The total assets of a proprietor are Rs. 5,00,000. His liabilities Rs. 3,50,000. Then his capital in the business is ____________

(a)

Rs. 8,50,000

(b)

Rs. 1,50,000

(c)

Rs. 3,50,000

(d)

Rs. 4,25,000

Capital at the end - net profit + drawings = 

(a)

Capital in Beginning

(b)

Gross profit

(c)

Interest on capital

(d)

Interest on drawings

Income and Expenditure account is based on _________

(a)

Cash accounting

(b)

Government accounting

(c)

Management accounting

(d)

Accrual accounting

List I		List II
(i)	Subscription	1.	Balls, bats
(ii)	Investments	2.	Time of admission
(iii)	Old sports materials	3.	Receive interest
(iv)	Admission fee	4.	Tennis or billiards

(a)

(i)	(ii)	(iii)	(iv)
1	2	3	4

(b)

(i)	(ii)	(iii)	(iv)
4	3	1	2

(c)

(i)	(ii)	(iii)	(iv)
2	3	4	1

(d)

(i)	(ii)	(iii)	(iv)
2	3	4	1

The profit or loss arising from the partnership business is shared by the partners in the ___________

(a)

old ratio

(b)

new ratio

(c)

agreed ratio

(d)

sacrifice ratio

__________ can be formed only for a legal business.

(a)

Sole trader

(b)

Co-operative societies

(c)

Partnership

(d)

None of these

Goodwill is shown under fixed assets in the ___________

(a)

Trial balance

(b)

Balance sheet

(c)

Trading account

(d)

Profit and loss account

List I		List II
i)	Goodwill	1.	Excess of EM.P. over normal profit
ii)	Fictitious asset	2.	Accounted in the books of accounts
iii)	Purchased goodwill	3.	Intangible having no realisable value
iv)	Super profit	4.	An intangible asset

(a)

(i)	(ii)	(iii)	(iv)
4	3	2	1

(b)

(i)	(ii)	(iii)	(iv)
1	2	3	4

(c)

(i)	(ii)	(iii)	(iv)
2	3	4	1

(d)

(i)	(ii)	(iii)	(iv)
3	4	1	2

Revaluation account is also called

(a)

Accumulation profit and loss account

(b)

Profit and loss adjustment account

(c)

Profit and loss appropriation account

(d)

None of these

Introduction of a new partner due to _________

(a)

Need to more capital

(b)

Fresh ideas and more contacts

(c)

Obtaining of a skilled and reputable person

(d)

All of the above

The firm is reconstituted and other partners continue the partnership firm with a new __________

(a)

Contract

(b)

agreement

(c)

start business

(d)

none of these

________ of partner will be paid off, before the settlement of partner’s capital.

(a)

Capital

(b)

Loan

(c)

Asset

(d)

None of these

The capital of companies is divided into small units called __________

(a)

shares

(b)

debentures

(c)

dividend

(d)

none of these

The excess amount paid over the called up value of a share is known as _____________

(a)

Calls in arrear

(b)

Calls in advance

(c)

Capital Reserve

(d)

None of these

Financial statements are prepared based on _____________

(a)

past data

(b)

future cost

(c)

terminal cost

(d)

historical cost

_______________ analysis helps in assessing the liquidity and solvency of a business concern.

(a)

Fund flow

(b)

Trend

(c)

Cash flow

(d)

None of these

If both items in a ratio are from balance sheet, it is classified as___________

(a)

Inter statement ratio

(b)

Income statement ratio

(c)

Balance sheet ratio

(d)

All of these

Which ratio is considered as safe margin of solvency?

(a)

Liquid Ratio

(b)

Quick Ratio

(c)

Current Ratio

(d)

None of the above

In 2009, Tally Solutions introduced the software ___________

(a)

Tally. ERP 9

(b)

Tally. ERP 10

(c)

Tally. ERP 6.0

(d)

Tally. 8.0

_________ are used for recording both cash and credit purchases of goods.

(a)

Purchase voucher

(b)

Sales voucher

(c)

Journal voucher

(d)

Contra voucher