This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A Co. has issued 6, 000 equity shares of. Rs. 10 each at par and called up amount Rs. 6 per share. The remaining part of capital is termed as A) Called up Capital. B) Paid up Capital. C) Uncalled Capital. D) Subscribed Capital. Show Answer Correct Answer: C) Uncalled Capital. 2. The value of goodwill is based on ..... judgment of the valuer. A) Subjective. B) Objective. C) Both. D) None. Show Answer Correct Answer: A) Subjective. 3. Distributing reserve A) General reserve To old partners cap. B) Old partners cap. To general reserve. C) General reserve To new partners. D) New partners cap. To general reserve. Show Answer Correct Answer: A) General reserve To old partners cap. 4. Dinesh who owed us Rs 8, 000 became insolvent and paid us 60% in full settlement. Posting will be made to Dinesh A/c: A) Rs 8, 000 on Debit side. B) Rs 8, 000 on Credit side. C) Rs 4, 800 on Debit side. D) Rs 4, 800 on Credit side. Show Answer Correct Answer: B) Rs 8, 000 on Credit side. 5. Goodwill at the time of Dissolution of Firm is Closed by transferring it to Partners' Capital Accounts. A) True. B) False. Show Answer Correct Answer: B) False. 6. If the retiring partner is not paid full amount due to him immediately on retirement, his balance is transferred to his A) Loan A/c. B) Capital A/c. C) Bank A/c. D) Suspense A/c. Show Answer Correct Answer: A) Loan A/c. 7. On dissolution of a partnership firm, goodwill if appearing in the balance sheet, is transferred to A) Revaluation a/c. B) Realisation a/c. C) Partners capital a/c. D) Balance sheet. Show Answer Correct Answer: B) Realisation a/c. 8. Capital Reserve Created out of A) Super profit. B) Average profit. C) Capital profit. D) Normal profit. Show Answer Correct Answer: C) Capital profit. 9. The formula of sales revenue less cost of goods sold enables you to calculate A) Net profit. B) Operating profit. C) Retained profit. D) Gross profit. Show Answer Correct Answer: D) Gross profit. 10. Profit 10500 commission 5% after charging commission A) 50. B) 150. C) 550. D) 500. Show Answer Correct Answer: D) 500. 11. A Company purchased a building for Rs. 7, 20, 000 and issued as payment equity shares at 20% premium. Journal Entry will be ..... A) Share Capital a/c Dr 8, 00, 000To Building a/c 7, 20, 000To Securities Premium a/c 80, 000. B) Building a/c Dr 8, 00, 000To Share Capital a/c 6, 40, 000To Securities Premium a/c 1, 20, 000. C) Share Capital a/c Dr 7, 20, 000To Building a/c 7, 00, 000To Securities Premium a/c 20, 000. D) Building a/c Dr 7, 20, 000To Share Capital a/c 6, 00, 000To Securities Premium a/c 1, 20, 000. Show Answer Correct Answer: D) Building a/c Dr 7, 20, 000To Share Capital a/c 6, 00, 000To Securities Premium a/c 1, 20, 000. 12. WHICH OF FOLLOWING IS NOT AN ADVANTAGE OF DOUBLE ENTRY SYSTEM? A) SCIENTIFIC METHOD. B) COMPLETE METHOD. C) ARITHMETICAL ACCURACY. D) TIME CONSUMING. Show Answer Correct Answer: D) TIME CONSUMING. 13. When the partners decide to dissolve the partnership, then the a/c prepared is A) Revaluation a/c. B) Realisation A/c. C) Memorandum revaluation. D) None of these. Show Answer Correct Answer: B) Realisation A/c. 14. A and B are partners sharing profits in the ratio of 3:2. On admission of C for 1/5th share, Land is appreciated by 10% (Book Value Rs.80, 000), Building is decreased by 20% (Rs. 2, 00, 000), Unrecorded Debtors of Rs. 1, 250 are bought in the books and Creditors of Rs. 2, 750 need not be paid. The Gain(profit) /loss on revaluation will be A) Loss ₹ 28, 000. B) Profit ₹ 40, 000. C) Profit ₹ 28, 000. D) Loss, ₹ 40, 000. Show Answer Correct Answer: A) Loss ₹ 28, 000. 15. 7 Trial balance is a A) (a) Statement. B) B) Account. C) (c) Ledger. D) (d) Journal. Show Answer Correct Answer: A) (a) Statement. 16. Which of the following is an incorrect formula? A) Capital = Assets-Liabilities. B) Capital + Assets = Liabilities. C) Capital + Liabilities = Assets. D) Capital-Assets = Liabilities. Show Answer Correct Answer: B) Capital + Assets = Liabilities. 17. All undistributed losses are transferred to capital account of the old partners in the ratio of A) New Profit Sharing Ratio. B) Gaining ratio. C) Old Profit Sharing Ratio. D) Sacrifice the system. Show Answer Correct Answer: C) Old Profit Sharing Ratio. 18. The purpose of accounting is to ..... A) Communicate information to interested users so that they can make informed decisions. B) Communicate financial and non-financial information to interested users so that they can make informed decisions. C) Communicate non-financial information to interested users so that they can make informed decisions. D) None of above. Show Answer Correct Answer: B) Communicate financial and non-financial information to interested users so that they can make informed decisions. 19. If rate of interest on Calls in advance is not mentioned in the question, It will be A) 6%. B) 10%. C) 12%. D) 15%. Show Answer Correct Answer: C) 12%. 20. Which of the following is not a sub-field of accounting? A) Financial Accounting. B) Book keeping. C) Cost Accounting. D) All of the above. Show Answer Correct Answer: B) Book keeping. ← PreviousNext →Related QuizzesAccounting QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 3Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 8Accountancy Quiz 9Accountancy Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books