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

61.
The abnormal loss debited to:

A. profit & loss account

B. consignee's account

C. consignor's account

D. consignment account

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62.
Capital redemption reserve can be utilized for . . . . . . . .

A. declaring dividend

B. writing of capital losses

C. issue of fully paid up bonus shares

D. None of these

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63.
Debenture represents . . . . . . . . of the company.

A. deposit

B. overdraft

C. loan

D. None of these

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64.
Match List-I (Items) with List-II (Headings) and select the correct answer using the options given below the lists:

List-I (Items) List-II (Headings)

a. Provision for income tax 1. Miscellaneous expenses not written off

b. Share premium 2. Current liabilities

c. Unclaimed dividend dividend 3. Reserves and surplus

d. Discount issue of shares 4. Profit and loss account

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

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

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

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

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65.
Bills Receivable book is to keep record of . . . . . . . .

A. bills received from customers

B. bills received from supplier

C. credit purchases

D. credit sales

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66.
The capital in a business on 1^st January and 31^stJanuary is Rs. 17,000 and Rs. 17,200 respectively. Investment by owner and withdrawal by owner during January amount to Rs. 1,000 and Rs. 700 respectively. What is the net income for January?

A. Rs. 100 (Loss)

B. Rs. 300

C. Rs. 200

D. Rs. 500

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67.
Market price or actual cost, whichever is less, is the generally accepted accounting principle for valuation of:

A. Stock-in-trade

B. Fixed assets

C. Current assets

D. All of these

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68.
Sales on account is recorded in:

A. Cash book

B. Journal

C. Sales book

D. General Journal

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69.
When capital at the end is Rs. 21,500 drawings Rs. 4,300 and capital in the beginning Rs. 19,400, what is the amount of profit or loss?

A. Rs. 2,200 (profit)

B. Rs. 2,200 (loss)

C. Rs. 6,400 (profit)

D. Rs. 6,400 (loss)

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70.
Which of the following is a method of redemption of debentures?

A. draw of lots

B. conversion

C. open market purchase

D. all of these

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1 2 3 4 5 6 7 8 9 10

List-I (Items)	List-II (Headings)
a. Provision for income tax	1. Miscellaneous expenses not written off
b. Share premium	2. Current liabilities
c. Unclaimed dividend dividend	3. Reserves and surplus
d. Discount issue of shares	4. Profit and loss account

Accounting MCQ Questions and Solutions with Explanations | Commerce

61. The abnormal loss debited to:

Answer & Solution

62. Capital redemption reserve can be utilized for . . . . . . . .

Answer & Solution

63. Debenture represents . . . . . . . . of the company.

Answer & Solution

Answer & Solution

65. Bills Receivable book is to keep record of . . . . . . . .

Answer & Solution

66. The capital in a business on 1st January and 31stJanuary is Rs. 17,000 and Rs. 17,200 respectively. Investment by owner and withdrawal by owner during January amount to Rs. 1,000 and Rs. 700 respectively. What is the net income for January?

Answer & Solution

67. Market price or actual cost, whichever is less, is the generally accepted accounting principle for valuation of:

Answer & Solution

68. Sales on account is recorded in:

Answer & Solution

69. When capital at the end is Rs. 21,500 drawings Rs. 4,300 and capital in the beginning Rs. 19,400, what is the amount of profit or loss?

Answer & Solution

70. Which of the following is a method of redemption of debentures?

Answer & Solution

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61.
The abnormal loss debited to:

62.
Capital redemption reserve can be utilized for . . . . . . . .

63.
Debenture represents . . . . . . . . of the company.

65.
Bills Receivable book is to keep record of . . . . . . . .

66.
The capital in a business on 1^st January and 31^stJanuary is Rs. 17,000 and Rs. 17,200 respectively. Investment by owner and withdrawal by owner during January amount to Rs. 1,000 and Rs. 700 respectively. What is the net income for January?

67.
Market price or actual cost, whichever is less, is the generally accepted accounting principle for valuation of:

68.
Sales on account is recorded in:

69.
When capital at the end is Rs. 21,500 drawings Rs. 4,300 and capital in the beginning Rs. 19,400, what is the amount of profit or loss?

70.
Which of the following is a method of redemption of debentures?