JAIIB
SPECIMEN QUESTIONS
ACCOUNTING
& FINANCE FOR BANKERS
MODULE
D
1. Select from
the following , a statement which speaks about liabilities of an entity.
(a) The
liabilities consist of claims of the owners
(b) The
liabilities consist of claims of the owners and outsiders
(c) The
liabilities consist of claims of the outsiders
(d) None of the
above
2. If the net
worth of the business is Rs.500, fixed assets are Rs. 500, current assets
Rs.300, investments Rs.300, current liabilities Rs. Nil, what is the amount of
claim to outsiders?
(a) Rs. Nil
(b) Rs. 1100
(c) Rs.500
(d) Rs.600
3. Select from
the following a sentence which is wrong
(a) If assets
increase and liabilities do not , the capital will increase
(b) If assets
increase and liabilities also increase by same sum , the capital will remain
same
(c) A reduction
in the amount of assets will amount to equivalent reduction in the net worth
(d) An
increase in the amount of liabilities with no corresponding increase in
liabilities will increase the amount of capital
4. The firm
sells goods on credit for Rs.50000, the cost of the goods sold is Rs.30000.The
effect of the transaction is that, the capital of the firm-----
(a) increases by
Rs.50000
(b) reduces by
Rs.40000
(c) increases
by Rs. 20000
(d) reduces by
Rs. 20000
5. Mr.Ghatge
commenced his business on 1st April, 2006 with Capital of Rs.1,00,000. He did
good business during the year and earned handsome profit. At the end of 31st
March, 2007, his financial position was: Fixed Assets Rs.1, 20,000 and bank
balance of Rs.33000 and Creditors Rs.
17000. What was his net profit for the year 05-06?
(a) Rs. 36000
(b) Rs.70000
(c) Rs.53000
(d) None of the
above
6. One of the
pairs given below is wrong. Select the wrong pair.
(a) Outstanding
expenses - Nominal account
(b) Profit and
Loss Account (Dr. balance) – Application of funds
(c) Net worth
less reserves & surplus - Capital
(d) Balance
sheet -
Financial position
7. Choose the
sentence which speak about illegal association
(a) The
unregistered association of 10 persons to do banking business
(b) The
unregistered association of 50 persons to do non banking business
(c) The
unregistered association of 20 persons to do business other than banking
(d) The
unregistered association of 10 persons to do business other than banking
8. From the
following ,find a sentence which is false in respect of partnership
(a) If the
partnership is following the “Fixed Capital Account Method” salary payable to a
partner is credited to the partner’s current account
(b) Drawings
made by partners are never entered in the Profit and Loss Appropriation
Account.
(c) In the
“Fluctuating Capital Account Method” the balance in the capital account always remains the same
(d) The capital
account of a partner is required to be opened in both the Fixed Capital Account
Method and Fluctuating Capital Account
Method
9. From the
account given below, select the account which is wrongly
included in Profit & Loss Appropriation Account at the debit side
a. Drawings
Account
b. Partners
Salary Account
c. Interest on
Loan Account
d. Commission
to Partners Account
10. The average
net profits expected are Rs.108000 per
annum before charging remuneration of Rs. 18000 to partner . The capital
employed in the business is Rs.6,00,000. The rate of return expected on capital
employed of a firm is 10%. What is the value of goodwill on the basis of two
years purchase of super profits.
a. Rs.108,000
b. Rs.60,000
c. Rs.78,000
d. None of the
above
11. A and B are
two partners in a firm sharing profits and losses as 2:1. they admitted C as a
partner with 25% share in the profits of the firm. Hence , the new profit
sharing ratio , after admission of C
would be -----
(a) 15:15:10
(b) 20:10:10
(c) 3:1:1
(d) None of the
above
12. Mr. Q and Mr.
R were partners of a firm sharing profit and losses in the ratio of 3:2. They
take S into partnership. It was agreed that S will pay Rs.1,00,000 as his share
of goodwill which will be retained in business and also bring Rs.3,00,000 as capital for one fourth share
in the future profits. The book value of the stock was 41,000 but was to be
revalued at Rs.50,000, Accountant has passed following entries, but Mr. Q feels
that one of the entry is wrong. Select the wrong entry from the following.
