12th class Principles of Accounting MCQS
General reserve or accumulated profits at the time of dissolution is transferred to:
Solvent partners capital account
Realization account
All partners capital accounts
Insolvent partner’s capital account
The need for provision of depreciation is necessary to.
Ascertainment of true profit or loss
Ascertainment of true cost of production
Replacement of assets
All of these
Depreciation means:
Exhaustion of the effective life of an asset
Reduction in the value of fixed asset due to use in business
All of the above
Diminution in intrinsic value of an asset
Fluctuation
Is generally irregular
May rise or fall the value of an asset
Does not reduce productive capacity
All of these
The parties involved in consignment are
Four
Two
Five
Three
The manufacturer or wholesaler who sends his goods for sale purpose is known as
Agent
Consignor
Consignee
Drawer
Dissolution of firm by the consent of all the partners is called:
Dissolution on the happening of certain contingencies
Dissolution by notice
Dissolution by agreement
Dissolution by court
Decline in the value proportionate to the quantum of production e.g. mine, quarry etc.
Depreciation
Depletion
Wear and tear
Amortization
In case of retirement, goodwill raised with retiring partners share but written off to remaining partners in the:
Capital ratio
Gaining ratio
Sacrifice ratio
New ratio
In case of dissolution, the payment of unrecorded liability is debited to:
Liability account
Realization account
Revaluation account
Cash account
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