1. When the entire issue is underwritten by only one persone, it is called
Correct : C. Sole or Single Underwriting
2. When commission is due underwriter A/c is
Correct : A. Credited
3. A company issued 2000 equity shares which were underwritten by A. The company received applications for 2400 shares. Hence A will get his commission on the issue price of
Correct : B. 2000 shares
4. P Ltd. issued shares of Rs.100 each at Rs.95.The Underwriting Commission will be paid on
Correct : B. 95
5. Unmarked applications are known as
Correct : A. Direct application
6. If the half of the issue of shares or debentures is underwritten it is known as
Correct : D. Partial Underwriting
7. S Ltd. issued shares at the face value of Rs.1000 with a premium of Rs.200 per share. The underwriting commission will be calculated on
Correct : D. Rs.1200
8. In order to spread risk of under subscription, The principal underwriters may appoint
Correct : A. Sub Underwriter
9. An additional commission is paid by the company to the principal underwriters to encourage
Correct : C. Sub Underwriter
10. In which case, liability arises from both open and firm underwriting
Correct : B. Firm Underwriter
11. How many individuals or institutions companies can appoint to manage the issue of its shares
Correct : A. One or more
12. If broker find subscribers, he gets
Correct : C. Brokerage
13. The unerwriting may be done by many underwriters in an agreed ratio,is known as
Correct : B. Joint underwriter
14. Remuneration to investigator upon investigation of the affairs of company is treated as
Correct : C. Preferential creditor
15. Amount of Retirement benefits of employees exceeding ` 20,000 per employee is treated as
Correct : C. Preferential creditor
16. Secured creditors are shown in the statement of affairs under :
Correct : B. List B
17. Interest on debentures and unsecured loan is payable upto the date of actual payment
Correct : A. if the company is solvent
18. Accrued holiday remuneration becoming payable to any workman is treated as
Correct : B. Over-riding preferential creditor
19. Which of the following is not a preferential creditors
Correct : D. Amount due to employee undeer amalgamation or reconstruction
20. When Winding Up Takes Place, Shareholders Are Described As
Correct : D. Contributor
21. The deficiency shown by deficiency account will be equal to the deficiency revealed by
Correct : C. Statement of affairs
22. Insolvent Companies Can Be Liquidated
Correct : B. Optional
23. Surplus Of Amount In Statement Of Affairs Should Be Distributed To
Correct : D. Equity Share Holders
24. If the Assets of A ltd having Book Value of Rs 10,00,000 are taken over at Rs 15,00,000 and Liabilities having a book value of Rs 5,00,000 are taken over at Rs 4,00,000 than Purchase Consideration payable would be
Correct : B. (b) Rs 11,00,000
25. If ABC Limited and DEF Limited are taken over by a new company AKSHAY Limited
Correct : D. (d) It is called as Amalgamatiom
26. On amalgamation, Share issue Expenses A/c appearing on Assets side of the balance sheet of the vendor company
Correct : B. (b) is closed by debit to Equity Shareholders A/c
27. On amalgamation, if the dissolution expenses are paid as well as borne by the purchasing company
Correct : B. (b) no entry is passed in the books of the vendor company
28. Amalgamation adjustment reserve is opened in the books of transferee company to incorporate
Correct : C. (c) The statutory reserves of the transferor company
29. Loss or profit on realisation a/c is transferred by the transferor company, under amalgamation to
Correct : B. (b) Equity Shareholders Account
30. If two or more company come together and form anew company which takes over the assets and liabilities of the vendor companies it is called as
Correct : D. (d) Amalgamation
31. At least of the designated partners of every limited liability partnership shall be a resident in India.
Correct : A. One
32. is a person who is designated as such in the incorporation documents of the limited liability partnership agreement
Correct : C. Designated Partner
33. The Charter document or the formation document of LLP is called as
Correct : C. LLP agreement
34. If there is conversion of private limited company into LLP all the of the company must become partners in the LLP and no one else
Correct : A. Shareholders
35. Prepaid expenses are shown under
Correct : A. Loans and advances asset side
36. In absence of LLP agreement the mutual rights of partners and the relation to LLP will be determined as per schedule _of LLP Act 2008
Correct : A. I
37. In Single entry mostly:
Correct : A. Personal aspects of transaction are recorded
38. Statements of assets & liabilities prepared under single entry system is called:
Correct : C. Statement of affairs
39. Normally single entry system is suitable for:
Correct : A. Small scale business
40. If Building (closing) Rs.100,000, Land (opening) Rs. 100,000, Creditors (opening) Rs.10,000 then opening capital:
Correct : C. Rs. 90,000
41. If opening capital is Rs.10,000 & closing capital is Rs.15,000 then profit or loss:
Correct : C. Profit of Rs.5,000
42. In single entry two-fold aspect of transaction are not recorded, so it is:
Correct : B. Incomplete and Unscientific
43. In single entry system profit is calculated by:
Correct : D. Closing capital + Drawing – Fresh Capital – Opening Capital
44. Opening capital is obtained by preparing:
Correct : C. Opening statement of affairs
45. Single entry system contains
Correct : D. Personal account and cash book
46. In the case of net worth method of single entry system, the net profit is ascertained by
Correct : B. comparing the capital in the beginning and at the end of the accounting period
47. The amount of credit purchases can be ascertained by preparing a
Correct : A. Total Creditors Account
48. When closing capital is less than opening capital, it denotes
Correct : C. profit, if there is no introduction of fresh capital
49. Businessmen may intentionally not maintain proper accounts
Correct : A. to evade taxation.
