This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 21 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An amount written in parentheses on a financial statement indicates an estimate. A) True. B) False. Show Answer Correct Answer: B) False. 2. A, B and C shared profit and losses in the ratio of 3:2:1 respectively. With effect from 1st April, 2016, they agreed to share profits equally. The goodwill of the firm was valued at Rs.18, 000. Pass necessary journal entry. A) A's Capital A/c Dr. 3, 000 To C's Capital A/c 3, 000. B) C's Capital A/c Dr. 3, 000 To A 's Capital A/c 3, 000. C) B's Capital A/c Dr. 3, 000C's Capital A/c Dr. 3, 000 To A's Capital A/c 3, 000. D) None of the above. Show Answer Correct Answer: B) C's Capital A/c Dr. 3, 000 To A 's Capital A/c 3, 000. 3. Issued share capital can be more than authorised capital A) True. B) False. C) Don't know. D) None of these. Show Answer Correct Answer: B) False. 4. Which of the following is an example of an expense? A) Machinery. B) Bank. C) Petrol. D) None of above. Show Answer Correct Answer: C) Petrol. 5. Double Entry System of Book-Keeping means ..... A) Entry in two set of book. B) Entry for two aspects of the transactions. C) Entry at two dates. D) All of above. Show Answer Correct Answer: B) Entry for two aspects of the transactions. 6. If Vendors are issued debentures ofRs. 2, 40, 000 in consideration ofnet assets of Rs. 3, 00, 000 then the balance of Rs. 60, 000 will be transferred to ..... A) Statement of Profit & Loss. B) Capital Reserve Account. C) Goodwill Account. D) General Reserve Account. Show Answer Correct Answer: B) Capital Reserve Account. 7. If any loan is given by the partner then, balance of such loan Account should be transferred to A) B/S Asset Side. B) B/S Liability Side. C) Partner's Capital A/c. D) Partner's Current A/c. Show Answer Correct Answer: B) B/S Liability Side. 8. If a fixed amount is withdrawn by a partner on the last day of every month, interest on drawings is charged for A) 12 months. B) 6.5 months. C) 5.5 months. D) 6 months. Show Answer Correct Answer: C) 5.5 months. 9. Out of the following which is not a part of the change in profit sharing ratio A) Determination of sacrificing and gaining ratio. B) Accounting of goodwill. C) Accounting of reserves, accumulated profits and losses. D) Dissolution of partnership firm. Show Answer Correct Answer: D) Dissolution of partnership firm. 10. Assertion( A):The main objective of accounting is to maintain the records of business transactions.Reason ( R):Accounting records all the transactions whether related to money or not. A) Both ( A) and ( R) are true and R is the correct explanation of A. B) Both ( A) and ( R) are true but R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: C) A is true but R is false. 11. When the shares are issued for consideration other than cash which account will be debited A) Securities Premium. B) Capital Reserve A/c. C) Vendor A/c. D) Share Capital A/c. Show Answer Correct Answer: C) Vendor A/c. 12. Adjustments given are recorded once in a trading and profit and loss account and again in balance sheet. it is so because of A) Matching Principle. B) Dual Aspect Principle. C) Accrual concept. D) Materiality Concept. Show Answer Correct Answer: B) Dual Aspect Principle. 13. Subscribe share capital can be less than or equal to the issued share capital but cannot be more A) True. B) False. Show Answer Correct Answer: A) True. 14. In trial Balance, which account with normal balance is recorded in the credit side? A) Bank Account. B) Equipment Account. C) Cash Account. D) Accrued Expenses Account. Show Answer Correct Answer: D) Accrued Expenses Account. 15. Cash discount is ..... A) Which is allowed at the time of making the payment. B) Allowed at the time of sale of goods. C) Received at the time of purchases of goods. D) Received both at the time of making payment and purchase of goods. Show Answer Correct Answer: A) Which is allowed at the time of making the payment. 16. Single entry system is based on A) Cash book and Personal account. B) Cash book and Real account. C) Cash book and Nominal account. D) All the 3 accounts. Show Answer Correct Answer: A) Cash book and Personal account. 17. When a company issues shares at a premium, amount of premium may be received by the company: A) Along with application money. B) Along with application money. C) Along with calls. D) Along with any of the above. Show Answer Correct Answer: D) Along with any of the above. 18. A and B are partners in a firm with capitals of ₹ 10, 000 and ₹ 20, 000 each. A wants a salary of ₹ 500 p.a. the firm earns a net profit of ₹ 50, 000 in that year. What will be the share of profit? A) 24, 750 each. B) 25, 000 each. C) 20, 000 each. D) 15, 000 each. Show Answer Correct Answer: B) 25, 000 each. 19. On form resolution which amount should be paid at the last A) Realisation account. B) Capital account. C) Bank account. D) No entries. Show Answer Correct Answer: C) Bank account. 20. Depreciation on plant and machinery will be recorded in A) Trading account debit side. B) Balancesheet asset side. C) Profit and loss account debit side. D) Profit and loss account credit side. Show Answer Correct Answer: C) Profit and loss account debit side. ← PreviousNext →Related QuizzesAccounting QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 8Accountancy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books