Question : Anupma, Pumima and Ruchika are partners in a business. Balances in their Capital and Current Accounts as on 31st March. 2019 were :
Capital Account Current Account
(Rs.) (Rs.)
Anupma 6,00,000 60,000 (Dr.)
Pumima 5,00,000 30,000 (Dr.)
Ruchika 5,00,000 10,000 (Cr.)
The firm earned an average profit of Rs.2,40,000. If the normal rate of return is 12%, the value of goodwill by Capitalisation of the Average Profit Method will be:
Option 1: 4,80,000
Option 2: 3.80,000
Option 3: 5,60,000
Option 4: Nil
Correct Answer: 4,80,000
Solution : Answer = 4,80,000
Total capitalization value of the firm = 2,40,000X100/12=20,00,000
Net assets = 16,10,000-90,000= 15,20,000
Goodwill -=20,00,000-15,20,000=4,80,000
Hence, the correct option is 1.
Answer laterQuestion : When a new partner is admitted the balance of 'General Reserve' appearing in the Balance Sheet at the time of admission is credited to
Option 1: Profit and Loss Appropriation Account
Option 2: Capital Accounts of all the partners
Option 3: Capitals Accounts of Old Partners
Option 4: Revaluation Account
Correct Answer: Capitals Accounts of Old Partners
Solution : Answer = Capitals Accounts of Old Partners
In case of admission of a partner general reserve appearing in the liabilities side of the balance sheet will be distributed among the old partners in their old profit sharing ratio.
Hence, the correct option is 3.
Question : Statement 1: In management accounting, data from cost accounting and financial accounting are both used.
Statement 2: Therefore, a suitable system is required to combine cost accounts and financial accounts.
Option 1: Both the statements are true
Option 2: Both the statements are false
Option 3: Statement 1 is true and statement 2 is false
Option 4: Statement 1 is false and statement 2 is true
Correct Answer: Both the statements are true
Solution : In management accounting, data from cost accounting and financial accounting are both used. Therefore, a suitable system is required to combine cost accounts and financial accounts. Data duplication is prevented. The integration mechanism must be precise and trustworthy. Hence, the correct option is 1.
Question : The following Bar Graph displays the highest, average and lowest marks obtained in Accounts, Business Studies, Economics and English by students of Class XII in an Examination. The maximum mark for each subject is 100. Study the graph carefully and answer the question that follows:
Which of the two Highest Scores is better and by how much?
The combined Highest Score of Accounts and Business Studies or the Highest Score of Economics and English taken together.
Option 1: Economics and English by 10
Option 2: Accounts and Business Studies by 9
Option 3: Accounts and Business Studies by 8
Option 4: Economics and English by 8
Correct Answer: Economics and English by 8
Solution : The combined highest score of Accounts and Business Studies = (96 + 96) = 192
The combined highest score of Economics and English = (100 + 100) = 200
So the combined highest score of Economics and English is better by (200 – 192) = 8 marks
Hence, the correct answer is Economics and English by 8.
Question : Which of the following accounts are opened when partners have fixed capital?
Option 1: Capital A/cs
Option 2: Current A/cs
Option 3: Both Capital A/cs and Current A/cs
Option 4: Either Capital A/cs or Current A/cs
Correct Answer: Both Capital A/cs and Current A/cs
Solution : Both Capital a/cs and Current A/cs are opened when partners have fixed capital. Hence, the correct option is 3.
Question : ___________ is a type of banking service that allows customers to access their bank accounts and perform transactions through the internet.
Option 1: Online banking
Option 2: Mobile banking
Option 3: Telephone banking
Option 4: ATM banking
Correct Answer: Online banking
Solution : The correct answer is (a) Online banking
Online banking is a type of banking service that allows customers to access their bank accounts and perform various financial transactions through the internet. It provides a convenient way for customers to manage their finances without the need to physically visit a bank branch.
With online banking, customers can log in to their bank's secure website or mobile app using their personal credentials, such as usernames and passwords. Once logged in, they can view their account balances, transaction history, and statements. They can also initiate transactions like fund transfers between accounts, bill payments, loan payments, and even set up recurring payments.
Question : The Comptroller and Auditor General of India submits his report relating to the accounts of the union to the:
Option 1: Finance minister
Option 2: Prime minister
Option 3: President
Option 4: Chief Justice of the Supreme Court
Correct Answer: President
Solution : The correct answer is The President.
The Comptroller and Auditor General (CAG) of India annually submits its report to the President of India. Established under Article 148 of the Indian Constitution, it is the topmost audit institution in India. CAG audits the accounts of the Government of India and other institutions that receive government funding. The Public Accounts Committee (PAC) is responsible for discussing the CAG report in the parliament.
Question : In the context of medieval travelers' writings, for whom were these accounts primarily written?
Option 1: For the general public
Option 2: For fellow travelers
Option 3: For the travelers' patrons or sponsors
Option 4: For historians
Correct Answer: For the travelers' patrons or sponsors
Solution : Medieval travelers' writings were primarily written for the travelers' patrons or sponsors. These accounts were often commissioned by nobility, royalty, or religious institutions that sponsored the journeys, and they served to inform and entertain the sponsors, as well as to justify the expenses of the travels.
Question : A, B and C are sharing profits in the ratio of 4:3:2. A dies on 31st December 2017. Accounts are closed on 31st March every year. Sales for the year ending 31st March 2017 amounted to Rs.4,00,000. Sales of Rs.3,30,000 amounted between the period from 1st April 2017 to 31st December 2017. The profit for the year ending 31st March 2017 amounted to Rs.60,000.
The deceased partner’s share in the current year’s profits of the firm will be
Option 1: Rs 24,000
Option 2: Rs 18,000
Option 3: Rs 10,000
Option 4: Rs 22,000
Correct Answer: Rs 22,000
Solution : Answer = Rs 22,000
A's Share of Profit
= $\frac{60,000}{4,00,000}\times 3,30,000 = 49500\times\frac{4}{9}$
= $22000$
Hence, the correct option is 4.
Question : A and T are equal partners with fixed Capitals of Rs. 2,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31st March 2019. It was discovered that interest on capital 8% p.a. was omitted to Be provided. In the adjustment Entry:
Option 1: A will be credited By Rs. 16,000 and
T will be debited by Rs. 8,000
Option 2: A will be debited By Rs. 16,000 and
T will be debited by Rs. 8,000
Option 3: A will be credited By Rs. 4,000 and
T will be debited by Rs. 4,000
Option 4: A will be debited by Rs. 4,000 and
T will Be credited by Rs. 4,000.
Correct Answer: A will be credited By Rs. 4,000 and
T will be debited by Rs. 4,000
Solution : Answer = A will be credited By Rs 4,000 and T will be debited by Rs 4,000.
| Interest on capital @ 8% p.a. | A | T |
Firm
|
|||
| Dr | Cr | Dr | Cr | Dr | Cr | |
| - | 16,000 | - | 8,000 | 24,000 | 24,000(loss) | |
| 12,000 | 12,000 | 24,000 | 24,000 | |||
| Loss (1:1) | 12,000 | 16,000 | 12,000 | 8,000 | ||
| 4,000(Cr) | 4,000(Dr) | |||||
Hence, the correct option is 3.
