Business Account Multiple Choice Question

Sl. No. Question Options

1 Users of accounting information include • Lenders
• Customers
• Creditors
• All of the above
2 Rajesh purchased an Audi car for Rs. 35,00,000 making a down
payment of Rs. 15,00,000 and signing a Rs. 20,00,000 bill payable • Total assets increased by Rs. 35,00,000
due in 90 days. As a result of this transaction
• Total liabilities increased by Rs. 20,00,000

• Total assets increased by Rs. 20,00,000

Total assets increased by Rs. 20,00,000 with

• corresponding increase in liabilities by Rs.
20,00,000

3 Proprietor brings capital in business is an example of • Increase in asset and liability

• decrease in liability and asset

• Increase in asset and decrease in liability

Increase in business current asset and decrease in

•
proprietors asset
4 What is the reason of holding assets in a business • Resale
• Conversion into cash
• Earning revenue
• None of the above
5 What is the principle that is used for the determination of expenses • Objectivity
for an accounting period
• Materiality
• Matching
• Periodicity
6 When an individual asset is increased, there will be a
corresponding • Increase of another asset or increase of capital

• Decrease of another asset or increase of liability

• Decrease of specific liability or decrease of capital

• Increase of drawings and liability

7 A new computer purchased by cash • Decreases total assets
• Increases total assets
• Retains total assets unchanged
• Decreases total liabilities
8 What will happen if an inappropriate accounting policy is selected Overstate the performance and financial position of a
•
business entity

Understate/overstate the performance and

•
financial position of a business entity.

• Overstate the performance a business entity

• Understate financial position a business entity

9 Accounting involves • Recording
• Classifying
• Summarizing
• All of the above
10 Which one of the following is the record making phase of • Analyzing
accounting?
• Book-keeping
• Classifying
• Summarizing
11 is also known as Accrual systems of accounting • Cash system of accounting

• Mercantile system of accounting

• Cost system of accounting

• None of the above
12 What is the essential feature of accrual basis of accounting?
Revenue is recognized as it is earned irrespective of
•
whether cash is received or not.

Costs are matched against revenues on the basis of

•
relevant time period to determine period income.

Costs which are not charged to income are carried

•
forward and are kept under continuous review.

• All of the above

13 Select the correct statement.
Accrual basis of accounting recognizes revenue only
•
when cash is actually received.

As per Companies Act, Cash basis or Hybrid system

•
of accounting is allowed.

In cash basis of accounting, actual receipt of

• cash or disbursement of cash is the point of
recognizing income or expenditure.

Cash basis of accounting recognizes revenue only

•
when the goods are delivered.

14 Which of the following accounting entries are given in cash

When income is earned by a business or expenditure
system? •
is incurred by it.

On the basis of actual receipt of cash or actual

•
payment of cash.

When order for goods to be purchased is placed and

•
order for goods to be sold is received.

• None of the above

15 When the financial effect of the transaction are recorded in the • As an when they occur.
books in the case of Accrual basis or Mercantile Basis of
On the basis of actual receipt of cash or actual
accounting? •
payment of cash.
On confirmation of orders but before the delivery of
•
the goods take place
• None of the above
16 Which of the following is not an internal user of financial • Lenders
statement?
• Officers
• managers
• Board of Directors
17 What will be the result when appropriate accounting policy is Overstate the performance and financial position of a
selected •
business entity

Show the correct performance and financial

•
position of a business entity.

• Overstate the performance a business entity

• Understate financial position a business entity

18 Real Accounts is a sub part of • Personal Accounts

• Nominal Accounts
• Impersonal Accounts
• None of the above
19 Which of the following accounts shows the transactions with • Real Accounts
customers, suppliers, money lenders, the banks and the owner is
• Personal Accounts
• Nominal Accounts
• None of the above
20 Which of the following is an example of Goodwill • Tangible Real Accounts
• Intangible Real Accounts
• Natural Personal Accounts
• Representative Personal Accounts
21 Which of the following that comes under Nominal Accounts • Expenses
• Losses
• Income
• All of the above
22 Double entry system of Book-keeping refers to a system where Every entry is recorded in two different books of
•
account
Equal debit and credit entries are made for each
•
transactions
Each entry is recorded twice, once in journal and then
•
in ledger.

• All of the above

23 In double entry system of book-keeping every business transaction • Two Sides of the same account
affects
• Two accounts

• The same accounts on two different dates

• All of the above

• None of the above
24 Double entry Book-keeping involves
Two accounts being affected for each transaction
•
which are equal and opposite to one another

• Two sets of books being kept for the business

Every entry in the business books being checked

•
twice.

Every transactions are recorded once in the journal

•
and again in the ledger.

25 What is the Golden rule for personal account?

• Debit is the receiver and credit is the giver.

• Debit what comes in, and credit what goes out.

Debit all expenses and losses and credit all incomes

•
and gains.
• All of the above
• None of the above
26 Mr. Rajesh started business with Rs. 2 crore. Journalize the entry
• Capital A/c --- Dr To Cash A/c

• Cash A/c - Dr To Capital A/c

• Cash A/c --- Dr To Bank A/c

• Bank A/c --- Dr To Cash A/c

27 Where the basic rule of Book-keeping Debit the receiver and • Personal Account
Credit the giver can be applied?
• Real Account
• Nominal Account
• None of the above
28 All Expenses and Losses are Debit and all Gains and Incomes are • Personal Account
Credit Where the above rule of Book- keeping can be applied?
• Real Account
• Nominal Account
• None of the above
29 What comes in Debit and What goes out Credit Where the above • Personal Account
rule of Book-keeping can be applied?
• Real Account
• Nominal Account

• None of the above

30 Which financial statement represents the accounting equation, • Income Statement

assets =liabilities + owners equity
• Statement of Cash Flows
• Balance Sheet
• None of the above
31 Which of the following equations is correct?
• Total Assets - Liabilities = Capital - Profit

Total Assets - Liabilities = Capital

•
+ Profit

• Total Assets + Profit = Capital + Liabilities

• Total Assets + Liabilities = Capital - Profit

32 Piyali introduces her car into her business. Which parts of the • Capital and Liability
business accounting equation will change?
• Liabilities and Assets
• Capital and Profit
• Assets and Capital
33 Which of the following is a correct version of the Fundamental • Assets = Capital - Liability
Accounting Equation ?
• Assets = Liability
• Assets +Liabilities = Capital
• Assets = Capital + Liabilities
34 How is owner's capital calculated? Fixed assets + current assets - current liability -
•
long term loans
Fixed assets + current assets - current liability + long
•
term loans
Fixed assets - current assets + current liability - long
•
term loans
Fixed assets - current assets + current liability + long
•
term loans
35 The rent paid to landlord is credited to • Landlord's account
• Cash account
• Rent account
• None of the above
36 In case of a debt becoming bad, the amount should be credited to • Debtors account
• Bad debts account
• Cash account
• Sales account
37 Which financial statement represents the accounting equation : • Income Statement
Assets = Liabilities + Owner's equity
• Balance Sheet
• Statement of Cash flows
• None of the above
38 Which account is the odd one out? • Office furniture and Equipment
• Freehold land and Buildings
• Plant and Machinery

• Stock of materials

39 The debts written off as bad, if recovered subsequently are • Debited to Profit and Loss Account
• Credited to Debtors Account

• Credited to Bad Debts Recovered Account

• None of the above

40 Prepaid salary account • Real
40 Prepaid salary account

• Personal
• Nominal
• None of the above
41 Bill payable account • Nominal
• Real
• Personal
• None of the above
42 Rent account. • Personal
• Nominal
• Real
• None of the above
43 Proprietor's account • Real
• Personal
• Nominal
• None of the above
44 Patents account • Personal
• Nominal
• Real
• None of the above
45 Salaries • revenue
• expense
• asset
• liability
46 Machinery • revenue
• expense
• asset
• liability
47 Accounts payable • revenue
• expense
• asset
• liability
48 Membership fees earned • revenue
• expense
• asset
• liability
49 Stock • revenue
• expense
• asset
• liability
50 Accounts receivable • revenue
• expense
• asset
• liability
51 Building • revenue
51 Building

• expense
• asset
• liability
52 A sale of goods to Raghu for cash should be debited to: • Cash
• Ram
• Sales
• Capital
53 A withdrawal of cash from business by the proprietor should be • Drawing Account
credited to:
• Cash Account
• Capital Account
• Purchase Account
54 The technique of finding the net balance of an account after • Posting
considering the totals of both debits and credits appearing in the
account is known as • Purchase
• Arithmetically accuracy test
• Balancing of an account
55 Ledger book is popularly known as • Secondary book of accounts
• Subsidiary book of accounts
• Principal book of accounts
• None of the above
56 A trial balance will not balance if • Correct journal entry is posted twice

The purchase on credit basis is debited to purchases

•
and credited to cash

Rs. 1000 cash payment to creditors is debited to

• creditors for Rs. 100 and credited to cash as Rs.
1000

• None of the above

57 Rs. 5,000 received from sub-tenant as rent and entered correctly The debit total will be greater by Rs. 10000 than
in the cash book has been posted to the debit of the rent account. •
the credit total
In the trial balance The debit total will be greater by Rs. 5000 than the
•
credit total
Subject to other entries being correct the total will
•
agree

• None of the above

58 After the preparation of ledgers, the next step is the preparation of • Trading accounts
• Trial balance
• Profit and loss account
• None of the above
59 The debit note issued are used to prepare • Sales return book
• Sales book
• Purchases book
• Purchase return book
60 Which of the following is not a column of a three- column cash • Cash column
book?
• Bank column
• Discount column
60 Which of the following is not a column of a three- column cash
book?

• Petty cash column

61 Rent due for the month of March will appear • On the receipt side of the cash book

• On the payment side of the cash book

• As a contra entry
• Nowhere in the cash book
62 Can Contra entries be passed in Single Column Cash Book • Yes
• No
63 The Cash Book records • All cash receipts
• All cash payments
• Cash and credit sale of goods.
• All cash receipts and payments
64 The balance in the petty cash book is • An expense
• A profit
• A liability
• An asset
65 Money spent Rs. 40,000 as traveling expenses of the directors on • Revenue expenditures
trips abroad for purchase of capital assets is
• Capital expenditures
• Deferred revenue expenditures
• None of the above
66 A bad debt recovered from Dinesh during the year will be • Capital expenditures
• Revenue expenditures
• Capital receipt
• Revenue receipt
67 Rs. 675 spent on the repairs of machine is • Capital expenditure
• Revenue expenditure
• Deferred revenue expenditure

• None of the above

68 Paper, pencil, eraser purchased for use as stationery is • Capital expenditure

• Revenue expenditure
• Deferred revenue expenditure
• None of the above
69 Advertising campaign to launch a new product is • Capital expenditure
• Revenue expenditure
• Deferred revenue expenditure
• None of the above
70 Rs. 750 paid as wages for erecting a machine should be debited to • Machine account
• Repair account
• Capital account
• Furniture account
71 Goods worth Rs. 950 given as charity should be credited to • Charity account
• Sales account
71 Goods worth Rs. 950 given as charity should be credited to

• Cash account
• Purchase account
72 A business borrowed Rs 60,000 from its bank, and used the cash Asset will remain unchanged and Liability will
to buy a new computer. How accounting equation affected by •
decrease
these transactions? Asset will remain unchanged and Liability will
•
increase

• Asset as well as Liability both will increase

Asset will increase and on the other hand Liability will

•
decrease
73 Which of the following is unlikely to be paid by petty cash? • Stationery
• Postage
• Refreshments
• Payment to a creditor by cheque
74 Discount Allowed is an • Expense
• Income
• Receipt
• Payment
75 Bank account is a • Nominal account
• Personal account
• Real account
• Valuation account
76 A Bank Reconciliation Statement is prepared with the help of Bank statement and bank column of the Cash
•
Book.

• Bank statement and cash column of the Cash Book

Bank column of the Cash Book and cash column of

•
the Cash Book

• None of the above.

77 Debit balance as per Cash Book of Balaji Enterprises as on • Rs.1,650

31.3.2012 is Rs.1,500. Cheques deposited but not cleared
amounts to Rs.100 and cheques issued but not presented of Rs. • Rs.1,450
150. The bank allowed interest amounting Rs.50 and collected • Rs.1,850
dividend Rs.50 on behalf of ABC Enterprises. Balance as per the
pass book should be
• Rs.1,600

78 The cash book showed an overdraft of Rs.1,500, • Rs.1,100

but the pass book made up to the same date showed that cheques
of • Rs.2,175
Rs.100, Rs.50 and Rs.125 respectively had not been presented for • Rs.1,375
payments;
and the cheque of Rs.400 paid into account had not been cleared.
The balance as per the pass book will be
• Rs.1,625

79 A debit balance in the depositor's Cash Book will be shown as

• A debit balance in the Bank Statement.

• A credit balance in the Bank Statement.

• An overdrawn balance in the Bank Statement.

 • None of the above.
80 When preparing a Bank Reconciliation Statement, if you start with • Added
a debit balance as per the Cash Book, cheques issued but not
presented within the period should be • Deducted
• Not required to be adjusted
• None of the above.
81 When the balance as per Pass Book is the starting point, direct
payment by bank are: • Added in the bank reconciliation statement

• Subtracted in the bank reconciliation statement

Not required to be adjusted in the bank reconciliation

•
statement.
• Neither of the above.
82 When balance as per Cash Book is the starting point, uncollected
cheques are: • Added in the bank reconciliation statement

• Subtracted in the bank reconciliation statement

Not required to be adjusted in the bank reconciliation

•
statement
• Neither of the above.
83 A Bank Reconciliation Statement is prepared to know the causes The balances as per cash column of Cash Book and
for the difference between •
the Pass Book.

The balance as per bank column of Cash Book

•
and the Pass Book.

The balance as per bank column of Cash Book and

•
balances as per cash column of Cash Book

• Neither of the above.

84 When the balance as per Pass Book is the starting point,

• Added in the bank reconciliation statement
uncollected cheques are:

• Subtracted in the bank reconciliation statement

Not required to be adjusted in the bank reconciliation

•
statement.
• Neither of the above.
85 When balance as per Cash Book is the starting point, interest
charged by Bank is: • Added in the bank reconciliation statement

• Subtracted in the bank reconciliation statement

Not required to be adjusted in the bank reconciliation

•
statement
• Neither of the above.
86 Who prepares a Bank Reconciliation Statement • The Bank
• The Government
• The Bank Account holder
• The user of financial statements
87 The cash book and pass book balances both differs because of Omission of same entry in both cash- book and pass-
•
book.

Errors in recording the entries either in the cash-

•
book or pass- book.
87 The cash book and pass book balances both differs because of

Debit balance of cash book is the credit balance of

•
pass-book.
• None of the above.
88 Customers ledgers as prepared by the bank is referred to as • Cash Book
• Pass Book
• Bank A/c
• Bank Reconciliation Statement
89 What is reconciled by BRS • Cash Balance and Bank Balance
• Bank balances of two bank a/c
Cash Book bank balance and Pass Book bank
•
balance
• Opening and Closing bank balance
90 What is BRS • Account
• Ledger
• Statement
• Day Book
91 In savings and current accounts, a deposit is made by filling up a • Cheque
form called .
• Account opening form
• Pay-in-slip

• Traveler Cheque

92 The favorable balance of Cash Book is referred to as • Pass Book ( Dr.)

• Cash Book (Dr. )
• Pass Book ( Cr.)
• Cash Book (Cr. )
93 The favorable balance of Pass Book is referred to as • Pass Book ( Dr.)
• Cash Book (Dr. )
• Pass Book ( Cr.)
• Cash Book (Cr. )
94 What is meant by Cash Book unfavorable balance • Pass Book ( Dr.)
• Cash Book (Dr. )
• Pass Book ( Cr.)
• Cash Book (Cr. )
95 What is meant by Pass Book unfavorable balance • Pass Book ( Dr.)
• Cash Book (Dr. )
• Pass Book ( Cr.)
• Cash Book (Cr. )
96 When money is withdrawn from the bank then it is a • Credit Entry in the Pass Book
• Debit Entry in the Cash Book
• Contra Entry
• All of the above
 97 What is the reason behind the differences in Cash Book balance • Timing Errors
and Pass Book balance?
• Transactions Errors
• Errors in Cash Book and Pass Book
• All of the above
98 What is the reason behind the difference in bank balance as per • Cheque issued but not presented
bank pass book and cash book?
• Cheque issued but dishonored

• Direct payments by customers in bank

• All of the above

99 Why the Bank Reconciliation Statement is prepared?
• To rectify the mistakes in the cash book

• To rectify the mistakes in the bank statement

• To arrive at the cash balance

To bring out the reasons for the differences

• between the balance as per cash book and the
balance as per bank statement

100 What is meant by Debit Balance as per pass book? • Bank Overdraft
• Favourable Bank balance
• Cash balance with bank
• None of the above
101 What is meant by unfavorable balance as per bank pass book? • Bank overdraft
• Debit Balance in the pass book
• Debit Balance in the cash book
• Both A and B above
102 BRS is prepared to
Reconcile cash at bank balance as per cash book
•
with bank balance as per bank pass book.

Reconcile petty cash in hand with cash balance as

•
per cash book.
Reconcile total of debit side of cash book with credit
•
side of pass book
• All of the above
103 Who prepares BRS? • Sole Proprietor concern
• Partnership firm
• Corporate bodies
• All of the three
104 Entry in debit side of Bank pass book implies • Withdraw of cash
• Cash or cheque deposited into bank
• Business receipts
• Personal Receipts
105 What is BRS? • A part of cash book
• A ledger account

A statement showing the causes for difference

• between the balances of cash book and pass
book
 • A part of bank pass book
106 In the cash book of the depositor, a debit balance shows
• A debit balance on the Bank Statement.

• A credit balance on the Bank Statement.

• An overdraft balance on the Bank Statement.

• None of the above

107 What is to be done when the balance as per cash book is the • Added
starting point and customer deposits amount directly shall be
• Subtracted
• Not required to be adjusted
• Neither of the two
108 What will be the treatment of an unpresented cheque while • Added
preparing BRS starting with a debit balance as per the bank
statement? • Deducted
• Not required to be adjusted
• None of the above
109 What will be the treatment of issued cheques which has not been • Added
yet presented within the period while drawing up BRS starting with
a debit balance as per cash book? • Deducted
• Not required to be adjusted
• None of the above
110 What shall be done when bank pays directly and the balance as • Added in the BRS
per pass book is the starting point?
• Subtracted in the BRS

• Not required to be adjusted in the BRS

• Neither of the above.

111 When favorable balance as per cash book is the starting point, • Added
wrong debit given by the bank to the account of the firm will be
• Deducted
• No effect
• None of the above
112 Bank reconciliation statement is just a procedure to prove the • Trial
balance
• Pass book
• Cash book
• Day book
113 When Nilesh checked the entries in his cash book with his bank • Debit Rs. 2,617
statement, seven cheques with a total value of Rs. 3,259 had not
been presented at his bank. • Debit Rs. 642
Nilesh had instructed his bank to cancel two of these cheques but • Credit Rs. 2,617
did not make any entries in his cash book. The value of the
cancelled cheques is Rs. 642. What entry should Nilesh make in
the bank account in his cash book to correct his balance?
• Credit Rs. 642

114 Cheques that have been issued but not yet cashed at the bank are • Honoured
called cheques.
• Dishonoured
• Cancelled
• Unpresented
115 Piyali Ltd. purchased a machine on 01.01.2009 for Rs.1,20,000. • Rs. 9,477
Installation expenses were Rs.10,000. Residual value after 5 years
Rs.5,000. On 01.07.2009, expenses for repairs were incurred to • Rs. 8,400
the extent of Rs.2,000. Depreciation is provided @ 10% p.a. under
written down value method. Depreciation for the 4th year =
115 Piyali Ltd. purchased a machine on 01.01.2009 for Rs.1,20,000.
Installation expenses were Rs.10,000. Residual value after 5 years
Rs.5,000. On 01.07.2009, expenses for repairs were incurred to
the extent of Rs.2,000. Depreciation is provided @ 10% p.a. under • Rs. 9,744
written down value method. Depreciation for the 4th year =

• Rs.25,000

116 Obsolescence of a depreciable asset may be caused by - • Only (1) above

1) Technological changes. 2)Improvement in production method.
3)Change in market demand for the product or service output. • Both (1) and (2) above
4) Legal or other restrictions. • All (1), (2), (3) and (4) above

• Only (4) above

117 Find out the false statements - 1) The term 'depreciation', • Only (1) above
'depletion' and 'amortization' convey the same meaning.
2) Provision for depreciation A/c is debited when provision for • Only (2) above
depreciation A/c is created. • Only (3) above
3) The main purpose of charging the profit and loss A/c with the
amount of depreciation is to spread the cost of an asset over its
useful life for the purpose of income determination.

• All (1) (2) and (3) above

118 Which of the following is not true with regard to fixed assets?
• They can easily be converted into cash

• They are not meant for resale to earn profit

Depreciation at specified rates is to be charged on

•
most of the fixed assets

They are acquired for using them in the conduct of

•
business operations
119 Original cost = Rs.1,26,000. Salvage value = Rs.6,000. Useful Life • Rs. 21,000
= 6 years. Annual depreciation under SLM =
• Rs. 19,000
• Rs. 15,000
• Rs. 14,000
• Rs. 20,000
120 Original cost = Rs.1,26,000. Salvage value = 6,000. Depreciation • Rs.11,340
for 2nd year @ 10% p.a. under WDV method =
• Rs.15,000
• Rs.14,000

• Rs.10,800
121 Which of the following expenses is not included in the acquisition • Cost of site preparation
cost of a plant and equipment?
• Delivery and handling charges
• Installation costs

Financing costs incurred subsequent to the

•
period after plant and equipment is put to use.

122 The portion of the acquisition cost of the asset, yet to be allocated • Written down value
is known as
• Accumulated value
• Realizable value
• Salvage value
123 On August 01, 2008, Sweety Tours and Travels Ltd. bought four • 9.00%
Tata Winger vans costing Rs.1,20,000 each. The company
expected to fetch a scrap value of • 8.50%
25% of the cost price of the vehicles after ten years. The vehicles • 7.50%
were depreciated under the fixed
installment method up to March 31, 2011. The rate of depreciation
charged up to March 31, 2011 was

• 10.00%

124 Depreciation is - • Permanent

• Continuous
• Gradual Shrinkage
• All of the above
125 What is depreciation? • The residual value of a fixed asset.

