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

Closing capital can be found by preparing a statement affairs at the _____ of the year.

(a)

opening

(b)

end

(c)

centre

(d)

none of these

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

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

Amount invested by partners in the partnership business is called __________

(a)

Owner's capital

(b)

Partner's capital

(c)

Profit and loss appropriation

(d)

None of these

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

At the time of admission of a new partner, revaluation of ________ and ________ should be taken up.

(a)

capital, assets

(b)

capital, liabilities

(c)

assets, liabilities

(d)

none of these

On admission of a new partner, increase in value of assets is debited to

(a)

Asset A/c

(b)

Profit & Loss adjustment A/c

(c)

Opening Statement of affairs

(d)

Cash A/c

On retirement of a partner from a partnership firm, accumulated profits and losses are distributed to the partners in the

(a)

New profit sharing ratio

(b)

Old profit sharing ratio

(c)

Gaining ratio

(d)

Sacrificing ratio

The firm is reconstituted and other partners continue the partnership firm with a new __________

(a)

Contract

(b)

agreement

(c)

start business

(d)

none of these

_____account which is otherwise called profit and loss adjustment account

(a)

Capital

(b)

General reserve fund

(c)

Revaluation

(d)

Goodwill

Debit balance of revaluation account is ________

(a)

Loss

(b)

Profit

(c)

Gain

(d)

Income

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

Profits are distributed among the shareholders in the form of ___________

(a)

shares

(b)

dividends

(c)

both

(d)

none of these

The public issue must be kept open for atleast

(a)

3 days

(b)

5 days

(c)

7 days

(d)

10 days

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%

According to companies (Amendment) Act 2000, a company limited by shares can issue _____ kinds of shares.

(a)

1

(b)

2

(c)

3

(d)

4

Debt equity ratio is a measure of

(a)

Short term solvency

(b)

Long term solvency

(c)

Profitability

(d)

Efficiency

Contra voucher is used for

(a)

Master entry

(b)

Withdrawal of cash from bank for office use

(c)

Reports

(d)

Credit purchase of assets

___________ is one of the most widely used financial accounting softwares

(a)

Tally

(b)

Excel

(c)

Word

(d)

Spread sheet