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.
Bad Debt in Departmental Accounts is:

A. Charged to general Profit and Loss Account

B. Divided equally amongst the department

C. Divided on the basis of debtors

D. Divided on the basis of credit sales

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22.
According to the money measurement concept, which among the following will be recorded in the books of account of the business:

A. Health of managing director of the company

B. Quality of company's goods

C. Value of plant and machinery

D. None of these

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23.
A and B are partners in a firm and share profits and losses in the ratio of 3 : 2. C joins firm as new partner and contributes Rs. 6,000 as premium for goodwill in cash. Here, the premium for goodwill shall be shared by A and B on the basis of new profit sharing ratio, that is 5 : 3 : 2 as

A. Rs. 3,600 : Rs. 2,400

B. Rs. 3,000 : Rs. 3,000

C. Rs. 2,400 : Rs. 3,600

D. Rs. 2,000 : Rs. 4,000

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24.
Given
Opening stock - Rs. 5,000
Closing stock - Rs. 7,000
Purchases - Rs. 10,000
Manufacturing expenses - Rs. 20,000
Loss of meterials by fire - Rs. 1,000
Manufacturing cost will be:

A. Rs. 28,000

B. Rs. 29,000

C. Rs. 27,000

D. Rs. 30,000

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25.
The total average cost of a firm on producing 5 units is Rs. 30/- and the average cost of producing 6 units is Rs. 32/-. The marginal cost of production of the sixth unit will be

A. Rs. 2

B. Rs. 12

C. Rs. 32

D. Rs. 42

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26.
A company can pay dividends out of

A. Money provided by the government for such purpose

B. Share premium account

C. Any of the above

D. None of the above

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27.
When a company buys its own debenture as an investment, the debenture account is debited with

A. Face value of debenture

B. Paid-up value of debentures

C. Prepaid amount on debenture

D. Difference between fall value and paid-up value on debenture

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28.
Which one of the following does not consititute a Current Liability:

A. Bills payable

B. Contingent liability

C. Trade creditors

D. Interest outstanding on debentures

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29.
Share premium received by issuing shares can be used for:

A. Payment of dividends

B. Issue of bonus shares

C. Remuneration to management

D. Any other business Purpose

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30.
The discount allowed on reissue of forfeited shares is debited to

A. Share Capital A/c

B. Profit and Loss A/c

C. Capital Redemption Reserve A/c

D. Forfeited Shares A/c

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Accounting MCQ Questions and Solutions with Explanations | Commerce

21. Bad Debt in Departmental Accounts is:

Answer & Solution

22. According to the money measurement concept, which among the following will be recorded in the books of account of the business:

Answer & Solution

23. A and B are partners in a firm and share profits and losses in the ratio of 3 : 2. C joins firm as new partner and contributes Rs. 6,000 as premium for goodwill in cash. Here, the premium for goodwill shall be shared by A and B on the basis of new profit sharing ratio, that is 5 : 3 : 2 as

Answer & Solution

24. Given Opening stock - Rs. 5,000 Closing stock - Rs. 7,000 Purchases - Rs. 10,000 Manufacturing expenses - Rs. 20,000 Loss of meterials by fire - Rs. 1,000 Manufacturing cost will be:

Answer & Solution

25. The total average cost of a firm on producing 5 units is Rs. 30/- and the average cost of producing 6 units is Rs. 32/-. The marginal cost of production of the sixth unit will be

Answer & Solution

26. A company can pay dividends out of

Answer & Solution

27. When a company buys its own debenture as an investment, the debenture account is debited with

Answer & Solution

28. Which one of the following does not consititute a Current Liability:

Answer & Solution

29. Share premium received by issuing shares can be used for:

Answer & Solution

30. The discount allowed on reissue of forfeited shares is debited to

Answer & Solution

Read More Section(Accounting)

21.
Bad Debt in Departmental Accounts is:

22.
According to the money measurement concept, which among the following will be recorded in the books of account of the business:

23.
A and B are partners in a firm and share profits and losses in the ratio of 3 : 2. C joins firm as new partner and contributes Rs. 6,000 as premium for goodwill in cash. Here, the premium for goodwill shall be shared by A and B on the basis of new profit sharing ratio, that is 5 : 3 : 2 as

24.
Given
Opening stock - Rs. 5,000
Closing stock - Rs. 7,000
Purchases - Rs. 10,000
Manufacturing expenses - Rs. 20,000
Loss of meterials by fire - Rs. 1,000
Manufacturing cost will be:

25.
The total average cost of a firm on producing 5 units is Rs. 30/- and the average cost of producing 6 units is Rs. 32/-. The marginal cost of production of the sixth unit will be

26.
A company can pay dividends out of

27.
When a company buys its own debenture as an investment, the debenture account is debited with

28.
Which one of the following does not consititute a Current Liability:

29.
Share premium received by issuing shares can be used for:

30.
The discount allowed on reissue of forfeited shares is debited to