• Amount of cash aside of to buy fixed asset.

• Written down value of a fixed asset

Portion of the cost of the fixed asset allocated as

•
expense set aside over its useful life

126 Depreciation is charged against • Profit

• Loss
• Income
• Capital
127 Which factor affect the measurement of depreciation?
• The estimated useful life of the assets

• The scrap or the residual value of the asset

• The working hours of the asset concerned

• All of the above

128 Depreciation arises due to - • Natural Calamities
• Physical wear and tear
• Fall in the market value of the asset
• All of the above
129 Depreciation is the process of allocating of cost of the assets to • TRUE
the period of its life.
• FALSE
130 From the following choose the most appropriate statement that
Regular reduction of asset value to correspond to
describes the purpose of depreciation •
changes in the market value as the asset ages.

A process of correlating the market value of an asset

•
with its gradual decline in physical efficiency.

Allocation of the cost of an asset to the period in

•
which services are received from the past

A process of ensuring that cash is available at the

•
time of replacement of the asset

131 Depreciable assets are assets which Are expected to be used for more than one
•
accounting period
• Have a limited useful life

Are held by the organization for use in the production

•
or supply of goods and services.

• All of the above

132 The useful life of a depreciable asset is
The period over which the asset is expected to be
•
used by the organization

The number of production or similar units expected to

•
be obtained from the asset by the organization

• Both a and b
• None of the above
133 On which of the following depreciation is provided? • Fixed Asset
• Current Assets
• Liquid Assets
• Fictitious Assets
134 The Trial Balance shows that the Machinery Account has a • Rs. 11,000
balance of Rs. 15,000 and the Provision for Depreciation of
Machinery account shows a balance of Rs. 4,000. Assuming that • Rs. 8,250
machinery is depreciated at a rate of 25% following the diminishing • Rs. 12,250
balance method. What is the WDV of the Machinery at the end of
the accounting period?
• Rs. 11,250

135 An enterprise purchases some Furniture worth Rs. 42,000 on 1st • Rs. 10,000
January 2012. The furniture will be used for 4 years, then it will be
sold for Rs. 2,000. The enterprise uses straight line method of • Rs. 10,500
depreciation. • Rs. 11,000
What will be the depreciation amount for the year ended 31st
December, 2013?
• Rs. 11,500
136 A bike cost Rs. 30,000 and was later sold for Rs. 9,000 and the • Rs. 9,000
profit on disposal was Rs. 1,500. What is the accumulated
depreciation of the bike on disposal? • Rs. 7,500

• Rs. 21,000
• Rs. 22,500
137 A tablet pc purchased for Rs. 8,000 and it is sold for Rs. 4,800. At • Loss Rs. 200
the date of its disposal its net book value is Rs. 3,000. What is the
profit or loss on disposal? • Loss Rs. 1,800
• Profit Rs. 1,800
• Profit Rs. 200
138 A company purchased a computer for Rs. 40,000 on 1st January, • Rs. 3,750 Loss
2003. The computer was depreciated @ 30% per annum using the
WDV method. The estimated scrap value was Rs. 5,000. The • Rs. 3,750 Profit
computer was sold on 31st December, 2006 for Rs. 5,854. What is • Rs. 5,970 Loss
the profit or loss on disposal of computer?

• Rs. 5,970 Profit

139 A fixed asset cost Rs 80,000. It is sold for Rs 4800. At the date of • Loss Rs 200
its disposal its net book value is Rs 3,000. What is the profit or
loss on disposal? • Loss Rs 1800
• Profit Rs 1800
• Profit Rs 200
140 A machine is bought for Rs 5,40,000 plus Rs 90,000 installation • Rs 3,78,000
costs. It is to be depreciated on a reducing balance basis using a
rate of 60% p.a. What is the depreciation to be charged in the • Rs 1,29,600
second year of asset's ownership? • Rs 1,51,200
• Rs 2,52,000
141 Cost of goods sold is Rs.80,700, Opening stockRs.5,800, Closing • Rs.80,900
stock Rs.6,000. Find out the amount of purchase -
• Rs.74,900
• Rs.74,700
• Rs.80,500
142 Chaubey Ltd. recorded the following information as on March 31, • Rs.60,000
2012: Stock as on April 01, 2011 Rs.80,000, Purchases
Rs.1,60,000, Sales Rs.2,00,000. It is noticed that goods worth • Rs.1,00,000
Rs.30,000 were destroyed due to fire. Against this, the insurance • Rs.30,000
company accepted a claim of Rs.20,000. The company sells
goods at cost plus 33 1/3 %. The value of closing inventory, after
taking into account the above transactions is,
• Rs.60,500

143 While finalizing the current year's profit, the company realized that
Previous year's profit is overstated and current year's
there was an error in the valuation of closing stock of the previous •
year. In the previous year, closing stock was valued more by profit is also overstated
Rs.50,000. As a result
Previous year's profit is understated and current
•
year's profit is overstated

Previous year's profit is understated and current

•
year's profit is also understated

Previous year's profit is overstated and current

•
year's profit is understated

144 The total cost of goods available for sale with a company during • Rs.2,25,000
the current year is Rs.12,00,000 and the total sales during the
period are Rs.13,00,000. If the gross profit margin of the company • Rs.3,00,000
is 33 1/3% on cost, the closing inventory during the current year is
144 The total cost of goods available for sale with a company during
the current year is Rs.12,00,000 and the total sales during the
period are Rs.13,00,000. If the gross profit margin of the company
is 33 1/3% on cost, the closing inventory during the current year is • Rs.4,00,000

• Rs.2,60,000

145 Consider the following data pertaining to a company for the month • Rs.1,33,750
of March 2013:-
Opening stock = Rs.22,000, Closing stock = Rs.25,000, • Rs.1,33,760
Purchases less returns = Rs.1,10,000, • Rs.1,33,740
Gross profit margin (on sales) = 20%
The sales of the company during the month are -

• Rs.1,33,700

146 Closing stock appears in the balance sheet as - • A current liability

• A current asset
• A fixed asset
• A foot note
147 Inventory is recorded in the book of accounts at its • Market value
.
• Net realizable value
• Cost
Whichever is low between Net realizable value
•
and Cost
148 At what value is stock stated in a trader's Balance Sheet? • Cost price
• Net realizable value

• The greater of net realizable value or cost price

• The lower of net realizable value or cost price

149 Business started with Cash of Rs. 50,000. Journalize the above
entry. Cash Account is debited by Rs. 50,000 and Capital
•
Account is credited to Rs. 50,000.

Capital Account is debited by Rs. 50,000 and Cash

•
Account is credited to Rs. 50,000.

Business Account is debited by Rs. 50,000 and Cash

•
Account is credited to Rs. 50,000.

Cash Account is debited by Rs. 50,000 and Business

•
Account is credited to Rs. 50,000.

• None of the above.

150 A Bank account has been opened with SBI by depositing Rs.
Cash Account is debited by Rs. 10,000 and SBI
10,000. Journalize the above entry. •
Account is credited to Rs. 10,000

SBI Account is debited by Rs. 10,000 and Capital

•
Account is credited to Rs. 10,000.

SBI Account is debited by Rs. 10,000 and Cash

•
Account is credited to Rs. 10,000.
 Deposit Account is debited by Rs. 10,000 and SBI
•
Account is credited to Rs. 10,000.

• None of the above.

151 Purchased 2 chairs from New House Furniture for office purpose
Purchases Account is debited by Rs. 2,000 and Cash
by paying cash of Rs. 2,000. Pass necessary Journal Entry. •
Account is credited to Rs. 2,000.

Furniture Account is debited by Rs. 2,000 and

•
Cash Account is credited to Rs. 2,000.

Cash Account is debited by Rs. 2,000 and Furniture

•
Account is credited to Rs. 2,000.

Office Account is debited by Rs. 2,000 and Cash

•
Account is credited to Rs. 2,000.

• None of the above.

152 Salary paid to Sanjay Rs. 5,000 by cash. Journalize the above.
Salary Account is debited by Rs. 5,000 and Cash
•
Account is credited to Rs. 5,000.

Cash Account is debited by Rs. 5,000 and Salary

•
Account is credited to Rs. 5,000.

Sanjay Account is debited by Rs. 5,000 and Salary

•
Account is credited to Rs. 5,000.

Salary Account is debited by Rs. 5,000 and Sanjay

•
Account is credited to Rs. 5,000.

• None of the above.

153 Commission received from Jalan Industries of Rs. 500 by cash. Cash Account is debited by Rs. 500 and
Journalize the above. • Commission Received Account is credited to Rs.
500.

Commission Received Account is debited by Rs. 500

•
and Cash Account is credited to Rs. 500.

Jalan Industries Account is debited by Rs. 500 and

• Commission Received Account is credited to Rs.
500.

Cash Account is debited by Rs. 500 and Jalan

•
Industries Account Account is credited to Rs. 500.

• None of the above.

154 Salary paid in advance to Subhra of Rs. 3,000 by cheque.
Advance Salary Account is debited by Rs. 3,000
Journalize the above. •
and Bank Account is credited to Rs. 3,000.
154 Salary paid in advance to Subhra of Rs. 3,000 by cheque.
Journalize the above.

Salary Account is debited by Rs. 3,000 and Bank

•
Account is credited to Rs. 3,000.

Advance Salary Account is debited by Rs. 3,000 and

•
Salary Account is credited to Rs. 3,000.

Bank Account is debited by Rs. 3,000 and Advance

•
Salary Account is credited to Rs. 3,000.

• None of the above.

155 Sunipa a debtor unable to pay her debt of Rs. 6,999. Journalize
Sunipa Account is debited by Rs. 6,999 and Sales
the above. •
Account is credited to Rs. 6,999.

Sunipa Account is debited by Rs. 6,999 and Non

•
Refundable Account is credited to Rs. 6,999.

Bad Debt Account is debited by Rs. 6,999 and

•
Sunipa Account is credited to Rs. 6,999.

Sunipa Account is debited by Rs. 6,999 and Bad

•
Debt Account is credited to Rs. 6,999.

• None of the above.

156 Carriage paid to Singh Transport by cheque. Bank Account is debited and Carriage Account is
•
credited.
Carriage Account is debited and Bank Account is
•
credited.
Carriage Account is debited and Cheque Account is
•
credited.
Carriage Account is debited and Singh Account is
•
credited.
• None of the above.
157 Diesel purchased for office generator of Rs. 2,000 from Hanuman Fuel Account is debited by Rs. 2,000 and
Fuel Station on credit. Journalize the above. • Hanuman Fuel Station Account is credited to Rs.
2,000.

Fuel Account is debited by Rs. 2,000 and Cash

•
Account is credited to Rs. 2,000.

Fuel Account is debited by Rs. 2,000 and Bank

•
Account is credited to Rs. 2,000.

Hanuman Fuel Station Account is debited by Rs.

•
2,000 and Fuel Account is credited to Rs. 2,000.

• None of the above.

158 Loan received from Axis Bank of Rs. 25,000 by cheque. Journalize
Loan from Axis Bank Account is debited by Rs.
the above. •
25,000 and Cheque Account is credited to Rs. 25,000

Cash Account is debited by Rs. 25,000 and Loan

•
from Axis Bank Account is credited to Rs. 25,000

Bank Account is debited by Rs. 25,000 and Loan

•
from Axis Bank Account is credited to Rs. 25,000

Loan from Axis Bank Account is debited by Rs.

•
25,000 and Bank Account is credited to Rs. 25,000
159 Goods Purchased on credit from Kamal of Rs. 2500. Journalize
Bank Account is debited by Rs. 2,500 and Purchases
the above. •
Account is credited to Rs. 2,500.

Cash Account is debited by Rs. 2,500 and Purchases

•
Account is credited to Rs. 2,500.

Kamal Account is debited by Rs. 2,500 and

•
Purchases Account is credited to Rs. 2,500.

Purchases Account is debited by Rs. 2,500 and

•
Kamal Account is credited to Rs. 2,500.

• None of the above.

160 Goods taken over by the owner for personal use costing Rs. 50.
Drawings Account is debited by Rs. 50 and
Journalize the above. •
Purchases Account is credited to Rs. 50

Purchases Account is debited by Rs. 50 and

•
Drawings Account is credited to Rs. 50

Personal Use Account is debited by Rs. 50 and

•
Purchases Account is credited to Rs. 50

Owner Account is debited by Rs. 50 and Purchases

•
Account is credited to Rs. 50

• None of the above.

161 Goods worth Rs. 500 distributed as free sample. Journalize the
above. Advertisement Account is debited by Rs. 500 and
•
Purchases Account is credited to Rs. 500.

Purchases Account is debited by Rs. 500 and

•
Advertisement Account is credited to Rs. 500.

Distribution Account is debited by Rs. 500 and

•
Advertisement Account is credited to Rs. 500.

Advertisement Account is debited by Rs. 500 and

•
Goods Account is credited to Rs. 500.

• None of the above.

162 Advertisement Expenses paid through cheque of SBI. Journalize
SBI Account is debited and Advertisement Expenses
the above. •
Account is credited.

Profit and Loss Account Account is debited and

•
Advertisement Expenses Account is credited.

Advertisement Expenses Account is debited and

•
Profit and Loss Account is credited.

Advertisement Expenses Account is debited and

•
SBI Account is credited.
 • None of the above.
163 Bank credited Rs.90 in to the Bank Account as Bank Interest.
Profit and Loss Account is debited by Rs. 90 and
Journalize the above. •
Interest Received Account is credited to Rs. 90.

Bank Account is debited by Rs. 90 and Interest

•
Received Account is credited to Rs. 90.

Interest Account is debited by Rs. 90 and Bank

•
Account is credited to Rs. 90.

• None of the above.

164 A Loan of Rs. 30,000 taken from Bombay Finance now repaid by Loan from Bombay Finance Account is debited by
SBI cheque. Journalize the above. • Rs. 30,000 and Cash Account is credited to Rs.
30,000.
Loan from Bombay Finance Account is debited by
• Rs. 30,000 and Cheque Account is credited to Rs.
30,000.

Loan from Bombay Finance Account is debited by

• Rs. 30,000 and SBI Account is credited to Rs.
30,000.

• None of the above.

165 Proprietor withdrew Rs. 1,000 from Indian Bank and took Rs. 200
for personal expenses. Journalize the above. Cash Account is debited by Rs. 800, Drawings
• Account is debited by Rs. 200 and Indian Bank
Account is credited by Rs. 1,000.

Indian Bank Account is debited by Rs. 1,000 and

• Drawings Account is debited by Rs. 200 and Cash
Account is debited by Rs. 800.

Cash Account is debited by Rs. 800, Proprietor

• Account is debited by Rs. 200 and Indian Bank
Account is credited by Rs. 1,000.

Cash Account is debited by Rs. 800, Personal

• expenses Account is debited by Rs. 200 and Indian
Bank Account is credited by Rs. 1,000.

• None of the above.

166 Dell Laptop purchased for office use from Great Eastern on credit.
Miscellaneous Expenditure Account is debited and
Journalize the above. •
Great Eastern Account is credited.

Purchases Account is debited and Great Eastern

•
Account is credited.
Great Eastern Account is debited and Laptop
•
Account is credited.

Laptop Account is debited and Great Eastern

•
Account is credited.

• None of the above.

167 A Furniture seller sold office Furniture valued Rs. 1,500 on cash to
Cash Account is debited by Rs. 1,500 and
Raju. Pass necessary Journal Entry. •
Furniture Account is credited to Rs. 1,500.
167 A Furniture seller sold office Furniture valued Rs. 1,500 on cash to
Raju. Pass necessary Journal Entry.

Raju Account is debited by Rs. 1,500 and Furniture

•
Account is credited to Rs. 1,500.

Raju Account is debited by Rs. 1,500 and Sales

•
Account is credited to Rs. 1,500.

Cash Account is debited by Rs. 1,500 and Sales

•
Account is credited to Rs. 1,500.

Furniture Account is debited by Rs. 1,500 and Sales

•
Account is credited to Rs. 1,500.

168 Computer Accessories purchased on cash for resale. Pass Purchases Account is debited and Cash Account
necessary Journal Entry. •
is credited.

Computer Accessories Account is debited and Cash

•
Account is credited.

Computer Account is debited and Cash Account is

•
credited.
Purchases Account is debited and Bank Account is
•
credited.
• None of the above.
169 A Cheque of Rs. 2,500 issued to Raju. Pass necessary Journal Cash Account is debited and Bank Account is
Entry. •
credited.

Raju Account is debited by Rs. 2,500 and Cheque

•
Account is credited to Rs. 2,500.

Raju Account is debited by Rs. 2,500 and Bank

•
Account is credited to Rs. 2,500.

Raju Account is debited by Rs. 2,500 and Cash

•
Account is credited to Rs. 2,500.

• None of the above.

170 Cash withdrawal from SBI Bank for personal use of proprietor. Drawings Account is debited and SBI Account is
Pass necessary Journal Entry. •
credited.
SBI Account is debited and Drawings Account is
•
credited.
Proprietor Account is debited and SBI Account is
•
credited.
Drawings Account is debited and Cash Account is
•
credited.

• None of the above.

171 Outstanding Salary paid through cheque. Pass necessary Journal

Outstanding Salary Account is debited and Cheque
Entry. •
Account is credited.

Outstanding Salary Account is debited and Bank

•
Account is credited.

Outstanding Salary Account is debited and Cash

•
Account is credited.
 Bank Account is debited and Outstanding Salary
•
Account is credited.

• None of the above.

172 Mobile Phone bill paid through Cash to Reliance Mobile Stores of
Miscellaneous Expenditure Account is debited by Rs.
Rs. 1,525. Pass necessary Journal Entry. •
1,525 and Cash Account is credited to Rs. 1,525.

Reliance Mobile Stores Account is debited by Rs.

•
1,525 and Cash Account is credited to Rs. 1,525.

Telephone Expenses Account is debited by Rs.

•
1,525 and Cash Account is credited to Rs. 1,525.

• None of the above.

173 Goods returned to Diwan and Sons of Rs. 4,000. Pass necessary
Purchase Return account is debited by Rs. 4,000 and
Journal Entry. •
Diwan and Sons Account is credited to Rs. 4,000.

Diwan and Sons Account is debited by Rs. 4,000

• and Purchase Return Account is credited to Rs.
4,000.

Goods Account is debited by Rs. 4,000 and Purchase

•
Return Account is credited to Rs. 4,000.

Diwan and Sons Account is debited by Rs. 4,000 and

•
Return Inward Account is credited to Rs. 4,000.

• None of the above.

174 Paid Rs. 1,500 to Sunil as Tour Advance by cash. Pass necessary
Tour Advance Account is debited by Rs. 1,500 and
Journal Entry. •
Cash Account is credited to Rs. 1,500.

Sunil Account is debited by Rs. 1,500 and Cash

•
Account is credited to Rs. 1,500.

Tour Expenses Account is debited by Rs. 1,500 and

•
Cash Account is credited to Rs. 1,500.

• None of the above.

175 Security Deposit of Rs. 3,000 paid by cash to Airtel for telephone
Security Deposit Account is debited by Rs. 3,000
connection. Pass necessary Journal Entry. •
and Cash Account is credited to Rs. 3,000.

Telephone Expenses Account is debited by Rs. 3,000

•
and Cash Account is credited to Rs. 3,000.

Airtel Account is debited by Rs. 3,000 and Cash

•
Account is credited to Rs. 3,000.

Cash Account is debited by Rs. 3,000 and Security

•
Deposit Account is credited to Rs. 3,000.

• None of the above.

176 Audit fees of Rs. 25000 received by cheque. Pass necessary
Bank Account is debited by Rs. 25,000 and General
Journal Entry. •
Expenses Account is credited to Rs. 25,000.

Cheque Account is debited by Rs. 25,000 and Audit

•
Fees Account is credited to Rs. 25,000.

Audit Fees Account is debited by Rs. 25,000 and

•
Bank Account is credited to Rs. 25,000.

Bank Account is debited by Rs. 25,000 and Audit

•
Fees Account is credited to Rs. 25,000.

• None of the above.

177 Purchased Samsung Tab for resale by issuing cheque to Eastern Resale Account is debited and Bank Account is
Logica. Pass necessary Journal Entry. •
credited.
Samsung Tab Account is debited and Bank Account
•
is credited.
Purchases Account is debited and Eastern Logica
•
Account is credited.
Purchases Account is debited and Cheque Account is
•
credited.
• None of the above.
178 Installment of Loan is paid through cheque. Loan Account is debited and Bank Account is
•
credited.
Installment Account is debited and Cheque Account
•
is credited.
Loan Account is debited and Cheque Account is
•
credited.
• None of the above.
179 LIC Premium of the owner paid from business bank account. LIC Premium Account is debited and Bank Account is
Journalize the above. •
credited.

Miscellaneous Expenditure Account is debited and

•
Bank Account is credited.

Drawings Account is debited and Bank Account is

•
credited.
Drawings Account is debited and Cheque Account is
•
credited.
• None of the above.
180 Commission paid to Rahul by cash of Rs. 15,000. Journalize the
Commission Account is debited by Rs. 15,000 and
above. •
Profit and Loss Account is credited to Rs. 15,000.

Commission Account is debited by Rs. 15,000 and

•
Cash Account is credited to Rs. 15,000.

Rahul Account is debited by Rs. 15,000 and Cash

•
Account is credited to Rs. 15,000.

• None of the above.

181 Building worth Rs. 1,00,000 purchased from Ideal Estates through
Building Account is debited by Rs. 1,00,000 and
Axis Bank cheque. Journalize the above. •
Cheque Account is credited to Rs. 1,00,000.

Building Account is debited by Rs. 1,00,000 and

•
Cash Account is credited to Rs. 1,00,000.

Building Account is debited by Rs. 1,00,000 and Ideal

•
Estates Account is credited to Rs. 1,00,000.
 Building Account is debited by Rs. 1,00,000 and
•
Axis Bank Account is credited to Rs. 1,00,000.

• None of the above.

182 Office equipment purchased through credit card of the proprietor. Purchases Account is debited and Capital Account is
Journalize the above. •
credited.
Office Equipment Account is debited and Proprietor
•
Account is credited.

Office Equipment Account is debited and Capital

•
Account is credited.

Office Equipment Account is debited and Credit Card

•
Account is credited.
• None of the above.
183 Loan given to Ravi who is a brother of the owner through Demand Loan to Ravi Account is debited and Bank
Draft. Journalize the above. •
Account is credited.
Bank Account is debited and Loan to Ravi Account is
•
credited.
Loan to Ravi Account is debited and Demand Draft
•
Account is credited.
Ravi Account is debited and Bank Account is
•
credited.

• None of the above.

184 Goods sold on credit to Laxmi Stores valued Rs. 15,000 and
Laxmi Stores is debited by Rs. 15,000 and Credit
received half of the amount by cash. Journalize the above. •
Sales Account is credited to Rs. 15,000.

Cash Account is debited by Rs. 15,000 and Sales

•
Account is credited to Rs. 15,000.

Cash Account is debited by Rs. 7,500, Laxmi

• Stores Account is debited by Rs. 7,500 and Sales
Account is credited to Rs. 15,000.

Sales Account is debited by Rs. 15,000 and Cash

• Account is credited by Rs. 7,500, Laxmi Stores
Account is credited by Rs. 7,500

• None of the above.

185 Sold goods returned back due to inferior quality. Journalize the Debtors Account is debited and Return Outward
above. •
Account is credited.
Creditors Account is debited and Return Inward
•
Account is credited.
185 Sold goods returned back due to inferior quality. Journalize the
above.

Creditors Account is debited and Purchase Return

•
Account is credited.

Debtors Account is debited and Sales Account is

•
credited.
• None of the above.
186 Loan given to Shanta Ram an employee of the organization. Shanta Ram Account is debited and Cash Account is
Journalize the above. •
credited.

Loan to Shanta Ram Account is debited and Cash

•
Account is credited.

Cash Account is debited and Loan to Shanta Ram

•
Account is credited.
Employee Account is debited and Organization
•
Account is credited.
• None of the above.
187 A new pick up truck introduced in a running business by the owner
Pick up Truck Account is debited and Capital
of the business. Journalize the above •
Account is credited.

Pick up Truck Account is debited and Owner

•
Account is credited.

Pick up Truck Account is debited and Running

•
Business Account is credited.

• None of the above.

188 Advance received from a debtor of Rs. 1,000. Journalize the

Debtors Account is debited by Rs. 1,000 and Cash is
above. •
credited to Rs. 1,000.

Advance Received from Debtors Account is debited

•
by Rs. 1,000 and Cash is credited to Rs. 1,000.

Cash Account is debited by Rs. 1,000 and

• Advance Received from Debtors Account is
credited to Rs. 1,000.

• None of the above.

189 A company gave an advance of Rs. 3,000 to its employee for a Employee account will be debited and Cash account
tour by way of cash •
credited
Cash account will be debited and Advance account
•
credited

Advance for tour account will be debited and

•
Cash account credited

• None of the above.

190 Purposes of an Accounting system include
• Interpret and record the effects of transactions

Classifying the effect of transaction to facilitate report

•
preparations
190 Purposes of an Accounting system include

Summarize and communicate information to decision

•
makers
• All of the above
191 Liability and Owner's Equity together are also called • Total Liability
• Net Worth
• Equity Fund
• Gross Block
192 Net income equals • Assets - Liabilities
• Revenue - Expenses
• Cash In - Cash Out
• Liabilities - Assets
193 Financial Statements are used by • Owners
• Creditors
• Investors
• All of the above
194 Which of the following event is a subject matter of Accounting?
• Death of the key executive of the business / company

• Strike of workers
Payment of Rs. 10,000 to bank in discharge of
•
outstanding loan

Marriage of the daughter of the Managing Director of

•
the Company.

195 Which of the following event is not a subject matter of Accounting? Quarrel between the Production Manager and
•
Sales Manager

• Loss of Goods worth Rs. 50,000 in fire

• Realization of old bad debts amounting to Rs. 10,000

• Payment of interest Rs. 5,000 on loan

196 Select the correct equation • Owners Equity = Assets + Liability

Owners Equity + Outside Liability
•
= Total Assets

• Assets + Owners Equity = Outside Liability

Outside Equity + Profit = Total

•
Assets
197 Cash Withdrawal by the proprietor would cause - • Cash in hand to decrease
• External liability to decrease
• Total liabilities to increase
• Total assets to remain unchanged
198 Choose the odd one from the following accounts • Salary A/c
• Wages A/c
• Rent A/c
• Rent Outstanding A/c
199 Choose the odd one from the followings accounts • Patents A/c
• Building A/c
• Trade Investment A/c
• Stock in Trade A/c
200 Both total assets and owners capital are increased by • credit purchases
• retained earnings
• bank loans
• drawings
201 Both total assets and owners capital are reduced by • credit purchases
• retained earnings
• bank loans
• drawings
202 Money owed to an outsider is • an Asset
• a Liability
• Profit
• Capital
203 If total assets of a business are Rs.1,80,000 and total outside • 1,30,000
liabilities are Rs. 50,000, the net worth of the firm will be
• 2,30,000
• 1,80,000

• 50,000

204 Which column does not exist in the three column cash book • Cash Column
• Bank Column
• Petty cash Column
• Discount Column
205 Trade Mark is • an Intangible Asset
• a Current Asset
• a Nominal A/c
• a Personal A/c
206 Rent receivable is a • Nominal A/c
• Real A/c
• Representative Personal A/c
• None of the above
207 Wages outstanding is a • Nominal A/c
• Real A/c
• Representative Personal A/c
• None of the above
208 Cash A/c is a • Nominal A/c
• Real A/c
• Personal A/c
• Fictitious A/c
209 Cash A/c appearing in Trial Balance is transferred to • Balance Sheet Asset Side
• Balance Sheet Liability Side
209 Cash A/c appearing in Trial Balance is transferred to

• Trading A/c
• Profit and Loss A/c
210 Cash in hand is the Assets. • Least Liquid
• Most Liquid
• Fixed Liquid
• Intangible Liquid
211 Advance Salary A/c is classified as • Personal Account
• Real Account
• Nominal Account
• Both A and B
212 Rent A/c is • Personal Account
• Real Account
• Nominal Account
• Both B and C
213 Proprietor's A/c is • Personal Account
• Real Account
• Nominal Account

• None of the above

214 Office Building is classified as • Revenue

• Expenses
• Assets
• Liabilities
215 Accounts Payable is classified as • Revenue
• Expenses
• Fixed Liability
• Current Liability
216 Retained Earning is classified as • Revenue
• Owner's Fund
• Assets
• Liabilities
217 Rs. 1,200 being Income Tax liability of proprietor paid by the firm • Income Tax A/c
will be debited to
• Drawings A/c
• Profit and Loss A/c
• None of the above
218 Purchase A/c will have • Debit Balance
• Credit Balance
• NIL Balance
• Debit or Credit Balance
219 Opening Stock Rs 4,000 Purchases Rs 26,000 Closing Stock Rs • Rs. 28,000
2,000.
What would be the Cost of Goods Sold? • Rs. 30,000
• Rs. 26,000

• Rs. 32,000
220 Opening Stock is Rs. 4,000, Purchases Rs. 26,000, Closing Stock • Rs. 33,000
Rs. 2,000, Direct Expenses Rs.5,000, Indirect Expenses Rs. 3,500
What would be the Cost of Goods Sold? • Rs. 38,500
• Rs. 28,000

• Rs.32,000

221 What would be the cost of goods purchased when Opening Stock • Rs. 28,000
is Rs. 4,000, Sales Rs. 45,000, Closing Stock Rs. 2,000, Direct
Expenses Rs. 5,000, Indirect Expenses Rs. 3,500 and Gross Profit • Rs. 33,000
Rs. 5,000? • Rs. 32,000
• Rs. 38,000
222 Which of the following A/c would not transferred to Profit and • Bad Debts
Loss A/c ?
• Discount Allowed
• Accumulated Depreciation A/c

• All of the above

223 The cash book shows a balance of Rs. 11,000 which was different • Rs. 12,750
from the pass book balance. The difference is found to be due to a
credit entry in pass book amounting to Rs. 2,000 for direct • Rs. 12,250
payment by a customer and a debit of Rs. 250 for bank charges • Rs. 13,750
on collection of outstation cheques and other services. What
would be the balance as Per bank Pass book?
• Rs. 13,500

224 Mr. T issued cheques worth Rs. 25,000 in March, 20xx out of • Rs. 30,000
which cheques worth Rs. 10,000 only were presented for payment
by 31st March, 20xx. Balance as per pass book was Rs. 45,000. • Rs.20,000
What would be balance as per Cash Book? • Rs.25,000

• Rs.15,000

225 An enterprise has 10,000 Kgs of PVC compound @ Rs. 15 per Kg • Rs. 46,500
on 1st April, 2005. The fresh receipts and issue during the month
of April 2005 were as under: • Rs.48,000
10-April receipt 5,000 Kg @ Rs. 16, 13-April issue for production • Rs.46,000
8,000 Kg,
18-April receipt 6,000 Kg @ Rs. 15.5 Kg, 22-April issue 10,000 kg.
What is the value of Closing Inventory on 31-April under FIFO
Method?
• Rs.45,000

226 The term Realizable Value is defined as

estimated selling price - estimated costs
•
necessary to make the sales

• current selling price

• current replacement price
• book value adjusted for inflation
227 Inventories are most likely to mean goods
• Spare parts held for break down of machinery
227 Inventories are most likely to mean goods

• Held for sale in the ordinary course of business

• Fixed assets purchased for sale

• Shares purchased for sale
228 Inventories are valued at lower of cost or • Realizable Value
• Replacement Value
• Net Realizable Value
• Market Value
229 The principal factor in measurement of depreciation is • total cost
/ are
• residual value
• useful life
• All of the above
230 Which of the following Assets does not suffer Depreciation? • Plant and Machinery
• Building
• Land

• Mineral Mines

231 Under Diminishing Balance Method, annual Depreciation • Increases every year
• Decreases every year
• Is constant every year
• None of the above
232 Land is not depreciable asset because • Its value always increases
• There is no maintenance cost of land

• Life of the land is unlimited/indefinite

• Land cannot be depreciated

233 According to 'Business Entity Concept' , business is treated as • Owners
separated from its .
• Creditors
• Managers
• None of the above
234 The transactions recorded through accounting equation are based • Money Measurement
on .
• Cost Concept
• Going Concern Concept
• Dual Aspect Concept
235 Accounts relating to properties or assets are known as • Real Accounts
.
• Personal Accounts
• Nominal Accounts
• None of the above
236 Accounts relating to income, revenue, gain, expenses and losses • Real Accounts
are termed as .
• Personal Accounts
• Nominal Accounts
• None of the above
237 In case of Nominal Accounts, we Credit . • the receiver
• what comes in
• all incomes and gains
237 In case of Nominal Accounts, we Credit .

• what goes out

238 In case of Personal Accounts, we Debit . • the receiver
• what comes in
• all expenses and losses
• the giver
239 In case of Real Accounts, we Debit . • the giver
• what comes in
• incomes and gains

• what goes out

240 Wages account, rent account, commission account, interest • Real Accounts
received account are examples of .
• Personal Accounts
• Nominal Accounts
• None of the above
241 Select the correct equation(s)
• Capital + Liabilities = Fixed Assets + Current Assets

Capital + Liabilities - Current Assets

•
= Fixed Assets
• Assets = Liabilities + Capital
• All of the above
242 Mr. Ashok buys clothing of Rs. 50,000 paying cash Rs. 20,000. • Rs. 30,000
What is the amount of expense as per the accrual concept?
• Rs. 20,000
• Rs. 50,000
• Nil
243 Balance of cash column in cash book has _ • Dr. balance
• Cr. Balance
• Dr. or Cr. Balance
• None of the above
244 Depreciation on fixed assets is • Capital expenditure
• Revenue expenditure
• Deferred revenue expenditure
• None of the above
245 Payment into the business by proprietor is receipt. • Revenue receipts
• Capital receipt
• Deferred revenue receipt
• None of the above
246 When businessman pays money to bank it is known as • Withdrawal
• Deposit
• Expenses
• Liability
247 When balance as per cash book is the starting point, cheques • Subtracted
issued but not presented for payment are
• Not required to be adjusted.
• Added

• None of the above

248 Depreciation is a measure of the wearing out, consumption or
other loss of value of a depreciable asset arising from • Use

• Effluxion of time

Obsolescence through technology and market

•
changes
• Any of the above
249 Depreciable assets are assets which Are expected to be used for more than on
•
accounting period
• Do not have a limited useful life
Are held by the organization for sale in regular course
•
of business

• All of the above

250 Under method depreciation is provided as a fixed • Fixed instalment method

percentage of the written down value of the asset.
• Annuity method
• Reducing balance method
• All of the above
251 Original cost = Rs. 1,76,400. Salvage value = Rs. 8,400. Useful • 29,400
Life = 6 years. Annual depreciation under SLM = ?
• 28,000
• 30,800
• None of the above
252 HI-Fi Ltd. acquired machinery on 1st January, 2012 at a cost of • 3,600 and 3,240
Rs. 36,000 and spent Rs. 4,000 for its installation. The firm writes
off depreciation at 10% • 4,000 and 3,600
p.a. on WDV basic. The books are closed on 31st December. • 3,600 and 4,000
Depreciation for 1st and 2nd year will be Rs. and Rs.
• 3,240 and 2,916

253 T Ltd. acquired a machine of 1st January, 2010 at a cost of Rs. • Profit - Rs. 1,023
1,40,000 and spent Rs. 10,000 on its installation. The firm writes
off depreciation at 15% • Loss - Rs. 1,023
p.a. on WDV. The books are closed on 31st December every year. • Profit - Rs. 5,119
After 3 years machine sold for Rs. 87,000. Profit / Loss on sale = ?

• Loss - Rs. 5,119

254 S Ltd. acquired a machine on 1st January, 2010 at a cost of Rs. • Profit - Rs. 4,881
1,40,000 and spent Rs. 10,000 on its installation. The firm writes
off depreciation at 15% • Loss - Rs. 4,881
p.a. on WDV. The books are closed on 31st December every year. • Profit - Rs. 11,023
After 3 years machine sold for Rs. 97,000. Profit / Loss on sale =
?
• Loss - Rs. 11,023

255 A person who brings capital in the business is called • debtor

• creditor

• proprietor

• none of the above.

256 Goodwill is a • fixed asset
• current asset
256 Goodwill is a

• intangible asset
• fictitious asset
257 Outstanding salaries are shown as • an expense
• a liability
• an income
• an asset
258 Cash purchases are entered in the . • cash account
• cash book
• purchases book
• sales book
259 All . expenses are recorded in the Trading A/c. • direct
• indirect
• capital

• none of these

260 Outstanding salary account is • Real account

• Personal account
• Nominal account
• None of the above
261 The trial balance of Meghna shows the opening stock of Rs. • Debited to the trading account
10,000 which will be .
• Credited to the trading account

• Deducted from closing stock in the balance sheet

• Added to closing stock in the balance sheet

262 Total debtors = Rs. 5000, the closing balance of Provision for • 4500
Doubtful Debt A/c is Rs. 500. Amount of Debtors in Balance Sheet
would be? • 5500
• 5000
• 500
263 Trial balance is prepared to check accuracy of • Ledger accounts balances
• Balance sheet balances
• Income statement balances
• Cash flow statement balances
264 The Accounting Equation is = + • Assets, Liabilities, Capital
• Liabilities, Assets, Capital
• Assets, Revenue, Expenses
• Capital, Expenses, Liabilities
265 Example of an asset is • Owned Factory
• Loan received
Amount owed to suppliers for purchase of goods on
•
credit
• the capital
266 Which of the following is not asset? • Factory
• Building

• Cash at bank
266 Which of the following is not asset?

• Loan from Jimmy

267 Choose the correct statement • Patent Right is a Tangible Asset
• Bills Receivable is a Fixed Asset

• Bank Overdraft is a current liability

• Outstanding rent is a fixed liability

268 Book-keeping is mainly concerned with which feature • Financial Data Recording

Designing the systems of recording, classifying and

•
summarizing the recorded data

• Data interpreting for internal and external users

• All of the above

269 Liability and owner's equity are also called • Total Liability
• Net Worth
• Equity Fund
• Gross Block
270 Net income equals • Assets - Liabilities
• Revenue - Expenses
• Cash in - Cash out
• Liabilities - Assets
271 Financial Statements are used by • Owners
• Creditors
• Investors
• All of the above
272 Tick the wrong statement
• Accounting is the language of business

Transactions are recorded in Quantitative terms

•
only
Accounting is the Art of recording, classifying and
•
summarizing

Transactions and events of Financial Character are

•
subject matter of Accounting

273 Purchase of shares for cash would lead to • no change in total assets
• total assets to decrease
• total assets to increase
• total liabilities to increase
274 Loss of stock by fire would lead to • no change in total assets
• total assets to decrease
• total assets to increase

• total assets and owners equity to decrease

275 The difference between assets and liabilities is • Bank Overdraft

• Retained Profit
• Capital or Owners Equity
• Creditors
276 Money owed to an outsider is a / an • Asset
• Liability
• Profit
• Capital
277 If the owners equity is Rs. 80,000 and external liability Rs. 40,000, • 1,00,000
Cash in hand Rs. 20,000, the total assets of the firm will be
• 1,20,000
• 80000

• 1,40,000

278 Net worth is the difference between • Total Assets and Total Liabilities

• Total Assets and External Liabilities

• Total Liabilities and Current Assets

• Total Assets and Current Liabilities
279 If a business has negative net worth what does it signify?
• Total assets are more than total liabilities

• Accumulated losses are more than owners capital

• Huge cash logged up in idle assets

• Outside Liabilities exceeds owners capital

280 Revenue is generally considered as realized • At the time of agreement to sale

• At the time of receipt of cash
• At the time of sale
• At the time of production of goods
281 Coal Mine is a/an • Fictitious Asset
• Intangible Asset
• Current Asset
• Wasting Asset
282 Going concern concept assumes that
The business entity would continue to operate
•
independent of the life of the proprietor / owner

Duration of the business is limited to the life span of

•
the owner / proprietor

Life of the business is defined by the contractual

•
agreement
• Business is for short term
283 Matching Principle requires Expenses and revenue should be incurred
•
simultaneously

Expenses incurred in an accounting period

• should be matched with the revenue recognized
in that period

• Expenses should not exceed revenue

• Expenses should be commensurate with income

284 Inappropriate selection of the accounting policy decision may be
• overstating the financial position performance

over/understating the performance of financial

•
position

• overstatement of losses

• understatement of profit

285 Which of the following is / are Form(s) of a Cash Book • Single Column Cash Book
• Double Column Cash Book
• Three Column Cash Book
• All of the above
286 Salaries outstanding for the particular month will appear • on the debit side of the cash book
• on the credit side of the cash book
• As a contra entry in the cash book
• Nowhere in the cash book
287 The contra entry is passed only if • Petty Cash Book is prepared

• The cash book contains more than 1 column

• Single column cash book is prepared

• Three column cash book is prepared
288 Goods worth Rs. 20,000 sold to Mr. X for cash will be recorded in • The Cash Book
• The Sales Book
• The Journal Book
• The Stock Register
289 Which column of a cash book is never balanced • discount
Cash Withdrawal by the proprietor for self use is a
•
revenue expenses
• bank
• none of the above
290 Which column of a Cash Book cannot have credit closing • Cash Column
balance?
• Discount Column
• Bank Column
• All of the above
291 Cash Book is a book. • Principal Book
• Subsidiary Book
• Kaccha Book
• Ledger itself
292 Cheques received but not banked is generally shown in • Cash
column of cash Book.
• Discount
• Bank
• none of the above
293 In cash book with discount column, total of discount column of • Dr. of Discount Allowed A/c
debit side of the cash book is posted to the
• Dr. of Discount Received A/c
293 In cash book with discount column, total of discount column of
debit side of the cash book is posted to the

• Cr. of Discount Allowed A/c

• Cr. of Discount Received A/c
294 In cash book with discount column, total of discount column of • Dr. of Discount Allowed A/c
credit side of the cash book is posted to the
• Dr. of Discount Received A/c
• Cr. of Discount Allowed A/c
• Cr. of Discount Received A/c
295 Which of the following is a fictitious Asset? • Goodwill
• Cash reserve
• Preliminary expenses A/c
• Claims receivable
296 Which of the following is not a fictitious Asset? • Accumulated losses

• Discount on issue of shares and debentures

• Deferred revenue expenditure

• Prepaid Rent
297 Goodwill A/c is a/an • Tangible asset
• Intangible Asset
• Fictitious Asset
• none of the above
298 Trade Mark is a /an • Intangible Asset
• Current Asset
• Nominal A/c
• Personal a/c
299 Which of the following is a Nominal A/c ? • Insurance Prepaid A/c
• Insurance Premium A/c
• Bank A/c
• Capital A/c
300 Which of the following is a Real A/c ? • Building A/c
• Preliminary Expenses
• Discount A/c
• none of the above
301 Which of the following is an example of tangible real assets? • Patent
• Goodwill
• Machinery
• Trade Debtors
302 Prepaid/ Advance Salary A/c is classified as • Personal A/c
• Real A/c
• Nominal A/c
• Both A and B
303 Bills Payable A/c is • Personal A/c
• Real A/c
• Nominal A/c
• none of the above
304 Rent A/c is • Personal A/c
304 Rent A/c is

• Real A/c
• Nominal A/c

• Both B and C

305 Proprietor's A/c is • Personal A/c

• Real A/c
• Nominal A/c
• none of the above
306 Patents A/c is • Personal A/c
• Real A/c
• Nominal A/c
• Both A and B
307 Salary is classified as • Revenue
• Expenses
• Capital Expenditure
• Liabilities
308 Sundry Debtors is classified as • Revenue
• Expenses
• Assets
• Liabilities
309 Subscription Received is classified as • Revenue Receipt
• Expenses
• Assets
• Capital receipt
310 Stock or Inventories is classified as • Revenue Receipt
• Expenses
• Current Assets
• Fixed Assets
311 Freehold Land and Building is classified as • Revenue
• Expenses
• Fixed Assets
• Current Assets
312 Freight and Insurance is classified as • Revenue
• Expenses
• Capital Expenses
• Liability
313 Wages outstanding is classified as • Assets
• Revenues
• Fixed Liability
• Current Liability
314 Salary paid to Mohan an employee of the firm will be debited to • Mohan A/c
• Salary A/c
• Cash A/c
 • none of the above

315 Recovery of old bad debts written off is credited to • Miscellaneous income A/c
• Sundry Debtors A/c
• Suspense A/c
• Bad Debts recovered A/c
316 Rs.1,500 being LIC premium of proprietor paid by the firm will be • Income Tax A/c
debited to
• Drawings A/c
• Profit and Loss A/c
• none of the above
317 Rs.1,250 withdrawn by the proprietor to meet his household • Household A/c
expenses will be debited to
• Drawings A/c
• Profit and Loss A/c
• none of the above
318 Goods worth Rs. 2,000 distributed as free sample will be debited • Trading A/c
to
• Profit and Loss A/c
• Advertisement A/c
• Charity A/c
319 Goods worth Rs. 3000 were purchased on which the trader • Rs. 3,000
allowed Rs. 200 as trade discount and 5% as cash discount if paid
immediately. Purchase A/c will debited by • Rs. 2,800
• Rs. 2,750
• Rs. 2,660
320 The term Capital Expenditure is generally used to signify that • Increases quality of Fixed Asset
expenditure which
• Increases quantity of Fixed Asset

• Results in improvement / replacement of Fixed Asset

• All of the above

321 Which of the following is a Revenue Expenditure?
• Freight paid on purchase of Plant and Machinery

• Legal Expenses paid to acquire a property

Expenses incurred to reduce working capital

•
requirement

• Annual whitewash of the factory building

322 Which of the following is a Capital Expenditure? • Cost of a standby equipment

• Cost of purchase of goods for resale

• Repair of a second hand equipment

• Annual maintenance of computer systems

323 Which of the following is not a Capital Expenditure? Rs.10,000 spent on overhauling of a second hand car
•
purchased
323 Which of the following is not a Capital Expenditure?

