Objective Questions

I. MULTIPLE CHOICE QUESTIONS

CHAPTER 1 : Partnership Final Accounts
Q. No. 1 to 5
Trial Balance
Dr.
Debtors
Provision for Doubtful Debts
Bills Receivable
Closing Stock

1.
2.
3.
4.
1.
2.
3.
4.
5.

Cr.

1,15,000
5,000
10,000
45,000
1

20,000 goods sold on Sales or Approval basis. Goods are sold at a profit of 33 3 % on cost half
the goods are approved. About other half no intimation is received.
5,000 Bills Receivable dishonoured.
Of the Debtors 20,000 outstanding for more than six months and 50% of which is bad which is to
be written off.
Create R.D.D. @ 5% on Debtors.
Amount of New Bad debts
(a)
10,000
(b) 20,000
(c)
5,000
How much amount of Sale on Approval to be deducted from debtors?
(a)
20,000
(b) 10,000
(c)
5,000
What is the amount of New RDD?
(a)
10,000
(b) 7,500
(c)
5,000
What is the amount of Closing Stock
(a)
55,000
(b) 52,500
(c)
57,500
How much is the amount Debited to Profit & Loss Account for Bad Debts.
(a)
10,000
(b) 15,000
(c)
5,000
Balance Sheet
Assets
Debtors
Add : B/R Dishonoured

1,15,000
5,000
1,20,000
10,000
1,10,000
10,000
1,00,000
5,000
95,000

Less : Sale on Approval

Profit & Loss Account (Dr. Side)
Old Bad Debts
New Bad Debts
Add : New RDD
Less : Old RDD

10,000
5,000
15,000
5,000
10,000

Less : New Bad Debts

Net Debtors
Less : New RDD
Closing Stock
Add Stock with Customers

45,000
7,500
52,500

Q. No. 6 to 7
Trial Balance
Dr.
Purchases
Carriage Outward
Return Outward
Creditors
Return Inward

Cr.

2,10,000
5,000
2,000
80,000
6,000

6.
7.

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

Adjustments :
1. Goods worth 12,000 received during the year included in the Closing Stock but not recorded in
the Books of Accounts.
2. Goods worth 5,000 distributed as free samples. No entry for the same is passed.
3. Goods worth 4,500 used for the purpose of Extension to Building.
What is the amount of Purchases
(a)
2,05,500
(b) 2,06,500
(c)
2,10,500
What is the amount of Creditors?
(a)
92,000
(b) 1,02,000
(c)
68,000
Q. No. 8 to 10
Trial Balance
as on 31st December, 2007

Plant & Machinery

Furniture
Vehicles

1,00,000
50,000
40,000

Adjustments :
1.
30,000 plant purchased on 1st July, 2007.
2.
8.
9.
10.

Half of the furniture and 4 of the vehicle used for personal purpose.

3. Depreciate plant @ 10% p.a. furniture @ 5% vehicle @ 7.5%

What is the amount of depreciation on Plant and Machinery?
(a)
10,000
(b) 8,500
(c)
9,250
Amount of depreciation on furniture debited to Profit & Loss Account
(a)
2,500
(b) 1,250
(c)
1,875
Amount of depreciation on vehicle debited to Profit & Loss Account
(a)
3,000
(b) 2,500
(c)
2,250
Q. No. 11 to 16
Trial Balance
Dr.

Plant & Machinery at cost

Furniture at cost
Vehicle at cost
Depreciation Provision for plant
Depreciation Provision for furniture
Depreciation Provision for vehicle

11.
12.
13.
14.
15.
16.

Adjustments :
1. Depreciate plant @ 10% on W.D.V.
2. Depreciate furniture @ 10% on straight line basis.
3. Depreciate vehicle @ 10% on Book value.
What is the amount of depreciation on Plant and Machinery?
(a)
10,000
(b) 7,000
(c)
What is the Net Balance of Plant and Machinery?
(a)
70,000
(b) 63,000
(c)
What is the depreciation on furniture?
(a)
5,000
(b) 2,000
(c)
What is the Net value of furniture at the end of the year?
(a)
50,000
(b) 18,000
(c)
What is the amount of depreciation on vehicle?
(a)
2,800
(b) 4,000
(c)
What is Net value of vehicle at the end of the year?
(a)
24,000
(b) 15,000
(c)

Cr.

1,00,000
50,000
40,000
30,000
10,000
12,000

9,000
90,000
4,000
15,000
1,200
25,200

Objective Questions

Q. No. 17 to 21
Trial Balance
as on 31st December, 2007
Dr.
1.
2.

3.
4.

17.
18.
19.
20.
21.
22.

Leasehold Premises purchased on 1st July, 2007

(life 5 years)
Investment in Debentures
Face value 100
(Purchased at 110% of face value)
Loan from Rajan
(at 8% p.a. 1-10-07)
Loan given to Rahul)
(1-7-07 Rate 10% p.a.)

Cr.

50,000
33,000

60,000
80,000

Leasehold premises written off during the year.

(a)
5,000
(b) 2,500
(c)
3,750
Leasehold premises value in Balance Sheet
(a)
45,000
(b) 47,500
(c)
46,250
Amount of Interest receivable on Investment in Debentures
(a)
2,700
(b) 2,970
(c)
2,870
Amount of Interest Payable to Rajan
(a)
4,800
(b) 2,400
(c)
1,200
Amount of Interest Receivable from Rahul.
(a)
8,000
(b) 6,000
(c)
4,000
Calculate closing stock
Closing stock as on 31st December, 2007 :
Cost 60,000, Market value 58,000 Above stock includes 5,000 goods received on consignment,
9,000 goods sent on consignment and 8,000 goods lying with the Branch not included :
(a)
70,000
(b) 72,000
(c)
75,000
Q. No. 23 to 25
Trial Balance as on 31st December, 2007
Dr.
Rent ( 2,000 P.M.)
Insurance

23.
24.
25.

26.
27.
28.
29.

Cr.

20,000
4,000

Adjustment :
Insurance Includes 2,000 paid for the year ended 31st March, 2008.
Amount of rent debited to Profit & Loss Account
(a)
20,000
(b) 24,000
(c)
22,000
Amount of Insurance debited to Profit & Loss Account
(a)
4,000
(b) 3,500
(c)
3,000
Amount of prepaid insurance shown in the Balance Sheet
(a)
1,000
(b) 500
(c)
2,000
Q.No. 26 to 28
10,000 worth of goods lost by fire. Under following situations how much amount should be debited to
Profit & Loss Account.
Goods are not insured
(a)
Nil
(b) 10,000
(c) None
Insurance company accepted the claim of 75% of the value.
(a)
7,500
(b) 10,000
(c)
2,500
Insurance company accepted the full claim
(a)
Nil
(b) 10,000
(c) None
Goods lying in stock 10,000 insured for 8,000; 5,000 goods lost by fire Insurance Co. accepted
the claim
(a)
4,000
(b) 5,000
(c)
8,000

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

30.
Trial Balance
as on 31st December, 2007
Dr.
Wages paid
Outstanding Wages 2006

31.

