Objective Questions Sybcom SEM III

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Objective Questions 1

I. MULTIPLE CHOICE QUESTIONS

CHAPTER – 1 : Partnership Final Accounts

Q. No. 1 to 5

Trial Balance

Dr. Cr.

Debtors 1,15,000

Provision for Doubtful Debts 5,000

Bills Receivable 10,000

Closing Stock 45,000

1. 20,000 goods sold on Sales or Approval basis. Goods are sold at a profit of 331

3 % on cost half

the goods are approved. About other half no intimation is received.

2. 5,000 Bills Receivable dishonoured.

3. Of the Debtors 20,000 outstanding for more than six months and 50% of which is bad which is to

be written off.

4. Create R.D.D. @ 5% on Debtors.

1. Amount of New Bad debts

(a) 10,000 (b) 20,000 (c) 5,000

2. How much amount of Sale on Approval to be deducted from debtors?

(a) 20,000 (b) 10,000 (c) 5,000

3. What is the amount of New RDD?

(a) 10,000 (b) 7,500 (c) 5,000

4. What is the amount of Closing Stock

(a) 55,000 (b) 52,500 (c) 57,500

5. How much is the amount Debited to Profit & Loss Account for Bad Debts.

(a) 10,000 (b) 15,000 (c) 5,000

Balance Sheet

Assets

Debtors 1,15,000

Add : B/R Dishonoured 5,000

1,20,000

Less : Sale on Approval 10,000

1,10,000

Profit & Loss Account (Dr. Side) Less : New Bad Debts 10,000

Old Bad Debts Net Debtors 1,00,000

New Bad Debts 10,000 Less : New RDD 5,000

Add : New RDD 5,000 95,000

15,000

Less : Old RDD 5,000 Closing Stock 45,000

10,000 Add Stock with Customers 7,50052,500

Q. No. 6 to 7

Trial Balance

Dr. Cr.

Purchases 2,10,000

Carriage Outward 5,000

Return Outward 2,000

Creditors 80,000

Return Inward 6,000



2 Accountancy and Financial Management (S.Y.B.Com. Sem. – III)

Adjustments :

1. Goods worth 12,000 received during the year included in the Closing Stock but not recorded in

the Books of Accounts.

2. Goods worth 5,000 distributed as free samples. No entry for the same is passed.

3. Goods worth 4,500 used for the purpose of Extension to Building.

6. What is the amount of Purchases(a) 2,05,500 (b) 2,06,500 (c) 2,10,500

7. What is the amount of Creditors?

(a) 92,000 (b) 1,02,000 (c) 68,000

Q. No. 8 to 10

Trial Balance

as on 31st December, 2007

Plant & Machinery 1,00,000

Furniture 50,000

Vehicles 40,000

Adjustments :

1. 30,000 plant purchased on 1st July, 2007.2. Half of the furniture and

1

4 of the vehicle used for personal purpose.

3. Depreciate plant @ 10% p.a. furniture @ 5% vehicle @ 7.5%

8. What is the amount of depreciation on Plant and Machinery?

(a) 10,000 (b) 8,500 (c) 9,250

9. Amount of depreciation on furniture debited to Profit & Loss Account

(a) 2,500 (b) 1,250 (c) 1,875

10. Amount of depreciation on vehicle debited to Profit & Loss Account

(a) 3,000 (b) 2,500 (c) 2,250

Q. No. 11 to 16

Trial Balance

Dr. Cr.

Plant & Machinery at cost 1,00,000

Furniture at cost 50,000

Vehicle at cost 40,000

Depreciation Provision for plant 30,000

Depreciation Provision for furniture 10,000

Depreciation Provision for vehicle 12,000

Adjustments :

1. Depreciate plant @ 10% on W.D.V.

2. Depreciate furniture @ 10% on straight line basis.

3. Depreciate vehicle @ 10% on Book value.

11. What is the amount of depreciation on Plant and Machinery?(a) 10,000 (b) 7,000 (c) 9,000

12. What is the Net Balance of Plant and Machinery?

(a) 70,000 (b) 63,000 (c) 90,000

13. What is the depreciation on furniture?

(a) 5,000 (b) 2,000 (c) 4,000

14. What is the Net value of furniture at the end of the year?

(a) 50,000 (b) 18,000 (c) 15,000

15. What is the amount of depreciation on vehicle?

(a) 2,800 (b) 4,000 (c) 1,200

16. What is Net value of vehicle at the end of the year?

(a) 24,000 (b) 15,000 (c) 25,200




Q. No. 17 to 21

Trial Balance


Dr. Cr.

1. Leasehold Premises purchased on 1st July, 2007 50,000

(life 5 years)2. Investment in Debentures 33,000

Face value 100

(Purchased at 110% of face value)

3. Loan from Rajan 60,000

(at 8% p.a. 1-10-07)

4. Loan given to Rahul) 80,000

(1-7-07 Rate 10% p.a.)

17. Leasehold premises written off during the year.

(a) 5,000 (b) 2,500 (c) 3,750

18. Leasehold premises value in Balance Sheet

(a) 45,000 (b) 47,500 (c) 46,250

19. Amount of Interest receivable on Investment in Debentures

(a) 2,700 (b) 2,970 (c) 2,870

20. Amount of Interest Payable to Rajan

(a) 4,800 (b) 2,400 (c) 1,200

21. Amount of Interest Receivable from Rahul.

(a) 8,000 (b) 6,000 (c) 4,000

22. Calculate closing stock

Closing stock as on 31st December, 2007 :

Cost 60,000, Market value 58,000 Above stock includes 5,000 goods received on consignment,

9,000 goods sent on consignment and 8,000 goods lying with the Branch not included :

(a) 70,000 (b) 72,000 (c) 75,000

Q. No. 23 to 25

Trial Balance as on 31st December, 2007

Dr. Cr.

