This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 31 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. John Smith invested 15, 000. How would you record it in the General Journal? A) John Smith Capital (DR) Cash (CR). B) Cash (DR) John Smith, Capital (CR). Show Answer Correct Answer: B) Cash (DR) John Smith, Capital (CR). 2. Liability of a shareholder is limited to ..... of the shares allotted A) Paid up value. B) Called up value. C) Face value. D) Reserve price. Show Answer Correct Answer: C) Face value. 3. In a partnership firm, a partner withdrew ₹ 5, 000 per month on the first day of every month during the year for personal expenses. If interest on drawings is charged @6%p.a. the interest charged will be: A) ₹ 3, 600. B) ₹ 1, 950. C) ₹ 1, 800. D) ₹ 1, 650. Show Answer Correct Answer: B) ₹ 1, 950. 4. .... all expenses and losses 2 ..... what goes out3 ..... the giver. A) Debit, debit, debit. B) Credit, credit, credit. C) He owes, he owes, he owes. D) Debit, credit, credit. Show Answer Correct Answer: D) Debit, credit, credit. 5. Balaji and Kamalesh are partners sharing profits and losses in the ratio of 2:1, they admit yogesh into partnership.the new profit sharing ratio between balaji kamalesh and yogesh is agreed to 3:1:1.Find the sacrificing ratio between balaji and kamalesh A) 1:3. B) 3:1. C) 2:1. D) 1:2. Show Answer Correct Answer: D) 1:2. 6. Vikas is a partner in a firm. His drawings during the year ended 31st March 2019 were ₹ 30, 000. If interest on drawings is charged @9% p.a the interest charged will be A) ₹ 270. B) ₹ 2, 700. C) ₹ 1, 350. D) None of these. Show Answer Correct Answer: C) ₹ 1, 350. 7. Cash book records ..... receipts and payments. A) Cash. B) Credit. C) Cash and credit both. D) Either cash or credit. E) Neither cash nor credit. Show Answer Correct Answer: A) Cash. 8. X & Y are partners in the ratio of 3:2. Their capitals are ₹ 2, 00, 000 & ₹ 1, 00, 000 respectively. Interest on capitals is allowed @8%p.a Firm earned a profit of ₹ 60, 000 for the year ended 31st March 2019. Interest on Capital will be: A) X ₹ 16, 000; Y ₹ 8, 000. B) X ₹ 8, 000; Y ₹ 4, 000. C) X ₹ 14, 400; Y ₹ 9, 600. D) No interest will be allowed. Show Answer Correct Answer: A) X ₹ 16, 000; Y ₹ 8, 000. 9. A chartered Company is established by head of the ..... A) Government. B) State. C) Region. D) District. Show Answer Correct Answer: B) State. 10. Sole proprietorship business can be started by A) At least seven persons. B) Any one person. C) At least two persons. D) At least three persons. Show Answer Correct Answer: B) Any one person. 11. If goods are distributed as free samples, which account should you debit? A) Purchases. B) Goods. C) Free sample. D) Advertising. Show Answer Correct Answer: D) Advertising. 12. In the absence of any information, it is assumed that Securities Premium is due alongwith ..... A) Application Money. B) Allotment Money. C) Call Money. D) As per convenience. Show Answer Correct Answer: B) Allotment Money. 13. Surplus, i.e., Balance in Statement of profit and loss is shown as A) Share capital. B) Reserves and surplus. C) Other long-term liabilities. D) Current liabilities. Show Answer Correct Answer: B) Reserves and surplus. 14. What is meant by a Debenture? A) Debenture is an oral acknowledgement of debt taken by company. B) Debenture is a written acknowledgement of debt taken by company. C) Debenture may be written or oral acknowledgement of debt taken by company. D) None of these. Show Answer Correct Answer: B) Debenture is a written acknowledgement of debt taken by company. 15. Investment Fluctuation Reserve Rs. 1, 80, 000, Investment Rs. (Book Value) 4, 00, 000 & Market value Rs.4, 20, 000 with what Amount A will be credited. If their are three Partners Sharing Profit & Losses 2:2:1. Now From 1st April 2020 wants to change to 3:2:1. A) Rs.72, 000. B) Rs.80, 000. C) Rs.1, 00, 000. D) Rs.1, 08, 000. Show Answer Correct Answer: B) Rs.80, 000. 16. A and B are partners sharing profits in ratio of 2:1. They admit C for 1/3 share in profits. The sacrifice ratio of A and B is A) 2:3. B) 1:2. C) 2:1. D) 1:1. Show Answer Correct Answer: C) 2:1. 17. Declaration and payment of dividends on company's stock. A) Operating. B) Investing. C) Financing. D) Supplemental. Show Answer Correct Answer: C) Financing. 18. Ascertain the accounting equation when, purchase furniture for Rs. 10, 000 A) 10, 000 = 0 + 10, 000. B) 10, 000 + 10, 000 = 0 + 0. C) (-) 10, 000 + 10, 000 = 0 + 0. D) 10, 000 = 10, 000 + 0. Show Answer Correct Answer: C) (-) 10, 000 + 10, 000 = 0 + 0. 19. An Expense is..... A) An expense is defined as a decrease in assets which can be a distribution to the owner. B) An expense is defined as an increase in assets which can be a distribution to the owner. C) An expense is defined as a decrease in assets which is not a distribution to the owner. D) None of above. Show Answer Correct Answer: C) An expense is defined as a decrease in assets which is not a distribution to the owner. 20. The ..... of a business firm is measured by its ability to satisfy its short term obligations as they become due. A) Activity. B) Liquidity. C) Debt. D) Profitability. Show Answer Correct Answer: B) Liquidity. ← 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