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29. Total Capital employed in the firm is Rs. 8,00,000, reasonable rate of return is 15% and Profit for
the year is Rs. 12,00,0000. The value of goodwill of the firm as per capitalization method would be
(a) Rs. 82,00,000 (b) Rs. 12,00,000
(c) Rs. 72,00,000 (d) Rs. 42,00,000
30. A firm earns Rs. 1,10,000. The normal rate of return is 10%. The assets to the firm amounted to Rs.
11,00,000 and liabilities to Rs. 1,00,000. Value of goodwill by capitalization of Average Actual
profits will be :
(a) Rs. 2,00,000 (b) Rs. 10,000 (c) Rs. 5,000 (d) Rs. 1,00,000
31. Any change in the relationship of existing partners which results in an end of the exiting agreement
and enforces making of a new agreement is called
(a) Revaluation of partnership (b) Reconstitution of partnership
(c) Realization of partnership (d) None of the above
32. Goodwill of a firm of A and B is valued at Rs. 30,000. It is appearing in the books at Rs. 12,000. C
is admitted for share. What amount he is supposed to bring for goodwill ?
(a) Rs. 3,000 (b) Rs. 4,500 (c) Rs. 7,500 (d) Rs. 10,500
33. A and B are in partnership sharing profits in the ratio fo 3 : 2. They take C as a new partner.
Goodwill of the firm is valued at Rs. 3,00,000 and C brings Rs. 30,000 is his share of goodwill in
cash which is entirely credited to the Capital Account of A. New profit sharing ratio will be :
(a) 3 : 2 : 1 (b) 6 : 3 : 1 (c) 5 : 4 : 1 (d) 4 : 5 : 1
34. X and Y are partners sharing profits in the ratio of 4 : 3. Z is admitted for 1/5 th share and he brings
in Rs. 1,40,000 as his share of goodwill in cash of which Rs. 1,20,000 is credited to X and
remaining amount to Y. New profit sharing ratio will be :
(a) 4 : 3 : 5 (b) 2 : 2 : 1 (c) 1 : 2 : 2 (d) 2 : 1 : 2
35. A, B C and D are partners. A and B share 2/3 rd of profits equally and C and D share remaining
profits in the ratio of 3 : 2. Find the profit sharing ratio of A, B, C and D.
(a) 5 : 5 : 3 : 2 (b) 7 : 7 : 6 : 4 (c) 2.5 : 2.5 : 8 : 6 (d) 3 : 9 : 8 : 3
36. A and B are partners sharing profits and losses I the ratio of 5 : 3. On admission, C brings Rs.
70,000 as cash and Rs. 43,000 against Goodwill . New profit ratio between A, B and C is 7 : 5 : 4.
The sacrificing ratio of A and B is :
(a) On a partners admission (b) On retirement of a partner
(c) On expiry of the period of partnership (d) On loss in partnership
37. Unrecorded liability, when paid on dissolution of a firm is debited to :
(a) 3:1 (b) 1 : 3 (c) 4 : 5 (d) 5 : 9
38. On dissolution, goodwill account is transferred to :
(a) In the Capital Accounts of Partners (b) On the credit of Cash Account
(c) On the Debit of Realisation Account (d) On the Credit of Realisation Account
39. At the time of dissolution of partnership firm, fictitious assets are transferred to :
(a) Capital Accounts of Partners (b) Realisation Account
(c) Cash Account (d) Partners Loan Account
40. Change in the existing agreement between the partners is called :
(a) Dissolution of Firm (b) Dissolution of Partnership
(c) Dissolution of Business (d) All of the above
41. In the Balance Sheet Total Debtors appear at Rs. 50,000 and Provision for Doubtful Debts appear at
Rs. 1,500. How much amount will be realised from Debtors, if bad amount to Rs. 10,000 and
remaining debtors are realised at a discount of 5%
(a) Rs. 38,000 (b) Rs. 36,500 (c) Rs. 36,575 (d) Rs. 39,500
42. P, Q and R have been sharing profits in the ratio of 8 : 5 : 3. P retires. Q takes 3/16 th share from P
and R takes 5/16th share from P and R takes 5/16th share from P. New profit sharing ratio will be :
(a) 1 : 1 (b) 10 : 6 (c) 9: 7 (d) 5 : 3
43. A, B and C are equal partners. C retires. He surrenders 3/5 th of his share in favour of A and 2/5th in
favour of B. New ratio will be :
(a) 3 : 2 (b) 8 : 7 (c) 7 : 8 (d) 2 : 3
44. In the Balance Sheet Total Debtors appear at Rs. 50,000 and Provision for Doubtful Debts appear at
Rs. 1,500. How much amount will be realised from Debtors, if bad amount to Rs. 10,000 and
remaining debtors are realised ata a discount of 5%
(a) Rs. 38,000 (b) Rs. 36,500 (c) Rs. 36,575 (d) Rs. 39,500
COMMERCE CLASSES
(A Complete Cell of Commerce Education)
(A CompleteCell of CommerceEducation)
B.com entrance/Accounts/MCQ/2017 Since-2002
1. As per AS-3, Cash Flow Statement is mandatory for
A) All enterprises
B) Companies listed on a stock exchange
C) Companies with a turnover of more than Rs 50 crores
a) Both A and B b) Both A and C c) Both C and B
2. which Enterprises need to prepare Cash Flow Statement only under indirect method-
a) listed b) unlisted c)registered d) all of above
3. In the case of financial enterprises, the cash flow resulting from interest and dividend received and
interest paid should be classified as cash flow from
a) Operating activities b) Financing activities
c) Investing activities d) None of the above
4. In case of other enterprises cash flow arising from interest paid should be classified as cash flow from
________ while dividends and interest received should be stated as cash flow from ____.
a) Operating activities, financing activities
b) Financing activities, investing activities
c) Investing activities, operating activities
d) None of the above
5. When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan
element is classified under________.
a) Operating activities, financing activities b) Financing activities, investing activities
c) Investing activities, operating activities d) None of the above
6. Which of the following is not a cash inflow?
a) Decrease in debtors b) Issue of shares c) Decrease in creditors d) Sale of fixed assets
7. Which of the following is not a cash outflow?
a) Increase in Prepaid expenses b) Increase in debtors
c) Increase in stock d) Increase in creditors
8. Cash Flow Statement is prepared from
a) Profit and loss account b) Balance Sheet
c) Additional Information d) All of the above
9. Which of the following are cash flow from operating activities?
A) Cash Receipts from customers B) Cash Paid to Supplier and Employees
C) Purchase of fixed asset D) Sale of fixed assets
a) Both A and B b) Both A and C c) Both B and C d) Both C and D
10. While preparing Cash Flow Statement, non-cash items and non-operating items are not required to
be adjusted under________
a) Indirect method b) Direct method c) Both a & b d) None of the above
11. Cash flow from sales is calculated by
a) Cash sales + Cash Collections
b) Sales + Opening debtors+ Opening B/R Closing Debtors Closing B/R
c) Both a and b d) None of the above
12. Cash outflow on purchases is calculated by
a) Purchases + Opening Creditors + Opening B/P Closing Creditors-Closing B/P
b) Purchases + Opening Creditors - Closing Creditors +Closing B/P
c) Purchases - Opening Creditors - Opening B/P + Closing Creditors +Closing B/P
d) None of the above
13. In indirect method, net cash flow from operating activities is calculated on the basis of
a) Net Profit after tax b) Net profit before tax
c) Both a and b d) None of the above
14. Financing activities brings changes in
a) Size and composition of owners equities b) Borrowing of the enterprise
c) Both a and b d) None of the above
15. Given salary expenses Rs 40,000, Outstanding in the beginning of the year: Rs 5,000 and outstanding
at the end of the year Rs 10,000. Cash outflow on salary will be:
a) Rs 45,000 b) Rs 35000
c) Rs 55,000 d) Rs 15,000
16.
17.
31. State the net amount of Source or Use Cash, if machinery having a book value of Rs. 20,000 is
sold at loss of Rs. 7,000
(a) Use Rs. 7,000 (b) Use Rs. 20,000 (c) Source Rs. 13,000 (d) None of the above
32. At the time of preparing a Cash Flow Statement, a payment of Interest on Debentures will be
treated as:
(a) Cash flow from investing activities (b) Cash flow from financing activities
(c) Cash flow operating activities (d) None of the above
33. At the time of preparing a Cash flow Statement, the interest received by a Finance Company is
classified as :
(a) Cash flow from investing activities (b) Cash flow from operating activities
(c) Cash flow from financing activities (d) Cash and Cash Equivalents
34. Cash from operating activities consists of
(a) Decrease in Current Assets (b) Increase in Current Assets
(c) Operating Profit (d) All of the above
35. An example of cash flow from operating activity is :
(a) Issue of Equity Shares (b) Purchase of Inventory for cash
(c) Purchase of Machinery (d) Purchase of Building -
36. Comparative Financial Statement means :
(a) to facilitate comparison for two or more years (b) to show financial position
(c) to compute profit or loss of two or more years (d) None of the above
37. Comparative Income Statement shows
(a) Increase or decrease in (b) Cost of Goods sold
(c) Gross Profit or Loss (d) All of the above
38. Under the Trend Ratio Method, one year is taken as
(a) Previous Year (b) Current year (c) Base year (d) None of the above
39. The most commonly used tools for financial analysis are :
(a) Common Size Statements (b) Accounting Ratios
(c) Comparative Statement (d) All of the above
40. Which of the following items is not a tool of analysis of financial statement
(a) Cash Flow Statement (b) Comparative Statement
(c) Statement of Affairs (d) Trend Analysis
41. Payment of Income Tax is treated as :
(a) Operating Expenses (b) Indirect Expenses
(c) Direct Expenses (d) None of the above
42. Fixed Assets of a company increase from Rs. 4,50,000 to Rs. 6,00,000. What will be the percentage
of change ?
(a) 33.33% (b) 20% (c) 40% (d) 30%
43. Common Size Statement are prepared :
(a) In the form of Percentage (b) In the form of Ratios
(c) In both (a) and (b) (d) None of the above
COMMERCE CLASSES
(A Complete Cell of Commerce Education)
BHU/B.com/ACC/TP-3(share & debenture/2017
Since-2002
1. Discount allowed on issues of shares is an example of
(a)Capital Expenditure b)Revenue Expenditure
c) Deferred Revenue Expenditure d) Capital Receipt
2. In India, a company is governed by this Act.
(a)Companies Act, 1948 b) Companies Act, 1951
c) Companies Act, 1956/2013 d) Companies Act, 1961
3. Which company is not required to hold a statutory meeting?
(a)Public Company b) Private Company c) Public & Private cos.
Both d) None
4. A prospectus is issued by the company to the public in general for
(a)Procuring Goods b) Raising Capital c) Selling Goods d) Making
Publicity
5. When shares are issued at premium amount may be utilized for
(a) issue of bonus shares (b) payment of dividend
(c) payment of operating expenses (d) redemption of debentures
6. Interim Dividend is shown in:
(a) Revenue A/c (b) Net Revenue A/c (c) Capital A/c
(d) None of these
7. Which of the following, does not come under the category of Artificial Persons
account?
(a) Firms Account (b) Companys Account (c) Persons Account (d) Educational
Institutions A/c
8. There must be a gap of at least ________ month between two calls:
(a) 3 (b) 6 (c) 1 (d) 2
9. Interest on debentures is calculated on:
(a) Purchase value of debentures (b) Market value of
debentures
(c) Face value of debentures (d) All of the above
10. Income tax in the case of a sole trader is treated as:
(a) Personal expenses (b) Debtors expenses (c) Business expenses (d)
None of these
11. The parties to joint venture are called:
(a) Friends (b) Principal and Agent (c) Partner (d) Co-ventures
12. Dividend is usually paid as a percentage of:
(a) Paid up capital (b) Called up capital (c) Authorized share capital (d)
Net profit
13. Preliminary expenses in connection with flotation of a new company is:
(a) Miscellaneous capital expenditure (b) Current assets (c) Fixed assets (d)
All of the above
14. As per table A of the companies Act, 1956. A company pays interest on call in
advance @ of:
(a) 4% (b) 5% (c) 6% (d) 7%
15. As per table A of the companies Act, 1956. A company can charge interest on
calls in arrears @ of:
(a) 5% (b) 6% (c) 7% (d) 8%
16. Loss on issue of Debentures is generally written off in:
(a) 10 yrs. (b) 8 yrs. (c) Over the period of redemption (d)
15 yrs.
17. What can be maximum gap between two consecutive annual general
meetings of a company?
(a)12 month (b) 15 month (c) 18 month (d) 21
months
18. The minutes of a meeting are signed by the
a Chairman (b) secretary (c)director (d) managing director
36. Gopi Ltd. Purchased land and building from Mohan Ltd. For a book value of Rs.
200000.
The consideration was paid by issue of 12% debentures of Rs. 100 each at a
discount of 20%.
The debenture account is credited with.
(a) Rs. 2,00,000 (b) 2,60,000(c)Rs. 2,50,000 (d) 1,40,000
37. Kapoor Ltd. Issued 7,50,000 , 12% debenture of Rs. 100 each at a premium of
10% payable Rs 40
on application and balance on allotment . Debentures are redeemable at par after
6 years. All money
due on allotment was called up received. The amount of premium will be
a (a) 3,00,00,000 (b) 75,00,000 (c) 2,25,00,000 (d) 7,50,00,000
38. A company forfeited 2,000 shares Rs. 10 each held by Mr. Mohan for non- payment
of allotment money
of Rs. 3 per shares. The called-up value per share was Rs. 8. On forfeiture, the
amount debited to
share capital will be
(a) 6,000 (b) 20,000 (c) 1,000 (d) 16,000
39. The company charge interest on calls in arrear at:
b (a) 5% (b) 10% (c) 15% (d)
20%
40. The maximum amount of capital that a company can raise is called:
(a) Authorized Capital (b) Subscribed Capital (c) Issued Capital (d) Called-up
Capital
COMMERCE CLASSES
(A Complete Cell of Commerce Education)
BHU/B.com/ACC/TP-4(Financial Statement,PL,Trade..)/2017
Since-2002
1. Stock, debtors and cash are examples of:
(a) Current assets (b) Current liabilities (c) Debentures (d)
Liquidity
2. ______are amount owing by a company which will have to be paid within 12 months:
(a) Fixed assets (b) Fixed liabilities (c) Current assets (d) Current
liabilities
3. A balance sheet is drawn up to give a financial picture of:
(a) Current assets (b) Liquidity (c) Fixed assets (d)
Liabilities
4. The term Accounts receivable includes:
(a) Sundry debtors (b) Bills receivables(c) Promissory notes (d) a &b
both
5. An undervaluation of previous years opening inventory will:
(a) Cause current years net income to be overstated (b) Cause previous years
net income under stated
(c) Cause previous years net income to be overstated (d) none of
these
6. The Trial balance of Rajesh Ltd. shows closing inventories of Rs.90000. It will be
recorded in:
(a) Profit & Loss A/c (b) Trading A/c (c) Balance sheet (d)
none of these
7. Returns Inward, appearing in the trial balance is deducted from:
(a) Purchases (b) Capital (c) Sales (d) none of
these
8. Drawing is deducted from:
(a) Capital (b) Sales (c) Purchases (d) none of
these
9. All the expenditures of revenue nature go to:
(a) Balance Sheet (b) Trading A/c (c) Profit & Loss A/c(d) Either (b) or
(c)
10. Bills receivable is a:
(a) Intangible fixed assets (b) Tangible fixed assets (c) Current assets (d)
Investment
11. The basic function of financial accounting is to:
(a) record all business transaction (b) interpret financial data.
(c) assist the management in performing function effectively (d) None of the above
12. Which of the Assets below are fixed?
(a) Carts (b) Cash (c) Furniture (d) Debtors
13. Carriage inwards is debited to:
(a) Trading A/c (b) P & L A/c (c) P & L Appropriation A/c (d)
Balance sheet
14. Outstanding Expenses are shown as:
(a) An Expense (b) An Income (c) A Liability (d)
An Asset
15. An example of Intangible Asset is:
(a) Goodwill (b) Debit Balance of Profit & Loss A/c
(c) Preliminary Expenses (d) Deferred Revenue Expenditure
16. Returns inward is debited to:
(a) P & L A/c (b) Balance sheet (c) Trading A/c (d) None of
these
17. Carriage outward is debited to:
(a) Balance sheet (b) P & L A/c (c) P & L Appropriation A/c (d) All of
these
18. Cost of goods sold can be calculated by:
(a) Balance sheet (b) Profit & Loss A/c (c) Trading A/c (d) P & L
Appropriation A/c
19. Goodwill is:
(a) An Investment (b) A Current Assets (c) An Intangible Fixed Assets (d) A
Tangible Fixed Assets
19. An analysis in which the firms ratio values are compared to those of a key competitor or group
Of Competitors. Primarily to identify areas for improvement is called
(a) time-series analysis (b) Benchmarking (c) Combined analysis (d) None of the above
20. The ratios are primarily measures of return.
(a) Liquidity (b) activity (c) Debt (d) profitability
21. . The .. Of a business firm is measured by its ability to satisfy its short
term obligations as, they become due.