Rent (

2,000 P.M.) 20,000

Insurance 4,000

Adjustment :

Insurance Includes 2,000 paid for the year ended 31st March, 2008.

23. Amount of rent debited to Profit & Loss Account

(a) 20,000 (b) 24,000 (c) 22,000

24. Amount of Insurance debited to Profit & Loss Account

(a) 4,000 (b) 3,500 (c) 3,000

25. Amount of prepaid insurance shown in the Balance Sheet(a) 1,000 (b) 500 (c) 2,000

Q.No. 26 to 28

10,000 worth of goods lost by fire. Under following situations how much amount should be debited to

Profit & Loss Account.

26. Goods are not insured

(a) Nil (b) 10,000 (c) None

27. Insurance company accepted the claim of 75% of the value.

(a) 7,500 (b) 10,000 (c) 2,500

28. Insurance company accepted the full claim

(a) Nil (b) 10,000 (c) None

29. Goods lying in stock 10,000 insured for 8,000; 5,000 goods lost by fire Insurance Co. accepted

the claim

(a) 4,000 (b) 5,000 (c) 8,000




30.

Trial Balance


Dr. Cr.

Wages paid 60,000

Outstanding Wages 2006 4,000Adjustment :

Wages paid includes 3,000 paid for instalation of Plant and Current Year Outstanding wages is

3,000. Calculate the amount of wages.

(a) 60,000 (b) 63,000 (c) 56,000

31. What is the amount of wages outstanding for the year?

(a) 7,000 (b) 4,000 (c) 3,000

32.

Trial Balance

Dr. Cr.

Sales 3,10,000

(Includes in the above 5,000 sale of vehicle)

Adjustment :

Goods despatched during the year amounted to 15,000 but invoice was not entered. During the year

amount of sales will be :

(a) 3,25,000 (b) 3,20,000 (c) 3,05,000

33.

Trial Balance


Dr. Cr.

Return Outward 5,000

Purchases 5,60,000

Return Inward 10,000Purchases includes 10,000 purchase of furniture. Calculate purchases.

(a) 5,40,000 (b) 5,50,000 (c) 5,45,000

34. If sales are 5,00,000 and cost of goods sold is 3,50,000 and operating expenses are 50,000, the Gross

Profit will be :

(a) 1,50,000 (b) 1,00,000 (c) 4,50,000 (d) 3,00,000

Q.No. 34

35. If sales are 4,000 and the rate of G.P. on cost of goods sold is 25%. Then the cost of goods sold will

be :

(a) 3,200 (b) 30,000 (c) 2,000 (d) None

Q.No. 35

36. Operating stock is 90,000, Closing stock is 45,000. The company purchases 1,65,000 on credit.During the year the company paid 1,75,000 to the suppliers. The goods are sold at 25% above cost.

The sales for the year will be :

(a) 3,62,000 (b) 2,62,500 (c) 3,40,000 (d) None

37.

Trial Balance


Dr. Cr.

Investment in 6% Debentures 30,000

(Interest is payable on 31st March & 30th September)

Interest on Investments 9,000

Amount of accrued interest on 31st Dec., will be :

(a) 2,000 (b) 450 (c) 1,800 (d) 900




Q.No. 38 to 42

Calculate Interest on drawing of Vipul @ 12% p.a. for the year ended 31-12-07 in each of the following

alternatives

38. If drawing during the year were 36,000

(a) 1,980 (b) 2,160 (c) 2,340

39. If he withdrew 3,000 p.m. in the beginning of every month.(a) 1,980 (b) 2,160 (c) 2,340

40. If he withdrew 3,000 p.m. at the end of every month.

(a) 1,980 (b) 2,160 (c) 2,340

41. If he withdrew 2,500 p.m.

(a) 1,950 (b) 1,800 (c) 1,650

42. If he withdrew the following amount as follows :

Jan. 31st 10,000, 1st April 6,000, 1st Aug. 4,000

1st Oct. 5,000, 1st Nov. 7,000

(a) 1,990 (b) 2,000 (c) 2,190

Q.No. 43 to 48

Saurabh and Rishab started business with capital of 3,50,000 and 2,50,000. Calculate Interest on

drawing of Saurbh @ 10% p.a. for the year ended 31st December, 2007 in each of the following

alternatives

43. If his drawing during the period were 12,000

(a) 450 (b) 600 (c) 550

44. If he withdrew 1,500 p.m. in the beginning of every month

(a) 900 (b) 975 (c) 825

45. If he withdrew 1,500 at the end of every month.

(a) 900 (b) 975 (c) 825

46. If he withdrew 9,000 in the beginning of every quarter

(a) 2,250 (b) 2,500 (c) 2,000

47. If he withdrew 9,000 at the end of every quarter

(a) 1,500 (b) 1,350 (c) 1,200

48. Calculate the Interest on drawing of Piran @ 10% p.a. for the year ended 31st December, 2007 if he

withdrew 6,000 during the middle of each quarter

(a) 1,100 (b) 1,200 (c) 1,300

49. Raveena & Kareena started business on 1st January, 2006 with capital of 4,00,000 and 3,00,000

respectively. There is no withdrawal or addition of capital during the year. Calculate Interest on capital

@ 10% p.a. Accounts are closed on 31st December.

Raveena Kareena Raveena Kareena

(a) 40,000 30,000 (b) 1,800 40,000

Raveena Kareena

(c) 35,000 35,000

50. Raveena & Kareena started business on 1st July, 2006; with capital 4,00,000 and 3,00,000respectively. There is no withdrawal or addition of capital during the year. Calculate Interest on Capital

@ 9% p.a. If books of accounts are closed on 31st March every year.

