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.
Profit prior to incorporation of a company:

A. can be paid as dividend

B. cannot be paid as dividend

C. can be used for revenue expenses

D. none of the above

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42.
A and B are partner in partnership firm. They admitted C for $${\frac{1}{4}^{{\text{th}}}}$$ share in profit. New profit sharing ratio between A, B and C is

A. 3 : 2 : 1

B. 3 : 1 : 2

C. 3 : 3 : 2

D. 3 : 3 : 3

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43.
Discount on issue of debenture should be shown in

A. Asset side of balance sheet

B. Liabilities side of balance sheet

C. Dr. side of profit and loss account

D. Cr. side of profit and loss account

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44.
Which of the following is not the responsibility centre for control purposes?

A. Cost centre

B. Profit centre

C. Investment centre

D. Efficiency centre

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45.
Advance payment of Income tax should be shown as

A. Debit side of profit and loss a/c

B. Asset side of balance sheet

C. Liabilities side of balance sheet

D. Credit side of profit and loss a/c

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46.
For what, a company may utilise the securities premium amount?

A. Writing off the discount on the issue of debentures

B. Writing off any loss of revenue nature

C. Writing off any loss on sale offixed assets

D. Payment of dividends

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47.
With the help of following information calculate provisions for bad and doubtful debts
Debtors M: Rs. 3,200 Bad to be written off
Debtors N: Rs. 8,000 expeected to realise only 70%
Debtors O: Rs. 6,000 expected to realise only 60%
Debtors P: Rs. 4,000 financial condition very poor, no recovery is likely

A. Rs. 8,800

B. Rs. 12,000

C. Rs. 4,800

D. Rs. 4,000

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48.
Which of the following accounting principles differentiates between owner and management

A. Business Entity

B. Going Concern

C. Dual Aspect

D. None of these

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49.
Arrange the following liabilities in the order of company's balance sheet.
1. Bank Overdraft
2. Bank Loan
3. Share Capital
4. Provision for Taxation

A. 1, 2, 3, 4

B. 4, 3, 2, 1

C. 3, 2, 1, 4

D. 3, 2, 4, 1

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50.
X and Y are partners in a firm having capital balances Rs. 1,08,000 and Rs. 72,000, respectively. They admit Z into a partnership for $${\frac{1}{3}^{{\text{rd}}}}$$ share, and Z brings proportion ate amount of capital. The capital amount of Z is

A. Rs. 22,500

B. Rs. 90,000

C. Rs. 1,80,000

D. Rs. 54,000

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. Profit prior to incorporation of a company:

Answer & Solution

42. A and B are partner in partnership firm. They admitted C for $${\frac{1}{4}^{{\text{th}}}}$$ share in profit. New profit sharing ratio between A, B and C is

Answer & Solution

43. Discount on issue of debenture should be shown in

Answer & Solution

44. Which of the following is not the responsibility centre for control purposes?

Answer & Solution

45. Advance payment of Income tax should be shown as

Answer & Solution

46. For what, a company may utilise the securities premium amount?

Answer & Solution

Answer & Solution

48. Which of the following accounting principles differentiates between owner and management

Answer & Solution

49. Arrange the following liabilities in the order of company's balance sheet. 1. Bank Overdraft 2. Bank Loan 3. Share Capital 4. Provision for Taxation

Answer & Solution

50. X and Y are partners in a firm having capital balances Rs. 1,08,000 and Rs. 72,000, respectively. They admit Z into a partnership for $${\frac{1}{3}^{{\text{rd}}}}$$ share, and Z brings proportion ate amount of capital. The capital amount of Z is

Answer & Solution

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41.
Profit prior to incorporation of a company:

42.
A and B are partner in partnership firm. They admitted C for $${\frac{1}{4}^{{\text{th}}}}$$ share in profit. New profit sharing ratio between A, B and C is

43.
Discount on issue of debenture should be shown in

44.
Which of the following is not the responsibility centre for control purposes?

45.
Advance payment of Income tax should be shown as

46.
For what, a company may utilise the securities premium amount?

48.
Which of the following accounting principles differentiates between owner and management

49.
Arrange the following liabilities in the order of company's balance sheet.
1. Bank Overdraft
2. Bank Loan
3. Share Capital
4. Provision for Taxation

50.
X and Y are partners in a firm having capital balances Rs. 1,08,000 and Rs. 72,000, respectively. They admit Z into a partnership for $${\frac{1}{3}^{{\text{rd}}}}$$ share, and Z brings proportion ate amount of capital. The capital amount of Z is