ACCOUNTS Q.NO. 01 02 03 04 05 06 07 QUESTION & ANSWER OPTION ANSWER Minimum No. of members of public companies are: A) 2 B) 4 D C) 5 D) 7 To start a business ,certificate of commencement of business is not necessary for: A) Private Company A B) Public Company C) Both D) None of the above Minimum share capital of a private co. is: A) 100000 B) 500000 A C) 400000 D) Not prescribed in the act The part of the capital which is called only on the winding up of the company is called A) Reserve Capital A B) Capital Reserve C) Issued Capital D) Subscribed Capital After the re-issue of shares, the balance of share forfeiture a/c transferred to: A) Capital Reserve A/c A B) Reserve Capital A/c C) Profit & Loss A/c D) None of the above Except in special circumstances, maximum discount on issue of equity shares is: A) 5% C B) 6% C) 10% D) No limit As per Table A maximum interest on call in advance is: A) 5% p.a. B) 6% p.a. B C) 10% p.a. D) 12%p.a 08 09 10 11 12 13 14 15 16 Except in special circumstances, maximum discount on issue of debentures is : A) 5% B) 6% C) 10% D) No Limit XYZ Pvt. Ltd. Issues 9% debentures of Rs.10 each. What is the coupon rate in this circumstance: A) 10 B) 9 C) 1 D) None of the above A company can never redeemed its debentures: A) At Par B) At Premium C) At Discount D) AT Premium & At Discount Capital Redemption Reserve can-not be created out of: A) General Reserve B) Reserve Fund C) Profit & Loss Account D) Securities Premium Account Interest on Drawing is shown in : A) Credit side of Profit & Loss Account B) Debit side of Profit & Loss Account C) Credit side of Profit & Loss Appropriation Account D) Credit side of Partner’s Capital Account In the absence of Partnership Deed , Interest on partner’s capital is : A) 6% B) 5% C) 12% D) Not given X withdraws Rs. 5000/- at the beginning of every month from his partnership firm. The interest on drawing @15% is : A) 9000 B) 4875 C) 4500 D) 4125 In the absence of partnership deed Interest on Loan is : A) 5% B) 6% C) 10% D) 12% ABC is a partnership firm. The firm is decided to give the commission to the manager @5%p.a. on net profits after charging such commission. The net profits of the firm is Rs.84000/-. Compute the commission that is given to the manager? D B C D C D A B 17 18 19 20 21 22 23 24 A) 4000 B) 4200 C) 2000 D) 2100 Which of the following statement is not correct: A) Assets=Capital + Liabilities B) Capital=Assets-Liabilities C) Liabilities= Assets + Capital D) Liabilities= Assets-Capital Purchased a machinery at Rs.50000 and Rs.2000 is paid for the installation of that machinery. Machinery A/c and Wages A/c are debited respectively with rupees A) 50000,2000 B) 52000,0 C) 2000,50000 D) 48000,2000 What shall be the amount of capital if Machinery Rs. 40000/-, Debtors Rs.20000/-, Creditors Rs. 10000/-, Cash Rs.2000/A) 50000 B) 52000 C) 62000 D) 72000 Cash Book always shows a ………… balance. A) Debit B) Credit C) Debit or Credit D) Debit & Credit In a Cash & Discount column cash book , discount received is shown on……….. side of the book. A) Debit B) Credit C) Neither Debit nor Credit D) Debit and credit both Cash Book act as A) Subsidiary Book B) Ledger A/c C) Both, Subsidiary Book & Ledger A/c D) None of the above Debit Balance shown in the pass book should be equal to: A) Credit balance in the pass book B) Debit balance in the pass book C) Credit balance in the cash book D) Debit balance in the cash bok On ……………side of the trial balance ‘LIP’ is shown A) Debit B) Credit C) Debit or Credit D) None of the above A C B B A B C C A 25 26 27 28 29 30 31 32 33 Purchased a machinery on 01-06-2012 at Rs.60000/-. Calculate depreciation at 10% by W.D.V. method for the year 2013, if accounts are closed on 31st December. A) 5700 B) 5650 C) 5600 D) 5500 Purchased a machinery on 01-06-2012 at Rs.60000/-. Calculate depreciation at 10% by straight line method for the year 2013, if accounts are closed on 31st December. A) 