12th class Principles of Accounting MCQS Set 2

Single entry system is generally adopted by,

Small business concerns

Medium business concerns

Large business concerns

All of the above

We write depreciation on the

Debit side of profit and loss account

Credit side of trading account

Debit side of trading account

Credit side of profit and loss account

The valuation of goodwill arises on

All of the above

The dissolution or sale of firm’s business

The admission of a new partner

The retirement or death of a partner

In single entry system,

Nominal accounts are maintained

Personal accounts are maintained

Real accounts are maintained

None of the above

External causes of depreciation.

Obsolescence

All of these

Efflux of time

Accident

The remuneration of the consignee for selling the goods of the consignor is called

Salary

Dividend

Commission

Interest

Non-profit seeking organization income and expenditure account performs the same function as profit seeking organization’s

Balance sheet

Petty cash book

Bank account

Trading and profit and loss account

Consignee is

None of these

Principal

Debtor of the consignee

Owner

The court may dissolve the firm:

A business of the firm cannot be carried on except at a loss

When a partner has become of unsound mind

All of the above

A partner is guilty of misconduct in carrying on the business

The share of profit to a new partner in the future profits without any express agreement as to who will contribute to new partner’s share of profit is implied that old partners contribute

None of these

In their profit sharing ratio

Equally

In proportion of their capital