Accounting MCQs
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Question 3178hard
On 31st March, 1995 the following balances of accounts appeared in the books of a firm Capital Account Rs. 2,00,000 General Reserve Rs. 50,000; Sundry Creditors Rs. 50,000 and Cash in hand Rs. 10,000. The firm is dissolved, and the assets realised Rs. 1,25,000. The loss on realisation is:
Question 3179hard
What items of inventories are outside the scope of AS-2?
1. Work-in-progress arising under construction contracts.
2. Raw materials including maintenance supplies.
3. Share, debentures held as stock-in-trade.
4. Machinery spares exclusively used with fixed assets.
Select the correct answer:
1. Work-in-progress arising under construction contracts.
2. Raw materials including maintenance supplies.
3. Share, debentures held as stock-in-trade.
4. Machinery spares exclusively used with fixed assets.
Select the correct answer:
Question 3180hard
What is the correct sequence of the following actions required for the preparation of final accounts?
1. Preparation of Trial Balance
2. Balance of accounts
3. Preparation of annual financial statements
4. Making adjustment entries
Select the correct answer
1. Preparation of Trial Balance
2. Balance of accounts
3. Preparation of annual financial statements
4. Making adjustment entries
Select the correct answer
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Question 3181hard
A company wishes to issue 1,000 7% debentures of Rs. 100 each repayable after 10 years for which the company will have to incur the following expenses:
Underwriting commission ⇔ 1.5%
Brokerage ⇔ 0.5%
Printing and Miscellaneous expenses ⇔ Rs. 1,000
The annual cost of capital would be:
Underwriting commission ⇔ 1.5%
Brokerage ⇔ 0.5%
Printing and Miscellaneous expenses ⇔ Rs. 1,000
The annual cost of capital would be:
Question 3182hard
In a business net assets on 1st January are Rs. 6,000 and on 31st January are Rs. 7,500. If the withdrawals by the owner during January are Rs. 1,000 the net income for January is:
Question 3183hard
Which group of the following items are application of funds:
1. Loss from operations
2. Loan from financial institutions
3. Redemption of debentures
4. Sale of fixed assents
5. Payment of dividends
1. Loss from operations
2. Loan from financial institutions
3. Redemption of debentures
4. Sale of fixed assents
5. Payment of dividends
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Question 3184hard
A company issued debentures of Rs. 60,000 at discount of Rs. 3,000 on 1st April 1996. they are repayable in 3 equal instalments each on 31st March, every year. The financial year of the company ends on 31st December every year. How much discount will be written off in the second year:
Question 3185hard
Match List-I with List-II and select the correct answer using the options given below the lists:
| List-I | List-II |
| a. Amortisation | 1. Diminition in the life of the assets due to excessive use |
| b. Depreciation | 2. Exhaustion of natural resource |
| c. Depletion | 3. Expiration of tangible assets |
| d. Obsolescence | 4. Expiration of intangible assets |
| 5. Economic deterioration due to improved inventions |
Question 3186hard
Match the following.
| List-I | List-II |
| a. The formula for calculating the profit on reissue is . . . . . . . . | 1. Article of Association |
| b. Right shares must be first offerred to existing . . . . . . . . | 2. Security premium |
| c. Premium received on issue of debenture is credited to . . . . . . . . account | 3. Amount forfeited less discount on reissue |
| d. Redeemable preference shares can be issued only when it is authorised by its . . . . . . . . | 4. Equity shareholders |