Description : When an incoming partner purchases his share from any one of the existing partners, then- (A) total assets of the firm do not change (B) total assets of the firm will be augmented to the extent ... ) change in total assets of the firm will depend upon the new profit sharing ratio of the partners
Last Answer : Answer: total assets of the firm do not change
Description : The following data, relates to manufacturing company for the year 2006-07- Net Profit as per P & L A/c-Rs. 2,40,000; Depreciation-Rs. 80,000; Goodwill written-off- Rs. 40,000, Profit on Sale of Fixed Assets-Rs. 16,000, ... ) Rs. 4,40,000 (B) Rs. 4,00,000 (C) Rs. 6,40,000 (D) None of the above
Last Answer : Answer: None of the above
Description : The goods taken by the proprietor from the shop is debited to– (A) Shop account (B) Goods account (C) Capital account (D) Drawings accounts
Last Answer : Answer: Drawings accounts
Description : If it is required to maintain fixed capitals then the partners’ shares of profits must be A) Credited to capital accounts B) Debited to capital accounts C) Debited to partners’ current accounts D) Credited to partners’ current accounts
Last Answer : Answer: D
Description : The loss on the sale of old furniture is debited to– (A) profit & loss account (B) furniture account (C) trading account (D) depreciation account
Last Answer : Answer: profit & loss account
Description : Goods worth Rs. 2,000 were distributed to employees free of charge. The account to be debited is– (A) Profit and Loss A/c (B) Advertisement A/c (C) Labour Welfare A/c (D) Goods A/c
Last Answer : Answer: Profit and Loss A/c
Description : If super profit is Rs. 4‚000 and normal rate of return is 8 per cent, the amount of goodwill will be– (A) Rs. 40‚000 (B) Rs. 50‚000 (C) Rs. 4‚00‚000 (D) Rs. 5‚000
Last Answer : Answer: Rs. 50‚000
Description : Garner Vs. Murray rule applies in case of– (A) Admission of a partner (B) Dissolution of a firm (C) Retirement of a partner (D) Death of a partner
Last Answer : Answer: Dissolution of a firm
Description : When liquidation expenses is paid and borne by seller company then it is debited to_____ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.
Last Answer : (C) Realisation A/c
Description : When liquidation expenses is paid and borne by seller company then it is debited to _______ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.
Description : When the Net Assets are less than the Purchase Consideration, the difference will be (A) Debited to Goodwill A/c (B) Debited to General Reserve (C) None of these (D) Debited to Capital Reserve
Last Answer : While calculating purchase consideration ............... values of assets is to be considered. (A) Book value (B) Revalued price (C) Average price (D) Capital
Description : The return on capital employed shows the combined effect of– (A) net profit ratio and inventory turnover ratio (B) operating ratio and net profit ratio (C) net profit ratio and capital turnover ratio (D) gross profit ratio and capital turnover ratio
Last Answer : Answer: operating ratio and net profit ratio
Description : A b and c are partners sharing profit in the ratio of 5:3:2 if be retires when the new profit ratio will be?
Last Answer : 0.546527777777778
Description : A, B and C are 3 partners in a business. Their investments are respectively Rs 2000, Rs 4,000 and Rs 3,000. A gets 30% of total profit for managing the business. The remaining profit is divided among them in the ratio ... of income will C get? A) Rs 2100.75 B) Rs 2887.5 C) Rs 2705.75 D) Rs 2546.25
Last Answer : Answer: B) The ratio of profit of A, B and C is 2000:4000:3000=2:4:3. Let the annual profit be P. Then, A will get 0.3p for managing the business. And, remaining 0.7p will be distributed in the ratio of their ... ⇒ 7/9 0.7p−2/9 0.7p−0.3p=1100 ⇒ p=12,375 So, C's share=3/9 0.7p=Rs 2887.5
Description : On the admission of a partner, fictitious assets are– (A) Transferred to Revaluation Account (B) Transferred to Capital Account (C) Transferred to Reserves (D) Shown in the new Balance Sheet
Last Answer : Answer: Transferred to Revaluation Account
Description : Which of the following is a violation of the code of professional ethics for certified public accountants? a. A CPA permits his/her name to be used in a client's advertising as having ... the professional designation "CPA" after his name on posters employed in connection with his election campaign
Last Answer : Based on information obtained in an audit, a CPA reports an illegal act of his client to government authorities.
