Accounting - Practice Test

[#2541] A partnership agreement comes to an end

(A) When a partner takes leave from the firm

(B) On a death of a partner

(C) On a partner becoming insolvent

(D) All of the above

Correct Answer

(D) All of the above

[#2542] Which of the following is not true?

(A) When all the forfeited shares are not reissued, the forfeited shares account will also show credit balance equal to gain on forfeiture of shares not yet reissued

(B) Losson the reissue of shares cannot be more than the gain on forfeiture of those shares

(C) At the time of forfeiture of shares, the securities premium is debited along with share capital when the premium has not been received

(D) When forfeited shares are issued at a premium, the premium amount is credited to the capital reserve account

Correct Answer

(D) When forfeited shares are issued at a premium, the premium amount is credited to the capital reserve account

[#2543] Which method of depreciation is suggested for coal mines:

(A) Diminishing Balance Method

(B) Fixed Instalment Method

(C) Sum of Years Digits Method

(D) Depletion Method

Correct Answer

(D) Depletion Method

[#2544] In case of sub-lease royalty earned by the lessor is credited to

(A) Sub-Lease Account

(B) Profit and Loss Account

(C) Short Working Account

(D) Royalty Receivable Account

Correct Answer

(D) Royalty Receivable Account

[#2545] Rs. 500 posted to wages account instead of machinery account. Identify the type of error?

(A) Clerical error

(B) Error of omission

(C) Error of principle

(D) Recording error

Correct Answer

(C) Error of principle

Accounting - Study Mode

[#2541] A partnership agreement comes to an end

Correct Answer

[#2542] Which of the following is not true?

Correct Answer

[#2543] Which method of depreciation is suggested for coal mines:

Correct Answer

[#2544] In case of sub-lease royalty earned by the lessor is credited to

Correct Answer

[#2545] Rs. 500 posted to wages account instead of machinery account. Identify the type of error?

Correct Answer