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This section includes 7 InterviewSolutions, each offering curated multiple-choice questions to sharpen your Current Affairs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Wellness Ltd. issued 2,000 shares of Rs.10 each at a premium of Rs.2 per share payable as follows: |
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Answer» Question no 72 Please answer this question. |
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| 2. |
Excess of credit side over the debit side in Revaluation Account is- (A) Profit (B) Loss (C) Receipt (D) Expense |
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Answer» Correct option is: (A) Profit |
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| 3. |
Under super profit basis goodwill is calculated by.(a) No of years purchase x average profit(b) No of years purchased x super profit(c) Super profit ÷ expected rate of return(d) None of these |
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Answer» Under super profit basis goodwill is calculated by No of years purchased x super profit. |
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| 4. |
Expand NPSR.Profit or loss on revaluation is shared among all partners on retirement. State True / False. The legal representative of a decreased partner in a partnership firm is called |
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Answer» please answer the questions
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| 5. |
The total capitalized value of business is Rs. 1,00,000 assets are Rs. 1,50,000; and the liabilities are Rs. 80,000; the value of goodwill as per the capitalization method will be ________. (a) Rs. 40,000 (b) Rs. 90,000 (c) Rs. 1,00,000 (d) Rs. 30,000 |
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Answer» (d) Rs. 30,000 |
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| 6. |
Excess of the credit side over the debit side of revaluation account.(a) Profit (b) Loss(c) Gain(d) Expense |
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Answer» Excess of the credit side over the debit side of revaluation account Profit |
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| 7. |
On the admission of a new partner the decrease in the value of assets is debited to.(a) Profit and loss adtustment A/C(b) Assets account(c) Old partner’s capital Account(d) None of these |
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Answer» On the admission of a new partner the decrease in the value of assets is debited to Profit and loss adtustment A/C |
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| 8. |
Book profit of 2017 is Rs. 35000; non-recuring income included in the profit is Rs.1000 and abnormal loss charged in the year was Rs. 2000 then the adjusted profit is ________. (a) Rs. 36,000 (b) Rs. 35,000 (c) Rs. 38,000 (d) Rs. 34,000 |
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Answer» (a) Rs.36,000 |
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| 9. |
At the time of retirement of a partner, determination of gaining ratio is required ______. (a) To transfer revaluation profit or loss (b) To distribute accumulated profits and losses (c) To adjust goodwill (d) None of these |
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Answer» (c) To adjust goodwill |
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| 10. |
On the admission of a new partner increase in the value of assets is debited to(a) Revaluation Account(b) Assets Account(c) Old partner capital A/C(d) None of these |
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Answer» On the admission of a new partner increase in the value of assets is debited to Assets Account |
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| 11. |
Book profit of 2017 is Rs. 35,000; Non-recurring income included in the profit is Rs. 1,000; and abnormal loss was Rs. 2,000 then the he adjusted profit is _______. (a) Rs. 36,000 (b) Rs. 35,000 (c) Rs. 38,000 (d) Rs. 34,000 |
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Answer» (a) Rs. 36,000 |
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| 12. |
Which of the following statements is not true in relation to admission of a partner? (a) Generally mutual rights of the partners change(b) The profits and losses of the previous years distributed to the old partners (c) The firm is reconstituted under a new agreement (d) The existing agreement does not come to an end |
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Answer» (d) The existing agreement does not come to an end |
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| 13. |
A new partner is admitted(a) With the consent of two partners(b) with the consent of all partners(c) Desire of one partner(d) With the consent of majority partners |
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Answer» A new partner is admitted with the consent of all partners |
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| 14. |
At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of _______. (a) all the partners (b) the old partners (c) the new partners (d) the sacrificing partners |
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Answer» (d) the sacrificing partners |
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| 15. |
Out of sale proceeds received from the sale of sundry asset first of all payment will be made(a) Creditors liabilities(b) Partner’s loan(c) Partner’s capital(d) None of these |
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Answer» Out of sale proceeds received from the sale of sundry asset first of all payment will be made Creditors liabilities. |
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| 16. |
Sundry creditor amounted to Rs. 10,000 there more paid a discount of 10% realization account will be debited to(a) Rs.900(b) Rs.10,000(c) Rs.1000(d) Rs. 11,000 |
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Answer» Correct option is (a) Rs.900. |
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| 17. |
Amount realised from sale of assets is recorded in(a) Debit side of realization A/C(b) Credit side of realization A/c(c) Credit side of realization A/c(d) None of these |
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Answer» Amount realised from sale of assets is recorded in Credit side of realization A/c |
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| 18. |
