12th class Principles of Accounting MCQS Set 3

Maximum members in public company are,

None of these

100

100

10

According to the decision of Garner Vs Murray rule, the loss of insolvent partner is to be shared by solvent partners in the:

Gaining ratio

Old profit sharing ratio

Capital ratio

New profit sharing ratio

In the absence of an agreement, profit and loss are divided by partners in the ratio of

Interest on capital

Time devoted by each partner

Equally

Capital

Current accounts of the partners should be opened when the capitals are

Variable

Fixed

Either fixed or fluctuating

Fluctuating

Goodwiil is an

Wasting asset

Tangible asset

Fictitious asset

Intangible asset

The relationship between seller and buyer of goods is that of a

Consignor and customer

Banker and customer

Debtor and creditor

Principal and agent

Double entry system means

The two sides of every transaction are recorded

Double accounting

The recording of same things twice

Entry at two dates

Closing capital in single entry system is calculated by preparing,

Closing balance sheet

Opening balance sheet

Opening statement of affairs

Closing statement of affairs

Which business has the perpetual existence,

Partnership

Sole proprietorship

a and “b”

Joint stock company

In case of dissolution, the sale of unrecorded asset is debited to:

Cash account

Realization account

Sale account

Asset account