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Accountancy XII

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

On dissolution of a firm, an unrecorded furniture of the value of ₹5,000 was taken up by a partner for ₹4,300. Which Account will be credited and by how much amount? :

a)

Cash Account by ₹4,300

b)

Realisation Account by ₹700

c)

Partner’s Capital Account by ₹5,000

d)

Realisation Account by ₹4,300

2.

In the Balance Sheet Total Debtors appear at ₹50,000 and Provision for Doubtful Debts appear at ₹1,500. How much amount will be realised from Debtors, if bad debts amount to ₹10,000 and remaining debtors are realised at a discount of 5%

a)

₹38,000

b)

₹36,500

c)

₹36,575

d)

₹39,500

3.

How much amount will be paid to Creditors for ₹25,000 if ₹5,000 of the creditors are not to be paid and the remaining creditors agreed to accept 5% less amount?

a)

₹18,750

b)

₹19,000

c)

₹19,750

d)

₹20,000

4.

If total assets of a firm are ₹12,00,000 and total liabilities are ₹2,40,000, what will be the capitals of P, Q and R if they share profits in the ratio of their capitals and profit sharing ratio is 1 : 2 : 3.

a)

P ₹4,80,000; Q ₹3,20,000; R ₹1,60,000

b)

P ₹1,60,000; Q ₹3,20,000; R ₹4,80,000

c)

P ₹2,00,000; Q ₹4,00,000; R ₹6,00,000

d)

P ₹6,00,000; Q ₹4,00,000; R ₹2,00,000

5.

At the time of dissolution of a firm, Creditors are ₹70,000; Partners’ capital is ₹1,20,000; Cash Balance is ₹10,000. Other assets realised ₹1,50,000. Profit/Loss in the realisation account will be :

a)

₹60,000 (Loss)

b)

₹80,000 (Profit)

c)

₹40,000 (Loss)

d)

₹30,000 (Loss)

6.

On dissolution of a firm, firm’s Balance Sheet total is ₹77,000. On the assets side of the Balance Sheet items were shown preliminary expenses ₹2,000; Profit & Loss Account (Debit) Balance ₹4,000 and Cash Balance ₹1,800. Loss on realisation was ₹6,300. Total assets (including cash balance) realised will be :

a)

₹69,200

b)

₹71,000

c)

₹64,700

d)

₹62,900

7.

Sundry Creditors amounted to ?8,000. These were paid at a discount of 5%. Realisation account will be debited by

a)

₹8,000

b)

₹7,600

c)

₹8,400

d)

₹400

8.

In case of dissolution, assets are transferred to Realisation Account:

a)

At Book Value

b)

At Market Value

c)

Cost or Market Value, whichever is lower

d)

None of the Above

9.

At the time of dissolution of partnership firm, the amount of ‘Bills Payable’ shown in the liability side of Balance Sheet is transferred to :

a)

Capital Accounts of Partners

b)

Realisation Account

c)

Cash Account

d)

Loan Account of Partners

10.

There was an Unrecorded asset of ?2,000 which was taken over by a partner at ? 1,500. Partner’s Capital Account will be debited by

a)

₹2,000

b)

₹1,500

c)

₹500

d)

₹3,500

11.

In the cash flow statement if the company invests more in fixed assets and short term financial investments, it would result to:

a)

decreased cash

b)

increased cash

c)

increased equity

d)

increased liabilities

12.

Claims received from Insurance Companies are treated as ______.

a)

Operating Cash Inflow

b)

Investing Cash Inflow

c)

Financing Cash Inflow

d)

None of the above

13.

Which of the following come under investing activities in the cash flow?

a)

Sale of fixed assets

b)

The interest that is received

c)

Dividend received

d)

All of the above

14.

Which of the following statements is/are correct?

a)

Dividend paid is always shown as operating activity.

b)

Depreciation and amortization, being non-cash expenses, are deducted from net profit before tax and extraordinary items.

c)

Both (a) and (b)

d)

None of these

15.

Assertion (A): Depreciation is added back to net profit while calculating cash flows from operating activities

Reason (R): Depreciation is a noncash expense. It had reduced the net profit while there is no cash flow

a)

Both assertion and reason are true. Reason is a correct explanation of assertion.

b)

Both assertion and reason are true but reason is not the correct explanation of assertion

c)

Both assertion and reason are false

d)

Assertion is true but Reason is false

16.

The activity which is recorded as investing activity in cash flow is:

a)

Sale of investment by non-financial enterprise

b)

Issuing a debenture

c)

Paying back a loan

d)

The raw material purchased with cash

17.

Which of the following are the objectives of the cash flow statement?

a)

The cash basis of the accounting

b)

The credit basis of the accounting

c)

The accrual basis of the accounting

d)

None of the above

18.

Issue of Bonus shares will result in inflow /outflow / no flow in Cash flow statement

a)

Inflow

b)

Outflow

c)

No flow

d)

None of the above

19.

Cash flow statement is prepared under -

a)

AS-6(REVISED)

b)

AS-9(REVISED)

c)

AS-3(REVISED)

d)

None of the above

20.

While calculating operating profit, which will be added to net profit?

a)

Interest Received

b)

Profit on Sale of Asset

c)

Increase in General Reserve

d)

Refund of Tax