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

11.
Choose the odd one out. The court has the option to order dissolution of a firm, where
1. a partner is of sound mind.
2. a partner do not suffer from permanent in capacity.
3. a partner is not guilty of misconduct of the business.
4. a partner transfers his interest or share to a third party.
Select the correct answer:

A. Both 1 and 2

B. Only 3

C. Both 2 and 3

D. Only 4

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12.
If a share of Rs. 10 each on which Rs. 8 has been called and Rs. 6 is paid is forfeited then, the share capital account should be debited with

A. Rs. 10

B. Rs. 8

C. Rs. 6

D. Rs. 4

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13.
Balance of share forfeiture after re-issue of forfeited share is transferred to which account?

A. is added to paid-up capital

B. is added to goodwill account

C. is transferred to capital reserve

D. is transferred to share forfeiture A/c

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14.
When goodwill is brought by the incoming partner in the form of cash. The goodwill amount is credited to the old partners in:

A. Old profit sharing ratio

B. New profit sharing ratio

C. Sacrificing ratio

D. Old capital ratio

E. New capital ratio

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15.
Charulata is a partner in a firm. She withdrew Rs. 10,000 in each quarter during the year ending on 31^st March 2019. The interest on her drawings @ 9%per annum will be

A. Rs. 1,350

B. Rs. 2,250

C. Rs. 900

D. Rs. 1,800

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16.
Income received in advance is a

A. An asset

B. An income

C. A liability

D. None of the above

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17.
Which method is legally accepted for redemption of preference share?

A. Issue of equity share

B. Issue of Deventures

C. Sale of fixed assets of company

D. Public deposit

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18.
Window dressing is prohibited because of

A. Conservative convention

B. Convention of disclosure

C. Convention of materiality

D. Arrear of book accounts

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19.
Arrange the steps of adjustment of partner's capital on the admission of a new partner in sequence.
1. Calculate the adjusted capital of old partners.
2. Calculate the proportionate capital of a new partner.
3. All adjustments should be made.
4. Calculate the total capital of new firm.
Select the correct answer:

A. 3, 1, 4, 2

B. 3, 4, 1, 2

C. 4, 3, 2, 1

D. 3, 4, 2, 1

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20.
Which of the following is not the purpose of admission of a partner?

A. For procuring additional capital

B. For acquiring additional managerial skill

C. For progress of the firm

D. For increasing competition

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Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

12. If a share of Rs. 10 each on which Rs. 8 has been called and Rs. 6 is paid is forfeited then, the share capital account should be debited with

Answer & Solution

13. Balance of share forfeiture after re-issue of forfeited share is transferred to which account?

Answer & Solution

14. When goodwill is brought by the incoming partner in the form of cash. The goodwill amount is credited to the old partners in:

Answer & Solution

15. Charulata is a partner in a firm. She withdrew Rs. 10,000 in each quarter during the year ending on 31st March 2019. The interest on her drawings @ 9%per annum will be

Answer & Solution

16. Income received in advance is a

Answer & Solution

17. Which method is legally accepted for redemption of preference share?

Answer & Solution

18. Window dressing is prohibited because of

Answer & Solution

Answer & Solution

20. Which of the following is not the purpose of admission of a partner?

Answer & Solution

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12.
If a share of Rs. 10 each on which Rs. 8 has been called and Rs. 6 is paid is forfeited then, the share capital account should be debited with

13.
Balance of share forfeiture after re-issue of forfeited share is transferred to which account?

14.
When goodwill is brought by the incoming partner in the form of cash. The goodwill amount is credited to the old partners in:

15.
Charulata is a partner in a firm. She withdrew Rs. 10,000 in each quarter during the year ending on 31^st March 2019. The interest on her drawings @ 9%per annum will be

16.
Income received in advance is a

17.
Which method is legally accepted for redemption of preference share?

18.
Window dressing is prohibited because of

20.
Which of the following is not the purpose of admission of a partner?