Rs.10,000 paid as Excise Duty on New Capital

•
Equipment

Rs.15,000 spent on construction of temporary

•
structure for storing building material

• Rs.10,000 paid for removal of old waste and scrap

324 An amount of Rs. 25,000 spent on travelling expenses of the • Capital Expenditure
company's Directors to a foreign trip for purchase of an asset to be
issued in the production process. This is a • Revenue Expenditure
• Deferred revenue Expenditure
• None of the above
325 An amount of Rs. 15,000 spent on a lawyer's fees to defend a suit • Capital Expenditure
for claiming that the factory site belongs to the plaintiff's land. This
is a . • Revenue Expenditure
• Deferred revenue Expenditure
• None of the above
326 A company incurred Rs. 5 crore on massive advertisement • Capital Expenditure
campaign at the time of launch of a new product in the market.
This expenditure is a • Revenue Expenditure
• Deferred revenue Expenditure
• None of the above
327 Capital Receipts are shown in • Profit and Loss Account
• Balance Sheet
• Trading A/c
• Added to capital fund
328 Which of the following is / are an example of Capital Receipts? • Sale proceed of fixed asset

• Loan raised from Financial Institutions

• Sale of Investment
• All of the above
329 Which of the following is / are an example of Revenue Receipts?
• Interest on Fixed Deposit held with the bank

• Entrance fee received by a health club

Short term loan raised from PSU bank to augment

•
working capital requirement

• sale of fixed asset

330 Wrong classification of expenses into revenue and capital • Under statement of profit or loss
expenditure lead to
• Over statement of profit or loss
• Distortion in current ratio
• Both A and B
331 Choose Capital Receipt from the following
• Money raised through issue of shares

• Bank loan
• Sale of investments
• All of the above
332 Sales in Trading A/c includes • Only Cash Sales
• Only Credit Sales
• Cash and Credit Sales
332 Sales in Trading A/c includes

• sale of fixed asset

333 Purchases in Trading A/c includes • Only Cash Purchases
• Only Credit Purchases
• Both Cash and Credit purchases
• Purchase of fixed asset
334 Book of Original Entry is called • A Journal
• Memorandum A/c
• Kaccha record
• Voucher
335 Another term used for recording a business transaction is • Journalizing
• Vouching
• Ledger Posting
• Consolidation
336 A journal is also known by • Account current
• Book of original entry
• purchase day book
• current account
337 Expenses A/c will always have • Debit Balance
• Credit Balance
• NIL
• Debit or Credit Balance
338 Commission A/c will have • Debit Balance
• Credit Balance
• NIL
• Debit or Credit Balance
339 Which of the following A/c has a debit balance? • Debtors A/c
• Sales A/c
• Creditors A/c
• Bank Overdraft A/c
340 Which of the following A/c has a credit balance? • Purchase A/c
• Sales A/c
• Goodwill A/c
• Cash in hand A/c
341 Interest A/c will have • Debit Balance
• Credit Balance
• NIL

• Debit or Credit Balance

342 Discount A/c will have • Debit Balance

• Credit Balance
• NIL
• Debit or Credit Balance
343 Sales A/c will have • Debit Balance
343 Sales A/c will have

• Credit Balance
• NIL
• Debit or Credit Balance
344 Bank A/c will have • Debit Balance
• Credit Balance
• NIL
• Debit or Credit Balance
345 Rent prepaid A/c appearing in the Trial Balance is
• Shown on the liability side of Balance Sheet

• Shown on the Assets side of the Balance Sheet

• Shown on debit side of Profit and Loss A/c

• Credited to Profit and Loss A/c

346 Salary outstanding A/c appearing in the Trial Balance is
• Shown on the liability side of Balance Sheet

• Shown on the Assets side of the Balance Sheet

• Shown on debit side of Profit and Loss A/c

• Credited to Profit and Loss A/c

347 Commission received in Advance A/c appearing in the Trial
Balance is • Shown on the liability side of Balance Sheet

• Shown on the Assets side of the Balance Sheet

• Shown on debit side of Profit and Loss A/c

• Credited to Profit and Loss A/c

348 Advance tax A/c paid appearing in the Trial Balance is
• Shown on the liability side of Balance Sheet

• Shown on the Assets side of the Balance Sheet

• Shown on debit side of Profit and Loss A/c

• Credited to Profit and Loss A/c

349 Closing Entries are those which are passed • at the end of the year
• at the beginning of the year
• for rectification of errors
• for suppressing profit
350 Opening entries are those which are passed • at the end of the year
• at the beginning of the year
• for rectification of errors
• for suppressing profit
351 Adjustment entries are those which are passed • at the end of the year
• at the beginning of the year
For adjustment of prepaid and outstanding
•
expenses /income
• for suppressing profit
352 Depreciation A/c appearing in the Trial balance will
• be debited to profit and loss A/c only
352 Depreciation A/c appearing in the Trial balance will

be debited to profit and loss A/c and deducted from

•
the concerned Fixed Assets in the Balance Sheet

• Be credited to Profit and Loss a/c

• Shown on liability side of the balance sheet

353 Closing Stock A/c appearing in the Trial balance will • be credited to Trading A/c only

be credited to Trading A/c and shown on the Assets

•
side as closing Stock

• be shown on the Assets side as closing Stock

• shown on Debit side of Trading A/c

354 Profit on Sale of Furniture is shown • On the credit side of the Trading A/c

• On the credit side of the Profit and Loss A/c

• Directly added to the Capital A/c

• Being non operating item ignored
355 Loss on sale of old car is shown • On the debit side of Trading A/c

• On the debit side of the Profit and Loss A/c

• Directly deducted from the Capital A/c

• Being non operating item ignored

356 What would be the cost of goods sold if Opening Stock is Rs. • Rs. 28,000
4,000, Purchases Rs. 26,000, Closing Stock Rs. 2,000?
• Rs. 30,000
• Rs. 26,000
• Rs. 32,000
357 What would be the cost of goods sold if Opening Stock is Rs. • Rs. 33,000
4,000, Purchases Rs. 26,000, Closing Stock Rs. 2,000, Direct
Expenses Rs.5,000, and Indirect Expenses Rs. 3,500? • Rs. 38,500
• Rs. 28,000
• Rs.32,000
358 Calculate Sales amount if Opening Stock Rs. 4,000, Cost of • Rs. 28,000
Goods Sold Rs. 30,000, Closing Stock Rs. 2,000, Direct Expenses
Rs. 5,000, Gross Profit Rs. 1,500. • Rs. 31,500
• Rs. 32,000
• Rs. 33,500
359 Total Assets of a firm is Rs. 1,00,000, outside liability amounted to • Rs. 60,000
Rs. 40,000, total capital contributed by the partners would be
• Rs. 1,40,000
• Rs. 40,0000
• Rs. 80,000
360 Total Assets of a firm is Rs. 1,50,000, Capital amounted to Rs. • Rs. 70,000
70,000, total outside liabilities would be
• Rs.80,000
• Rs.40,000
• Rs.20,000
361 Carriage on Goods purchased is shown in • Profit and Loss A/c
• Trading A/c
• Balance Sheet
• Suspense A/c
362 Carriage on Goods sold is shown in • Profit and Loss A/c
• Trading A/c
• Balance Sheet
• Suspense A/c
363 The company paid Rs. 5000 as one of the installment of an
outstanding bill. What effect this transaction have on the financial • No change in assets, liability decreased by Rs. 5,000
position of the company? Assets less by Rs. 5,000, liability decreased by
•
Rs. 5,000

• Assets increase by Rs. 5,000, no change in liability.

Assets increase by Rs. 5,000, liability increase by Rs.

•
5,000
364 Dividend unpaid is shown as • Current liability
• Current Asset
• By way of notes to accounts
• Card item in Profit and Loss A/c
365 Loss on sale of old Furniture and fittings is debited to • Depreciation A/c
• Profit and Loss A/c
• Trading A/c
• Furniture and fittings A/c
366 Select the false statement
• Sale of Plant and Machinery is a revenue receipt

Any amount which is unreasonably high need not be

•
a Capital Expenditure

Income tax of the sole proprietor paid is treated as

•
drawing
• Bills Payable is a Current Liability
367 Any asset having physical existence is known as • Fictitious Asset
• Tangible Asset
• Goodwill
• Current Assets
368 From the following details calculate net profit of XYZ Ltd. Opening • Rs.25,000
Stock Rs. 1,50,000, Manufacturing Expenses Rs. 30,000, Selling
and Distribution expenses Rs. 20,000, Administrative Expenses • Rs. 35,000
Rs. 10,000, Financial Expenses Rs. 5,000, Sales Rs. • Rs. 20,000
2,40,000. Gross Profit on Sales @ 25%

• Rs. 15,000

369 From the following details calculate net profit of Avon Industries • Rs.25,000
Ltd. Opening Stock Rs. 1,50,000, Manufacturing Expenses Rs.
30,000, Selling and Distribution expenses Rs. 20,000, • Rs. 35,000
Administrative Expenses Rs. 10,000, Financial Expenses Rs. • Rs. 20,000
5,000, Depreciation on Office Building Rs. 6,000, Provision for Bad
Debt Rs. 4,000, Sales Rs. 2,80,000. Gross Profit on Sales @
25%
• Rs. 15,000

370 From the following details calculate net profit of Star Ltd. Opening • Rs. 21,000
Stock Rs. 1,50,000, Manufacturing Expenses Rs. 30,000, Selling
and Distribution expenses Rs. 20,000, Administrative Expenses • Rs. 32,000
Rs. 10,000, Financial Expenses Rs. 5,000, Sales Rs.
2,40,000. Gross Profit on Sales @ 20% • Rs. 13,000
 Stock Rs. 1,50,000, Manufacturing Expenses Rs. 30,000, Selling
and Distribution expenses Rs. 20,000, Administrative Expenses
Rs. 10,000, Financial Expenses Rs. 5,000, Sales Rs.
2,40,000. Gross Profit on Sales @ 20%

• Rs. 19,000

371 From the following details calculate net profit of ABC Ltd. Opening • Rs. 55,000
Stock Rs. 1,50,000, Manufacturing Expenses Rs. 30,000, Selling
and Distribution expenses Rs. 23,000, Administrative Expenses • Rs. 35,000
Rs. 12,000, Financial Expenses Rs. 5,000, Sales Rs. • Rs. 70,000
2,80,000, Interest on FD received Rs.5,000. Gross Profit on Sales
@ 25%.
• Rs. 65,000

372 A Bank Reconciliation Statement is a statement prepared to • Trial Balance

reconcile
Profit as per books of account with the profit as per
•
Income tax returns
Cash balance as per cash book with bank balance as
•
per pass book

Bank Balance as per cash book with bank

•
balance as per bank pass book

373 A Bank Reconciliation Statement is prepared by the • Bank

• Creditors
• Business / enterprise
• Supplier
374 While adjusting the cash balance which one of the following is not
taken into account • Payment directly received by bank as per instructions

Payment directly made by the bank as per standing

•
instructions
• Mistake in Cash Book
• Mistake in Pass Book
375 Which of these prepare Bank Reconciliation Statement ? • Business Enterprises
• Statutory Auditor
• Customer
• Reserve Bank of India
376 An amount of Rs. 2,500 is debited twice in the bank column of
cash book. When credit balance as per pass book is the starting • Add Rs. 2,500 to balance as per pass book
point which one of these adjustments would be done at the time of
reconciliation • Deduct Rs. 2,500 to balance as per pass book

• Add Rs. 5,000 to balance as per pass book

• Deduct Rs. 5,000 to balance as per pass book

377 Which one of these is not a cause of difference in balance as per • Errors in cash book
pass book and as per cash book
• Errors in pass book
• Cheques deposited and cleared

• Cheques issued but not presented for payment

378 Mr. X issued cheques worth Rs. 15,000 in March 2008 out of • Rs. 15,000
which cheques worth Rs. 10,000 only were presented for payment
by 31st March,2008. While reconciling bank and cash book • Rs. 10,000
balance as on 31st March,2008, how much would be added to • Rs. 5,000
balance as per cash book to arrive at balance as per Pass Book.
378 Mr. X issued cheques worth Rs. 15,000 in March 2008 out of
which cheques worth Rs. 10,000 only were presented for payment
by 31st March,2008. While reconciling bank and cash book
balance as on 31st March,2008, how much would be added to
balance as per cash book to arrive at balance as per Pass Book.
• Rs. 7,500

379 Mr. Y presented three cheques of Rs. 3,000, Rs. 4,500 and Rs. • Rs. 3,600
3,600 with the bank on 28th March, 2008. Out of these cheques
amounting to Rs.4,500 and Rs. • Rs.3,000
3,000 were shown in the Pass book in the month of April • Rs. 4,500 and Rs.3,000
2008.While reconciling the balance on 31-03-
2008 which of these cheques would be taken in reconciliation?
• Rs. 3,600 and Rs. 3,000

380 Unfavorable balance as per bank pass book means which of these • Bank Overdraft
• Debit balance in pass book
• Debit balance in Cash Book
• Both ( A ) and ( B )
381 Bank Reconciliation Statement is prepared to
Reconcile cash at bank balance as per cash book
•
with Bank balance as per Bank pass book

Reconcile petty cash in hand with cash balance as

•
per Cash Book

Reconcile total of Debit Side of Cash Book with credit

•
side of Bank Pass Book

• All of the above

382 Bank reconciliation Statement is prepared by • Sole Proprietor Concern
• Partnership Firm
• Corporate Bodies
• All of the above
383 Entry on the credit side of Bank pass book implies • Cash withdrawn
• Cash/cheque deposited in Bank
• Business expenses
• Personal expenses
384 Credit Balance in Bank pass book means • Bank Overdraft
• Bank Balance
• Balance as per Cash Book
• Total of bank A/c
385 Debit balance in Bank pass book means • Bank Overdraft
• Bank Balance
• Balance as per Cash Book

• Total of bank A/c

386 Which of these types of errors are not detected during Bank
Reconciliation? • Cash embezzlement by the cashier

• Cheque deposited but not credited by bank

• Casting mistakes in bank column of cash book

Interest or commission charged by the bank but not

•
accounted for in cash book

387 Mr. T issued cheques worth Rs. 25,000 in March, 2009 out of • Rs. 30,000
which cheques worth Rs. 10,000 only were presented for payment
by 31st March, 2009. Balance as per pass book was Rs. 45,000. • Rs.20,000
What would be balance as per Cash Book?
387 Mr. T issued cheques worth Rs. 25,000 in March, 2009 out of
which cheques worth Rs. 10,000 only were presented for payment
by 31st March, 2009. Balance as per pass book was Rs. 45,000.
What would be balance as per Cash Book? • Rs.25,000
• Rs.15,000
388 If we take balance as per Cash Book, which of the following will be • Interest given by bank
added to get balance as per Pass Book.
• Interest charged by bank
• Cheque deposited but not cleared
Payments made by the bank as per standing
•
instructions
389 If we take balance as per Pass Book, which of the following will be • Interest given by bank
deducted to get balances as per cash book?
• Interest charged by bank
• Cheque deposited but not cleared
Payments made by the bank as per standing
•
instructions
390 Which of these reasons are for bank pass book showing higher • cheque issued but not paid
balance than cash book?
• cheque deposited but not cleared
• Direct payment made by bank
• Interest charged by bank
391 Which of these reasons are for bank pass book showing less • cheque issued but not paid
balance than cash book?
• Payments directly received by the bank

• Direct payment by bank or interest charged

• Interest allowed by bank

392 Select the correct statement
• inventory valuation effects only Profit and Loss A/c

• inventory valuation effects only financial position

inventory valuation should be valued at lower of

•
cost or market price whichever is less

All the methods of inventory valuation give same

•
value of closing stock

393 Which of these is not one of the objectives of Inventory Valuation? • To determine true profit and loss

• To show true financial position of the business

• To properly value closing stock

• To evade tax liability
394 The specific identification method
Prices inventory by identifying the cost of each
•
item in ending inventory

Is based on the assumption that the cost of the first

• item acquired should be assigned to the first item
sold
Uses average cost of the goods available for sale
•
during the period
• None of the above
395 The average cost method Prices inventory by identifying the cost of each item in
•
ending inventory
Is based on the assumption that the cost of the first
• item acquired should be assigned to the first item
sold
Uses average cost of the goods purchased during
•
the period
 • None of the above
396 The Last in First Out (LIFO) method Prices inventory by identifying the cost of each item in
•
ending inventory
Is based on the assumption that the cost of the first
• item acquired should be assigned to the first item
sold
Uses average cost of the goods available for sale
•
during the period

Is based on the assumption that the last items

•
acquired is first issued

397 The First in First Out (LIFO) method Prices inventory by identifying the cost of each item in
•
ending inventory

Is based on the assumption that the cost of the

• first item acquired should be assigned to the first
item sold

Uses average cost of the goods available for sale

•
during the period
Is based on the assumption that the cost of the last
• item acquired should be assigned to the first item
sold
398 Find the cost of goods sold from the following details. Purchases • Rs.1,20,000
Rs. 1,00,000, Opening Stock Rs. 20,000, Closing Stock Rs.
30,000. • Rs. 90,000
• Rs. 1,30,000
• Rs. 1,10,000
399 is the system of ascertaining inventory by taking an actual • Periodic Inventory System
count of the inventory items on hand at a particular date.
• Perpetual Inventory System
• Survey Method
• None of the above
400 When inventory is purchased and held for some identified • LIFO
purpose, then which method of inventory valuation is more
appropriate. • FIFO
• HIFO

• Specified identification method

401 Which of the following is odd one • Plant and Machinery

• Raw Materials
• Work in progress
• Finished Goods
402 Specific identification method of inventory valuation involves -
• Keeping track of the purchase of each specific unit

• Keeping track over the units being sold

Pricing closing stock at the actual price of each and

•
every item not sold
• All of the above
403 Depreciation is a process of • Valuation of Fixed Asset
Spreading of cost of a Fixed Asset over its
•
working life

• Provision of fund for replacement of the Asset

• All of the above

404 Depreciation is provided on all • Depreciable Fixed Assets
• Current Assets
• Non Tangible Assets
• All types of Assets
405 The principal factor in measurement of depreciation is • total cost
/ are
• residual value
• useful life
• All of the above
406 Which of the following is not one of the objectives of providing • To calculate proper profit and loss
depreciation?
• To provide fund for replacement of the assets

• To show asset at its reasonable value

• To evade tax liability

407 Allocating the cost of a fixed asset over its useful life is called • Amortization
• Depreciation
• Obsolescence
• Disposal
408 The estimated value of depreciable assets after useful life is called • Actual Value
• Replacement Value
• Disposal Value
• Current Value
409 Depreciation Accounting is a process of • Asset Valuation
Allocation of market value of fixed asset over its
•
useful life

Allocation of depreciable cost of tangible fixed

•
assets over its useful life

Allocation of depreciable cost of wasting assets over

•
its useful life
410 On purchase of second hand car for Rs. 10,000, Rs. 1,000 is • Rs. 10,000
spent on its repair, Rs. 500 is incurred to get the car registered in
own name and Rs. 1,200 is given as dealer's commission. The • Rs. 10,500
amount debited to car account should be • Rs. 11,500

• Rs. 12,700
411 M.Raja manufacturing company purchased on 1-1- 2000 • Rs. 3,600
machinery for Rs. 9,000 and spent Rs. 1,000 on its installation.
Depreciation is to be provided every year at the rate of 20% per • Rs. 4,000
annum. Under SLM what will be the Book Value at the end of • Rs. 4,800
2002.
• Rs. 5,400
412 Land is not depreciable asset because • Its value always increases
• There is no maintenance cost of land
• Life of the land is unlimited
• Land cannot be depreciated
413 Which of the following is disadvantage of Written Down method of
The value of assets can never be completely
Depreciation? •
written off in the books of accounts

• It is difficult to apply
413 Which of the following is disadvantage of Written Down method of
Depreciation?

• It charges higher depreciation in the initial years

• It reduces profits in the initial years

414 ABC Ltd. Acquired a new Machine for Rs. 5,00,000 on 1st April • Rs. 5,10,000
2009 and spent Rs. 20,000 on its installation and Rs. 5,000 on
transportation. The firm charges depreciation @ 10% on WDV • Rs. 5,25,000
method. The Machine will be capitalized at • Rs. 5,00,000
• Rs. 5,05,000
415 Which of the following is/are not advantages of accounting? • Helps in taxation matters
• Valuation of business

• Accounting information is based on estimates

• All of the above

416 Which of the following is/are the limitations of accounting? Accounting information is expressed in terms of
•
money

• Accounting information is based on estimates

• Accounting information may be biased

• All of the above

417 Financial position of the business is ascertained on the basis of • Book Keeping
.
• Accounting reports
• Either (A) and (B)
• None of the above
418 is a system in which transactions are recorded on the • Accrual System of Accounting
basis of amounts having become due for payment or receipt.
• Cash System of Accounting
• Hybrid System of Accounting

• None of the above

419 attempt to record the financial effects of the transactions, • Accrual System of Accounting
events and circumstances of an enterprise in the period in which
they occur rather than recording them in period(s) in which cash is • Cash System of Accounting
received or paid by the enterprise. • Hybrid System of Accounting

• None of the above

420 Which of the following is / are the essential features of Accrual
Basis of Accounting? • Revenue is recognized when cash is received

Costs are matched against revenues on the basis of

•
relevant time period to determine periodic income

Costs which are not charged to income are carried

•
over and are kept under continuous review

• Both (B) and ( C )

421 Accounting is of primary importance to the . • Proprietors and the managers
• Creditors and workers
• Debtors and government
• Bankers and creditors
422 Financial Statements can be used by . • Owners
• Creditors
422 Financial Statements can be used by .

• Investors
• All of the above
423 Which of the following are internal users of accounting • Board of Directors
informations?
• Partners
• Managers
• All of the above
424 Which of the following is / are external users of the accounting • Shareholders/investors
informations?
• Creditors
• Government Agencies
• All of the above
425 Which of the following is / are the common accounting concepts? • Business Entity Concept
• Money Measurement Concept
• Going Concern Concept
• All of the above
426 According to , business is treated as an entity separate • Money Measurement Concept
from its owners, creditors, managers and others.
• Business Entity Concept
• Going Concern Concept
• Dual Aspect Concept
427 holds that accounting is a measurement and • Money Measurement
communication process of the activities of the firm that are
measurable in monetary terms. • Cost Concept
• Going Concern Concept

• Dual Aspect Concept

428 As per business transactions are recorded on the • Money Measurement

assumption that the business will continue for a long time.
• Cost Concept
• Dual Aspect Concept
• Going Concern Concept
429 concepts is based on double entry book keeping which • Money Measurement
means that accounting system is set up in such a way that a
record is made of the two aspects of each transactions that affects • Cost Concept
the records. • Going Concern Concept
• Dual Aspect Concept
430 All accounts are classified into . • Personal Accounts
• Real Accounts
• Nominal Accounts
• Any of the above
431 Accounts recording transactions with a person or group of persons • Personal Accounts
are known .
• Real Accounts
• Nominal Accounts
• Impersonal Accounts
432 The rule for nominal account is .
• Debit is the receiver, Credit is the giver

• Debit what comes in, Credit what goes out

432 The rule for nominal account is .

Debit all expenses and losses, Credit all incomes

•
and gains
• None of the above
433 The rule for personal account is .
• Debit is the receiver, Credit is the giver

• Debit what comes in, Credit what goes out

Debit all expenses and losses, Credit all incomes and

•
gains
• None of the above
434 The rule for real account is .
• Debit is the receiver, Credit is the giver

• Debit what comes in, Credit what goes out

Debit all expenses and losses, Credit all incomes and

•
gains
• None of the above
435 Purchase is . • Real Accounts
• Personal Accounts
• Nominal Accounts
• None of the above
436 Sales is . • Real Accounts
• Personal Accounts
• Nominal Accounts

• None of the above

437 Discount Allowed is . • Real Accounts

• Personal Accounts
• Nominal Accounts
• None of the above
438 Drawing account is • Real Accounts
• Personal Accounts
• Nominal Accounts
• None of the above
439 Prepaid Salary is . • Real Accounts
• Personal Accounts
• Nominal Accounts
• None of the above
440 Bad Debt recovered is . • Real Accounts
• Personal Accounts
• Nominal Accounts
• None of the above
441 Patents account is . • Real Accounts
• Personal Accounts
• Nominal Accounts
• None of the above
442 Bills Payable account is . • Real Accounts
442 Bills Payable account is .

• Personal Accounts
• Nominal Accounts
• None of the above
443 Proprietor's account is . • Real Accounts
• Personal Accounts
• Nominal Accounts
• None of the above
444 Rent account is . • Real Accounts
• Personal Accounts
• Nominal Accounts
• None of the above
445 Which of the following account is the odd one out? • Salary A/c
• Wages A/c
• Rent A/c
• Outstanding Salary A/c
446 Salary can be classified as . • Revenue
• Expense
• Asset

• Liability

447 Equipment can be classified as . • Revenue

• Expense
• Asset
• Liability
448 Accounts payable / Creditors can be classified as • Revenue
.
• Expense
• Asset
• Liability
449 Stock can be classified as . • Revenue
• Expense
• Asset
• Liability
450 Profit can be classified as . • Revenue
• Expense
• Asset
• Liability
451 Building can be classified as . • Revenue
• Expense
• Asset
• Liability
452 Accounts receivable / Debtors can be classified as • Revenue
.
• Expense
• Asset
• Liability
453 Capital can be classified as . • Revenue
• Expense
• Asset
• Liability
454 system recognizes the fact that every transaction has two • Single Entry System
aspects and records both aspects of each and every transaction.
• Double Entry System
• Double Account System
• Duplicate Account System
455 In Double Entry System of Book Keeping every Business
transaction affects: • Two account with equal but opposite effect

• Two sides of the same account

• The same account on two different dates

• All of the above

456 Which of the following is / are merit of Double Entry System?

• It keeps a complete record of business transactions

It provides a check on the arithmetical accuracy of

•
accounts

The detailed profit and loss account can be prepared

• to show profits earned or loss suffered during any
given period

• All of the above

457 Which of the following accounting equation is correct? • Assets + Capital = Liabilities
• Assets + Liabilities = Capital
• Assets + Liabilities + Capital = NIL
• None of the above
458 Which of the following equation is correct?
• Capital + Liabilities = Fixed Assets + Current Assets

Capital + Liabilities - Current Assets

•
= Fixed Assets
• Assets = Liabilities + Capital
• All of the above
459 Which of the financial statement represents the accounting • Manufacturing Account
equation?
• Cash Flow Statement
• Balance Sheet
• Profit and Loss Account
460 Difference between assets and outsiders liability is • creditors
.
• capital
• drawings
• bills payable
461 State the case where the going concern concept is applied? When an enterprise was set up for a particular
• purpose, which has been achieved, or to be achieved
shortly
461 State the case where the going concern concept is applied?

When a receiver or liquidator has been appointed in

•
case of as a company which is to be liquidated

Fixed Assets are acquired for use in the business

•
for earning revenues and are not meant for resale

• When an enterprise is declared sick

462 Capital - Rs. 1,00,000, Outsiders Liability - Rs. 2,50,000, Total • 3,50,000
Assets = ?
• 1,50,000
• 2,00,000
• 1,75,000
463 Fixed Assets - Rs. 5,50,000, Current Assets - Rs. 2,25,000, • 3,50,000
Current Liabilities - Rs. 1,50,000, Bank Loan
- Rs. 1,75,000. Capital = ? • 5,50,000
• 4,50,000

• 6,50,000

464 Accounting cycle or accounting process includes • Journalizing (Recording)

• Posting to ledger (Classifying)
• Final Account (Summarizing)
• All of the above
465 includes identifying, recording, classifying and • Accounting posting
summarizing the transactions.
• Accounting cycle
• Tally of accounts
• All of the above
466 In which order the accounting transactions and events are Journal, Subsidiary books, Ledger and Trial
recorded in the books? •
Balance

• Ledger, Journal, Ledger and Trial Balance.

Subsidiary books, Ledger and Trial Balance and

•
Journal.
Profit and loss account, Ledger, Balance sheet,
•
Journal.
467 Journal is the book of in which every transaction is • Primary entry
recorded before being posted into the ledger.
• Secondary entry
• Third entry
• None of the above
468 is a book in which all the business transactions are • Ledger
originally recorded in chronological order and from which they are
posted to the ledger accounts at any convenient time. • Journal
• Purchases returns books
• Sales Book
469 is the principal books of account where similar • Ledger
transactions relating to a particular person on property or revenue
or expense are recorded. • Journal
• Purchases returns books
• Sales Book
470 Process of recording transaction in journal is termed as • Balancing
• Posting
• Journalizing
470 Process of recording transaction in journal is termed as

• None of the above

471 Process of recording transaction is ledger is known as • Balancing
• Posting
• Journalizing
• None of the above
472 The process of equalizing the two sides of an account by putting • Balancing
the difference on the side where amount is short is known as
• Posting
• Journalizing

• None of the above

473 Cash sales are recorded in • Journal proper

• Sales Book
• Cash Book
• All of the above
474 When the goods are returned to the supplier, a • Credit note
is sent to him.
• Debit note
• Thank you note
• All of the above
475 Which of the following books is used to record purchase of • Cash book
machinery by cash?
• Purchases book
• Journal Proper
• Purchases returns book
476 is the book in which all transactions concerning cash • Journal Proper
receipts and cash payments are recorded.
• Cash book
• Sales Book
• Purchases Book
477 Cash Book is in the form of • Journal
• An account
• Statement
• All of the above
478 Balance of cash column in cash book has • Dr. balance
• Cr. Balance
• Dr. or Cr. Balance
• None of the above
479 Which of the following is / are features of cash book ?
It performs the functions of both journal and
•
ledger at the same time

Cash receipts are recorded in the credit side and

•
cash payments are recorded in the debit side.

It records two aspects of transaction

•
i.e. cash and credit
• All of the above
480 Which of the following is the kind of a cash book? • Single Column Cash Book
480 Which of the following is the kind of a cash book?

• Double -column cash book

• Three-column cash book
• All of the above
481 Which of the following is not a column of three-column cash book • Discount column
?
• Petty cash column
• Bank column

• Cash column

482 Rent due for the month of March will appear

• On the payment side of the cash book

• On the receipt side of the cash book

• Nowhere in the cash book
• As a contra entry
483 The cash book records • All cash payments
• All cash receipts
• All cash receipts and payments
• Cash and credit sale of goods
484 Cash account is • Personal account
• Real account
• Nominal account
• Valuation account
485 Total of debit side discount column of cash book is posted to • Cr. of Discount Received A/c
• Dr. of Discount Received A/c
• Cr. of Discount Allowed A/c
• Dr. of Discount Allowed A/c
486 The debit balance of cash account shows • Amount receivable
• Amount payable
• Cash in hand
• Liability
487 Contra entry appears in • Purchases Returns Book
• Cash Book
• Journal proper
• All of the above
488 If a transaction involves both cash and bank account, it is entered • Journal entry
on both sides of the cash book, one in the cash column and
second in the bank column, though on opposite sides. This is • Adjustment entry
called • Contra entry
• Combined entry
489 A is a schedule or list of balances of both debit or credit • Profit and Loss Accounts
extracted from various accounts.
• Balance Sheet
• Cash Flow Statement
• Trial balance
490 It is a check on the accuracy of posting. If the trial balance agrees
it proves that: • The books are arithmetically accurate,
 Both the aspects of the transactions have been
• correctly recorded in the books of original entry as
well as in the ledger.

• Both (a) and (b)

• None of the above

491 At the end of the accounting period or at the end of each month, • Profit and Loss Accounts
the balances of the ledger accounts are extracted and
is prepared to test as to whether the total debits are • Balance Sheet
equal to total credits. • Cash Flow Statement
• Trial balance
492 The balances of all assets accounts, expenses accounts, losses, • Credit column
drawings are placed in the
of the trial balance. • Debit column
• Ledger folio
• None of the above
493 The balances of all liabilities accounts, income accounts, profits, • Credit column
capital are placed in the of the trial balance.
• Debit column
• Ledger folio
• None of the above
494 A trial balance will not balance if • Correct journal entry is posted twice.

The purchase on credit basis is debited to purchased

•
and credited to cash.

Rs. 500 cash payment to creditors is debited to

• creditors for Rs. 50 and credited to cash as Rs.
500

• None of the above

495 After the preparation of ledgers, the next step is the preparation of • Trading accounts
• Trial balance
• Profit and loss account
• None of the above
496 Bank overdraft is shown on the side of trial balance • Credit
• Debit
• None
• Both
497 Is that expenditure which results in acquisition of an • Capital expenditure
asset or which results in an increase in the earning capacity of a
business. • Revenue expenditure
• Deferred revenue expenditure
• None of the above
498 Expenses whose benefit expires within the year of expenditure and • Capital expenditure
which are incurred to maintain the earning capacity of existing
assets are termed as • Revenue expenditure
• Deferred revenue expenditure
• None of the above
499 There are certain expenses which may be in the nature of revenue
but their benefit may not be consumed in the year in which such • Capital expenditure
expenditures has been incurred; rather the benefit may extend
over a number of years are termed as
• Revenue expenditure
• Deferred revenue expenditure

• None of the above

500 The benefit of capital expenditure lasts for a of time. • Short period
• Long period
• Very short period
• 5 years
501 Which of the following is / are example of capital expenditure ? Purchases of land and building by the property
•
dealer

• Purchases of machinery by machinery dealer

• Expenses incurred for getting patents

• All of the above

502 Amounts paid for wages, salary, carriage of goods, repairs, rent • Capital expenditure
and interest, etc., are items of .
• Revenue expenditure
• Deferred revenue expenditure
• None of the above
503 Costs incurred to acquire an asset are but costs
incurred to keep them in working condition or to defend their • Capital expenditure, Revenue expenditure
ownership are
• Revenue expenditure, Revenue expenditure

• Deferred Revenue expenditure, Revenue expenditure

• Revenue expenditure, Capital expenditure

504 Which of the following is / are not example of capital expenditure

Money spent to reduce working expenses like
• conversion of hand- driven machinery to power-driven
machinery

Money paid for goodwill (like the right to use the

•
established name of an outgoing firm)

Expenditure which does not result in an increase

•
in capacity or in reduction of day-to-day expenses

• All of the above

505 Depreciation on fixed assets is • Capital expenditure
• Revenue expenditure
• Deferred revenue expenditure
• None of the above
506 All sums spent up to the point an asset is ready for use should • Capital expenditure
also be treated as
• Revenue expenditure
• Deferred revenue expenditure
• None of the above
507 Fees paid to lawyer for drawing a purchase deed of land is • Capital expenditure
• Revenue expenditure
• Deferred revenue expenditure

• None of the above

508 Interest on loans taken to acquire fixed assets only for the period • Capital expenditure
before the asset becomes operational is
. • Revenue expenditure
• Deferred revenue expenditure
• None of the above
509 Fee paid to a lawyer for checking whether all the papers are in
order before land is purchased is • Capital expenditure, Revenue expenditure
. But if later a suit is filed against the purchaser, the
legal costs will be • Revenue expenditure, Revenue expenditure

• Deferred Revenue expenditure, Revenue expenditure

• Revenue expenditure, Capital expenditure

510 Which of the following is / are deferred revenue expenditure?

• Research and Development expenses

Heavy advertisement expenditure incurred in

•
introducing a new line or product

• Preliminary expenses
• All of the above
511 Expenditure incurred for reconditioning to restore the operating • Capital expenditure
efficiency of the used property acquired for the business are
• Revenue expenditure
• Deferred revenue expenditure
• None of the above
512 Expenses incurred to maintain the business, cost of stores • Capital expenditure
consumed in the course of manufacturing e.g. oil, cotton-waste are
• Revenue expenditure
• Deferred revenue expenditure
• None of the above
513 Expenses incurred in normal course of business and whose
benefit expires within the year is known as • Capital expenditure, Revenue expenditure
While is that expenditure which results in
acquisition of an asset or which results in an increasing in earning • Revenue expenditure. Revenue expenditure
capacity of business.
• Deferred Revenue expenditure, Revenue expenditure

• Revenue expenditure, Capital expenditure

514 The main purpose of the incurring capital expenditure is to Maintain earning capacity, improve the earning
of the business. The main purpose of incurring revenue •
capacity
expenditures is to of the business. improve the earning capacity, maintain the
•
earning capacity
Maintain the earning capacity, maintain the earning
•
capacity
Improve the earning capacity, improve the earning
•
capacity
515 Capital expenditure normally appears on • Asset side in balance sheet
• Liability side in balance sheet
• Dr. side to profit and loss account
515 Capital expenditure normally appears on

• Cr. side to profit and loss account

516 Revenue expenditure are balanced and is transferred to • Liability side in balance sheet
• Cr. side to profit and loss account

• Dr. side to Profit and loss account

• Asset side in balance sheet

517 Deferred revenue expenditure appears in balance sheet at assets • Miscellaneous Expenditure
side under the heading
• Fixed assets
• Current assets
• Loans and advances
518 Which of the following is / are recurring in nature ? • Capital expenditure
• Revenue expenditure
• Capital receipts
• All of the above
519 The main feature of capital expenditure is that it results in a benefit • 1 or 2 years
will accrue to the business enterprise for a long time, say
• 2 or 3 years
• 10 or 15 years
• 11 or 15 months
520 Deferred revenue expenditure also results in a benefit which will • 3 or 5 months
accrue in future period but generally for
• 3 or 5 years
• 1 year
• 10 or 11 months
521 Which of the following are of capital nature ? • Purchase of a goods
• Cost of repair

• Wages paid for installation of machinery

• Rent of a factory
522 Amount received from sale of capital asset or contribution made • Deferred revenue receipts
by proprietor towards the capital of the business are known as
• Revenue receipts
• Capital receipts
• None of the above
523 Which of the following is / are not capital receipt ? • Receipts from sales
• Fees received for services
• Interest on investment
• All of the above
524 Which of the following is /are not revenue receipt ?
• Contributions into the business by the proprietor

• Loans taken from banks

• Amount received on issue of share capital

• All of the above

525 and . have no bearing on the profit or loss for
the accounting period. • Capital receipts, Capital expenditure

• Capital expenditure, Capital receipts

• Capital receipts, Regular receipts
• None of the above
526 Amount realized by the sale of fixed assets or by issue of shares • Revenue receipts, Capital receipt
or debentures is a while amount realized by sale of
goods or rendering services is always • Capital receipt, Revenue receipts

• Capital receipt, Capital receipt

• Revenue receipts, Revenue receipts
527 Payment into the business by proprietor is receipt. • Revenue receipts
• Capital receipt
• Deferred revenue receipt
• None of the above
528 Which of the following expenditures is / are capital expenditure • Cost of making a cinema hall

Freight and cartage amounting to Rs. 4,000 were

• paid on purchase of a new plant and a sum of Rs.
2,000 was spent as erection charges of that plant

Spent Rs. 2,00,000 for overhauling the machinery

• which improved the capacity utilization and saved
running expenditure by Rs. 15,000 p.a.

• All of the above

529 Which of the following expenditures is deferred revenue
expenditure ? 30,000 were spent on heavy advertising in
• connection with the introduction of a new
product.

Rs. 2,000 were paid as municipal tax in connection

•
with a building which was purchased last year.

A temporary room constructed for Rs. 25,000 for

• storing raw material for the construction of a big
building.
• All of the above
530 Which of the following expenditures is / are not revenue
M/s XYZ property dealers, purchased 10 flats @ Rs.
expenditures ? •
7,00,000 each.

Rs. 20,000 spent for the trial run of newly installed

•
machinery.
Damages paid on account of breach of contract to
•
supply certain goods.

• All of the above

531 Which of the following expenditures is / are revenue expenditures?

A firm incurred Rs. 10,000 to retain the title of a land
•
purchased for business in litigation with third party.
531 Which of the following expenditures is / are revenue expenditures?

Freight and cartage amounting to Rs. 4,000 were

•
paid on purchase of raw material.

Damages paid on account of breach of contract to

•
supply certain goods.
• All of the above
532 Which of the following expenditures is / are capital expenditures ?
Custom duty of Rs. 1,000 paid on importing
•
machinery costing Rs. 10,00,000.

Amount spent to overhaul a motor truck purchased

•
second - hand.

• Wages paid to workers for setting up new machinery.

• All of the above

533 Which of the following is /are deferred revenue expenditures ? Heavy expenditure incurred on advertising a new
•
product.
Preliminary expenses incurred in setting up a joint
•
stock company.
• Both (a) and (b)
• Neither (a) nor (b)
534 A bank is an institution which deals in • Goods
• Money
• Issue of currency
• None of the above
535 Which of the following type of account can be opened with bank ? • Current Account
• Savings Account
• Fixed Deposit Account
• Any of the above
536 When businessman pays money to bank it is known as • Withdrawal
• Deposit
• Expenses
• Liability
537 When businessman takes money from bank out of its account it is • Withdrawal
known as
• Deposit
• Expenses
• Liability
538 is a copy of the clients' account in the bank's ledger. • Cash book
• Pass book
• Cheque book

• Pay - in - slip book

539 Entry on the credit side of pass book implies • Withdrawal

• Deposit
• Expenses

• Liability
540 Entry on the debit side of pass book implies • Withdrawal
• Deposit
• Expenses
• Liability
541 The businessman prepares the and the • Pass book, Cash book
is prepared by the bank.
• Cash book, pass book
• Cash book, Cash book
• Pass book,pass book
542 Favourable balance as per cash book means which of the • Cr. balance in cash book
following ?
• Dr.balance in cash book
• Bank overdraft
• Dr. balance in pass book
543 Unfavourable balance as per cash book means which of the • Cr. balance in pass book
following ?
• Dr. balance in cash book
• Bank overdraft
• None of the above
544 Favourable balance as per pass book means which of the • Cr. balance in pass book
following ?
• Dr. balance in pass book
• Bank overdraft
• None of the above
545 Unfavourable balance as per pass book means which of the • Dr. balance in cash book
following ?
• Cr. balance in pass book
• Bank overdraft
• None of the above
546 is a statement which is prepared as on a particular date • A bank statement
to reconcile the bank balance as per cash book with balance as
per pass book by showing all causes of difference between the • A bank reconciliation statement
two. • Income statement
• Position statement
547 A bank reconciliation statement is a statement prepared to
Cash balance as per cash book and bank balance as
reconcile •
per as per pass book

Bank balance as per as per cash book and bank

•
balance as per pass book

• Both (a) and (b)

• None of the above

548 A bank reconciliation statement is prepared by • Creditors

• Debtors
• Bank
• Businessman
549 A bank reconciliation statement can be prepared by • Partnership firm
• Sole proprietary concern
• Companies
549 A bank reconciliation statement can be prepared by

• All of the above

550 Which of the following is / are cause of difference of balance Cheques issued presented for payment and paid by
between cash book and the pass book ? •
bank

• Cheques deposited for collection and collected

• Bank charges not entered in the cash book

• All of the above

551 Which of the following is /are significance of BRS?
It highlights the causes of difference between the
• bank balance as per cash book and the balance as
per pass book.

It helps in finding out actual position of the bank

•
balance.
It reduces the chance of fraud by the staff dealing in
•
cash.
• All of the above
552 A bank statement is a copy of
• A customer's account in the bank's book

• Bank column of the cash book

• Cash column of the cash book
• None of the above
553 Which of the following is not the salient feature of bank
reconciliation statement ? • Reconciliation is done by the bankers

Reconciliation statement will help in finding the

•
person doing any fraud

Any undue delay in the clearance of cheques will be

•
shown up by the reconciliation

• None of the above

554 When balance as per cash book is the starting point, un-collected • Subtracted
cheques are
• Not required to be adjusted.
• Added
• None of the above
555 When balance as per cash book is the starting point, cheques • Subtracted
issued but not presented for payment are
• Not required to be adjusted.
• Added

• None of the above

556 When balance as per cash book is the starting point, cheques • Subtracted
deposited but dishonoured are
• Not required to be adjusted.
• Added
• None of the above
557 When balance as per cash book is the starting point, bank charges • Subtracted
not recorded in cash book are
• Not required to be adjusted.
• Added
• None of the above
558 When debit balance as per cash book is the starting point, direct • Added
deposits by customers are
• Subtracted
558 When debit balance as per cash book is the starting point, direct
deposits by customers are

• Not required to be adjusted.

• None of these
559 When credit balance as per pass book is the starting point, • Subtracted
interest allowed by bank is
• Not required to be adjusted.
• Added
• None of these
560 When drawing up a bank reconciliation statement, if you start with • Subtracted
a debit balance as per the pass book, the un - presented cheques
should be • Not required to be adjusted.
• Added
• None of these
561 Which of the following will require adjustment of the cash book • Cheque deposited but not cleared
balance?
Cheque issued but not presented for presented for
•
payments
Under casting of debit side of bank column of
•
cash book
• All of the above
562 Which of the following will not require adjustment of the cash book • Error in pass book
balance ?
• Cheque issued but not presented for payments

• Cheque deposited but not cleared

• All of the above
563 Depreciation is a measure of the wearing out, consumption or • Use
other loss of value of a depreciable asset arising from
• Effluxion of time

Obsolescence through technology and market

•
changes
• Any of the above
564 Depreciation is generally provided on • Current assets
• Fixed assets
• Loans and Advances

• Fixed liabilities

565 On which of these asset depreciation cannot be provided? • Building

• Land
• Mines
• Loose tools
566 Depreciation is the fall in the of a fixed asset through • Quality
physical wear and tear due to use or passage of time or from any
other cause. • Value
• Either (a) and (b)
• None of the above
567 Which of the following is / are the important characteristic of
Depreciation is permanent, continuous and gradual
depreciation ? •
increase in the value of a fixed asset

• Depreciation is appropriation of profit

567 Which of the following is / are the important characteristic of
depreciation ?

Depreciation is always computed in a systematic

•
and rational manner

• All of the above

568 Which of the following is / are not the important characteristic of
Total depreciation can exceed its depreciable
depreciation ? •
value or original cost

Depreciation is calculated in respect of fixed assets

•
only
Depreciation is always computed in a systematic and
•
rational manner
• All of the above
569 Which of the following is / are cause for providing depreciation ?
• Physical wear and tear resulting from use

Physical deterioration resulting from atmospheric

•
exposure
• Passage of time
• All of the above
570 Which of the following factor affect measurement of depreciation ? • Original cost
• Estimated useful life
• Scrap or the residual value
• All of the above
571 Which of the following is correct formula for charging depreciation Depreciation = Scrap Value - Original Cost / Life of
under fixed instalment method ? •
the asset
Depreciation = Life of the asset - Scrap Value /
•
Original cost
Depreciation = Original cost - Scrap Value / Life of
•
the asset

Depreciation = Scrap Value - Life of the asset /

•
Original cost

572 Which of the following is / are advantage of fixed installment

method of charging depreciation ? • This method is acceptable to income tax authorities.

The value of the asset can be completely written

•
off, i.e. the value can be reduced to zero.

The efficiency and usefulness is more in early years

• so depreciation amount is also more in early years
and goes on diminishing year to year.

• All of the above

573 Under method depreciation is provided as a fixed • Fixed instalment method
percentage of the written down value of the asset.
• Annuity method
• Reducing balance method
• All of the above
574 The portion of the acquisition cost of the asset , yet to be allocated • Salvage value
is known as
• Accumulated value
574 The portion of the acquisition cost of the asset , yet to be allocated
is known as

• Realizable value
• Written down value
575 Which of the following is odd one with reference to depreciation? • Land
• Machinery
• Furniture
• None of the above
576 Z Ltd. acquired machinery on 1st January, 2011 at a cost of Rs. • 6,000, 6,000
72,000 and spent Rs. 8,000 for its installation. The firm writes off
depreciation @ 10% • 8,000, 8,000
p.a. on the original cost every year. The books are closed on 31st • 8,000, 7,200
December every year. Depreciation for 1st year and 2nd year as
per fixed instalment method
will be Rs. • 6,000, 8,000

577 Z Ltd. acquired machinery on 1st January, 2011 at a cost of Rs. • 72,000, 64,000
72,000 and spent Rs. 8,000 for its installation. The firm writes off
depreciation @ 10% • 74,000, 66,600
p.a. on the original cost every year. The books are closed on 31st • 74,000, 72,000
December every year. Closing balance of machinery account for
1st and 2nd year as per
fixed instalment method will be Rs. • 74,000, 66,000

578 N Ltd. purchase machinery for Rs. 10,00,000 on 1.1.2012. • 1,80,000

Installation expenses were Rs. 50,000. Life of the asset is 6 years
at the end of which asset can be sold at Rs. 30,000. Annual • 1,66,667
depreciation under
straight line method will be = ? • 1,70,000

• 1,71,667
579 Machinery costing Rs. 20,00,000 was purchased on 1.4.2012. The • 1,50,000
installation charges amounting Rs.
5,00,000 were incurred. The depreciation at 10% p.a. on straight • 2,50,000
line method for the year ended 31st March, 2013 will be • 2,00,000
.
• 50,000
580 A Ltd. acquired a machine on 1st January, 2010 at a cost of Rs. • Profit - Rs. 1,500
14,000 and spent Rs. 1,000 on its installation. The firm writes off
depreciation at 10% • Loss - Rs. 1,500
p.a. of the original cost every year. The books are closed on 31st • Profit - Rs. 800
December every yea. After 3 years machine sold for Rs. 9,000.
Profit / Loss on sale = ?
• Loss - Rs. 800

581 B Ltd. acquired a machine on 1st January, 2010 at a cost of Rs. • Profit - Rs. 2,500
14,000 and spent Rs. 1,000 on its installation. The firm writes off
depreciation at 10% • Loss - Rs. 2,500
p.a. of the original cost every year. The books are closed on 31st • Profit - Rs. 2,200
December every year. After 3 years machine sold for Rs. 13,000.
Profit / Loss on sale = ?
• Loss - Rs. 2,200

582 C Ltd. acquired a machine on 1st January, 2010 at a cost of Rs. • Profit - Rs. 2,275
14,000 and spent Rs. 1,000 on its installation. The firm writes off
depreciation at 10% • Loss - Rs. 2,275
p.m. of the original cost every year. The books are closed on 31st • Profit - Rs. 1,875
December every year. On 31st May, 2013 machine sold for Rs.
8,000. Profit / Loss on sale
=?
• Loss - Rs. 1,875
583 HI-Fi Ltd. acquired machinery on 1st January, 2012 at a cost of • 3,600, 3,240
Rs. 36,000 and spent Rs. 4,000 for its installation. The firm writes
off depreciation at 10% • 4,000, 3,600
p.a. on WDV basic. The books are closed on 31st December. • 3,600, 4,000
Depreciation for 1st and 2nd year will be Rs. and Rs.

• 3,240, 2,916

584 HI-Fi Ltd. acquired machinery on 1st January, 2012 at a cost of • 32,400, 29,160
Rs. 36,000 and spent Rs. 4,000 for its installation. The firm writes
off depreciation at 10% • 36,000, 36,000
p.a. on WDV basic. The books are closed on 31st December. • 32,400, 36,000
Closing balance of machinery account for 1st and 2nd year will
be Rs. and Rs.
• 36,000, 32,400

585 A firm acquired machinery on 1st July, 2012 at a cost of Rs. • 3,750 and 5,000
45,000 and spent Rs. 5,000 for its installation. The firm writes off
depreciation at 10% per annum on diminishing balance method. • 4,625 and 3,750
The books are closed on 31st March year. Depreciation for the • 3,750 and 4,625
year ended 31st March, 2012 and 31st March, 2013 will be Rs.
and Rs.
• 5,000 and 3,750

586 Y Ltd. purchased a machine on 1.1.2012 for Rs. 12,000. • 1,664

Installation expenses were Rs. 1,000. Residual value after 5 years
Rs. 500. Depreciation is provided under WDV. Depreciation rate is • 1,536
20%. • 1,600
Depreciation for 3rd year = ?
• None of the above
587 N Ltd. purchased machine for Rs. 1,00,000 on 1.1.2012. • 9,212
Installation expenses were Rs. 10,000. Life of the asset is 5 years
at the end of which asset can be sold at Rs. 5,000. Depreciation • 9,673
rate is 15% on WDV. Depreciation for 4th year = Rs. ?. • 10,594
.
• 10,133
588 V Ltd. acquired a machine on 1st July, 2010 at a cost of Rs. • Profit - Rs. 2,958
15,000. The firm writes off depreciation at 10%
p.a. on WDV. The books are closed on 31st March every year. On • Loss - Rs. 2,958
30th June, 2013 machine sold for Rs.
8,000. Profit / Loss on sale = ?
• Profit - Rs. 3,375

• Loss - Rs. 3,375

589 Final accounts include preparation of • Trading A/c
• Profit and Loss A/c
• Balance Sheet
• All of the above
590 is the part of income statement, which is prepared to • Manufacturing A/c
ascertain the gross profit / loss for a given accounting period.
• Profit and Loss A/c
• Balance Sheet

• Trading A/c

591 In trading account, closing stock is shown at • Cost Price

• Net realizable price
• (a) or (b) whichever is lower
• (a) or (b) whichever is higher
592 ???. Is the difference between the selling price and the cost price
of the goods sold. • Gross profit

• Gross loss
• (a) or (b)
• (a) and (b)
593 Gross profit or gross loss revealed by trading account is • Balance Sheet
transferred to
• Profit and Loss Account
• Manufacturing Account

• Profit and Loss Appropriation Account

594 The measures net profit / loss by matching revenues • Trading A/c
and expenses according to the accounting principles.
• Manufacturing Account
• Profit and Loss A/c
• None of the above
595 The net profit or loss is transferred to • Drawing Account
• Capital Account
• Suspense Account
• None of the above
596 Generally appears in trading account and • Direct cost, Indirect cost
Appears in Profit and Loss Account.
• Indirect cost, Direct cost
• Indirect cost, Fixed cost
• Fixed cost, Direct cost
597 Carriage outwards appears in , whereas carriage • Trading A/c, Profit and Loss A/c
inwards appears in
• Profit and Loss A/c, Trading A/c
• Trading A/c, Balance Sheet
• Balance Sheet, Profit and Loss A/c
598 The is defined as ' a Statement which sets out the • Cash Flow Statement
assets and liabilities of a business and which serves to ascertain
the financial position of the same on any particular date.' • Trading A/c
• Profit and Loss A/c
• Balance Sheet
599 The total of the two sides of the balance sheet must agree • Assets = Liabilities - Capital.
because of the following equation.
• Assets = Liabilities + Capital.

• Assets = Fixed Assets + Current Assets

• All of the above

600 Which of the following is an objective of preparation of balance • To show financial position of a firm.
sheet?
To show the nature and value of assets, the nature
•
and value of liabilities and the position of capital.

• (a) or (b)
• (a) and (b)
601 are valueless assets but shown in the balance sheet on • Fictitious Assets
asset side e.g. preliminary expenses.
• Intangible Assets
• Fixed Assets
• Current or Floating Assets
602 are those that are meant to be converted into cash in • Fictitious Assets
short term.
• Intangible Assets
• Fixed Assets
• Current or Floating Assets
603 are those fixed assets which cannot be seen or touched • Intangible Assets
or felt.
• Fictitious Assets
• Wasting Assets
• Floating Assets
604 Goodwill is • Floating Assets
• Fictitious Assets
• Wasting Assets
• Intangible Assets
605 is a statement of debit and credit balances, while • Profit and loss, Balance sheet
is a statement of assets and liabilities.
• Trial balance, Balance sheet
• Balance sheet, Trading account
• Trial balance, Profit and loss
606 Which of the following statement contains all the types of account • Balance Sheet
i.e. personal, real and nominal account ?
• Trial Balance
• Income statement
• None of above
607 Which of the following statement generally contains personal and • Fund flow
real but does not contain nominal accounts?
• Balance sheet
• Trial Balance
• Cash flow
608 In which of the following closing stock does not appear? • Trading Account
• Trial balance
• Balance sheet

• All of the above

609 In which of the following opening stock does not appear? • Trading Account
• Trial balance
• Balance sheet
• (b) and (c)
610 An amount which is allowed for the prompt settlement of debt • Trade discount
arising out of a sale within a specified time and calculated on a
percentage basic is known as • Special discount
• Cash discount
• None of the above
611 is a deduction from the list or a catalogue price allowed • Trade discount
by the wholesalers to the retailers for various reasons.
• Special discount
• Cash discount
• None of the above
612 From the following figures ascertain the gross profit: Opening • 3,60,0000
stock Rs. 2,50,000, Goods purchased Rs. 13,00,000 Freight Rs.
50,000, Closing stock Rs. • 4,50,000
1,50,000, Sales Rs. 19,00,000, Salary Rs. 90,000. • 5,00,000
• 5,90,000
613 From the following figures ascertain the gross profit: Opening • 7,50,000
stock Rs. 3,00,000, Goods purchased Rs. 12,87,000 Carriage on
purchase Rs. 34,500, Carriage on sales Rs. 45,000, Rent Rs. • 7,14,000
75,000, Closing stock Rs. 2,70,000, Sales Rs. 21,10,500. • 6,39,000

• 7,59,000
614 Opening stock - Rs. 40,000, Purchases - Rs. 2,60,000, Closing • Rs. 3,20,000
stock - Rs. 20,000, Cost of goods sold = ?
• Rs. 2,60,000
• Rs. 3,00,000
• Rs. 2,80,000
615 From the following information calculate net profit: Opening stock • 2,50,000
Rs. 15,00,000, Direct expenses 3,00,000, Selling and distribution
expenses Rs. 2,00,000, Administrative expenses 1,00,000, • 3,50,000
Financial expenses 50,000, Sales 24,00,000, Gross Profit ratio on • 2,00,000
sales 25%.
• 1,50,000

616 Cost of goods sold - Rs. 2,00,000, Gross profit on cost • Rs. 22,000
- 25%, Salary - Rs. 15,000, Rent - Rs. 7,000, Bad debt
- Rs. 1,500, Drawings - Rs. 2,000, Creditors - Rs. 2,500, Net Profit • Rs. 24,500
=?
• Rs. 26,500

• Rs. 16,500
617 Salary paid during the year - Rs. 35,000. Salary outstanding on • Rs. 40,000
1.4.2011 - Rs. 2,500, Salary outstanding on 31.3.2012 - Rs. 7,500.
Net salary debited to profit and loss account for the year ended • Rs. 30,000
31.3.2012 should be • Rs. 25,000
• Rs. 45,000
618 Rent paid during the year - Rs. 1,00,000. Prepaid rent on 1.4.2011 • Rs. 87,500
- Rs. 25,000, Prepaid rent on 31.3.2012 - Rs. 37,500. Net salary
debited to profit and loss account for the year ended 31.3.2012 • Rs. 1,12,500
should be • Rs. 1,62,500
.

• Rs. 37,500

619 Following information is available from the books of Mr. Z. • Rs. 1,96,000
Expenses paid during the year Rs. 1,35,000, Expenses
outstanding on 1.4.2011 Rs. 12,250, Expenses prepaid on • Rs. 1,37,500
1.4.2011 Rs. 15,000, Expenses outstanding on 31.3.2012 Rs. • Rs. 1,32,000
17,000, Expenses prepaid on 31.3.2012 Rs. 16,750. Net expenses
debited to profit and loss account for the year ended • Rs. 1,38,000
31.3.2012 should be
620 Revenue is generally recognized as being earned at the point of
time • sale is made and ownership of goods transferred

• cash is received
• production is completed
620 Revenue is generally recognized as being earned at the point of
time

sales are effected or cash is received, whichever is

•
earlier.
621 The system of recording transactions based on dual aspect is • dual account system
called
• double entry system
• cash accounting
• single entry system
622 According to which of the following accounting concept even the • money measurement concept
proprietor of business treated as a creditor of the business to the
extent of • dual entry concept
his capital • going concern concept

• separate entity concept.

623 According to going concern concept, a business is viewed as • a limited life

having
• going to be liquidated after 100 years
• an indefinite life

• none of the above.

624 Recording of capital contributed by the owner as liability ensures • double entry
adherence to the principle of
• going concern
• separate entity
• materiality
625 Only the events that affect the business must be recorded, as per • separate entity
the
principle of • accrual
• materiality
• none of the above
626 Accounting does not record non-financial transactions because of • entity
the
concept of • cost
• accrual
• measurement
627 If the total assets of the firm are Rs. 1,00,000, outside liabilities • Rs. 1,00,000
are Rs.
40,000, the capital contributed by the owner is • Rs. 40,000
• Rs. 20,000

• Rs. 60,000

628 Creditors account is a • Personal account

• Real account
• Nominal account
• None of the above
629 Which of the following is a nominal account? • Drawings account
• Outstanding interest account
• Salary account
• Machinery account
630 Sale of goods to Rani for cash shall be debited to • Rani account
• Cash account
• Sales account
630 Sale of goods to Rani for cash shall be debited to

• None of these
631 Cash account normally has • Debit balance or credit balance
• Credit balance
• Debit balance
• None of these
632 Cash book is • Principal book
• Subsidiary book
• Both (a) and (b),
• None of these
633 Contra entries are related to • Cash
• Bank
• Both cash and bank
• None of these
634 Trial balance is • Account
• A statement
• Both (a) and (b),
• None of these
635 Trial balance is prepared from • Journal
• Ledger
• Cash book
• None of these
636 The credit balance of bank account indicates • Balance in bank
• Amount payable by the bank
• Amount payable to the bank
• None of these
637 The debit balance in a nominal account shows • Gains
• Expenses
• Assets

• None of these

638 The amount brought in by the proprietor in the business shall be • Cash account
credited to
• Capital account
• Drawings account
• None of these
639 The return of goods by a customer should be debited to • Customer account
• Return inward account
• Returns outward account
• Goods account
640 The amount of salary paid to Madhu should be debited to • Madhu
• Cash account
• Salary account
• None of these
641 The rent paid to the landlord should be credited to • Rent account
641 The rent paid to the landlord should be credited to

• Landlord account
• Cash account
• None of these
642 The cash discount allowed to a debtor should be credited to • Debtor account

• Discount account

• Cash account
• None of these
643 Payment of LIC premium of the proprietor is debited to • Capital account
• Drawings account
• LIC premium account
• None of these
644 Classification of accounts is made in • Journal
• Ledger
• Subsidiary book
• Balance Sheet
645 • Trial balance
• trading account
is prepared to find the financial position of business • P/L account
• Balance Sheet
646 An expenditure is a capital expenditure because • The amount is large

• It is intended to benefit the current period

• it is intended to benefit the future period

• All of these

647 An expenditure is a revenue expenditure because • The amount is small

• It is intended to benefit the current period

• It is deducted from the gross sale proceeds

• None of these
648 A receipt is a capital receipt because • The amount is heavy
• It is credited to capital account
• It relates to fixed assets
It is received not in the regular course of
•
business
649 Rs. 5,000 spent on replacement of worn-out part of the machine • capital expenditure
will
be charged as • Revenue expenditure
• Deferred revenue expenditure
• None of these
650 Amount incurred on electric installations of a new building is • revenue expenditure
• Capital expenditure,
650 Amount incurred on electric installations of a new building is

• Deferred revenue expenditure,

• capital loss
651 The balance sheet gives information regarding
• Financial position during a particular period,

• Results of operation for a particular period,

• The operating efficiency of the firm,

• Financial position on a particular date.

652 Income received in advance is • an income,

• a liability
• an asset,
• a loss.
653 Goods given as samples should be credited to • advertisement account,
• sales account
• purchase account,

• none of the above.

654 Capital is shown under liabilities because of the • entity concept,

• accrual concept,
• dual aspect concept,
• going concern concept.
655 Which of the following is not a fixed asset • motor vehicles,
• furniture,
• inventory,

• freehold property

656 Which of the following is a current liability • five year bank loan
• workmen compensation fund,
• bank overdraft,
• dividend equalization reserve.
657 Added in opening balance of capital is • net profit,
• drawings,
• net loss,
• operating expenses
658 Which of the following is a fictitious asset • goodwill,
• copyright,
• patents,
• discount on issue of securities
659 Which transaction results in increase in assets and increase in • goodwill written off
liabilities
• issue of bonus shares in the ratio 2:1,

• credit purchase of machine,

• none of these.
660 Returns outward appearing in trial balance is to be deducted from • sales,
• purchases,
660 Returns outward appearing in trial balance is to be deducted from

• returns outward,
• closing stock.
661 Returns inward appearing in trial balance is to be deducted from • purchases,
• sales,
• returns outward,
• closing stock.
662 Carriage outward is shown on the • debit side of trading account,

• debit side of profit and loss account,

• credit side of profit and loss account,

• liability side of the balance sheet.

