Opening balance of debtors: Rs. 30,000, cash received: Rs. 1,00,000, credit sales: Rs. 90,000; closing balance of debtors is

(a)

Rs. 30,000

(b)

Rs. 1,30,000

(c)

Rs. 40,000

(d)

Rs. 20,000

A firm has assets worth Rs. 60,000 and capital Rs. 45,000.Then it's liabilities is _________

(a)

Rs. 45,000

(b)

Rs. 1,05,000

(c)

Rs. 60,000

(d)

Rs. 15,000

Creditors on 1.4.2016 was Rs. 80,000 and on 31.3.2017 was Rs. 65,000 cash paid to creditors during the year is Rs. 10,000. Then the credit purchases during the year is ________

(a)

Rs. 95,000

(b)

Rs. 1,75,000

(c)

Rs. 1,95,000

(d)

Rs. 1,50,000

If opening capital Rs. 1,000 and closing capital Rs. 2000. Assuming no drawings during the accounting period, calculated the net income or loss for the period _______

(a)

Rs.1,000 net income

(b)

Rs.1,000 net loss

(c)

Rs.2,000 net income

(d)

Rs.2,000 net loss

Capital can be obtained by preparing ____________

(a)

Cash Book

(b)

Statement of Affairs

(c)

Debtors Account

(d)

Creditors account

Companies cannot keep books on single entry system because of ______________

(a)

Tax Properties

(b)

Legal Provisions

(c)

Both (a) & (b)

(d)

None of these

Which of the following should not be recorded in the income and expenditure account?

(a)

Sale of old news papers

(b)

Loss on sale of asset

(c)

Honorarium paid to the secretary

(d)

Sale proceeds of furniture

Capital fund also called as ___________

(a)

accumulated fund

(b)

special fund

(c)

donation fund

(d)

none of these

When fixed capital method is adopted by a partnership firm, which of the following items will appear in capital account?

(a)

Additional capital introduced

(b)

Interest on capital

(c)

Interest on drawings

(d)

Share of profit

The name under which the business of a firm is carried on is called the ____________

(a)

Company name

(b)

Firm name

(c)

Partnership firm

(d)

Partner's name

X and Yare partners sharing the profits and losses in the ratio of 2:3 with capitals of Rs. 1,20,000 and Rs. 60,000 respectively. Profits for the year are Rs. 9,000. If the partnership deed is silent as to interest on capital. Show how profit is shared among X and Y ____________

(a)

Profit X - Rs. 6,000; Y - Rs. 3,000

(b)

Profit X - Rs. 3,600; Y - Rs. 5,400

(c)

Profit X - Rs. 3,000; Y - Rs. 6,000

(d)

Profit X - Rs. 2,000; Y - Rs. 2,600

______________ is a type of partnership in which the liability of the partners is limited to the entent of their capital contribution.

(a)

Limited liability partnership

(b)

Limited assets

(c)

Partnership deed

(d)

None of these

The average rate of return of similar concerns is considered as

(a)

Average profit

(b)

Normal rate of return

(c)

Expected rate of return

(d)

None of these

The total capitalised value of the business is calculated by capitalising the average profits on the basis of __________

(a)

average profit

(b)

normal rate of return

(c)

actual capital employed

(d)

none of these

__________ 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 admission, the goodwill brought by the new partner may be credited to the capital accounts of

(a)

all the partners

(b)

the old partners

(c)

the new partner

(d)

the sacrificing partne

When the value of an asset increases, it results in

(a)

profit

(b)

loss

(c)

income

(d)

expense

In admission undistributed profit or loss is transferred to _________

(a)

New partner's capital A/c only

(b)

Old partner's capital A/c only

(c)

All the partner's capital accounts

(d)

None of these

The revaluation profits and losses are recorded in the _________ account

(a)

Capital

(b)

Revaluation

(c)

Profit and loss

(d)

None of these

________ is computed at the time of admission of a new partner.

(a)

Gaining ratio

(b)

Capital ratio

(c)

Sacrificing ratio

(d)

New ratio

At the time of admission of a new partner, revaluation of ______ and _______should be taken up.

