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

_____ capital can be found by preparing a statement of affairs at the beginning of the year.

(a)

Opening capital

(b)

Closing capital

(c)

Both (a) and (b)

(d)

None of these

In which of the following system of recording the financial statements reflect true and fair view of an entity and accounting records are considered to be more accurate?

(a)

Single entry system

(b)

Double entry system

(c)

Cash based system

(d)

All of them

If debtors balance was Rs. 2.000 at 1^st Jan.2017, credit sales made during the year were Rs.1,000 and Rs.1,500 were received from debtors, which of the following is the debtors account balance at 31^st Dec. 2017?

(a)

Rs.1,000

(b)

Rs. 2,000

(c)

Rs. 1,500

(d)

Rs. 500

Statement of assets & liabilities prepared under double entry system is called ___________

(a)

Balance sheet

(b)

Profit & Loss Statement

(c)

Statement of affairs

(d)

Income Statement

Trial balance shows machinery of Rs. 2,00,000. Depreciation is provided at 10%. The depreciation on machinery will be____________

(a)

Rs. 20,000

(b)

Rs. 1,80,000

(c)

Rs. 2,20,000

(d)

Rs. 1,50,000

Income and Expenditure accounts show

(a)

cash available to an organization

(b)

dosing capital of an organization

(c)

cash available in the bank account

(d)

surplus or deficit for the current accounting period.

______is a fee collection from every member only once at the time of his or her admission into the organisation.

(a)

Entrance fee

(b)

Legacy

(c)

Donations

(d)

None of these

In the absence of an agreement among the partners, interest on capital is

(a)

Not allowed

(b)

Allowed at bank rate

(c)

Allowed @ 5% per annum

(d)

Allowed @ 6% per annum

In India, partnership firms are governed by the Indian partnership Act ___________

(a)

1932

(b)

1930

(c)

1992

(d)

1986

________________ 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

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

__________ method, goodwill is calculated as certain years of purchase of average profits of the past few years.

(a)

Simple average method

(b)

Average profit method

(c)

Super profit method

(d)

Annuity method

At the time of retirement of a partner, determination of gaining ratio is required

(a)

To transfer revaluation profit or loss

(b)

To distribute accumulated profits and losses

(c)

To adjust goodwill

(d)

None of these

If the amount due to the outgoing partner is transferred to loan account then he is entitled to interest at _________ until it is paid out.

(a)

9%

(b)

5%

(c)

6%

(d)

8%

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

Equity shares do not enjoy any ___________

(a)

Equity rights

(b)

Preference rights

(c)

Dividend of rights

(d)

Ordinary shares

_____ is a voluntary association of persons.

(a)

A company

(b)

A business

(c)

An organisation

(d)

None of these

Current assets excluding inventory and prepaid expenses is called

(a)

Reserves

(b)

Tangible assets

(c)

Funds

(d)

Quick assets

Contra voucher is used for

(a)

Master entry

(b)

Withdrawal of cash from bank for office use

(c)

Reports

(d)

Credit purchase of assets