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

91.
Which of the following transactions affects the flow of funds?

A. A transaction both aspects of which affect current accounts

B. A transaction both aspectys of which affect non-current accounts

C. A transaction one aspect of which affects current accounts and the other affects non current accounts

D. None of the above

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92.
Debit is equal to credit-

A. Sometimes true in accounting

B. Sometimes false in accounting

C. Always true in accounting

D. True in special conditions

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93.
Redeemable preference shares of Rs. 1,00,000 are redeemed at par for which purpose fresh equity shares of Rs. 80,000 are issued at a discount of 10%. The amount to be transferred to Capital Redemption Reserve Fund will be:

A. Rs. 20,000

B. Rs. 28,000

C. Rs. 1,00,000

D. Rs. 80,000

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94.
Direction-The question have two statements.
One is labelled as Assertion (A) and the other as Reason (R). You have to examine both the statements carefully and decide whether Assertion (A) and Reason (R) separately are true and if so then reason is the correct explanation of the assertion. Mark these items on the answer sheet.
Assertion (A): Interest payable on working capital should be treated as an item of operating expenses.
Reason (R): Interest is the cost of capital used in the business.

A. Both A and R are correct and R is the correct explanation of A

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

C. A is correct but R is wrong

D. A is wrong but R is correct

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95.
A firm had a Capital Balance of Rs. 1,00,000 at the beginning of a year. At the end of the year, the firm has total assets of Rs. 1,50,000 and total liabilities of Rs. 70,000. If the total withdrawals during the period were Rs. 30,000, what was the amount of net profit/net loss for the year:

A. Rs. 10,000 profit

B. Rs. 20,000 loss

C. Rs. 50,000 loss

D. Rs. 10,000 loss

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96.
A company issued debentures of Rs. 60,000 at discount of Rs. 3,000 on 1^st April 1996. they are repayable in 3 equal instalments each on 31^st March, every year. The financial year of the company ends on 31^st December every year. How much discount will be written off in the second year:

A. Rs. 1,000

B. Rs. 625

C. Rs. 1,500

D. Rs. 1,125

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97.
M. Ltd. forfeited 50 shares of Rs. 100 each issued to X (Rs. 80 called up) on which the allotment money of Rs. 30 and the first call money of Rs. 20 have not been received. The company reissued these shares @ Rs. 90 per share as fully paid up. The amount to be transferred to Capital Reserve Account would be:

A. Rs. 500

B. Rs. 1,000

C. Rs. 1,500

D. Rs. 2,000

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98.
Capital, at the beginning of the accounting year, is ascertained by preparing

A. Debtor account

B. Cash account

C. Statement of affairs

D. None of the above

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99.
As per Section 37 of the Indian Partnership Act 1932, the executors of a deceased partner would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the partner at . . . . . . . . per annum.

A. 12%

B. 10%

C. 6%

D. 5%

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100.
Which of the following are the applications of funds?
1. Redemption of preference share capital
2. Payment of dividend
3. Increase in working capital

A. Only 1 and 2

B. Only 2 and 3

C. Only 1 and 3

D. All of the above

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Accounting MCQ Questions and Solutions with Explanations | Commerce

91. Which of the following transactions affects the flow of funds?

Answer & Solution

92. Debit is equal to credit-

Answer & Solution

93. Redeemable preference shares of Rs. 1,00,000 are redeemed at par for which purpose fresh equity shares of Rs. 80,000 are issued at a discount of 10%. The amount to be transferred to Capital Redemption Reserve Fund will be:

Answer & Solution

Answer & Solution

95. A firm had a Capital Balance of Rs. 1,00,000 at the beginning of a year. At the end of the year, the firm has total assets of Rs. 1,50,000 and total liabilities of Rs. 70,000. If the total withdrawals during the period were Rs. 30,000, what was the amount of net profit/net loss for the year:

Answer & Solution

96. A company issued debentures of Rs. 60,000 at discount of Rs. 3,000 on 1st April 1996. they are repayable in 3 equal instalments each on 31st March, every year. The financial year of the company ends on 31st December every year. How much discount will be written off in the second year:

Answer & Solution

Answer & Solution

98. Capital, at the beginning of the accounting year, is ascertained by preparing

Answer & Solution

99. As per Section 37 of the Indian Partnership Act 1932, the executors of a deceased partner would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the partner at . . . . . . . . per annum.

Answer & Solution

100. Which of the following are the applications of funds? 1. Redemption of preference share capital 2. Payment of dividend 3. Increase in working capital

Answer & Solution

Read More Section(Accounting)

91.
Which of the following transactions affects the flow of funds?

92.
Debit is equal to credit-

93.
Redeemable preference shares of Rs. 1,00,000 are redeemed at par for which purpose fresh equity shares of Rs. 80,000 are issued at a discount of 10%. The amount to be transferred to Capital Redemption Reserve Fund will be:

95.
A firm had a Capital Balance of Rs. 1,00,000 at the beginning of a year. At the end of the year, the firm has total assets of Rs. 1,50,000 and total liabilities of Rs. 70,000. If the total withdrawals during the period were Rs. 30,000, what was the amount of net profit/net loss for the year:

96.
A company issued debentures of Rs. 60,000 at discount of Rs. 3,000 on 1^st April 1996. they are repayable in 3 equal instalments each on 31^st March, every year. The financial year of the company ends on 31^st December every year. How much discount will be written off in the second year:

98.
Capital, at the beginning of the accounting year, is ascertained by preparing

99.
As per Section 37 of the Indian Partnership Act 1932, the executors of a deceased partner would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the partner at . . . . . . . . per annum.

100.
Which of the following are the applications of funds?
1. Redemption of preference share capital
2. Payment of dividend
3. Increase in working capital