Cr.

60,000
4,000

Adjustment :
Wages paid includes
3,000 paid for instalation of Plant and Current Year Outstanding wages is
3,000. Calculate the amount of wages.
(a)
60,000
(b) 63,000
(c)
56,000
What is the amount of wages outstanding for the year?
(a)
7,000
(b) 4,000
(c)
3,000

32.
Trial Balance
Dr.
Sales
(Includes in the above

Cr.
3,10,000

5,000 sale of vehicle)

Adjustment :
Goods despatched during the year amounted to
amount of sales will be :
(a)
3,25,000
(b) 3,20,000

15,000 but invoice was not entered. During the year

(c)

3,05,000

33.
Trial Balance
as on 31st December, 2007
Dr.
Return Outward
Purchases
Return Inward

34.

35.

36.

Cr.
5,000

5,60,000
10,000

Purchases includes 10,000 purchase of furniture. Calculate purchases.

(a)
5,40,000
(b) 5,50,000
(c)
5,45,000
If sales are 5,00,000 and cost of goods sold is 3,50,000 and operating expenses are 50,000, the Gross
Profit will be :
(a)
1,50,000
(b) 1,00,000
(c)
4,50,000
(d) 3,00,000
Q.No. 34
If sales are 4,000 and the rate of G.P. on cost of goods sold is 25%. Then the cost of goods sold will
be :
(a)
3,200
(b) 30,000
(c)
2,000
(d) None
Q.No. 35
Operating stock is 90,000, Closing stock is 45,000. The company purchases
1,65,000 on credit.
During the year the company paid 1,75,000 to the suppliers. The goods are sold at 25% above cost.
The sales for the year will be :
(a)
3,62,000
(b) 2,62,500
(c)
3,40,000
(d) None

37.
Trial Balance
as on 31st December, 2007
Dr.
Investment in 6% Debentures
(Interest is payable on 31st March & 30th September)
Interest on Investments

Amount of accrued interest on 31st Dec., will be :

(a)
2,000
(b) 450
(c)
1,800

Cr.

30,000
9,000

(d)

900

Objective Questions

38.
39.
40.
41.
42.

43.
44.
45.
46.
47.
48.

49.

50.

51.

Q.No. 38 to 42
Calculate Interest on drawing of Vipul @ 12% p.a. for the year ended 31-12-07 in each of the following
alternatives
If drawing during the year were 36,000
(a)
1,980
(b) 2,160
(c)
2,340
If he withdrew 3,000 p.m. in the beginning of every month.
(a)
1,980
(b) 2,160
(c)
2,340
If he withdrew 3,000 p.m. at the end of every month.
(a)
1,980
(b) 2,160
(c)
2,340
If he withdrew 2,500 p.m.
(a)
1,950
(b) 1,800
(c)
1,650
If he withdrew the following amount as follows :
Jan. 31st
10,000, 1st April 6,000, 1st Aug. 4,000
1st Oct.
5,000, 1st Nov. 7,000
(a)
1,990
(b) 2,000
(c)
2,190
Q.No. 43 to 48
Saurabh and Rishab started business with capital of 3,50,000 and 2,50,000. Calculate Interest on
drawing of Saurbh @ 10% p.a. for the year ended 31st December, 2007 in each of the following
alternatives
If his drawing during the period were 12,000
(a)
450
(b) 600
(c)
550
If he withdrew 1,500 p.m. in the beginning of every month
(a)
900
(b) 975
(c)
825
If he withdrew 1,500 at the end of every month.
(a)
900
(b) 975
(c)
825
If he withdrew 9,000 in the beginning of every quarter
(a)
2,250
(b) 2,500
(c)
2,000
If he withdrew 9,000 at the end of every quarter
(a)
1,500
(b) 1,350
(c)
1,200
Calculate the Interest on drawing of Piran @ 10% p.a. for the year ended 31st December, 2007 if he
withdrew 6,000 during the middle of each quarter
(a)
1,100
(b) 1,200
(c)
1,300
Raveena & Kareena started business on 1st January, 2006 with capital of 4,00,000 and 3,00,000
respectively. There is no withdrawal or addition of capital during the year. Calculate Interest on capital
@ 10% p.a. Accounts are closed on 31st December.
Raveena
Kareena
Raveena
Kareena
(a)
40,000
30,000
(b)
1,800
40,000
Raveena
Kareena
(c)
35,000
35,000
Raveena & Kareena started business on 1st July, 2006; with capital
4,00,000 and
3,00,000
respectively. There is no withdrawal or addition of capital during the year. Calculate Interest on Capital
@ 9% p.a. If books of accounts are closed on 31st March every year.
Raveena
Kareena
Raveena
Kareena
(a)
27,000
20,250
(b)
36,000
27,000
Raveena
Kareena
(c)
30,000
24,000
A and B started business on 1st January, 2006 with capital 6,00,000 and 4,00,000 respectively. On
1st April, A introduced in addition capital 1,50,000 and B withdraw 1,00,000 from his capital.
On 1st July, A withdraw 2,00,000 from his capital B introduced 1,50,000 on his capital Interest on
capital @ 12% p.a. Calculate Interest on Capital for the year ended 31st December.
A
B
A
B
(a)
74,500
50,000
(b)
73,500
48,000
A
B

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

(c)

71,500

46,000

3
12

7,50,000 100

3
12

6,00,000

12
100

18,000
12

22,500
5,50,000
52.

12
100

54.

55.

56.

12

3,00,000 100 12
9,000

6
12

12

3,00,000 100 12
33,000
27,000
Ritu & Nitu started business on 1st April, 2006 with capital of 3,00,000 and 2,00,000 respectively.
On 1st Oct. they decided that their capital should be 2,50,000 each. The necessary adjustments in the
capital were made by Introducing or withdrawing cash. Interest on capital is allowed at 9% p.a.
Calculate Interest on capital as on 31st March, 2007.

3,00,000 100 12
13,500

53.