The Interest on partner capital accounts is to be credited to(a) Interest A/C(b) Profit and loss A/C(c) Partner’s capital A/c(d) None of these |
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Answer» The Interest on partner capital accounts is to be credited to Partner’s capital A/c. |
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| 19. |
On dissolution of a firm, a partner paid Rs. 2000 for realization expense. Which account will be debited(a) Realization A/C(b) Cash A/C(c) Partner’s capital A/C(d) Profit and loss A/C |
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Answer» On dissolution of a firm, a partner paid Rs. 2000 for realization expense. Which account will be debited Realization A/C |
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| 20. |
Income and expenses related to the prize fund is shown in |
| Answer» Income and expenditure account | |
| 21. |
Operating Ratio is : (A) Profitability Ratio (B) Activity Ratio (C) Solvency Ratio (D) None of these |
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Answer» (A) Profitability Ratio |
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| 22. |
On Dissolution, Goodwill Account is Transferred to the : (A) Capital Accounts of Partners (B) Credit Side of Cash Account (C) Debit Side of Realization Account (D) Credit Side of Realization Account |
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Answer» (C) Debit Side of Realization Account |
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| 23. |
Voluntary returns of shares for cancellation by share holder is called:(a) Surrender of shares (b) Forfeiture of shares(c) Cancellation of shares(d) None of theses |
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Answer» Voluntary returns of shares for cancellation by share holder is called Surrender of shares |
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| 24. |
READ THE FOLLOWING TEXT AND ANSWER THE QUESTIONS: Based on the information given , you are required to answerRaghuram Limited company has an Authorized capital of 1, 00,000 shares of ₹10 each as per the Capital clause of the Memorandum of Association of the company.The company issued 5,000 shares to the promoters of the company in consideration for their services.The company further issued 10,000 shares to the vendors for the purchase of Machinery costing ₹1, 20,000. The remaining shares are issued at ₹10 each at a premium of ₹2 and shares are fully subscribed.A shareholder holding 500 shares failed to pay the first and final call. His shares were forfeited and later on re issued at ₹8 per share fully paid up.1. Which one of the following is the registered capital of the company? a. Paid up capital b. Uncalled capital c. Authorized capital d. Issued capital 2. The company issued ₹1,00,000 worth of shares towards the purchase price of machinery costing ₹90,000. The excess of ₹20000 is transferred to a. Share capital a/c b. Capital reserve a/c c. Securities premium reserve a/c d. Cash a/c 3. What entry you will pass if asset is purchased and shares are issued at premium. a. Vendor a/c Dr To share capital b. Assets a/c Dr To share capital To share premium c. Vendor a/c Dr share premium a/c Dr To Share capital d. Vendor a/c Dr To share capital To share premium4. If Shares are issued to promoters for their services then the account debited will be a. Goodwill a/c b. Promoters a/c c. Asset a/c d. Expenses a/c |
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Answer» Correct option is 1 c. Authorized capital 2 c. Securities premium reserve a/c 3 d. Vendor a/c Dr To share capital To share premium 4 a. Goodwill a/c |
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| 25. |
Dividends are usually paid upon:(a) Paid-up Capital(b) Called-up Capital(c) Issued Capital(d) Reserve Capital |
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Answer» Dividends are usually paid upon Paid-up Capital |
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| 26. |
Which statement is issued before the issue of shares:(a) Prospectus(b) Memorandum of Association(c) Articles of Association(d) None of these |
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Answer» Prospectus is issued before the issue of shares |
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| 27. |
In the absence of partnership deed, a partner is not entitled to receive :- (A) Interest on capital (B) Salary (C) Commission (D) None of these |
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Answer» Correct option is: (D) None of these |
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| 28. |
In the absence of any agreement profit is divided among partners (A) in the ratio of their contribution to the capital of the firm (B) in the ratio of time devoted by them to business (C) in the ratio of sales by each partner (D) in equal ratio. |
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Answer» (D) in equal ratio. |
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| 29. |
Allotment of share Account is(a) Personal A/C(b) Real A/c(c) Nominal A/c(d) None of these |
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Answer» Allotment of share Account is Personal A/C |
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| 30. |
Equity share holders are:(a) Customer of the Company (b) Owner of the company(c) Creditors of the Company(d) None of these |
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Answer» Equity share holders are Owner of the company |
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| 31. |
In the absence of partnership deed, partners are not entitled to receive.(a) salaries(b) Commission(c) Interest on capital(d) All of these |
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Answer» (d) All of these |
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| 32. |
Share application account is(a) Personal A/C(b) Real A/C(c) Nominal Account(d) None of these |
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Answer» Share application account is Personal A/C |
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| 33. |
A Joint stock company is:(a) An artificial legal person(b) A natural person(c) A general person(d) None of these |
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Answer» A Joint stock company is An artificial legal person |
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| 34. |
Interest on partner’s capital is calculated on.(a) Capital in the beginning(b) Capital at the end(c) Average capital(d) None of these |
