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

21.
Which of the following formula is correct to calculate provision on debtors to be transferred to Profit and Loss Account?

A. Bad Debts + New Provision - Old Provision

B. Provision on Debtors + New Provision + Bad Debts - Further Bad Debts

C. Bad Debts + New Bad Debts + New Provision - Old Provision

D. New Provision on Debtors + Old Provision made for Bad Debts

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22.
Profit on re-issue of forfeited share is transferred to which account?

A. Security premium account

B. Capital reserve account

C. Drawing account

D. Share forfeiture account

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23.
Debentures can be redeemed by:

A. Purchase of own debentures in the open market

B. Converting them into a new class of debentures

C. Converting them into shares

D. Any of the method mentioned in A, B and C above

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24.
Distribution of income by way of public expenditure is

A. Industrial development

B. Development of Agriculture

C. Social services

D. None of the above

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25.
If the cost of goods sold is Rs. 1 lakh, the value of opening and closing is Rs. 20,000 and Rs. 30,000 respectively, the stock turnover ratio will be:

A. 3.3 times

B. 4 times

C. 5 times

D. 5.5 times

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26.
In absence of an agreement, loss arising out of a partner becoming insolvent shall be borne by solvent partner in

A. Equal ratio

B. Their capital ratio

C. Their profit sharing ratio

D. 3 : 2 : 1 ratio

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27.
An act of giving up the title to the shares by an allottee, in favour of his nominees either in full or in part is known as:

A. Renunciation of allotment

B. Nomination of shares

C. Assignment of shares

D. Transfer of shares

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28.
If rate of profit is 25% of cost, then it is

A. 25% on sales price

B. 33% on sales price

C. 20% on sales price

D. $$33\frac{1}{3}\% $$ on sales price

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29.
As per section 205 (2A) a company is obliged to transfer at least what amount in reserve, if the rate of dividend is more than 20% of the paid up capital?
or
If the proposed dividend is 20% the percentage of profits to be transferred to reserve is:

A. 5%

B. 2.50%

C. 10%

D. 7.50%

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30.
Preference shares can be redeemed

A. partly out of issue of shares and balance out of free reserves

B. out of proceed of issue of shares

C. out of profits

D. all of the above

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Accounting MCQ Questions and Solutions with Explanations | Commerce

21. Which of the following formula is correct to calculate provision on debtors to be transferred to Profit and Loss Account?

Answer & Solution

22. Profit on re-issue of forfeited share is transferred to which account?

Answer & Solution

23. Debentures can be redeemed by:

Answer & Solution

24. Distribution of income by way of public expenditure is

Answer & Solution

25. If the cost of goods sold is Rs. 1 lakh, the value of opening and closing is Rs. 20,000 and Rs. 30,000 respectively, the stock turnover ratio will be:

Answer & Solution

26. In absence of an agreement, loss arising out of a partner becoming insolvent shall be borne by solvent partner in

Answer & Solution

27. An act of giving up the title to the shares by an allottee, in favour of his nominees either in full or in part is known as:

Answer & Solution

28. If rate of profit is 25% of cost, then it is

Answer & Solution

29. As per section 205 (2A) a company is obliged to transfer at least what amount in reserve, if the rate of dividend is more than 20% of the paid up capital? or If the proposed dividend is 20% the percentage of profits to be transferred to reserve is:

Answer & Solution

30. Preference shares can be redeemed

Answer & Solution

Read More Section(Accounting)

21.
Which of the following formula is correct to calculate provision on debtors to be transferred to Profit and Loss Account?

22.
Profit on re-issue of forfeited share is transferred to which account?

23.
Debentures can be redeemed by:

24.
Distribution of income by way of public expenditure is

25.
If the cost of goods sold is Rs. 1 lakh, the value of opening and closing is Rs. 20,000 and Rs. 30,000 respectively, the stock turnover ratio will be:

26.
In absence of an agreement, loss arising out of a partner becoming insolvent shall be borne by solvent partner in

27.
An act of giving up the title to the shares by an allottee, in favour of his nominees either in full or in part is known as:

28.
If rate of profit is 25% of cost, then it is

29.
As per section 205 (2A) a company is obliged to transfer at least what amount in reserve, if the rate of dividend is more than 20% of the paid up capital?
or
If the proposed dividend is 20% the percentage of profits to be transferred to reserve is:

30.
Preference shares can be redeemed