(a) Debit cash
and credit Goodwill for Rs.1,00,000
(b) Debit cash
and credit S’s Capital for Rs.3,00,000
(c) Debit
Goodwill for Rs.1,00,000 and credit Q’s Capital by Rs. 60000 & R’s Capital
by Rs. 40,000
(d) Debit Stock
and credit Profit & Loss Adjustment A/c by Rs.9,000
13. Read the
following four journal entries which are passed to consider revaluation of
assets and liabilities at the time of admission of a partner. One of the
journal entries is wrong, choose the entry which is wrong.
(a) For increase
in the value of assets-Debit Asset Account and Credit Revaluation Account.
(b) For decrease
in the value of liabilities- Debit Liabilities Account and Credit Revaluation
Account.
(c) For
Profit on revaluation of assets and liabilities – Debit Old Partners Capital
Account in old profit sharing ratio and Credit Revaluation Account
(d) For decrease
in the value of assets -Debit
Revaluation Account and Credit Asset Account
14. Any facts,
observations, occurrences are called -----
(a) data
(b) record
(c) file
(d) system
15. In the books
of ABC Enterprises, a partnership firm, when Mr. C, a partner decided to resign
from the firm, a revaluation of assets and liabilities was done and Revaluation
account was prepared which showed the following position: At the credit side of
Revaluation Account, Stock A/c Rs.25000,
Premises A/c Rs.52000 and Creditors A/c Rs. 8000 were shown while at debit side
of Revaluation Account Reserve for
Doubtful Debts A/c. Rs.15000, A’s Capital A/c.Rs.20000, B’s Capital A/c.
Rs.20,000 and C’s Capital A/c. Rs.20000 were shown. Accountant has interpreted
the Revaluation Account as follows. One of the interpretations by him is
incorrect. Select the incorrect sentence.
(a) Stock is
revalued upwardly by Rs. 25000
(b) Creditors
are revised upwardly by Rs.8000
(c) Premises are
revised upwardly by Rs.52000
(d) A provision
on debtors of Rs. 15,000 is made for doubtful debts
16. Select the
True statement from the following
(a) Interest
on drawing is an income to the partnership firm
(b) Joint
Venture is a permanent partnership firm
(c) Goodwill is
a tangible asset of the firm
(d) In the
absence of partnership agreement , partners share profit and loss in proportion
to the capital contributed by the partners.
17. Select the
incorrect statement in respect of companies.
(a) A member of
a company can enter into contract with a company
(b) It is
compulsory to register a joint stock company
(c) If all but one member of a private company
becomes insolvent ,it affects the existence of the organisation
(d) Shareholders
are not liable for the acts of the company
18. Select the
incorrect sentence
(a) Whenever,
there is no profit or inadequate profit, dividend cannot be declared
(b) The right to
claim dividend lapses when there is no profit in case of cumulative preference
shares
(c) When the
company makes profit , arrears of preference dividend are cleared first
(d) The Act
prohibits the issue of any preference shares which are irredeemable
19. Select the
incorrect statement
(a) Authorized
capital is the capital with which the company is registered
(b) Issued
capital is equal to its authorized capital
(c) Authorized
capital, issued capital, subscribed capital, called up capital and paid up
capital cannot be same
(d) The amount
which the company has asked its shareholders to pay is called up capital of the
company.
20. Following are
the journal during the process of application to allotment stage . One of the entries is
wrong. Select the wrong entry.
(a) Debit bank
account and credit share application account ( when application money is
received)
(b) Debit share
application account and credit share
capital account (application transferred
to share capital account)
(c) Debit
share capital and credit share allotment account ( for recording allotment
money being fallen due )
(d) Debit bank
account and credit share allotment account ( for receipt of allotment
money)
21. Select the
incorrect statement in respect of calls in advance
(a) The company
may accept from shareholders , the uncalled amount on shares even before it is
fallen due
(b) The article
of association must permit such acceptance of advance call money
(c) Interest on
calls in advance can be paid but the maximum is upto 6%
(d) The amount
of calls in advance is part of the paid up share capital
22. Select the
incorrect statement in respect of utilization of share premium
(a) it is used
for the purpose of buy back of shares
(b) it used for
payment of dividend in case of inadequacy of profits
(c) it is used
for writing off preliminary expenses
(d) it is used
for issue of fully paid bonus shares
23. Mr. X was issued 100 shares of Rs.10 each. He
failed to pay call money of Rs. 5 per share. The shares were forfeited and
re-issued to Mr. Y at Rs.9. When the entry recording the re-issue of shares was
passed in all, four accounts were affected.
The debit and credit effect of these four accounts is given below. One
of the accounts is given wrong effect.
Select that account from the following.
(a) Debit bank
account by Rs.900
(b) Debit
forfeited shares by Rs.500
(c) Credit share
capital by Rs.1000
(d) Credit
forfeited shares by Rs.400
24. DT Ltd.
issued shares of Rs.10 each at 10 % premium, payable on application Rs.2, on
allotment Rs.3 (including premium), on first call Rs.2 and on final call Rs.4.
One of the shareholders, applied for 100 shares but fail to pay allotment and
first call money. At this stage, the said shares were forfeited. Select the
account which was wrongly credited.
(a) Credit
Forfeited shares Account by Rs.200
(b) Credit Share
allotment Account by Rs.200
(c) Credit
share premium Account by Rs.100
(d) Credit Share
first call Account by Rs.200
25. Select the
source which is not valid for issue of bonus shares
(a) Share
premium
(b) Revaluation
reserve created by revaluation of fixed assets
(c) Capital reserve
(d) Capital
redemption reserve
26. The liability
side of the balance sheet of ABC
International Ltd. is showing following position: Paid up
share capital Rs.25 Lakh ( 25,000 shares of Rs.100 each fully paid
up)Share premium Rs.5 Lakh, Capital Reserve Rs. 3 Lakh, General Reserve Rs. 15
Lakh and Profit & Loss account Rs. 15 Lakh .It was decided to use minimum
free reserve for issue of 1:1 bonus shares.. The accounts and the amount with
which the account is debited are given below in sets. One of the set is
correct. Select the same.
(a) Share
Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 1 Lakh), General
Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 4 Lakh
(b) Share
Premium Account (Rs. Nil Lakh), Capital Reserve Account ( Rs. Nil Lakh),
General Reserve Account (10 Lakh)
& Profit & Loss Account by Rs. 15 Lakh
(c) Share
Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 3 Lakh), General
Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 2 Lakh
(d) Share Premium
Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 1 Lakh), General Reserve
Account (4 Lakh) & Profit & Loss Account by Rs. 15 Lakh
27. Select the
incorrect statement in case of Share Capital and Reserves and Surplus as shown
in the balance sheet.
(a) Under share
capital, the following order is maintained: Authorised capital, issued capital,
subscribed capital
(b) The called
up amount per share is indicated and in the amount column total amount i.e.
number of shares multiplied by amount called up per share is shown
(c) The amount
of unpaid calls is deducted from (b) above
(d) The amount
of forfeited shares account is shown under Reserves & surplus
28. Select the
incorrect statement in respect of form of balance sheet of
companies(Liabilities side).
(a) sinking
fund is shown under unsecured loans
(b) Loans and
Advances from banks are grouped under the head Secured Loans
(c) Unclaimed
Dividend is grouped under the head current liabilities
(d) Proposed
dividend is grouped under provisions.
29. Select the
incorrect statement in respect of form of balance sheet of companies ( Asset
side).
(a) Live
Stock is grouped under the head ‘current
Asset’
(b) Balance of
unutilized monies raised by issue is
grouped under the head ‘Investments’
(c) Interest
paid out of capital during construction is grouped under the head
‘Miscellaneous Expenditure’
(d) Vehicles are
grouped under the head ‘Fixed Asset’
30. In case any
sum has been written off on a reduction of capital or revaluation of assets,
each balance sheet subsequent to such reduction or revaluation must show the
reduced figures and date of reduction for a period of -----
(a) 1 year
thereafter
(b) 2 years
thereafter
(c) 3 years
thereafter
(d) 5 year
thereafter
31. One of the
accounts is wrongly grouped under the head “Investments” while preparing the
balance sheet of the company. Single out the wrong account.
