Accounting Objective Questions and Answers

862. Term 'Credit' means _____ by the business

863. Trial balance checks

A. arithmetical accuracy of accounting entries

B. equality of all assets and liabilities

C. all types of errors

D. valuation of closing stock

Discussion

864. Which of the following statement about a minor partner is incorrect?

A. Minor can be admitted only to the benefits of an existing firm

B. Minor cannot be admitted to the benefits of a new firm taking minor as a partner

C. Minor cannot be a full-fledged partner in a firm

D. Minor can be a full-fledged partner in a firm

Discussion

865. A company forfeited 30 share of Rs. 10 each for non-payment of allotment Rs. 3 share and call money Rs. 4 per share. The company re issued these shares as fully paid-up shares at the rate of Rs. 8 per share. Amount transferred to capital reserve will be

866. Consolidated financial statements are prepared on the principle

A. In the form the companies are one entity, in sub stance they are separate

B. In form companies are separate, in substance, they are one

C. In form and substance, the companies are one entity

D. In form and substance, the companies are separate

Discussion

867. The capital of firm is Rs. 80,000. The normal rate of return is 7.5%. If the profit earned by the firm during the last five years is Rs. 8,000, Rs. 9000, Rs. 7000, Rs. 8,500 and Rs. 10,000 then the super profit of the firm will be.

868. A and B are partners who share profit and loss equally. A with drawing Rs. 400 regularly at the end of each month for half year ended at 30^th June 2008. What will be the amount of interest if 5% p.a. interest is charged on drawing?

Accounting MCQs