Description : Personal selling includes– (A) Selling (B) Services to the customers (C) Developing goodwill of the firm (D) All of the above
Last Answer : Answer: All of the above
Description : Goodwill, Copyright and Trademarks should be classified as– (A) Tangible assets (B) Intangible assets (C) Current assets (D) Fictitious assets
Last Answer : Answer: Intangible assets
Description : Ashok being the sleeping partner receives 1/10th of profit and the remaining is divided between pramod and prakash in the ratio of 1:2..If the difference between the profit shares of Ashok and Prakash is Rs.2000.What is pramod’s share in Rs.? A.Rs.1800 B.Rs.2200 C.Rs.1200 D.Rs.1500
Last Answer : Answer:- C (1200) Explanation:- let total profit =x ashok's share in profit is (1/10)x remaining profit = x= (1/10)x= (9/10)x pramod's share= 1/3 x (9/10)x = (3/10 )x Prakash's share= 2/3 ... /10)x = (5/10)x 5/10 x = 2,000 so, x= 4000 pramod's share= (3/10) x 4000=1200
Description : Sharuk being the active partner receives 3/5th of profit and the remaining is divided between sanjay and Karthi in the ratio of 2:1. If the difference between the profit shares of Sharuk and sanjay is Rs.3400. What is Karthi share in Rs? A) 1540 B) 1360 C) 1698 D) None
Last Answer : Answer: B) Total profit =Y Sharuk’s share =3/5 * Y Balance share =2/5 * Y Share of sanjay =2/5 *Y*2/3 =4/15 * Y Difference of sanjay & Sharuk share, 3/5* Y- 4/15* Y =3400 =>Y= Rs 10200 Karthi share =2/5 *10200 *1/3 =1360
Description : R being the silent partner contributes 2/9 th of profit and the remaining is divided between S and T in the ratio of 7:5. If the difference between the profit shares of R and T is Rs.6600. What is the S’s share? a) 27900 b) 28000 c) 29400 d) 26889
Last Answer : Answer: C) Let total profit be x R’s share =2/9*x Balance share =7/9 *x Share of T=7/9 *x*5/12=35/108*x Difference of R &T is, 35/108*X-2/9 *x=6600=>x=64,800 Share of S =7/9*64800*7/12 =Rs.29400.
Description : Goodwill written off is-----------to the net profit made during the year for calculating the cash from operation a) Added back b) Deducted c) Decreased d) None of these
Last Answer : a) Added back
Description : The existence of a Partnership Firm is– (A) Separate from partners (B) Not separate from partners (C) Both (A) and (B) (D) None of the above
Last Answer : Answer: Not separate from partners
Description : According to the Partnership Act, the maximum number of partners in a banking firm may be– (A) 10 (B) 12 (C) 4 (D) 20
Last Answer : Answer: 10
Description : What is the maximum number of partners in Banking business?
Last Answer : Ten
Description : Balance of Debenture Redemption Fund Account is transferred to– (A) Capital Reserve A/c (B) Profit and Loss A/c (C) General Reserve A/c (D) None of these
Last Answer : Answer: General Reserve A/c
Description : Government grants related to income as per the Accounting Standard (AS)-12 should be- (A) Presented as a credit in the statement of Profit and Loss (B) Presented as a deferred income on the asset ... of balance sheet (D) Presented both in the Profit and Loss statement and in the balance sheet
Last Answer : Answer: Presented both in the Profit and Loss statement and in the balance sheet
Description : How is profit prior to incorporation treated as ? (A) Revenue reserve (B) Secret reserve (C) Capital reserve (D) General reserve
Last Answer : Answer: Capital reserve
Description : Profit prior to incorporation is transferred to– (A) Capital reserve (B) General reserve (C) Profit and Loss Account (D) Trading Account
Description : The profit of a company (whose capital is divided into 25‚000 shares of Rs. 10 each) for the last three years are : Rs. 50‚000; Rs. 60‚000 and Rs. 40‚000. The fair return on investment is taken at 10% p.a. The value of company’s share will be– (A) Rs. 10 (B) Rs. 20 (C) Rs. 30 (D) Rs. 40
Last Answer : Answer: Rs. 20
Description : Net profit after tax of Rs. 2,00,000 is Rs. 4,00,000. Share capital is Rs. 8,00,000 and revenue reserve is Rs. 2,00,000. What is rate of return on equity ? (A) 40% (B) 50% (C) 60% (D) 75%
Last Answer : Answer: 40%
Description : When the Net Assets are less than the Purchase Consideration, the difference will be (A) Debited to Goodwill A/c (B) Debited to General Reserve (C) None of these
Last Answer : (A) Debited to Goodwill A/c
Description : Rate of Gross Profit on cost is 25%. Total sales is Rs. 1,00,000 and Average Stock is Rs. 1,60,000. Stock Turnover Ratio will be– (A) 0•5 times (B) 0•8 times (C) 0•10 times (D) 0•4 times
Last Answer : Answer: 0•5 times
Description : Sundry Debtors – Rs.15,000 Bills Receivable (B/R) – Rs.12,500 Cash at Bank – Rs.17,500 Stock – Rs.15,000 Profit – Rs.20,000 Creditors – Rs.25,000 Bills Payable (B/P) – Rs.15,000 Sales – Rs.1,00,000 What is the Acid Test Ratio ? (A) 1•5 : 1 (B) 1•125 : 1 (C) 16 2/3% (D) 50%
Last Answer : Answer: 1•125 : 1
Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times
Last Answer : Answer: 4•06 times
