Single entry system keeps one cash book which mixes up business as well as ____ transactions.

(a)

Private

(b)

Own

(c)

Public

(d)

Capital

Calculate the amount of net income or loss if the capital has been increased by Rs. 1,000 during this accounting period drawings Rs. 5,000 and Rs. 1,000 fresh capital was introduced in the business _______

(a)

Rs. 5,000 net loss

(b)

Rs. 5,000 net profit

(c)

Rs. 6,000 net loss

(d)

Rs. 6,000 net profit

Trial balance is not obtained in:

(a)

Double entry system

(b)

Modern entry system

(c)

Single entry system

(d)

None of these

Which one is correct

(a)

Adjusting Closing Capital = Closing capital + Drawings - Additional Capital

(b)

Adjusting Closing Capital = Closing capital - Drawings - Additional Capital

(c)

Adjusting Closing Capital = Additional Capital + Drawings - Closing Capital

(d)

None of these

Legacy is a

(a)

Revenue expenditure

(b)

Capital expenditure

(c)

Revenue receipt

(d)

Capital receipt

On what basis the receipts and payments account is prepared?

(a)

Cash basis

(b)

Credit basis

(c)

Both

(d)

None of these

A gift made to a not-for-profit organization by a will, is called________

(a)

Subscription

(b)

Life membership fee

(c)

Legacy

(d)

Donations

In sole proprietorship, the profit or loss in the profit and loss account is transferred directly to the sole proprietor's ___________

(a)

drawings account

(b)

capital account

(c)

loan account

(d)

salary account

Period of interest refers to the period from the date of drawings to the closing date of the __________

(a)

opening year

(b)

closing year

(c)

previous year

(d)

accounting year

Under fixed capital method salary payable to a partner is recorded ____________

(a)

in current account

(b)

in capital account

(c)

either in current account or capital account

(d)

none of these

________________ is the interest allowed on capital of the partners.

(a)

Interest on drawings

(b)

Interest on capital

(c)

Both 'a' and 'b'

(d)

None of these

Interest on partner's capital is allowed, only when the _______________ specifically provides for i

(a)

partnership Act

(b)

partnership agreement

(c)

both 'a' and 'b'

(d)

none of these

Super profit is the difference between

(a)

Capital employed and average profit

(b)

Assets and liabilities

(c)

Average profit and normal profit

(d)

Current year’s profit and average profit

The total capitalised value of a business is Rs. 1,00,000; assets are Rs. 1,50,000 and liabilities are Rs. 80,000. The value of goodwill as per the capitalisation method will be

(a)

Rs. 40,000

(b)

Rs. 70,000

(c)

Rs. 1,00,000

(d)

Rs. 30,000

Goodwill acquired by making payment in cash or kind is called __________

(a)

Purchased goodwill

(b)

Self-generated goodwill

(c)

Average goodwill

(d)

'a' and 'b'

___________ method, goodwill is calculated by multiplying the average profits by a certain number of years of purchase.

(a)

Weighted average profit

(b)

Super profit

(c)

Annuity

(d)

Simple average profit

Which of the following statements is not true in relation to admission of a part _________.

(a)

Generally mutual rights of the partners change

(b)

The profits and losses of the previous years are distributed to the old partners

(c)

The firm is reconstituted under a new agreement

(d)

The existing agreement does not come to an end

When the value of an asset increases, it results in

(a)

profit

(b)

loss

(c)

income

(d)

expense

On retirement of a partner from a partnership firm, accumulated profits and losses are distributed to the partners in the

(a)

New profit sharing ratio

(b)

Old profit sharing ratio

(c)

Gaining ratio

(d)

Sacrificing ratio

If a share of Rs.10 on which Rs.8 has been paid up is forfeited. Minimum reissue price is

(a)

Rs.10 per share

(b)

Rs.8 per share

(c)

Rs.5 per share

(d)

Rs.2 per share