This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 36 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 36 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which concept says that Accounting practices once adopted should be applied year after year? A) Conservatism. B) Accrual. C) Business entity. D) Consistency. Show Answer Correct Answer: D) Consistency. 2. X Ltd. Forfeited 500 shares of ₹ 10 each, ₹ 7 called up, issued at a premium of ₹ 2 per share to be paid at the time of allotment for non payment of first call of ₹ 2 per share. Entry on forfeiture will be: A) Share capital A/c Dr 3, 500Securities Premium Reserve A/c Dr 1, 000To Share First Call A/c 1, 000To Share Forfeiture A/c 3, 500. B) Share capital A/c Dr 4, 500Securities premium Reserve A/c Dr 1, 000To Share First Call A/c 1, 000To Share Forfeiture A/c 4, 500. C) Share Capital A/c Dr 4, 500To Share first Calle A/c 1, 000To Share Forfeiture A/c 3, 500. D) Share Capital A/c DrTo Share First Call A/c 1, 000To Share Forfeiture A/c 2, 500. Show Answer Correct Answer: D) Share Capital A/c DrTo Share First Call A/c 1, 000To Share Forfeiture A/c 2, 500. 3. Which of the following is/are method(s) of valuation of goodwill? A) Average profit method. B) Super profit method. C) Capitalisation method. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. Debentures represent the A) Long-term Borrowings of a Company. B) The Investment of Equity-Shareholders. C) Directors share in a Company. D) Short-Term Borrowings of a Company. Show Answer Correct Answer: A) Long-term Borrowings of a Company. 5. Gama Chemicals Ltd. is a newly formed company. How much discount per share can it allow for issuing the shares to the public? A) 6%. B) 10%. C) 5%. D) None of these. Show Answer Correct Answer: D) None of these. 6. You are recording info in the ledger. You are posting a debit to an account that already has a debit balance. What do you do? A) Add. B) Subtract. C) Just move the number. D) None of above. Show Answer Correct Answer: A) Add. 7. WHO USES THE BILL OF EXCHANGE? A) The cashier. B) The drawee, the payee and the drawer. C) The retailer. D) None of above. Show Answer Correct Answer: B) The drawee, the payee and the drawer. 8. Interest Payable on Debenture is A) An Appropriation of profits of the Company. B) A charge against profits of the Company. C) Transferred to sinking fund investment account. D) Transferred to general reserve. Show Answer Correct Answer: B) A charge against profits of the Company. 9. Journal proper includes entries related to ..... A) Sale of asset on credit. B) Sale of asset for cash. C) Sale of goods for cash. D) Sale of goods on credit. Show Answer Correct Answer: A) Sale of asset on credit. 10. Salary paid in cash during the current year was Rs 80, 000; Outstanding salary at the end was Rs 4, 000; salary paid in advance last year pertaining to the current year was Rs 3, 200; paid in advance during current year for next year was Rs 5, 000; the amount debited to Income and Expenditure Account will be: A) Rs 85, 800. B) Rs 77, 800. C) Rs 82, 200. D) Rs 74, 200. Show Answer Correct Answer: C) Rs 82, 200. 11. The principal amount of debentures will be repaid by the Company either at the end of a specified period or by installments during the life time of the Company. Such types of debentures are Called A) Redeemable Debentures. B) Irredeemable Debentures. C) Convertible Debentures. D) Bearer Debentures. Show Answer Correct Answer: A) Redeemable Debentures. 12. Carriage inward is recorded in A) Trading account credit side. B) Trading account debit side. C) Profit and loss account debit side. D) Profit and loss account credit side. Show Answer Correct Answer: B) Trading account debit side. 13. Purchase goods for cash affects on A) Purchases. B) Goods. C) Purchases and cash. D) Goods and cash. Show Answer Correct Answer: D) Goods and cash. 14. Proceeds from the sale of equipment used in the business A) Operating. B) Investing. C) Financing. D) Supplemental. Show Answer Correct Answer: B) Investing. 15. Which of the following is not incorporated in the Partnership Act? A) Profit & Loss are to be shared equally. B) No interest is to be allowed on capital. C) Partner's loan is to be allowed interest @ 6% p.a. D) All drawings are to be charged interest. Show Answer Correct Answer: D) All drawings are to be charged interest. 16. Goodwill of the firm is not affected by A) Location of the firm. B) Reputation of firm. C) Better customer service. D) None. Show Answer Correct Answer: D) None. 17. If profit is insufficient int. On capital will not be provided A) True. B) False. Show Answer Correct Answer: A) True. 18. Interest received of 100 was recorded as interest paid. What will be the effect on cash balance? A) Cash will reduce by 100. B) Cash will increase by 200. C) Cash will reduce by 200. D) No effect on cash balance. Show Answer Correct Answer: C) Cash will reduce by 200. 19. The business is liable to the proprietor of the business in respect of capital introduced by the person according to A) Money measurement concept. B) Cost concept. C) Business entity concept. D) Dual aspect concept. Show Answer Correct Answer: C) Business entity concept. 20. Income received in advance if given in a trial balance is shown in A) Trading a/c as deduction from the respective income. B) Profit and loss account as deduction from the respective income. C) Profit and loss account as deduction from the respective income and in the liability side of the balance sheet. D) Balance sheet in the liability side. Show Answer Correct Answer: D) Balance sheet in the liability 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