Accounting MCQs

The 'Debenture Redemption Fund' of a company stood at Rs. 16,000 represented by Rs. 20,000 (nominal) investment. The company in order to redeem debentures of Rs. 10,000 at 1% premium sold Rs. 12000 (nominal) investments of Rs. 100 each at Rs. 84 each for the purpose of redeeming Rs. 10,000 debentures at a premium of 1%. After the redemption of debentures, the balance in the Debenture Redemption Fund a/c will be:

Match List-I (financial statements and accounts) with List-II (special matters associated with statements and accounts) and select the correct answer using the options given below the lists:

List-I	List-II
a. Receipts and payments	1. Revenue account
b. Income and expenditure account	2. Cash
c. Dividend equalisation reserve	3. Liability
d. Club subscription received in advance account	4. Balance sheet
	5. General reserve

The directors of Murfi Ltd made a final call of Rs. 50 per share on 1^st August, indicating the last date of payment of call money to be 31^st August. Mr. Akshit holding 5,000 shares paid the call money on 15^th October, if the company adopts Table A, the amount of interest on calls-in-arrears to be paid

Match List-I with List-II and select the correct answer using the options given below the lists:

List-I	List-II
a. Receipts and payments account	1. Revenue
b. Income and expenditure account	2. Cash
c. Dividend equalization reserve	3. Liability
d. Subscription received in advance account	4. General reserve

A and B sharing profits in the ratio of 3 : 2 took out a joint-life policy of Rs. 20,000 on 1^st January 2000 for 20 years, paying annual premium of Rs. 1000. The surrender values of the policy were: 2000 - nil, 2001 - Rs. 550, 2002 - Rs. 970.
On 8^th march 2002 B was dead. What will be the amount to be paid to the policy holders-

To test the liquidity of a concern, which of the following ratios are useful?
I. Acid test ratio
II. Capital turnover ratio
III. Bad debts to sales ratio
IV. Inventory turnover ratio
Select the correct answer using the options given below:

Match the following:

List-I	List-II
a. New share (Admission)	1. Old share + Gaining share
b. Gaining ratio	2. Old ratio - New ratio
c. Sacrificing ratio	3. New ratio - Old ratio
d. New share (Retirement)	4. Old share - Sacrifice share

Match List-I with List-II and select your answer:

List-I	List-II
a. Surrender Value	1. Stock
b. Insanity of shareholder	2. Insurance policy
c. Share warrant	3. Transmission of shares
d. Fully paid-shares	4. Negotiable instrument

A machinery was purchased on 1^st January 1999 and was depreciated at the rate of 10% on diminishing balance method. It was sold on 31^st March 2001 when its value was Rs. 67,129 what was its value on 1^st January 1999?