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

41.
A, B and C are partners. They admit D as a partner and gurantee that his share of profit shall not be less than Rs. 20,000 p.a. Profits are to be shared in the ratio of 4 : 3 : 3 : 2 respectively. If total profits for a year were Rs. 96,000, A's share of profits will be:

A. Rs. 30,400.00

B. Rs. 32,000.00

C. Rs. 33,777.78

D. Rs. 24,000.00

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42.
While calculating purchase price, the following values of assets are considered

A. Book value

B. New values fixed

C. Average values

D. Market values

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43.
Given:
Stock Trunover Ratio = 6 times
Average Stock = Rs. 8,000
Selling price = 25% above cost
What is the amount of gross profit?

A. Rs. 20,000

B. Rs. 4,000

C. Rs. 10,000

D. Rs. 12,000

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44.
A retiring partner continues to be liable for obligations incurred after his retirement if

A. Unpaid amount is transferred to his loan account

B. He does not givea public notice

C. He starts a similar business elsewhere

D. In all the situations till he survives

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45.
Realization account is prepared in a partnership firm:

A. In case a partner takes leave from the firm

B. In case of death of partner

C. In case of admission of a partner

D. In case of dissolution of a firm

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46.
Which one of the following is not a method of valuation of shares?

A. Asset Valuation Method

B. Yield Valuation Method

C. Super Profit Method

D. None of these

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47.
Variable cost ratio is 30% fixed cost is Rs. 1,26,000 then the break even point will be

A. Rs. 1,80,000

B. Rs. 1,42,200

C. Rs. 1,63,800

D. Rs. 37,800

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48.
Which of the following is possible for a company under section 94 to alter its share capital

A. Increase in share capital by issuing new shares

B. Converting fully paid-up shares into stock

C. Sub-division of share of larger denominations into smaller demonization

D. Cancellation of shares to reduce share capital

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49.
In partnership, unrecorded liability is shown in new Balance Sheet in

A. Assets side

B. Liabilities side

C. Both sides

D. None of the above

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50.
If nothing otherwise mentioned, on admission of a new partner, the sacrificing ratio is same as the

A. old ratio

B. new ratio

C. gaining ratio

D. capital ratio

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. A, B and C are partners. They admit D as a partner and gurantee that his share of profit shall not be less than Rs. 20,000 p.a. Profits are to be shared in the ratio of 4 : 3 : 3 : 2 respectively. If total profits for a year were Rs. 96,000, A's share of profits will be:

Answer & Solution

42. While calculating purchase price, the following values of assets are considered

Answer & Solution

43. Given: Stock Trunover Ratio = 6 times Average Stock = Rs. 8,000 Selling price = 25% above cost What is the amount of gross profit?

Answer & Solution

44. A retiring partner continues to be liable for obligations incurred after his retirement if

Answer & Solution

45. Realization account is prepared in a partnership firm:

Answer & Solution

46. Which one of the following is not a method of valuation of shares?

Answer & Solution

47. Variable cost ratio is 30% fixed cost is Rs. 1,26,000 then the break even point will be

Answer & Solution

48. Which of the following is possible for a company under section 94 to alter its share capital

Answer & Solution

49. In partnership, unrecorded liability is shown in new Balance Sheet in

Answer & Solution

50. If nothing otherwise mentioned, on admission of a new partner, the sacrificing ratio is same as the

Answer & Solution

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41.
A, B and C are partners. They admit D as a partner and gurantee that his share of profit shall not be less than Rs. 20,000 p.a. Profits are to be shared in the ratio of 4 : 3 : 3 : 2 respectively. If total profits for a year were Rs. 96,000, A's share of profits will be:

42.
While calculating purchase price, the following values of assets are considered

43.
Given:
Stock Trunover Ratio = 6 times
Average Stock = Rs. 8,000
Selling price = 25% above cost
What is the amount of gross profit?

44.
A retiring partner continues to be liable for obligations incurred after his retirement if

45.
Realization account is prepared in a partnership firm:

46.
Which one of the following is not a method of valuation of shares?

47.
Variable cost ratio is 30% fixed cost is Rs. 1,26,000 then the break even point will be

48.
Which of the following is possible for a company under section 94 to alter its share capital

49.
In partnership, unrecorded liability is shown in new Balance Sheet in

50.
If nothing otherwise mentioned, on admission of a new partner, the sacrificing ratio is same as the