(a) Activity (b) liquidity (c) Debt (d) profitability
22. . .. Ratios are a measure of the speed with which various
accounts are converted into Sales or cash.
(a) Activity (b) Liquidity (c) Debt (d) Profitability
23. . The is useful in evaluating credit and collection policies.
(a) Average payment period (b) Current ratio
(c) Average collection period (d) Inventory turnover ratio
5. Difference of total of debit and credit side of the trial balance is transferred to:
(a) Suspense A/c (b) Difference A/c (c) P & L A/c (d) Trading A/c
6. The balance of Petty Cash Book is:
(a) An Assets (b) A Liability (c) An Income (d)
An Expenditure
8. Trial Balance is a:
(a) Final A/c (b) Statement of day books (c) Subsidiary book (d) None
of these
9. Object of Preparing Trail Balance is _______:
(a) To check the arithmetic accuracy of accounts
(b) To check the accounting book in complete and total nature
(c) To find the economic condition of business (d) To get the information of
assets and liabilities
10. The balance of Petty Cash Book is
a) a liability b) an expense c) a gain d) an asset
28. A provision is a:
(a) General Reserves (b) Specific Reserve (c) Capital Reserve (d)
Secret Reserve
92. Bank Reconciliation statement is a
a) Part of Cash Book b) Part of Bank Account c) Ledger Account d)
Statement separately prepared
30. A four months bill drawn on 1st January, 2007 will mature for payment on
a) 3rd May 2007 b) 4th May 2007 c) 5th May 2007 d) 6th May
2007
31. Secret Reserve will be shown in:
(a) P & L A/c (b) P & L Appropriation A/c (c) Balance Sheet (d) None of
these
32. Provision for bad debt is made to
(a) prevent debt becoming bad (b) obtain a true debtors figure for the
balance sheet
(c) even out actual bad debts incurring (d) encourage prompt payment of
debts by debtors
33. When drawing up a bank reconciliation statement if you start with a debit balance
as per the bank
statement, the unpresented cheques should be
(a) Not required to be adjusted (b) subtracted (c) added (d) none of the
above
COMMERCE CLASSES
(A Complete Cell of Commerce Education)
BHU/B.com/ACC/TP-7(Principle of Accounting)/2017
Since-2002
Select the most appropriate answer:
1. The abbreviation GAAP stands for:
(a). Generally accepted accounting policies (b) Generally accepted
accounting practices
(c) Generally accepted accounting principles (d) General accounts and
audit procedures.
2. Accounting principles are generally based on:
(a) Subjectivity (b) Practicability (c) Convenience in recording
(d) Imagination
3. The system of recording business transactions based on dual aspect concept is
called:
(a) Single entry system (b) Practicability (c) Double account system
(d) All of the above.
4. Under the money measurement concept, the following will be recorded in the
books of accounts of the business:
(a) Value of furniture (b) Quality of company goods
(c) Bad health of managing director (d) All of the above.
5. The concept of conservatism, when applied to balance sheet, results in:
(a) Understatement of assets (b) Overstatement of liabilities
(c) Understatement of liabilities (d) Overstatement of assets
6. The practice of appending notes regarding contingent liabilities in accounting
statement is in pursuance To:
(a) Convention of disclousure (b) Convention of consistency
(c) convention of conservatism (d) Concept of money measurement.
7. Recording business transaction on the basis of documents is to observe the
accounting
assumption of:
(a) Accounting equity (b) going concern (c) Money measurement
(d) Verifiable objectives.