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Answer» Interest on partner’s capital is calculated on Capital in the beginning |
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| 35. |
When Interest is Allowed on the Capital of the Partners, it is generally Calculated on : (A) Average Capital (B) Opening Capital (C) Closing Capital (D) None of these |
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Answer» (B) Opening Capital |
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| 36. |
Expenses on dissolution of a firm is called. (a) Realisation Expenses(b) Legal Expenses(c) Loss Expenses(d) None of these |
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Answer» Expenses on dissolution of a firm is called Realisation Expenses. |
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| 37. |
Due to admission of a new Partner in Partnership firm.(a) A Partnership firm is reconstituted(b) Partnership is reconstituted(c) Business is reconstituted(d) None of these |
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Answer» Due to admission of a new Partner in Partnership firm A Partnership firm is reconstituted |
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| 38. |
Decrease in the value of fixed assets in termed is(a) Depreciation(c) Loss(d) Profit(d) Expenses |
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Answer» Decrease in the value of fixed assets in termed is depreciation. |
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| 39. |
Decrease in the value of fixed assets is termed as:(a) Depreciation(b) Loss(c) Profit(d) Expense |
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Answer» Decrease in the value of fixed assets is termed as Depreciation |
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| 40. |
Share of goodwill brought in cash by the new partner is called.(a) Assets(b) Profit(c) Premium(d) None of these |
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Answer» Share of goodwill brought in cash by the new partner is called Premium |
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| 41. |
The balance of Revaluation Account is transferred to old partner’s Capital Accounts in Their(a) Old Profit Sharing Ratio(b) New profit sharing ratio(c) Equal ratio(d) None of these |
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Answer» (a) Old Profit Sharing Ratio |
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| 42. |
The excess of actual profit over the normal profit is called.(a) Death of partner(b) Retirement of a partner(c) Admission of a partner(d) None of these |
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Answer» The excess of actual profit over the normal profit is called Admission of a partner. |
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| 43. |
The interest on Partner’s drawings is debited to: (a) Partner’s Capital Account(b) Profit and Loss A/c(c) Drawings A/c(d) None of these |
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Answer» The interest on Partner’s drawings is debited to Partner’s Capital Account. |
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| 44. |
Revaluation account is a _______________ Account. i Real ii Nominal iii Personaliv None of the above |
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Answer» Correct option is ii Nominal |
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| 45. |
Match the following:A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases:iC acquires 1/5th share from AaA:B:C=4:3:3iiC acquires 1/5th share equally form A and B.bA:B:C=9:4:7iiiA and B sacrifice 5/30 and 2/30 ; C gains 7/30cA:B:C=3:4:3ivC acquires 1/10th share of A and 1/2 share of B.dA:B:C=1:1:11) i-c, ii-a, iii-d, iv-b 2) i-a, ii-b, iii-c, iv-d 3) i-b, ii-c, iii-a, iv-d 4) i-d, ii-a, iii-b, iv-c |
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Answer» 1) i-c, ii-a, iii-d, iv-b |
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| 46. |
Which of the following is NOT true in relation to goodwill? i It is an intangible asset ii It is fictitious assetiii It has a realisable value iv None of the above |
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Answer» Correct option is ii It is fictitious asset |
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| 47. |
The monetary value of reputation of the business is called:(a) Super Profit(b) Abhormal Profit(c) Surplus(d) Goodwill |
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Answer» The monetary value of reputation of the business is called Goodwill |
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| 48. |
The excess of actual profit over the normal profit is called.(a) super profit(b) Abnormal profit(c) Fixed profit(d) Capital profit |
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Answer» The excess of actual profit over the normal profit is called super profit |
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| 49. |
In the following cases, what is the gaining share of the gaining partneri A,B,C are partners sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5.aGain 1/12ii R and G are partners sharing profits in the ratio of 2:1. They decided to share future profits in the ratio of 1:1.bGain 3/10iii V and Ware partners sharing profits in the ratio of 3:1. They decided to share future profits in the ratio of 2:1.cGain 1/18ivM and N are partners sharing profits in the ratio of 5:4. They decided to share future profits in the ratio of 1:1.dGain 1/61) i-c, ii-a, iii-d, iv-b 2) i-a, ii-b, iii-c, iv-d 3) i-b, ii-d, iii-a, iv-c 4) i-d, ii-c, iii-b, iv-a |
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Answer» 3) i-b, ii-d, iii-a, iv-c |
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| 50. |
Mira, Sita and Priya were sharing profits I the ratio of 2:2:1. They decided to share future profits in the ratio of 7:5:3. Their Balance Sheet showed a balance of Rs. 45,000 in Advertisement Account. The amount to be debited respectively to the Capital accounts of Mira, Sita and Priya for writing off the amount in Advertisement Suspense account will be i Rs.15,000, Rs.15,000, Rs.15,000 ii Rs.22,500, Rs.22,500, Nil iii Rs.18,000, Rs.18,000, Rs.9,000 iv Rs.21,000, Rs.15,000, Rs.9,000 |
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Answer» Correct option is iii Rs.18,000, Rs.18,000, Rs.9,000 |
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