MCQ of Account PDF

# Adjustments of Sole Proprietorship and Partnership Firm: 1. Darpan and Harshad are partners with a capital of Rs. 4,00,000 and Rs. 3,00,000 on 1st April, 2020 respectively. Darpan introduced additional capital of Rs. 80,000 on 1st June, 2020 and Harshad introduced additional capital of Rs. 50,00...

# Adjustments of Sole Proprietorship and Partnership Firm: 1. Darpan and Harshad are partners with a capital of Rs. 4,00,000 and Rs. 3,00,000 on 1st April, 2020 respectively. Darpan introduced additional capital of Rs. 80,000 on 1st June, 2020 and Harshad introduced additional capital of Rs. 50,000 on 30th September, 2020. Darpan withdraw Rs. 30,000 from his capital on 1st January, 2021. Calculate interest on capital for the year ended 31st March, 2021. The rate of interest on capital is 9% p.a. The amount of interest on Darpan's capital will be: - A. Rs. 44,500 - B. Rs. 40,500 - C. Rs. 43,200 - D. Rs. 41,325 2. Mr. X is a partner in a partnership firm, his withdrawal are as follows: On 1st May, 2020 Rs. 10,000; On 15 July, 2020 Rs. 12,000; On 1 October, 2020 Rs. 15,000 and On 30th November, 2020 Rs. 18,000. Interest charged on drawings @ 9% p.a. Calculate Interest on Drawings for the year ended 31st March, 2021 and the effect in financial statement. - A. Rs. 2,850, Credit side of Profit & Loss Appropriation A/c and Debit side of the Current Account - B. Rs. 2,800, Credit side of Profit & Loss Appropriation A/c and Debit side of the Current Account - C. Rs. 2,825, Debit side of Profit & Loss Appropriation A/c and Credit side of the Current Account - D. Rs. 2,875, Debit side of Profit & Loss Appropriation A/c and Credit side of the Current Account 3. C and D are partners in partnership firm without any agreement. C has given a loan of Rs. 50,000 from the first day of the financial year to the firm. At the end of year loss was incurred in the business. Following interest would be paid to C by the firm: - A. Rs. 2,500 - B. Rs. 3,000 - C. Rs. 3,500 - D. Rs. 1,000 4. A and B are partners in partnership firm with agreement. Btake a loan of Rs. 3,00,000 on 31st July 2020 from the partnership firm. At the end of year profit was earned in the business. Interest rate is 10% P.a. Calculatethe interest to be paid to Partnership firm by Partner B on 31st March, 2021 and the effect in financial statement. - A. Rs. 28,300, Debit side of Profit & Loss Appropriation A/c and Credit side of the Current Account - B. Rs. 20,000, Credit side of Profit & Loss Appropriation A/c and Debit side of the Current Account - C. Rs. 20,000, Debit side of Profit & Loss Appropriation A/c and Credit side of the Current Account - D. Rs. 28,300, Credit side of Profit & Loss Appropriation A/c and Debit side of the Current Account 5. Salaries to partner should be: - A. Debit side of Profit & Loss Appropriation A/c and Credit side of the Current Account of partner - B. Credit side of Profit & Loss Appropriation A/c and Debit side of the Current Account of partner - C. Credit side of Trading A/c and Debit side of the Current Account of partner - D. Credit side of Profit & Loss Appropriation A/c and Credit side of the Current Account of partner 6. Out of total closing stock, 10% of the goods, its market value decrease by 15%, 35% of the goods, its market value is increase by 10% and 25% of the goods, its market value is Rs. 1200, which is 20% less than the cost price. Find out the value of closing stock. - A. Rs. 5610 - B. Rs. 5700 - C. Rs. 6000 - D. Rs. 7200 7. Match the following: | | A | B | |---|---------------------------------|-------------------| | 1 | Accrued Income | a. Personal account | | 2 | Outstanding expenses | b. Nominal account | | | | c. Assets | | | | d. Liabilities | - A. 1-a,c, 2-a,d - B. 1-b,c, 2- b,d - C. 1-a, d, 2-a,c - D. 1- b,d, 2-b,c 8. Ascertain the amount with effect of electricity for the year 2020-21 (April to March). Electricity of Rs. 11,000 (including Rs. 6,000 for the year ended on 30.9.2021) - I. Rs. 8000 is debited to the profit and loss a/c - II. Rs. 3000 is recorded on Balance sheet assets side - III. Rs. 8000 is recorded on the balance sheet assets side - A. Statement I and II are correct - B. Statement II and III are correct - C. Statement III is correct - D. All statements are correct 9. Which of the following is/are consider as a true statement/s? - I. Accrued interest received results into the increase in income as well as assets of the business. - II. Outstanding insurance premium decreases the expenses and liabilities of the business. - A. Both the statements are correct - B. Both the statements are not correct - C. The statements I is correct and statements II is not correct - D. The statements II is correct and statements I is not correct 10. A ltd. has 15% investment of Rs. 1,50,000 as on 01.04.2020. During the year interest received on this investment is Rs. 25000. Identify the correct statement from the following. - A. Profit and loss account credited with Rs. 25000 and Rs. 2500 on balance sheet liability side - B. Profit and loss account debited with Rs. 22,500 and Rs. 2500 on balance sheet assets side - C. Profit and loss account credited with Rs. 22,500 and Rs. 2500 on balance sheet assets side - D. Profit and loss account credited with Rs. 22,500 and Rs. 2500 on balance sheet liability side 11. Uninsured goods of Rs. 5000 destroyed by fire | Account | Debit | Credit | |---------------------|------|-------| | Trading a/c | 5000 | | | By Goods destroyed by fire | | 5000 | | Account | Debit | Credit | |---------------------|------|-------| | Profit & Loss a/c | | 5000 | | To Loss due to fire | 5000 | | 12. Goods of Rs. 8000 destroyed by fire and insurance co. admitted a claim of Rs. 6000 | Account | Debit | Credit | |---------------------|------|-------| | Trading a/c | 8000 | | | By Goods destroyed by fire | | 8000 | | Account | Debit | Credit | |---------------------|------|-------| | Profit & Loss a/c | | 2000 | | To Loss due to fire | 2000 | | | Balance Sheet | Liabilities | Assets | |-----------------------------|------------|--------| | | | | | | By Insurance claim | 6000 | 13. Goods of Rs. 8000 destroyed by fire and insurance co. admitted a claim of Rs. 8000 | Account | Debit | Credit | |---------------------|------|-------| | Trading a/c | | 8000 | | By Goods destroyed by fire | 8000 | | | Account | Debit | Credit | |---------------------|------|-------| | Profit & Loss a/c | | | | Balance Sheet | Liabilities | Assets | |-----------------------------|------------|--------| | | | | | | By Insurance claim | 8000 | 14. From the following information, provide the correct treatment in P&L A/c and Balance Sheet. | Particulars | Trial Balance Debit | Trial Balance Credit | |------------|----------------------|---------------------| | Debtors | 50,000 | | | Bad debts | 5000 | | | Provision for doubtful debts | | 2000 | **Adjustments:** - Write off further Bad debts of Rs. 5000. - Create a provision for doubtful debts @10% on debtors. - Provision for discount on debtors @10%. | Profit & Loss a/c | Debit | Credit | |--------------------------------------|-------|-------| | Bad debt (T/B) | 5000 | | | (+) Bad debt(a) | 5000 | | | (+) BDR (A) | 4500 | | | (-) BDR(t/b) | -2000 | | | | | 12500 | | Provision for discount on debtors | | 4050 | | Balance Sheet | Liabilities | Assets | |-----------------------------|------------|--------| | | | | | | Debtors | 50,000 | | | Bad debts | -5000 | | | | 45000 | | | BDR | -4500 | | | | 40500 | | | Provision for discount on debtors | -4050 | | | | 36450 | 15. Goods destroyed by fire that are insured & partly claimed results in \_\_\_\_\_\_\_ in assets with the amount. - a) Decrease, Claimed - b) Increase, Unclaimed - c) Decrease, Unclaimed - d) Increase, Claimed 16. When the Provision for Bad debts is increased from 15000 to 17500 & the bad debts for the given period are Rs. 2500, then the profit & loss account is debited by : - a) 17500 - b) 15000 - c) 2500 - d) 5000 17. Decrease in the provision of discount on debtors is an example of: - a) Increase in debtors & increase in profits - b) Decrease in debtors & decrease in profits - c) Increase in debtors & decrease in profits - d) Decrease in debtors & increase in profits 18. X Ltd showed a debit balance of machinery of Rs. 60000 as on 31/03/2020 out of which machinery having bookvalue of Rs. 30000 as on that date, was sold for Rs.35000 on 30/09/2020. Depreciation is provided @10% p.a. The amount of depreciation for the year ended 31/03/2021 will be - a) 5000 - b) 4500 - c) 6500 - d) 6000 19. Cash purchases of Rs. 30000 wrongly recorded as credit purchases. The rectifying entries are recorded as: - a) Purchases a/c dr To Cash a/c - b) Creditor's a/c dr To Purchases a/c - c) Cash a/c dr To Purchases a/c - d) Creditor's a/c dr To Purchases a/c - Cash a/c dr To Purchases a/c **Answers** - 15. (C) - 16. (D) - 17. (A) - 18. (B) - 19. (B)