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

71.
The amount received over and above the par value is credited to which account?

A. Share Capital A/c

B. Calls-in-advance A/c

C. Securities Premium A/c

D. Share Forfeiture A/c

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72.
A Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares and pro-data allotment was made on the applications of 2,400 shares. If A has been allotted 40 shares, how many shares he must have applied for ?

A. 40

B. 44

C. 48

D. 52

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73.
Business means

A. Commerce

B. Industry and commerce

C. Trade and commerce

D. Buying and selling of goods

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74.
Which of the following is not a capital gain:

A. Profit prior to incorporation of the company

B. Profit from the sale of fixed assets

C. Premium on issue of shares

D. Compensation received on the termination of a contract

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75.
A and B are partners in a firm sharing profit and loss in the ratio of 3 : 2. They admit C into partnership for $${\frac{1}{4}^{{\text{th}}}}$$ share and the new ratio between A and B is 2 : 1. The sacrificing ratio is

A. 1 : 1

B. 2 : 1

C. 3 : 1

D. 2 : 3

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76.
Profit sharing ratio of A, B and C is $$\frac{1}{2},\,\frac{3}{{10}}$$ and $$\frac{1}{5}$$ respectively C dies. What will be profit haring ratio between A and B?

A. 3 : 1

B. 2 : 1

C. 3 : 2

D. 5 : 3

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77.
The application of the concept of conservatism in accounting:

A. results in higher profits and lower liabilities

B. requires the accountant not to anticipate profits, but to provide for all possible losses

C. required the managers always to match effort to accomplishment

D. does not allow any deviation from the policies or practices followed in the past

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78.
Security premium account can be used for which of the following purpose?

A. Write-off discount on issue of debenture of company

B. Write-off preliminary expenses of the compnay

C. Issue of bonus share

D. All of the above

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79.
The convention of conservatism when applied to a Balance Sheet results in:

A. overstatement of assets

B. overstatement of liabilities

C. understatement of assets

D. understatement of liabilities

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80.
A, B and C were partners in a business who shared profits and losses in the ratio of $$\frac{1}{5}:\,\frac{1}{3}:\,\frac{7}{{15}}$$ respectively. C retired and his share was purchased by A and B in the ratio of 3 : 2. The new profit sharing ratio of A and B will be:

A. 13 : 12

B. 12 : 15

C. 12 : 13

D. 14 : 15

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Accounting MCQ Questions and Solutions with Explanations | Commerce

71. The amount received over and above the par value is credited to which account?

Answer & Solution

72. A Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares and pro-data allotment was made on the applications of 2,400 shares. If A has been allotted 40 shares, how many shares he must have applied for ?

Answer & Solution

73. Business means

Answer & Solution

74. Which of the following is not a capital gain:

Answer & Solution

75. A and B are partners in a firm sharing profit and loss in the ratio of 3 : 2. They admit C into partnership for $${\frac{1}{4}^{{\text{th}}}}$$ share and the new ratio between A and B is 2 : 1. The sacrificing ratio is

Answer & Solution

76. Profit sharing ratio of A, B and C is $$\frac{1}{2},\,\frac{3}{{10}}$$ and $$\frac{1}{5}$$ respectively C dies. What will be profit haring ratio between A and B?

Answer & Solution

77. The application of the concept of conservatism in accounting:

Answer & Solution

78. Security premium account can be used for which of the following purpose?

Answer & Solution

79. The convention of conservatism when applied to a Balance Sheet results in:

Answer & Solution

80. A, B and C were partners in a business who shared profits and losses in the ratio of $$\frac{1}{5}:\,\frac{1}{3}:\,\frac{7}{{15}}$$ respectively. C retired and his share was purchased by A and B in the ratio of 3 : 2. The new profit sharing ratio of A and B will be:

Answer & Solution

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71.
The amount received over and above the par value is credited to which account?

72.
A Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares and pro-data allotment was made on the applications of 2,400 shares. If A has been allotted 40 shares, how many shares he must have applied for ?

73.
Business means

74.
Which of the following is not a capital gain:

75.
A and B are partners in a firm sharing profit and loss in the ratio of 3 : 2. They admit C into partnership for $${\frac{1}{4}^{{\text{th}}}}$$ share and the new ratio between A and B is 2 : 1. The sacrificing ratio is

76.
Profit sharing ratio of A, B and C is $$\frac{1}{2},\,\frac{3}{{10}}$$ and $$\frac{1}{5}$$ respectively C dies. What will be profit haring ratio between A and B?

77.
The application of the concept of conservatism in accounting:

78.
Security premium account can be used for which of the following purpose?

79.
The convention of conservatism when applied to a Balance Sheet results in:

80.
A, B and C were partners in a business who shared profits and losses in the ratio of $$\frac{1}{5}:\,\frac{1}{3}:\,\frac{7}{{15}}$$ respectively. C retired and his share was purchased by A and B in the ratio of 3 : 2. The new profit sharing ratio of A and B will be: