Which one of the following statements is not true in relation to incomplete records?

(a)

It is an unscientific method of recording transactions

(b)

Records are maintained only for cash and personal accounts

(c)

It is suitable for all types of organisations

(d)

Tax authorities do not accept

Match List I with List II and Select the Correct Answer using the Codes given below.

List I		List II
(i)	Nature	1.	Needs and conveniences
(ii)	Types of accounts	2.	No legal obligations
(iii)	Lack of uniformity	3.	Real account and nominal accounts
(iv)	Suitability	4.	Unsystematic way of transactions

(a)

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

(b)

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

(c)

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

(d)

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

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

(a)

Private

(b)

Own

(c)

Public

(d)

Capital

In single entry system, is not possible to prepare ________

(a)

Receipts and payments Account

(b)

Trial Balance

(c)

Balance Sheet

(d)

Account sales

Interest on capital is calculate on which capital

(a)

Opening capital

(b)

Closing capital

(c)

Opening Stock

(d)

Closing Stock

Subscription due but not received for the current year is

(a)

An asset

(b)

A liability

(c)

An expense

(d)

An item to be ignored

In non - profit organization, the sale of old newspapers is generally considered as an __________

(a)

Revenue receipt

(b)

Expenditure

(c)

Income

(d)

Capital receipt

Which of the following is the incorrect pair?

(a)

Interest on drawings – Debited to capital accouunt

(b)

Interest on capital - Credited to capital account

(c)

Interest on loan - Debited to capital account

(d)

Share of profit - Credited to capital account

Amount invested by partners in the partnership business is called __________

(a)

Owner's capital

(b)

Partner's capital

(c)

Profit and loss appropriation

(d)

None of these

__________ can be computed by direct method or product method.

(a)

Interest on drawings

(b)

Interest on capital

(c)

Partners salary

(d)

Partner's commission

Book profit of 2017 is Rs. 35,000; non-recurring income included in the profit is Rs. 1,000 and abnormal loss charged in the year 2017 was Rs. 2,000, then the adjusted profit is __________

(a)

Rs. 36,000

(b)

Rs. 35,000

(c)

Rs. 38,000

(d)

Rs. 34,000

___________ 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

Match List I with List II and select the correct answer using the codes given below:

List I	List II
(i) Sacrificing ratio	1. Investment fluctuation fund
(ii) Old profit sharing ratio	2. Accumulated profit
(iii) Revaluation Account	3. Goodwill
(iv) Capital Account	4. Unrecorded liability

(a)

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

(b)

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

(c)

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

(d)

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

When A and B sharing profits and losses in the ratio of 3:2, they admit C as a partner giving him 1/3 share of profits. This will 'be given by A and B.

(a)

Equality

(b)

In the ratio of their capitals

(c)

In the ratio of their profits

(d)

None of these

At the time of admission of a new partner, ________ profit ratio should be find out.

(a)

old

(b)

new

(c)

both (a) and (b)

(d)

none of these

On which reason(s) for revaluation of assets and liabilities are __________

(a)

To give a true and fair view of the state of affairs of the firm

(b)

To share the gain arising from the revaluation of assets and liabilities as it is due to the old partners

(c)

Both (a) & (b)

(d)

None of the above

A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill of the firm was valued as Rs. 30,000. Find the contribution of A and C to compensate B:

(a)

Rs. 20,000 and Rs. 10,000

(b)

Rs. 8,000 and Rs. 4,000

(c)

Rs. 10,000 and Rs. 20,000

(d)

Rs. 15,000 and Rs. 15,000

Profits and losses of previous years which are not distributed to the partners are known as ___________

(a)

Accumulated profit and losses

(b)

general reserve

(c)

Reserve fund

(d)

workmen compensation fund

_______is the proportion of the profit which is gained by the continuing partners

(a)

Sacrificing ratio

(b)

Gaining ratio

(c)

New profit ratio

(d)

Old profit sharing ratio

Which one of the following is not correctly matched?

(a)

Liquid ratio – Proportion

(b)

Gross profit ratio – Percentage

(c)

Fixed assets turnover ratio – Percentage

(d)

Debt-equity ratio – Proportion