12

4,00,000 100 12
12,000

2,00,000 100 12
9,000

2,50,000 100 12
11,250
13,500 + 11,250
9,000 + 11,250
24,750
20,250
Ritu
Nitu
(a)
24,750
20,250
Ritu
Nitu
(b) 24,000
20,000
Ritu
Nitu
(c)
22,000
18,000
X and Y are parnters in a firm. X is to get a commission of 10% of Net Profit before charging any
commission. Y is to get commission of 10% on Net Profit after charging all commission. Net Profit
before charging any commission was 1,21,000. Find out the commission of A and B.
A
B
(a)
12,100
9,900
A
B
(b) 12,100
10,890
A
B
(c)
12,100
1,10,000
Q.No. 53 to 54
Amar and Bimal are partners. They do not have any partnership agreement (partnership deed) what
should be done in the following cases :
Amar spends twice time that Bimal devotes to business. Amar claims that he should get 3,000 per
month for his extra time spent.
a) Amar is entitled to salary of 3,000 p.m.
b) Amar is entitled to half of salary of clerk.
c) Amar is not entitled to any salary
Bimal has provided capital of 1,00,000 whereas Amar has provided 50,000 only as capital. Amar
however, has provided 10,000 as loan to the firm. What Interest (if any) will be given to Amar and
Bimal.
a) Amar is entitled to claim Interest on his loan at 10,000 @ 6% p.a. and Bimal Nil.
b) Bimal 6,000 Amar 3,600
c) Amar Nil
Bimal Nil
In absence of any agreement partners are entitled to receive interest on their loans.
(a) 15%
(b) 10.5%
(c) 6%
(d) 8.5%

Objective Questions

57.

58.

59.

60.

61.

62.

63.

64.

65.

66.

67.

68.

69.

70.

A partner acts as an
a) Agent
c) Third party
b) Employee
d) None of the above
Relationship between the persons who have agreed to share profits of business is known as
a) Partnership
c) AOP
b) J.V
d) Body of Individuals
In the absence of an agreement partners are entitled to
a) Commission
c) Interest on Loans
b) Salary
d) Share of profit in Capital ratio
If provided in the agreement interest on capital will be paid to partners out of
a) Future profits
c) Accumulated profit
b) Current profits
d) Goodwill
In case a partner is given guarantee loss in such guarantee is borne by those
a) who guaranteed
c) All other partners
b) partnership
d) partners with highest profit sharing ratio
Interest on Drawings is recorded in
a) Credit side of Profit and Loss appropriation A/c
b) Debit side of Profit and Loss appropriation A/c
c) Debit side of Profit and Loss A/c
d) None of the above
Partners current A/c may have
a) Debit balance
c) a or b
b) Credit balance
d) None of the above
In absence of any agreement profits and losses are shared in
a) Equal ratio
b) Capital ratio
c) Loan ratio
d) None of the above
Interest on capital is
a) an appropriation
b) an expenditure
c) a gain
d) None of the above
Fixed capital A/c is credited by
a) Salary of the partners
b) Interest on capital
c) Share of profit of the year
d) None of the above
Fluctuating Capital A/c is credited by
a) Salary of the partners
b) Interest on capital
c) Share of profit for the year
d) All of the above
Partners Drawing A/c is closed by transfer to
a) Partner's capital A/c
b) partner's current A/c
c) Either a or b
d) None of the above
In absence of agreement partners are entitled to
a) Interest on loan
b) Salary
c) Interest on capital
d) Share of profit in capital ratio
Partners capital A/c generally shows
a) Debit balance
b) Credit balance
c) Either of a or b
d) None of the above

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

CHAPTER 2 : Piecemeal Distribution of Cash

1.

2.

3.

4.

5.

6.

7.

8.

If there are four liabilities e.g. creditors 10,000 Bills Payable 5,000, outstanding expenses 10,000,
other loan 5,000 and cash available is 15,000.
a) First pay 10,000 to creditors and Rs. 5,000 to Bills Payable.
b) First pay 10,000 to outstanding expenses and 5,000 to other loan.
c) Pay 5,000, 2,500, 5,000, 2,500 in Due Ratio 2 : 1 : 2 : 1.
For finding unit value capital is divided by
a) Profit Sharing Ratio.
b) Capital Ratio.
c) None of above.
After finding the unit value of three partners A, B and C we select the unit value
a) Which is lowest.
b) Which is highest.
c) Average.
Unit value we multiply with each one's
a) Profit Sharing Ratio.
b) Capital Ratio.
c) Average.
Bank Overdraft
Partners Loan
10,000
X Loan 10,000
Y Loan 10,000
Cash available is 15,000. How would you distribute?
a) Pay Bank overdraft 10,000, Balance 2,500 each to X loan and Y loan.
b) Pay all three 5,000 each.
c) Pay 10,000 Bank overdraft and Rs. 5,000 to X loan.
Bank loan is 30,000 secured against stock and stock sold for 25,000, Balance 5,000 is
a) Secured.
b) Unsecured.
c) None of above.
If Bank loan 50,000; Bank overdraft is 25,000, Bills Payable 15,000; creditors 10,000; Bank
loan is secured against Land & Building. Bank overdraft is against stock.
Assets Realised Bills Receivable 50,000.
a) Pay Bank loan 50,000.
b) Pay Bank overdraft 25,000; Bills Payable 15,000; 10,000 to creditors.
c) Pay in due ratio 10 : 5 : 3 : 2.
If X loan 12,000 and Y loan is 8,000. Both are partners. Profit Sharing Ratio is 5 : 4. Cash available
9,000. How would you pay?
a)
5,400 to X loan, 3,600 to Y loan.
b)
5,000 to X loan, 4,000 to Y loan.
c)
9,000 to X loan.

9.

Balance Sheet

Liabilities
Capitals :
Patel
Shah
Desai
General Reserve
Capital Reserve
Creditors

a)

30,000
40,000
50,000

1,20,000
20,000
10,000
60,000
2,10,000

Assets
Fixed Assets
Cash Balance
Deferred Advertisement
Expenditure
Profit & Loss

Which partner is having ultimate excess

(i) Patel
(ii) Shah
(iii) Desai
b) Which two partners get second preference
(i) Patel, Shah
(ii) Patel, Desai
(iii) Shah, Desai

1,60,000
20,000
20,000
10,000
2,10,000

Objective Questions

10.

9
Balance Sheet

Liabilities
Creditors
Capitals :
X
Y
Z

Assets
10,000
30,000
25,000
20,000
85,000

Cash
Other Assets
Current A/c
X
Y

5,000
77,000
2,000
1,000

3,000
85,000

a)

Which partner is having ultimate excess

(i) X
(ii) Y
(iii) Z
b) Which two partners get second preference
(i) Y, Z
(ii) X, Y
(iii) X & Z
11.

Balance Sheet
Liabilities

Capitals :
Reema
Reena
Ritu (minor)

12.

13.

14.

15.

16.

17.

Assets
6,00,000
4,00,000
2,00,000
12,00,000

Fixed Asset
Cash

11,00,000
1,00,000
12,00,000

Profit sharing ratio is 2 : 2 : 1

a) Which partner should be paid first
(i) Reema
(ii) Reena
(iii) Ritu
b) Which partner is having ultimate excess
(i) Reema
(ii) Reena
(iii) None
c) While calculating excess capital you have to consider
i)
All the three partners
ii) Reema, Reena only
iii) Reema and Ritu only
East, West and South are partners sharing in the ratio of 3 : 3 : 2. Their capitals are 24,000, 15,000
& 9,000 respectively. Which partner has ultimate surplus.
(i) East
(ii) West
(iii) South
Contingency Reserve is 20,000 and contingent liability is 18,000. How would you deal with the
remaining contingency Reserve.
a)
2,000 should be distributed among the partners in their profit sharing ratio.
b)
20,000 should be distributed among the partners in capital ratio.
c)
18,000 should be distributed among the partners equally.
Realisation of assets on dissolution is
a) Sudden
b) Creditors
c) Unexpected
External liabilities are liabilities due to
a) Partners
b) Creditors
c) None
Employees dues are
a) Preferential liabilities
b) Contingent liabilities
c) External liabilities
Contingent liabilities are the liabilities which are
a) Contingent on happening of certain event in future
b) Fixed liabilities
c) Current liabilities

10

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

Preferential liabilities are

a) Payable to creditors
b) Payable to government
c) Payable to partners
Partners loan is
a) Internal liability
b) External liability
c) Secured liability
Take over of liability by a partner is
a) Added to capital of a partner
b) Deducted from capital of a partner
c) Neglected
General Reserve should be
a) Distributed in profit sharing ratio
b) Distributed in capital ratio
c) Not distributed among the partners
Profit & Loss Account debit balance should be
a) Deducted from Capitals
b) Added to Capitals
c) Transferred to Realisation Account
Relisation A/c is prepared in case of
a) Admission
b) Retirement
c) Death
d) Dissolution
Bills under discount is a
a) Contingent liability
b) Non-current liability
c) Current liability
d) Fixed liability
After payment of outside liabilities
a) Govt. dues should be paid
b) Partner's loan should be paid
c) Partner's capital should be paid
d) Expenses should be paid
After payment of partners loan payment should be made to
a) The partner having surplus capital
b) The partner having deficiency
c) Govt. Loan
d) Secured Loan
In case an asset of a firm purchased by any partner
a) Partners capital should be debited
b) Agreed value should be distributed among all the partners.
c) Book value should be distributed among all the partners
d) None of the above
The amount finally left unpaid on partner's capital account should be in
a) Capital ratio
b) Profit sharing ratio
c) Equally
d) Ratio of drawings

Objective Questions

29.

30.

31.

32.

33.

34.

35.

36.

37.

38.

11

Government dues payable by the firm on the date of dissolution is treated as

a) Secured creditors
b) Unsecured creditors
c) Preferential creditors
d) None of the above
Employees dues payable on the date of dissolution is treated as
a) Secured creditors
b) Preferential creditors
c) Unsecured creditors
d) None of the above
Unsecured creditors are paid in the following order
a) Employees dues, Government dues, other dues
b) Government dues, employees dues, other dues
c) All creditors proportionately
d) All of the above
In case cash is not sufficient to pay all partners loans, payment is made
a) Capital ratio
b) Profit sharing ratio
c) Ratio of unpaid loans
d) None of the above
The firm has taken loan from Dena bank 3,00,000 which is partly secured by stock of 1,50,000
which realised 2,50,000
a)
50,000 is treated as unsecured creditors
b)
1,50,000 is treated as secured creditors
c)
1,50,000 is treated as preferential creditors
d) None of the above
Excess capital method is also known as
a) Surplus capital method
b) Maximum loss method
c) Notional loss method
d) None of the above
Maximum loss method is also known as
a) Notional loss method
b) Highest relative capital method
c) Surplus capital method
d) None of the above
In piecemeal distribution liabilities of a firm are paid before
a) Distribution of cash among the partners.
b) Sale of asset
c) Revaluation of assets
d) None of the above
Any reserve in the Balance sheet on the date of dissolution should be distributed among the partners in
a) Equal ratio
b) Capital ratio
c) Loan ratio
d) None of the above
If the amount received from sale of asset is not sufficient to pay fully the firm's liabilities the
deficiencies should be borne by the partners in
a) Profit sharing ratio
b) Capital ratio
c) Loan ratio
d) None of the above

12

39.

40.

41.

42.

43.

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

X, Y, Z are the three partners having capitals of 30,000, 36,000 and 18,000. The profit sharing
2 2 1
ratio is : : Under surplus capital method the capital considered as base is
5 5 5
a) X
b) Y
c) Z
d) X and Y
Monika, Sonika , Ronika are partners sharing Profits and Losses in the ratio of 2:1:1 their Capitals are :
Monika
40,000
Sonika
10,000
Ronika
5,000
Reserve fund
8,000
Contingency Reserve
6,000
Loan :
Sonika
6,000
Ronika
4,000
On the date of dissolution contingent Liability was 2,000 Realisation expenses
is considered as a base for calculation of surplus capital.
a) Sonika
b) Monika
c) Ronika
d) None
The adjusted capitals of the partners will be
a)
46,000, 13,000, 8,000
b)
50,000, 26,000, 7,000
c)
44,000, 12,000, 7,000
c)
42,000, 11,000, 6,000
The ultimate surplus will be
a) Monika 20,000
b) Sonika 5,000
c) Ronika 8,000
d) None of the above
Cash available for payment to creditors on the date of dissolution is
a)
2,000
b)
3,000
c)
1,000
d)
500

CHAPTER 3 : Amalgamation of Partnership Firms

1.

2.

3.

