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

11.
Closing stock appearing in the Trial Balance is shown in:

A. The Balance Sheet only

B. Both Trading Account and Balance Sheet

C. Trading Account only

D. None of the above

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12.
ABC Ltd., forfeited 20 shares of Rs. 10 each on which Rs. 6 per share were paid. If out of these shares 8 shares were reissued to Hari as fully paid up on payment of Rs. 5.50 per share, the amount that will stand to the credit of Share Forfeited A/c will be

A. Rs. 48

B. Rs. 72

C. Rs. 84

D. Rs. 96

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13.
Consider the following statements:
Assertion (A): If a shareholder fails to pay the amount of one or more calls on his shares, the company may forfeit his shares.
Reason (R): Even after the forfeiture of shares, that shareholder is responsible to pay the amount due from him until the company receives full amount on those shares.
Now select your answer:

A. Both A and R are true and R is the correct explanation of A

B. Both A and R are true but R is not the correct explanation of A

C. A is true but R is false

D. A is false but R is true

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14.
Match List-I with List-II and select the correct answer:

List-I List-II

a. VED Analysis 1. Sources and uses of funds

b. Ratio Analysis 2. Inventory control

c. Funds Flow Analysis 3. Analysis & Interpretation of Financial Statement

d. Income & Expenditure Analysis 4. Non-Profit organization

A. a-1, b-4, c-2, d-3

B. a-2, b-3, c-1, d-4

C. a-1, b-3, c-2, d-4

D. a-2, b-4, c-1, d-3

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15.
The balance of Debenture Sinking Fund is finally transferred to

A. Profit and Loss account

B. Debenture Redemption Fund investment account

C. General Reserve

D. Capital Reserve

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16.
Match List I with List II and select your answer:

List-I List-II

a. Cash 1. Equity Share Capital

b. Profit 2. Fixed Assets

c. Discount on issue of Shares 3. Fictitious Assets

d. Machinery & Plant 4. Current Assets

A. a-1, b-3, c-4, d-2

B. a-4, b-1, c-3, d-2

C. a-4, b-3, c-2, d-1

D. a-2, b-3, c-1, d-4

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17.
The balance of which of the following items can also show the credit balance?

A. Cash

B. Bank

C. Investment

D. Stock

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18.
Net sales for the whole year is Rs. 2,50,000 and the debtor is Rs. 50,000, the daily average of credit sales will be

A. 60 days

B. 45 days

C. 42 days

D. 72 days

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19.
On dissolution of a firm while transferring the assets to realisation account. The realisation account is:

A. Debit

B. Credit

C. Debit or Credit

D. None of the above

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20.
In the absence of a partnership Deed, the allowable rate of interest on a partner's loan account will be:

A. 4% p.a./Annual

B. 5% p.a./Annual

C. 6% p.a./Annual

D. 7.5% p.a./Annual

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. VED Analysis	1. Sources and uses of funds
b. Ratio Analysis	2. Inventory control
c. Funds Flow Analysis	3. Analysis & Interpretation of Financial Statement
d. Income & Expenditure Analysis	4. Non-Profit organization

Accounting MCQ Questions and Solutions with Explanations | Commerce

11. Closing stock appearing in the Trial Balance is shown in:

Answer & Solution

12. ABC Ltd., forfeited 20 shares of Rs. 10 each on which Rs. 6 per share were paid. If out of these shares 8 shares were reissued to Hari as fully paid up on payment of Rs. 5.50 per share, the amount that will stand to the credit of Share Forfeited A/c will be

Answer & Solution

Answer & Solution

14. Match List-I with List-II and select the correct answer: List-I List-II a. VED Analysis 1. Sources and uses of funds b. Ratio Analysis 2. Inventory control c. Funds Flow Analysis 3. Analysis & Interpretation of Financial Statement d. Income & Expenditure Analysis 4. Non-Profit organization

Answer & Solution

15. The balance of Debenture Sinking Fund is finally transferred to

Answer & Solution

16. Match List I with List II and select your answer: List-I List-II a. Cash 1. Equity Share Capital b. Profit 2. Fixed Assets c. Discount on issue of Shares 3. Fictitious Assets d. Machinery & Plant 4. Current Assets

Answer & Solution

17. The balance of which of the following items can also show the credit balance?

Answer & Solution

18. Net sales for the whole year is Rs. 2,50,000 and the debtor is Rs. 50,000, the daily average of credit sales will be

Answer & Solution

19. On dissolution of a firm while transferring the assets to realisation account. The realisation account is:

Answer & Solution

20. In the absence of a partnership Deed, the allowable rate of interest on a partner's loan account will be:

Answer & Solution

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11.
Closing stock appearing in the Trial Balance is shown in:

12.
ABC Ltd., forfeited 20 shares of Rs. 10 each on which Rs. 6 per share were paid. If out of these shares 8 shares were reissued to Hari as fully paid up on payment of Rs. 5.50 per share, the amount that will stand to the credit of Share Forfeited A/c will be

14.
Match List-I with List-II and select the correct answer:

List-I List-II

a. VED Analysis 1. Sources and uses of funds

b. Ratio Analysis 2. Inventory control

c. Funds Flow Analysis 3. Analysis & Interpretation of Financial Statement

d. Income & Expenditure Analysis 4. Non-Profit organization

15.
The balance of Debenture Sinking Fund is finally transferred to

16.
Match List I with List II and select your answer:

List-I List-II

a. Cash 1. Equity Share Capital

b. Profit 2. Fixed Assets

c. Discount on issue of Shares 3. Fictitious Assets

d. Machinery & Plant 4. Current Assets

17.
The balance of which of the following items can also show the credit balance?

18.
Net sales for the whole year is Rs. 2,50,000 and the debtor is Rs. 50,000, the daily average of credit sales will be

19.
On dissolution of a firm while transferring the assets to realisation account. The realisation account is:

20.
In the absence of a partnership Deed, the allowable rate of interest on a partner's loan account will be: