Prepared by Muthu Selvam Madurai Cell : 9842104826
The amount received over and above the par value is credited to
Securities premium account
Forfeited shares account
Calls in advance account
Share capital account
After the forfeited shares are reissued, the balance in the forfeited shares account should be transferred to
Capital reserve account
Surplus account
General reserve account
Securities premium account
Incomplete records are generally maintained by
Small sized sole trader business
Multinational enterprises
Government
A company
A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill of the firm was valued as Rs 30,000. Find the contribution of A and C to compensate B:
10,000 and 20,000
15,000 and 15,000
20,000 and 10,000
8,000 and 4,000
That part of share capital which can be called up only on the winding up of a company is called:
Authorised capital
Called up capital
Reserve capital
Capital reserve
Opening statement of affairs is usually prepared to find out the
Capital in the beginning of the year
Loss occurred during the year
Capital at the end of the year
Profit made during the year
Statement of affairs is a
Statement of income and expenditure
Statement of assets and liabilities
Summary of credit transactions
Summary of cash transactions
The amount of credit sales can be computed from
Bills receivable account
Bills payable account
Total creditors account
Total debtors account
What is the amount of capital of the proprietor, if his assets are Rs 85,000 and liabilities are Rs 21,000?
Rs 1,06,000
Rs 21,000
Rs 85,000
Rs 64,000
Current assets excluding inventory and prepaid expenses is called
Tangible assets
Funds
Quick assets
Reserves
Pick the odd one out
Interest on loan from partners is allowed at 6% per annum.
Interest on partners’ capital is allowed at 7% per annum
No salary or remuneration is allowed to partners
Partners share profits and losses equally
As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is
6% per annum
5% per annum
12% per annum
8% per annum
Opening balance of debtors: Rs 30,000, cash received: Rs 1,00,000, credit sales: Rs 90,000; closing balance of debtors is
20,000
30,000
40,000
1,30,000
Balance of receipts and payments account indicates the
Loss incurred during the period
Excess of income over expenditure of the period
Total cash payments during the period
Cash and bank balance as on the date
Receipts and payments account records receipts and payments of
Capital nature only
Both revenue and capital nature
Revenue nature only
None of the above
Which of the following statements is not true?
The common–size statements show the relationship of various items with some common base, expressed as percentage of the common base
The tools of financial statement analysis include common-size statement
Notes and schedules also form part of financial statements
Trend analysis refers to the study of movement of figures for one year
Balaji and Kamalesh are partners sharing profits and losses in the ratio of 2:1. They admit Yogesh into partnership. The new profit sharing ratio between Balaji, Kamalesh and Yogesh is agreed to 3:1:1. Find the sacrificing ratio between Balaji and Kamalesh.
3:1
1:3
2:1
1:2
Contra voucher is used for
Withdrawal of cash from bank for office use
Reports
Credit purchase of assets
Master entry
In which voucher type credit purchase of furniture is recorded in Tally
Journal voucher
Payment voucher
Receipt voucher
Purchase voucher
Which of the following statements is not true?
Interpretation of the analysed data involves personal judgement.
All the limitations of financial statements are applicable to financial statement analysis also.
Financial statement analysis is only the means and not an end.
Expert knowledge is not required in analysing the financial statements.
Rs 25,000 withdrawn from bank for office use. In which voucher type, this transaction will be recorded
Receipt Voucher
Sales Voucher
Payment Voucher
Contra Voucher
Income and expenditure account is a
Nominal A/c
Real A/c
Personal A/c
Representative personal account
Donations received for a specific purpose is
Capital expenditure
Capital receipt
Revenue expenditure
Revenue receipt
Which of the following should not be recorded in the income and expenditure account?
Sale of old news papers
Loss on sale of asset
Honorarium paid to the secretary
Sale proceeds of furniture
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
1:2
4:3
2:1
3:4
Income and Expenditure Account is prepared to find out
Profit or loss
Cash and bank balance
Surplus or deficit
Financial position
Which one of the following is not correctly matched?
Liquid ratio – Proportion
Fixed assets turnover ratio – Percentage
Gross profit ratio – Percentage
Debt-equity ratio – Proportion
Legacy is a
Capital expenditure
Revenue expenditure
Capital receipt
Revenue receipt
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
38,000
36,000
35,000
34,000
There are 500 members in a club each paying Rs 100 as annual subscription. Subscription due but not received for the current year is Rs 200; Subscription received in advance is Rs 300. Find out the amount of subscription to be shown in the income and expenditure account.
50,000
49,900
50,200
49,800
In the absence of a partnership deed, profits of the firm will be shared by the partners in
None of these
Equal ratio
Capital ratio
Both Equal ratio and Capital ratio
Subscription due but not received for the current year is
An asset
An item to be ignored
A liability
An expense
Which is not the default group in Tally?
Outstanding expense
Investments
Sales account
Suspense account
Which of the following tools of financial statement analysis is suitable when data relating to several years are to be analysed?
Common size statement
Cash flow statement
Trend analysis
Comparative statement
In the absence of an agreement among the partners, interest on capital is
Allowed at bank rate
Not allowed
Allowed @ 6% per annum
Allowed @ 5% per annum
Accounting report prepared according to the requirements of the user is
Special purpose report
Balance sheet
Routine accounting report
Trial balance
Revaluation A/c is a
Nominal A/c
Personal A/c
Real A/c
Impersonal A/c
X, Y and Z were partners sharing profits and losses equally. X died on 1st April 2019. Find out the share of X in the profit of 2019 based on the profit of 2018 which showed Rs 36,000.
1,000
12,000
3,000
36,000
When a partner withdraws regularly a fixed sum of money at the middle of every month, period for which interest is to be calculated on the drawings on an average is
12 months
6 months
5.5 moths
6.5 months
When fixed capital method is adopted by a partnership firm, which of the following items will appear in capital account?
Interest on capital
Additional capital introduced
Interest on drawings
Share of profit
Which of the following is the incorrect pair?
Interest on capital – Credited to capital account
Interest on loan – Debited to capital account
Share of profit – Credited to capital account
Interest on drawings – Debited to capital account
Which one of the following statements is not true in relation to incomplete records?
It is an unscientific method of recording transactions
Records are maintained only for cash and personal accounts
Tax authorities do not accept
It is suitable for all types of organisations
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.
150
50
550
500
The mathematical expression that provides a measure of the relationship between two figures is called
Model
Ratio
Conclusion
Decision
Super profit is the difference between
Assets and liabilities
Average profit and normal profit
Capital employed and average profit
Current year’s profit and average profit
Which of the following is true?
Super profit = Average profit – Normal profit
Super profit = Weighted profit / number of years
Super profit = Average profit × Years of purchase
Super profit = Total profit / number of years
Identify the incorrect pair
Goodwill under Super profit method - Super profit × Number of years of purchase
Goodwill under Weighted average - Weighted average profit profit method × Number of years of purchase
Goodwill under Average profit method - Average profit × Number of years of purchase
Goodwill under Annuity method - Average profit × Present value annuity factor
Which of the following items relating to bills payable is transferred to total creditors account?
Bills payable accepted during the year
Closing balance of bills payable
Cash paid for bills payable
Opening balance of bills payable
When the average profit is Rs 25,000 and the normal profit is Rs 15,000, super profit is
10,000
5,000
25,000
15,000
If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called
Sacrificing ratio
Capital ratio
None of these
Gaining ratio
Which of the following options is used to view Trial Balance from Gateway of Tally?
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
30,000
1,00,000
70,000
40,000
On revaluation, the increase in the value of assets leads to
Loss
Gain
None of these
Expense
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.
3:1
3:5
5:3
1:3
In the absence of an agreement, partners are entitled to
Commission
Interest on capital
Interest on loan
Salary
Which of the following statements is true?
Goodwill is a current asset
Goodwill is a fictitious asset
Goodwill cannot be acquired
Goodwill is an intangible asset
At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of
the old partners
the new partner
the sacrificing partners
all the partners
Which of the following statements is not true in relation to admission of a partner
Generally mutual rights of the partners change
The profits and losses of the previous years are distributed to the old partners
The firm is reconstituted under a new agreement
The existing agreement does not come to an end
Select the odd one out
Goodwill brought by new partner
Accumulated loss
Investment fluctuation fund
Revaluation profit
The profit or loss on revaluation of assets and liabilities is transferred to the capital account of
All the partners
The old partners
The new partner
The Sacrificing partners
A partner retires from the partnership firm on 30th June. He is liable for all the acts of the firm up to the
Date of his final settlement
End of the current accounting period
End of the previous accounting period
Date of his retirement
Salary account comes under which of the following head?
Direct Expenses
Direct Incomes
Indirect Incomes
Indirect Expenses
On retirement of a partner from a partnership firm, accumulated profits and losses are distributed to the partners in the
New profit sharing ratio
Sacrificing ratio
Old profit sharing ratio
Gaining ratio
On revaluation, the increase in liabilities leads to
Loss
Gain
Profit
None of these
If the final amount due to a retiring partner is not paid immediately, it is transferred to
Other partners’ capital A/c
Bank A/c
Retiring partner’s loan A/c
Retiring partner’s capital A/c
‘A’ was a partner in a partnership firm. He died on 31st March 2019. The final amount due to him is Rs 25,000 which is not paid immediately. It will be transferred to
A’s current account
A’s Executor account
A’s Executor loan account
A’s capital account
The financial statements do not exhibit
Non-monetary data
Long term data
Short term data
Past data
In a common-size balance sheet, if the percentage of non-current assets is 75, what would be the percentage of current assets?
175
125
25
100
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
Both (i) and (ii) are correct
Only (i) is correct
Only (ii) is correct
Both (i) and (ii) are incorrect
On retirement of a partner, general reserve is transferred to the
Capital account of all the partners
Revaluation account
Memorandum revaluation account
Capital account of the continuing partners
Which of the following statement is false?
Issued capital can never be more than the authorised capital
Reserve capital can be called at the time of winding up
In case of under subscription, issued capital will be less than the subscribed capital
Paid up capital is part of called up capital
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
2 times
6 times
3 times
8 times
When shares are issued for purchase of assets, the amount should be credited to
Vendor’s A/c
Share capital A/c
Sundry assets A/c
Bank A/c
Which submenu displays groups, ledgers and voucher types in Tally?
Accounting vouchers
Inventory vouchers
Company Info
Account Info
If a share of Rs 10 on which Rs 8 has been paid up is forfeited. Minimum reissue price is
Rs 8 per share
Rs 2 per share
Rs 5 per share
Rs 10 per share
Supreme Ltd. forfeited 100 shares of Rs 10 each for non-payment of final call of Rs 2 per share. All these shares were re-issued at Rs 9 per share. What amount will be transferred to capital reserve account?
Rs 800
Rs 1,000
Rs 700
Rs 900
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 Rs 3,000, find out the amount of capital at the end.
Rs 3,000
Rs 11,000
Rs 21,000
Rs 9,000
Balance sheet provides information about the financial position of a business concern
As on a particular date
Over a period of time
For the accounting period
For a period of time
At the time of forfeiture, share capital account is debited with
Called up amount
Face value
Nominal value
Paid up amount
Which of the following is not a tool of financial statement analysis?
Common size statement
Standard costing
Trend analysis
Comparative statement
The term ‘fund’ refers to
Non-current assets
Working capital
Current liabilities
Fixed assets
A limited company’s sales has increased from Rs 1,25,000 to Rs 1,50,000. How does this appear in comparative income statement?
+20%
-120%
+120%
-20%
At the time of retirement of a partner, determination of gaining ratio is required
To transfer revaluation profit or loss
None of these
To distribute accumulated profits and losses
To adjust goodwill
Which of the following is shown in Profit and loss appropriation account?
Office expenses
Interest on bank loan
Salary of staff
Partners’ salary
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?
10%
110%
11%
90%
Current ratio indicates
Ability to meet short term obligations
Long term solvency
Profitability
Efficiency of management
Debt equity ratio is a measure of
Efficiency
Long term solvency
Short term solvency
Profitability
(i) Current ratio 1. Liquidity (ii) Net profit ratio 2. Efficiency (iii) Debt-equity ratio 3. Long term solvency (iv) Inventory turnover ratio 4. Profitability
1 4 3 2
3 2 4 1
1 2 3 4
4 3 2 1
(1) Under subscription - (i) Amount prepaid for calls (2) Over subscription - (ii) Subscription above the offered shares (3) Calls in arrear - (iii) Subscription below the offered shares (4) Calls in advance - (iv) Amount unpaid on calls
(iv) (iii) (ii) (i)
(iii) (iv) (i) (ii)
(i) (ii) (iii) (iv)
(iii) (ii) (iv) (i)
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:
(ii) and (iii)
(ii) and (iv)
(i) and (iv)
(i) and (ii)
Proportion of share holders' funds to total assets is called
Capital gearing ratio
Proprietary ratio
Current ratio
Debt equity ratio
Receipts and payments account is a
Representative personal account
Real A/c
Nominal A/c
Personal A/c
The excess of assets over liabilities is
Profit
Loss
Capital
Cash
(i) Sacrificing ratio 1. Investment fluctuation fund (ii) Old profit sharing ratio 2. Accumulated profit (iii) Revaluation Account 3. Goodwill (iv) Capital Account 4. Unrecorded liability
1 2 3 4
4 3 2 1
3 2 4 1
3 1 4 2
Current liabilities Rs 40,000; Current assets Rs 1,00,000 ; Inventory Rs 20,000 . Quick ratio is
1:2
1:1
2:1
2.5:1
Function key F11 is used for
Accounting vouchers
Company Features
None of these
Company Configuration
What are the predefined Ledger(s) in Tally? (i) Cash (ii) Profit & Loss A/c (iii) Capital A/c
Both (ii) and (iii)
Only (i)
Only (ii)
Both (i) and (ii)
The average rate of return of similar concerns is considered as