Select the most appropriate alternatives (Weightage 5 Marks)

1. Partnership Final Account

1) When there is no partnership agreement between partners, the division of Profits takes place in ________ ratio.
a) Equal       
Capital ratio       
Initial contribution     
Experience and tenure of partner
Ans: a) Equal

 2) To find out Net Profit or Net Loss of the business __________ account is prepared.     
d)Profit & Loss

Ans: d) Profit & Loss

 3) A ____________ is an Intangible Asset.

a) Goodwill     
Ans: a) Goodwill

 4) In the absence of an agreement, interest on loan advanced by the partner to the firm is allowed at the rate of _____________.
a) 5%     
Ans : b) 6%

 5) Liability of partners in a partnership business is ________.
a) Limited       
Limited and Unlimited     
None of the above
Ans: b) Unlimited

6) The Indian Partnership Act is in force since _______.

a) 1932     
Ans: a) 1932

7) Maximum number of Partners in a firm are ____ according to Companies Act 2013

a) 10     
Ans: d) 50


2. Not for Profit’ Concern

1) Not for Profit Concern renders __________ services to public at large.
a) Commercial
b) Social
c) Individual
d) Group
Ans: b) Social

2) DONATION for SCHOLARSHIP Fund is ………….
a) Capital Receipt    
b) Revenue Receipt
c) Capital Expenditure
d) Revenue Expenditure
Ans: a) Capital Receipt 

3) Income and Expenditure Account is a ________ Account
a) Capital 
b) Real
c) Personal
d) Nominal
Ans: d) Nominal

4) Outstanding subscription at the end of the Accounting Year represents _______ .
a) Liabilit
b)an expenditure 
c)an asset
d)capital fund
Ans: c) an asset 

5) Subscription received in advance during the accounting year is_______ .
a) An Income
b) An Expense
c) An Asset
d) A Liability
Ans :d) A Liability

6) Excess of Income over Expenditure is termed as ___________ Deficit
a) Profit
b) Surplus
c) Loss
Ans :b) Surplus

7) Not for Profit Concerns prepares _________ account instead of Profit and Loss account to know the result.
a) Trading
b) Income and Expenditure
c) Cash
d) Receipt and Payments
Ans: b) Income and Expenditure

8) The closing balance of Receipts and Payments account usually represent _______ .
a) Closing Stock
b) Cash and Bank Balance
c) Surplus
d) Deficit
Ans:b) Cash and Bank Balance

9) Not for Profit Organization is also called __________ organization.
a) Service
b) Trading
c) Profit Making
d) Commercial
Ans:a) Service

10) Expenditure on Purchase of Building is a ________ Expenditure.
a) Capital
b) Revenue
c) General
d) Recurring
Ans: a) Capital


3. Admission of Partner

1) Anuj and Eeshan are two partners sharing profits and losses in the ratio of 3:2. They decided to admit Aaroh for 1/5th share, the new profit sharing ratio will be ________
a) 12 : 8 : 5
b) 4 : 3 : 1
c) 12 : 8 : 1
d) 12 : 3 : 1
Ans:a)  12 : 8 : 5

2) Excess of proportionate capital over actual capital represents _________
a) Equal capital
b) Surplus Capital
c) Deficit Capital
d) Gain
Ans:c) Deficit Capital

3) __________ is credited when an unrecorded asset is brought into the business.
a) Revaluation Account
b) Balance Sheet
c) Trading Account
d) Partners capital Account
Ans:a) Revaluation Account

4) When goodwill is withdrawn by the partner ________ account is credited.
a) Revaluation
b) Cash/Bank
c) Current
d) Profit and Loss Adjustment
Ans :b) Cash/Bank

5) If the asset is taken over by the partner_________ account is debited.
a) Revaluation
b) Capital
c) Asset
d) Balance Sheet
Ans:b) Capital


4.Retirement of Partner

1) The Profit or Loss from revaluation on the retirement of a partner is shared by ______.
a) The remaining partners
b) All the partners
c) Only retiring partner
d) Bank
 Ans:-b) All the partners

2) Decrease in the value of assets should be __________to profit and Loss Adjustment Account.
a) Debited
b) Credited
c) Added
d) Equal
 Ans:-a) Debited

3) The balance of the capital account of retired partner is transferred to his _________ account if it is not paid.
 a) Loan
b) Personal
c) Current
d) Son’s
 Ans:-a) Loan

4) Gain Ratio = _____ Ratio less Old Ratio.
a) New
b) Equal
c) Capital
d) Sacrifice