5700 B) 5650 C) 6000 D) 5500 Accrued Income appearing in the trial balance is shown : A) On debit side of Profit & Loss account B) On credit side of Profit & Loss account C) On assets side of the Balance Sheet D) On Liabilities side of the Balance Sheet The following of which is not a contingent liabilities: A) Bills discounted but not matured B) Disputes against the firm in the court C) Guarantee given in the bank for any other person D) None of the above Purchased a machinery on 01-06-2012 at Rs.60000/-. Calculate depreciation at 10% by W.D.V. method for the year 2013, if accounts are closed on 31st December. E) 5700 F) 5650 G) 5600 H) 5500 The profits for the last three years are Rs.10000, 20000 and 30000. The value of the goodwill by average profit method at two years purchase is rupees A) 60000 B) 20000 C) 50000 D) 40000 If average profit is Rs.50000/- and normal profit is Rs.45000/-.The super profit is rupees A) 50000 B) 45000 C) 5000 D) 55000 Revaluation Account is also known as: A) Profit & Loss Appropriation Account B) Profit & Loss Account C) Profit & Loss Adjustment Account D) None of the above A,B and C are partners in proportion of 3:2:1 B C C D B D C C 34 35 36 37 38 39 40 respectively. D was admitted as a new partner with 1/6th share. The new profit sharing ratio is: A) 15:10:5:6 B) 3:2:1:1 C) 18:12:6:1 D) 3:2:2:1 A, B and C are partners in proportion of 7:8:9 respectively. D was admitted as a new partner with 1/6th share. The sacrificing ratio is: A) 7:8:9 B) 6:7:8 C) 5:6:7 D) 4:5:6 A and B are partners with capital of Rs.10000 and Rs.20000 respectively. C is admitted as a new partner with capital of Rs.20000/- for 1/4th share in the profits. The value of hidden goodwill is rupees A) 10000 B) 20000 C) 30000 D) 40000 If new partner brings his share of goodwill in cash, then which accounts are credited A) Premium Account B) Sacrificing Partner’s Capital Account C) Both, A and B D) Cash Account Unrecorded Assets is recorded on A) Debit side of revaluation account B) Credit side of revaluation account C) Debit side in partner’s capital account D) Credit side in partner’s capital account A , B and C are partners sharing profit and losses in the ration of 3:2:1. B is retired. The new ratio is: A) 3:2 B) 2:1 C) 3:1 D) 1:1 A,B,C,D are partners sharing profit & losses in the ratio of 2:1:2:1. C retires and A,B and D decided to share the profit and losses in equal. The gaining ratios is: A) 2:2:1 B) 1:1:1 C) 2:1:2 D) 0:1:1 At the retirement of partner’s capital account, the loss on revaluation is A) Credited to all partner’s capital account B) Debited to all partner’s capital account C) Credited to new partner’s capital account A A C C B C D B 41 42 43 44 45 46 47 48 49 50 D) Debited to new partner’s capital account Realisation Account is: A) Personal Account B) Real Account C) Nominal Account D) None of the above Which of the following is not transferred to realisation account : A) Cash Account B) Partner’s Loan Account C) Provision for doubtful debts D) A & B above Salary Account is: A) Personal Account B) Real Account C) Nominal Account D) None of the above Accounts Receivables cover: A) B/R B) Debtor C) B/R & Debtor D) None of the above Which of the following is not a tangible assets: A) Building B) Trade Mark C) Machinery D) Land Inventories includes: A) Raw Material B) Work in progress C) Finished Goods D) All of the above SRG Commerce Institute is: A) Natural Personal Account B) Artificial Personal Account C) Representative Personal Account D) None of the above The rule of real account is: A) Debit the receiver and credit the giver B) Debit what comes in and credit what goes out C) Debit the expenses and losses and credit income and gains D) None of the above Bank Account is: A) Personal Account B) Real Account C) Nominal Account D) None of the above Trade Marks is: A) Personal Account C D C C B D A B A B) Real Account C) Nominal Account D) None of the above B