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

61.
AS-37 does not apply to contingent liabilities of

A. listed companies

B. unlisted companies

C. small business

D. insurance companies

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62.
X Ltd. goes into liquidation and a new company Z Ltd. purchases the business of X Ltd. It is a case of:

A. Amalgamation

B. Absorption

C. Internal reconstruction

D. External reconstruction

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63.
Arrange the following in correct sequence in the event of dissolution of a partnership firm.
1. Residue, if any, divided among the partners.
2. Paying to each partner for his capital.
3. Paying the debts of third party.
4. Paying to each partner for advances made by him.
Select the correct answer:

A. 4, 3, 2, 1

B. 2, 1, 4, 3

C. 3, 4, 2, 1

D. 3, 1, 4, 2

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64.
Subscription recieved in 2009 is
For the year 2008 ⇔ Rs. 1,300
For the year 2009 ⇔ Rs. 10,000
For the year 2010 ⇔ Rs. 1,200
Subscription outstanding on 31^st December, 2009 ⇔ Rs. 700.
The amount of subscription to be posted to Income and Expenditure account of 2009 will be

A. Rs. 10,000

B. Rs. 12,500

C. Rs. 13,200

D. Rs. 10,700

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65.
An asset was purchased for Rs. 5,00,000 with the down payment of Rs. 1,00,000 and bills adopted for Rs. 4,00,000. What would be the effect on the total asset and total liabilities in the Balance Sheet?

A. Assets increased by Rs. 4,00,000 and liabilities increased by Rs. 4,00,000

B. Assets decreased by Rs. 4,00,000 and liabilities decreased by Rs. 4,00,000

C. Assets decreased by Rs. 4,00,000 and liabilities increased by Rs. 4,00,000

D. Assets increased by Rs. 5,00,000 and liabilities increased by Rs. 4,00,000

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66.
Securities premium can be used by a company for

A. Issuing fully paid bonus shares to its members

B. Redemption of preference Shares

C. Payment of Dividend on Shares

D. None of these

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67.
By underwriting of shares, it is-

A. convenient to get the accounts of the company audited

B. easier to collect capital for the company

C. easier to get the company registered

D. easier to enter into contracts with the promoters of company

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68.
You are given the following items-
1. Bill received
2. Investment
3. Debtors
4. Interest earned but not received
Which of the following arrangement in order of liquidity is correct?

A. 1, 2, 3, 4

B. 2, 1, 4, 3

C. 2, 3, 1, 4

D. 3, 1, 4, 2

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69.
According to which of the following concepts, fixed assets are depreciated over their useful life, rather than over a shorter period, on the expectation of early liquidation?

A. Cost concept

B. Matching concept

C. Going concern concept

D. Business entity concept

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70.
X, Y and Z are partner in a partnership firm who share profits and loses in 4 : 2 : 1. It is decided that Z's share of profit will not be less than Rs. 7,500. If profit for the year is Rs. 31,500 then how will be profit distributed between each partner?

A. X Rs. 16,000, Y Rs. 8,000, Z Rs. 7,500

B. X Rs. 14,000, Y Rs. 10,000, Z Rs. 7,500

C. X Rs. 15,500, Y Rs. 8,500, Z Rs. 7,500

D. X Rs. 18,000, Y Rs. 6,000, Z Rs. 7,500

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Accounting MCQ Questions and Solutions with Explanations | Commerce

61. AS-37 does not apply to contingent liabilities of

Answer & Solution

62. X Ltd. goes into liquidation and a new company Z Ltd. purchases the business of X Ltd. It is a case of:

Answer & Solution

Answer & Solution

64. Subscription recieved in 2009 is For the year 2008 ⇔ Rs. 1,300 For the year 2009 ⇔ Rs. 10,000 For the year 2010 ⇔ Rs. 1,200 Subscription outstanding on 31st December, 2009 ⇔ Rs. 700. The amount of subscription to be posted to Income and Expenditure account of 2009 will be

Answer & Solution

65. An asset was purchased for Rs. 5,00,000 with the down payment of Rs. 1,00,000 and bills adopted for Rs. 4,00,000. What would be the effect on the total asset and total liabilities in the Balance Sheet?

Answer & Solution

66. Securities premium can be used by a company for

Answer & Solution

67. By underwriting of shares, it is-

Answer & Solution

68. You are given the following items- 1. Bill received 2. Investment 3. Debtors 4. Interest earned but not received Which of the following arrangement in order of liquidity is correct?

Answer & Solution

69. According to which of the following concepts, fixed assets are depreciated over their useful life, rather than over a shorter period, on the expectation of early liquidation?

Answer & Solution

70. X, Y and Z are partner in a partnership firm who share profits and loses in 4 : 2 : 1. It is decided that Z's share of profit will not be less than Rs. 7,500. If profit for the year is Rs. 31,500 then how will be profit distributed between each partner?

Answer & Solution

Read More Section(Accounting)

61.
AS-37 does not apply to contingent liabilities of

62.
X Ltd. goes into liquidation and a new company Z Ltd. purchases the business of X Ltd. It is a case of:

64.
Subscription recieved in 2009 is
For the year 2008 ⇔ Rs. 1,300
For the year 2009 ⇔ Rs. 10,000
For the year 2010 ⇔ Rs. 1,200
Subscription outstanding on 31^st December, 2009 ⇔ Rs. 700.
The amount of subscription to be posted to Income and Expenditure account of 2009 will be

65.
An asset was purchased for Rs. 5,00,000 with the down payment of Rs. 1,00,000 and bills adopted for Rs. 4,00,000. What would be the effect on the total asset and total liabilities in the Balance Sheet?

66.
Securities premium can be used by a company for

67.
By underwriting of shares, it is-

68.
You are given the following items-
1. Bill received
2. Investment
3. Debtors
4. Interest earned but not received
Which of the following arrangement in order of liquidity is correct?

69.
According to which of the following concepts, fixed assets are depreciated over their useful life, rather than over a shorter period, on the expectation of early liquidation?

70.
X, Y and Z are partner in a partnership firm who share profits and loses in 4 : 2 : 1. It is decided that Z's share of profit will not be less than Rs. 7,500. If profit for the year is Rs. 31,500 then how will be profit distributed between each partner?