This MCQ Test on the past adjustments has 15 practice questions. Test your knowledge about the partnership accounts - Fundamentals , concepts of past adjustments, their meaning, format for creating adjustment table, journal entries for past adjustments , two methods of doing past adjustments, single entry method and multiple entries method etc. The quiz suits well for conceptual clarity for your board exams
CBSE class 12 accountancy MCQ questions
The below MCQ test is designed as per the latest syllabus prescribed by CBSE board. With the rise in weightage of MCQ questions, the practice of MCQ questions becomes very important. The quiz is equally useful for students of CUET exams.
How to attempt the quiz
One by one go through the below questions and select the right option. Do all the questions and in the end press submit. Instantly you will get your score and the explanation against each question. Go through your mistakes and reattempt the quiz any number of times as needed.
MCQ Quiz - Practice Questions
MCQ Quiz
Question 1
If interest on capital was allowed at higher rate in past then to correct the error:
A
Correct Answer: Partners' Capital accounts are debited for excess interest
If interest was credited more than due, excess amount is debited back from partners' accounts.
Question 2
If interest on capital was allowed at lower rate in past:
B
Correct Answer: Partners' Capital accounts are credited for short interest
If interest was credited less than due, short amount is credited to partners' accounts now.
Question 3
If salary to partner was omitted in past:
B
Correct Answer: Credit partner's account for salary due
Salary omitted should be credited to partner's account now as it should have been credited earlier.
Question 4
In adjustment entry, partner who has debit balance in analytical table:
A
Correct Answer: Is debited in adjustment entry
Partner having debit balance in analytical table is debited in adjustment entry.
Question 5
In adjustment entry, partner who has credit balance in analytical table:
B
Correct Answer: Is credited in adjustment entry
Partner having credit balance in analytical table is credited in adjustment entry.
Question 6
The firm column in the adjustment table represents
D
Correct Answer: Profit and Loss Appropriation A/c
The firm column in the adjustmnt table is same as profit and loss appropriation A/c in the journal entry
Question 7
In multiple entries method, separate entry is passed for:
B
Correct Answer: Each type of adjustment like interest on capital, salary, etc.
In multiple entries method, separate adjusting entry is passed for each type of adjustment separately.
Question 8
Which method is simpler when there are many past adjustments?
A
Correct Answer: Single adjustment entry method
Single adjustment entry method is simpler when there are many adjustments as only one entry is passed for net effect.
Question 9
In fixed capital method, past adjustments are recorded in:
B
Correct Answer: Current Account
In fixed capital method, past adjustments are recorded in Partners' Current Accounts.
Question 10
In fluctuating capital method, past adjustments are recorded in:
A
Correct Answer: Capital Account
In fluctuating capital method, past adjustments are recorded in Partners' Capital Accounts.
Question 11
If both interest on capital was omitted and profit was distributed wrongly:
B
Correct Answer: Both adjustments are considered in analytical table
All past adjustments are considered together in analytical table and net effect is determined.
Question 12
Purpose of past adjustment is to:
B
Correct Answer: Correct partners' capital balances for past errors
Purpose of past adjustment is to correct partners' capital/current account balances for errors in past years.
Question 13
Past adjustment entry involves:
B
Correct Answer: Adjusting Partners' Capital/Current Accounts only
Past adjustment entry only adjusts Partners' Capital/Current Accounts; no cash/bank transaction involved.
Question 14
If interest on drawings was not charged in past:
B
Correct Answer: Debit partners' accounts now for interest due
Interest on drawings not charged earlier should be debited to partners' accounts now.
Question 15
Main difference between single and multiple entries method is:
D
Correct Answer: Single method passes one entry for net effect, multiple method passes separate entries
Single method passes one entry for net effect while multiple method passes separate entry for each adjustment.