Raveena Kareena Raveena Kareena

(a) 27,000 20,250 (b) 36,000 27,000

Raveena Kareena

(c) 30,000 24,000

51. A and B started business on 1st January, 2006 with capital 6,00,000 and 4,00,000 respectively. On

1st April, A introduced in addition capital 1,50,000 and B withdraw 1,00,000 from his capital.

On 1st July, A withdraw 2,00,000 from his capital B introduced 1,50,000 on his capital Interest on

capital @ 12% p.a. Calculate Interest on Capital for the year ended 31st December.

A B A B

(a) 74,500 50,000 (b) 73,500 48,000

A B




(c) 71,500 46,000

6,00,000 ! 12

100 !

3

12 4,00,000 !

12

100 !

3

12

18,000 12,000

7,50,000 ! 12

100 !

3

12 3,00,000 !

12

100 !

3

12

22,500 9,000

5,50,000 ! 12

100 !

6

12 3,00,000 !

12

100 !

6

12

33,000 27,000

52. Ritu & Nitu started business on 1st April, 2006 with capital of 3,00,000 and 2,00,000 respectively.

On 1st Oct. they decided that their capital should be 2,50,000 each. The necessary adjustments in the

capital were made by Introducing or withdrawing cash. Interest on capital is allowed at 9% p.a.

Calculate Interest on capital as on 31st March, 2007.

3,00,000 ! 9

100 !

6

12 2,00,000 !

9

100 !

6

12

13,500 9,000

2,50,000 ! 9

100

! 6

12

11,250

13,500 + 11,250 9,000 + 11,250

24,750 20,250

Ritu Nitu

(a) 24,750 20,250

Ritu Nitu

(b) 24,000 20,000

Ritu Nitu

(c) 22,000 18,000

53. X and Y are parnters in a firm. X is to get a commission of 10% of Net Profit before charging any

commission. Y is to get commission of 10% on Net Profit after charging all commission. Net Profit before charging any commission was 1,21,000. Find out the commission of A and B.

A B

(a) 12,100 9,900

A B

(b) 12,100 10,890

A B

(c) 12,100 1,10,000

Q.No. 53 to 54

Amar and Bimal are partners. They do not have any partnership agreement (partnership deed) what

should be done in the following cases :

54. Amar spends twice time that Bimal devotes to business. Amar claims that he should get 3,000 permonth for his extra time spent.

a) Amar is entitled to salary of 3,000 p.m.

b) Amar is entitled to half of salary of clerk.

c) Amar is not entitled to any salary

55. Bimal has provided capital of 1,00,000 whereas Amar has provided 50,000 only as capital. Amar

however, has provided 10,000 as loan to the firm. What Interest (if any) will be given to Amar and

Bimal.

a) Amar is entitled to claim Interest on his loan at 10,000 @ 6% p.a. and Bimal Nil.

b) Bimal 6,000 Amar 3,600

c) Amar Nil Bimal Nil

56. In absence of any agreement partners are entitled to receive interest on their loans.

(a) 15% (b) 10.5% (c) 6% (d) 8.5%




57. A partner acts as an

a) Agent c) Third party

b) Employee d) None of the above

58. Relationship between the persons who have agreed to share profits of business is known as

a) Partnership c) AOP

b) J.V d) Body of Individuals59. In the absence of an agreement partners are entitled to

a) Commission c) Interest on Loans

b) Salary d) Share of profit in Capital ratio

60. If provided in the agreement interest on capital will be paid to partners out of

a) Future profits c) Accumulated profit

b) Current profits d) Goodwill

61. In case a partner is given guarantee loss in such guarantee is borne by those

a) who guaranteed c) All other partners

b) partnership d) partners with highest profit sharing ratio

62. Interest on Drawings is recorded in

a) Credit side of Profit and Loss appropriation A/c b) Debit side of Profit and Loss appropriation A/c

c) Debit side of Profit and Loss A/c

d) None of the above

63. Partners current A/c may have

a) Debit balance c) a or b

b) Credit balance d) None of the above

64. In absence of any agreement profits and losses are shared in

a) Equal ratio b) Capital ratio

c) Loan ratio d) None of the above

65. Interest on capital is

a) an appropriation b) an expenditurec) a gain d) None of the above

66. Fixed capital A/c is credited by

a) Salary of the partners

b) Interest on capital

c) Share of profit of the year


67. Fluctuating Capital A/c is credited by

a) Salary of the partners

b) Interest on capital

c) Share of profit for the year

d) All of the above68. Partners Drawing A/c is closed by transfer to

a) Partner's capital A/c

b) partner's current A/c

c) Either a or b


69. In absence of agreement partners are entitled to

a) Interest on loan

b) Salary

c) Interest on capital

d) Share of profit in capital ratio

70. Partners capital A/c generally showsa) Debit balance b) Credit balance

c) Either of a or b d) None of the above




CHAPTER – 2 : Piecemeal Distribution of Cash

1. If there are four liabilities e.g. creditors 10,000 Bills Payable 5,000, outstanding expenses 10,000,

other loan 5,000 and cash available is 15,000.

a) First pay 10,000 to creditors and Rs. 5,000 to Bills Payable.

b) First pay 10,000 to outstanding expenses and 5,000 to other loan.

c) Pay 5,000, 2,500, 5,000, 2,500 in Due Ratio 2 : 1 : 2 : 1.

2. For finding unit value capital is divided by

a) Profit Sharing Ratio.

b) Capital Ratio.

c) None of above.

3. After finding the unit value of three partners A, B and C we select the unit value

a) Which is lowest.

b) Which is highest.

c) Average.

4. Unit value we multiply with each one's

a) Profit Sharing Ratio.

b) Capital Ratio.

c) Average.

5. Bank Overdraft Partners’ Loan

10,000 X Loan 10,000 Y Loan 10,000

Cash available is 15,000. How would you distribute?

a) Pay Bank overdraft 10,000, Balance 2,500 each to X loan and Y loan.

b) Pay all three 5,000 each.

c) Pay 10,000 Bank overdraft and Rs. 5,000 to X loan.

