Accounting MCQs

A, B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the partnership and to distribute the sale proceeds as and when realised. The partner's capitals were:
A - Rs. 10,000, B - Rs. 9,000 and C - Rs. 5,000, B's loan amounted to Rs. 3,000, and Sundry Creditors to Rs. 6,000.
Assets realisation and expenses were as under:

	Assets Realised	Expenses
July	Rs. 5,300	Rs. 500
August	Rs. 3,600	Rs. 200
September	Rs. 4,500	Rs. 300
October	Rs. 4,500	Rs. 200

In September B will receive:

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

List-I	List-II
a. Financial leverage	1. Efficiency
b. Quick ratio	2. Profitability
c. Stock turnover	3. Liquidity
d. Margin on sales	4. Risk

A firm stands dissolve in the following cases
1. the partners agree that the firm should be dissolved.
2. the business becomes legal.
3. in case of partnership at will, a partner gives notice of dissolution.
4. the court orders dissolution.
Select the correct answer:

Consider the following statements:
I. In case of the marine insurance, the insurable interest must exist at the time the loss occurs
II. In case of fire insurance, insurable interest must exist both at the time of the contract and at the time of loss
Which of the statements given above is/are correct?

Match the items of the following two lists and indicate the correct answer:

List-I	List-II
a. Earning ability of a firm	1. Basis of accounting
b. Conservatism	2. P/V ratio
c. Cash profit	3. Cash flow statement
d. Cash and accrual	4. Prudence

On 1^st January 2012 X drawn of Rs. 20,000 on Y for three months. X discounted the bill with bank for Rs. 19,900. On due date, the bill was dishonoured. For dishonour in the books of X. Bank account will be credited by

Arrange the steps of adjustment of partner's capital on the admission of a new partner in sequence.
1. Calculate the adjusted capital of old partners.
2. Calculate the proportionate capital of a new partner.
3. All adjustments should be made.
4. Calculate the total capital of new firm.
Select the correct answer:

X and Y are two equal partners in a firm. On 1^st January, 2004 they admitted Z on the condition that he will bring Rs. 10,000 as capital and Rs. 5000 as goodwill. In future they will share profits in the ratio of 2 : 1 : 2. The proportion of goodwill distribution between X and Y will be:

Match List I with List II and select your answer:

List-I	List-II
a. Cash	1. Equity Share Capital
b. Profit	2. Fixed Assets
c. Discount on issue of Shares	3. Fictitious Assets
d. Machinery & Plant	4. Current Assets