2. The receipts and Payments account records receipts and payment of
Correct : C. Revenue as well as capital nature
3. A profit on the sale of furniture of a club will be taken to:
Correct : C. Income and expenditure account
4. Entrance fees are generally
Correct : A. Capitalised
5. Legacy for specific purpose is :
Correct : A. Added to the specific fund
6. Subscription received in advance is
Correct : C. Liability
7. Income and expenditure account reveals
Correct : B. Surplus or deficiency
8. Not – for – profit organisations institutions prepare
Correct : C. Income and expenditure account
9. Non-trading organization prepares
Correct : A. Income and Expenditure A/c
10. Receipts and Payment A/c is a summary of
Correct : B. Cash receipts and payments
11. Subscription received in advance by a club are shown in
Correct : C. Liabilities side of Balance Sheet
12. Donations received for a special purpose are
Correct : C. Capital Receipt
13. Receipts and Payment A/c is a
Correct : B. Real A/c
14. Income and Expenditure A/c is a
Correct : A. Nominal A/c
15. Income and Expenditure A/c reveals
Correct : B. Surplus or deficiency
16. Small amount of entrance fee is considered as
Correct : B. revenue income
17. Sale of old newspapers is—
Correct : B. Revenue Receipt
18. Income and Expenditure Account records—
Correct : B. Revenue items
19. Entrance fee, unless otherwise stated, is treated as—
Correct : A. Revenue Receipts
20. Receipts and Payments Account usually indicates—
Correct : C. Debit Balance
21. In not-for-profit organisations, excess of expenditure over income is called—
Correct : C. Deficit
22. The excess of assets over liabilities in non-trading concerns is treated as—
Correct : A. Capital Fund
23. Subscriptions received in advance by a Club are shown on .......... side of the Balance Sheet—
Correct : B. Liabilities Side
24. Outstanding subscription is a/an
Correct : B. Asset
25. Income and expenditure Account shows a balance of:
Correct : D. Excess of revenue over expenditure or vice versa.
26. Receipts and Payments account is
Correct : B. Real Account
27. Income and Expenditure account is
Correct : A. Nominal Account
28. Income and expenditure Account shows a balance of:
Correct : B. Cash in hand
29. A heavy balance in the Receipts and Payments Account means
Correct : C. Heavy Cash
30. A heavy balance in the Income and Expenditure Account means
Correct : A. Heavy Surplus
31. The main source of income for non trading organization is
Correct : A. Subscriptions
32. Opening balance of Receipts and Payments accounts in the credit side shows
Correct : B. Bank overdraft at the beginning of the year
33. Goods sent on consignment should be debited by consignor to:
Correct : A. Consignment A/c
34. In the books of consignor the balance of the consignment stock account would be shown:
Correct : A. As an asset in the balance sheet.
35. The consignor is:
Correct : A. Principal
36. Account Sales is submitted by:
Correct : B. Consignee
37. Joint Venture is of the nature of:
Correct : C. Nominal Account
38. Which of the following is not a feature of a Joint venture?
Correct : A. Continuing business
39. Which of these accounts are not opened in a joint venture:
Correct : A. Stock reserve
40. Profit or loss on joint venture business is shared by the co-venturers:
Correct : C. In the agreed upon ratio
41. In accounting consignment means
Correct : D. Goods sent by its owner to his agent for the purpose by sale.
42. The consignor is
Correct : A. Principal
43. In the books of consignor, the expenses incurred by consignee should be debited to
Correct : B. Consignment A/c
44. In the books of consignor, the balance in the goods sent on consignment account is shown
Correct : C. On the credit side of trading A/c
45. Joint venture account is a
Correct : C. Nominal account
46. In case of Memorandum Method, when there are three co-ventures, each co-venturer opens in his books for the venture
Correct : B. Two accounts
47. P and Q are partners sharing profit and loss in the proportion 2:1 in the Joint Venture. P keeps accounts of joint venture. Q gave Rs. 5,000 to P for joint venture business. P prepared accounts and showed profit of Rs. 2,250. P settled Q’s account. In the books of Q, Rs. _______ profit is credited.