6. Bank loan is 30,000 secured against stock and stock sold for 25,000, Balance 5,000 is

a) Secured.

b) Unsecured.

c) None of above.

7. If Bank loan 50,000; Bank overdraft is 25,000, Bills Payable 15,000; creditors 10,000; Bank

loan is secured against Land & Building. Bank overdraft is against stock.

Assets Realised " Bills Receivable 50,000.

a) Pay Bank loan 50,000.

b) Pay Bank overdraft 25,000; Bills Payable 15,000; 10,000 to creditors.

c) Pay in due ratio 10 : 5 : 3 : 2.

8. If X loan 12,000 and Y loan is 8,000. Both are partners. Profit Sharing Ratio is 5 : 4. Cash available

9,000. How would you pay?

a) 5,400 to X loan, 3,600 to Y loan.

b) 5,000 to X loan, 4,000 to Y loan.

c) 9,000 to X loan.9. Balance Sheet

Liabilities Assets

Capitals : Fixed Assets 1,60,000

Patel 30,000 Cash Balance 20,000

Shah 40,000 Deferred Advertisement

Desai 50,000 1,20,000 Expenditure 20,000

General Reserve 20,000 Profit & Loss 10,000

Capital Reserve 10,000

Creditors 60,000 -

2,10,000 2,10,000

a) Which partner is having ultimate excess

(i) Patel (ii) Shah (iii) Desai b) Which two partners get second preference

(i) Patel, Shah (ii) Patel, Desai (iii) Shah, Desai




10. Balance Sheet

Liabilities Assets

Creditors 10,000 Cash 5,000

Capitals : Other Assets 77,000

X 30,000 Current A/c

Y 25,000 X 2,000

Z 20,000 Y 1,000 3,00085,000 85,000

a) Which partner is having ultimate excess

(i) X (ii) Y (iii) Z

b) Which two partners get second preference

(i) Y, Z (ii) X, Y (iii) X & Z

11. Balance Sheet

Liabilities Assets

Capitals : Fixed Asset 11,00,000

Reema 6,00,000 Cash 1,00,000

Reena 4,00,000

Ritu (minor) 2,00,000 -

12,00,000 12,00,000

Profit sharing ratio is 2 : 2 : 1

a) Which partner should be paid first

(i) Reema (ii) Reena (iii) Ritu

b) Which partner is having ultimate excess

(i) Reema (ii) Reena (iii) None

c) While calculating excess capital you have to consider

i) All the three partners

ii) Reema, Reena only

iii) Reema and Ritu only

12. East, West and South are partners sharing in the ratio of 3 : 3 : 2. Their capitals are 24,000, 15,000

& 9,000 respectively. Which partner has ultimate surplus.

(i) East (ii) West (iii) South

13. Contingency Reserve is 20,000 and contingent liability is 18,000. How would you deal with the

remaining contingency Reserve.

a) 2,000 should be distributed among the partners in their profit sharing ratio.

b) 20,000 should be distributed among the partners in capital ratio.

c) 18,000 should be distributed among the partners equally.

14. Realisation of assets on dissolution is

a) Sudden

b) Creditors

c) Unexpected

15. External liabilities are liabilities due to

a) Partners

b) Creditors

c) None

16. Employees dues are

a) Preferential liabilities

b) Contingent liabilities

c) External liabilities

17. Contingent liabilities are the liabilities which are

a) Contingent on happening of certain event in future

b) Fixed liabilities

c) Current liabilities




18. Preferential liabilities are

a) Payable to creditors

b) Payable to government

c) Payable to partners

19. Partners loan is

a) Internal liability b) External liability

c) Secured liability

20. Take over of liability by a partner is

a) Added to capital of a partner

b) Deducted from capital of a partner

c) Neglected

21. General Reserve should be

a) Distributed in profit sharing ratio

b) Distributed in capital ratio

c) Not distributed among the partners

22. Profit & Loss Account debit balance should be

a) Deducted from Capitals

b) Added to Capitals

c) Transferred to Realisation Account

23. Relisation A/c is prepared in case of

a) Admission

b) Retirement

c) Death

d) Dissolution

24. Bills under discount is a

a) Contingent liability b) Non-current liability

c) Current liability

d) Fixed liability

25. After payment of outside liabilities

a) Govt. dues should be paid

b) Partner's loan should be paid

c) Partner's capital should be paid

d) Expenses should be paid

26. After payment of partners loan payment should be made to

a) The partner having surplus capital

b) The partner having deficiency

c) Govt. Loan

d) Secured Loan

27. In case an asset of a firm purchased by any partner

a) Partners capital should be debited

b) Agreed value should be distributed among all the partners.

c) Book value should be distributed among all the partners


28. The amount finally left unpaid on partner's capital account should be in

a) Capital ratio

b) Profit sharing ratio

c) Equally

d) Ratio of drawings




29. Government dues payable by the firm on the date of dissolution is treated as

a) Secured creditors

b) Unsecured creditors

c) Preferential creditors


30. Employees dues payable on the date of dissolution is treated asa) Secured creditors

b) Preferential creditors

c) Unsecured creditors


31. Unsecured creditors are paid in the following order

a) Employees dues, Government dues, other dues

b) Government dues, employees dues, other dues

c) All creditors proportionately

d) All of the above

32. In case cash is not sufficient to pay all partners loans, payment is made

a) Capital ratio b) Profit sharing ratio

c) Ratio of unpaid loans


33. The firm has taken loan from Dena bank 3,00,000 which is partly secured by stock of 1,50,000

which realised 2,50,000

a) 50,000 is treated as unsecured creditors

b) 1,50,000 is treated as secured creditors

c) 1,50,000 is treated as preferential creditors


34. Excess capital method is also known as

a) Surplus capital method

b) Maximum loss method

c) Notional loss method


35. Maximum loss method is also known as

a) Notional loss method

b) Highest relative capital method

c) Surplus capital method


36. In piecemeal distribution liabilities of a firm are paid before

a) Distribution of cash among the partners.

