12th class Principles of Accounting chapter wise Short question with answers for Principles of Accounting

Question # 1

Define Senior partner.

Ans 1: A senior partner contributes large amount of capital,He is entitled to large amount of profits,He is associated with business for so many years.
A partner who has rich experience about the business and who have larger capital in partnership is called senior partner.

Question # 2

How yearly depreciation is calculated under straight line method?

Ans 1: The formula which is used to calculate he value of depreciation in straight line method is given below
Annual Depreciation = cost - scrap value/ Estimated life.

Question # 3

Who is active partner?

Ans 1: Active partner is a person ,who has capital in the business and also take part in the conduct of the business is called active partner.
It is known by the general public as partner.

Question # 4

What is fluctuation?

Ans 1: The decrease or increase in the market value of an asset is called fluctuation.

Question # 5

What are shares?

Ans 1: Today large scale operation of a company call for a large amount of capital,The total amount of capital is divided into smaller units.These units are called shares.These shares can be used for transferred to another person.

Question # 6

Write names of different name of company.

Ans 1: Some kinds of company are given below
1.Company limited by shares
2.Company limited by guarantee
3.Unlimited company
4.Association not for profit

Question # 7

What is meant by honorarium?

Ans 1: Honorarium is the amount paid to person who may be invited to deliver lectures or artists may be invited to give their performance by a club,
Example : ALex club pay Rs 2000000 as honorarium to Taylor swift and zayn malik for song.

Question # 8

What are the source of income of non trading company?

Ans 1: The source of income of non trading concern are given below
1. Donations
2. Subscription
3. Admission fee
4. Legacy
5. Life membership fee

Question # 9

Define junior partner.

Ans 1: A partner of partnership who have less experience in the business and have small capital is known as junior partner,

Question # 10

What is fixed capital?

Ans 1: In fixed capital ,capitals of partners are credit with the actual contribution of the partner towards their capitals and balanced at the same year from year to year,In such a case all the adjustments and passed through current accounts of partners.

Question # 11

Define firm.

Ans 1: The partner in a partnership collectively known as firm and the name ,under which they carry on the business is called "Firm's name".

Question # 12

Define the term Obsolescence.

Ans 1:

The term Obsolescence refers to the process of becoming out of date or obsolete due to inventions or change in habits and taste of the people.

Question # 13

Write two objects of depreciation.

Ans 1: It is necessary for the following reasons:
1.Ascertainment of true profit and loss
2.Ascertainment of true cost production
3.Keeping capital intact
4.True valuation of an asset.
5.Replacement of asset.

Question # 14

Define preliminary expenses.

Ans 1: The expenses which are incurred in the initial stages of incorporation are called primary expenses or preliminary expenses,It is also known as organization cost.
Example: Legal fees,remuneration of promoters,cost of preparing of various documents etc.

Question # 15

Write down six advantage of joint stock company.

Ans 1: Six advantage of joint stock company are given below:
1. Long life
2.Limited liability
3.Large Scale business
4.Low cost of production
5.Separate legal entity
6.Easy transfer of shares

Question # 16

What is "Outward Consignment"?

Ans 1: When goods are dispatched by the consignor to the consignee for the purpose of sale on commision ,it will be consignment outwards from consignor view point
Example Asad (Consignor) send goods to Mr.Qasim for sale purpose (Outwards consignment for Asad).

Question # 17

Define Joint stock company?

Ans 1: A joint stock company may be defined as an artificial person recognized by law,with a distinctive name.It has common seal,a common capital comprising transferable shares,carrying limited liability and having perpetual succession.

Question # 18

What are intangible assets?

Ans 1: Assets which have no physical existence and which can not be seen touched but can be felt are called intangible assets.
Example:Goodwill.trade mark etc

Question # 19

What is difference between cash book,receipts and payment account?

Ans 1: Cash Book:
1. It is a book account within double entry system.
2. Each entry is followed by narration.
3. Ledger reference recorded here.
Ans 2: Receipts and payments accounts:
1. It is an accounts outside the double entry system.
2. No narration is written here.
3. No ledger reference is recorded here.

Question # 20

In whihc situation the Garner vs. Murray rule is applicable?

Ans 1: Garner vs. Murray is applicable only when there is no agreement between the partners for sharing the deficiency in capital accounts of insolvent partners.

Test Name	Total Questions	PDF File	Launch Test
ICOM Part 2 Principles of Accounting Chapter 1 Short Questions Preparation	17	Download PDF	Launch Test
ICOM Part 2 Principles of Accounting Chapter 2 Short Questions Preparation	19	Download PDF	Launch Test
ICOM Part 2 Principles of Accounting Chapter 3 Short Questions Preparation	20	Download PDF	Launch Test
ICOM Part 2 Principles of Accounting Chapter 4 Short Questions Preparation	37	Download PDF	Launch Test
ICOM Part 2 Principles of Accounting Chapter 5 Short Questions Preparation	20	Download PDF	Launch Test
ICOM Part 2 Principles of Accounting Chapter 6 Short Questions Preparation	12	Download PDF	Launch Test
ICOM Part 2 Principles of Accounting Chapter 7 Short Questions Preparation	10	Download PDF	Launch Test
ICOM Part 2 Principles of Accounting Chapter 8 Short Questions Preparation	11	Download PDF	Launch Test
ICOM Part 2 Principles of Accounting Chapter 9 Short Questions Preparation	11	Download PDF	Launch Test

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12th Class Principles of Accounting Short Questions With Answer for Principles of Accounting Full Book

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