M.C.Q (1 Marks)

MCQ 11 Mark

_________ is prepared at the time of dissolution.

A
Revaluation Account
B
Profit and Loss Appropriation Account
C
Profit & Loss Account
D
Realisation Account

Answer

(d) Realisation Account
Explanation:
Realisation Account

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MCQ 21 Mark

The formula for calculating the sacrificing ratio is:

A
Gaining Ratio - Old Ratio
B
Old Share - New Share
C
New Share - Old Share
D
Old Ratio - Gaining Ratio

Answer

(b) Old Share - New Share
Explanation:
as old share is higher in sacrifice

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MCQ 31 Mark

A and B are in partnership sharing profits in the ratio of 3 : 2. They take C as a new partner. Goodwill of the firm is valued at ₹ 3,00,000 and C brings ₹ 30,000 as his share of goodwill in cash which is entirely credited to the Capital Account of A. New profit sharing ratio will be:

A
5 : 4 : 1
B
6 : 3 : 1
C
4 : 5 : 1
D
3 : 2 : 1

Answer

(a) 5 : 4 : 1
Explanation:
C brings 30,000 as goodwill so his share will be 1/10 which is given by A only as goodwill credited to A only.
A's new share = 3/5 - 1/10 = 5/10
B' share = 2/5 $\times$ 2/2 = 4/10 (Same as earlier)

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MCQ 41 Mark

A, B and C are partners sharing profits in 3 : 2 : 1 ratio. C was guaranteed that he will get minimum of ₹ 20,000 as his share of profit every year. Firm's profit was ₹ 90,000. Any deficiency in C profit will be compensate by A and B in the ratio of 4 : 1. A's share of Profit after meeting deficiency will be:

A
45,000
B
40,000
C
44,000
D
41,000

Answer

(d) 41,000
Explanation:
A's share = 45,000
Deficiency to be born by A = 4,000
A's share of Profit after meeting deficiency will be: 45000 - 4000 = 41,000

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MCQ 51 Mark

Persons who start a company are called _________.

A
Auditors
B
Directors
C
Promoters
D
Shareholders

Answer

(c) Promoters
Explanation:
Promoters

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MCQ 61 Mark

Which type of capital will be written after the authorized capital in the balance sheet?

A
Subscribed Capital
B
Issued Capital
C
Paid-up Capital
D
Called up Capital

Answer

(b) Issued Capital
Explanation:
Types of share capital to be written under head Share Capital in order in the balance sheet is as follows:
i. Authorized Capital
ii. Issued Capital
iii. Subscribed Capital
iv. Subscribed and fully paid-up capital
v. Subscribed and not fully paid-up capital

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MCQ 71 Mark

Net profit of a firm is ₹ 4,950. Manager is entitled to a commission of 10% on profits before charging his commission. Manager's commission will be:

A
₹ 495
B
₹ 450
C
₹ 485
D
₹ 550

Answer

(a) ₹ 495
Explanation:
Commission $=4,950 \times \frac{10}{100}$ = ₹ 495

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MCQ 81 Mark

Every partner is bound to attend diligently to his _________ in the conduct of the business.

A
capital
B
rights
C
duties
D
meetings

Answer

(c) duties
Explanation:
duties

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MCQ 91 Mark

Remaining partners after a partner retires contribute to retiring partner in

A
New ratio of continuing partners
B
Both Sacrificing ratio and New ratio of continuing partners
C
Sacrificing ratio
D
Gaining Ratio

Answer

(d) Gaining Ratio
Explanation:
At the time of retirement or death of a partner, remaining partners compensate retired partner in Gaining Ratio so that retired partner to contribute to future profits.

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MCQ 101 Mark

Diksha Ltd. issued 4,000, 9% Debentures of ₹ 100 each at a discount of 10%, redeemable at a premium. Discount on Issue of Debentures and Premium on Redemption of Debentures were accounted for through Loss on Issue of Debentures Account. If the amount of Loss on Issue of Debentures Account was ₹ 60,000, then the amount of premium on redemption was:

A
₹ 60,000
B
₹ 40,000
C
₹ 80,000
D
₹ 20,000

Answer

(d) ₹ 20,000
Explanation:
₹ 20,000
Discount on issue of debenture = (4,000 $\times$ 100) $\times$ 10% = 40,000
Premium on redemption = Loss on issue of debenture - Discount on issue of debenture
Premium on redemption = 60,000 - 40,000 = 20,000

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MCQ 111 Mark

In the Balance Sheet of a company, interest accrued and due on debentures is shown under the main head

A
Reserves and Surplus
B
Share Capital
C
Non-current Liabilities
D
Current Liabilities

Answer

(d) Current Liabilities
Explanation:
In the Balance Sheet of a company, interest accrued and due on debentures is shown under the main head Current Liabilities.