b) Sale of asset

c) Revaluation of assets


37. Any reserve in the Balance sheet on the date of dissolution should be distributed among the partners in

a) Equal ratio

b) Capital ratio

c) Loan ratio


38. If the amount received from sale of asset is not sufficient to pay fully the firm's liabilities the

deficiencies should be borne by the partners in

a) Profit sharing ratio

b) Capital ratio

c) Loan ratio





39. X, Y, Z are the three partners having capitals of 30,000, 36,000 and 18,000. The profit sharing

ratio is2

5 :

2

5 :

1

5 Under surplus capital method the capital considered as base is

a) X

b) Y

c) Z

d) X and Y

40. Monika, Sonika , Ronika are partners sharing Profits and Losses in the ratio of 2:1:1 their Capitals are :

Monika 40,000

Sonika 10,000

Ronika 5,000

Reserve fund 8,000

Contingency Reserve 6,000

Loan :

Sonika 6,000

Ronika 4,000

On the date of dissolution contingent Liability was 2,000 Realisation expenses 2,000. Whose capital

is considered as a base for calculation of surplus capital.

a) Sonika

b) Monika

c) Ronika

d) None

41. The adjusted capitals of the partners will be

a) 46,000, 13,000, 8,000

b) 50,000, 26,000, 7,000

c) 44,000, 12,000, 7,000

c) 42,000, 11,000, 6,000

42. The ultimate surplus will be

a) Monika 20,000

b) Sonika 5,000

c) Ronika 8,000


43. Cash available for payment to creditors on the date of dissolution is

a) 2,000

b) 3,000

c) 1,000

d) 500

CHAPTER – 3 : Amalgamation of Partnership Firms

1. Amalgamation is

a) Merger of businesses

b) Dissolution of firms

c) None

2. Purchase consideration is the amount

a) Payable by new firm to old firm

b) Payable by old firms to partners

c) Payable by one firm to another firm.

3. Assets are transferred to Realisation A/c at

a) Book value b) Market value

c) Cost






17. On amalgamation of firms partners loans of vendor firm are transferred to

a) Capital Accounts

b) Revaluation A/c

c) Purchasing firm's A/c


18. On amalgamation of firms, accumulated profits of old firm are distributed toa) Old partners in old ratio

b) Old partners in new ratio

c) New partners in New ratio


19. On amalgamation liabilities not taken over by the new firm are transferred to

a) Capital Accounts of partners

b) New firm's A/c

c) Revaluation A/c


20. On amalgamation of firms profit or loss on sale of firm is determined by preparation of

a) Realisation A/c

b) Profit and Loss Appropriation A/c

c) Revaluation A/c


21. On amalgamation of firms goodwill of both the firms is

a) Ingored

b) Valued separately

c) Valued at cost


22. Deferred Revenue expenses in Balance sheet of amalgamating firms are transferred to

a) Capital A/cs of partners

b) Loan A/cs of partners

c) Realisation A/cd) Revaluation A/c

23. On amalgamation dissolution expenses of the vendor firm paid by purchasing firm are debited to

a) Goodwill A/c in the books of purchasing firm

b) Partners capital A/cs in New ratio

c) Vendor firm's A/c in the books of purchasing firm


24. In case these is a provision for doubtful debt against debtors such debtors should be transferred to

Realisation A/c at

a) Current value

b) Gross value

c) Net value

d) None of he above

25. On amalgamation dissolution expenses paid by the vendor firm are debited to

a) Realisation A/c

b) Revaluation A/c

c) Capital A/cs

d) None of he above

CHAPTER – 4 : Accounting with the Use of Accounting Software

1. A cost centre is the unit of the organisation where

a) Cost is incurred

b) Income is generatedc) Profit is generated

d) All of the above




2. A profit centre has control over

a) Cost

b) Revenue

c) Profit

d) All of the above

3. An Investment centre has control overa) Cost & Revenue

b) Profit

c) Investment

d) All of the above

4. Steps to create cost centre involves

a) Gateway to Tally A/c Info. cost category single create

b) A/c Info. cost category

c) Cost category Single Create

d) All of the above

5. To alter cost category

a) Gateway to Tally A/c Info. Cost Category

b) Select the cost category from Pop up list

c) Select the cost category from cost records

d) Both a & b

6. Select the inventory Info option to

a) To learn the features related to Inventory management

b) To record inventory

c) To control inventory

d) All of the above

7. To create multiple stock groups the steps include :

a) Gateway of Tally Inventory info Stock groups Multiple create b) Inventory Info Stock groups

