Accountancy Mock Test

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Question 1
5 / -1

Very small Not-for-Profit Organizations (NPOs) prepare only ______

A
Receipts and payment account

B
Income and expenditure account

C
Trading account

D
Profit and loss account

Question 2
5 / -1

Statement of cash flows includes:

A
Financing Activities

B
Operating Activities

C
Investing Activities

D
All of these

Question 3
5 / -1

Securities Premium can not be applied:

A
For paying dividend to members

B
For issuing bonus shares to members

C
For writing off preliminary expenses of company

D
For writing off discount on issue of debentures

Question 4
5 / -1

A method used in a comparative analysis of financial statement is:

A
Returning analysis

B
Common size analysis

C
Preference analysis

D
Graphical analysis

Question 5
5 / -1

Cherry join as a partner in Mango’s company. As per the partnership deed, interest on drawing is charged at 24% p.a. During the year ended 31^st December 2020, he drew as follows:
Date
Rupees
Mar-01
5,000
Jun-01
5,000
Sep-01
5,000
Dec-01
5,000

Calculate the amount of interest on drawings

A
Rs. 2,200

B
Rs. 3,300

C
Rs. 4,400

D
Rs. 5,500

Question 6
5 / -1

P&L statement is also known as:

A
Statement of operations

B
Statement of income

C
Statement of earnings

D
All of the above

Question 7
5 / -1

Subscribed Capital means capital __________ by the public

A
Actually transferred

B
Actually traded

C
Actual accepted

D
Actually sold

Question 8
5 / -1

X and Y are partners sharing profit in the ratio of 3 ∶ 2 Z is admitted for 1/5 share in the firm. Z acquires his share from X and Y equally. The new profit sharing ratio of the partners will be

A
5 ∶ 3 ∶ 2

B
11 ∶ 9 ∶ 5

C
4 ∶ 3 ∶ 2

D
3 ∶ 2 ∶ 2

Question 9
5 / -1

Cash Flow Statement is a statement that shows the inflows and the outflows of ___________ during the period.

A
Only cash

B
Only Cash Equivalents

C
Only Receipts

D
Cash and Cash Equivalents

Question 10
5 / -1

For Non profit organisations, small donation amounts which are not earmarked for any specific purpose may be treated as ________.

A
Capital receipts

B
Revenue receipts

C
Capital Expenditure

D
Revenue Expenditure

Question 11
5 / -1

Partner's current account is opened when their capital accounts are ______

A
circulating

B
semi-permanent

C
fluctuating

D
fixed

Question 12
5 / -1

On forfeiture, which of the following accounts are debited?

A
Forfeited Shares A/c

B
Share Capital A/c

C
Capital Reserve A/c

D
Share Call A/c

Question 13
5 / -1

The balance of ‘Sinking Fund Account’ after the redemption of debentures is transferred to :

A
Profit & Loss Account

B
Profit & Loss Appropriation Account

C
General Reserve Account

D
Sinking Fund Account

Question 14
5 / -1

Calls in advance is shown under which head in the balance sheet on the company?

A
Reserves and surplus

B
Current Liabilities

C
Long term liabilities

D
Proposed dividend

Question 15
5 / -1

In the absence of any provision in the partnership agreement, profits and losses are shared by the partners

A
In the ratio of the current capital of partners

B
equally

C
in the ratio of loans given by them to the partnership firm

D
in the ratio of the initial capital introduced by the partners

Question 16
5 / -1

The formula for valuing goodwill under the capitalization of super profit method is

A
Super profit made by the firm multiplied by the normal rate of return

B
Capital employed by the firm multiplied by the normal return

C
Capitalized profits of the firm divided by the rate of return

D
Super profit made by the firm divided by the normal rate of return

Question 17
5 / -1

M/s Mevo and Sons.; a bamboo pens producing company, purchased machinery for Rs. 9,00,000. It received a dividend of Rs. 70,000 on investment in shares. The company also sold an old machine with the book value of Rs. 79,000 at a loss of Rs. 10,000. Compute the amount of Cash flow/used from/in Investing Activities

A
Rs. 4,61,000

B
Rs. 5,61,000

C
Rs. 7,61,000

D
None of these

Question 18
5 / -1

Which among the following is a type of Profitability Ratio?