Amalgamation is
a) Merger of businesses
b) Dissolution of firms
c) None
Purchase consideration is the amount
a) Payable by new firm to old firm
b) Payable by old firms to partners
c) Payable by one firm to another firm.
Assets are transferred to Realisation A/c at
a) Book value
b) Market value
c) Cost

2,000. Whose capital

Objective Questions

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

Excess of credit over debit side of Realisation Account is

a) Profit on Realisation
b) Loss on Realisation
c) Surplus
Liabilities assumed by partners are
a) Debited to Realisation Account
b) Debited to Revaluation Account
c) Debited to Partners' Capital Account
Realisation expenses are
a) Debited to Bank Account
b) Debited to Realisation Account
c) Credited to Capital Account
Take over of asset by a partner is debited to
a) Realisation Account
b) Partners' Capital Account
c) Bank Account
Excess of Net Assets over Purchase Consideration is
a) Capital Reserve
b) Goodwill
c) Capital
Goodwill written off is debited to
a) All partners Capital Account
b) Goodwill Account
c) Realisation Account
Profit or loss on Realisation is distributed among the partners in
a) Profit sharing ratio
b) Capital Ratio
c) Claim Ratio
Purchase consideration is calculated by
a) Net payment method
b) Net Asset method
c) Either a or b
Amalgamation is dealth with by
a) AS 14
b) AS 16
c) AS 18
Realisation A/c is opened when amalgamation is accounted by
a) Revaluation method
b) Realisation method
c) Either a or b
On amalgamation of firms, Realisation A/c is opened in the books of
a) Vendor firm
b) Purchasing firm
c) Both the firms
d) None of the above
On amalgamation of firms the A/c opened in the books of a vendor firm is
a) Realization A/c
b) Profit and Loss Adjustment A/c
c) Revaluation A/c
d) Amalgamation Adjustment A/c
On amalgamation of firms fictitious assets of the vendor firm are transferred to
a) Revaluation A/c
b) Realisation A/c
c) Profit and Loss Appropriation A/c
d) Capital Accounts of partners

13

14

17.

18.

19.

20.

21.

22.

23.

24.

25.

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

On amalgamation of firms partners loans of vendor firm are transferred to

a) Capital Accounts
b) Revaluation A/c
c) Purchasing firm's A/c
d) None of the above
On amalgamation of firms, accumulated profits of old firm are distributed to
a) Old partners in old ratio
b) Old partners in new ratio
c) New partners in New ratio
d) None of the above
On amalgamation liabilities not taken over by the new firm are transferred to
a) Capital Accounts of partners
b) New firm's A/c
c) Revaluation A/c
d) None of the above
On amalgamation of firms profit or loss on sale of firm is determined by preparation of
a) Realisation A/c
b) Profit and Loss Appropriation A/c
c) Revaluation A/c
d) None of the above
On amalgamation of firms goodwill of both the firms is
a) Ingored
b) Valued separately
c) Valued at cost
d) None of the above
Deferred Revenue expenses in Balance sheet of amalgamating firms are transferred to
a) Capital A/cs of partners
b) Loan A/cs of partners
c) Realisation A/c
d) Revaluation A/c
On amalgamation dissolution expenses of the vendor firm paid by purchasing firm are debited to
a) Goodwill A/c in the books of purchasing firm
b) Partners capital A/cs in New ratio
c) Vendor firm's A/c in the books of purchasing firm
d) None of the above
In case these is a provision for doubtful debt against debtors such debtors should be transferred to
Realisation A/c at
a) Current value
b) Gross value
c) Net value
d) None of he above
On amalgamation dissolution expenses paid by the vendor firm are debited to
a) Realisation A/c
b) Revaluation A/c
c) Capital A/cs
d) None of he above

CHAPTER 4 : Accounting with the Use of Accounting Software

1.

A cost centre is the unit of the organisation where

a) Cost is incurred
b) Income is generated
c) Profit is generated
d) All of the above

Objective Questions

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

A profit centre has control over

a) Cost
b) Revenue
c) Profit
d) All of the above
An Investment centre has control over
a) Cost & Revenue
b) Profit
c) Investment
d) All of the above
Steps to create cost centre involves
a) Gateway to Tally
A/c Info. cost category
single
b) A/c Info.
cost category
c) Cost category
Single
Create
d) All of the above
To alter cost category
a) Gateway to Tally
A/c Info.
Cost Category
b) Select the cost category from Pop up list
c) Select the cost category from cost records
d) Both a & b
Select the inventory Info option to
a) To learn the features related to Inventory management
b) To record inventory
c) To control inventory
d) All of the above
To create multiple stock groups the steps include :
a) Gateway of Tally
Inventory info
Stock groups
b) Inventory Info
Stock groups
c) Inventory info
Gateway of Tally
d) None of the above
The various costing methods in the pop up menu include :
a) LIFO
b) Standard cost
c) Monthly Average cost
d) All of the above
In last purchase cost method inventory is valued at
a) Past cost
b) Latest price
c) Future price
d) Average price
The lowest level of information on inventory
a) Stock item
b) Stock group
c) Stock category
d) None of the above
The highest level of information on inventory
a) Main stock category
b) Stock item
c) Primary stock group
d) None of the above

15

create

Multiple

create

16

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

Opening balance details are to be entered while creating

a) Stock item
b) Stock category
c) Stock group
d) None of the above
Consumption of goods is entered in
a) Stock Voucher
b) Stock Journal
c) Receipt Note
d) Issue Note
To display list of inventory in tally the key pressed is
a) F7
c)
F9
b) F10
d) F12
To select a company in tally the key pressed is
a) F1
c)
F3
b) F2
d) F4
For changing the date of voucher the key pressed in tally is
a) Ctrl + F2
c)
F2
b) F4
d) ctrl + F4
In tally default godown name is
a) Main
b) Primary
c) Warehouse
d) None of the above
In tally the key pressed for stock journal entry is
a) Alt + F7
c)
F7
b) F11
d) F10
The main options for all the masters in tally are
a) 2
c)
4
b) 3
d) 5
In tally default stock category is
a) Basic
b) Main
c) Primary
d) None
In Tally ERP of following is not a pre defined voucher
a) Journal voucher
b) Profit voucher
c) Purchase voucher
d) Contra voucher
In Tally ERP a voucher passed for Inter-godown Transfer is
a) Transfer voucher
b) Transfer Journal
c) Stock Journal
d) Journal voucher

Objective Questions

17

II. STATE WITH REASONS WHETHER THE FOLLOWING

STATEMENTS ARE TRUE OR FALSE.
CHAPTER 1 : Partnership Final Accounts
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.

Final accounts are prepared at the end of each accounting year.