c) Inventory info Gateway of Tally


8. The various costing methods in the pop up menu include :

a) LIFO

b) Standard cost

c) Monthly Average cost

d) All of the above

9. In last purchase cost method inventory is valued at

a) Past cost

b) Latest price

c) Future price

d) Average price

10. The lowest level of information on inventory

a) Stock item

b) Stock group

c) Stock category


11. The highest level of information on inventory

a) Main stock category

b) Stock item

c) Primary stock group





12. Opening balance details are to be entered while creating

a) Stock item

b) Stock category

c) Stock group


13. Consumption of goods is entered ina) Stock Voucher

b) Stock Journal

c) Receipt Note

d) Issue Note

14. To display list of inventory in tally the key pressed is

a) F7 c) F9

b) F10 d) F12

15. To select a company in tally the key pressed is

a) F1 c) F3

b) F2 d) F4

16. For changing the date of voucher the key pressed in tally isa) Ctrl + F2 c) F2

b) F4 d) ctrl + F4

17. In tally default godown name is

a) Main

b) Primary

c) Warehouse


18. In tally the key pressed for stock journal entry is

a) Alt + F7 c) F7

b) F11 d) F10

19. The main options for all the masters in tally area) 2 c) 4

b) 3 d) 5

20. In tally default stock category is

a) Basic

b) Main

c) Primary

d) None

21. In Tally ERP of following is not a pre defined voucher

a) Journal voucher

b) Profit voucher

c) Purchase voucherd) Contra voucher

22. In Tally ERP a voucher passed for Inter-godown Transfer is

a) Transfer voucher

b) Transfer Journal

c) Stock Journal

d) Journal voucher






46. Closing stock is valued at cost or M. P. whichever is less.

47. Drawing A/c is transferred to partner's Loan A/c

48. Sleeping partner does not take active part in business.

49. Indian partnership Act is in force since 1949.

50. Interest on drawings is a loss to partnership.

51. It is compulsory for a partner to contribute capital in business.52. Income received in advance is a liability.

53. A partner cannot carry competitive business.

54. Total Assets need not be equal to Total liabilities.

55. Reserve for discount on creditors shows a Debit balance.

56. Reserve for Bad Debt shows a credit balance.

57. Profit and Loss A/c shows Revenue expenses and incomes.

58. In absence of any agreement profits and losses are shared by partners in capital ratio.

59. Expenses relating to purchases are debited to Trading A/c.

60. Expenses relating to sales are debited to Profit and Loss A/c.

CHAPTER – 2 : Piecemeal Distribution of Cash1. Realisation of assets is sudden.

2. Liabilities due to outsiders are internal liabilities.

3. Govt. due are paid on preference basis.

4. Excess capital method is known as maximum loss method.

5. General Reserve is distributed among the partners in their capital ratio.

6. Unpaid balance on capital accounts represents profit on realisation.

7. Take over of liability by a partner should be deducted from capital account balance.

8. Bill under discount is a contingent liability.

9. Loss on realisation should be distributed among the partners in their capital ratio.

10. Unpaid salaries of employees is a preferential liability.

11. General Reserve is debited to partner’s capital accounts.

12. In practice assets are realized gradually.

13. Excess capital method is known as Highest Relative Capital method.

14. Asset taken over by a partner is debited to his Capital A/c.


1. Amalgamation is merger of businesses.

2. On amalgamation old firms are dissolved.

3. Objective of amalgamation is to increase profitability of firms.

4. AS 16 deals with amalgamation.

5. Realisation Account is opened to implement amalgamation.

6. Loss on Realisation Account is credited to Partner's Capital Account.

7. Realisation expenses are debited to Bank Account and credited to Realisation Account.

8. Goodwill requires special treatment on amalgamation.

9. Capital accounts of partners are adjusted through Cash Account only.

10. Purchase consideration is amount payable by new firm to old firms.

11. AS 14 recognises Realisation method only

12. Profit and Loss Appropriation A/c is prepared on amalgamation.

13. On amalgamation Goodwill of both the firms is not considered.

14. Profit or loss on Realisation in case of amalgamation is transferred to capital accounts in profit

sharing ratio.

15. On amalgamation of firms, fictitious assets of old firms are debited to capital Accounts.

16. On amalgamation of firms, fictitious assets of old firms are debited to capital Accounts equally.





1. Receipt Note voucher is used to record receipt of new stock.

2. Rejection in voucher is used to record issue of stock.

3. Rejection in voucher is used to record goods returned by a customer.

4. Delivery Note voucher is used to record delivery of goods to customers.

5. Rejection out voucher is used to record return of rejected goods to supplier.

6. Stock journal voucher is used to record transfer of stock from one location to another location.

7. Physical stock voucher shows stock physically received.

8. Manufacturing Journal is used by trading companies.

9. Expiry date can be a date prior to the voucher date.

10. Batch voucher is a list of all vouchers for a particular stock item of the same batch.

11. Sorting method is used to sort the report alphabetical.

12. The lowest level of information on inventory is stock group

13. The highest level of information on inventory is primary stock group.

14. Consumption of goods is entered in stock voucher.

15. F1 is the key pressed to select a company in Tally.

16. In Tally the key pressed for stock journal entry is F7

17. There are 3 main options for all the masters in Tally.

18. In Tally Default stock category is primary.

III. MATCH THE FOLLOWING COLUMNS.


Group 'A' Group 'B'

1. Trading Account a) Balance Sheet

2. A Statement of Assets and Liabilities b) Profit & Loss Appropriation Account

3. Account showing distribution of Profit &

Loss among the partners

c) Gross Profit

4. Unsold Stock at the end of the year d) Closing Stock

5. Prepaid Expenses e) Asset Side

f) Liability Side

Group 'A' Group 'B'

1. Intangible Asset a) Bad Debt

2. Debts Irrecoverable b) Fixed Liabilities 3. Liabilities which are to be repaid after a

long period

c) Goodwill

4. Assets held temporarily d) Floating Assets

5. Income due but not received e) Outstanding Income

6. Reserve Fund f) Depreciation

7. Closing Stock g) Loss of goods by fire

h) Accumulated Profit

i) Closing Balance of Stock





Group 'A' Group 'B'

1. Mortgage Loan a) Insolvency

2. Govt. dues b) Should be deducted from capital

3. Bank Overdraft c) Loss on Realisation

4. Contingent Liability d) To be paid last

5. Partners capital e) Bill receivable discounted

6. Balance left unpaid in capital A/c f) Secured Loan

7. Surplus Capital g) Preferential Liabilities

8. Current A/c debit balance h) Unsecured

i) Highest Relative capital

method


Group 'A' Group 'B'

