Commerce Important Questions

Commerce Important Questions

1. Auditor shall be punished with imprisonment for a maximum period of ……… under Section 539 for falsification in the books of accounts.
(A) 3 years (B) 5 years
(C) 7 years (D) 9 years
See Answer:

2. “Auditor is not an insurer.” In which of the following cases, the decision has been given ?
(A) The Kingston Cotton Mills Co. Ltd. (1986)
(B) London & General Bank (1895)
(C) Allen Craig & Co. Ltd. (1934)
(D) Irish Woollen Co. Ltd.
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3. The Section 80A of the Companies’ Act is related with the redemption of–
(A) Debentures (B) Redeemable preference shares
(C) Irredeemable preference shares (D) None of the above
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4. Company Auditor is responsible–
(A) For directors (B) For shareholders
(C) For public (D) For creditors
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5. In Balance Sheet, Audit Accounts are audited–
(A) Monthly (B) Bi-monthly
(C) Annually or half yearly (D) Quarterly
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6. The share of new partner in the profits is 1/5 and his capital is Rs. 20,000. The new profit sharing ratio is 3 : 1 : 1. The share of partners in total capital will be–
(A) 60,000 : 20,000 : 20,000 (B) 80,000 : 20,000 : 20,000
(C) 50,000 : 20,000 : 25,000 (D) None of the above
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7. At the time of dissolution the loss of the business, will be compensated first of all from–
(A) Capital (B) Profits
(C) Personal resources of the partners (D) Donations
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8. The meaning of written down value is–
(A) Original cost – Scrap value (B) Book value + Depreciation
(C) Book value – Depreciation (D) None of these
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9. Given :
Depreciation on the basis of Fixed Instalment Method Rs. 2,000 p.a.
Establishment expenses Rs. 5,000
Scrap value Rs. 1,000
Span of life 10 years
The cost of assets will be–
(A) Rs. 20,000 (B) Rs. 16,000
(C) Rs. 12,000 (D) None of these
See Answer:

10. Given :
Cost Rs. 1,00,000
Scrap Value Rs. 10,000
Span of Life 10 years
Rate of depreciation 20% p.a.
The amount of depreciation for the first year on the basis of diminishing balance method will be–
(A) Rs. 20,000 (B) Rs. 18,000
(C) Rs. 9,000 (D) Rs. 10,000
See Answer:

11. Internal check is a part of–
(A) Internal Audit (B) Internal Control
(C) Annual Audit (D) Standard Audit
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12. Cost Audit Report is to be submitted to–
(A) The Company (B) The Central Government with a copy to the Company
(C) The Central Government (D) The Company Secretary
See Answer:

13. A company auditor addresses his report to–
(A) Board of Directors (B) Members
(C) Managing Director (D) Company Secretary
See Answer:

14. Which of the following Sections of the Companies’ Act 1956 relates to the maintenance of proper books of accounts ?
(A) Section-211 (B) Section-217
(C) Section-209 (D) Section-205
See Answer:

15. X and Y are partners sharing profits in the ratio of 4 : 3. They admit a new partner Z and new profit sharing ratio is 7 : 4 : 3. The sacrificing ratio between X and Y will be–
(A) Equal (B) 4 : 3
(C) 2 : 1 (D) 1 : 2
See Answer:

16. BIPA with Sudan comes into effect was the news, it is an agreement for–
(A) Investment in a country
(B) Peaceful use of atomic power
(C) Allowing students to visit each other's nation
(D) Allowing people to come for medical treatment
See Answer:

17. The balance of old provision for doubtful debts on 1-4-2012 was Rs. 10,000. The bad debts written off during the year 2012-13 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) Rs. 37,000 (B) Rs. 27,000
(C) Rs. 17,000 (D) Rs. 15,000
See Answer:

18. 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
(D) A–Rs. 12,000 and B–Rs. 3,000
See Answer:

19. 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 ?
(A) 7 : 3 : 3 (B) 4 : 2 : 15
(C) 14 : 6 : 15 (D) 29 : 11 : 30
See Answer:

20. Given–
Opening inventory : Rs. 3,500
Closing inventory : Rs. 1,500
Cost of goods sold : Rs. 22,000
What is the amount of purchase ?
(A) Rs. 20,000 (B) Rs. 24,000
(C) Rs. 27,000 (D) Rs. 17,000
See Answer:

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