Net Profit is deducted from Capital.
Drawings are added to Capital.
Excess of Income over expenditure is net profit.
Capital Account always shows a credit balance.
Balance Sheet is prepared to show financial position of the business concern.
Assets must be equal to liabilities.
Excess of assets over liabilities is capital.
Purchase of machinery is shown in Trading Account on debit side.
Final Accounts must be prepared after considering the adjustments.
Every adjustment must be recorded twice.
Outstanding wages is a Nominal Account.
Income earned but not received is a liability.
Income received, but not earned is an asset.
Closing stock is valued at Cost Price or Market Price whichever is more.
Each partner has a right to take part in the conduct of the business of a firm.
There is no maximum limit to the number of partners in a firm.
Interest allowed on partners' capitals is debited to Profit & Loss Account and credited to Partners'
Capital Accounts.
Sleeping partner is one who takes active part in the conduct of the business.
Adjustment to partners' capital are passed through current accounts when the capitals are
fluctuating.
Interest on capital of a partner is debited to Profit & Loss Account.
Interest on drawings is an income to the partnership firm.
According to Indian Partnership Act, the partners are entitled to earn interest @ 6% p.a. on their
respective capitals.
Interest on partners loan is debited to P & L App. A/c.
General Reserve appears in the Balance Sheet on liability side.
Goodwill appears in the Balance Sheet on asset side.
Unproductive wages are debited to P & L A/c.
Carriage is debited to trading A/c.
Loss by fire is debited to P & L A/c.
As per partnership Act, partners should get interest on capital.
Balance sheet is an A/c which shows business results.
Unexpired insurance is an asset.
Partnership is a trading concern.
Capital Accounts always show a Debit balance
Each partner has a right to take part in business.
Partners are entitled to remuneration.
Partners must share profits and losses equally.
Under fixed capital method capital balance fluctuates..
Under Fluctuating capital method capital balance remains constant.
Purchase of computer is shown in trading A/c.
Partner's liability is unlimited.
Outstanding salary is a personal A/c.
Outstanding rent is a Nominal A/c
Agreement among the partners is for conduct of lawful business.
Partners current A/c may show debit balance.

18

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.

Closing stock is valued at cost or M. P. whichever is less.

Drawing A/c is transferred to partner's Loan A/c
Sleeping partner does not take active part in business.
Indian partnership Act is in force since 1949.
Interest on drawings is a loss to partnership.
It is compulsory for a partner to contribute capital in business.
Income received in advance is a liability.
A partner cannot carry competitive business.
Total Assets need not be equal to Total liabilities.
Reserve for discount on creditors shows a Debit balance.
Reserve for Bad Debt shows a credit balance.
Profit and Loss A/c shows Revenue expenses and incomes.
In absence of any agreement profits and losses are shared by partners in capital ratio.
Expenses relating to purchases are debited to Trading A/c.
Expenses relating to sales are debited to Profit and Loss A/c.

CHAPTER 2 : Piecemeal Distribution of Cash

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Realisation of assets is sudden.

Liabilities due to outsiders are internal liabilities.
Govt. due are paid on preference basis.
Excess capital method is known as maximum loss method.
General Reserve is distributed among the partners in their capital ratio.
Unpaid balance on capital accounts represents profit on realisation.
Take over of liability by a partner should be deducted from capital account balance.
Bill under discount is a contingent liability.
Loss on realisation should be distributed among the partners in their capital ratio.
Unpaid salaries of employees is a preferential liability.
General Reserve is debited to partners capital accounts.
In practice assets are realized gradually.
Excess capital method is known as Highest Relative Capital method.
Asset taken over by a partner is debited to his Capital A/c.

CHAPTER 3 : Amalgamation of Partnership Firms

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Amalgamation is merger of businesses.

On amalgamation old firms are dissolved.
Objective of amalgamation is to increase profitability of firms.
AS 16 deals with amalgamation.
Realisation Account is opened to implement amalgamation.
Loss on Realisation Account is credited to Partner's Capital Account.
Realisation expenses are debited to Bank Account and credited to Realisation Account.
Goodwill requires special treatment on amalgamation.
Capital accounts of partners are adjusted through Cash Account only.
Purchase consideration is amount payable by new firm to old firms.
AS 14 recognises Realisation method only
Profit and Loss Appropriation A/c is prepared on amalgamation.
On amalgamation Goodwill of both the firms is not considered.
Profit or loss on Realisation in case of amalgamation is transferred to capital accounts in profit
sharing ratio.
15. On amalgamation of firms, fictitious assets of old firms are debited to capital Accounts.
16. On amalgamation of firms, fictitious assets of old firms are debited to capital Accounts equally.

Objective Questions

19

CHAPTER 4 : Accounting with the Use of Accounting Software

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.

Receipt Note voucher is used to record receipt of new stock.

Rejection in voucher is used to record issue of stock.
Rejection in voucher is used to record goods returned by a customer.
Delivery Note voucher is used to record delivery of goods to customers.
Rejection out voucher is used to record return of rejected goods to supplier.
Stock journal voucher is used to record transfer of stock from one location to another location.
Physical stock voucher shows stock physically received.
Manufacturing Journal is used by trading companies.
Expiry date can be a date prior to the voucher date.
Batch voucher is a list of all vouchers for a particular stock item of the same batch.
Sorting method is used to sort the report alphabetical.
The lowest level of information on inventory is stock group
The highest level of information on inventory is primary stock group.
Consumption of goods is entered in stock voucher.
F1 is the key pressed to select a company in Tally.
In Tally the key pressed for stock journal entry is F7
There are 3 main options for all the masters in Tally.
In Tally Default stock category is primary.

III. MATCH THE FOLLOWING COLUMNS.

CHAPTER 1 : Partnership Final Accounts
Group 'A'

Group 'B'

1. Trading Account

a) Balance Sheet

2. A Statement of Assets and Liabilities

b) Profit & Loss Appropriation Account

3. Account showing distribution of Profit & c) Gross Profit

Loss among the partners
4. Unsold Stock at the end of the year

d) Closing Stock

5. Prepaid Expenses

e) Asset Side
f) Liability Side

Group 'A'
Group 'B'
1. Intangible Asset
a) Bad Debt
2. Debts Irrecoverable
b) Fixed Liabilities
3. Liabilities which are to be repaid after a c) Goodwill
long period
4. Assets held temporarily
d) Floating Assets
5. Income due but not received
e) Outstanding Income
6. Reserve Fund
f) Depreciation
7. Closing Stock
g) Loss of goods by fire
h) Accumulated Profit
i) Closing Balance of Stock

20

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

CHAPTER 2 : Piecemeal Distribution of Cash

1.
2.
3.
4.
5.
6.
7.
8.