Description : Few items of P/L A/c of a company are– Sales – Rs.1,60,000 Closing stock – Rs.38,000 Non-operating Expenses – Rs.800 Non-operating Income – Rs.4,800 Net Profit – Rs.28,000 What is the Operating Profit Ratio ? (A) 18% (B) 20% (C) 15% (D) 57%
Last Answer : Answer: 15%
Description : A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of ... 2,00,000 (B) Rs. 2,40,000 (C) Rs. 2,50,000 (D) Rs. 2,60,000
Last Answer : Answer: Rs. 2,50,000
Description : On 1st April, 2013, Y Ltd. Issued 1000, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off ... & L A/c ? (A) Rs. 2000 (B) Rs. 1800 (C) Rs. 1200 (D) Rs. 600
Last Answer : Answer: Rs. 1200
Description : Dissolution of Partnership takes place when– (A) A partner misbehaves (B) A partner becomes of unsound mind (C) Business is running at a loss (D) A partner dies
Last Answer : Answer: A partner dies
Description : Pick out the wrong statement. (A) Gross revenue is that total amount of capital received as a result of the sale of goods or service (B) Net revenue is the total profit remaining ... indicates surplus capital and shows the relationship among total income, costs & profit over the time interval
Last Answer : (C) Working capital turnover ratio = sales/net working capital
Description : Shyam and Ram are active partners in a business. Shyam contributes 2/7th received capital of the profit for 21 month and Ram received 1/5th of the profit. Then how many long Ram invest the money in the business. a) 8months. b) 7months. c) 3months d) 1.5 months
Last Answer : Answer: D) Let total profit =P Ram’s profit =1/5 P Shyam profit =4/5 p Ratio of Shyam & Ram =4/5 p: 1/5 =4:1 Total amount put be X Shyam put =2/7*p for 21 months. Ram put =5/7 * p Ratio of Shyam & Ram =4:1=2/7 *p*21:5/7*p*T T= 1.5months = Ram amount investments time.
Description : Three active partners A, B, C start a work. Twice of A's capital is equal to 6 times of B's capital is nine times C's capital. If B's profit is Rs. 7500. Then find the total profit. a) 30750 b) 30833 c) 45250 d) 32745
Last Answer : Answer: B) The capital of C be y. The capital of B be 9y. The capital of A be 54y/2 = 27y Ratio of A:B:C =27y:9y:y Total =7500/9*37=Rs 30833.
Description : Ravi and kavi are partners in a business. Ravi contributes 3/7th of the total capital for 20 months and kavi received 3/4 th of the profit. Then how long kavi invest the money in the business? A) 5 B) 11 C) 6 D) 9
Last Answer : Answer: A) Total profit be X kavi’s profit is 3/4x Ravi’s profit is 1/4x Ratio of ravi & kavi profit =3/4 x: 1/4x=3:1 Let Ravi's investment =3/7 *P(for 20 months then, kavi’s investment =4/7 P) Ratio of ravi & kavi Profit =3:1=3/7*P*20 :4/7*p*T T=5 months= kavi investment time
Description : 3 partners A , B, C starts a business. 4 times of A's capital is equal to 6 times of B's Capital and B's Capital is 8 times of C's capital if profit of B is Rs.6300. Then find the average profit A and C A) 7000.50 B) 5118.75 C) 4475.25 D) none
Last Answer : Answer: B) Let the capital of C be y Let the capital of B be 8y Let the capital of A be 48y/4=12y Ratio of their profit is , A:B:C = 12y : 8y :y =12:8:1 Total of A&C =6300/8 *13 =Rs .10237.5 Average profit of A&C =10237.5/2 =Rs.5118.75
Description : Which one of the following transactions changes the current ratio ? (A) Purchase of goods for cash (B) Plant acquired on account (C) Sold goods on credit (D) Debentures converted into equity capital
Last Answer : Answer: Plant acquired on account
Description : Final accounts prepared in narrative style are in– (A) Horizontal form (B) Accounts form (C) Vertical form (D) None of the above
Last Answer : Answer: Vertical form
Description : Auditing of accounts is compulsory for– (A) Sole proprietary business (B) Partnership firms (C) Joint Stock Companies (D) None of the above
Last Answer : Answer: Sole proprietory business
Description : Which one of the following statements is correct ? (A) Audit of an educational institution is compulsory if it is run by a charitable trust (B) A club is treated as a commercial establishment ( ... who belongs to accountancy profession (D) Audit of a charitable trust is not compulsory under law
Last Answer : Answer: Audit of an educational institution is compulsory if it is run by a charitable trust Free
Description : Which one of the following statements is correct ? (A) Internal audit and Management audit are the same (B) Internal audit and statutory audit are the same (C) Internal audit is compulsory in all cases (D) Statutory audit of company accounts is compulsory
Last Answer : Answer: Statutory audit of company accounts is compulsory
Description : Capital employed is Rs.50,000 Trading Profit amounted Rs.12,200, Rs.15,000 and Rs.2000 loss for 2016, 2017 and 2018 respectively. Rate of interest is 8% and the rate of risk is 2% Remuneration from alternative employment of the ... A Rs.8,000 B Rs.8,800 C Rs.8,850 D Rs.9,500 ANS: Rs.8,850
Last Answer : A