The excess of assets over liabilities is

(a)

Loss

(b)

Cash

(c)

Capital

(d)

Profit

If debtors balance was Rs. 2.000 at 1^st Jan.2017, credit sales made during the year were Rs.1,000 and Rs.1,500 were received from debtors, which of the following is the debtors account balance at 31^st Dec. 2017?

(a)

Rs.1,000

(b)

Rs. 2,000

(c)

Rs. 1,500

(d)

Rs. 500

Income and expenditure account is a

(a)

Nominal A/c

(b)

Real A/c

(c)

Personal A/c

(d)

Representative personal account

Some organisations are established for the purpose of rending services to the public without __________

(a)

any profit motive

(b)

any service motive

(c)

both

(d)

none of these

Which of the following is shown in Profit and loss appropriation account?

(a)

Office expenses

(b)

Salary of staff

(c)

Partners’ salary

(d)

Interest on bank loan

The rate of interest on capital is generally agreed by the partners and is mentioned in the _________

(a)

capital account

(b)

profit and loss account

(c)

partnership deed

(d)

none of these

Interest on partner's capital is allowed, only when the _______________ specifically provides for i

(a)

partnership Act

(b)

partnership agreement

(c)

both 'a' and 'b'

(d)

none of these

Book profit of 2017 is Rs. 35,000; non-recurring income included in the profit is Rs. 1,000 and abnormal loss charged in the year 2017 was Rs. 2,000, then the adjusted profit is __________

(a)

Rs. 36,000

(b)

Rs. 35,000

(c)

Rs. 38,000

(d)

Rs. 34,000

Normal profit is ___________

(a)

average profit earned

(b)

profit earned by similar companies in the same industry

(c)

both 'a' and 'b'

(d)

none of the above

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

On admission of a partner if goodwill account is to be raised this should be debited to __________

(a)

Partner's capital account

(b)

Partner's capital account

(c)

Revaluation account

(d)

None of these

The new partner does not bring in cash for his share of goodwill under _______ method.

(a)

Memorandum revaluation

(b)

Revaluation

(c)

Premium

(d)

None of these

A partner who is newly admitted to the firm with the consent of all the parties is called _________

(a)

Salaries Partner

(b)

Incoming partner

(c)

Junior partner

(d)

Minor partner

A, B and C are partners sharing profits in the ratio of 4:2:3. C retires. The new profit sharing ratio between A and B will be

(a)

4:3

(b)

3:4

(c)

2:1

(d)

1:2

The accounting procedure at the retirement of a partner involves _____________

(a)

As their old profit ratio

(b)

According to new ratio

(c)

According to sacrificing ratio

(d)

None of these

When a partner withdraws his capital from the partnership firm, it is called _______of a partner

(a)

Admission

(b)

Death

(c)

Retirement

(d)

All of these

When shares are issued for purchase of assets, the amount should be credited to

(a)

Vendor’s A/c

(b)

Sundry assets A/c

(c)

Share capital A/c

(d)

Bank A/c

Which of the following is not a tool of financial statement analysis?

(a)

Trend analysis

(b)

Common size statement

(c)

Comparative statement

(d)

Standard costing

To test the liquidity of a concern, which of the following ratios are useful?
(i) Quick ratio
(ii) Net profit ratio
(iii) Debt-equity ratio
(iv) Current ratio
Select the correct answer using the codes given below:

(a)

(i) and (ii)

(b)

(i) and (iv)

(c)

(ii) and (iii)

(d)

(ii) and (iv)

Which is not the default group in Tally?

(a)

Suspense account

(b)

Outstanding expense

(c)

Sales account

(d)

Investments