Accounting MCQs
Practice free Accounting multiple-choice questions with instant answer feedback and step-by-step solutions. Click an option to check yourself, reveal the full explanation, and work through all 3354 questions — no login required.
Question 3331easy
The installation expenses for a new machinery will be debited to
Question 3332hard
In what order, the following assets are shown in the balance sheet of a company?
i. Trade receivables
ii. Cash
iii. Furniture and fittings
iv. Investment in shares and debentures
i. Trade receivables
ii. Cash
iii. Furniture and fittings
iv. Investment in shares and debentures
Question 3333medium
Assertion (A) Accounting information refers to only events which are concerned with business firm.
Reason (R) Accounting information is presented in financial statements.
Reason (R) Accounting information is presented in financial statements.
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Question 3334hard
Which of the following are shown is profit and loss appropriation account?
1. Salary to staff
2. Salary to partners
3. Interest on capital
4. Fresh capital introduced
5. Share of profit
6. Amount of drawings
7. Interest on drawings
Select the correct answer:
1. Salary to staff
2. Salary to partners
3. Interest on capital
4. Fresh capital introduced
5. Share of profit
6. Amount of drawings
7. Interest on drawings
Select the correct answer:
Question 3335hard
The following information is provided by a cultural club:
Stock of sports goods : Rs. 20,000
Purchase of sports goods during the accounting period : Rs. 80,000
Sports goods sold as scrap : Rs. 500
Closing balance : Rs. 30,000
The amount to be charged to Income and Expenditure Accounts as sports goods consumed will be:
Stock of sports goods : Rs. 20,000
Purchase of sports goods during the accounting period : Rs. 80,000
Sports goods sold as scrap : Rs. 500
Closing balance : Rs. 30,000
The amount to be charged to Income and Expenditure Accounts as sports goods consumed will be:
Question 3336hard
Following information is available:
1. 2,000 10% preference shares of Rs. 100 each Rs. 2,00,000
2. 10,000 Equity shares of Rs. 100 each Rs. 60 per share paid up Rs. 6,00,000
3. Expected profit per year before tax Rs. 3,20,000
4. Rate of Tax 50%
5. Transfer to general reserve every year 20% of net profit
6. Normal rate of earnings 15%
The value of equity share as per yield value method would be:
1. 2,000 10% preference shares of Rs. 100 each Rs. 2,00,000
2. 10,000 Equity shares of Rs. 100 each Rs. 60 per share paid up Rs. 6,00,000
3. Expected profit per year before tax Rs. 3,20,000
4. Rate of Tax 50%
5. Transfer to general reserve every year 20% of net profit
6. Normal rate of earnings 15%
The value of equity share as per yield value method would be:
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Question 3337hard
Match the following:
| List-I | List-II |
| a. Interest on partner's capital is chargeable to the extent of available . . . . . . . . | 1. competing |
| b. The amount due to the retiring partner can be made by . . . . . . . . payment method. | 2. mutual |
| c. A partner must not carry on a . . . . . . . . business. | 3. profit |
| d. Partners are . . . . . . . . for each other. | 4. lumpsum |
Question 3338hard
With the help of following information calculate provisions for bad and doubtful debts
Debtors M: Rs. 3,200 Bad to be written off
Debtors N: Rs. 8,000 expeected to realise only 70%
Debtors O: Rs. 6,000 expected to realise only 60%
Debtors P: Rs. 4,000 financial condition very poor, no recovery is likely
Debtors M: Rs. 3,200 Bad to be written off
Debtors N: Rs. 8,000 expeected to realise only 70%
Debtors O: Rs. 6,000 expected to realise only 60%
Debtors P: Rs. 4,000 financial condition very poor, no recovery is likely
Question 3339hard
The following are the figures relating to a trader:
Opening stock - Rs. 10,000
Closing stock - Rs. 11,000
Purchase - Rs. 70,000
The goods are sold at a profit of 30% on cost. The amount of sales will be:
Opening stock - Rs. 10,000
Closing stock - Rs. 11,000
Purchase - Rs. 70,000
The goods are sold at a profit of 30% on cost. The amount of sales will be: