Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Provision for Doubtful Debt on 1st April, 2018 was `21,500. During the year 2018 – 19 the Bad-debt and Recovery of Bad-debt were ` 10,500 and ` 2,100 respectively. The Sundry Debtors on 31st March, 2019 were `2,25,000. Provision is to be made @ 5% on Debtors. If on 31st March, 2019, there was additional Bad-debt of ` 2,500 then Provision for doubtful-debt will be
a. debited to Profit & Loss Account by `11,250.
b. debited to Profit & Loss Account by `2,625.
c. debited to Profit & Loss Account by `3,000.
d. debited to Profit & Loss Account by `900.
Q. A and B enter into a joint venture sharing profit and losses in the ratio of 3:2. A purchased goods costing `2,00,000. B sold 95% goods for ` 2,50,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. A drew a bill on B for an amount equivalent to 80% of original cost of goods. A got it discounted at `1,50,000. What is A's share of profit?
a. 15,300
b. 21,300
c. 18,900
d. None of the above
Q. When forfeited shares (which were originally issued at a discount ) are reused at a premium,the amount of such premium will be credited to
a. Shares forfeiture account
b. security premium account
c. capital reserve account
d. none of these.
Q. When an existing company offers its shares for sale to the existing shareholders, it is knownas
a. Private placement
b. bonus shares
c. right issue
d. offer for sale
Q. Dividends are usually paid on
a. Authorized capital
b. issued capital
c. called up capital
d. paid up capital
Q. Which of the following should be deducted from the shares capital to find out paid up capital
a. Calls in advance
b. calls in arrears
c. shares forfeited account
d. discount on issue of shares.
Q. Interest on debenture is
a. Adjustment of profit
b. appropriation of profit
c. charge on profit
d. none of these
Q. In the balance sheet of a company, debentures are shown under which heading
a. Secured loan
b. unsecured loan
c. provisions
d. reserves and surplus
Q. In the balance sheet of a company , the discount on issue of debentures is shown under whichheading
a. Fixed asset
b. current asset
c. investment
d. miscellaneous expenditure
Q. Advance payment of tax is in the nature of
a. Capital expenditure
b. prepaid expenses
c. outstanding expenses
d. revenue expenditure
Q. Debentures are shown in the balance sheet under head
a. Current asset loans and advances
b. investments
c. secured loan
d. unsecured loan
Q. Preliminary expense Is an example of
a. Fixed asset
b. current asset
c. investment
d. fictitious asset
Q. Divisible profit do not include
a. Insurance fund
b. reserve fund
c. profit and loss account balance
d. revaluation
Q. The transfer of profit to reserve should not exceed
a. 5% of profit
b. 10% of profit
c. 15% of profit
d. 20% of profit