At the time of forfeiture of shares, the securities premium is debited along with share capital when the premium has not been received

D. When forfeited shares are issued at a premium, the premium amount is credited to the capital reserve account

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52.
Which method of depreciation is suggested for coal mines:

A. Diminishing Balance Method

B. Fixed Instalment Method

C. Sum of Years Digits Method

D. Depletion Method

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53.
In case of sub-lease royalty earned by the lessor is credited to

A. Sub-Lease Account

B. Profit and Loss Account

C. Short Working Account

D. Royalty Receivable Account

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54.
Rs. 500 posted to wages account instead of machinery account. Identify the type of error?

A. Clerical error

B. Error of omission

C. Error of principle

D. Recording error

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55.
"Discount" on issue of debenture is a:

A. Real asset

B. Fictitious asset

C. Fixed asset

D. Current asset

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56.
Which of the following is not a cash flow?

A. Sale of fixed assets

B. Purchase of machinery on credit

C. Issue of debentures

D. Cash from business operations

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57.
P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31^st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry

A. P will be credited with Rs. 2,000 and Q will be debited with Rs. 2,000

B. P will be debited with Rs. 2,000 and Q will be credited with Rs. 2,000

C. P will be debited with Rs. 2,000 and R will be credited with Rs. 2,000

D. P will be credited with Rs. 2,000 and R will be debited with Rs. 2,000

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58.
Which of the following transactions results in flow of funds:

A. Bills issued to creditors

B. Shares issued for machinery

C. Cash realised from debtors

D. Debentures issued partly for cash and partly for raw materials

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59.
Subscription received in 1998:
For the year 1997
For the year 1998
For the year 1999
Subscription outstanding on 31^st December, 1998 was Rs. 4,000. What amount of subscription will appear in income and Expenditure account of 1998:

A. Rs. 20,000

B. Rs. 19,000

C. Rs. 22,000

D. Rs. 16,000

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60.
Bonus shares mean shares issued to:

A. Workers in lieu of their share in profit

B. Existing equity shareholders

C. Existing preference shareholders

D. Existing equity shareholders and preference shareholders both

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Accounting MCQ Questions and Solutions with Explanations | Commerce

51. Which of the following is not true?

Answer & Solution

52. Which method of depreciation is suggested for coal mines:

Answer & Solution

53. In case of sub-lease royalty earned by the lessor is credited to

Answer & Solution

54. Rs. 500 posted to wages account instead of machinery account. Identify the type of error?

Answer & Solution

55. "Discount" on issue of debenture is a:

Answer & Solution

56. Which of the following is not a cash flow?

Answer & Solution

Answer & Solution

58. Which of the following transactions results in flow of funds:

Answer & Solution

59. Subscription received in 1998: For the year 1997 For the year 1998 For the year 1999 Subscription outstanding on 31st December, 1998 was Rs. 4,000. What amount of subscription will appear in income and Expenditure account of 1998:

Answer & Solution

60. Bonus shares mean shares issued to:

Answer & Solution

Read More Section(Accounting)

51.
Which of the following is not true?

52.
Which method of depreciation is suggested for coal mines:

53.
In case of sub-lease royalty earned by the lessor is credited to

54.
Rs. 500 posted to wages account instead of machinery account. Identify the type of error?

55.
"Discount" on issue of debenture is a:

56.
Which of the following is not a cash flow?

58.
Which of the following transactions results in flow of funds:

59.
Subscription received in 1998:
For the year 1997
For the year 1998
For the year 1999
Subscription outstanding on 31^st December, 1998 was Rs. 4,000. What amount of subscription will appear in income and Expenditure account of 1998:

60.
Bonus shares mean shares issued to: