Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy admission of a new partner accounting treatment of admission of a partner partnership accounts: admission of a new partner reconstitution of partnership

H & M are partners in a firm sharing profits and losses in the ratio of 2:5. They admit K as a new partner who will get 1/6th share in the profits of the firm. Calculate new profit sharing ratio among H, M & K.

  1. 10:25:7

  2. 7:25:10

  3. 25:10:7

  4. 10:7:25
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

K gets 1/6th share. The remaining share for H and M is 5/6. This is divided in their old ratio of 2:5. H's new share = (2/7) * (5/6) = 10/42. M's new share = (5/7) * (5/6) = 25/42. K's share = 1/6 = 7/42. The ratio is 10:25:7.

Multiple choice book keeping and accountancy admission of a new partner accounting treatment of admission of a partner partnership accounts: admission of a new partner reconstitution of partnership

Capital accounts of partner A & B are Rs 30,000 & Rs 16,000, They admitted C on the following conditions.
  - That C brings in Rs 10,000 as his capital for 1/4th share in profits.
  - That a goodwill account be raised in the books of the firm at Rs 15,000.
  - Profit on revaluation of assets & liabilities was Rs. 2,100
  - That the capital accounts of the partners be readjusted on the basis of their profit sharing ratio and any additional amount be debited or credited to their current accounts.
  - General reserve appearing in balance sheet at the time of admission of C was Rs 6,000.
To give effect to above current account of A & B will be ......... 

  1. Debited by Rs 25,400 & Rs 13,700

  2. Credited by Rs 20,500 & Rs 10,300

  3. Credited by Rs 26,550 & Rs 12,550

  4. Debited by Rs 20,500 & Rs 10,300
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is a duplicate of question 400702. The calculation involves adjusting capital accounts for revaluation, reserves, and goodwill, then balancing against the new profit sharing ratio.

Multiple choice book keeping and accountancy admission of a new partner accounting treatment of admission of a partner partnership accounts: admission of a new partner reconstitution of partnership

A and B are partners of firm sharing profits in the ratio of 3:2 C was admitted for the 1/5th share of profit machinery would be appreciated by 105 ( book value Rs 80,000) and the building would be depreciated by 205 (Rs 2,00,000) unrecorded debtors of Rs. 1,250 would be bought to book and Creditor of Rs. 27,500 died and need not to pay anything . what will be the profit/loss in revaluation?

  1. Loss Rs. 28,000

  2. Loss Rs 40,000

  3. Profit Rs 28,000

  4. Profits Rs 40,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice book keeping and accountancy admission of a new partner accounting treatment of admission of a partner partnership accounts: admission of a new partner reconstitution of partnership

A firm has an unrecorded investment of Rs 5,000. Entry in the firms journal on an admission of a partner will ________.

  1. Revaluation A/c dr. 5,000 to unrecorded investment A/C 5,000

  2. Unrecorded investment A/c dr. 5,000

  3. Partner's capital A/c dr. 5,000 to unrecorded investment 5,000

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice book keeping and accountancy admission of a new partner accounting treatment of admission of a partner partnership accounts: admission of a new partner reconstitution of partnership

Amit and anil are partners sharing profits in the ratio of 5:3 with a capital of Rs. 2,50,000 and Rs. 200,000. Atul was admitted and would pay Rs. 10,000 as capital and Rs. 16,000 as goodwill for 1/5th profit find the balance of capital accounts after the admission of atul ________.

  1. 2,60,00:2,06,000:50,000

  2. 2,20,500:1,82,000:66,000

  3. 2,92,500:2,25,500:50,000

  4. 2,823,500:2,19,500:66,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

After admitting Atul, the capital accounts are updated by adding the new capital brought in and distributing the goodwill among the old partners in their sacrificing ratio (5:3).

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns prepration of income and expenditure account accounting treatment for npo's special issues associated with accounts of non-trading concerns receipts and payments receipts and payments account financial accounting and reporting accounting procedure for not-for-profit organisations balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations prepration of income and expenditure account and balance sheet

Income and Expenditure account is ______ to account like Profit and Loss account.

  1. real

  2. personal

  3. nominal

  4. expense
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Income and Expenditure account is prepared by non-trading concern to reveal the surplus or deficit arising out of the operating activities during the accounting period. It is one of the final accounts of non-trading concern like the profit and loss account of the trading concern,

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns prepration of income and expenditure account accounting treatment for npo's special issues associated with accounts of non-trading concerns receipts and payments receipts and payments account financial accounting and reporting accounting procedure for not-for-profit organisations balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations prepration of income and expenditure account and balance sheet

In Income and Expenditure account all Expenditure are recorded on ______________.

  1. Debit side

  2. Credit side

  3. Income side

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In income and Expenditure account all expenditure are recorded on the debit side whereas all incomes are recorded on credit side of Income and Expenditure account.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns prepration of income and expenditure account accounting treatment for npo's special issues associated with accounts of non-trading concerns receipts and payments receipts and payments account financial accounting and reporting accounting procedure for not-for-profit organisations balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations prepration of income and expenditure account and balance sheet

Any revenue expense for which a separate fund is available will be ___________.

  1. debited to that separate fund

  2. debited to income and expenditure account

  3. capital issues and shown in the balance sheet

  4. credited to the separate fund
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Separate funds are those funds which are earmarked for a specific activity. In case of fund based accounting, all the incomes related to that particular activity is credited to that fund and all the expenses debited to that fund. For example, Building fund, Sports fund etc. 

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns prepration of income and expenditure account accounting treatment for npo's special issues associated with accounts of non-trading concerns receipts and payments receipts and payments account financial accounting and reporting accounting procedure for not-for-profit organisations balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations prepration of income and expenditure account and balance sheet

Non-trading institutions prepare ___________.

  1. profit and loss account

  2. trading account

  3. manufacturing account

  4. income and expenditure account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Non trading organizations like professionals i.e doctors, chartered accountants, lawyers are preparing the income and expenditure account.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns prepration of income and expenditure account accounting treatment for npo's special issues associated with accounts of non-trading concerns receipts and payments receipts and payments account financial accounting and reporting accounting procedure for not-for-profit organisations balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations prepration of income and expenditure account and balance sheet

The revenue receipts are to be shown on ______side.

  1. credit side of income & expenditure

  2. debit side of income & expenditure

  3. asset side of balance sheet

  4. liabilitie side of balance sheet
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Receipts may be classified as revenue receipts and capital receipts. 

Receipts which are received in the normal course of business are treated as revenue receipts.
Receipts which are received with a specific object is considered as capital receipts.
Revenue receipts are credited to income account and shown in the credit side of  Income & Expenditure account.