| 1. |
Which of the following item is shown in the Receipt and Payment account? |
| A. | Only items of capital nature. |
| B. | Only items of revenue nature which are received during the period of accounts. |
| C. | Only items of revenue nature pertaining to the period of accounts. |
| D. | Both the items of capital and revenue nature which are received during the |
| Answer» D. Both the items of capital and revenue nature which are received during the | |
| 2. |
Any income arising from special fund will be credited to |
| A. | General fund in the Balance Sheet |
| B. | Receipt and Payment account |
| C. | Income and Expenditure account |
| D. | Special fund in the Balance sheet |
| Answer» D. Special fund in the Balance sheet | |
| 3. |
There are 100 members each p aying an annual subscription of 500. The Receipt and Payment account shows arrear subscription of 4,500, advance subscriptions 6,000 and current 44,500. How much amount to be credited in the Income and Expenditure account? |
| A. | 55,000 |
| B. | 49,000 |
| C. | 44,500 |
| D. | 50,000 |
| Answer» D. 50,000 | |
| 4. |
When opening stock 50,000; closing stock 40,000; purchases 1,90,000 profit margin is 16.67% on sales, the sales are: |
| A. | 2,40,000 |
| B. | 2,36,000 |
| C. | 2,00,000 |
| D. | 2,44,000 |
| Answer» A. 2,40,000 | |
| 5. |
Goods bought for 25,000 passed through sales day book will result in |
| A. | No effect on gross profit |
| B. | Decrease in gross profit |
| C. | Decrease in net profit |
| D. | Increase in gross profit |
| Answer» D. Increase in gross profit | |
| 6. |
Which of the following will result in disagreement of Trial Balance? |
| A. | Sales return treated as purchase. |
| B. | Purchase return treated as sales. |
| C. | Ram a/c wrongly credited instead of Sham a/c |
| D. | Under casting cash book by 1,100 |
| Answer» D. Under casting cash book by 1,100 | |
| 7. |
In a joint venture X and Y sharing p rofit and loss equally, X purchased goods costing of 40,000 and Y sold the goods for 50,000. X is entitled to get 1% commission on purchase and Y is entitled to get 5% commission on sales, the profit will be |
| A. | 7,200 |
| B. | 7,100 |
| C. | 6,800 |
| D. | 7,600 |
| Answer» B. 7,100 | |
| 8. |
What is the nature of joint venture with co-venture account? |
| A. | Nominal account |
| B. | Personal account 2 |
| C. | Real Account |
| D. | Memorandum Account |
| Answer» B. Personal account 2 | |
| 9. |
Which of the following term is applicable about consignment? |
| A. | Sale of goods |
| B. | Hypothecation of goods |
| C. | Shipment of goods |
| D. | Mortgage of goods |
| Answer» A. Sale of goods | |
| 10. |
Retirement of bill means |
| A. | sending the bill for collection |
| B. | cancellation of the bill |
| C. | endorsing the bill in favour of third party |
| D. | making payment before the due date. |
| Answer» D. making payment before the due date. | |
| 11. |
Which one of these documents is not required for bank reconciliation? |
| A. | Bank Column of cash book |
| B. | Bank pass book |
| C. | Previous year’s balance sheet |
| D. | Bank statement |
| Answer» C. Previous year’s balance sheet | |
| 12. |
In a overdraft balance as per cash book, a cheque of 1,250 deposited into bank but not recorded in cash book will be |
| A. | deducted by 1,250 |
| B. | added by 1,250 |
| C. | added by 2,500 |
| D. | deducted by 2,500 |
| Answer» A. deducted by 1,250 | |
| 13. |
Which of these errors affects only one account? |
| A. | Error of casting |
| B. | Error of posting |
| C. | Error of carry forward |
| D. | All of the above |
| Answer» D. All of the above | |
| 14. |
Which of the following error is an error of principle? |
| A. | 4,000 received from Sham credited to Shamu a/c |
| B. | 5,000 incurred on installation of new plant debited to salary a/c |
| C. | 6,000 paid for wages debited to salary a/c |
| D. | 7,000 being purchase of raw material debited to purchase a/c |
| Answer» B. 5,000 incurred on installation of new plant debited to salary a/c | |
| 15. |
In case of depreciable assets are revalued, the provision for depreciation is based on |
| A. | Market value of the assets |
| B. | Historical cost of the asset |
| C. | Written down value of the asset |
| D. | the revalued amount over the estimate of the remaining useful life of such asset. |
| Answer» D. the revalued amount over the estimate of the remaining useful life of such asset. | |
| 16. |
Trade discount is allowed at the time of sale of goods. |
| A. | is recorded in sales book |
| B. | is recorded in cash book |
| C. | is not recorded in books of accounts |
| D. | is recorded in journal |
| Answer» C. is not recorded in books of accounts | |
| 17. |
A debit note issued to a creditor for goods returned is to be recorded in the |
| A. | Purchase return book |
| B. | Journal Proper |
| C. | Purchase book |
| D. | Bill Receivable book |
| Answer» A. Purchase return book | |
| 18. |
The determination of expenses for an accounting period is based on the concept of 3 |
| A. | Consistency concept |
| B. | Periodicity concept |
| C. | Timelines concept |
| D. | Industry practice |
| Answer» B. Periodicity concept | |
| 19. |
Decrease in the amount of creditors results in |
| A. | Increase in assets |
| B. | Increase in cash |
| C. | Decrease in cash |
| D. | No change in assets |
| Answer» C. Decrease in cash | |
| 20. |
Subscription received in advance to be shown in |
| A. | Liability side of the balance sheet |
| B. | Asset side of the balance sheet |
| C. | Income and Expenditure account |
| D. | Journal |
| Answer» A. Liability side of the balance sheet | |
| 21. |
Which of the following is an accounting equation? |
| A. | Capital = Assets + Liabilities |
| B. | Capital = Assets – Liabilities |
| C. | Assets = Liabilities – Capital |
| D. | Liabilities = Assets + Capital |
| Answer» B. Capital = Assets – Liabilities | |
| 22. |
AS – 09 deals with |
| A. | Inventory Valuation |
| B. | Depreciation Accounting |
| C. | Revenue Recognition |
| D. | Cash Flow Statement |
| Answer» C. Revenue Recognition | |
| 23. |
Y-draws a trade bill of 12,000 for 6 months on X. After holding the bill for 2.5 months, Y discount the bill with bank @ 10% p.a. The amount of discount on bill is |
| A. | 100 |
| B. | 350 |
| C. | 600 |
| D. | 250 |
| Answer» B. 350 | |
| 24. |
Bills Receivable books is part of the |
| A. | Journal |
| B. | Ledger |
| C. | Profit & Loss Account |
| D. | Balance Sheet |
| Answer» A. Journal | |
| 25. |
X of Delhi send out certain goods at cost + 25% of cost. Invoice value of goods is 1,20,000. 4/5th of the goods were sold by consignee at 1,00,000. Commission @ 2% up to invoice value and 10% of any surplus above invoice. The amount of commission will be |
| A. | 1,920 |
| B. | 2,320 |
| C. | 1,820 |
| D. | 2,020 |
| Answer» B. 2,320 | |
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