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

31.
Assertion (A) Accounting information refers to only events which are concerned with business firm.
Reason (R) Accounting information is presented in financial statements.

A. Both (A) and (R) are true and (R) is the correct explanation of (A)

B. Both (A) and (R) are true and R is not the correct explanation of (A)

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

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

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32.
Which method has been specially designed to provide funds for replacement of assets?

A. Depreciation at replacement price method

B. Depreciation fund method

C. Depletion mehtod

D. Sum of year's digits mehtod

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33.
Which of the following transactions are of capital nature?

A. Replacement of old tyres and tubes by new ones

B. Purchase of truck by a company

C. Cost of painting the old building

D. All the above

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34.
Capital at the beginning of the year Rs. 10,500, Annual drawing Rs. 6,500, Additional capital introduced during the year Rs. 3,500. What will be capital at the end if there is no profit or loss?

A. Rs. 7,500

B. Rs. 13,500

C. Rs. 20,500

D. Rs. 500

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35.
The unfavourable balance of Profit and Loss Account should be:

A. Added in liabilities

B. Substracted from assets

C. Substracted from capital

D. None of the above

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36.
X, Y and Z share profit and losses in the ratio of 5 : 3 : 2, Z retires and his share is taken by X and Y in the ratio of 1 : 2. The new profit-loss sharing ratio between X and Y will be:

A. 17 : 13

B. 11 : 7

C. 10 : 7

D. 6 : 5

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37.
Match List-I with List-II and select your answer:

List-I List-II

a. Shareholders 1. Creditors of the company

b. Debenture holders 2. Paid at the end of a predetermined period

c. Redeemable Debenture 3. Joint owners of the company

d. Bearer 4. Transferred by Debenture mere delivery

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

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

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

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

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38.
On dissolution of a firm, the balance of provision for Bad Debts Account is transferred to:

A. General Reserve Account

B. Debtors Account

C. Realisation Account

D. Partner's Capital Account

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39.
A company, A Ltd., issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares, and pro-rata allotments were made on the applications of 2,400 shares. If A was allotted 40 shares, for how many shares he must have applied?

A. 40

B. 44

C. 48

D. 52

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40.
Suspense Account is shown in-

A. Trading Account

B. Profit and Loss Account

C. Balance Sheet

D. Not shown anywhere

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Shareholders	1. Creditors of the company
b. Debenture holders	2. Paid at the end of a predetermined period
c. Redeemable Debenture	3. Joint owners of the company
d. Bearer	4. Transferred by Debenture mere delivery

Accounting MCQ Questions and Solutions with Explanations | Commerce

31. Assertion (A) Accounting information refers to only events which are concerned with business firm. Reason (R) Accounting information is presented in financial statements.

Answer & Solution

32. Which method has been specially designed to provide funds for replacement of assets?

Answer & Solution

33. Which of the following transactions are of capital nature?

Answer & Solution

34. Capital at the beginning of the year Rs. 10,500, Annual drawing Rs. 6,500, Additional capital introduced during the year Rs. 3,500. What will be capital at the end if there is no profit or loss?

Answer & Solution

35. The unfavourable balance of Profit and Loss Account should be:

Answer & Solution

36. X, Y and Z share profit and losses in the ratio of 5 : 3 : 2, Z retires and his share is taken by X and Y in the ratio of 1 : 2. The new profit-loss sharing ratio between X and Y will be:

Answer & Solution

37. Match List-I with List-II and select your answer: List-I List-II a. Shareholders 1. Creditors of the company b. Debenture holders 2. Paid at the end of a predetermined period c. Redeemable Debenture 3. Joint owners of the company d. Bearer 4. Transferred by Debenture mere delivery

Answer & Solution

38. On dissolution of a firm, the balance of provision for Bad Debts Account is transferred to:

Answer & Solution

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

Answer & Solution

40. Suspense Account is shown in-

Answer & Solution

Read More Section(Accounting)

31.
Assertion (A) Accounting information refers to only events which are concerned with business firm.
Reason (R) Accounting information is presented in financial statements.

32.
Which method has been specially designed to provide funds for replacement of assets?

33.
Which of the following transactions are of capital nature?

34.
Capital at the beginning of the year Rs. 10,500, Annual drawing Rs. 6,500, Additional capital introduced during the year Rs. 3,500. What will be capital at the end if there is no profit or loss?

35.
The unfavourable balance of Profit and Loss Account should be:

36.
X, Y and Z share profit and losses in the ratio of 5 : 3 : 2, Z retires and his share is taken by X and Y in the ratio of 1 : 2. The new profit-loss sharing ratio between X and Y will be:

37.
Match List-I with List-II and select your answer:

List-I List-II

a. Shareholders 1. Creditors of the company

b. Debenture holders 2. Paid at the end of a predetermined period

c. Redeemable Debenture 3. Joint owners of the company

d. Bearer 4. Transferred by Debenture mere delivery

38.
On dissolution of a firm, the balance of provision for Bad Debts Account is transferred to:

39.
A company, A Ltd., issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares, and pro-rata allotments were made on the applications of 2,400 shares. If A was allotted 40 shares, for how many shares he must have applied?

40.
Suspense Account is shown in-