A
Gross Profit Ratio

B
Liquidity Ratio

C
Stock Turnover Ratio

D
Total Assets to Debts Ratio

Question 19
5 / -1

On taking responsibility of payment of a liability of ₹ 20,000 by a partner, the account credited will be

A
Realisation Account

B
Cash Account

C
Capital Account of the Partner

D
Liability Account

Question 20
5 / -1

Income and Expenditure Account is ________ account in nature.

A
Personal

B
Real

C
Nominal

D
Representative Personal

Question 21
5 / -1

Subscription of shares should not be less than ______ % of the issue shares.

A
85%

B
90%

C
95%

D
100%

Question 22
5 / -1

Which of the following would not be considered a cash flow from operating activities?

A
Payment for purchase

B
Payment of wages

C
Tax payments

D
Payment of interest on debentures

Question 23
5 / -1

P and Q are partners sharing profits in the ratio of 3 ∶ 2. P surrenders \(\frac{1}{6}\)th of his share and Q surrenders \(\frac{1}{4}\)th of his share in favour of R, a new partner. What is the sacrificing ratio?

A
3 ∶ 2

B
2 ∶ 3

C
1 ∶ 1

D
3 ∶ 11

Question 24
5 / -1

A company issued and allotted shares to a selected group of persons. Which concept is indicated in this statement?

A
Public Issue allotment

B
Right issue

C
Private placement of share

D
Employee stock option scheme

Question 25
5 / -1

Assertion (A): Operating cycle of business signifies the time required by the company's operations to convert it into cash
Reason (R): The operating cycle of the service industry is smaller than the operating cycle of manufacturing industries.

A
(A) is correct but (R) is incorrect.

B
(A) is incorrect but (R) is correct

C
Both (A) and (R) are correct and (R) is the right explanation of (A)

D
Both (A) and (R) are correct but (R) is not the right explanation of (A)

Question 26
5 / -1

X Ltd., has a current ratio of 3.5:1 and quick ratio of 2:1. If excess of current assets over quick assets represented by inventories is Rs. 24,000, calculate current assets and current liabilities.

A
Current Liabilities = Rs. 56000 and Current Assets = Rs. 16000

B
Current Liabilities = Rs. 10,000 and Current Assets = Rs. 56000

C
Current Liabilities = Rs. 16000 and Current Assets = Rs. 66000

D
Current Liabilities = Rs. 16000 and Current Assets = Rs. 56000

Question 27
5 / -1

P, Q, and R entered into a partnership with a capital ratio of 11 ∶ 12 ∶ 13, ratio of their time for investment is 1 ∶ 2 ∶ 3. If the profit of Q at the end of the partnership is Rs. 4800. Then, find the total profit.

A
14800

B
14700

C
13800

D
13700

Question 28
5 / -1

X and Y are partners in a firm. They do not have any partnership agreement. What should be done in the given case?
X wants to introduce his son Z into his business. Y objects to his proposal.

A
Z will get admission into partnership as per Indian Partnership Act, 1932.

B
Z will not get admission into partnership without Y's consent.

C
Z will get admission into partnership without the consent of Y.

D
None of the above.

Question 29
5 / -1

Find out operating Ratio:
Cost of goods sold - 350000
Selling and distribution Expenses - 20,000
Administrative & office Expenses - 30,000
Net sales - 5,00,000.

A
23%

B
41%

C
67%

D
80%

Question 30
5 / -1

Out of the following items, which is shown in the ‘Receipts and Payments A/c’ of a not for profit organization?

A
Subscription received in advance

B
Last year subscription received

C
Current year subscription received

D
All of the above

Question 31
5 / -1

Proprietary Ratio = ?

A
Equity Share Capital/Total Assets

B
Equity Share Capital + Preference Share Capital/Fixed Assets

C
Shareholders' Funds/Total Assets

D
None of the above.