Correct : B. Rs. 750
48. When a complete set of books are maintained for the joint venture and in case where an amount is spent on account of expenses or for purchasing goods for the venture, the entry would be
Correct : A. Joint Venture A/c Dr To Joint Bank A/C
49. Consignee becomes a debtor of the consignor when
Correct : C. The goods are sold
50. Del credere commission is given when the consignee
Correct : C. Bears the loss of bad debts
51. No journal entry is required to be passed when there is
Correct : A. Normal loss
52. Consignee account is in the nature of
Correct : A. Personal account
53. Joint venture account is in the nature of
Correct : C. Nominal account
54. A joint venture is a
Correct : B. A particular partnership
55. Joint Bank account is
Correct : B. Opened specifically for the venture
56. Profit or loss on a joint venture is shared by the co-venturers
Correct : C. As per the agreement
57. The relationship between the consignor and the consignee is that of
Correct : B. rincipal and agent
58. The term used for consignee’s remuneration is
Correct : A. Commission
59. The party responsible for the risk attached to the goods in consignment is
Correct : B. Consignor
60. The legal ownership of the goods is not transferred till the goods are sold in the case of
Correct : B. Consignment
61. In Memorandum Joint Venture Account Method, the co-venturer records
Correct : A. His transactions only
62. Memorandum Joint Venture Account is prepared to find out
Correct : B. Profit or loss on the joint venture
63. The share of profit of the co-venturer maintaining the records is credited to
Correct : A. Profit and loss account
64. Any bad debt incurred on account of joint venture are debited to
Correct : C. Joint Venture Account
65. The person who send the goods to the agent to be sold by him on commission is called
Correct : A. Consignor
66. The commission given by consignor to the consignee for taking additional risks of recovery of debts on account of sales made on credit is known as ________.
Correct : B. Del-credre commission
67. The following accounts should be opened in the case of separate set of books in Joint Venture Account.
Correct : D. All of the above
68. What are the two types of losses of goods in Joint venture Account.
Correct : A. Normal and abnormal losses
69. The consignee is:
Correct : B. Agent
70. Account sales is submitted by;
Correct : B. Consignee
71. Del – credere commission is calculated on:
Correct : D. Both (a) and (b)
72. Joint Bank Account is
Correct : B. opened specifically for the venture
73. When goods are purchased for the Joint Venture, the amount is debited to
Correct : C. Joint Venture Account
74. When a separate set of books is kept for the joint Venture, the commonly accounts maintained are
Correct : D. All of the Above
75. Joint bank account is opened
Correct : B. when separate books for the venture are maintained
76. In case of memorandum method when there are three co-venturers, each co-venturer opens
in its books for the venture
Correct : A. One account
77. In accounting consignment, signifies
Correct : D. Goods despatched by its owner to his agent for the purpose of sale.
78. Goods sent on consignment should be debited by consignor to:
Correct : A. Consignment account
79. In the books of consignee the expenses incurred by him on consignment are debite
Correct : C. To consignor’s account
80. In the books of consignee the sale of goods is credited to:
Correct : A. Consignor’s account
81. The system of keeping accounts generally adopted by small size branches are:
Correct : A. Debtors system
82. Goods are supplied by the head office to dependent branches are at:
Correct : D. Cost or invoice price
83. Under debtors system which account is prepared by head office to calculate profit or loss of
each branch:
Correct : C. branch account
84. Under debtors system depreciation on fixed asset is:
Correct : C. not shown in branch A/c
85. Independent Branch meant when separate account are maintained by:
Correct : B. Branch
86. Branch which does not maintain its own set of books is:
Correct : A. Dependent branch
87. Usually dependent branch makes:
Correct : A. Cash sales only
88. Under Stock & Debtors system, which account is prepared by H.O to ascertain the Gross
Profit earned by the branch:
Correct : B. Branch Adjustment A/c
89. Branch Account under Debtor System is
Correct : C. Nominal Account
90. When goods are invoiced to Branch at selling price, the value of goods is adjusted by
Correct : A. Debiting goods sent to Branch Account
91. Goods sent by the Head Office to the branch but not received by the branch are termed as
Correct : B. Goods in transit
92. Under the stock and debtor system, Branch A/c is treated as –
Correct : D. Real A/c
93. Goods are sent to branch at cost plus 20% .If closing stock of the branch is Rs 60,000 at invoice price, Rs____ will be credited to stock reserve a/c.
Correct : A. Rs. 10,000
94. When Branch assets a/c is kept in the books of H.O., the H.O. will debit following a/c for its depreciation-
Correct : C. Branch A/c
95. Which of the following branches, taking into consideration the scope of authority and responsibility, prepares its own independent final accounts?
Correct : A. Independent Branch
96. If the opening balance of debtors is Rs.16,000 and closing balance is Rs.80,000, cash received from debtors is Rs.35,000 and bad debts is Rs.1,000, then what will be the amount of credit sales?
Correct : C. Rs. 1,00,000
97. Stock and debtors system is generally used when the goods are sent to the branch at
Correct : B. An invoice price
98. Branch stock account is a practical means of controlling stock at
Correct : A. Branch
99. Wholesale prices are fixed above
Correct : A. Cost
100. Goods – in – transit are shown in the balance sheet of