5) New Ratio = Old Ratio + _____ Ratio
a)  Gain
b) Capital
c) Sacrifice
d) Current
 Ans:-a) gain

6) Apte, Bhate and Chitale are sharing 1/2, 3/10, and 1/5 if Apte retire their new ratio will be ______ .
a)  5: 2
b) 3: 2
c) 5: 3
d) 2: 5
Ans:-b) 3:2

5. Death of Partner

1) Benefit Ratio is the Ratio in which _______________
a) The old partner gain on the admission of a new partner
b) The Goodwill of a new partner on admission is credited to old partners
c)The continuing partner’s benefits on retirement or death of a partner
d)All partners are benefited
  Ans:-continuing partner’s benefits on retirement or death of a partner

2) The ratio by which existing partners are benefited __________ 
a) Gain Ratio
b) Sacrifice Ratio
c) Profit Ratio
d) Capital Ratio
  Ans:-Gain Ratio

3) Profit and Loss Suspense Account is shown in the new Balance Sheet on _______________ side.
 a) Debit
 b) Credit
 c) Asset
 d) Liabilities
 Ans:-c) Asset

4) Death is a compulsory_____________
 a) Dissolution
c) Retirement
d) Winding-up
 Ans:-c) Retirement

5) The balance on the capital account of partners, on his death, is transferred to____________ account.
a)  Relatives
b) Legal Heir’s loan/executors
c) Partner’s capital
d) Partners Loan
Ans:-b) Legal Heir’s loan/executors loan

6. Dissolution of Partnership Firm

1) In case of dissolution, assets and liabilities are transferred to ___________ Account.
a) Bank Account
b) Partner’s Capital Account
c) Realisation Account
d) Partner’s Current Account
Ans:-c) Realisation

2) Dissolution expenses are credited to___________ Account.
a) Realisation Account
b) Cash / Bank Account
c) Partner’s Capital Account
d) Partner’s Loan Account
Ans:-b) Cash/Bank Account

3) Deficiency of insolvent partner will be suffered by solvent partners in their_____________ ratio.
a)  Capital ratio
b) Profit-sharing ratio
c) Sale ratio
d)Liquidity ratio
Ans:-b) Profit-sharing ratio

4) If an asset is taken over by partner from firm his capital account will be ___________
a) Credited
b) Debited
c) Added
d) Divided
Ans:-b) Debited

5) If any unrecorded liability is paid on the dissolution of the firm _______ account is debited.
a)  Cash / Bank Account
b) Realisation Account
c) Partners’ capital Account
d) Loan Account
An:-b)Realisation Account

6) Partnership is completely dissolved when the partners of the firm become _________
a) Solvent
b) Insolvent
c) Creditor
d) Debtors
Ans:-b)  Insolvent

7) Assets and liabilities are transferred to Realisation account at their ____________ values.
a) Market
b) Purchases
c) Sale
d) Book

8) If the number of partners in a firm falls below two, the firm stands____________
a) Dissolved
b) Established
c) Realisation
d) Restructured

9) Realisation account is _____________ on realisation of assets.
a) Debited
b) Credited
c) Deducted
d) Closed

10) All activities of partnership firm cease on _________ of firm.
a) Dissolution
b) Admission
c) Retirement
d) Death

7. Bills of Exchange

1) The person on whom a bill is drawn is called a________________.
a) Drawee
b) Payee
c) Drawer
d) Acceptor
Ans:-a) Drawee

2) Before acceptance the bill is called a________________.
a) Order
b) Request
c) Draft
d) Instrument
Ans:-c) Draft

3) When the due date of bill drawn falls due on a public holiday, the payment must be made on the_____________ day.
a) Same
b) Preceding
c) Next
d) Any
Ans:-b) Preceding

4) The due date of the bill drawn for 2 months on 23rd Nov. 2019 will be______________.
a) 23rd Jan. 2020
b) 25th Jan. 2019
c) 26th Jan. 2019
d) 25th Jan. 2020
Ans:-d) 25th jan.2020

5) Nothing charges are borne by__________________.
a) Notary public
b) Drawee
c) Drawer
d) Endorsee
Ans:-b) Drawee

6) There are _______________ parties to bill of exchange.
a) Five
b) Four
c) Three
d) Two
Ans:- c) Three

7) When a bill is drawn for 2 months after date on 3rd Jan. 2020, its due date will be__________________.
a) 3rd Jan. 2020
b) 3rd Mar. 2020
c) 5th Jan. 2020
d) 6th Mar. 2020.
Ans:-d) 6th mar.2020.

