10.

134/23

. Profit and loss account is prepared from

A) Real account B) Nominal account C) Both A) andB) D) None of these

. The rate of interest allowed to partners for giving loans to the firm is

A) 8% B) 7% C) 6% D) None of these
. Del-credere commission is allowed to

A) Consignor B) Consignee

C) Warehouse keeper D) Manager

. The share of goodwill brought in cash by the new partner will be credited to the old

partners in their

A) Old profit sharing ratio B) New profit sharing ratio
C) Gaining ratio D) Sacrificing ratio

. The amount of accumulated profits at the time of admission of a partner is transferred to
A) Partners’ capital account B) Revaluation account

C) Goodwill account D) Capital reserve account

. In the event of dissolution of a firm, individual assets of the partners are first used

for the payment of the

A) Firms’ liabilities B) Partners’ personal liabilities

C) Creditors D) None of these
. Amount set aside to meet losses due to bad debts is a

A) Reserve B) Liability C) Provision D) None of these
. Goods given as samples should be credited to

A) Advertisement account B) Sales account

C) Goodwill account D) Purchases account

. The conservatism concept is applied in the area were

A) Inventories are valued at cost price or market price whichever is less
B) Depreciating fixed assets over their useful lives

C) Disclosing the market value of securities

D) All of these

Depreciation is computed in an accounting package according to the principle laid
down in

A) Accounting standards B) Accounting concepts
C) Accounting principles D) None of these