Accounts
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.
Firm
Hence, the correct option is 3.
Question : The firm of P, Q and R with profit sharing ratio of 3: 6:1, h.ad the balance in General Reserve Account amounting Rs. 90,000. S joined as a new partner and the new profit sharing ratio was decided to be 3 : 3 : 3 : 1. Partners decide to keep the General Reserve unchanged in the books of accounts. The effect will be:
Option 1: Q will be credited by Rs. 27,000
Option 2: R will be debited by Rs. 27,000
Option 3: P will be credited by Rs. 36.000
Option 4: P will be debited by Rs. 36,000
Correct Answer: Q will be credited by Rs. 27,000
Solution : Answer = Q will be credited by Rs. 27,000
O.R - N.R.
P = 3/10 - 3/10 = 0
Q = 6/10 - 3/10 = 3/10 x 90,000 = 27000
R = 1/10 - 3/10 = -2/10 x 90,000 = 18000
S = 1/10 = 1/10 x 90,000 = 9000
R's Capital A/c Dr 18000
S's Capital A/c Dr 9000
To Q's Capital A/c 27000 Hence, the correct option is 1.
Question : According to the data of 2011-12, Under casual workers, the major source of livelihood for both men and women accounts for
Option 1: 25%, 30%
Option 2: 29%, 31%
Option 3: 21%, 34%
Option 4: 24%, 36%.
Correct Answer: 29%, 31%
Solution : Under casual workers, the major source of livelihood for both men and women accounts for 29% and 31%. Hence Option B is correct.
Question : Anil and Sunil are partners sharing profit and losses in the ratio of 3:2. They changed their profit-sharing ratio to 2:5 w.e.f 1st April 2002. The assets were revalued and liabilities were re-assessed on that date which resulted in a gain of Rs 80,000. It will be transferred to their capital account by
Option 1: Debiting Anil and Sunil's accounts both by Rs 40,000 each
Option 2: Debiting Anil‘s capital account and Sunil‘s capital account by Rs 80,000 each
Option 3: Crediting Anil’s capital account by RS 48,000 and Sunil's Capital account by Rs 32,000
Option 4: Crediting Anil’s capital account and Sunil's capital account by Rs 80,000 each
Correct Answer: Crediting Anil’s capital account by RS 48,000 and Sunil's Capital account by Rs 32,000
Solution : Answer = Crediting Anil’s capital account by RS 48,000 and Sunil's capital account by Rs 32,000
Revaluation A/c Dr 80,000
To Anil's Capital A/c 48,000
To Sunil's Capital A/c 32,000
(Old Ratio = 3:2) Hence, the correct option is 3.
Question : On 1st April 2013, a Limited Company issued 11% Rs. 10,00,000 debentures at a discount of 6%, repayable at the end of 5 years at par. Assume that the accounts are closed on 31st March each year. Calculate the amount of discount to be written off at the end of March 31, 2016.
Option 1: Rs. 60,000
Option 2: Rs. 12,000
Option 3: Rs. 10,000
Option 4: Rs. 20,000
Correct Answer: Rs. 12,000
Solution : Answer = Rs. 12,000
Discount on issue of debentures = Rs.60,000. Amount of discount to be written off at the end of March 31, 2016, = $\frac{Rs.60,000}{5}$= Rs.12,000. Hence, the correct option is 2.
Question : X, Y and Z were in partnership sharing profits and losses in the ratio 3: 2: 1. Z retired from the firm on 1st April, 2016. After adjustments, his Capital Account shows a credit balance of Rs.1,00,000 on the date of retirement. Z is to be paid in four equal annual instalments from 31st March, 2017 along with interest @ 10% p.a. Accounts are closed on March 31, every year. Question: Installment to be paid on March 31, 2020 is
Option 1: Rs 32,500
Option 2: Rs 35,000
Option 3: Rs 30,000
Option 4: Rs 27,500
Correct Answer: Rs 27,500
Solution : Answer = Rs 27,500
Instalment paid on March 31, 2020
= 25000+ 2500 = 27500 Hence, the correct option is 4.
Question : X, Y and Z were in partnership sharing profits and losses in the ratio 3: 2: 1 . Z retired from the firm on 1st April, 2016. After adjustments, his Capital Account shows a credit balance of Rs.1,00,000 on the date of retirement. Z is to be paid in four equal annual instalments from 31st March, 2017 along with interest @ 10% p.a. Accounts are closed on March 31, every year. Question: Installment to be paid on March 31, 2019 is
Correct Answer: Rs 30,000
Solution : Answer = Rs 30,000
Instalment paid on March 31, 2019
= 25000 + 5000 =30,000 Hence, the correct option is 3.
Question :
On the retirement of Hari from the firm of Hari, Ram and Sharma, the Balance Sheet showed a credit balance of Rs. 12,000 in the Profit and Loss Account. For calculating the amount payable to Hari, this balance will be transferred
Option 1:
to the credit of the Capital Accounts of Hari, Ram and Sharma equally.
Option 2:
to the debit of the Capital Accounts of Hari, Ram and Sharma equally.
Option 3:
to the debit of the Capital Accounts of Ram and Sharma equally.
Option 4: to the credit of the Capital Accounts of Ram and Sharma equally.
Correct Answer:
Solution : Answer = to the credit of the Capital Accounts of Hari, Ram and Sharma equally.
In this scenario, the credit balance of Rs. 12,000 in the Profit and Loss Account represents profit earned by the firm. Upon Hari's retirement, this profit should be distributed among all partners, including Hari, as per their profit-sharing ratio. Therefore, the amount will be transferred to the credit of the Capital Accounts of Hari, Ram, and Sharma equally. Hence, the correct option is 1.
Question : When the Company decided not to record the issue of Debentures as Collateral Security. Which of the following accounts will be credited?
Option 1: % debentures
Option 2: No entry required
Option 3: Capital reserve
Option 4: Debenture suspense account
Correct Answer: No entry required
Solution : Answer = No entry required
If the company decides not to record the issue of debentures as collateral security, no entry is required in the accounting records because no transaction is taking place. Therefore, no account needs to be credited in this scenario, hence the correct answer is "No entry required." Hence, the correct option is 2.
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