663 Contingent liability is shown

• on the liability side of the balance sheet

• on the asset side of the balance sheet

• in the profit and loss account

• below the balance sheet as a foot note.

664 In double entry system every business transaction affects

• debit and credit side of the same account

• two accounts
• the same side of the same account

• none of the these.

665 In accounting debit means

• an entry on the left hand side of an account

• decrease in asset
• increase in liability
• none of these.
666 In accounting credit means
• an entry on the right hand side of an account

• increase in asset
• decrease in liability
• none of these.
667 Double entry system refers to • entry in two sets of books

• entry for two aspects of the transaction

• entry at two dates

• none these.
668 A business transaction affects • at least one account
• at least two account
• maximum of two accounts
• maximum of three accounts.
669 In accounting, transactions and events which are of are • Financial nature
recorded.
• Quantitative nature
• Qualitative nature
• None of these
670 The person to whom goods are sold on credit is known as • creditor
.
• debtor
• borrower
• none of these
671 The person from who goods are bought on credit is known as • creditor
.
• debtor
• borrower
• none of these
672 The objective of financial accounting is to ascertain • profit
for a particular period.
• loss
• profit or loss
• transactions
673 Accounting is a language of • business
• commerce
• economics

• none of these

674 Outstanding expenditure is a account. • nominal

• personal

• real
• liability
675 states that assets equal liabilities plus capital. • accounting equation
• financial equation
• statements
• none of these
676 Journal is a book of entry. • original
• secondary
• subsidiary
• none of these
677 is a process of entering in the ledger the • recording
information
given in the journal. • journalizing
• posting
• balancing
678 An asset account shows a balance. • debit
• credit
• no balance
679 An is an amount which is incurred in return for some • income
benefit and the benefit is enjoyed immediately.
• loss
• revenue
• expense
680 is a special term indicating the recording of entries • recording
in
the ledger. • journalizing
• posting
• balancing
681 . Cash purchases are entered in the • cash account
• cash book
• purchases book
• sales book
682 The column in a ledger account shown the • JF
location of each entry in the journal.
• LF
• FJ
• FL
683 Purchase account will always have • debit
balance.
• credit

• No balance

684 The entries in the purchase returns book are based on • debit note
issued by the concern.
• credit note
• goods returned note
• none of these
685 Summary of balances of ledger account is called • trial balance
• balance sheet
• cash flow statement
• none of these
686 is an allowance or deduction made from the invoice • trade discount
price of goods sold.
• cash discount
• commission
• none of these
687 .represents a note sent to the supplier for the • debit note
value of
goods returned by the business. • credit note
• goods returned note
• none of these
688 When goods are taken back from or an allowance is granted to a • debit note
customer, the note is known as .
• credit note
• goods returned note
• none of these
689 The statement containing various ledger balances on a particular • trial balance
date
is known as . • balance sheet
• cash flow statement
• none of these
690 If the two sides of the trial balance tally, it is an indication of the • logically
fact
that the books of account are .accurate • recordically
690 If the two sides of the trial balance tally, it is an indication of the
fact
that the books of account are .accurate

• arithmetically

• none of these
691 Total of the discount column on the receipt side of the cash book • debited
is
. to Discount A/c. • credited

• deducted
• none of these
692 give a concise idea about the profitability and financial • final accounts
position
of the business. • balance sheet
• trial balance
• none of these
693 Excess of debit over credit in the trading account • gross loss
means
• gross profit
• cost of goods sold

• none of these

694 Expenses paid in advance is • assets

• liabilities
• profit
• loss
695 Outstanding expense is • assets
• liabilities
• profit
• loss
696 A balance in the suspense account will appear on • debit
the
asset side of the balance sheet. • credit
• none of these
697 is an expenditure which is incurred to meet the • capital expenditure
day to day expenses of the business.
• revenue expenditure
• deferred revenue expenditure
• None of these
698 Gross profit is made when the sales proceeds exceed the • purchases
• revenue
• cost of goods sold
• None of these
699 wage incurred for the current period are shown as • accrued
a liability in the balance sheet unless it is paid.
• outstanding
• nominal
• current
700 A is a statement of affairs of a business, which • trial balance
reveals the financial position of a business as on a particular date.
• balance sheet
• cash flow statement
• none of these
701 The capital of the proprietor increases when the business • revenue
makes
701 The capital of the proprietor increases when the business
makes
• income
• loss
• profit
702 The balance sheet is and not • statement and account
• account and statement
• document and account
• none of these
703 All expenses incurred by the proprietor which are not related to • withdrawal
business are treated as
• drawings
• remittances

• none of these

704 Properties and possessions of a business are termed as • assets

• liabilities
• profit
• loss
705 Carriage inward is transferred to the account • trading and P/L account
whereas
carriage outward is transferred to _ account • P/L account and trading account
• carriage account and P/L
• none of these
706 Prepaid expenses appearing in trial balance will appear in • trading a/c
• profit and loss a/c
• balance sheet
• prepaid exp. a/c
707 If the opening and closing stock is Rs. 20,000 each, purchases are • 10,000
Rs.
50,000, manufacturing expenses are Rs. 10,000 and sales Rs. • 20,000
90,000, • 30,000
the gross profit will be
• 40,000
708 If the gross profit is Rs. 11,000, administrative expenses are Rs. • 8700
3,000
and miscellaneous income is Rs. 700, the net profit will be • 11000
• 8300
• 11300
709 The assets are Rs. 48,000 and liabilities are Rs, 18,000. The total • 48000
of
the liability side of the balance sheet will be • 44000
• 45000
• 46000
710 Amount of is deducted from the value of respective • depreciation
assets in
the balance sheet. • gross value

• net value
• none of these
711 .include cash and assets that can be normally converted
into cash during the operating cycle of the business • Current liability
711 .include cash and assets that can be normally converted
into cash during the operating cycle of the business

• current assets

• contingent assets
• none of these
712 Net profit / loss is transferred to the account. • assets
• liability
• revenue
• capital
713 Accrued income is a/an • liability
• assets
• revenue

• none of these

714 The 'Posting' is done in the Journal. • TRUE

• FALSE
715 Ledger is a set of accounts. • TRUE
• FALSE
716 Transactions are recorded first of all in the Ledger. • TRUE
• FALSE
717 The word 'To' is used with the accounts which appear on the Debit • TRUE
side of a ledger account.
• FALSE
718 Trial Balance helps in knowing the arithmetical accuracy of the • TRUE
accounting entries.
• FALSE
719 The process of transferring the debit and credit items from a • Posting
Journal to their respective accounts in the Ledger is termed as
• Transferring
• Shifting
• None of the above
720 Journal is the book of entry, while Ledger is the book of • second, first
entry.
• first, second
• main, extra
• main, miscellaneous
721 The word 'By' is used with an account while making posting on the • debit
side of an account.
• credit
722 The technique of finding the net balance of an account after • adding
considering the totals of both debits and credits appearing in the
account is known as • posting
• balancing of an account
• transferring
723 The statement containing various ledger balances on a particular • ledger
date is known as
• journal
• final account
• trial balance
724 If the two sides of the trial balance tally, it is an indication of the • arithmetically
fact that the books of accounts are
accurate. • statistically

• geometrically
 If the two sides of the trial balance tally, it is an indication of the
fact that the books of accounts are
accurate.

• logically
725 Credit Note is sent to a customer when goods sold are returned by • TRUE
him.
• FALSE
726 Debit Note is sent to the supplier of the goods when the goods are • TRUE
returned.
• FALSE
727 A is sent to a customer when he returns the goods. • debit note
• credit note
728 When the goods are returned to the supplier a • debit note
is sent to him.
• credit note

729 Salary Prepaid Account is • Personal

• Real
• Nominal
730 Salary Outstanding Account • Personal
• Real
• Nominal
731 Rent Account • Personal
• Real
• Nominal
732 Insurance Unexpired • Personal
• Real
• Nominal
733 Bad Debts Account • Personal
• Real
• Nominal
734 Furniture Account • Personal
• Real
• Nominal
735 Goodwill Account • Personal
• Real
• Nominal
736 The amount brought in by the proprietor in the business should be • Cash Account
credited to
• Capital Account
• Drawing Account
• None of these
737 The amount of salary paid to Suresh should be debited to • The account of Suresh
• Salaries Account
• Cash Account
• None of these
738 Sales made to Mahesh for cash should be debited to • Cash Account
• Mahesh
• Sales Account
• None of these
739 The rent paid to the landlord be credited to • Landlord's Account
739 The rent paid to the landlord be credited to

• Rent Account
• Cash Account
• None of these
740 In case debt becoming bad, the amount should be credited to • Debtor's Account
• Bad Debts Account
• Sales Account
• None of these
741 Carriage paid on goods purchased. • Capital
• Revenue
742 Legal expenses incurred for abuse of Trade Mark. • Capital
• Revenue
743 Money raised by issue of equity shares. • Capital
• Revenue
744 Expenditure incurred on issue of equity shares. • Capital
• Revenue
745 Cost of formation of a new company. • Capital
• Revenue
746 Payment of compensation to a discharged employee. • Capital
• Revenue
747 Legal expenses incurred in defending a suit for breach of contract • Capital
to supply goods
• Revenue
748 Cost of goods purchased for resale is an example of • Deferred Revenue Expenditure
• Revenue Expenditure
• Capital Expenditure
749 Rs. 5,000 spent on replacement of worn-out part of the machine • Capital Expenditure
will be charged as
• Revenue Expenditure
• Deferred Revenue Expenditure
750 Discount allowed on issue of shares is an example of • Capital Expenditure
• Revenue Expenditure
• Deferred Revenue Expenditure
751 Preliminary Expenses are an example of • Revenue Expenditure
• Deferred Revenue Expenditure
• Capital Expenditure
752 Depreciation of fixed assets is an example of • Revenue Expenditure
• Capital Expenditure
• Deferred Revenue Expenditure
753 Repairs incurred before using a second - hand car purchased • Capital Expenditure
recently is a
• Revenue Expenditure
• Deferred Revenue Expenditure
754 Rs. 2,000 spent on dismantling, removing and reinstalling plant • Capital Expenditure
and machinery to a more convenient site.
• Revenue Expenditure
755 Rs. 600 paid for removal of stock to a new site. • Capital Expenditure
• Revenue Expenditure
756 Rs. 1,000 paid for erection of a new machine.
• Capital Expenditure

• Revenue Expenditure
757 A sum of Rs. 20,000 was spent by a large factory in overhauling its • Capital Expenditure
entire plant which resulted in adding three years to its working life.
• Revenue Expenditure
• Deferred Revenue Expenditure
758 Cost of Rs. 10,000 incurred in increasing the sitting • Capital Expenditure
accommodation and Rs. 5,000 in repainting of a cinema house.
• Revenue Expenditure
• Deferred Revenue Expenditure
759 Carriage paid on goods purchased • Capital Expenditure
• Revenue Expenditure
760 Wages of workmen employed for setting up a new machinery. • Capital Expenditure
• Revenue Expenditure
761 Replacement cost of a worn-out part of a plant. • Capital Expenditure
• Revenue Expenditure
762 Damages paid on account of breach of a contract to supply certain • Capital Expenditure
goods.
• Revenue Expenditure
763 The freight and cartage on the new machine amounted to Rs. 150 • Capital Expenditure
and the erection charges cost Rs. 275.
• Revenue Expenditure
• Deferred Revenue Expenditure
764 The 'Current Liabilities' is used to denote those liabilities which are • TRUE
payable after a year.
• FALSE
765 All Intangible Assets are fictitious assets. • TRUE
• FALSE
766 Stock at the end, if appears in the Trial Balance, is taken only to • TRUE
the Balance Sheet.
• FALSE
767 Goods taken out by the proprietor from the business for his • TRUE
personal use are credited to Sales Account.
• FALSE
768 The terms 'Accrued Income' and 'Outstanding Income' have • TRUE
synonymous meanings.
• FALSE
769 Premium paid on the life policy of the proprietor is debited to the • TRUE
Profit and Loss Account.
• FALSE
770 Trial balance is a statement which shows the total of the • Opening, Closing
or the balances of all the accounts.
• Current, Future
• Debit, Credit
• Cash, bank
771 Mr. Anand buys goods of Rs. 2,50,000 paying cash Rs. 2,00,000. • Rs. 2,50,000
What is the amount of expenses as per the accrual concept?
• Rs. 2,00,000
• Rs. 50,000
• Nil.
772 Rs. 200 paid as wages for erecting a machine should be debited to • Repair account
• Machine account
• Capital account.
772 Rs. 200 paid as wages for erecting a machine should be debited to

• Furniture account

773 Under the straight line method of depreciation, the amount of • Remains the same
yearly depreciation
• Fluctuates
• Increases year after year
• Decreases year after year
774 A Bank Reconciliation Statement is prepared to know the causes the balances as per cash column of Cash Book and
for the difference between: •
the Pass book.

the balance as per bank column of Cash Book

•
and the Pass Book.

the balance as per bank column of Cash Book and

•
balances as per cash column of Cash Book.

• None of the above.

775 When preparing a Bank Reconciliation Statement, if you start with • Added
a debit balance as per the Cash Book, cheques issued but not
presented within the period should be: • Deducted
• Not required to be adjusted
• None of the above
776 Original cost = Rs. 1,26,000. Salvage value = 6,000. Useful Life= 6 • Rs. 21,000
years. Annual depreciation under Straight line Method will be
• Rs. 20,000
• Rs. 15,000
• Rs. 14,000
777 Which of the following expenses are debited in trading account? • Carriage outwards
• Salaries
• Carriage inwards
• Rent of office premises
778 As per the accounting equation • Capital + Liabilities = Assets
• Capital + Assets = Liabilities
• Liabilities + Assets = Capital
• Assets = Liabilities - Capital
779 In Double Entry System of Book - keeping every business
transaction affects: • Two accounts with equal but opposite effect.

• Two sides of the same account.

• The same account on two different dates.

• All of the above

780 is an intangible real account. • Land
• Building
• Goodwill
• Cash
781 Journal entry for outstanding salary to clerk Rs. 6,000 will be
• Dr. Salary A/c and Cr. Cash A/c Rs. 6,000

Dr. Outstanding salary A/c and Cr. Salary A/c Rs.

•
6,000.
781 Journal entry for outstanding salary to clerk Rs. 6,000 will be

Dr. Salary A/c and Cr. Outstanding salary A/c Rs.

•
6,000

• Dr. Cash A/c and Cr. Salary A/c Rs. 6,000

782 Rs. 5,00,000 spent on advertising to introduce a new line of • Capital expenditure.
product is .
• Revenue expenditure.
• Deferred Revenue Expenditure
• None of the above
783 When a trial balance does not agree, the difference can be • Nominal account
transferred to .
• Personal account
• Real account
• Suspense account
784 Bank pass book is also known as . • Bank book.
• Bank account.
• Bank column.
• Bank statement.
785 Machinery costing Rs. 20,00,000 was purchased on 1.4.2010. The • Rs. 2,50,000
installation charges amounting Rs.
5,00,000 were incurred. The depreciation at 10% per annum on • Rs. 2,00,000
straight line method for the year ended 31st March, 2011 will be • Rs. 50,000

• Rs. 1,50,000

786 Debit balance as per Cash Book of Yeti Enterprises as on • 22,000

31.3.2011 is Rs. 20,000. Cheques deposited but not cleared
amounts to Rs. 2,000 and Cheques issued but not presented of • 18,000
Rs. 4,000. Balance as per pass book should be • 20,000

• 24,000

787 In the books of Deepak Ltd. The machinery account shows a debit • Rs. 13,200 Profit
balance of Rs. 60,000 as on April 1, 2009. The machinery was
sold on September 30, 2010 for Rs. 30,000. The company charges • Rs. 13,200 loss
depreciation @ 20% p.a. on diminishing balance method. Profit / • Rs. 6,800 Profit
Loss on sale will be
• Rs. 6,800 loss

788 The balance sheet of Mr. Kapoor consists of Capital Rs. 7,00,000; • Rs. 7,00,000
Machinery Rs. 5,00,000 and cash Rs. 2,00,000. If he spends Rs.
5,000 to buy a car for personal use, the balance of capital account • Rs. 6,95,000
will be • Rs. 7,05,000

• Rs. 1,95,000
789 Withdrawal of money by the proprietor is not an expense but a • Capital
reduction of .
• Liability
• Asset
• None of the above
790 If outstanding wages appears in the trial balance it is shown in • Balance sheet
.
• Both in balance sheet and profit and loss account

• Profit and loss account

• Trading account
791 Capital expenditures are recorded in the . • Balance sheet
• Profit and loss account
791 Capital expenditures are recorded in the .

• Trading account

• Manufacturing account

792 Which of the following is not a tangible asset for the firm? • Furniture
• Goodwill
• Machinery
• Land and Building
793 The debit balance of a cash account shows • Amount receivable
• Amount payable
• Cash in hand
• Liability
794 Journal entry for purchase of furniture Rs. 8,000 will be
• Dr. Furniture A/c and Cr. Cash A/c Rs. 8,000

• Dr. Purchases A/c and Cr. Cash A/c Rs. 8,000

• Dr. Cash A/c and Cr. Purchases A/c Rs. 8,000

• Dr. Cash A/c and Cr. Furniture A/c Rs. 8,000

795 Journal entry for purchase of furniture for personal use Rs. 8,000
will be • Dr. Furniture A/c and Cr. Cash A/c Rs. 8,000

• Dr. Drawings A/c and Cr. Cash A/c Rs. 8,000

• Dr. Cash A/c and Cr. Drawings A/c Rs. 8,000

• Dr. Cash A/c and Cr. Furniture A/c Rs. 8,000

796 A is given to the customer when he returns the goods. • Credit note
• Debit note
• Invoice
• None of these
797 Furniture purchased for resale is an example of : • Capital expenditure
• Deferred revenue expenditure
• Revenue expenditure
• Current Liability
798 Original cost = Rs. 2,26,000. Salvage value = 26,000. Useful Life= • Rs. 40,000
5 years. Annual depreciation under Straight line Method will be
• Rs. 20,000
• Rs. 80,000
• Rs. 60,000
799 Bank overdraft is shown on the side of trial balance. • Debit
• Credit
• None
• Both
800 Recovery of Bad Debt is a: • Revenue receipt
• Capital receipt
• Capital expenditure

• Revenue expenditure
801 Depreciation is provided only on • fixed assets
• current assets
• liquid assets
• fictitious assets
802 Which of the following are of capital nature? • Purchase of goods
• Cost of repair

• Wages paid for installation of machinery

• Rent of a factory
803 On 1.1.2011, a machine costing Rs. 10,000 and a piece of • Rs. 1,000
furniture costing Rs. 20,000 was purchased. Depreciation is
provided @ 5% on furniture and 10% per annum on machine. The • Rs. 300
depreciation for the year ended 31st March, 2011 should be: • Rs. 1,250

• Rs. 500
804 Machinery costing Rs. 20,00,000 was purchased on 1.4.2009. The • Rs. 2,50,000
installation charges amounting Rs.
5,00,000 were incurred. The depreciation at 10% per annum on • Rs. 2,00,000
diminishing balance method for the year ended 31st March, 2011 • Rs. 2,25,000
will be
• Rs. 1,50,000
805 All expenses and accounts appearing in the trial balance • Loss
are transferred to the trading and profit and loss account.
• Revenue
• Asset
• Liability
806 Which of the following is not a transaction?
• Goods are purchased on cash basis for Rs. 1,000

• Salaries paid for the month of May, 2006

• Land is purchased for Rs. 10 lacs

• An employee dismissed from the job

807 Narrations are given at the end of • Final accounts

• Trial balance
• Each ledger account
• Each journal entry
808 Original cost = Rs. 1,26,000. Salvage value = 6,000. Useful life = 6 • Rs. 21,000
years. Annual Depreciation under SLM will be
• Rs. 20,000
• Rs. 15,000
• Rs. 14,000
809 A new firm commenced business on 1st January, 2009 and • Rs. 36,000
purchased goods costing Rs. 90,000 during the year. A sum of Rs.
6,000 was spent on freight inwards. At the end of the year the cost • Rs. 30,000
of goods still unsold was Rs. 12,000. Sales during the year Rs. • Rs. 42,000
1,20,000. What is the gross profit earned by the firm?

• Rs. 38,000
810 The cash book showed an overdraft of Rs. 1,500, but the pass
book made upto the same date showed that cheques of Rs. 100, • Rs. 1,100
Rs. 50, and Rs. 125 respectively had not been presented for
payments; and the cheques of Rs. 400 paid into account had not • Rs. 2,175
been cleared. The balance as per pass book will be
• Rs. 1,625

• Rs. 1,375
811 A second hand car is purchased for Rs. 10,000, the amount of Rs. • Rs. 10,000
1,000 is spent on its repairs, Rs. 500 is incurred to get the car
registered in owner's name and Rs. 1,200 is paid as dealer's • Rs. 10,500
commission. The amount debited to car account will be • Rs. 11,500
• Rs. 12,700
812 If a purchase return of Rs. 84 has been wrongly posted to the debit
of the sales return account, but had been correctly entered in the • the credit side to be Rs. 84 more than debit side
suppliers account, the total of the trial balance would show
• the debit side to be Rs. 84 more than credit side

• the credit side to be Rs. 168 more than debit side

• the debit side to be Rs. 168 more than credit side

813 Debit balance as per Cash Book of ABC Enterprises as on • Rs. 1,600
31.3.2012 is Rs. 1,500. Cheques deposited but not cleared
amounts to Rs. 100 and Cheques issued but not presented of Rs. • Rs. 1,450
150. The bank allowed interest amounting Rs.50 and collected • Rs. 1,850
dividend Rs.
50 on behalf of ABC Enterprises. Balance as per pass book
should be • Rs. 1,650

814 If a purchase return of Rs. 1,000 has been wrongly posted to the
trial balance would show the debit side to be Rs.
debit of the sales returns account, but has been correctly entered •
in the suppliers account, the total of the 1,000 more than the credit

trial balance would show the credit side to be Rs.