8. Treatment of capital as liability observes the accounting assumption of:
(a) Separate entity (b) Revenue realization (c) Full disclosure (d)
Historic cost principle
9. Accounting period consists of:
(a) 12 months (b) 24months (c) 36months
(d) 48months
10) Accounting to the principle of matching cost and revenue, income of a
business can be
ascertained by
(a) Total receipts (b) Total payments
(c) Matching total sales and purchases (d) Matching revenues with the
cost of the business
11.According to the concept of conservatism, the stock in the trade is valued at:
(a) Cost price (b) Market price
(c)Cost or market price, whichever is lower (d)Cost or market price,
whichever is higher
12.The concept of conservation takes into account:
(a)All future losses but leaves all future profits (b)All future profits but
leaves all future losses
(c) All future profits and all future losses (d) All of the above.
13.The policy of anticipate no profit and provide for the possible losses arises
due to:
(a) Convention of disclosure . (b)Convention of
materialism
(c)Convention of consistency (d) Convention of
conservatism
14.Non- financial information is not recorded in accounts due to:
(a) Accrual concept (b) separate entity concept
(c) Dual aspect concept (d) Money measurement
concept.
15.According to the concept of money measurement the following will not be
recorded in the books of accounts.
(a).Simplicity o the general manager (b) death of the general manager
(c) (a) and (b)both (d)Gratuity paid to the general managers wife
after his death
16.Accounting to the concept of going concern a business is presumed to have:
(a) a limited life (b) a long life (c) a definite life (d) An
indefinite life
17.Realization concept implies realization of sale-revenue at:
(a) the receipt of an order (c) transfer of
ownership
(c) the receipt of cash from the customer (d) the
cancellation of an order
18.The concept according to which a fact or happening which cannot be expressed
in terms of money is inot recorded in the accounting books is called:
(a)Cost concept (b)Matching concept
(c) Realisation concept (d) Money
measurement concept
19.The term Expense denotes:
(a)Cost of services and things used for generating revenue
(b)Payment or the incurring of a debt for an asset
(c) Cost which fails to produce revenue (d) All of the above.
20.In case of gold and silver, revenue is recognized in the accounting period in
which it is:
(a)Sold (b) Delivered (c) mined (d) All of the above.
21. Accounting has certain norms to be observed by the accountants in recording of
transactions and
preparation of financial statement. These norms reduced the vagueness and
chances of
misunderstanding by harmonizing the varied accounting practices. These
norms are:
(a) Accounting standards (b) Accounting framework
(c) Accounting regulations (d) Accounting guidance notes
29. According to which of the following accounting concepts, even the proprietor of a business is treated
as creditor to the extent of his capital ?
(a) Money Measurement Concept (b) Dual Aspect Concept (c) Cost Concept (d)Business Entity Concept
30. According to which of the following concepts, in determining the net income from business, all
costs which are applicable to the revenue of the period should be charged against that revenue ?
(a) Matching Concept (b) Money Measurement Concept (c) Cost Concept (d)Dual Aspect Concept
31. Revenue is said to be realized
a) When the sales are made (b)When the goods are manufactured
When the goods are dispatched (d)When the payments are received
32. Fundamental accounting assumptions are:
(a) Consistency concept (b) Going concern concept (c) Accrual concept (d)
All of the above
33. In which area different accounting policies are adopted:
(a) Valuation of inventories (b) Valuation of investment (c) Depreciation
(d) All of the above
34. Advanced received from debtors is not taken as sale is based on:
(a) Conservatism concept (b) Accrual concept
(c) Money measurement concept (d) None of these
35. Liability for bill discounted is:
(a) Contingent Liability (b) Fixed Liability (c) Current Liability (d) None of
these
36. Economic life of an enterprise is split into periodic interval as per ------------
concept
(a) Materiality (b) periodically (c) accrual (d)
conservation
37. Profit and Loss A/c is prepared for the period of one year by the following:
(a) Periodicity concept (b) Business entity concept
(c) Accrual concept (d) None of these
38. Basic concept related to balance sheet are:
(a) Conservatism concept (b) Business entity concept (c) Going concern concept
(d) Both (a) and (b)
39. Inventories are valued at lower cost or net reliable value by applying the principle
of:
(a) Conservatism (b) Consistency (c) Materiality (d)
Disclosure
80. 10,000 litres of oil were consigned to a wholesaler the cost being Rs.100 per litre by
incurring freight
Rs. 8,000. 10% of loss of oil unavoidable. 8,000 litres were sold by the consignee.