Question 32
5 / -1

Varsha and Monica are partners sharing profit and losses in the ratio of 3 : 2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profit. During the year firm earned Rs. 7,800 after allowing interest on capital. Profit apportioned among Varsha and Monica is :

A
Rs. 4,680 and Rs. 3,120

B
Rs. 5,000 and Rs. 2,800

C
Rs. 4,800 and Rs. 3,000

D
Rs. 4,680 and Rs. 2,800

Question 33
5 / -1

The excess amount paid over the called up value of a share is known as _______

A
Calls in arrear

B
Calls in advance

C
Forfeited shares

D
Paid up capital

Question 34
5 / -1

From the following information, calculate the cash flow from financing activities:
Particulars
31st March, 2019
(Rs.)
31st March, 2020
(Rs.)
Equity Share Capital
10% Debentures
Securities Premium
4,00,000
1,50,000
40,000
5,00,000
1,00,000
50,000

Additional Information: Interest paid on debentures Rs. 10,000.

A
11,000

B
50,000

C
34,000

D
None of the above

Question 35
5 / -1

In respect of partnership business, LLP stands for

A
Local Labour Promotion

B
Low Labour Projects

C
Limited Loan Partnership

D
Limited Liability Partnership

Question 36
5 / -1

X Ltd. forfeited 20 shares of Rs.10 each, Rs. 8 called up, on which John had paid application and allotment money of Rs. 5 per share, of these, 15 shares were reissued to Parker as fully paid up for Rs. 6 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account?

A
NIL

B
Rs 5

C
Rs 25

D
None of These

Question 37
5 / -1

Unpaid dividends are shown under which head in the balance sheet of the company?

A
Long term borrowings

B
Long term provisions

C
Other current liabilities

D
Reserves and surplus

Question 38
5 / -1

The balance in the Investment Fluctuation Reserve, after meeting the loss on revaluation of investments, at the time of admission of a partner will be transferred to :

A
Old Partners' Capital Accounts

B
Revaluation Account

C
Sacrificing Ratio

D
None of these

Question 39
5 / -1

The Journal Entry to transfer interest on capital to Profit and Loss Appropriation Account would be :

A
Interest on Capital A/c Dr. To Profit & Loss Appropriation A/c

B
Profit & Loss Appropriation A/c Dr. To Interest on Capital A/c

C
Profit & Loss A/c Dr. Partner's Current A/c To Interest on Capital A/c

D
None of the above

Question 40
5 / -1

A club received Rs. 20,000 as subscriptions during the year 2014-15 of which Rs.3,000 relate to year 2013-14 and Rs.2,000 to 2015-16, and at the end of the year 2014-15 Rs.6,000 are still receivable. What is the amount to be shown in Receipts and payments Account?

A
Rs. 20,000

B
Rs. 21,000

C
Rs. 15,000

D
Rs. 19,000

Question 41
5 / -1

How will you treat payment of ‘Interest of Debentures’ while preparing a Cash Flow Statement ?

A
Cash Flow from Operating Activities

B
Cash Flow from Investing Activities

C
Cash Flow from Financing Activities

D
Cash Equivalents

Question 42
5 / -1

A director of a company invited application for 25,000 shares of ₹100 each at a premium of ₹10 per share. Total application money received was ₹6,00,000 at the rate of application ₹20 per share. Find number of shares applied by public.

A
10,000

B
20,000

C
30,000

D
40,000

Question 43
5 / -1

A, B and C are partners sharing profits and losses equally. D is admitted as a new partner. The value of machinery has increased by ₹5,000 and creditors by ₹2,000. The share of profit on revaluation of each partner is:

A
₹3,000

B
₹2,000

C
₹1,000

D
None of these.

Question 44
5 / -1

Calculate the Trade receivables turnover ratio from the following information:
Total Revenue from operations = Rs. 4,00,000
Cash Revenue from operations = 20% of Total Revenue from operations
Trade receivables as at 1.4.2014 = Rs. 40,000
Trade receivables as at 31.3.2015 = Rs. 1,20,000

A
6 times

B
3 times

C
4 times

D
2 times

Question 45
5 / -1

What would be the accounting entry for a partner’s withdrawal of cash in lieu of salary ?

