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.
The debtors are Rs. 30,000 (before bad debts of Rs. 1,000 and provision of bad debts at 5%). A provision for discount on debtors @ 2% would be-

A. Rs. 600

B. Rs. 575

C. Rs. 571

D. Rs. 551

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42.
Current ratio can be increased-

A. By showing more current assets

B. By showing more current liabilities

C. By showing less current assets

D. None of these

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43.
When there is no agreement between partners for sharing profits and losses then it should be shared among partners in what ratio.

A. 2 : 3 : 5

B. 2 : 2 : 4

C. 4 : 5 : 1

D. 1 : 1 : 1

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44.
If minimum subscription is not received, application money should be refunded within how many days?

A. 7

B. 10

C. 15

D. 30

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45.
A, B and C were partners with a capital of Rs. 50,000; Rs. 40,000 and Rs. 30,000, respectively, carrying on business in partnership. The firm's reported profit for the year was Rs. 80,000. As per the provision of the Indian Partnership Act, 1932, find the share of each partner in the above amount, taking into consideration that interest has not been provided on an advance of Rs. 20,000 by A in addition to his capital contribution.

A. Rs. 26,267 for partner B and C, and Rs. 27,466 for partner A

B. Rs. 26,667 each partner

C. Rs. 33,333 for partner A, Rs. 26,667 for partner B and Rs. 20,000 for partner C

D. Rs. 30,000 for each partner.

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46.
Accounting in modern age is regarded as:

A. the art of recording, classifying and summarising the business transactions in monetary units

B. the language of business

C. the source of business information

D. all the above

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47.
A company redeemed its 2,00,000/- preference shares. For this it issued equity share capital of Rs. 1,50,000/- and Rs. 1,00,000/- bonus shares were also issued. What will be the net effect of these transactions on fund flow

A. No effect on fund flow

B. Increase of Rs. 50,000/- in working capital

C. Decrease of Rs. 50,000/- in working capital

D. None of the above

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48.
When goods distributed as free samples and charity purpose, one of the following journal entry mentioned below is correct.

A. Closing stock account Dr - To Purchase account

B. Advertisement account Dr - To purchase account

C. Profit & loss account Dr - To advertisement account

D. Sales account Dr - To advertisement account

E. Prepaid advertisement account Dr - To advertisement account

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49.
X and Y are partners who share profit and loss in the ratio of 2 : 1, and who have capital balances (credit) of Rs. 40,000 and Rs. 30,000 respectively. If Z, with the consent of Y, acquired one-half of X's interest for Rs. 25,000, for what amount would Z's Capital Account be credited:

A. Rs. 25,000

B. Rs. 5,000

C. Rs. 15,000

D. Rs. 20,000

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50.
The main source of working capital is-

A. Public deposit

B. Shares

C. Debentures

D. Retained earnings

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. The debtors are Rs. 30,000 (before bad debts of Rs. 1,000 and provision of bad debts at 5%). A provision for discount on debtors @ 2% would be-

Answer & Solution

42. Current ratio can be increased-

Answer & Solution

43. When there is no agreement between partners for sharing profits and losses then it should be shared among partners in what ratio.

Answer & Solution

44. If minimum subscription is not received, application money should be refunded within how many days?

Answer & Solution

Answer & Solution

46. Accounting in modern age is regarded as:

Answer & Solution

47. A company redeemed its 2,00,000/- preference shares. For this it issued equity share capital of Rs. 1,50,000/- and Rs. 1,00,000/- bonus shares were also issued. What will be the net effect of these transactions on fund flow

Answer & Solution

48. When goods distributed as free samples and charity purpose, one of the following journal entry mentioned below is correct.

Answer & Solution

49. X and Y are partners who share profit and loss in the ratio of 2 : 1, and who have capital balances (credit) of Rs. 40,000 and Rs. 30,000 respectively. If Z, with the consent of Y, acquired one-half of X's interest for Rs. 25,000, for what amount would Z's Capital Account be credited:

Answer & Solution

50. The main source of working capital is-

Answer & Solution

Read More Section(Accounting)

41.
The debtors are Rs. 30,000 (before bad debts of Rs. 1,000 and provision of bad debts at 5%). A provision for discount on debtors @ 2% would be-

42.
Current ratio can be increased-

43.
When there is no agreement between partners for sharing profits and losses then it should be shared among partners in what ratio.

44.
If minimum subscription is not received, application money should be refunded within how many days?

46.
Accounting in modern age is regarded as:

47.
A company redeemed its 2,00,000/- preference shares. For this it issued equity share capital of Rs. 1,50,000/- and Rs. 1,00,000/- bonus shares were also issued. What will be the net effect of these transactions on fund flow

48.
When goods distributed as free samples and charity purpose, one of the following journal entry mentioned below is correct.

49.
X and Y are partners who share profit and loss in the ratio of 2 : 1, and who have capital balances (credit) of Rs. 40,000 and Rs. 30,000 respectively. If Z, with the consent of Y, acquired one-half of X's interest for Rs. 25,000, for what amount would Z's Capital Account be credited:

50.
The main source of working capital is-