Incomplete records are generally maintained by

(a)

A company

(b)

Government

(c)

Small sized sole trader business

(d)

Multinational enterprises

When capital in the beginning is Rs. 10,000, drawings during the year is Rs. 6,000, profit made during the year is Rs. 2,000 and the additional capital introduced is 3,000, find out the amount of capital at the end

(a)

Rs. 9,000

(b)

Rs. 11,000

(c)

Rs. 21,000

(d)

Rs. 3,000

Balance sheet is prepared under _________

(a)

Single entry system

(b)

Double entry system

(c)

Both (a) & (b)

(d)

None of these

______________ is not based on dual aspect concept

(a)

Single entry system

(b)

Double entry system

(c)

Balance Sheet

(d)

Statement of Affairs

Receipts and payments account records receipts and payments of

(a)

Revenue nature only

(b)

Capital nature only

(c)

Both revenue and capital nature

(d)

None of the above

Income and expenditure account is a

(a)

Nominal A/c

(b)

Real A/c

(c)

Personal A/c

(d)

Representative personal account

Which of the following is generally considered as a non profit organisation?

(a)

Charitable organisation

(b)

Corporation

(c)

Audit firms

(d)

Insurance companies

_______is prepared to find out the surplus or deficit pertaining to a particular year.

(a)

Income and Expenditure account

(b)

Receipts and Payment account

(c)

Trading and Profit and loss account

(d)

Balance sheet

In the absence of an agreement, partners are entitled to 

(a)

Salary

(b)

Commission

(c)

Interest on loan

(d)

Interest on capital

Profit after interest on drawings, interest on capital and remuneration is Rs. 10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission.

(a)

Rs. 50

(b)

Rs. 150

(c)

Rs. 550

(d)

Rs. 500

___________ intervals refers to withdrawal made monthly, quarterly, half-yearly, once in 2 months and once in 4 months.

(a)

Fixed time

(b)

Current time

(c)

Average time

(d)

None of these

The debit balance of the current account, will be shown in the ____________ side of the balance sheet.

(a)

liabilities

(b)

assets

(c)

debit

(d)

credits

Super profit is the difference between

(a)

Capital employed and average profit

(b)

Assets and liabilities

(c)

Average profit and normal profit

(d)

Current year’s profit and average profit

The total capitalised value of a business is Rs. 1,00,000; assets are Rs. 1,50,000 and liabilities are Rs. 80,000. The value of goodwill as per the capitalisation method will be

(a)

Rs. 40,000

(b)

Rs. 70,000

(c)

Rs. 1,00,000

(d)

Rs. 30,000

Rate of interest is 11% and the rate of risk is 9% The normal rate of return is __________

(a)

11%

(b)

9%

(c)

20%

(d)

2%

Net asset value method is based on the assumption that the company is__________.

(a)

a going concern

(b)

going to be liquidated

(c)

both 'a' and 'b'

(d)

none of the above

Which of the following statements is not true in relation to admission of a part _________.

(a)

Generally mutual rights of the partners change

(b)

The profits and losses of the previous years are distributed to the old partners

(c)

The firm is reconstituted under a new agreement

(d)

The existing agreement does not come to an end

James and Kamal are sharing profits and losses in the ratio of 5:3. They admit Sunil as a partner giving him 1/5 share of profits. Find out the sacrificing ratio.

(a)

1:3

(b)

3:1

(c)

5:3

(d)

3:5

When the value of an asset increases, it results in

(a)

profit

(b)

loss

(c)

income

(d)

expense

List I		List II
i)	Revaluation account	1.	Credit side
ii)	Unrecorded assets	2.	Debit side
iii)	Unrecorded liability	3.	Revaluation account
iv)	Memorandum revaluation account	4.	Nominal account

(a)

(i)	(ii)	(iii)	(iv)
4	3	1	2

(b)

(i)	(ii)	(iii)	(iv)
1	2	3	4

(c)

(i)	(ii)	(iii)	(iv)
2	3	4	1

(d)