50. Opening stock Rs.10,000 Sales Rs.40,000 Purchases Rs.30,000 Gross profit on sales 20% From the above figures, the amount of closing stock can be valued at
Correct : A. Rs.8,000
51. If opening capital is Rs.5,000; closing capital - Rs.7,000; drawings - Rs.1,000 and additional capital
introduced during the year is Rs.500; then, the amount of profit made would amounted to
Correct : B. Rs.2,500
52. If the opening capital is Rs.20,000 and closing capital is Rs.25,000; drawings made amounted to Rs.1,800; then, the amount of Rs.________ must be introduced as an additional capital during the year in order to earn a profit of Rs.2,800.
Correct : C. Rs.4,000
53. Under single entry system, certain transactions are recorded :
Correct : C. Totally
54. Under single entry system details of
Correct : C. Expenses and revenues will not be available
55. Under single entry system, only personal accounts are kept and in some cases:
Correct : A. Cash account is maintained
56. Statement of affairs is prepared for ascertaining:
Correct : B. Trading profit or loss
57. From incomplete records, it is possible to prepare
Correct : C. Statement of affairs
58. Single entry can be adopted by :
Correct : A. Small firms
59. The amount of credit sale is ascertained by :
Correct : A. Preparing Total Debtors’ Account
60. The capital at the beginning of the accounting year in case of single entry system is determined
by opening
Correct : A. Opening statement of affairs
61. Single entry book-keeping means
Correct : D. All the above
62. Statement of Affairs is a statement of
Correct : A. Statement of assets and liabilities
63. Procedure of conversion of Single entry books into Double entry
Correct : D. All the above
64. Under the net worth method, the profit can be ascertained by preparing
Correct : D. Statement of Profit
65. The closing capital can be ascertained by preparing
Correct : B. Statement of Affairs
66. Profit under the net worth method, when there are no drawings and no additional capital is the
difference between:
Correct : D. Closing Capital and Opening Capital
67. To ascertain the real profit, the difference between the closing capital and opening capital is adjusted by:
Correct : B. Adding the drawings and deducting the additional capital introduced
68. Under single entry system the main account book kept is
Correct : C. Cash book
69. The system of keeping incomplete record is known as
Correct : A. Single entry
70. In single entry system sales are computed by adding
Correct : B. Cash sales and credit sales
71. The single entry system cannot be adopted by
Correct : C. Joint stock companies
72. The minimum share application money is
Correct : B. 5% of nominal value of shares
73. When closing capital is more than opening capital it means
Correct : A. Profit
74. Which method is used under single entry system to find out the profit or loss?
Correct : B. Statement of affairs method
75. Credit purchase is determined by preparing
Correct : C. Creditor’s Account
76. Under Incomplete records only _____ accounts are maintained.
Correct : A. personal
77. Single entry system contains
Correct : D. Personal accounts and cash book.
78. Bill dishonored is shown in
Correct : B. Bills receivable account and Debtor account.
79. Credit sales can be ascertained by preparing
Correct : B. Debtors account
80. Credit purchases can be ascertained by preparing
Correct : A. Creditors account
81. The advantage of a single entry system
Correct : D. All of the above
82. The disadvantage of single entry system
Correct : D. All of the above
83. The content of single entry system is
Correct : D. A mixture of all the above
84. Net Profit under single entry system is equal to
Correct : C. Capital - Additional Capital + Drawings - Opening Capital
85. Receipts and Payments Account generally shows:
Correct : A. A Debit balance
86. Income and Expenditure Account records transactions of:
Correct : A. Revenue nature only
87. Income and Expenditure Account reveals
Correct : A. Surplus or Deficiency
88. The amount of ‘Subscription received from members’ by a Not-for Profit Organisation is shown
in which of the following:
Correct : B. Credit side of Income and Expenditure Account
89. Donation received for a special purpose:
Correct : B. Should be credited to separate account and shown in the Balance Sheet
90. The amount of Entrance Fees received regularly by a Not-for Profit Organisation is shown in
which of the following:
Correct : D. Credit side of Income and Expenditure Account
91. Out of the following items, which one is shown in the Receipts and Payments Account:
Correct : C. Life Membership Fees
92. Receipts and Payments Account is a:
Correct : B. Real Account
93. Donations received for a special purpose will be taken to the
Correct : C. Liabilities side of the B/S
94. Non-trading concern prepare
Correct : D. All of the above
95. Receipts and Payments Account of non-trading concerns is a
Correct : B. Real Account
96. Income and Expenditure Account is prepared in non-trading concerns in lieu of
Correct : B. Profit and Loss Account
97. General donations of relatively large amount is recorded on the
Correct : D. both b. and c.
98. Match List I (Financial Statements and Accounts) with List II (special matters associated with statements and accounts) and select the correct answer using the codes given below the lists:
List I List II
i) Receipts and Payments Account I. Revenue
ii) Income and Expenditure Account II. Cash
iii) Club subscription received in III. Liability
Advance Account
Codes:(i) (ii) (iii)
Correct : A. II I III
99. From the following information provided, the income from subscription to be shown in the Income and Expenditure A/C for the year ending 31/12/2015 can be calculated at Rs. ______
(i) Subscription received during 2015 : for 2014 – Rs.5,000 for 2015 – Rs.30,000 for 2016 – Rs.6,000
(ii) Subscription received in advance as at 31/12/2014 – Rs.6,000
(iii) Subscription outstanding as at 31/12/2014 – Rs.6,000
(iv) Subscription outstanding as at 31/12/2015 – Rs.4,000
Correct : A. Rs.40,000
100. (i) Salaries as per Income and Expenditure Account Rs.1,500
(ii) Salaries paid in advance in previous year Rs.700
(iii) Salary outstanding at the end of current year Rs.300
(iv) Salary outstanding at the end of previous year Rs.800
From the above information given, the amount of salaries to be shown in Receipts and Payment Account can be valued at