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

21.
AB Co. Ltd. forfeited Rs. 800 on 100 shares of Rs. 10 each fully paid. Out of the forfeited shares, 50 shares were issued for Rs. 5 each as fully paid. The amount to be transferred to capital reserve will be:

A. Rs. 800

B. Rs. 150

C. Rs. 650

D. Rs. 350

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22.
Which of the following is not correct in case of 'stock' of a company?
The 'stock':

A. is always fully paid

B. can be directly issued to the public by the company

C. do not bear distinctive number

D. may be of unequal amounts

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23.
X and Y are partners in a firm. They withdrew @ Rs. 1,500 and Rs. 1,000 respectively on 15^th day of every month for all the twelve months during 2009. Interest on drawings is chargable @ 10% per annum. What would be the interest on drawings respectively?

A. Rs. 1,800 and Rs. 1,200

B. Rs. 900 and Rs. 600

C. Rs. 18,000 and Rs. 12,000

D. Rs. 150 and Rs. 100

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24.
A partner in partnership

A. Cannot transfer his interest to an outsider

B. Can transfer his interest to an outsider with consent of majority of partners

C. Can transfer his interest to an outsider without consent of other partners

D. Can transfer his interest to an outsider with the consent of all partners

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25.
The going concern concept assumes the continuance of a business to

A. Infinite period

B. Reasonably long term

C. Short term

D. One year

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26.
Net purchases Rs. 72,000, Sales Rs. 76,000, Sales returns Rs. 6,000 Cost of goods sold Rs. 60,000, the amount of gross profit will be

A. Rs. 10,000

B. Rs. 12,000

C. Rs. 16,000

D. Rs. 40,000

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27.
If closing stock is shown in Trial Balance, then it should be shown in

A. Trading A/c

B. Balance Sheet

C. Cash A/c

D. Profit & Loss A/c

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28.
The term 'Funds' as used in Funds Flow Analysis means

A. Cash

B. Current assets

C. Current liabilities

D. Current assets (-) Current liabilities

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29.
Dividends are usually paid on

A. Paid up capital

B. Authorised capital

C. Called up capital

D. Issued capital

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30.
X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. The share capital of Y Ltd was Rs. 70,000, and its accumulated profits amounted to Rs. 90,000. What would be the amount of minority interest in the consolidated balance sheet?

A. Rs. 25,000

B. Rs. 70,000

C. Rs. 1,00,000

D. Rs. 40,000

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Accounting MCQ Questions and Solutions with Explanations | Commerce

21. AB Co. Ltd. forfeited Rs. 800 on 100 shares of Rs. 10 each fully paid. Out of the forfeited shares, 50 shares were issued for Rs. 5 each as fully paid. The amount to be transferred to capital reserve will be:

Answer & Solution

22. Which of the following is not correct in case of 'stock' of a company? The 'stock':

Answer & Solution

23. X and Y are partners in a firm. They withdrew @ Rs. 1,500 and Rs. 1,000 respectively on 15th day of every month for all the twelve months during 2009. Interest on drawings is chargable @ 10% per annum. What would be the interest on drawings respectively?

Answer & Solution

24. A partner in partnership

Answer & Solution

25. The going concern concept assumes the continuance of a business to

Answer & Solution

26. Net purchases Rs. 72,000, Sales Rs. 76,000, Sales returns Rs. 6,000 Cost of goods sold Rs. 60,000, the amount of gross profit will be

Answer & Solution

27. If closing stock is shown in Trial Balance, then it should be shown in

Answer & Solution

28. The term 'Funds' as used in Funds Flow Analysis means

Answer & Solution

29. Dividends are usually paid on

Answer & Solution

30. X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. The share capital of Y Ltd was Rs. 70,000, and its accumulated profits amounted to Rs. 90,000. What would be the amount of minority interest in the consolidated balance sheet?

Answer & Solution

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21.
AB Co. Ltd. forfeited Rs. 800 on 100 shares of Rs. 10 each fully paid. Out of the forfeited shares, 50 shares were issued for Rs. 5 each as fully paid. The amount to be transferred to capital reserve will be:

22.
Which of the following is not correct in case of 'stock' of a company?
The 'stock':

23.
X and Y are partners in a firm. They withdrew @ Rs. 1,500 and Rs. 1,000 respectively on 15^th day of every month for all the twelve months during 2009. Interest on drawings is chargable @ 10% per annum. What would be the interest on drawings respectively?

24.
A partner in partnership

25.
The going concern concept assumes the continuance of a business to

26.
Net purchases Rs. 72,000, Sales Rs. 76,000, Sales returns Rs. 6,000 Cost of goods sold Rs. 60,000, the amount of gross profit will be

27.
If closing stock is shown in Trial Balance, then it should be shown in

28.
The term 'Funds' as used in Funds Flow Analysis means

29.
Dividends are usually paid on

30.
X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. The share capital of Y Ltd was Rs. 70,000, and its accumulated profits amounted to Rs. 90,000. What would be the amount of minority interest in the consolidated balance sheet?