(a)

Capital & Assets

(b)

Capital & Liabilities

(c)

Assets & Liabilities

(d)

Income & Expenses

A,B and C enter into a partnership investing Rs. 35000, Rs. 45000 and 55000. Find the their respective shares in annual profit of 40,500 __________

(a)

10500, 13500, 19500

(b)

10500, 13500, 18500

(c)

10500, 13500, 17500

(d)

10500, 13500, 16500

On retirement of a partner, general reserve is transferred to the

(a)

Capital account of all the partners

(b)

Revaluation account

(c)

Capital account of the continuing partners

(d)

Memorandum revaluation account

The profit or loss arising therefrom is transferred to the capital accounts of all the partners in the _____________

(a)

New profit sharing ratio

(b)

Old profit sharing ratio

(c)

Gaining ratio

(d)

Sacrificing ratio

X, Y and Z are partners in the ratio of 5:3:2 Goodwill is valued at 40,000. If Z retire, the amount of goodwill credited to his capital account is ______________

(a)

Rs. 8,000

(b)

Rs. 50,000

(c)

Rs. 12,000

(d)

Rs. 12,000

_____account which is otherwise called profit and loss adjustment account

(a)

Capital

(b)

General reserve fund

(c)

Revaluation

(d)

Goodwill

Partner’s equity is affected due to __________

(a)

Retirement of a partner

(b)

Admission of a partner

(c)

Death of a partner

(d)

All of these

The proportion in which the continuing partners benefit due to retirement of partner ______________

(a)

Sacrificing Ratio

(b)

Gaining Ratio

(c)

Both (a) & (b)

(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%

A preference share is one
(i) which carries preferential right with respect to payment of dividend at fixed rate
(ii) which carries preferential right with respect to repayment of capital on winding up

(a)

Only (i) is correct

(b)

Only (ii) is correct

(c)

Both (i) and (ii) are correct

(d)

Both (i) and (ii) are incorrect

The money raised by issuing shares is called

(a)

Share capital

(b)

Dividend

(c)

Equity capital

(d)

Share application

Equity shares may be issued for cash at ___________

(a)

premium

(b)

discount

(c)

dividend

(d)

none of these

____ has perpetual succession and the liability of the members is limited.

(a)

Company

(b)

Industry

(c)

Business

(d)

Organisation

Application money must be at least _____ per cent of the nominal value of the shares.

(a)

2

(b)

3

(c)

5

(d)

6

Capital Reserve represents _____ profit.

(a)

Revenue

(b)

both 'a' and 'b'

(c)

Deferred revenue

(d)

Capital

Penalty for delay in refunding application money ___________________

(a)

6%

(b)

5%

(c)

15%

(d)

20%

After getting minimum subscription of shares, the company has to allot shares within ___________ days

(a)

90

(b)

100

(c)

110

(d)

120

When a shareholder fails to pay the amount due on allotment or on calls, the amount remaining unpaid is known ________

(a)

Calls in arrear

(b)

Calls in advance

(c)

Capital Reserve

(d)

None of these

Which of the following statements is not true?

(a)

Notes and schedules also form part of financial statements

(b)

The tools of financial statement analysis include common-size statement

(c)

Trend analysis refers to the study of movement of figures for one year

(d)

The common–size statements show the relationship of various items with somecommon base, expressed as percentage of the common base

Preparation of common size statements and computation of ratios are examples of __________

(a)

Ratio analysis

(b)

Vertical analysis

(c)

Horizontal analysisNone of these

(d)

None of these

_______ is a statement of assets and liabilities which shows the financial position as on a particular date.

(a)

Financial statement

(b)

Trial Balance

(c)

Balance sheet

(d)

None of these

___________ analysis is useful in judging the credit worthiness financial planning and preparation of budgets.

(a)

Trend

(b)

Funds flow

(c)

Cash flow

(d)

All of these

Current assets excluding inventory and prepaid expenses is called

(a)

Reserves

(b)

Tangible assets

(c)

Funds

(d)

Quick assets

All solvency ratios are expressed in term of

(a)

Proportion

(b)

Time

(c)

Money

(d)

Percentage

_______ is expressed as a quotient.

(a)

Pure

(b)

Percentage

(c)

Statement

(d)

None of these

_______ ratio is an indicator of operational efficiency of an organisation.

(a)

Net profit

(b)

Gross profit

(c)

Operating cost

(d)

Operating profit

Function key F11 is used for

(a)

Company Features

(b)

Accounting vouchers

(c)

Company Configuration

(d)

None of these

All transactions related to receipt either in cash or through bank are recorded using ____________

(a)

payment voucher

(b)

contra voucher

(c)

receipt voucher

(d)

sales voucher

To change current data from Gateway of Tally press the key _________

(a)

F1

(b)

F2

(c)

F5

(d)

F9

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

(a)

Purchase voucher

(b)

Sales voucher

(c)

Journal voucher

(d)

Contra voucher