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Accounting

Description: Accounting
Number of Questions: 14
Created by:
Tags: Commerce Class XI / XII
Attempted 0/14 Correct 0 Score 0

When two or more companies liquidate to form a new company, what is this process called?

  1. Venturing a new business

  2. Collaboration

  3. Reconstruction

  4. Amalgamation

  5. Absorption


Correct Option: D
Explanation:

Amalgamation is the term used when two or more companies liquidate to form a new company.

A, B and C are partners in a firm. If Z wants to join the firm as a new partner, which of the following has to be done?

  1. Old partnership has to be dissolved.

  2. Old firm has to be dissolved.

  3. Both firm and partnership have to be dissolved.

  4. Their is no need to dissolve either firm or partnership.

  5. No new partner can join the firm once the firm is formed.


Correct Option: D
Explanation:

New partner can join the firm without dissolving partnership or firm. However, it is called reconstitution of firm.

Which of the following applies to salary received by members of parliament?

  1. Taxable under the head of business profits

  2. Taxable under the head of income from other sources

  3. Taxable under the head of partnership

  4. Taxable under the head of salary

  5. Exempted from tax


Correct Option: B
Explanation:

Salary received by members of parliament is taxable under the head of other sources.

Ram and Mohan are partners in a firm. They admitted Sohan into the partnership giving him fourth share in future profits. The new profit sharing ratio of all the partners will be

  1. 3:1:2

  2. 3:3:2

  3. 3:3:3

  4. 3:2:1

  5. 1:2:2


Correct Option: B
Explanation:

This is the correct answer as both Ram and Mohan will share equal profit, and Sohan will get fourth share of the future profit.

If sales are Rs. 12000, opening stock is Rs. 2200, closing stock Rs. 1000, purchases Rs. 6400, carriage inward Rs. 300, what will be the cost of goods sold?

  1. Rs. 20900

  2. Rs. 7900

  3. Rs. 7600

  4. Rs. 8900

  5. Rs. 19900


Correct Option: C
Explanation:

Carriage inward will also be added in the calculation to find the correct answer.

Unclaimed dividend is shown in balance sheet under which of the following?

  1. Assets

  2. Current Liabilities

  3. Reserve and surplus

  4. Provisions

  5. Miscellaneous items


Correct Option: B
Explanation:

According to the Companies Act 1956, unclaimed dividend should be transferred to the Investor education and Protection Fund Account. This is to be shown under Current Liabilities as Unpaid Dividend in the Balance Sheet.

Depreciation is allowed on which of the following?

  1. Tangible assets

  2. Intangible assets

  3. Current assets

  4. Fixed assets

  5. All of these


Correct Option: D
Explanation:

Depreciation is allowed only on fixed assets.

A limited company issued equity share of Rs. 100 each . It has called up Rs. 85 per share but received only Rs. 70 per share. The share capital account will be credited with which of the following?

  1. Rs. 100 per share

  2. Rs. 85 per share

  3. Rs. 70 per share

  4. Rs. 15 per share

  5. None of these


Correct Option: B
Explanation:

This is the correct answer.

'Surprise Checks' is a part of which of the following?

  1. An auditor's report

  2. An auditor's standard

  3. An auditor's program

  4. An auditor's working papers

  5. None of these


Correct Option: C
Explanation:

Audit program includes set of polices and procedures for the implementation of auditing. Surprise check is the part of auditor's programme.

Which of the following is a correct way to calculate long term liability?

  1. Total liabilities - current liabilities

  2. Revenue - expenses

  3. Net working capital + current liabilities

  4. Current assets - current liabilities

  5. Current assets/current liability


Correct Option: A
Explanation:

This is the correct way to calculate long term liability. Long term liabilities are liabilities with future benefit of 1 year, such as notes payable that mature after one year.

How many times does the statutory meeting of the company occur?

  1. Once in every three months

  2. Once in six months

  3. Once a year

  4. Once in lifetime of a company

  5. Once a month


Correct Option: D
Explanation:

Statutory meeting occurs only once in lifetime of a company.

The new machinery installation expenses will be debited to which of the following accounts?

  1. Profit and loss accounts

  2. Expense account

  3. Cash account

  4. Suppliers account

  5. Machinery account


Correct Option: E
Explanation:

It will be debited to machinery account.

Personal account of suppliers are found in which of the following ledgers?

  1. Purchase ledger

  2. Sales ledger

  3. Nominal ledger

  4. General ledger

  5. None of these


Correct Option: A
Explanation:

This ledger is for suppliers' (creditors) personal accounts.

From the given data, calculate the amount of capital. Assets: Building = Rs. 22000, Stock = Rs. 10000, Cash = Rs. 1000 Liabilities : Creditors = Rs. 6000, Loan from bank = Rs. 8000

  1. Rs. 14000

  2. Rs. 33000

  3. Rs. 19000

  4. Rs. 47000

  5. None of these


Correct Option: C
Explanation:

Capital = Assets - Liabilities, Rs 33000 - Rs 14000 = Rs 19000

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