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

1.
Rajiv Limited forfeited 20 shares of Rs. 10 each on which Rs. 6 per share had been paid. Out of these, 10 shares are re-issued as fully paid at a price of Rs. 5.50 per share. The amount to be transferred to Capital Reserve Fund would be:

A. Rs. 10

B. Rs. 12

C. Rs. 15

D. Rs. 18

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2.
Given:

Gross Profit Rs. 60,000

Gross Profit rate 20%

Debtors velocity 2 Month

The amount of debtors will be:

A. Rs. 12,000

B. Rs. 50,000

C. Rs. 1,20,000

D. Rs. 3,00,000

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3.
Assume that
M = opening stock, N = Purchases, O = Closing stock, P = Cost of goods sold.
Then correct equation will be

A. M - N = O + P

B. M - O = P - O

C. M - O = P - N

D. P - M = N + O

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4.
A Ltd. forfeited 500 shares of M of Rs. 10 each fully called-up for non-payment of first call of Rs. 2 per share and final call of Rs. 2 per share. 300 of these shares were reissued at 9 per share, fully paid-up. What amount will be transferred to the Capital Reserve A/c?

A. Rs. 2,000

B. Rs. 1,200

C. Rs. 1,500

D. Rs. 1,800

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5.
Accounting standards in India are issued by -

A. Central Government

B. State Government

C. The Institute of Chartered Accountants of India

D. RBI

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6.
Which of the following features is not present with partnership form of organization?

A. Perpetual succession

B. Unlimited liability

C. Creation by an agreement

D. Voluntary registration

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7.
If subsription received during the year is Rs. 4,460, outstanding subscription at the end of the year is Rs. 290, outstanding subscription at the beginning of the year is Rs. 90, advance subscription received for the next year is Rs. 160, the amount of subscription to be shown in income and expenditure account will be:

A. Rs. 4,500

B. Rs. 4,220

C. Rs. 4,380

D. Rs. 4,750

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8.
Stock appearing in the Trial Balance is shown in

A. Trading Account

B. Profit and Loss Account

C. Balance Sheet

D. Trading Account and Balance Sheet

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9.
If capital is Rs. 50,000, liability is Rs. 30,000 and fixed assets are Rs. 70,000, then the value of current assets will be

A. Rs. 90,000

B. Rs. 50,000

C. Rs. 10,000

D. Rs. 1,50,000

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10.
Determination of cost from actual expenses incurred is termed as

A. Direct costing

B. Indirect costing

C. Historical costing

D. Standard costing

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1 2 3 4 5 6 7 8 9 10

Gross Profit	Rs. 60,000
Gross Profit rate	20%
Debtors velocity	2 Month

Accounting MCQ Questions and Solutions with Explanations | Commerce

1. Rajiv Limited forfeited 20 shares of Rs. 10 each on which Rs. 6 per share had been paid. Out of these, 10 shares are re-issued as fully paid at a price of Rs. 5.50 per share. The amount to be transferred to Capital Reserve Fund would be:

Answer & Solution

2. Given: Gross Profit Rs. 60,000 Gross Profit rate 20% Debtors velocity 2 Month The amount of debtors will be:

Answer & Solution

3. Assume that M = opening stock, N = Purchases, O = Closing stock, P = Cost of goods sold. Then correct equation will be

Answer & Solution

4. A Ltd. forfeited 500 shares of M of Rs. 10 each fully called-up for non-payment of first call of Rs. 2 per share and final call of Rs. 2 per share. 300 of these shares were reissued at 9 per share, fully paid-up. What amount will be transferred to the Capital Reserve A/c?

Answer & Solution

5. Accounting standards in India are issued by -

Answer & Solution

6. Which of the following features is not present with partnership form of organization?

Answer & Solution

Answer & Solution

8. Stock appearing in the Trial Balance is shown in

Answer & Solution

9. If capital is Rs. 50,000, liability is Rs. 30,000 and fixed assets are Rs. 70,000, then the value of current assets will be

Answer & Solution

10. Determination of cost from actual expenses incurred is termed as

Answer & Solution

Read More Section(Accounting)

1.
Rajiv Limited forfeited 20 shares of Rs. 10 each on which Rs. 6 per share had been paid. Out of these, 10 shares are re-issued as fully paid at a price of Rs. 5.50 per share. The amount to be transferred to Capital Reserve Fund would be:

2.
Given:

Gross Profit Rs. 60,000

Gross Profit rate 20%

Debtors velocity 2 Month

The amount of debtors will be:

3.
Assume that
M = opening stock, N = Purchases, O = Closing stock, P = Cost of goods sold.
Then correct equation will be

4.
A Ltd. forfeited 500 shares of M of Rs. 10 each fully called-up for non-payment of first call of Rs. 2 per share and final call of Rs. 2 per share. 300 of these shares were reissued at 9 per share, fully paid-up. What amount will be transferred to the Capital Reserve A/c?

5.
Accounting standards in India are issued by -

6.
Which of the following features is not present with partnership form of organization?

8.
Stock appearing in the Trial Balance is shown in

9.
If capital is Rs. 50,000, liability is Rs. 30,000 and fixed assets are Rs. 70,000, then the value of current assets will be

10.
Determination of cost from actual expenses incurred is termed as