•
1,000 more than the debit

the debit side of the trial balance will be Rs. 2,000

•
more than the credit side

the credit side of the trial balance will

•
be Rs. 2,000 more than the debit side
815 In Double Entry System of Book -keeping every business • Two accounts
transaction affects:
• Two sides of the same account

• The same account on two different dates

• All of the above

816 The preparation of a trial balance is for:
• Locating errors of complete omission;

• Locating errors of principle;

• Locating clerical errors.
• All of the above
817 When preparing a Bank Reconciliation Statement, if you start with • Added
a debit balance as per the Cash Book, then cheques issued but
not presented within the period are • Deducted
• Not required to be adjusted

• None of the above

818 The portion of acquisition cost of asset, yet to be allocated to Profit • Book value
and Loss Account is known as
• Accumulated value
• Realisable value
• Salvage value
819 When preparing a Bank Reconciliation Statement, if you start with • Added
a debit balance as per the Cash Book, then cheques issued but
not presented within the period should be • Deducted
• Not required to be adjusted
• None of the above
820 Rs. 200 paid as wages for erecting a machine should be debited to • Repair account
• Machine account
• Capital account
• Furniture account
821 Rs. 2,500 spent on the overhaul of a machine purchased second - • Capital expenditure
hand is
• Revenue expenditure
• Deferred revenue expenditure
• None of the above
822 A purchased a car for Rs. 5,00,000, making a down payment of
Rs. 1,00,000 and signing a Rs. 4,00,000 bill payable due in 60 • Total assets increased by Rs. 5,00,000.
days. As a result of this transaction
• Total liabilities increased by Rs. 4,00,000.

• Total assets increased by Rs. 4,00,000.

Total assets increased by Rs. 4,00,000 with

•
corresponding increase in liability by Rs. 4,00,000

823 Ashok purchased a machine on 01.01.2010 for Rs. 1,20,000. • Rs. 13,000
Installation expenses were Rs. 10,000. Residual value after 5
years Rs. 5,000. On 01.07.2010, expenses for repairs were • Rs. 17,000
incurred to the extent of Rs. 2,000. Depreciation is provided under • Rs. 21,000
straight line method. Annual Depreciation is
• Rs. 25,000

824 Following is the example of external users of financial statements: • Government

• Owners
• Management
• Employees
825 'Business unit is separate and distinct from the person who supply • Money measurement concept
capital to it', is based on
• Going concern concept
• Separate entity concept
• Dual aspect concept
826 If two or more transactions of the same nature are journalised • Compound journal entry
together having either the debit or the credit account common is
known as • Separate journal entry
• Posting

• None of the above

827 If the cheque issued is not presented for the payment upto the
Higher than the balance shown by the cash book
date of the preparation of the Bank Reconciliation Statement, then •
the balance as per Pass Book will be by the amount of unpresented cheque
827 If the cheque issued is not presented for the payment upto the
date of the preparation of the Bank Reconciliation Statement, then
the balance as per Pass Book will be

Lower than the balance shown by the cash book by

•
the amount of unpresented cheque

• Same as shown by the cash book

• None of the above
828 All the expenditures and receipts of revenue nature go to • Trading account
• Profit and loss account
• Balance Sheet
• Either to (a) or (b)
829 A is sent to a customer when he returns the goods. • Debit note
• Credit note
• Proforma invoice
• None of the above
830 Depreciation of fixed assets is an example of expenditure. • Revenue
• Deferred revenue
• Capital
• None of the above
831 An amount of Rs. 200 received from A credited to B would affect • Accounts of A and B both
• A's account only
• Cash account
• B's account only
832 Recording of a transaction in the ledger is called • Costing
.
• Balancing
• Journalizing
• Posting
833 Balance as per cash book is Rs. 5,000. Cheques issued but not • Rs. 5,500
presented for payment Rs. 2,000 and cheques sent for collection
but not collected Rs. 1,500. • Rs. 5,480
The Bank had wrongly debited the account of firm by Rs. 20.
Balance as per pass book will be
• Rs. 5,700

• Rs. 8,300
834 Ram started business with cash Rs. 50,000, Purchased goods Assets Rs. 70,600 = Liabilities Rs. 3,600 + Owner's
from Mohan on credit Rs. 20,000, Sold goods to Shyamal (costing •
equity Rs. 67,000
Rs. 3,000) for cash Rs. 3,600. The accounting equation on the Assets Rs. 70,600 = Liabilities Rs. 50,600 + Owner's
basic of the above transaction will be •
equity Rs. 20,000

Assets Rs. 70,600 = Liabilities Rs. 20,000 +

•
Owner's equity Rs. 50,600

• None of the three

835 Drawings account is in the nature of • Personal account
• Real account
• Nominal account

• None of the above

836 The basic consideration(s) in distinction between capital and • Nature of business
revenue expenditure is / are
• Effect on revenue generating capacity of business

• Purpose of expenses
836 The basic consideration(s) in distinction between capital and
revenue expenditure is / are

• All of the above

837 When opening stock is overstated, net income for the accounting • Overstated
period will be .
• Not be affected
• Understated
• None of the above
838 Inventories should be generally valued at lower of cost or • Fair market value
• Replacement value
• Present value
• Net realisable value
839 In the bank Reconciliation Statement, when balance as per the • Added
cash book is taken as the starting point, then direct deposits from
the customer of Rs. 2,500 in the bank will be • Substracted
• Ignored
• None of the above
840 Debit balance as per Cash Book of Topsy Enterprises as on • Rs. 1,600
31.3.2010 is Rs. 1,500. Cheques deposited but not cleared
amounts to Rs. 100 and Cheques issued but not presented is Rs. • Rs. 1,450
150. The bank allowed interest amounting Rs.50 and collected • Rs. 1,650
dividend Rs.
50 on behalf of Topsy Enterprise. After reconciliation, balance as
per pass book should be • Rs. 1,850

841 A bad debt recovered during the year is a • Capital expenditure

• Revenue expenditure
• Capital receipt
• Revenue receipt
842 Which of the following items is an asset? • Salary paid to manager
• Accounts payable
• Sales
• Debtors
843 All the following statements are objectives of accounting except
Providing information about the assets, liabilities and
•
capital of business entity.

• Maintaining records of business.

Providing information about the performance of
•
business entity.

Providing details about the personal assets and

•
liabilities of the owner.

844 Payment of personal expenses of the owners of the business need • Drawings.
to be recorded as:
• Liabilities.
• Expenses.

• None of the three.

845 Which of the following lists the balance and the title of accounts • P and L Account
given in the ledger, on a given date?
• Balance sheet
• Earnings Statement

• Trial balance.
846 The left side of an account is known as and the right side • Debit, credit.
as .
• Credit, debit.
• Liability, asset.
• None of the three
847 In double entry book keeping system, every transaction affects at • One.
least account(s).
• Two.
• Three.
• Four.
848 All expenses and accounts appearing in the trial balance • Loss.
are transferred either to the trading account or profit and loss
account. • Income.
• Asset.
• Liability.
849 Carriage charges paid for a new plant purchased if debited to • Plant account.
carriage account would affect
• Carriage account.
• Plant and carriage account.
• None of the three.
850 Following figures have been taken from the trial balance of a • Rs. 10,000
trader; Purchases of Rs. 30,000, Purchase Returns of Rs. 5,000,
Sales of Rs. 40,000, Sales returns of Rs. 5,000. The amount of • Rs. 5,000
Gross Profit will be • Rs. 7,500
• None of the three
851 The balance of furniture and fixtures as on 1st April 2009 was Rs. • Rs. 1,500
10,000. Furniture of Rs. 5,000 was purchased on 1st October,
2009. Depreciation is charged @ 10% p.m. on W.D.V. method. • Rs. 1,250
The depreciation for the year ended 31st March, 2010 will be • Rs. 1,750
.
• None of the three
852 Rent due for the month of March will appear in the cash • On the receipt side
book.
• On the payment side
• As a contra entry
• No where
853 If bank balance as per cash book differs from that appearing in the • Adjusted cash book.
current account statement, then the balance considered for
finalizing the accounts is of • Cash book before any adjustments.
• Pass book.
Not taken to final accounts in case of difference in the
•
balance.
854 Material costing Rs. 700 in the erection of the machinery and the • Material account.
wages paid for it amounting to Rs. 400 should be debited to:
• Wages account.
• Purchases account.

• Machinery account.

855 'Inventories should be out of godown in the sequence in which • HIFO

they arrive' is based on:
• LIFO
• FIFO

• Weighted Average
856 Carriage inwards is debited to • Trading account
• Profit and loss account
• Profit and loss appropriation account
• Balance sheet
857 If total of all debits of a ledger account is more than the total of all • Debit side of that ledger account
credits of the same account, then the balancing figure is placed at
the . • Credit side of that ledger account

• End of that ledger account as a footnote

• None of the above

858 Opening stock of the year is Rs. 20,000, Goods purchased during • Rs. 53,000
the year is Rs. 1,00,000, Carriage Rs. 2,000 and Selling expenses
Rs. 2,000. Sales during the year is Rs. 1,50,000 and closing stock • Rs. 55,000
is Rs. 25,000. The gross profit will be: • Rs. 80,000
• Rs. 51,000
859 It is generally assumed that the business will not liquidate in the • periodicity
near foreseeable future because of
concept. • materiality
• matching
• going concern
860 Which of the following is correct?
• Capital is equal to assets plus liabilities

• Assets is equal to liabilities minus capital

• Liabilities is equal to capital plus assets

• Capital is equal to assets minus liabilities

861 Double column cash book records • Only cash transactions

• All transactions
• Cash and bank transactions

• Cash purchase and cash sale transactions

862 All of the following have debit balance except • Wages account
• Debtors accounts
• Bills payable account
• Goodwill
863 Rs. 5,000 spent to remove a worn out part and replace it with a • Capital expenditure
new one is
• Revenue expenditure
• Deferred revenue expenditure

• None of the above

864 Drawings are deducted from . • Sales

• Purchases
• Expenses
• Capital
865 Purchase returns appearing in the trial balance are deducted from • Sales returns
.
• Capital
865 Purchase returns appearing in the trial balance are deducted from
.

• Sales
• Purchases
866 will generally show a debit balance • Bank Loan
• Bad debts recovered
• Salary payable
• Drawings
867 Dinesh Garments purchased a machine for Rs. 50,000 and spent • Rs. 5,000
Rs. 6,000 on its erection. On the date of purchase it was estimated
that the effective life of the machine will be ten years and after ten • Rs. 5,600
years its scrap value will be Rs. 6,000. The amount of depreciation • Rs. 6,000
for each year on straight line basis is
• None of the above
868 Salary has been paid for 11 months from April 2011 to February, • Rs. 1833
2012 amounting Rs. 22,000. The amount of outstanding salary
shown in the balance sheet will be • Rs. 2,000
• Rs. 1,000
• None of the above
869 Rs. 5,000 was spent by Saroj for addition to machinery in order to • Revenue in nature
increase the production capacity. The amount is
• Deferred revenue in nature
• Capital in nature
• Liability in nature
870 Capital introduced by Mr. A on 1.4.2011 Rs. 3,00,000; further • Rs. 3,94,000
capital introduced during the year was Rs.
50,000 in the mid of the year. Mr. A withdrew Rs. 2,000 per month • Rs. 3,46,000
and the profit earned during the year was Rs. 20,000. Capital as • Rs. 2,94,000
on 31.3.2012 will be
• None of the three
871 A purchased a car for Rs. 5,00,000, making a down payment of • Assets will increase by Rs. 5,00,000
Rs. 1,00,000 and signing a bill payable of Rs. 4,00,000. As a result
of this transaction • Liabilities will increase by Rs. 4,00,000

• Assets will increase by Rs. 4,00,000

• Both (b) and (c )
872 The value of inventories or stock is figured out at the lower of cost • purchase price
and
• opportunity cost
• realizable value
• net realizable value
873 Under which depreciation method the amount of depreciation • Straight line method
expenses remains same throughout the useful life of a fixed asset
• Reducing balance method
• Number of units produced method

• Machine hours method

874 A company purchased a vehicle for Rs. 6000. It will be used for 5 • Rs. 1,000
years and its residual value is expected to be Rs. 1000. What is
the annual amount of deprecation using straight line method of • Rs. 2,000
depreciation? • Rs. 3,000
• Rs. 3,300
875 What is the accumulated deprecation?
• Sum of all depreciation expenses of a fixed asset

• Depreciation expenses
• Cost of depletion of assets
 • Future value of fixed asset
876 A fixed asset was bought for Rs. 5000. Its accumulated • Rs. 600
depreciation is Rs. 3000 and rate of depreciation is 20%. Calculate
its depreciation expenses for the current accounting period using • Rs. 2,000
reducing balance method? • Rs. 300
• Rs.400
877 In depreciation calculation, the useful life of a fixed asset is: • a certain figure
• an estimate

• a predetermined figure for all fixed assets

• None of these
878 Depreciable amount + Residual value of a fixed asset • Depreciation expenses
=?
• Accumulated depreciation
• Cost of the fixed asset

• Future economic benefits of a fixed asset

879 Which of the following fixed assets is not depreciated in the • Plant and machinery
ordinary circumstances?
• Building
• Land
• Equipments
880 Payment of rent expenses is recorded on which side of cash • Receipts
book?
• Payments
• Income
• Expenses
881 An entry which is made on both sides of a cash book is called • Cash entry
• Contra entry
• Payment entry
• Compound entry
882 A cash book with cash, bank and discount column is commonly • Cash book
referred as
• Two columns cash book
• Three columns cash book

• Petty cash book

883 Cash book records • Cash payments

• Cash receipts

• Cash payments and cash receipts

• Neither cash payments nor cash receipts

884 Discount received is recorded on which of the following side of a • Receipts

cash book?
• Payments
• Incomes
• Expenditures
885 Drawings by owner of business are generally recorded on which of • Receipts
the following side of a cash book?
• Payments
• Incomes
885 Drawings by owner of business are generally recorded on which of
the following side of a cash book?

• Expenditures
886 Introduction capital by owner of business is recorded on which • Receipts
side of a cash book?
• Payments
• Incomes
• Expenditures
887 Purchase of office equipment for cash will be recorded on which of • Receipts
the following sides of a cash book?
• Payments
• Incomes
• Expenditures
888 will be credited if goods are given as charity • Cash
• Charity
• Purchases
• Sales
889 Which of the following is known as the base for preparing trial • Journal
balance?
• Cash account
• Ledger account
• Balance sheet
890 The normal balance of capital account is • Credit balance
• Debit balance
• Cash balance
• Neither debit nor credit balance
891 The normal balance of asset account is • Credit balance
• Debit balance
• Cash balance
• Neither debit nor credit balance
892 Revenue and expense accounts are referred as • Nominal accounts
• Real account
• Cash accounts
• Banks account
893 Which of the following is the effect on net income if a business • It will increase net income
decreases provision for doubtful debts?
• It will decrease net income
• No effect

• It will increase gross profit and net income

894 A firm has not recorded the bad debts by mistake. Which of the • Net profit would decrease
following is the effect of bad debts omission?
• Net profit would increase
• Gross profit would overstate
• Gross profit would understate
895 Total debtors = Rs. 5000, the closing balance of provision for • Rs. 5000 - Rs. 500= Rs. 4500
doubtful debt a/c is Rs. 500. Identify what amount should be
shown in balance sheet regarding the debtors? • Rs. 5000 + Rs. 500= Rs. 5500
• Rs. 4500 - Rs. 500= Rs. 5000

• Rs. 4500 - Rs. 500= Rs. 4000

896 If debit balances = credit balances, trial balance only shows or • Arithmetic accuracy
check the and it does not indicate that no errors
were made during recording and posting • Errors of commission
• Omissions of economic events

• Understatements of balances
897 What is ignored in the computation of depreciation of a fixed its length of expected useful economic life to the
asset? •
business
• its cost

• its cost of repairs

its estimated residual value at the end of its useful life

•
in the business

898 In Straight line method of depreciation, which is excluded • Useful life of the assets

• Cost of the assets

• Annual cost of repairs

• Expected salvage value

899 • 15%
A machine was bought for Rs. 100,000. Its estimated useful life is • 22.50%
four years with a residual value of Rs.
10,000. Depreciation is charged on the straight line method. What • 35%
is the percentage of depreciation rate
on an annual basis? • 25%

900 Items owned by a business that have monetary value are • Liabilities
• Assets
• Revenue
• Capital
901 Money owed to an outsider is a(n) • Expenses
• Assets
• Liabilities

• Creditor

902 The difference between assets and liabilities is • Expenses

• Net Profit
• Income
• Capital
903 An investment in the business increases and • Assets, Capital
.
• Liabilities, Capital
• Revenue, Capital
• None of the above
904 The Company buy Stationery on credit, so the accounting entries • Stationery, Creditors
should be Debit: Credit:
• Stationery, Debtors
• Creditors, Stationery

• Stationery, Credit
905 Assets or any other item of the accounting equation can increase • Capital, Net Profit
or decrease but assets will always be equal to +
• Capital, Expenses
• Capital, Liabilities
• Capital, Revenue
906 If assets = Rs.65,000 and liabilities = Rs. 25,000, what is the net • Rs. 30,000
worth of the business?
• Rs. 40,000
• Rs. 50,000
• Rs. 25,000
907 What is a Debit Note?
A document sent to the customer showing allowance
•
given by a supplier in respect of unsatisfactory goods.

A document sent to a supplier showing allowance

•
to be given for unsatisfactory goods.

A copy of customer's personal account taken from

•
the supplier's books.

• A list recording all credit sales for the month.

908 The statement listing the titles and balances of the accounts in the • Balance Sheet.
accounting books on a given date is known as the:
• Profit and Loss.
• Cash Flow Statement.
• Trial Balance.
909 Which of the following items represents an accrual? • Prepaid Insurance
• Salaries Payable
• Fees earned

• Accumulated depreciation

910 A cash discount is best described as a reduction in the sum paid:

• if payment is made within a specified period

• if payment is made either by cash or cheque

• if payment is made by cash, not cheque

• if purchases are made for cash, not credit

911 Which of the following statements best describes 'depreciation'?

• The amount spent to buy a fixed asset.

• The salvage value of a fixed asset.

The part of the cost of the fixed asset consumed

•
during its period of use by the firm.

• The amount of money spent in replacing assets.

912 What is Trade Discount? A reduction given to a customer when he pays in
•
cash

A reduction given to a customer when calculating

•
the selling prices of goods

A reduction given to a customer when he pays within

•
30 days

An amount deducted by the bank for cheques banked

•
in

913 What is Sales Ledger?

• A list recording all credit sales for each period

A document showing details of goods sold and

•
the prices of those goods

• A record of transactions of creditors

• A record of transactions of debtors
914 Carriage inwards is charged to the trading account because ?
• it is an expense connected with buying goods.

• it should not go in the balance sheet.

• it is not part of motor expenses.

• carriage outwards goes in the profit and loss account.

915 What do you mean by Revenue Expenditure?

• Which will expire in two accounting year

• Which will expire in one accounting year

• Which will expire in five accounting year

• Which will expire in half year accounting year

• Which doesn't expire

916 What is the full form of BRS? • Bank Reconciliation Statement

• Bank Registration Statement
• Bank Reporting Statement
• Branch Reconciliation Statement
• None of the above
917 How many digits are there in IFSC Code? • 10
• 11
• 12
• 15
• 20
918 LIFO means • List In First Out
• Least In First Out
• Last In First Out
• Last Input First Output
• None of the above
919 What do you mean by asset? • Liability-Capital
• Liability+Capital
• Capital-Liability
• Capital*Liability
• Capital/Liability
920 Who issues pass book? • Bank
• Company
• Individual
• Branch
• A person
921 What is the full form of WDV in depreciation? • Write Down Value Method
• Wrote Down Value Method
• Written Down Valuation Method
• Written Down Value Method
• None of the above
922 Who prepares consignment note? • Goods collector
• Company
• Transporter
• Party
• Seller
923 What does GRN stand for? • Goods Received Note
• Goods Resend Note
• Goods Reversed Note
• Goods Returned Note
• Goods Reporting Note
924 What do you mean by cash memo? • Bill for credit sale/purchase
• Bill for cash sale/purchase
• Bill for retail
• Bill for whole sale
• None of the above
925 PDC stands for • Post Dated Cheque
• Pre Dated Cheque
• Post Declared Cheque
• Pre Declared Cheque
• None of the above
926 What is the minimum amount required for RTGS? • 50 Thousand
• 2 Lakh
• 1 Lakh
• 75 Thousand
• 3 Lakh
927 CTS stands for • Cheque Transport System
• Cheque Transfer System
• Cheque Transaction System
• Cheque Transaction Stamp
927 CTS stands for

• Cheque Truncation System

928 What is the full form of MICR? • Magneto Ink Character Recognition
• Magnetic Ink Character Recognise

• Magnetic Ink Character Recognition

• Magneto Ink Character Recognise

• None of the above
929 NEFT stands for
• National Electronic Funds Transfer

• National Electrical Funds Transfer

• National Electric Funds Transfer
• National Electronic Funds Tranport
• National Electrical Funds Transport
930 RTGS means • Real Time Gross Statement
• Reverse Time Gross Settlement
• Real Time Gross Settlement
• Reverse Time Gross Statement
• Real Time Gain Statement
931 What does CIF stands for ? • Cheque, Insurance and Freight
• Cost, Insurance and Freight
• Cost, Insurance and Fare
• Carriage, Insurance and Freight
• None of the above
932 What is the full form of CPT? • Carriage Paid To
• Cost Paid To
• Carriage Pay To
• Cost Pay To
• Carriage Post To
933 Depreciation is charged on which type of asset? • Current Asset
• Fixed Asset
• Fixed Liability
• Current Liability
• None of the above
934 FOB means • Fare on Board
• Freight On Board
• Fix on Board
• Free On Board
• Fall On Board
935 CFR stands for • Costing and Freight
• Cost and Freight
• Carriage and Freight
• Cost and Fare

• Costing and Fare

936 What do you mean by CIP? • Cost and Insurance Paid To
• Carriage and Insurance Post To
• Carriage and Insurance Paid To
• Carriage and Insurance Pay To

• Cost and Insurance Pay To

937 DD stands for • Demand Draft

• Deposit Draft
• Demanding Draft
• Despatched Draft
• None of the above