8) Notary Public is_________________.
a) Govt. officer
b) Drawer
c) Payee
d) Endorsee
Ans:- Govt. officer

9) When Acceptor or Drawee does not pay the amount of bill to the holder on the due date it is known as_____________ the bill.
a) Returning
b) Discounting
c) Honoring
Ans:- d) Dishonoring

10) The person who accepts the bill treats the bill as___________.
a) Bills payable
b) Promissory note
c) Draft
d) Bills receivabl
Ans:-a) Bills payable

8. Company Accounts – Issue of Shares

1) The balance of Share Forfeiture A/c is transferred to ______________ account after re-issue of these shares.
a) Reserve Capital
b) Capital Reserve
c) Profit & Loss
d) Share capital
Ans:-b)Capital Reserves

 2) Premium received on issue of shares is shown to______________ 
a) Liability side of Balance Sheet
b) Asset side of Balance Sheet
c) Profit & Loss Account debit side
d) Profit & Loss A/c credit side
Ans:-a)Liability side of Balance Sheet

3) Shareholders get_______________ on shares.
a) Interest
b) Commission
c) Rent
d) Dividends
Ans:-d) Dividends

4) The document inviting to subscribe to the shares of a company is______________
a) Prospectus
b) Memorandum of Association
c) Articles of Association
d) Share certificate
Ans:-a) Prospectus

5) As per SEBI guidelines minimum amount payable on share application should be_______________ of Nominal Value of shares.
a) 10%
b) 15%
c) 2%
d) 5%
Ans:-d) 5%

6)  When shares are forfeited the Share Capital Account is …………………. .
a) Credited
b) Debited
c) Neither debited nor credited 
d) None of the above
Ans:-b) Debited

7) The liability of shareholder in Joint Stock Company is___________
a) Joint and Sever
b) Limited
c) Unlimited
d) huge
Ans:-b) Limited

8) The Share Capital which a company is authorised to issue by its Memorandum of Association is__________.
a) Nominal capital/Authorised capital
b) Issued capital
c) Paid-up capital
d) Reserve capital
Ans:-a) Nominal capital/Authorised capital

9) The unpaid amount on allotment and calls may be transferred to_____________account.
a) calls in advance
b) calls
c) calls in arrears
d) allotment
Ans:-c) Calls in arrears

10) There must be provision in _____________ for forfeiture of shares.
a) Article of Association
b) Memorandum of Association
c) Prospectus
d) Balance Sheet
Ans:-a) Article of Association

9. Analysis of Financial Statements

1) Gross Profit Ratio indicates the relationship of gross profit to the___________.
a) Net-Cash
b) Net-Sales
c) Net Purchases
d) Gross Sales
Ans:-b) Net-Sales

2) Current Ratio = (……………………………….)/(Current Liabilities)
a) Current Liabilities
b) Quick Assets
c) Quick Liabilities
d) Current Assets
e) None of these
Ans:-d) Current Assets

3) Liquid Assets =____________
a) Current Assets + Stock
b) Current Assets – Stock
c) Current Assets – stock +       prepaid Expenses
d) None of these
Ans:- b) Current Assets-Stock

4) Cost of goods sold___________
a) Sales – Gross profit
b) Sales – Net Profit
c) Sales Proceeds
d) None of these
Ans:-a) Sales-Gross profit

5) Net-Profit Ratio is equal to______________
a) Operating ratio
b) Operating net-profit ratio
c) Gross Profit Ratio
d) Current Ratio
Ans:-a) Operating ratio

6) The Common Size Statement requires______________
a) Common base
b) Journal Entries
c) Cash Flow
d) Current Ratio
Ans:- a) Common base

7) Bill Payable is_________________
a) Long term loan
b) Current Liabilities
c) Liquid Assets
d) Net Loss
Ans:-b) Current Liabilities

8) Generally Current Ratio should be___________
a) 2:1
b) 1:1
c) 1:2
d) 3:1
Ans:-a) 2:1

9) From financial statement analysis the creditors are specially interested to know_________________
a) Liquidity
b) Profits
c) Sale
d) Share Capital
Ans:-a) Liquidity

10. Computer In Accounting

1) The primary document for recording all financial transactions in Tally is the_______________
a) Journal
b) Trial sheet
c) Voucher
d) File
ans:-c) Voucher

 2) This displays the balance day-wise for a selected voucher type
a) Record Book
b) Ledger book
c) Journal book
d) Daybook
Ans:- d) Daybook

 3) Fixed Deposit A/c comes under____________ group.
a) Investments
b) Current Liabilityc
c) Bank A/c
d) Current Asset
Ans:-a) Investments