SUNIL PANDA COMMERCE CLASSES

(An ideal institute for Accounts, economics & business studies)

60 minutes

Q.1) Subscription received in advance by a club are shown on the ……………side of the balance sheet

Q.2) Receipts and payments account is a

a) real account b) Nominal account

c) Personal account d) none of these

Q.3) Only revenue item transactions are shown in income and expenditure account. (state True or False)

Q.4) Entrance fee received 30,000 of which 25% is to be capitalised. What Amount debited to income & exp. A/c

a) 7500 b) 22500

c) 30000 d) 15000

Q.5) Is interest on loan is charge or appropriation of profits?

Q.6) Partners are Mutual agents of each other so far as the business of the firm is concerned. (state true or false)

Q.7) In case of fixed capital A/c method Partner Capital A/c balance have ………………….. balance

Q.8) The Agreement among partners

a) should be written b) should be verbal

c) may be either written or oral d) none of these

Q.9) if a partner draw an equal amount in the beginning of each month till 6 months interest is charged for

a) 6.5 months b) 3.5 months

c) 7.5 months d) 2.5 months

Q.10) Goodwill is an …………..Assets, but not a…………….Asset (fill in the blanks)

Q.11) As per which accounting standards purchased goodwill is shown in the books?

Q.12) Nature of Revaluation Account is a …………………. Account

Q.13) If the existing profit-sharing ratio among A, B & C of 3:2:1 is changed to 1:2:3 then the partner(s) whose
share will be unaffected is/are

a) A b) B

c) C d) A & C

Q.14) AB & Co. has 50 partners. It wants to Admit a new partner. Can it do so?

Q.15) Goodwill of a firm of A and B is valued at 30,000. Goodwill is appearing in the books at 12,000. C admitted
for ¼ share, amount that he will bring for goodwill is

a) 3,000 b) 4,500

c) 7,500 d) 10,500

Q.16) Gain or loss on revaluation of assets at the time of retirement of a partner is a capital profits (True or False)
Q.17) A, B & C are the partners sharing profits in the ratio 4:5:3, C retires and remaining partners decide to share
profits in the ratio 7:8. What will be the gaining ratio?

a) 8:7 b) 4:5

c) 1:1 d) None of these

Q.18) The firm is an obligation to pay an agreed rate of interest for the unpaid balance to the retiring partner.
(True or False)

Q.19) On Dissolution, if a partner pays firms liability which of the following account is debited?

a) profit and loss account b) Realisation account

c) Partners Capital account d) Cash account

Q.20) In case of Dissolution, Assets are transferred to Realisation Account

a) At book Value b) At market Value

c) At Cost or Market Value, Whichever is Lower d) None of these

Q.21) The firm paid realisation expenses of 10,000 on behalf of Nikhil, a partner with whom it was agreed at
25,000. Realisation Account will be debited by

a) 10,000 b) 35,000

c) 25,000 d) 70,000

Q.22) A firm is dissolved, param, a partner is to carry out dissolution for which he will get 5,000, including
expenses. Realisation Expenses were 2,500. Realisation Account will be debited by

a) 5,000 b) 2,500

c) 7,500 d) None

Q.23) Preference shareholders have the preferential right to receive………………before it is paid on equity shares.

Q.24) When shares are forfeited , share Capital Account is debited with

a) Nominal value of shares b) Called up value of shares

c) Paid up value of shares d) market value of shares

Q.25) Mohar ltd. Forfeited 160 shares of 10 each on which the holder had paid only the application money of 2
per share. Out of these, 40 shares were reissued to Gaurav as fully paid for 9 per share. The gain on reissue is

a) 320 b) 160

c) 160 d) None of these

Q.26) Debentures are relatively riskier than shares. (state true or false)

Q.27) ……………….interest is not paid on debentures issued as collateral security.

Q.28) Discount on issue of debentures is restricted to

a) 10% b) 20%

c) 25% d) None of these.

Q.29) Discount or loss on issue of debentures is written off in the year when debentures are issued first
from…………………
Q.30) Apple computers ltd. Issued 10,000, 7% Debentures of 100 each at a discount of 6 on 1st October, 2018.
Interest for the year ended 31st march,2019 will be

a) 65,000 b) 32,000

c) 70,000 d) 35,000

Q.31) 25% of redeemable value of debentures should be set aside to debentures should be set aside to debenture
redemption reserve (state true or false)

Q.32) Debentures are redeemed without setting aside amount to Debenture Redemption Reserve (DRR). It is
redemption out of ………………………….

Q.33) Once the debenture are redeemed, Amount of DRR is transferred to …………………………

Q.34) explain “issue of debenture as a collateral security”

Q.35) G ltd. Has outstanding 10,000, 8% debentures of 100 each that are redeemable at premium of 10 each.
Out of these, 5000 debentures are to be redeemed on 31st December,2018. Debenture redemption investment
should

a) 75,000 b) 82,500

c) 1,50,000 d) 1,65,000

Q.36) Minimum Subscription Prescribed is ……………….

Q.37) Prepaid insurance is shown as ………………………..in the balance sheet.

Q.38) Securities Premium reserve is Shown in the liabilities side in the balance sheet under………………………………

Q.39) Patents and trademarks are examples of

a) Intangible fixed assets b) Tangible fixed assets

c) Intangible asset under development d) capital work in progress

Q.40) Reserve capital is part of share capital that a company resolves not to call at any time it desires. (true or
false)

Q.41) why management is interested in analysis of financial statements?

Q.42) Out of the following items, identify the item that is not shown in the notes to Accounts on Employees
Benefit Expenses.

a) Wages b) Business promotion

c) Bonus d) Gratuity paid

Q.43) Which analysis is considered as dynamic?

a) Horizontal Analysis b) Vertical Analysis

c) Internal Analysis d) External Analysis

Q.45) The formula for Working Capital Turnover Ratio is………………………….

Q.46) Liquidity Ratio measure……………………….solvency of the enterprise

Q.47) ……………………………and Operating profit ratio are complementary to each other.

Q.48) Current Ratio is 2:1. On the sale of fixed asset (Book value 20,000) for 18,000, state whether the current
ratio will

a) Improve b) Decline

c) Will not change d) Can’t say

Q.49) Purchase and sale of securities by a financing company is ……………………………………

Q.50) Buy back of own shares is shown as outflow in financing activity as………………………………………..

Q.51) state one transaction which decrease debts and increase shareholders fund.

Q.52) payment of tax on gain on sale of fixed asset is considered which type of activity

Q.53) what is the treatment of proposed dividend as per new provision of AS-4?

Q.54) X ltd. Forfeit 2 per shares of face value 10 each, 8 called up. What is the maximum amount of discount
can be allowed at the time of reissue of shares.

Q.55) Extra ordinary activities are only considered in Operating Activity. (True or False)

Q.56) if partnership deed is silent interest is allowed on partners loan @………………

Q.57) A manager gets 5% Commission on net profit after charging such commission, gross profit 5,80,000 and
expenses of indirect nature other than manager’s commission are : 1,60,000. Commission amount will be

a) 29,000 b) 20,000

c) 15,000 d) 22,000

Q.58) In case of fluctuating capitals, interest on capital

a) is credited to partners capital A/c b) Is credited to partners current a/c

c) May be Credited to partners current A/c d) None

Q.59) Partners are ………….agents of each other so far as the business of the firm is concerned

Q.60) Nature of income and expenditure A/c is……………………………….

All the best

(SUNIL PANDA SIR)