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

81.
When a company purchases its own debentures as an investment, 'own debentures account' is debited with:

A. Paid-up value of debentures

B. Face value of debentures

C. Amount paid for such debentures

D. Amount equal to the difference between the face value of the debentures and the amount paid for such debentures

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82.
Bonus shares can be issued out of
i. General reserve
ii. Capital Gain
iii. Revaluation
iv. Profit and loss (Cre.)
Which of the following is correct

A. i or iv

B. ii or iii

C. i, ii or iv

D. ii, iii or iv

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83.
Fees paid to lawyer for drawing a purchase deed of land is which type of expenditure?

A. Capital expenditure

B. Revenue expenditure

C. Deferred revenue expenditure

D. None of the above

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84.
The partnership of R and S was dissolved. Rs. 38,000 was received from sale of all assets. Rs. 14,000 claim of all parterres were paid. If R's capital is twice of capital balance of S, then the balance of S's capital will be

A. Rs. 14,000

B. Rs. 12,000

C. Rs. 8,000

D. Rs. 6,000

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85.
Purchased a machinery for Rs. 50,000, but debited to purchases account. It is a:

A. Clerical error

B. Error of principle

C. Compensating error

D. None of the above

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86.
What should the seller do if the buyer fails to make the installments?

A. can sue the buyer

B. take back his property

C. get compensation from the buyer

D. all of the above

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87.
Which of the following are shown is profit and loss appropriation account?
1. Salary to staff
2. Salary to partners
3. Interest on capital
4. Fresh capital introduced
5. Share of profit
6. Amount of drawings
7. Interest on drawings
Select the correct answer:

A. 1, 4, 5, 6

B. 2, 3, 5, 7

C. 1, 2, 6, 7

D. 2, 3, 6, 7

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88.
A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the partnership and to distribute the sale proceeds as and when realised. The partner's capitals were:
A - Rs. 10,000, B - Rs. 9,000 and C - Rs. 5,000, B's loan amounted to Rs. 3,000, and Sundry Creditors to Rs. 6,000.
Assets realisation and expenses were as under:

Assets Realised Expenses

July Rs. 5,300 Rs. 500

August Rs. 3,600 Rs. 200

September Rs. 4,500 Rs. 300

October Rs. 4,500 Rs. 200

In September B will receive:

A. Rs. 1,400

B. Rs. 1,467

C. Rs. 1,633

D. Rs. 1,933

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89.
On dissolution of a partnership firm the debit balance of profit and loss A/c is transferred to:

A. Realisation A/c

B. Reserve A/c

C. Revalution A/c

D. Partner's Capital A/c

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90.
Nominal A/c is:

A. Wages A/c

B. Patent A/c

C. Prepaid A/c

D. All of these

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1 2 3 4 5 6 7 8 9 10

	Assets Realised	Expenses
July	Rs. 5,300	Rs. 500
August	Rs. 3,600	Rs. 200
September	Rs. 4,500	Rs. 300
October	Rs. 4,500	Rs. 200

Accounting MCQ Questions and Solutions with Explanations | Commerce

81. When a company purchases its own debentures as an investment, 'own debentures account' is debited with:

Answer & Solution

82. Bonus shares can be issued out of i. General reserve ii. Capital Gain iii. Revaluation iv. Profit and loss (Cre.) Which of the following is correct

Answer & Solution

83. Fees paid to lawyer for drawing a purchase deed of land is which type of expenditure?

Answer & Solution

84. The partnership of R and S was dissolved. Rs. 38,000 was received from sale of all assets. Rs. 14,000 claim of all parterres were paid. If R's capital is twice of capital balance of S, then the balance of S's capital will be

Answer & Solution

85. Purchased a machinery for Rs. 50,000, but debited to purchases account. It is a:

Answer & Solution

86. What should the seller do if the buyer fails to make the installments?

Answer & Solution

87. Which of the following are shown is profit and loss appropriation account? 1. Salary to staff 2. Salary to partners 3. Interest on capital 4. Fresh capital introduced 5. Share of profit 6. Amount of drawings 7. Interest on drawings Select the correct answer:

Answer & Solution

Answer & Solution

89. On dissolution of a partnership firm the debit balance of profit and loss A/c is transferred to:

Answer & Solution

90. Nominal A/c is:

Answer & Solution

Read More Section(Accounting)

81.
When a company purchases its own debentures as an investment, 'own debentures account' is debited with:

82.
Bonus shares can be issued out of
i. General reserve
ii. Capital Gain
iii. Revaluation
iv. Profit and loss (Cre.)
Which of the following is correct

83.
Fees paid to lawyer for drawing a purchase deed of land is which type of expenditure?

84.
The partnership of R and S was dissolved. Rs. 38,000 was received from sale of all assets. Rs. 14,000 claim of all parterres were paid. If R's capital is twice of capital balance of S, then the balance of S's capital will be

85.
Purchased a machinery for Rs. 50,000, but debited to purchases account. It is a:

86.
What should the seller do if the buyer fails to make the installments?

87.
Which of the following are shown is profit and loss appropriation account?
1. Salary to staff
2. Salary to partners
3. Interest on capital
4. Fresh capital introduced
5. Share of profit
6. Amount of drawings
7. Interest on drawings
Select the correct answer:

89.
On dissolution of a partnership firm the debit balance of profit and loss A/c is transferred to:

90.
Nominal A/c is: