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.
Read the following statements.
1. Financial statements are only interim reports.
2. Financial statements are prepared on the basis of realisable values.
3. The preparation of financial statements is not an ultimate aim.
4. Certain assumptions are necessary to prepare financial statements.
Which of the following combinations consists of all true statements?

A. 1, 2 and 3

B. 2, 3 and 4

C. 1, 3 and 4

D. 1, 2 and 4

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22.
In the books of lessee the unrecouped amount of short workings is transferred to

A. Royalty Account

B. Minimum Rent Account

C. Lessor's Account

D. Profit and Loss Account

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23.
X and Y were sharing profit and loss of the business in the ratio of 3 : 2. They decided to admit Z, who will get $$\frac{1}{3}$$ of X share of profit form X and $$\frac{1}{2}$$ of Y share of profit from Y. New profit sharing ratio will be

A. 3 : 2 : 5

B. 2 : 1 : 2

C. 3 : 2 : 1

D. 3 : 2 : 2

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24.
ABC Ltd was incorporated with an authorized share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The board of directors decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd?

A. Promoter's account

B. Service's account

C. Goodwill account

D. Share capital account

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25.
If vendors are issued fully paid shares of Rs. 12,000 in consideration of net assets of Rs. 9,000, then the balance of Rs. 3,000 will be

A. credited to Securities Premium A/c

B. credited to Capital Reserve A/c

C. debited to Goodwill A/c

D. debited to Profit and Loss A/c

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26.
A customer's cheque returned after being dishonored will be recorded in-

A. Purchases Return Book

B. Sales Return Book

C. Three Column Cash Book

D. Journal Proper

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27.
In holding companies dividends received out of profits of the subsidiary companies must be:

A. Debited to investment account

B. Credited to investment account

C. Debited to revenue account

D. Credited to revenue account

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28.
When a firm is dissolved, goodwill account is closed by transferring to

A. Capital account of the partners

B. Revaluation Account

C. Profit and Loss Account

D. Realisation Account

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29.
Reconstruction of a company takes place when
1. the company is undercapitalised.
2. company has incurred heavy losses which must be written off.
3. the company is overcapitalised.
Select the correct answer:

A. Both 1 and 2

B. Both 1 and 3

C. Both 2 and 3

D. All of the above

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30.
The single accounting system is

A. A accounting system in which only one account is affected at a time

B. Initial stage of double entry

C. Special accounting system for small traders

D. An incomplete accounting system

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Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

22. In the books of lessee the unrecouped amount of short workings is transferred to

Answer & Solution

23. X and Y were sharing profit and loss of the business in the ratio of 3 : 2. They decided to admit Z, who will get $$\frac{1}{3}$$ of X share of profit form X and $$\frac{1}{2}$$ of Y share of profit from Y. New profit sharing ratio will be

Answer & Solution

24. ABC Ltd was incorporated with an authorized share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The board of directors decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd?

Answer & Solution

25. If vendors are issued fully paid shares of Rs. 12,000 in consideration of net assets of Rs. 9,000, then the balance of Rs. 3,000 will be

Answer & Solution

26. A customer's cheque returned after being dishonored will be recorded in-

Answer & Solution

27. In holding companies dividends received out of profits of the subsidiary companies must be:

Answer & Solution

28. When a firm is dissolved, goodwill account is closed by transferring to

Answer & Solution

29. Reconstruction of a company takes place when 1. the company is undercapitalised. 2. company has incurred heavy losses which must be written off. 3. the company is overcapitalised. Select the correct answer:

Answer & Solution

30. The single accounting system is

Answer & Solution

Read More Section(Accounting)

22.
In the books of lessee the unrecouped amount of short workings is transferred to

23.
X and Y were sharing profit and loss of the business in the ratio of 3 : 2. They decided to admit Z, who will get $$\frac{1}{3}$$ of X share of profit form X and $$\frac{1}{2}$$ of Y share of profit from Y. New profit sharing ratio will be

24.
ABC Ltd was incorporated with an authorized share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The board of directors decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd?

25.
If vendors are issued fully paid shares of Rs. 12,000 in consideration of net assets of Rs. 9,000, then the balance of Rs. 3,000 will be

26.
A customer's cheque returned after being dishonored will be recorded in-

27.
In holding companies dividends received out of profits of the subsidiary companies must be:

28.
When a firm is dissolved, goodwill account is closed by transferring to

29.
Reconstruction of a company takes place when
1. the company is undercapitalised.
2. company has incurred heavy losses which must be written off.
3. the company is overcapitalised.
Select the correct answer:

30.
The single accounting system is