(a) Investments
in government or trust securities
(b) Investments
in shares ,debentures or bonds
(c) Immovable
properties
(d) Interest
accrued on investments
32. One of the
accounts is wrongly debited to “Profit and Loss Appropriation A/c” of a
company. Name the wrong account debited
(a) Interim
dividend
(b) Proposed
dividend
(c) Provision
for tax
(d) Capital
redemption reserve
58. Select the
false statement in respect of assets
(a) a banking
company is allowed to acquire assets for its own use
(b) a banking
company is allowed to grant loans against the security of assets belonging to
its customers
(c) a banking
company is allowed to take possession of such assets in case of default
committed by the borrower
(d) a banking
company is not allowed to sale the assets against the security of which it has
granted loans
59. The scheduled
banks are required by RBI to transfer at least ------ of their disclosed profit
after adjustment/provision towards bonus to staff
a. 20%
b. 15%
c. 10%
d. None of the
above
60. Select the
incorrect statement in respect of “ financial Statements of Banks”
(a) a banking
company is not required to prepare financial statements in accordance with
Schedule VI of the Companies Act , 1956.
(b) The Act
prescribes special forms of balance sheet and profit and loss account for the
preparation of its final accounts
(c) These are
set out in form A and form B of the first schedule to the Banking regulation
Act, 1949
(d) Form A gives
format of a balance sheet and form “B” gives the format of a profit and loss
account
61. The financial
statement of bank consists of ------- schedules
(a) 18
Schedules
(b) 16 Schedules
(c) 17 Schedules
(d) Schedules
62. Investments,
Advances, Fixed Assets and other Assets are part of Schedule Nos.--respectively
a. 6,7,8,9
b. 7,8,9,10
c. 8,9,10,11
d. 9,10,11,12
63. Liability for
partially paid investments in respect of banking companies is grouped under the
head-----
(a) Investments
(b) Other assets
(c) Other
liabilities and provisions
(d) Contingent
liabilities
64. One of the
items is a misfit in a group namely ‘other income’ of a banking company. Select
this item from the following
(a) Income on
Investments
(b) Profit on
sale of investments
(c) Profit on
revaluation of investments
(d) Profit on
exchange transactions
65. In banking
company, matured term deposit to be shown under-----
(a) demand
deposits
(b) saving bank
deposits
(c) term
deposits
(d) other
liabilities and provisions
66. Advances
given to a staff by a bank as a employer should be included in-----
(a) other
assets
(b) advances
(c) investments
(d) none of the
above
67. Depreciation
on bank’s property is part of “Operating Expenses”. Some of the items included
under this category are listed below. One of the expenses is wrongly included.
Identify that item of expense.
(a) depreciation
on motor cars
(b) depreciation
on stationary and stamps
(c) depreciation
on furniture
(d) depreciation
on non-banking assets
68. Select the
correct statement in respect of doubtful debts
(a) Which has
remained NPA for a period not exceeding 18 months?
(b) Which has
remained NPA for a period exceeding 18 months
(c) Which is
considered uncollectible by bank/ internal auditor or RBI Inspection
(d) None of the
above
69. The
provisional requirement for standard asset is-----
(a) 0.40%(revised)
of total outstanding
(b) 10%(revised)
of total outstanding
(c) 40%(revised)
of total outstanding
(d) 100%(revised)
of total outstanding
70. The
investment under “held to maturity” should not exceed -----of bank’s total investment.
(a) 25%
(b) 75%
(c) 5%
(d) None of the
above
71. The list
given below consists of various securities. Identify the security which is SLR
security
(a) Securities
issued by local authorities
(b) Shares
(c) Bonds
(d) subsidiaries
72. Acceptances,
endorsements and guarantees are shown as-----
(a) other assets
(b) contingent
liabilities
(c) advances
(d) other
liabilities and provisions
73. Select the
false statement in respect of banking
(a) A company
accepting deposits for the purpose of lending or investment is a banking
company
(b) A
manufacturing company accepting deposits from the public and some portion of it is lending to its employees
as home loans is a banking company
(c) A company
besides accepting deposits and lending is dealing in goods in connection with
the realisation of a security is a banking company
(d) A company
besides accepting deposits and lending is in the business of collections or
negotiating bills of exchange is a banking company.
74. The list
given below provides the close relationship between the items of each pair. One
of the pairs has no such close relationship. Identify this pair.
