CHAPTER 2 - PARTNERSHIP FINAL A/CS A/c-Part-1

S.G.A Education Institute Ph:-65426337

MULTIPLE CHOICE QUESTION


1. All the accounting transactions of partners related with the firm are shown in
(a) Profit / Loss a/c (b) Trading a/c (c) Profit / loss appropriation a/c (d)Balance sheet.

2. Which of the following is not mandatory in preparation of final accounts.
(a) Profit/ Loss a/c (b) Profit / loss appropriation a/c (c) Balance sheet. (d) Trading a/c

3. From which of the following the final status of a firm can be recognized.
(a) Partners capital a/c (b) Profit / loss appropriation a/c (c) Profit / loss a/c (d) Balance sheet.

4. With the help of which of the following firms profitability is measured.
(a) Trading a/c (b) Profit / loss a/c (c) Partners current a/c (d) Balance sheet.

5. Debit balance of trading a/c suggests
(a) Gross profit (b) Gross loss (c) Net profit (d)Net loss

6. Which of the following is an administrative expense.
(a) Salary of salesman (b) Interest on loan
(c) Depreciation of office furniture (d) Audit fees.

7. Which of the following is not an administrative expense.
(a) Salary (b) Insurance premium (c) Bank charges (d)Contribution to PF.

8. Which of the following not a selling expense.
(a) Showroom expenses (b) Packing changes (c)Discount allowed (d)Interest on loan

CHAPTER 2 - PARTNERSHIP FINAL A/CS A/c-Part-1

S.G.A Education Institute Ph:-65426337
9. Which of the following is a fixed asset?
(a)Goodwill (b) Fixed deposit (c) Stock (d)Loses tools

10. Which of the following is not a current asset?
(a) Prepaid rent (b) Bills receivable (c) Trademark (d) Debtors

11. Which of the following is a financial expense?
(a) Income tax (b) Legal charges (c) Insurance premium (d)Audit fees.

12. Where will you show sale of scrapped goods in the final a/cs of a firm.
(a) Profit / loss a/c credit side (b) Balance sheet assets side
(c) Trading a/c credit side (d)Trading a/c debit side

13. Which of the following is not a financial expense?
(a) Bank commission (b) Interest on overdraft (c) Bank charges (d) Rent paid.

14. Where will you disclose amount of closing stock appearing in trial balance
(a) Trading a/c (credit side) (b) Profit / loss a/c credit side
(c) Balance sheet assets side (d)Trading a/c debit side

15. Where will you show technical expense paid in final a/cs.
(a) Trading a/c debit (b) Profit / loss a/c (c) Balance sheet asset side.

16. in trial balance of a firm carriage expenses shows a debit balance of Rs.4500. in
adjustment it is mentioned that 10% carriage expense is outstanding. What is the
amount of outstanding carriage?
(a)Rs.450 (b) Rs.500 (c) Rs.540 (d) Rs.405

CHAPTER 2 - PARTNERSHIP FINAL A/CS A/c-Part-1

S.G.A Education Institute Ph:-65426337
17. where would you disclose dead stock of Rs.300 in final accounts, which is given
in trial balance.
(a) debit to trading account (b) credit to trading account
(c) debit to profit and loss account (d)assets side

18. total of credit note book is over cast by Rs.2000. what will be accounting effect of
this adjustment?
(a) to be added to purchases. (b) to be added to purchases and creditors both
(c) to be added to sales (d) to be added to sale and debtors both

19. the cost price of closing stock is Rs.20,000. Out of which market value of 10%
stock is 20% less. While market value of 20% stock is 10% more? What will be the
value of closing stock?
(a) Rs.20,000 (b) Rs.19,600 (c) Rs.22,000 (d) Rs.18,000

20. the balance of lease hold building on 31/12/06 is Rs.70,000(Acquired on 1-7-2004
for 5 years) what amount will be written off during the year
(a) Rs.14,000 (b) Rs.7000 (c) Rs.3500 (d) Rs.20,000

21. Where would you disclose the amount of depreciation on factory building which
appears the trial balance?
(a) debited to profit and loss account (b) debited to trading account
(c) subtracted from building account in the balance sheet (d)debited to profit and loss appropriation a/c

22. Carriage expense paid is Rs.900. 1/3 carriage expense is outstanding. The
proportion of carriage inward and outward is 2:3. What will be total carriage inward?
(a) Rs.400 (b) Rs.540 (c) Rs.810 (d) Rs.300

CHAPTER 2 - PARTNERSHIP FINAL A/CS A/c-Part-1

S.G.A Education Institute Ph:-65426337
23. The accounting year of the firm ends of 31-3-2006 and firm has received
Rs.10,000 as candidates premium on 1-10-2005 for 2 years. What amount will be
shown at liability side of B/s. as advance premium?
(a)Rs.10,000 (b) Rs.4000 (c) Rs.8000 (d) Rs.2000

24. In trial balance of a firm furniture of Rs.9000 and depreciation on furniture of
Rs.1000 are shown, what will be the total amount of depreciation if depreciation rate
is increased by 2%?
(a) Rs.1000 (b)Rs.1200 (c) Rs.1020 (d) Rs.180

25. The accounting year of the firm is ending on 31-03-2006. Insurance premium
Rs.1800 is paid for the year ending on 30-06-2006. What amount of prepaid insurance
will be shown on the assets side of balance sheet?
(a) Rs.600 (b)Rs.450 (c) Rs.1350 (d) Rs.1200

26. Which of the following expenses is the financial expense of a firm?
(a) rent and taxes (b) salary (c) interest on capital (d) interest on drawings

27. Which of the following expenses is not selling and distribution expense?
(a)carriage inward (b) carriage outward (c) packing expenses (d)salary of salesman

28. Which of the following assets is a current asset?
(a) building (b) machine (c) patent (d) bills receivable

29. Which of the following assets is not a fixed assets?
(a) vehicles (b) goodwill (c) lease hold building (d) stock of goods

30. Which of the following expense is an administrative expenses?
(a) interest on capital (b) bad debts (c) depreciation on furniture (d) salary of employees