(i)	(ii)	(iii)	(iv)
4	1	2	3

A partner retires from the partnership firm on 30^th June. He is liable for all the acts of the firm up to the

(a)

End of the current accounting period

(b)

End of the previous accounting period

(c)

Date of his retirement

(d)

Date of his final settlement

If the final amount due to a retiring partner is not paid immediately, it is transferred to

(a)

Bank A/c

(b)

Retiring partner’s capital A/c

(c)

Retiring partner’s loan A/c

(d)

Other partners’ capital A/c

At the time to retirement Balance Sheet items like profit and loss account and General reserve must be transferred to ___________

(a)

Revaluation Alc

(b)

Partners capital A/c

(c)

Both 'a and 'b'

(d)

None of the above

_________maybe taken on the life of the partners in a partnership firm

(a)

Life policies

(b)

Insurance premium

(c)

Both 'a and 'b'

(d)

None of these

A preference share is one
(i) which carries preferential right with respect to payment of dividend at fixed rate
(ii) which carries preferential right with respect to repayment of capital on winding up

(a)

Only (i) is correct

(b)

Only (ii) is correct

(c)

Both (i) and (ii) are correct

(d)

Both (i) and (ii) are incorrect

Which of the following statement is false?

(a)

Issued capital can never be more than the authorised capital

(b)

In case of under subscription, issued capital will be less than the subscribed capital

(c)

Reserve capital can be called at the time of winding up

(d)

Paid up capital is part of called up capital

_____ is the maximum amount which be raised as capital.

(a)

Subscribed capital

(b)

Called up capital

(c)

Paid up capital

(d)

Authorised capital

The amount of one call should not be more than _____ of the face value of the share.

(a)

25%

(b)

50%

(c)

75%

(d)

100%

Which of the following statements is not true?

(a)

All the limitations of financial statements are applicable to financial statement analysis also.

(b)

Financial statement analysis is only the means and not an end.

(c)

Expert knowledge is not required in analysing the financial statements

(d)

Interpretation of the analysed data involves personal judgement

Expenses for a business for the first year were Rs. 80,000. In the second year, it was increased to Rs. 88,000. What is the trend percentage in the second year?

(a)

10 %

(b)

110 %

(c)

90 %

(d)

11%

Interpretation of accounts is the ____________

(a)

art and science of translating the figures

(b)

to know financial strengths and weakness of a business

(c)

to know the causes for the prevailing performance of business

(d)

all of the above

__________ concerns prepare income statement and balance sheet at the of an accounting period.

(a)

Business

(b)

Industry

(c)

Trade

(d)

None of these

Debt equity ratio is a measure of

(a)

Short term solvency

(b)

Long term solvency

(c)

Profitability

(d)

Efficiency

Cost of revenue from operations Rs. 3,00,000; Inventory in the beginning of the year Rs. 60,000; Inventory at the close of the year Rs. 40,000. Inventory turnover ratio is

(a)

2 times

(b)

3 times

(c)

6 times

(d)

8 times

_______ ratio is an indicator of the overall profitability of the business.

(a)

Gross profit

(b)

Net profit

(c)

Operating cost

(d)

Operating profit

Solvency ratios are expressed in terms of ________________

(a)

Proportion

(b)

Times

(c)

Percentage

(d)

None of these

What are the predefined Ledger(s) in Tally?
(i) Cash
(ii) Profit & Loss A/c
(iii) Capital A/c

(a)

Only (i)

(b)

Only (ii)

(c)

Both (i) and (ii)

(d)

Both (ii) and (iii)

Contra voucher is used for

(a)

Master entry

(b)

Withdrawal of cash from bank for office use

(c)

Reports

(d)

Credit purchase of assets

Branch/Division is a group defined under _________

(a)

Assets

(b)

Income

(c)

Liabilities

(d)

Expenditure

Which is the short cut key used for closing Tally?

(a)

Ctrl + F1

(b)

Ctrl + Shift + F4

(c)

Ctrl + X

(d)

Ctrl + Q