(a) Banking
company – trustees and executors
(b) Form B -
Profit and Loss Account
(c) Ledger
book -
Letter of credit register
(d) Other
liabilities and provisions - Schedule 5
75. Choose the
wrong pair from the following. The information given in the pair is pertaining
to banking companies
(a) Reserves
& surplus - Share premium
(b) Time
deposits - Matured time deposits
(c) Borrowings
in India - Refinance from NABARD
(d) Other
Liabilities & Provisions - Inter office/branch adjustments(net
76. Choose the
wrong pair from the following. The information given in the pair is pertaining
to banking companies
(a) Demand
Deposits - Compulsory deposits under excise rules
(b) rebate on
bills discounted - unexpired discount
(c) Operating
Expenses Schedule 14
(d) Other Income -
Profit on sale of investments
less loss on sale of investments
77. The name of
the accounts with the coverage of various items in building that account is
given below. One of the items covered in on of the accounts is wrong. Select
this account
(a) Closing
balance of provisions held towards NPA - Opening Balance plus provisions made during
the year less write off of bad debts/write back of excess provisions
(b) Interest
Earned -
interest on advances plus income on investments plus interest on deposit
with RBI plus income earned by way of dividends from subsidiaries plus discount
on bills less unexpired discount
(c) Reserves
& surplus - Opening balance plus additions during the
year less deductions during the year
(d) Term
deposits - from banks and from Others
78. Identify a
pair which is mismatch from the following pairs in respect of Company Accounts
(a) Miscellaneous
Expenditure – Preliminary Expenses
(b) Contingent
Liabilities – footnote to balance sheet
(c) Debentures
– Unsecured Loans
(d) Outstanding
Expenses – Current Liabilities
79. Identify a
pair which is mismatch from the following pairs in respect of Company Accounts
(a) Discount
on issue of shares – Profit and Loss Account
(b) Bill
discounted – contingent liabilities
(c) Interest
accrued and due on debentures – Secured Loans
(d) Mortgage Loan
– Secured Loans
80. Companies are
required to transfer certain percentage of their profit after tax to reserves,
to declare dividend. The various rates of transfer based on the rates of dividend
are given below in pair. Select the wrong pair.
(a) Rate of
dividend exceeds 10% but not 12.50- Transfer to reserve @ Nil%
(b) Rate of
dividend exceeds 12.50% but not 15%- Transfer to reserve @ 5%
(c) Rate of
dividend exceeds 15% but not 20%- Transfer to reserve @ 7.50%
(d) Rate of
dividend exceeds 20% - Transfer to reserve @ 10%
81. While
preparing the final accounts of the company, the adjustments [(i) to (iv)] are
to be made by passing necessary entries. One of the entries passed is wrong
entry. Select the wrong entry.(i) Depreciate plant ,WDV of which is Rs.3,30,000
at 15% (ii) Write off Rs.5,000 from Preliminary Expenses (iii) Half years
debenture interest due (12% debentures of Rs. 3,00,000) (iv) a claim of Rs.
25,000 for workmen’s compensation is disputed by the company.
(a) Debit
Depreciation on plant by Rs.49,500 credit plant by 49,500 AND Debit Profit
& Loss Account by 49,500 and Credit Depreciation on plant by 49,500
(b) Debit Profit
and Loss Account by Rs.5,000 and Credit Preliminary Expenses
(c) Debit
Debenture Interest by Rs.18,000 & Outstanding Liability for Deb. Interest
by 18,000 AND Debit Profit and Loss Account by Rs.18,000 and Credit Debenture
Interest by Rs.18000
(d) Debit
Wages by Rs.25,000 & Credit Outstanding Liability for Workers
compensation AND Debit Profit and Loss
Account by Rs.25,000 and Credit Wages by Rs.25,000
82. While
preparing the final accounts of the company, the adjustments [(i) to (iv)] are
to be made by passing necessary entries. One of the entries passed is wrong
entry. Select the wrong entry.(i) Provide dividend 5% of paid up share capital
(Share capital of Rs. 5,00,000 consisting of shares of Rs. 10 each fully paid)
(ii) Insurance for unexpired period is Rs.2000 (iii) A provision of Rs. 25,000
is to be made for income tax (iv) a provision of Rs. 5000 is to be made for
doubtful debts
(a) Debit
Dividend by Rs.25000 & Credit Bank by Rs.25000
(b) Prepaid
Insurance by Rs.2000 & Insurance by Rs.2000
(c) Debit Profit
& Loss Account by Rs.25,000 & Credit Provision for Tax by Rs.25,000
(d) Debit Profit
& Loss by Rs.5,000 & Credit Provision for doubtful debts by Rs.5,000
83. In respect of
asset side of the balance sheet one of the items is presented in a proper
order, rests are disorderly. Select the orderly presented item from the
following.
