12th class Principles of Accounting MCQS Set 3

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12th class Principles of Accounting MCQS


Single entry system is suitable where,
Small amount of cash transactions are more
Largeamount of cash transaction are more
Smallamount of cash transaction are more
Large amount of cash transaction are more

Suppose A, B & C are partners, sharing profits in the ratio of 1/2,1/3,1/6 respectively, What will be the new ratio if A retires in the absence of an agreement?
1/3 : 1/6
1/2 : 1/6
1/3 : 1/5
1/3 : 1/2

In increased net worth method, profit or loss is calculated by preparing,
Profit and loss account
Balance sheet
Income and expenditure account
Statement of profit or loss

Single entry system contains,
A cash book
Ledger accounts for individual customers and creditors
A daybook or general journal
All of the above

In receipt and payments account
No ledger reference is recorded
No narration is written
All of the above
Daily cash balance cannot be ascertained

The official signature of the company,
Common act
Common seal
Partnership deed
1984

Reserve of bad and doubtful appearing in the books at the time of dissolution is transferred to:
Revaluation account
Debtors account
Realization account
Reserve for bad debts account

In the absence of an agreement, interest on loan advanced by a partner to the firm is allowed at the rate of
Five per cent
Twelve per cent
Six per cent
Seven percent

The profit on the revaluation of assets and liabilities on the retirement of a partner should be credited to the capital account / accounts of:
All the partners
Retiring partner
Remaining partners
None of these

On retirement of a partner in partnership it is necessary to calculate
Goodwill
Revaluation of assets and liabilities
New profit sharing ratio
All of these

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