Group 'A'
Mortgage Loan
Govt. dues
Bank Overdraft
Contingent Liability
Partners capital
Balance left unpaid in capital A/c
Surplus Capital
Current A/c debit balance

a)
b)
c)
d)
e)
f)
g)
h)
i)

Group 'B'
Insolvency
Should be deducted from capital
Loss on Realisation
To be paid last
Bill receivable discounted
Secured Loan
Preferential Liabilities
Unsecured
Highest Relative capital
method

CHAPTER 3 : Amalgamation of Partnership Firms

Group 'A'

Group 'B'

1.
2.
3.
4.

Amalgamation
AS 14
Purchase Consideration
Profit on Realisation

a)
b)
c)
d)

5.
6.
7.

Loss on Realisation
Accumulated profit
Payment of Realisation expenses

e)
f)
g)
h)

Debited to partners capital A/c

Credited to partners capital A/c
Deals with amalgamation
Amount agreed to be paid
purchasing firm to vendor firm
Credited to partners capital A/cs
Management of businesses
Debited to Realisation A/c
Credited to Realisation A/c

CHAPTER 4 : Accounting with the Use of Accounting Software

Group 'A'
1.
2.
3.
4.
5.
6.

Receipt Note Voucher

Std. Cost
Market Value
Godown
Rejection out Voucher
Manufacturing Journal

Group 'B'
a)
b)
c)
d)
e)
f)
g)

Market value of stock

Pre- determined value
A place to stock
Record return of rejected goods
Manufacturing Industry
Record receipt of new stock
Average price

IV. FILL IN THE BLANKS WITH SUITABLE WORDS.

CHAPTER 1 : Partnership Final Accounts
1.
2.
3.
4.
5.
6.
7.
8.

Bad debts is a _____.

Trading Account shows either _____ or _____.
Gross profit is carried to _____ Account.
Net profit is divided between the partners in their _____ ratio.
Carriage Inward is debited to _____ Account.
Whereas carriage outward is debited to _____ Account.
Royalty on production is debited to _____ Account.
Interest on capital is added to _____.

by

Objective Questions

21

9. Current Account showing debit balance is shown in the Balance Sheet on _____ side.
10. The balance of the drawings account of a partner is transferred to his _____ Account under the
fixed capital method.
11. When all adjustments regarding salary, commission, interest on capital etc. are made to capital
accounts only, the method is known as _____ Capital Method.
12. The liability of the partners in a firm is _____.
13. The interest on capital of a partner is debited to _____.
14. Goodwill is an _____ assets.
15. The interest on drawings of a partner is credited to _____.
16. When the balances of capitals of partners in a partnership change every year, it is known as _____
Capital Method.
17. Debit balance of Current Account of a partner will appear on the _____ side of the Balance Sheet.
18. _____ is an intangible asset.
19. Gross profit is transferred to _____ Account.
20. Income received in advance is shown on _____ side of Balance Sheet.
21. When partner's capitals are fixed, interest on capitals is credited to _____ Accounts.
22. Capital balances of partners go on changing, when Capital Accounts are maintained on _____ basis.
23. Royalty on sale is shown in _______.
24. Interest on drawings is credited to _______.
25. Wages & salaries is debited to ________.
26. Productive wages are debited to _______.
27. Unproductive wages are debited to ________.
28. Unearned income is shown as a ________ in Balance Sheet.
29. Expenses payable are shown on ________ side in Balance Sheet.
30. Net profit is transferred to _______ _______.
31. Share of loss is _______ to partners capital A/c.

CHAPTER 2 : Piecemeal Distribution of Cash

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

Realisation of assets is ______.

Liabilities due to outsiders ______.
Liabilities due to partners ______.
Govt. dues are ______ liabilities.
Creditors not secured by assets are ______.
Excess capital method is known as ______ method.
Undistributed profit is distributed among the partners in their ______ ratio.
The unpaid balance on capital accounts represents ______.
Take over of any liability by a partner is ______ to capital / currents of the partners.
Employees dues are _____ liabilities.
In practice assets realise ______.
Secured creditors are paid out of the respective.
Realisation expenses are first adjusted from sale proceeds of _______.

CHAPTER 3 : Amalgamation of Partnership Firms

1.
2.
3.
4.
5.
6.
7.
8.

Objective of amalgamation is ______.

On amalgamation, old firms are ______.
AS ______ deals with amalgamations.
Under Realisation Method, ______ Account is opened to implement amalgamation.
Amount agreed to be paid by the new firm to old firm is called ______.
Realisation Account may show either _____ or loss.
Profit on Realisation is _____ to Partners' Capital Accounts.
Loss on Realisation is _____ to Partners' Capital Accounts.

22

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

9.
10.
11.
12.

Assets and Liabilities are transferred to Realisation Account at _____ _____.

In amalgamation goodwill of both the firms is considered for _____ _____.
_____ _____ is the amount payable by purchasing firm to vendor firm.
In amalgamation profit/Loss on realization is transferred to partners capital Accounts in their _____
_____ ratio.

CHAPTER 4 : Accounting with the Use of Accounting Software

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

Manufacturing Journal is used by _____ industry.

Expiry date cannot be a date _____ to the voucher date.
_____ _____ is a list of all vouchers for a particular stock item in the same batch.
Configuration settings show _____ _____ _____.
_____ _____ _____ is used to record the transfer of stock from one location to another location.
_____ _____ _____ shows stock balance.
_____ _____ _____ records receipt of new stock.
_____ _____ _____ records delivery of goods to customers.
Under last purchase cost method, stock valuation is done at _____ price.
Press key _____ _____ to delete anything in Tally.
In Tally stock _____ is the goods that you manufacture.
In Tally stock _____ is the largest level of information on inventory.
In tally stock journal is a pure _____ transaction.
In tally Delivery Note is a pure _____ transaction.
There are _____ main options for all masters in Tally.
In Tally, Default stock category is _____.

V. THEORY QUESTIONS (SHORT NOTES)

CHAPTER 1 : Partnership Final Accounts
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Partnership deed
Fixed capital method
Fluctuating capital method
Partner's salaries
Interest on partners capital
Outstanding expenses
Unexpired expenses
Unearned income
Income Received in Advance
Partner's Loans

CHAPTER 2 : Piecemeal Distribution of Cash

1.
2.
3.
4.
5.
6.
7.

External Liabilities
Preferential Liabilities
Contingent Liabilities
Secured Loans
Unsecured Loans
Highest Relative capital
Takeover of an asset by a partner

Objective Questions

23

CHAPTER 3 : Amalgamation of Partnership Firms

1.
2.
3.
4.
5.