(a) Investments,
Fixed Assets, Current Assets & Loan Advances, Profit & Loss Account(Dr.
balance), Miscellaneous Expenditure
(b) Fixed
Assets, Investments, Current Assets & Loan Advances, Profit & Loss
Account(Dr. balance) , Miscellaneous Expenditure
(c) Fixed
Assets, Investments, Current Assets & Loan Advances, Miscellaneous
Expenditure, Profit & Loss Account(Dr. balance)
(d) Fixed Assets,
Current Assets & Loan Advances, Profit & Loss Account(Dr. balance),
Miscellaneous Expenditure
84. One of the
statements in respect of Profit & Loss Adjustment account is incorrect,
rest are correct. Mark the incorrect sentence.
(a) The account
is credited with closing balance of profit and loss account of last year
(b) The account
is credited with current year’s net profit
(c) The
account is debited with provision for taxes
(d) The account
is debited with provision for dividend
85. The two
portion of each pair relating to partnership accounts has got some
relationship. However one of the pairs is a mismatch and has no relationship.
Select this pair from the following
(a) Management
of business - business may be run by one or some or all
partner
(b) Treatment of
losses -
insolvency of a partner
(c) Loan from
partners - No interest as partners are owners
(d) Goodwill -
super profit method
86. The two
portion of each pair relating to admission of a partner has got some
relationship. However one of the pairs is mismatch and has no relationship.
Select this pair from the following
(a) Admission
of a partner - gain ratio
(b) Reserves
& surplus - Old partners
(c) Goodwill - new
partner
(d) Revaluation
of assets & liabilities - Profit & Loss adjustment account
87. The two
portion of each pair relating to retirement of a partner has got some
relationship. However one of the pair is mismatch and has no relationship.
Select this pair from the following
(a) Retirement -
voluntary action
(b) Gain -
retiring partner
(c) Share of
goodwill - borne by continuing partners
(d) Reserve
& surplus - belong to all partners
88. If the
partners capital accounts are fixed, where will you record (either debit side
or credit side of which account ) the following transactions (i) Salary payable to partner (ii) Fresh
capital introduced by a partner (iii) Drawing made by a partner (iv) Share of
profit earned by a partner. The effect to one of the journal entries is wrongly
given. Identify that account from the following.
(a) Debit
side of partner’s current account
(b) Credit side
of partner’s capital account
(c) Debit side
of partner’s current account
(d) Credit side
of partner’s current account
89. L,K and P are
partners. The following differences as listed at (i) to (iv) have arisen due to
misunderstanding. The answer to each point is given at (a) to (d). One of the
solutions is incorrect. Identify the wrong solution. (i) L used Rs.25,000
belonging to the firm and made a profit of Rs.4,000. K wants the amount to be
given to the firm (ii) P used Rs.10,000 belonging
to the firm and suffered a loss of Rs. 3000. He wants the firm to bear the loss
(iii) L & K wishes to appoint S as new partner. P does not agree (iv) L has
given loan of Rs. 50,000 to the firm, he wants interest at 6% ( there is no
partnership deed)
(a) K is right
.L must pay Rs.29,000 to the firm
(b) P is
right . Firm should bear profit as well as losses.
(c) P is right.
No new partner can be admitted without the consent of all.
(d) L is right.
He is entitled for interest at 6% in the absence of partnership agreement.
90. Below are some
statements about partnership. One of them is correct, identify that statement.
(a) Partnership
arises from reputation
(b) A
partnership is formed only for a legal business
(c) The
liability of partners is limited
(d) The business
of the firm is conducted by two partners
91. O and P are
two partners sharing profits in the ratio of 7:3. They admit Q into partnership
as a partner from 1st April 2006 on 3/7th share in the profit. What is the new
profit sharing ratio
(a) 14: 6 :
15
(b) 7: 3: 3
(c) 2: 2: 3
(d) None of the
above
92. A firm earns
Rs.10,000 as its normal profits. The rate of normal return being 10%. The
assets of the firm amount to Rs.72,000 and liabilities to Rs.24,000. Find out
the value of goodwill.