1. Amalgamation a) Debited to partner’s capital A/c

2. AS 14 b) Credited to partner’s capital A/c

3. Purchase Consideration c) Deals with amalgamation

4. Profit on Realisation d) Amount agreed to be paid by

purchasing firm to vendor firm

5. Loss on Realisation e) Credited to partner’s capital A/cs

6. Accumulated profit f) Management of businesses

7. Payment of Realisation expenses g) Debited to Realisation A/c

h) Credited to Realisation A/c


Group 'A' Group 'B'

1. Receipt Note Voucher a) Market value of stock

2. Std. Cost b) Pre- determined value

3. Market Value c) A place to stock

4. Godown d) Record return of rejected goods

5. Rejection out Voucher e) Manufacturing Industry

6. Manufacturing Journal f) Record receipt of new stock

g) Average price

IV. FILL IN THE BLANKS WITH SUITABLE WORDS.


1. Bad debts is a _____.

2. Trading Account shows either _____ or _____.

3. Gross profit is carried to _____ Account.

4. Net profit is divided between the partners in their _____ ratio.

5. Carriage Inward is debited to _____ Account.

6. Whereas carriage outward is debited to _____ Account.

7. Royalty on production is debited to _____ Account.

8. Interest on capital is added to _____.




9. Current Account showing debit balance is shown in the Balance Sheet on _____ side.

10. The balance of the drawings account of a partner is transferred to his _____ Account under the

fixed capital method.

11. When all adjustments regarding salary, commission, interest on capital etc. are made to capital

accounts only, the method is known as _____ Capital Method.

12. The liability of the partners in a firm is _____.

13. The interest on capital of a partner is debited to _____.

14. Goodwill is an _____ assets.

15. The interest on drawings of a partner is credited to _____.

16. When the balances of capitals of partners in a partnership change every year, it is known as _____

Capital Method.

17. Debit balance of Current Account of a partner will appear on the _____ side of the Balance Sheet.

18. _____ is an intangible asset.

19. Gross profit is transferred to _____ Account.

20. Income received in advance is shown on _____ side of Balance Sheet.

21. When partner's capitals are fixed, interest on capitals is credited to _____ Accounts.

22. Capital balances of partners go on changing, when Capital Accounts are maintained on _____ basis.

23. Royalty on sale is shown in _______.

24. Interest on drawings is credited to _______.

25. Wages & salaries is debited to ________.

26. Productive wages are debited to _______.

27. Unproductive wages are debited to ________.

28. Unearned income is shown as a ________ in Balance Sheet.

29. Expenses payable are shown on ________ side in Balance Sheet.

30. Net profit is transferred to _______ _______.

31. Share of loss is _______ to partner’s capital A/c.

CHAPTER – 2 : Piecemeal Distribution of Cash1. Realisation of assets is ______.

2. Liabilities due to outsiders ______.

3. Liabilities due to partners ______.

4. Govt. dues are ______ liabilities.

5. Creditors not secured by assets are ______.

6. Excess capital method is known as ______ method.

7. Undistributed profit is distributed among the partners in their ______ ratio.

8. The unpaid balance on capital accounts represents ______.

9. Take over of any liability by a partner is ______ to capital / currents of the partners.

10. Employee’s dues are _____ liabilities.

11. In practice assets realise ______.12. Secured creditors are paid out of the respective.

13. Realisation expenses are first adjusted from sale proceeds of _______.


1. Objective of amalgamation is ______.

2. On amalgamation, old firms are ______.

3. AS ______ deals with amalgamations.

4. Under Realisation Method, ______ Account is opened to implement amalgamation.

5. Amount agreed to be paid by the new firm to old firm is called ______.

6. Realisation Account may show either _____ or loss.

7. Profit on Realisation is _____ to Partners' Capital Accounts.

8. Loss on Realisation is _____ to Partners' Capital Accounts.




9. Assets and Liabilities are transferred to Realisation Account at _____ _____.

10. In amalgamation goodwill of both the firms is considered for _____ _____.

11. _____ _____ is the amount payable by purchasing firm to vendor firm.

12. In amalgamation profit/Loss on realization is transferred to partners capital Accounts in their _____

_____ ratio.


1. Manufacturing Journal is used by _____ industry.

2. Expiry date cannot be a date _____ to the voucher date.

3. _____ _____ is a list of all vouchers for a particular stock item in the same batch.

4. Configuration settings show _____ _____ _____.

5. _____ _____ _____ is used to record the transfer of stock from one location to another location.

6. _____ _____ _____ shows stock balance.

7. _____ _____ _____ records receipt of new stock.

8. _____ _____ _____ records delivery of goods to customers.