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MCQ 121 Mark

Salary or Commission to a partner is an

A
appropriation cum charge
B
charge against profits
C
asset
D
appropriation out of profits.

Answer

(d) appropriation out of profits
Explanation:
In a normal situation, salary or commission paid to a partner is treated as an appropriation. It means salary or commission is paid only when there is profit and amount of salary or commission cannot be more than the profits. So we can say that in the case of profit, commission or salary to a partner can be provided.

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MCQ 131 Mark

Calculate the interest on drawings of Mr. Amit @10% p.a. for the year ended 31.03.2022, if Mr. Amit withdrew 1200 at the end of each quarter

A
180
B
240
C
220
D
300

Answer

(a) 180
Explanation:
4,800 X 10/100 X 4.5/12 = 180

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MCQ 141 Mark

A, B and C were partners in a firm sharing profits in 4 : 3 : 2 ratio. They decided to share future profits in 4 : 3 : 1 ratio. Sacrificing ratio and gaining ratio will be:

A
A Gain $\frac{4}{72} ;$ B Gain $\frac{3}{72} ; $ C Sacrifice $\frac{7}{72}$
B
A Sacrifice $\frac{4}{72} ;$ B Sacrifice $\frac{3}{72}$; C Gain $\frac{7}{72}$
C
A Sacrifice $\frac{3}{72} ;$ B Sacrifice $\frac{4}{72};$ C Gain $\frac{7}{72}$
D
A Gain $\frac{3}{72} ;$ B Gain $\frac{4}{72} ;$ C Sacrifice $\frac{7}{72}$

Answer

(a) A Gain $\frac{4}{72} ; $ B Gain $\frac{3}{72} ;$ C Sacrifice $\frac{7}{72}$
Explanation:
A Gain $\frac{4}{72} ;$ B Gain $\frac{3}{72} ;$ C Sacrifice $\frac{7}{72}$
Sacrificing ratio = Old ratio - New ratio
A $ :-\frac{4}{9}-\frac{4}{8}=\frac{32-36}{72}=\frac{(-4)}{72}$ Gain
B : $-\frac{3}{9}-\frac{3}{8}=\frac{24-27}{72}=\frac{(-3)}{72}$ Gain
C $:-\frac{2}{9}-\frac{1}{8}=\frac{16-9}{72}=\frac{7}{72}$

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MCQ 151 Mark

Monika Ltd. issued 50,000, 8% Debentures of ₹ 100 each at certain rate of premium and to be redeemed at 10% premium. At the time of writing off Loss on Issue of Debentures, Statement of Profit and Loss was debited with ₹ 2,00,000. At what rate of premium, these debentures were issued?

A
4%
B
16%
C
6%
D
10%

Answer

(c) 6%
Explanation:
Amount of Premium payable at the time of Redemption @ 10% = ₹ 5,00,000 Out of this amount, ₹ 2,00,000 have been debited to Statement of Profit & Loss. It means ₹ 3,00,000 have been written off from Securities Premium.
Rate of Premium $=\frac{3,00,000}{50,00,000} \times 100=6 \%$

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MCQ 161 Mark

To whom dividend is given at a fixed rate in a company?

A
To preference shareholders
B
To debentureholders
C
To equity shareholders
D
To promoters

Answer

(a) To preference shareholders
Explanation:
To preference shareholders

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MCQ 171 Mark

When a new partner does not bring his share of goodwill in cash, the amount is debited to :

A
Current A/c of the New Partner
B
Capital A/c of the Old Partners
C
Premium A/c
D
Cash A/c

Answer

(a) Current A/c of the New Partner
Explanation:
Current A/c of the New Partner as we have to receive money from new partner

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Accountancy M.C.Q (1 Marks)

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