(a) Rs.52,000
(b) Rs.1,00,000
(c) Rs.28,000
(d) Nil
93. When a new
partner gives cash for goodwill, the amount is credited to-----
(a) Goodwill
account
(b) Capital
account of new partner
(c) Cash account
(d) None of the
above
94. If the
goodwill account is raised for Rs.50,000, the amount is debited to-----
(a) The capital
accounts of partners
(b) Goodwill
account
(c) Cash account
(d) None of the
above
95. A and B
sharing profits and losses in the ratio of 2:1. C is admitted as partner giving
him ¼ share. The new profit sharing ratio will be-----
(a) 2:1:1
(b) 4: 4:3
(c) 3: 3: 2
(d) None of the
above
.
96. If the
adjustment in the values of assets at the time of the admission of a partner
shows a profit, it should be credited to the capital accounts of-----
(a) The old
partners in their new profit-sharing ratio
(b) All partners
in their new profit sharing ratio
(c) The old
partners in their old profit sharing ratio
(d) None of the
above
97. A, B and C
are three partner sharing profits in the ratio of 3:1:1. C retires and his
share is purchased by B. the new profit sharing ratio shall be-----
(a) 3:1
(b) 7:3
(c) 3:2
(d) None of the
above
98. On the
retirement of the partner, the profits on revaluation of assets should be
credited to the accounts of-----
(a) All the
partners in their profit sharing ratio
(b) The
remaining partners in their new profit sharing ratio
(c) The
remaining partners in their old profit sharing ratio
(d) None of the
above
99. A, B and C
share profits as 3:2:1. C retires. Calculate the gain ratio of A and B
(a) 3:2
(b) 1:1
(c) 2:1
(d) None of the
above
100. Choose the
incorrect statement in case of dissolution of partnership from the following
statements
(e) On the
dissolution of the firm , first creditors like wages outstanding etc. will have
to be paid
(f) Goodwill
will be raised in the books when a firm is dissolved
(g) The loan
from the spouse of a partner is treated just like a loan from outside parties
(h) After the
books are closed, no account will show any balance.
101. Choose the
incorrect statement from the following statement which are pertaining to
company accounts
(a) The company
is an artificial person
(b) A member
of a company may bind the company by its actions.
(c) The
shareholders are not liable for the acts of the company
(d) The premium
received on shares may be distributed among shareholders.
102. A new company
cannot issue shares-----
(a) at par
(b) at
discount
(c) at premium
(d) none of the
above
103. A company
wishes to pay dividend on shares. State which of the following may be used for
the purpose.
(a) Premium of
shares
(b) Profit on
re-issue of forfeited shares
(c) General
Reserve
(d) None of the
above
104. If Rs.10 share
has been issued at a premium of Rs.5, on which entire amount has been called
up, has been forfeited for non payment of
Rs. 4, the ‘Share Capital Account’ will be debited by-----
(a) Rs.15
(b) Rs.10
(c) Rs.4
(d) Rs.6
105. Money received
in advance from shareholder before it is actually called up by the company is
-----
(a) Debited to
Calls in arrears Account
(b) Debited to
Calls in Advance Account
(c) Credited
to Calls in Advance Account
(d) Credited to
Share Capital Account
106. If a share of
Rs.10 issued at a premium of Rs.1 on which Rs.9 ( including premium) have been
called and Rs.7( including premium) paid is forfeited, the capital account
should be debited by-----
(a) Rs.8
(b) Rs.10
(c) Rs.9
(d) Rs.7
107. Dividend are
usually paid on
(a) Called up
capital
(b) Paid up
capital
(c) Authorised
capital
(d) None of the
above
108. Preliminary
Expenses is-----
(a) Fictitious
Asset
(b) Current
liability
(c) Current
asset
(d) None of the
above
109. A and B are
partners sharing profits in the ratio of 3:2. C is admitted as a partner. The
new profit sharing ratio among A, B and C is 4:3:2. Find out the sacrificing
ratio
(a) 7:3
(b) 4:3
(c) 1:1
(d) None of the
above
110. Choose the
correct treatment for premium paid on ‘Joint Life Policy’ when premium paid is
treated as an expense.
(a) Premium
amount is debited to P & L account every year and when claim becomes due
then to be shared by all partners
(b) Every year
amount debited to Joint Life Policy Account and balance is shown on asset side
at surrender value . The difference between surrender value and premium paid is
written off to Profit and Loss account
(c) Joint Life
Policy and Joint Life reserve Account are adjusted to bring them down to
surrender value of policy.
(d) None of the
above.
.
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