Business studies Mcqs, Accounts Mcqs, Business studies notes,Quiz and case Based Questions, Quizizz

  Consumer protection (Question Bank) 1. ____________________states that a consumer should know the reliefs available to him in case of product or service falls short of his expectations . (a) Right to Safety (b) Right to Seek Redressal (c) Right to be informed (d) Right to Consumer Education 2. The Consumer Protection Act provides relief to customers such as replacement of product , removal of defect in the product, compensation for any loss or injury suffered by the consumer. Which consumer right has been highlighted in this statement . (a)Right to Safety (b) Right to Seek Redressal (c) Right to be informed (d) Right to Consumer Education 3. _______________states that, the consumer has a right to pick a product from a variety of products at competitive prices. (a)Right to Safety (b) Right to choose (c) Right to be informed (d) Right to Consumer Education 4. Most of the reputed firms have set up consumer service and grievance cells to listen to the consumers complaints and take ap...

 ( Change in Profit Sharing Ratio of Existing Partners) Topic : Treatment of Reserves/Profits (Accumulated) 1. Why is it necessary to distribute Accumulated Reserves, Profits & Losses at the time of change in profit sharing ratio?[1] 2. State the ratio in which the partners share all the accumulated profits, reserves, losses and fictitious assets in case of change in profit sharing ratio. [1] 3. State any two occasions on which reconstitution of partnership firm can take place. [1] 4. A, B and C are partners in a firm sharing profits in the ratio of 3:3:2. They decided to share profits equally w.e.f. April 1, 2014. On that date, the profit and loss account showed the credit balance of Rs.24,000. Instead of closing the Profit and Loss Account, it was decided to record an adjustment entry reflecting the change in the profit sharing ratio. Record necessary journal entry to effect to the same. [3] 5. Vinod, Sunita and Simran are partners in a firm sharing profits in the ratio of 3:...

  (Change in Profit Sharing Ratio of Existing Partners) Topic : Treatment of Goodwill 1. Vinod and Kumar were partners in a firm sharing profits in 3:2 ratio. From 1st March, 2013 they decided to change it to 3:1. For this purpose the goodwill of the firm was valued at Rs.60,000. Give necessary journal entry for the treatment of goodwill.                             [3] 2. X, Y and Z were partners sharing profits and losses in the ratio of 4:3:2. Goodwill does not appear in the books but it is worth Rs.72,000. The partners decided to share future profits in equal proportions. Give a journal entry to record the above change and show gain/loss of partners due to change in ratio.                                                                  ...

                                     (Change in Profit Sharing Ratio of Existing Partners)                                                    Topic : Change in Ratio 1. What is meant by Reconstitution of a Firm? [1] 2. What is meant by Change in Profit Sharing Ratio? [1] 3. What are the main occasions on which reconstitution of partnership firm can take place? [1 4. What adjustments are required at the time of change in profit sharing ratio? [1] 5. Why are “Reserves and Surplus” distributed at the time of reconstitution of the firm? [1] 6. Why is it necessary to revalue the assets and liabilities of a firm on its reconstitution? Explain briefly.                                  ...

  Topic : Capitalisation Method 1. Give the formula of Goodwill by ‘Capitalisation of Average Profits’ Method. [1] 2. Give the formula for calculation of Goodwill by ‘Capitalisation of Super Profit’ Method. [1] 3. Why is Goodwill considered as an intangible asset but not a Fictitious Asset? [1] 4. A partnership firm earned net profits during the last three years as follows: [4]

Topic : Super Profit Method  1. What is meant by Super Profit Method? [1] 2. What are the four steps involved in calculating goodwill through Super Profit? [1] 3. If the amount of super profit is negative, what does it indicate? [1] 4. Differentiate between Average Profit Method and Super Profit Method [3] 5. The books of a business firm showed that the capital employed on 31 December 2013 was Rs.10,00,000 and the profits for the last five years were: 2010 Rs.80,000 2011 Rs.1,00,000 2012 Rs.1,10,000 2013 Rs.1,40,000 2014 Rs.1,70,000 You are required to find out the value of goodwill based on 3 years purchase of the super profits of the business. Given that the normal rate of return is 10%.           [3] 6. The books of a business firm showed that the capital employed on 31 December 2013 was Rs.20,00,000 and the profits for the last five years were: 2010 Rs.2,60,000 2011 Rs.2,80,000 2012 Rs.2,70,000 2013 Rs.2,50,000 2014 Rs.2,10,000 You are required to ...

  Topic : Average/Weighted Average Profit Method 1. Define Goodwill [1] 2. List any four factors affecting goodwill. [1] 3. How does the factor ‘Quality of Products’ affect the goodwill of a firm? [1] 4. How does the factor ‘Location’ affect the goodwill of a firm? [1] 5. How does the factor ‘Efficiency of Management’ affect the goodwill of a firm? [1] 6. How does the market situation affect the value of goodwill of a firm? [1] 7. How does the nature of business affect the value of goodwill of a firm? [1] 8. Describe the need for valuation of goodwill. [3] 9. The profit for the last five years of a firm were as follows: Year 2010 Rs.4,00,000; Year 2011 Rs.3,98,000; Year 2012 Rs.4,50,000; Year 2013 Rs.4,45,000 and Year 2014 Rs.5,00,000. Calculate goodwill of the firm on the basis of 4 years purchase of 5 years average profits.        (3) 10. Compute the value of goodwill on the basis of four years purchases of the average profits based on the last five years. Yea...

