F.Y B.COM
SEMESTER - 2
FINANCIAL ACCOUNTING
(FA)
MCQS - FEBRUARY 2020
1. When assets are realized gradually, available cash should be utilized last to pay _________.
a) Government Taxesb) Secured creditors
c) Partners' capital
d) Realization expense
2. Which method is appropriate for distribution of cash to partners' capital when all the partners are solvent and are likely to remain solvent at the time of dissolution of partnership firm?
a) Net asset method
b) Garner VS. Murray rule
c) Highest relative capital method
d) None of these
3. Garner VS. Murray rule could be applied in the ________ .
a) Highest relative capital method
b) Surplus capital method
c) Proportionate capital method
d) Maximum loss method
4. Which method is appropriate distribution of cash to partners' capital when all the partners are not solven at the time of dissolution of partnership firm?
a) Highest relative capital method
b) Surplus capital method
c) Proportionate capital method
d) Maximum loss method
5. As per garner VS. Murray rule, the deficiency of the insolvent partner shall be taken over by the solvent partners in their ________ ratio.
a) Profit sharing
b) Sacrificing
c) Final claim
d) Capital contribution
6. Which statement is incorrect regarding gradual realization of assets and piecemeal distribution of cash?
a) On the event of dissolution of a partnership firm, the assets are realized and liabilities paid off.
b) The process of asset realization takes place gradually.
c) "piece - meal distribution" represents the process of "pay as and when you realize" strategy.
d) None of the above
7. Balance of goods sent on consignment is transferred to ___________ .
a) Profit & loss account
b) Trading account
c) Consignment account
d) Consignor's account
8. Which statement is/are correct regarding gradual realization of assets and piecemeal distribution of cash?
a) Cash in hand or bank balance is to be considered as first realization in distribution of cash.
b) If an asset of a firm is purchased by the partner, then the agreed value of such asset should be distributed among all partners (including the partner who has purchased the assets).
c) If any partner is taking over an asset of a firm, it should be deducted from the balance due to the partners' capital account
d) all of the above
9. What is the relationship of a consignor and consignee?
a) Buyer - seller
b) Customer - manufacturer
c) Employee - employer
d) Principal - agent
10. What is the purpose of del - credere commission provided by consignor to consignee?
a) To share fixed percentage commission on sale
b) To share extra commission for extra profit
c) To secure the normal loss
d) To secure the risk of bad - debt
11. Which accounts are personal in nature?
a) Joint bank account
b) Coo - ventures' account
c) Joint venture account
d) Both (A) & (B)
12. Any ______ may be the subject matter of joint venture.
a) Movable property
b) Immovable property
c) Movable or immovable property
d) None of these
13. Which of the following statement is/are correct with reference to joint venture?
(i) Account sales is sent by one Co - venture to another Co - venturer.
(ii) The relation between Co - ventures is that of Co - Owners.
a) (i) is correct and (ii) is incorrect
b) (i) is incorrect and (ii) is correct
c) Both are correct
d) Both are incorrect
From the following information answer the question 14 and 15.
X and Y entered into a joint venture to act as underwriters of a newly formed company which issued 30,000 shares of RS.10 each. The extent of undertaking was 70% public subscribed for 20,000 shares and the underwriters duly discharge their obligations in consideration of a commission of 5%.
14. What will be the total amount of commission shown on the credit side of joint venture A/c?
a) RS. 3500
b) RS. 5000
c) RS. 10,500
d) RS. 15,000
15. What will be the amount of purchase of shares on the debit side of joint venture A/c?
a) RS. 30,000
b) RS. 70,000
c) RS. 1,00.000
d) RS. 2.00.000
16. In the books of consignee, if he receives Del - credere commission then entry for transferring bad - debt is ________ .
a) Commission A/c Dr
To Bad - debt A/c Cr
b) Profit & Loss A/c Dr
To Bad - debt A/c Cr
c) Bad - debt A/c Dr
To Debtors A/c Cr
d) None of these
17. Arun consigned 450 tones of coal at RS. 500 per tone to rajesh. Arun paid RS. 10,000 as freight. Due to normal wastage only 400 tones were received by rajesh. Rajesh also paid RS. 2000 as unloadig charge. He could sell only 350 tones. what will be the value of closing stock?
a) RS. 25,000
b) RS. 26,333
c) RS. 29,625
d) RS. None of these
18. Rita consigned 500 bats costing RS. 500 each to mita for sales. Mita was entitled to a commission of 5% on sales. She was also entitled for an additional commission of 25% of the excess if the sales price exceeds the cost price by more than 20%. All the bats were sold by mita at RS. 620 per bat. The total commission amount received by mita was ________
a) RS. 15,000
b) RS. 18,000
c) RS. 15,500
d) None of these
19. Joint venture may be described as ________ .
a) Limited liability partnership
b) Partnership
c) Temporary partnership
d) Company
20. __________ Method = Fixed assets + Current assets - Third party liability
a) Purchase consideration
b) Net assets
c) Proportionate capital
d) Lump sum
21. Ramesh and mahesh are partners, sharing profits and losses equally. In the balance sheet of the firm, capital of ramesh and mahesg is RS. 50,000 and RS. 60,000, general reserve is RS. 10,000 and workers' provident fund is RS. 10,000. Then ' Adjusted capital' of ramesh would be ________ .
a) RS. 55,000
b) RS. 60,000
c) RS. 50,000
d) None of these
22. In the absence of any agreement among the partners, the securities received as purchase consideration, are to be distributed among partners in their _________ ratio.
a) Capital
b) Final claim
c) Profit sharing
d) None of these
23. At the time of dissolution, if any partner takes over assets of firm. Then, __________ account will be __________ .
a) Capital, debited
b) Capital, credited
c) Revaluation, debited
d) None of these
24. If the purchase consideration paid is lesser than net assets taken over by company. Then difference of amount is treated as ___________ .
a) Capital reserve
b) Good will
c) General reserve
d) Both (a) & (b)
25. Goods sent on consignment A/c is a ___________ .
a) Real account
b) Nominal Account
c) Personal Account
d) None of these
26. Expenses till the goods reached the godown of consignee, which are non - recurring in nature and increase the value of goods are _______ expenses.
a) Direct
b) Indirect
c) Both (a) & (b)
d) None of these
27. Proforma invoice is prepared by __________ .
a) Consignor to consignee
b) Consignee to consignor
c) Consignee only
d) All of these
28. Account sales is prepared by ___________ .
a) Consignor to consignee
b) Consignee to consignor
c) Consignee only
d) All of these
29. Doctrine of implied authority is applicable to -
a) Partners in partnership firm
b) Consignee in consignment
c) Co - ventures in joint venture
d) None of these
30. When goods are sold on credit under the joint venture, the amount is debited to
a) Joint bank account
b) Joint venture account
c) Customers' account
d) Co - ventures' account
No comments:
Post a Comment