12th class Principles of Accounting MCQS Set 2

The gradual decrease in the efficiency of an asset is called:

Reconstruction

Appreciation

Depreciation

Construction

According to provision of companies ordinance 1984 dividend cannot be declared without.

Appreciation

Replacement of assets

a and “b”

Depreciation

Internal causes of depreciation:

Obsolescence

Depletion

Wear and tear

a and “b”

In consignment all the expenses, either paid by the consignor himself or by the consignee are borne by the

Consignor

Purchases

Consignee

All of these

When the incoming partner pays the firm for goodwill in cash, the amount should be debited in firms books to

Goodwill account

All of the above

Capital account of the incoming partner

Cash account

In income and expenditure account

Expense are recorded on debit side

Does not start with any opening balance

Revenues are recorded on credit side

All of the above

Joint life policy at the time of dissolution is transferred to:

Insolvent partner’s capital account

All partners capital account

Realization account

Solvent partners capital

In case of retirement, revaluation loss should be debited to:

Retiring partner’s capital A/c

Revaluation A/c

All partners capital A/c

Remaining partners capital A/c

Partnership act is

1984

1912

1932

1962

In case of retirement, when goodwill is raised with retiring partner’s share but written off is credited to:

Goodwill A/c

Retiring partners capital A/c

Remaining partners capital A/c

Cash A/c