(Basics of Partnership) Topic : In the absence of Partnership Deed  1. State the provisions of ‘Indian Partnership Act, 1932’ in the absence of partnership deed regarding (i) Interest on Partner’s Drawings and (ii) Interest on Advances other than capital. [1] 2. X and Y are partners in a firm without a partnership deed. X is active partner and claims a salary of Rs.36,000 per month. State with reason whether the claim is valid or not. [1] 3. Amit has provided a capital of Rs.1,00,000 where as Vinod had provided Rs.20,000 only as capital. Vinod however has provided Rs.40,000 as loan to the firm. There is no partnership agreement. Vinod claims interest of Rs.2,400. Whereas other partners do not want to give any interest. State giving reason who is correct in this case. [1] 4. A and B started business on July 1, 2004, each partner contributing Rs.1,50,000 as his share of capital. Three months later, on October 1, 2004, B makes an additional contribution of Rs.1,00,000 which is treated...

(Basics of Partnership)   Topic : Guarantee of Profits  1. State the meaning of Guarantee of Minimum profit. [1] 2. X, Y and Z were partners, sharing profits in the ratio of 2:2:1. Z was guaranteed a minimum profit of Rs.20,000. The profits of the firm for the year ended 31.3.2000 were   Rs.80,000. Prepare P&L Appropriation Account.                                             [3] 3. X and Y are sharing profits in the ratio of 3:2. Z was admitted for 1/6th share of profit with a minimum guaranteed amount of Rs.20,000. The firm earned a profit at the end of first financial year Rs.1,08,000. Find out the share of profit which X, Y and Z will get.        [3] 4. A, B and C were partners in a firm sharing profits in 2:3:5 ratio. A was guaranteed a minimum profit of Rs.1,00,000. Any deficiency on this account was to be borne by C. the ne...

(Basics of Partnership)  Topic : Past Adjustments  1. Vinod and Kumar were partners in a firm sharing profits in the ratio of 3:5. Their fixed capitals were Rs.2,50,000 and Rs.4,50,000 respectively. After the final accounts of the year had been closed, it was found that interest on capital at 10% per annum as provided in the partnership agreement has not been credited to the capital accounts of the partners. Give necessary adjustment entry. [3] 2. A, B and C were sharing profits equally. Their capitals were Rs.20,000; 10,000 and 15,000 respectively. After closing the accounts for the year 2013 it was found that the interest on capital @ 10% p.a. was not allowed before distributing the profits. It was decided to pass a single adjusting entry to rectify the accounts of the previous years. Journalize.                        [3]               3. Vinod, Singh and Kumar are partners ...

  (Basics of Partnership)  Topic : Interest on Drawings 1. State the purpose of allowing interest on drawings of a partner. [1] 2. What is the difference between drawings against profit and drawings against capital? [1] 3. Where would you record the interest on drawings when capitals are fixed? [1] 4. X, Y and Z are partners sharing profits equally. They have decided that no interest on drawings is to be charged to any partner. But after one year ‘Z’ wants that interest on drawings should be charged to every partner. State how ‘Z’ can do this.      [1] 5. Calculate interest on drawings of Mr. Vinod @ 8% p.a. for the year ended 31st March, 2014 in each of the following cases: Case 1: If he withdrew Rs.2,000 at the beginning of each year. Case 2: If he withdrew Rs.2,000 during the middle of each month. Case 3: If he withdrew Rs.2,000 at the end of each month.                           ...

 (Basics of Partnership)  Topic : Interest on Capital Q.1 A Partnership deed provides for the payment of interest on capital but there was a loss instead of profit during the year 2013-14. At what rate will the interest on capital will be allowed to the partners. Q.2 What is meant by Unlimited Liability of a Partner? Q.3 X and Y are partners in a firm having not partnership deed. X and Y have contributed Rs.2,00,000 and Rs.4,00,000 respectively as capitals. Y wants that profit should be distributed in the ratio of capitals and interest on capital should be 10% p.a. but X does not agree to this. State giving reason who is correct in this case. 4. X and Y are partner sin a firm having no partnership deed. X desires that Y should not participate in the conduct of the firm’s business and will not get any interest on capital but Y does not agree to this. State giving reason who is correct in this case.     5. X and Y started business on 1.1.2013 with capitals of Rs.1,...

TEST PAPER-01   ( Basics of Partnership ) Topic : Profit & Loss Appropriation A/c   Q.1 Where would you record “Rent paid to Partner” while preparing P/L Appropriation   A/c 1 Q.2 Why don’t we show Manager’s Commission and Interest on Partner’s Loan in  P/L  Appropriation Account?                                                                                                            1 Q.3  What should we do when appropriations are more than the profits? Q.4     What do understand by the following:...