The remaining stock
of 1,000 litres will be valued at
(a) 1, 12,000(Pb) 1, 11,111 (c) 1, 00,800 (d) 1, 00,000
81. Purchases for cash:
(a) Increase liability (b) Decrease assets (c) No change in the total assets (d)
Increase assets
82. Trade discount allowed at the time of sale of good is:
(a) Recorded in journal (b) Not recorded in the books of
a/cs
(c) Recorded in cash book (d) Recorded in sales book
83. Which of the following is not an assets:
(a) P & L A/cs (cr. balance) (b) Inventory(c) Goodwill (d) Cash
84. Purchases of goods on credit:
(a) Increase liability (b) Decrease assets (c) Increase assets (d) Both
(a) and (c)
85. Under inflationary conditions, FIFO method will lead to:
(a) Lower profit (b) Higher profit (c) Higher sales (d) No
change in sales
86. Which of the following assets are to be valued at the lower of cost and net
realizable values:
(a) Sundry debtors (b) Long term investments (c) Goodwill (d) Stock
(inventories)
87. Which of the followings are fixed assets:
(a) Closing Inventory (b) FD in Bank (for 3 yrs.) (c) Prepaid Expenses (d)
Patents
88. Gross profit is equal to:
(a) Opening stock + purchases closing stock (b) Net profit
Expenses
(c) Sales closing stock + purchases (d) Sales CGS
89. Return Inwards books records
(a) Purchase returns (b) Credit sales returns (c) Cash sales returns (d)
both (a) & (b)
90. Contra entries are passed only when:
(a) Single column cash book is prepared (b) Double column cash book
is prepared
(c) Three column cash book is prepared (d) Petty cash book is
prepared
91. Sale or return day book is a:
(a) Personal A/c (b) Suspense A/c (c) Memorandum A/c (d)
Nominal A/c
92. Goodwill is a:
(a) Current Asset (b) Intangible Asset(c) Personal Asset (d) Tangible Asset
93. Prepaid insurance is
(a) Nominal A/c (b) Real A/c (c) Personal A/c (d) None of
these
94. Profit is a part of:
(a) Income (b) Owners capital (c) Assets (d) All of these
95. Journal is books of:
(a) All cash transactions only (b) All credit transactions only(c) Secondary
entry (d) Original entry
96. Balance of Petty Cash Book is posted to ledger:
(a) In the Bank A/c (b) In the Cash A/c (c) Nowhere (d) Both (a) and
(b)
97. Petty Cash is used for payment of:
(a) Salaries & wages of staff (b) For purchases of assets (c) Small expenses
(d) All of these
98. Interest on capital will be paid to the partners if provide for in the agreement but
only from:
(a) Goodwill (b) Current profit (c) Reserves & Surplus (d)
Accumulated profit
99. On 31st December, 2009 Ashok Ltd. purchased a machine from Mohan Ltd. for Rs.
175,000. This is:
(a) A transaction (b) An event
(c) None of these (d) A transactions as well as an
event
100. Ram Motors will debit purchases of Motor in:
(a) Motor A/c (b) Purchase A/c (c) General Expenses (d) None
of these
101. General Manager attended a meeting held abroad to develop market; meeting
was successful.
The expenses is in the nature of:
(a) Deferred revenue expenditure (b) Capital expenditure
(c) Revenue expenditure (d) None of these
102. Wages Rs. 1,000 payable to labour will be credited:
(a) Cash A/c (b) Labour A/c (c) Salary A/c (d) None of
these
103. Heavy amount spent for the advertisement of new company product is:
(a) Revenue expenditure (b) Deferred revenue expenditure
(c) Capital expenditure (d) Either (a) or (c)
104. Rs. 40,000 spent on repairs of newly purchased old machinery is debited to:
(a) Repairs A/c (b) Cash A/c (c) General Expenses A/c (d)
Machinery A/c
105. Double Entry System of Book keeping was first propounded by:
(a) Chanakya (b) Lee Iccocea (c) Luca Pacioli (d)
Confucious
106. Income and Expenditure Account includes figures related to:
(a) Previous Year (b) Current Year (c) Future Year (d) All of
these