9. Under last purchase cost method, stock valuation is done at _____ price.

10. Press key _____ _____ to delete anything in Tally.11. In Tally stock _____ is the goods that you manufacture.

12. In Tally stock _____ is the largest level of information on inventory.

13. In tally stock journal is a pure _____ transaction.

14. In tally Delivery Note is a pure _____ transaction.

15. There are _____ main options for all masters in Tally.

16. In Tally, Default stock category is _____.

V. THEORY QUESTIONS – (SHORT NOTES)


1. Partnership deed

2. Fixed capital method

3. Fluctuating capital method

4. Partner's salaries

5. Interest on partners capital

6. Outstanding expenses

7. Unexpired expenses

8. Unearned income

9. Income Received in Advance

10. Partner's Loans


1. External Liabilities

2. Preferential Liabilities

3. Contingent Liabilities

4. Secured Loans

5. Unsecured Loans

6. Highest Relative capital

7. Takeover of an asset by a partner





1. Amalgamation

2. Objectives of Amalgamation

3. Purchase consideration

4. Adjustment of capital A/c's

5. Net Asset method


1. Cost centre.

2. Profit centre.

3. FIFO method.

4. Std. price method.

5. Market value method.

6. Rejections in voucher.

7. Rejections out voucher.

8. Physical stock voucher.9. Manufacturing Journal.

VI. Short Questions


1. What is partnership deed?

2. What do you mean by Goodwill?

3. What is fluctuating capital?

4. What is the Balance Sheet?5. What do you mean by carriage inwards?

6. If the partnership deed is silent, in which ratio the partners will share the profit or loss?

7. Why is Partnership Deed necessary?

8. When are Partners' Current Accounts opened?

9. Under which method of Capital Accounts are the Current Accounts of the partners opened?

10. How many partners are required to form a partnership?

11. What is bad debt?

12. What do you mean by credit balance of Trading Account?

13. What is Gross Profit?

14. What is Net Profit?15. What is Balance Sheet?

16. Which adjustments are made in P & L Appropriation A/c?

17. What is unexpired expense?

18. What is unearned income?

19. What is unpaid expense?

20. What is accrued income?

21. How do you disclose Goodwill in Balance Sheet?

22. What is cost of production?

23. What is cost of Goods sold?

24. What is an intangible asset?25. How would you adjust drawings of partners.





1. What is piecemeal distribution?

2. What is preferential liability?

3. What is secured liability?

4. What is unsecured liability?

5. How is preferential liability settled?

6. How is secured liability dealt with?

7. How is General Reserve dealt with on piecemeal distribution?

8. How is Goodwill dealt with on piecemeal distribution?

9. How is P & L A/c debit balance dealt with on piecemeal distribution?

10. What is the mechanism of distribution of cash among the partners on dissolution?

11. How does realization expenses dealt with on piecemeal distribution?


1. What is Amalgamation?

2. What is the objective of Amalgamation?

3. What are the consequences of Amalgamation?

4. Which Accounting Standard deals with Amalgamation?

5. Which method of accounting is recognised by AS 14?

6. What are the different methods of accounting for amalgamation?

7. What is purchase consideration?

8. How is profit on Realisation dealt with?

9. How is accumulated profit dealt with on Amalgamation?

10. Which A/c is debited by payment of Realisation expenses?

11. Which A/c is debited by take over of assets by a partner?

12. In what ratio the profit on Realisation is distributed among the partners?13. How is purchase consideration calculated?


1. What is a cost centre?

2. What is a profit centre?

3. What is stock group?

4. Mention the steps in deletion of a stock category.

5. What is Zero cost method?

6. What is FIFO method?

7. What is std. cost method?

8. What is LIFO method?

9. What is a godown?

10. What is Receipt Note voucher?

11. What is Rejection in voucher?

12. What is Rejection out voucher?

13. What is Delivery Note voucher?

14. What is stock Journal voucher?

15. What is physical stock voucher?

16. What is manufacturing Journal?

17. Which type of industry maintain manufacturing journal?

18. What are the contents of Batch vouchers?




VII. NUMERICAL OBJECTIVE QUESTIONS


1. XYZ & Co. took over assets i.e. Land & Building 4,00,000; Plant & Machinery 3,00,000;

Furniture 2,00,000; Stock 60,000; Debtors 1,50,000 and Cash and Bank balance 90,000.The liabilities taken over include creditors 1,50,000, Bills Payable 40,000 and Expenses

payable 10,000. Purchase consideration is

a) 10,00,000 b) 12,00,000 c) 14,00,000

2. Goodwill of two firms taken over 25,200. There are four partners of the new firm i.e. A, B, C &

D who share in the ratio of 3 : 2 : 3 : 2. Goodwill is to be written off. Capital accounts of the

partners will be debited by

a) 6,300; 6,300; 6,300; 6,300

b) 6,000; 6,000; 6,000; 7,200

c) 7,560; 5,040; 7,560; 5,040

3. Capital balances of A, B, C & D were 65,275; 37,275; 28,300 and 17,100. Goodwill

written off 7,560; 5,040; 7,560 and 5,040. Total Capital of the new firm is 1,12,000.Their new ratio is 3 : 2, 3 : 2. The adjustment is to be made through current accounts. How much is

transferred to Current Account.

a) A 24,115 B 9,835 C 12,860 Dr. D 10,340 Dr.

b) A 2,687.5 B 2,687.5 C 2,687.5 D 2,687.5

c) A 2,500 B 2,500 C 2,500 D 3,250

4. Vehicle recorded 20% below cost should be recorded at cost. The value of vehicle 8,000. The

cost price is :

a) 10,000 b) 18,000 c) 9,600

5. Loan from M 2,000 is discharged by investment of 3,000. The loss on investment is

a) 2,000 b) 1,000 c) 5,000

6. Stock of B & Co. includes 12,000 worth of goods purchased from W & Co. whose practice is tosell goods at cost plus 20%. The unrealised profit is

a) 2,000 b) 2,400 c) 3,000

7. Total capital of the new firm is 40,000. There are four partners A, B, C & D whose share in the

ratio of 30%, 30%, 20% and 20% respectively. The new capitals of the partners will be :

a) 10,000; 10,000; 10,000; 10,000

b) 12,000; 8,000; 12,000; 8,000

c) 12,000; 12,000; 8,000; 8,000

8. Mr. B will make a gift of 10,000 to Mr. A towards his capital. The entry will be :

a) B's Capital A/c Dr.

To A's Capital A/c

b) A's Capital A/c Dr.To B's Capital A/c

c) No entry

9. Advertisement Suspense Account 5,000 should be written off among the partners K & L who

share in the ratio of 3 : 2. The treatment will be :

a) Debited to K & L's Capital by 3,000 and 2,000.

b) Credited to K & L's Capital by 3,000 and 2,000.

c) None

10. X took over investment having book value of 10,000 for 80% of its book value. X Account is

debited by

a) 10,000 (b) 8,000 (c) 18,000

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Objective Questions Sybcom SEM III

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