List of practice Questions

Pari, Param, and Prizleen are partners sharing profits and losses in the ratio of 5:3:2. Param retires. Her share is taken by Pari and Prizleen in the ratio of 2:1. Calculate the new profit sharing ratio of Pari and Prizleen.

Loss on realization of 84,000 was to be distributed between Sam and Shafiq (partners) in the ratio of 4:3 at the time of the dissolution of the partnership firm. Calculate the amount to be transferred to Shafiq’s capital account.

Match List-I with List-II.

List-I	List-II
(A) Subscription	(I) Revenue income for the year in which it is received
(B) Endowment Fund	(II) Amount received as per the will of the deceased person
(C) Cash subsidy received from the government	(III) Main source of income of not-for-profit organizations
(D) Legacies	(IV) Fund arising from a bequest or gift

Choose the correct answer from the options given below:

S and T are partners in a firm sharing profits in the ratio of 3:2. They admit U as a new partner. S surrenders \(\frac{1}{4}\) of his share and T surrenders 1/3 of his share in favour of U. Sacrificing ratio of S and T will be:
Choose the correct answer from the options given below:

The adjustment required for overvaluation of closing stock, while calculating adjusted profit for calculating goodwill is:
(A) reduction from concerned years profit.
(B) reduction from next years profit.
(C) addition to next years profit.
(D) addition to previous years profit.
Choose the correct answer from the options given below :

Match List-I with List-II.

List-I	List-II
(A) Test of Activity	(I) Acid Test Ratio
(B) Test of Liquidity	(II) Debt Equity Ratio
(C) Test of Solvency	(III) Debtor Turnover Ratio
(D) Test of Profitability	(IV) Return on Investment Ratio

Which Accounting Standard governs the preparation of Cash Flow Statement?

In case of dissolution of a Partnership Firm, assets of the firm shall be applied in the following order:
(A) Paying unsecured debts of the firm
(B) Paying secured debts of the firm
(C) Paying partner’s loan
(D) Paying partners’ capital
Choose the correct answer from the options given below:

While preparing the Cash Flow Statement, purchase of goodwill is treated as

Identify the correct sequence to be followed while preparing the final account of a partnership firm:
(A) Profit and Loss Appropriation Account
(B) Profit and Loss Account
(C) Trading Account
(D) Balance Sheet

Calculate the resulting cash flow and state the nature of cash flow from the following information:,
Acquired machinery for ₹3,50,000 by issuing cheque.

Oversubscription is a situation where the

Arrange the following steps in the correct sequence of the life of a company:
(A) Commencement of Business
(B) Incorporation
(C) Promotion
(D) Floatation

Calculate the amount of Profit after Tax if:
• Revenue from Operations: 4,00,000
• Cost of Revenue from Operations: \(20\%\) of Revenue from Operations
• Tax rate: \(50\%\)

Plant and Machinery (book value 60,000) was handed over to a Creditor at an agreed valuation of 10% less than the book value. What journal entry will be passed in the books of the firm at the time of dissolution of the firm?

A newly admitted partner acquires two main rights in the partnership firm.
Identify the correct rights of the newly admitted partner.
(A) Right to share assets of the partnership firm
(B) Right to claim interest on capital
(C) Right to claim remuneration for firm’s work
(D) Right to share profits of the partnership firm
Choose the correct answer from the options given below:

Steps in sequence in the preparation of Receipt and Payment Account will be:
1. Find out the difference between the total of debit side and the total of credit side
2. Show the total amounts of all receipts on debit side
3. Take the opening balance of cash in hand and bank and enter on the debit side
4. Show the total amounts of all payments on credit side
Choose the correct answer from the options given below:

The components of computerized accounting system refer to:

Journal entry for recording unrecorded computers at the time of admission of a partner is:

A, B, and C are partners sharing profits in the ratio of 3:2:1. C died on 1st July, 2023. On this date, final accounts were prepared to ascertain profits for the period. It resulted in a profit of ₹1,75,000 to the firm. To give effect to the above

If there is no claim against Workmen Compensation Reserve, it is __________ at the time of admission of a partner
Fill in the blanks with the correct answer from the option given below

Match List-I with List-II

List-I	List-II
(A) Share capital	(I) Will be called at the time of winding up
(B) Reserves and surplus	(II) Calls in advance
(C) Reserve capital	(III) Subscribed but not fully paid
(D) Current liabilities	(IV) Sinking fund

Choose the correct answer from the options given below:

Window dressing is a practice

Match List-I with List-II

List-I (Items of cash flow)	List-II (Type of activity)
(A) Purchase of tangible assets	(I) Operating activity
(B) Issue of shares	(II) Cash and cash equivalents
(C) Increase in current assets	(III) Investing activity
(D) Marketable securities	(IV) Financing activity

Choose the correct answer from the options given below: