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

61.
50,000 equity shares of Rs. 10 each, issued at Rs. 20, for the purpose of redemption of preference share capital amounting Rs. 7,50,000. How much amount will be transferred to capital redemption reserve?

A. Rs. 2,00,000

B. Rs. 2,50,000

C. Rs. 5,00,000

D. Rs. 10,00,000

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62.
A and B are partners sharing profits and losses in proportion 2 : 1. They admits new partner C hom they give $${\frac{1}{5}^{{\text{th}}}}$$ share in profits. The new profit sharing ratio will be:

A. 8 : 4 : 3

B. 3 : 2 : 1

C. 2 : 1 : 1

D. 4 : 2 : 1

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63.
If current ratio is 2.5, acid test ratio is 1.5 and net working capital is Rs. 45,000, the amount of current liabilities will be:

A. Rs. 15,000

B. Rs. 45,000

C. Rs. 30,000

D. Rs. 75,000

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64.
Dissolution of a firm takes place-

A. by the death of any one of the partner

B. by the retirement of any one of the partner

C. by the insolvency of any one of the partner

D. by the insolvency of all but except one partner

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65.
Over capitalisation may be remedied by:

A. increasing the number of equity shares

B. increasing the par value of shares

C. issuing additional preference shares

D. redemption of debentures

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66.
Statement I Capital expenditure benefits the current accounting period.
Statement II Capital expenditure will also benefit the next accounting period.

A. Both statements are correct

B. Both statements are incorrect

C. Statement I is correct, but statement II is incorrect

D. Statement I is incorrect, but statement II is correct

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67.
After redemption of debentures, the balance of Debenture Redemption Reserve Account is transferred to

A. Capital Reserve Account

B. General Reserve Account

C. Sinking Fund Account

D. Profit and Loss Account

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68.
A dominant partner is one:

A. Who has a smaller financial interest in the business

B. Who represents himself as a partner of holding out

C. Who neither contributes any capital nor takes any active part in the management

D. A partner who has larger financial interest in the business

E. Who is not known to the outsiders but possesses real interest in the business and share in the profits of the business

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69.
The lower stock is the periodic indicator-

A. Over investment in stock/inventory

B. Monpoly position

C. Payment/clearing status/position

D. Overtrading

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70.
An 'insolvent' is a person who is

A. Unable to pay his daily expenses

B. Does not pay his taxes

C. Takes loan and refuses to pay

D. Unable to pay his depts

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Accounting MCQ Questions and Solutions with Explanations | Commerce

61. 50,000 equity shares of Rs. 10 each, issued at Rs. 20, for the purpose of redemption of preference share capital amounting Rs. 7,50,000. How much amount will be transferred to capital redemption reserve?

Answer & Solution

62. A and B are partners sharing profits and losses in proportion 2 : 1. They admits new partner C hom they give $${\frac{1}{5}^{{\text{th}}}}$$ share in profits. The new profit sharing ratio will be:

Answer & Solution

63. If current ratio is 2.5, acid test ratio is 1.5 and net working capital is Rs. 45,000, the amount of current liabilities will be:

Answer & Solution

64. Dissolution of a firm takes place-

Answer & Solution

65. Over capitalisation may be remedied by:

Answer & Solution

66. Statement I Capital expenditure benefits the current accounting period. Statement II Capital expenditure will also benefit the next accounting period.

Answer & Solution

67. After redemption of debentures, the balance of Debenture Redemption Reserve Account is transferred to

Answer & Solution

68. A dominant partner is one:

Answer & Solution

69. The lower stock is the periodic indicator-

Answer & Solution

70. An 'insolvent' is a person who is

Answer & Solution

Read More Section(Accounting)

61.
50,000 equity shares of Rs. 10 each, issued at Rs. 20, for the purpose of redemption of preference share capital amounting Rs. 7,50,000. How much amount will be transferred to capital redemption reserve?

62.
A and B are partners sharing profits and losses in proportion 2 : 1. They admits new partner C hom they give $${\frac{1}{5}^{{\text{th}}}}$$ share in profits. The new profit sharing ratio will be:

63.
If current ratio is 2.5, acid test ratio is 1.5 and net working capital is Rs. 45,000, the amount of current liabilities will be:

64.
Dissolution of a firm takes place-

65.
Over capitalisation may be remedied by:

66.
Statement I Capital expenditure benefits the current accounting period.
Statement II Capital expenditure will also benefit the next accounting period.

67.
After redemption of debentures, the balance of Debenture Redemption Reserve Account is transferred to

68.
A dominant partner is one:

69.
The lower stock is the periodic indicator-

70.
An 'insolvent' is a person who is