This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Distributing reserve A) General reserve To new partners. B) New partners cap. To general reserve. C) General reserve To old partners cap. D) Old partners cap. To general reserve. Show Answer Correct Answer: C) General reserve To old partners cap. 2. 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 4, 800 on Credit side. C) Rs 4, 800 on Debit side. D) Rs 8, 000 on Credit side. Show Answer Correct Answer: D) Rs 8, 000 on Credit side. 3. 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. 4. If the retiring partner is not paid full amount due to him immediately on retirement, his balance is transferred to his A) Bank A/c. B) Loan A/c. C) Suspense A/c. D) Capital A/c. Show Answer Correct Answer: B) Loan A/c. 5. On dissolution of a partnership firm, goodwill if appearing in the balance sheet, is transferred to A) Partners capital a/c. B) Realisation a/c. C) Revaluation a/c. D) Balance sheet. Show Answer Correct Answer: B) Realisation a/c. 6. Capital Reserve Created out of A) Average profit. B) Capital profit. C) Super profit. D) Normal profit. Show Answer Correct Answer: B) Capital profit. 7. The formula of sales revenue less cost of goods sold enables you to calculate A) Gross profit. B) Net profit. C) Operating profit. D) Retained profit. Show Answer Correct Answer: A) Gross profit. 8. Profit 10500 commission 5% after charging commission A) 150. B) 50. C) 500. D) 550. Show Answer Correct Answer: C) 500. 9. 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 7, 20, 000To Building a/c 7, 00, 000To Securities Premium a/c 20, 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 8, 00, 000To Building a/c 7, 20, 000To Securities Premium a/c 80, 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. 10. WHICH OF FOLLOWING IS NOT AN ADVANTAGE OF DOUBLE ENTRY SYSTEM? A) TIME CONSUMING. B) ARITHMETICAL ACCURACY. C) COMPLETE METHOD. D) SCIENTIFIC METHOD. Show Answer Correct Answer: A) TIME CONSUMING. 11. 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. 12. 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) Profit ₹ 40, 000. B) Loss, ₹ 40, 000. C) Profit ₹ 28, 000. D) Loss ₹ 28, 000. Show Answer Correct Answer: D) Loss ₹ 28, 000. 13. 7 Trial balance is a A) B) Account. B) (d) Journal. C) (c) Ledger. D) (a) Statement. Show Answer Correct Answer: D) (a) Statement. 14. Which of the following is an incorrect formula? A) Capital = Assets-Liabilities. B) Capital-Assets = Liabilities. C) Capital + Assets = Liabilities. D) Capital + Liabilities = Assets. Show Answer Correct Answer: C) Capital + Assets = Liabilities. 15. All undistributed losses are transferred to capital account of the old partners in the ratio of A) New Profit Sharing Ratio. B) Old Profit Sharing Ratio. C) Gaining ratio. D) Sacrifice the system. Show Answer Correct Answer: B) Old Profit Sharing Ratio. 16. 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. 17. If rate of interest on Calls in advance is not mentioned in the question, It will be A) 10%. B) 6%. C) 12%. D) 15%. Show Answer Correct Answer: C) 12%. 18. 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. 19. Shares Application &Allotment A/c is a:- A) Artificial A/C. B) Nominal. C) Personal. D) Real. Show Answer Correct Answer: C) Personal. 20. Purchasing of goods from foreign countries for resale is known as ..... A) Import. B) Export. C) Enterprise. D) All of above. Show Answer Correct Answer: C) Enterprise. 21. Minimum subscription for issue of share ..... A) 90%. B) 10%. C) 80%. D) 60%. Show Answer Correct Answer: A) 90%. 22. A, a creditor for Rs.25, 000 accepted a plant at Rs.18, 000 in settlement of his claim, which of the following statement is correct- A) 25, 000 shall be debited to creditors a/c. B) 25, 000 shall be credited to P&M a/c. C) No entry shall be passed. D) 7, 000 shall be debited to realization a/c & 7, 000 shall be credited to cash a/c. Show Answer Correct Answer: D) 7, 000 shall be debited to realization a/c & 7, 000 shall be credited to cash a/c. 23. WHERE ARE BILLS OF EXCHANGE USED? A) Associations. B) Tourism. C) International trade. D) None of above. Show Answer Correct Answer: C) International trade. 24. The basic function of Financial accounting A) Record all business transactions. B) Interpret financial data. C) Assist the management. D) None of these. Show Answer Correct Answer: A) Record all business transactions. 25. Which of the following equation is correct ..... A) Assets= Capital-Liabilities. B) Liabilities= Assets-Capital. C) Assets= Liabilities-Capital. D) Capital= Assets + Liabilities. Show Answer Correct Answer: B) Liabilities= Assets-Capital. 26. Nisha paid Realiastion Expenses of Rs.10, 000 out of her private funds, who was to get a remuneration of Rs.8, 000 for completing dissolution process and was responsible to bear all the realisation expenses. Choose the correct option: A) Nisha's Capital Account will be Credited by Rs.8, 000. B) Nisha's Capital Account will be Debited by Rs.8, 000. C) Nisha's Capital Account will be Credited by Rs.18, 000. D) Nisha's Capital Account will be Debited by Rs.18, 000. Show Answer Correct Answer: A) Nisha's Capital Account will be Credited by Rs.8, 000. 27. ..... refers to choosing a desirable course of action from alternative courses of action A) Decision. B) Planning. C) Control. D) Forecasting. Show Answer Correct Answer: A) Decision. 28. How goodwill is recorded on the retirement of a partner? A) Goodwill A/c Dr. To Retiring Partner's Capital A/c (with his share). B) Remaining Partner's Capital A/cs Dr. (In Gaining Ratio) To Retiring Partner's Capital A/c (with his share of goodwill). C) Goodwill A/c Dr. To All Partner's Capital A/cs (In Old Ratio). D) Remaining Partner's Capital A/cs Dr. (In New Ratio) To Retiring Partner's Capital A/c (with his share of goodwill). Show Answer Correct Answer: B) Remaining Partner's Capital A/cs Dr. (In Gaining Ratio) To Retiring Partner's Capital A/c (with his share of goodwill). 29. The portion of the capital which can be called-up only on the winding up of the company is called: A) Authorised capital. B) Uncalled capital. C) Reserve capital. D) Issued capital. Show Answer Correct Answer: C) Reserve capital. 30. Ravi and Mukesh are sharing profits in the ratio of 7:3. They admit Ashok for 3/7th share in the firm which he takes 2/7th from Ravi and 1/7th from Mukesh. Calculate new profit-sharing ratio. A) 7:3:3. B) 29:11:30. C) 49:21:30. D) 14:6:15. Show Answer Correct Answer: B) 29:11:30. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 8Accountancy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books