Commerce MCQ Questions and Answers

The balance of old provision for doubtful debts on 1-4-2006 was Rs. 10,000. The bad debts written off during the year 2006-07 amounted to Rs. 12,000, and the new provision requiredon 31-3-2007 was Rs. 15,000. What is the total amount to be debited to profit and loss account on account of bad debts and the provision for doubtful debts ?

A and B sharing profit in the ratio of 3 : 2 and having capitals of Rs. 30,000 (for A) and Rs. 15,000 (for B), decided to dissolve their firm. After paying off all liabilities, cash realized from various assets is Rs. 15,000. How will this amount be distributed to A and B ? (a) A–Rs. 9,000 and B–Rs. 6,000 (b) A–Rs. 10,000 and B–Rs. 5,000  (c) A–Rs. 7,500 and B–Rs. 7,500 (c) A–Rs. 12,000 and B–Rs. 3,000  (d) A–Rs. 12,000 and B–Rs. 3,000 109. X and Y sharing profits in the ratio of 7 : 3 admit Z on 37th share in the new firm. Z takes 27 th from X and 17th from Y.What is the new ratio among X, Y and Z ?

Given- Opening inventory : Rs. 3,500 Closing inventory : Rs. 1,500 Cost of goods sold : Rs. 22,000 What is the amount of purchase ?

Consider the following- Amortization refers to writing off the value of (1) tangible assets (2) intangible assets (3) fictitious assets Which of the above is/are correct ?

The following information is disclosed by ‘A’- Rs. Provision for doubtful debts as on 1.1.2006 : 6,000 Bad debts written off during the year 2006 : 1,200 Total debtors as on 31.12.2006 : 80,000 A provision for Doubtful Debts to be made @ 5% What is the amount to be shown on the credit side of P/L A/c ?

What is reduction of paid-up share capital called ?

Under which of the following methods of depreciation the amount of an asset is never reduced to zero ?

An insurance claim of Rs. 300 was accepted in respect of stock (inventory) of Rs. 500, which was destroyed by fire. Rs. 200 not covered by insurance should be debited to which one of the following ?

Debtors turnover ratio is 4. What is the average collection period ?

The net profits of a business after providing for taxation for the past five years are Rs. 80,000, Rs. 85,000, Rs. 92,000, Rs. 1,05,000 and Rs. 1,18,000. Capital employed in the business is Rs. 8,00,000. Normal rate of return is 10%. What is the value of goodwill on the basis of capitalization of super profit method ?