A
Dr salary A/c
To Cash A/c

B
Dr Cash A/c
To Partner’s Current A/c

C
Dr Cash A/c
To Salary A/c

D
Dr Partner’s Current A/c
To Cash A/c

Question 46
5 / -1

As per the format of Balance sheet prescribed as per Schedule III of Companies act 2013, Capital Work in progress is shown under the heading of

A
Intangible assets

B
Current asset

C
Fixed Assets

D
Loans and advances

Question 47
5 / -1

The following information is provided of M/s Raj Petro for the year enced on 31^st December 2018:
(i) Actual Salaries paid Rs. 1,02,000
(ii) Prepaid Salaries as on 31.12.2017 is Rs. 12.000
(ii) Prepaid Salaries as on 31.12.2018 is Rs. 6,000
(iv) Outstanding Salaries as on 31.12.2017 is Rs. 9,000
(v) Outstanding Salaries as on 31.12.2018 is Rs. 7,500
Calculate the amount of Salaries chargeable to Income and Expenditure account for the year ending on 31 December 2018.

A
Rs. 1,18,500

B
Rs. 1,06,500

C
Rs. 91,500

D
Rs. 82,500

Question 48
5 / -1

The capital redemption reserve account on redemption of preference shares may be applied by the company, in paying

A
Interest

B
Sweat equity shares

C
Rights shares

D
Bonus shares

Question 49
5 / -1

Assertion: Dissolution of the firm means the discontinuation of partnership among partners.
Reason: Dissolution of a firm and Dissolution of a partnership is one and the same thing.

A
A and R are true, and R is the correct explanation of A.

B
A and R are true, but R is not the correct explanation of A.

C
A is true but R is false.

D
A is false but R is true.

Question 50
5 / -1

Which of the following represents accounting equation?

A
Assets= Internal Liabilities

B
Assets= Capital

C
Assets= External liabilities

D
Assets= Liabilities+ Capital

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Date	Rupees
Mar-01	5,000
Jun-01	5,000
Sep-01	5,000
Dec-01	5,000

Accountancy Moc...

Question 1

Receipts and payment account

Income and expenditure account

Trading account

Profit and loss account

Question 2

Financing Activities

Operating Activities

Investing Activities

All of these

Question 3

For paying dividend to members

For issuing bonus shares to members

For writing off preliminary expenses of company

For writing off discount on issue of debentures

Question 4

Returning analysis

Common size analysis

Preference analysis

Graphical analysis

Question 5

Rs. 2,200

Rs. 3,300

Rs. 4,400

Rs. 5,500

Question 6

Statement of operations

Statement of income

Statement of earnings

All of the above

Question 7

Actually transferred

Actually traded

Actual accepted

Actually sold

Question 8

5 ∶ 3 ∶ 2

11 ∶ 9 ∶ 5

4 ∶ 3 ∶ 2

3 ∶ 2 ∶ 2

Question 9

Only cash

Only Cash Equivalents

Only Receipts

Cash and Cash Equivalents

Question 10

Capital receipts

Revenue receipts

Capital Expenditure

Revenue Expenditure

Question 11

circulating

semi-permanent

fluctuating

fixed

Question 12

Forfeited Shares A/c

Share Capital A/c

Capital Reserve A/c

Share Call A/c

Question 13

Profit & Loss Account

Profit & Loss Appropriation Account

General Reserve Account

Sinking Fund Account

Question 14

Reserves and surplus

Current Liabilities

Long term liabilities

Proposed dividend

Question 15

In the ratio of the current capital of partners

equally

in the ratio of loans given by them to the partnership firm

in the ratio of the initial capital introduced by the partners

Question 16

Super profit made by the firm multiplied by the normal rate of return

Capital employed by the firm multiplied by the normal return

Capitalized profits of the firm divided by the rate of return

Rs. 4,61,000

Rs. 5,61,000