Amalgamation
Objectives of Amalgamation
Purchase consideration
Adjustment of capital A/c's
Net Asset method

CHAPTER 4 : Accounting with the Use of Accounting Software

1.
2.
3.
4.
5.
6.
7.
8.
9.

Cost centre.
Profit centre.
FIFO method.
Std. price method.
Market value method.
Rejections in voucher.
Rejections out voucher.
Physical stock voucher.
Manufacturing Journal.

VI. Short Questions

CHAPTER 1 : Partnership Final Accounts
1.

What is partnership deed?

2.

What do you mean by Goodwill?

3.

What is fluctuating capital?

4.

What is the Balance Sheet?

5.

What do you mean by carriage inwards?

6.

If the partnership deed is silent, in which ratio the partners will share the profit or loss?

7.

Why is Partnership Deed necessary?

8.

When are Partners' Current Accounts opened?

9.

Under which method of Capital Accounts are the Current Accounts of the partners opened?

10. How many partners are required to form a partnership?

11. What is bad debt?
12. What do you mean by credit balance of Trading Account?
13. What is Gross Profit?
14. What is Net Profit?
15. What is Balance Sheet?
16. Which adjustments are made in P & L Appropriation A/c?
17. What is unexpired expense?
18. What is unearned income?
19. What is unpaid expense?
20. What is accrued income?
21. How do you disclose Goodwill in Balance Sheet?
22. What is cost of production?
23. What is cost of Goods sold?
24. What is an intangible asset?
25. How would you adjust drawings of partners.

24

Accountancy and Financial Management (S.Y.B.Com. Sem. III)

CHAPTER 2 : Piecemeal Distribution of Cash

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

What is piecemeal distribution?

What is preferential liability?
What is secured liability?
What is unsecured liability?
How is preferential liability settled?
How is secured liability dealt with?
How is General Reserve dealt with on piecemeal distribution?
How is Goodwill dealt with on piecemeal distribution?
How is P & L A/c debit balance dealt with on piecemeal distribution?
What is the mechanism of distribution of cash among the partners on dissolution?
How does realization expenses dealt with on piecemeal distribution?

CHAPTER 3 : Amalgamation of Partnership Firms

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

What is Amalgamation?
What is the objective of Amalgamation?
What are the consequences of Amalgamation?
Which Accounting Standard deals with Amalgamation?
Which method of accounting is recognised by AS 14?
What are the different methods of accounting for amalgamation?
What is purchase consideration?
How is profit on Realisation dealt with?
How is accumulated profit dealt with on Amalgamation?
Which A/c is debited by payment of Realisation expenses?
Which A/c is debited by take over of assets by a partner?
In what ratio the profit on Realisation is distributed among the partners?
How is purchase consideration calculated?

CHAPTER 4 : Accounting with the Use of Accounting Software

1. What is a cost centre?
2. What is a profit centre?
3. What is stock group?
4. Mention the steps in deletion of a stock category.
5. What is Zero cost method?
6. What is FIFO method?
7. What is std. cost method?
8. What is LIFO method?
9. What is a godown?
10. What is Receipt Note voucher?
11. What is Rejection in voucher?
12. What is Rejection out voucher?
13. What is Delivery Note voucher?
14. What is stock Journal voucher?
15. What is physical stock voucher?
16. What is manufacturing Journal?
17. Which type of industry maintain manufacturing journal?
18. What are the contents of Batch vouchers?

Objective Questions

25

VII. NUMERICAL OBJECTIVE QUESTIONS

CHAPTER 3 : Amalgamation of Partnership Firms
1.

XYZ & Co. took over assets i.e. Land & Building 4,00,000; Plant & Machinery 3,00,000;
Furniture 2,00,000; Stock 60,000; Debtors 1,50,000 and Cash and Bank balance 90,000.
The liabilities taken over include creditors
1,50,000, Bills Payable
40,000 and Expenses
payable 10,000. Purchase consideration is
a)
10,00,000
b)
12,00,000
c)
14,00,000
2. Goodwill of two firms taken over 25,200. There are four partners of the new firm i.e. A, B, C &
D who share in the ratio of 3 : 2 : 3 : 2. Goodwill is to be written off. Capital accounts of the
partners will be debited by
a) 6,300; 6,300; 6,300; 6,300
b) 6,000; 6,000; 6,000; 7,200
c) 7,560; 5,040; 7,560; 5,040
3. Capital balances of A, B, C & D were 65,275; 37,275; 28,300 and 17,100. Goodwill
written off 7,560; 5,040; 7,560 and 5,040. Total Capital of the new firm is 1,12,000.
Their new ratio is 3 : 2, 3 : 2. The adjustment is to be made through current accounts. How much is
transferred to Current Account.
a) A 24,115
B 9,835
C
12,860 Dr.
D 10,340 Dr.
b) A 2,687.5
B 2,687.5
C
2,687.5
D 2,687.5
c) A 2,500
B 2,500
C
2,500
D 3,250
4. Vehicle recorded 20% below cost should be recorded at cost. The value of vehicle 8,000. The
cost price is :
a)
10,000
b)
18,000
c)
9,600
5. Loan from M 2,000 is discharged by investment of 3,000. The loss on investment is
a)
2,000
b)
1,000
c)
5,000
6. Stock of B & Co. includes 12,000 worth of goods purchased from W & Co. whose practice is to
sell goods at cost plus 20%. The unrealised profit is
a)
2,000
b)
2,400
c)
3,000
7. Total capital of the new firm is 40,000. There are four partners A, B, C & D whose share in the
ratio of 30%, 30%, 20% and 20% respectively. The new capitals of the partners will be :
a) 10,000; 10,000; 10,000; 10,000
b) 12,000; 8,000; 12,000; 8,000
c) 12,000; 12,000; 8,000; 8,000
8. Mr. B will make a gift of 10,000 to Mr. A towards his capital. The entry will be :
a) B's Capital A/c
Dr.
To A's Capital A/c
b) A's Capital A/c
Dr.
To B's Capital A/c
c) No entry
9. Advertisement Suspense Account 5,000 should be written off among the partners K & L who
share in the ratio of 3 : 2. The treatment will be :
a) Debited to K & L's Capital by 3,000 and 2,000.
b) Credited to K & L's Capital by 3,000 and 2,000.
c) None
10. X took over investment having book value of 10,000 for 80% of its book value. X Account is
debited by
a)
10,000
(b)
8,000
(c)
18,000