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

41.
X and Y are partners in a firm who share profits and losses in 2 : 1. their capital balance are Rs. 50,000 and Rs. 30,000 respectively. If Z with consent of Y takes half of the share of X for Rs. 30,000 then Z's capital account will be credited by what amount.

A. Rs. 25,000

B. Rs. 5,000

C. Rs. 15,000

D. Rs. 20,000

Answer & Solution Discuss in Board Save for Later

42.
The entity concept of Accounting is applicable to:

A. Sole Proprietary Concern

B. Partnership Firm

C. Joint Stock Company

D. All of the aforesaid

Answer & Solution Discuss in Board Save for Later

43.
Machinery purchased in the journal entry for the transaction, machinery account will be

A. Debited

B. Credited

C. Debited and Credited

D. None of the above

Answer & Solution Discuss in Board Save for Later

44.
A and B are partners sharing profit and loss in the ratio of 4 : 3. They admit C to the partnership for $$\frac{1}{5}$$ profit of the firm to be borne $$\frac{3}{{20}}$$ by A and $$\frac{1}{{20}}$$ by B. The new profit sharing ratio of A, B and C will be:

A. 15 : 13 : 7

B. 23 : 17 : 10

C. 33 : 23 : 14

D. 59 : 53 : 28

Answer & Solution Discuss in Board Save for Later

45.
Match the items of List-I with those of List-II and indicate the correct answer:

List-I List-II

a. AS-6 1. Accounting for consolidated financial statements

b. As-3 2. Accounting for fixed assets

c. AS-10 3. Depreciation accounting

d. AS-21 4. Accounting for cash flow statement

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

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

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

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

Answer & Solution Discuss in Board Save for Later

46.
A company bought assets worth Rs. 3,60,000 and in lieu issued debentures of Rs. 100 each at a discount of 10%. The number of debentures issued will be:

A. 3,900

B. 3,600

C. 3,000

D. 4,000

Answer & Solution Discuss in Board Save for Later

47.
Discount allowed on issue of shares is an example of

A. Capital Expenditure

B. Deferred Revenue Expenditure

C. Revenue Expenditure

D. Accrued Income

Answer & Solution Discuss in Board Save for Later

48.
Amount set apart to meet probable losses on account of bad debts is a:

A. Liability

B. Reserve

C. Provision

D. Contingent liability

Answer & Solution Discuss in Board Save for Later

49.
Assertion (A) Sinking fund is a charge against profit and loss account.
Reason (R) Sinking fund is created for repayment of a long-term liability.

A. (A) is true, but (R) false

B. Both (A) and (R) are true

C. (A) is false, but (R) true

D. Both (A) and (R) are false

Answer & Solution Discuss in Board Save for Later

50.
In case of dissolution of a firm, in which order the following creditors should be paid?
1. Creditors having floating charge on the assets of the firm
2. Remuneration of liquidator
3. Provident fund money payable to employees
4. Bank overdraft

A. 1, 2, 3, 4

B. 1, 3, 4, 2

C. 2, 3, 4, 1

D. 2, 3, 1, 4

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. AS-6	1. Accounting for consolidated financial statements
b. As-3	2. Accounting for fixed assets
c. AS-10	3. Depreciation accounting
d. AS-21	4. Accounting for cash flow statement

Accounting MCQ Questions and Solutions with Explanations | Commerce

41. X and Y are partners in a firm who share profits and losses in 2 : 1. their capital balance are Rs. 50,000 and Rs. 30,000 respectively. If Z with consent of Y takes half of the share of X for Rs. 30,000 then Z's capital account will be credited by what amount.

Answer & Solution

42. The entity concept of Accounting is applicable to:

Answer & Solution

43. Machinery purchased in the journal entry for the transaction, machinery account will be

Answer & Solution

44. A and B are partners sharing profit and loss in the ratio of 4 : 3. They admit C to the partnership for $$\frac{1}{5}$$ profit of the firm to be borne $$\frac{3}{{20}}$$ by A and $$\frac{1}{{20}}$$ by B. The new profit sharing ratio of A, B and C will be:

Answer & Solution

45. Match the items of List-I with those of List-II and indicate the correct answer: List-I List-II a. AS-6 1. Accounting for consolidated financial statements b. As-3 2. Accounting for fixed assets c. AS-10 3. Depreciation accounting d. AS-21 4. Accounting for cash flow statement

Answer & Solution

46. A company bought assets worth Rs. 3,60,000 and in lieu issued debentures of Rs. 100 each at a discount of 10%. The number of debentures issued will be:

Answer & Solution

47. Discount allowed on issue of shares is an example of

Answer & Solution

48. Amount set apart to meet probable losses on account of bad debts is a:

Answer & Solution

49. Assertion (A) Sinking fund is a charge against profit and loss account. Reason (R) Sinking fund is created for repayment of a long-term liability.

Answer & Solution

50. In case of dissolution of a firm, in which order the following creditors should be paid? 1. Creditors having floating charge on the assets of the firm 2. Remuneration of liquidator 3. Provident fund money payable to employees 4. Bank overdraft

Answer & Solution

Read More Section(Accounting)

41.
X and Y are partners in a firm who share profits and losses in 2 : 1. their capital balance are Rs. 50,000 and Rs. 30,000 respectively. If Z with consent of Y takes half of the share of X for Rs. 30,000 then Z's capital account will be credited by what amount.

42.
The entity concept of Accounting is applicable to:

43.
Machinery purchased in the journal entry for the transaction, machinery account will be

44.
A and B are partners sharing profit and loss in the ratio of 4 : 3. They admit C to the partnership for $$\frac{1}{5}$$ profit of the firm to be borne $$\frac{3}{{20}}$$ by A and $$\frac{1}{{20}}$$ by B. The new profit sharing ratio of A, B and C will be:

45.
Match the items of List-I with those of List-II and indicate the correct answer:

List-I List-II

a. AS-6 1. Accounting for consolidated financial statements

b. As-3 2. Accounting for fixed assets

c. AS-10 3. Depreciation accounting

d. AS-21 4. Accounting for cash flow statement

46.
A company bought assets worth Rs. 3,60,000 and in lieu issued debentures of Rs. 100 each at a discount of 10%. The number of debentures issued will be:

47.
Discount allowed on issue of shares is an example of

48.
Amount set apart to meet probable losses on account of bad debts is a:

49.
Assertion (A) Sinking fund is a charge against profit and loss account.
Reason (R) Sinking fund is created for repayment of a long-term liability.

50.
In case of dissolution of a firm, in which order the following creditors should be paid?
1. Creditors having floating charge on the assets of the firm
2. Remuneration of liquidator
3. Provident fund money payable to employees
4. Bank overdraft