List of top Accountancy Questions

The process of receiving minimum subscription of 90% of the entire issue must be completed within _____ days from date of issue of prospectus

Minimum Subscription of capital:

Reserves and Surplus includes:
(A) Statement of Profits and Loss (Credit Balance) 
(B) Reserve Capital 
(C) Securities Premium Reserve 
(D) Capital Redemption Reserve 
(E) Share Application Money Pending Allotment 
Choose the correct answer from the options given below:

The steps in the Process of Preparing Profit and Loss Appropriation account are :
(A) Transfer the net profit to the credit side of P and L Appropriation A/c
(B) Divide the Profit among partners in the Profit Sharing ratio
(C) Ascertain net profit after providing for all charges
(D) Debit the P and L Appropriation A/c with all appropriations like partners salary etc.
(E) Credit the P and L Appropriation A/c with interest on drawing and deficiency on account of partner’s guarantee of earnings to the firm.
Choose the correct answer from the options given below :

Match LIST I with LIST II

LIST I		LIST II
A	Goodwill written off	I	Credit side of Profit and Loss A/c
B	Partner's Salary	II	Debit side of Partner's Capital A/c
C	Bad Debts Recovered	III	Debit side of Profit and Loss A/c
D	Manager's Commission	IV	Credit side of Partner's Capital A/c

Choose the correct answer from the options given below

The common fields used in a relationship between tables are called:

Reconstitution of Partnership means :
A. Change in Profit Sharing Ratio among existing partners
B. Dissolution of Partnership firm
C. Retirement of Partner
D. Admission of Partner
E. Death of Partner
Choose the correct answer from the options given below :

Match List - I with List - II

List - I	List - II
(A) The Accounting basis for Cash Flow Statement is	(II) Cash Basis
(B) Dividend paid on Equity and Preference capital comes under	(IV) Cash outflow from Financing Activities
(C) It cannot be considered as cash and cash equivalents	(I) Investment in shares
(D) It can be classified as cash and cash equivalents	(III) Treasury bills

Choose the correct answer from the options given above:

Company issues 10,000, 12% debentures of ₹ 100 each at par, redeemable at premium of 5% after 5 years. At the time of allotment; journal Entry will be :

Match LIST I with LIST II

LIST I		LIST II
A	Proceeds from Long term borrowings	I	Marketable Securities
B	Purchase of Raw Materials	II	Investing Activities
C	Purchase of New Equipments	III	Operating Activities
D	Purchase of New Equipments	IV	Financing Activities

Choose the correct answer from the options given below

Debentures issued for consideration other than cash includes, debentures :
(A) Issued to bank as additional security
(B) Issued to vendor
(C) Issued to Public
(D) Issued to creditor
(E) Issued for cash
Choose the correct answer from the options given below :

At the time of admission of a new partner, general reserve appearing in the old Balance Sheet is transformed to :-

Book value of stock \(₹ 40,000\). However the stock is found overvalued by \(₹ 4,000/-.\) The amount \(₹ 4,000\) will be:

At the time of dissolution of partnership firm, debtors were realised at a discount of 5% (Book value was ₹ 48,000), Amount realised at the time of dissolution was -

Calculate the Normal Rate of Return if normal profit is ₹30,000, Assets 5,30,000 and liabilities ₹30,000, while calculating the value of goodwill of the firm at the time of admission of a partner. 1. 5.6% 2.6% 3.5.3% 4.5%

Match List I with List II

List I		List II
A.	Super Profit	I.	Actual Average Profit - Normal Profit
B.	Normal Profit	II.	Super Profit × \(\frac{100}{\text{Normal rate of return}}\)
C.	Goodwill	III.	Total Assets - Outside Liabilities
D.	Capital Employed	IV.	\(\frac{\text{Capital Employed × Normal Rate of Return }}{100}\)

Choose the correct answer from the options given below :

As per the Financial Statement of X ltd, its shareholder's funds are ₹ 25,00,000. Non current liabilities are ₹ 4,80,000 and current liabilities are ₹ 10,00,000. Non current assets are ₹ 13,80,000. Working capital of the company is :

Securities premium cannot be used:

P, Q, and R are partners in a firm sharing profits and losses in the ratio of \(3:2:1\). R retires and the balance in his capital A/c after making necessary adjustments works out to be \(₹\ 60,000\). However P and Q agreed to pay him \(₹\ 75,000\) in full settlement of his claim. Then the amount to be debited to P's capital A/c would be: 

From the following Particulars, calculate cash flow from investing activities :-
A plot of land been purchased for investment purpose and was let out for commercial use and rent received ₹ 30,000.
Interest paid on debentures ₹ 60,000
Purchase of Plant ₹ 4,40,000
Goodwill written off ₹ 20,000
Sale of Land ₹ 5,00,000

Which of the following is NOT a way to redeem the debentures?

Calculate Debt equity Ratio :
\(13\%\) Debentures \( ₹6,00,000\) 
Shareholders fund Z \(₹8,00,000\) 
Net Profit before tax \(₹3,51,000 \)
Current Liabilities \(₹1,60,000 \)