Question 1

On amalgamation, Share issue Expenses A/c appearing on Assets side of the balance sheet of the vendor company

Accepted Answer

A) is closed by debit to Realisation A/c 
B) is closed by debit to Equity Shareholders A/c 
C) is closed by debit to Profit & Loss A/c 
D) is closed by credit to Equity Shareholders A/c 
A) is closed by debit to Realisation A/c 
B) is closed by debit to Equity Shareholders A/c 
C) is closed by debit to Profit & Loss A/c 
D) is closed by credit to Equity Shareholders A/c B

Question 2

On amalgamation, if the dissolution expenses are paid as well as borne by the purchasing company

Accepted Answer

A) Entries are passed in the books of the purchasing as well as the vendor company 
B) no entry is passed in the books of the vendor company 
C) no entry is passed in the books of the purchasing company 
D) no entry is passed in the books of the purchasing as well as the vendor company 
A) Entries are passed in the books of the purchasing as well as the vendor company 
B) no entry is passed in the books of the vendor company 
C) no entry is passed in the books of the purchasing company 
D) no entry is passed in the books of the purchasing as well as the vendor company B

Question 3

The Charter document or the formation document of LLP is called as

Accepted Answer

A) Memorandum 
B) articles of association 
C) LLP agreement 
D) Partnership agreement 
A) Memorandum 
B) articles of association 
C) LLP agreement 
D) Partnership agreement C

Question 4

Single entry system contains

Accepted Answer

A) All the relevant accounts 
B) Only personal accounts 
C) Real accounts only 
D) Personal account and cash book 
A) All the relevant accounts 
B) Only personal accounts 
C) Real accounts only 
D) Personal account and cash book

Question 5

When closing capital is less than opening capital, it denotes

Accepted Answer

A) profit 
B) loss 
C) profit, if there is no introduction of fresh capital 
D) no profit-no loss 
A) profit 
B) loss 
C) profit, if there is no introduction of fresh capital 
D) no profit-no loss

Question 6

In absence of LLP agreement the mutual rights of partners and the relation to LLP will be determined as per schedule _of LLP Act 2008

Accepted Answer

A) I 
B) II 
C) III 
D) IV 
A) I 
B) II 
C) III 
D) IV

Question 7

Businessmen may intentionally not maintain proper accounts

Accepted Answer

A) to evade taxation. 
B) to prevent themselves from destruction of books due to uncertainty. 
C) as they are ignorant of the legal entity assumption. 
D) as they are ignorant of the double entry accounting principles. 
A) to evade taxation. 
B) to prevent themselves from destruction of books due to uncertainty. 
C) as they are ignorant of the legal entity assumption. 
D) as they are ignorant of the double entry accounting principles.

Question 8

If Building (closing) Rs.100,000, Land (opening) Rs. 100,000, Creditors (opening) Rs.10,000 then opening capital:

Accepted Answer

A) Rs. 190,000 
B) Rs. 210,000 
C) Rs. 90,000 
D) None of these 
A) Rs. 190,000 
B) Rs. 210,000 
C) Rs. 90,000 
D) None of these

Question 9

If opening capital is Rs.10,000 & closing capital is Rs.15,000 then profit or loss:

Accepted Answer

A) Loss of Rs.5,000 
B) Profit of Rs.2,500 
C) Profit of Rs.5,000 
D) None of these 
A) Loss of Rs.5,000 
B) Profit of Rs.2,500 
C) Profit of Rs.5,000 
D) None of these

Question 10

Prepaid expenses are shown under

Accepted Answer

A) Loans and advances asset side 
B) Loans and advances liability side 
C) In the p and L account 
D) They are ignored 
A) Loans and advances asset side 
B) Loans and advances liability side 
C) In the p and L account 
D) They are ignored

Question 11

_________________is a person who is designated as such in the incorporation documents of the limited liability partnership agreement

Accepted Answer

A) Director 
B) Manager 
C) Designated Partner 
D) Partner 
A) Director 
B) Manager 
C) Designated Partner 
D) Partner

Question 12

In single entry system profit is calculated by:

Accepted Answer

A) Opening capital + Drawing - Fresh Capital - Closing Capital 
B) Closing capital + Drawing + Fresh Capital - Opening Capital 
C) Closing capital - Drawing + Fresh Capital - Opening Capital 
D) Closing capital + Drawing - Fresh Capital - Opening Capital 
A) Opening capital + Drawing - Fresh Capital - Closing Capital 
B) Closing capital + Drawing + Fresh Capital - Opening Capital 
C) Closing capital - Drawing + Fresh Capital - Opening Capital 
D) Closing capital + Drawing - Fresh Capital - Opening Capital

Question 13

Amalgamation adjustment reserve is opened in the books of transferee company to incorporate

Accepted Answer

A) The assets of the transferor company 
B) The liabilities of the transferor company 
C) The statutory reserves of the transferor company 
D) Goodwill of Transferor company 
A) The assets of the transferor company 
B) The liabilities of the transferor company 
C) The statutory reserves of the transferor company 
D) Goodwill of Transferor company

Question 14

Opening capital is obtained by preparing:

Accepted Answer

A) Debtors account 
B) Creditors account 
C) Opening statement of affairs 
D) Cash account 
A) Debtors account 
B) Creditors account 
C) Opening statement of affairs 
D) Cash account

Question 15

Statements of assets & liabilities prepared under single entry system is called:

Accepted Answer

A) Balance sheet 
B) Profit & loss statement 
C) Statement of affairs 
D) Income Statement 
A) Balance sheet 
B) Profit & loss statement 
C) Statement of affairs 
D) Income Statement

Question 16

If two or more company come together and form anew company which takes over the assets and liabilities of the vendor companies it is called as

Accepted Answer

A) external reconstruction 
B) Internal Reconstruction 
C) absorption 
D) Amalgamation 
A) external reconstruction 
B) Internal Reconstruction 
C) absorption 
D) Amalgamation

Question 17

In Single entry mostly:

Accepted Answer

A) Personal aspects of transaction are recorded 
B) Nominal aspects of transaction are recorded 
C) Real aspects of transaction are recorded 
D) All of the above 
A) Personal aspects of transaction are recorded 
B) Nominal aspects of transaction are recorded 
C) Real aspects of transaction are recorded 
D) All of the above

Question 18

In single entry two-fold aspect of transaction are not recorded, so it is:

Accepted Answer

A) Complete and Scientific 
B) Incomplete and Unscientific 
C) Complete and Unscientific 
D) Incomplete and Scientific 
A) Complete and Scientific 
B) Incomplete and Unscientific 
C) Complete and Unscientific 
D) Incomplete and Scientific

Question 19

The amount of credit purchases can be ascertained by preparing a

Accepted Answer

A) Total Creditors Account 
B) Memorandum Trading Account 
C) Opening Statement of Affairs 
D) Closing Statement of Affairs 
A) Total Creditors Account 
B) Memorandum Trading Account 
C) Opening Statement of Affairs 
D) Closing Statement of Affairs

Question 20

In the case of net worth method of single entry system, the net profit is ascertained by

Accepted Answer

A) preparing a Trading and Profit & Loss Account 
B) comparing the capital in the beginning and at the end of the accounting period 
C) adopting another method 
D) none of the above 
A) preparing a Trading and Profit & Loss Account 
B) comparing the capital in the beginning and at the end of the accounting period 
C) adopting another method 
D) none of the above

Exam 46: Amalgamation, Llp, and Single Entry System

On amalgamation, Share issue Expenses A/c appearing on Assets side of the balance sheet of the vendor company

On amalgamation, if the dissolution expenses are paid as well as borne by the purchasing company

The Charter document or the formation document of LLP is called as

Single entry system contains

When closing capital is less than opening capital, it denotes

In absence of LLP agreement the mutual rights of partners and the relation to LLP will be determined as per schedule _of LLP Act 2008

Businessmen may intentionally not maintain proper accounts

If Building (closing) Rs.100,000, Land (opening) Rs. 100,000, Creditors (opening) Rs.10,000 then opening capital:

If opening capital is Rs.10,000 & closing capital is Rs.15,000 then profit or loss:

Prepaid expenses are shown under

_________________is a person who is designated as such in the incorporation documents of the limited liability partnership agreement

In single entry system profit is calculated by:

Amalgamation adjustment reserve is opened in the books of transferee company to incorporate

Opening capital is obtained by preparing:

Statements of assets & liabilities prepared under single entry system is called:

If two or more company come together and form anew company which takes over the assets and liabilities of the vendor companies it is called as

In Single entry mostly:

In single entry two-fold aspect of transaction are not recorded, so it is:

The amount of credit purchases can be ascertained by preparing a

In the case of net worth method of single entry system, the net profit is ascertained by

Exploring Features and Advantages of Computerized Accounting Systems

Exploring Computerized Accounting Systems and Software

Non-Profit Organizations and Financial Statements

Not-For-Profit Organizations and Financial Accounts

Goodwill and Intangible Assets

Valuation and Calculation of Goodwill

Understanding the Concepts of Lessor, Lessee, and Minimum Rent

Royalty Accounting and Partnership Firms

Accounting

Accounting and Corporate Finance

Accounting and Finance

Depreciation, Share Capital, and Forfeiture of Shares

Financial Statements and Accounting Principles

Insurance Provision and Accounting Standards

Formation and Capital Structure of Public Companies

Share Forfeiture, Debentures, and Sinking Fund

Financial Accounting and Banking

Insurance and General Insurance Companies: Understanding Terms and Concepts

Single Entry System and Company Ownership

Share Capital and Shareholders in a Company

Debentures, Bonds, and Shares

Accounting Concepts and Principles

Accounting Concepts and Practices

Financial Statements and Accounting for Nonprofit Organizations

Hire Purchase, Sale of Goods, and Bookkeeping

Accounting and Bookkeeping

Allocation of Selling Expenses Among Departments Based on Sales

Accounting Concepts and Systems

Accounting and Financial Transactions

Ac Types, Balances, and Entries

Errors, Adjustments, and Expenditures in Accounting

Capitalization, Errors, Cash Book, and Types of Accounts

Revenue Recognition and Expenditure Classification

Depreciation and Asset Provision

Accounting Adjustments and Financial Statement Treatment

Balance Sheet and Profit Loss Account

Accounting and Financial Management

Bills of Exchange, Consignment, and Partnership

Accounting Standards and Joint Ventures

Accounting and Financial Management : Part A

Accounting and Financial Management : Part B

Accounting: Interest, Bill, Partnership Agreement,insurance, Contingent Liability, and Business Resources

Fundamentals of Accounting: Objectives, Concepts, and Principles

Depreciation and Reserves: Understanding the Accounting Concepts

Underwriting and Creditor Questions in Company Affairs

Single Entry System and Profit Calculation

Accounting for Receipts, Payments, Income, and Expenditure in Consignment and Joint Venture Businesses

Accounting for Co-Venturers, Consignments, and Branches

Accounting Arrangements and Operations for Branches

Filters