2. Shiva draws a bill on Sanat on 25th October, 2018 for 90 days, the maturity date of the
bill will be
Correct : C. 25th January, 2019
3. Peeru and Simu entered in the business of buy and sale of food grain for a period of
one year and sharing the profit in the ratio of 3:2, this agreement is a
Correct : C. Joint-venture
4. At the end of the year 2017-18, Prepaid Insurance Premium `7,500 appeared in the
Trial Balance, it will be shown
Correct : B. only in Balance Sheet.
5. Contingent Liability would appear
Correct : C. as a note in the Balance Sheet.
6. Debtors Ledger Adjustment Account is opened in the
Correct : C. General Ledger
7. Generally sacrifice ratio is concerned with the situation of
Correct : A. Admission of a new partner
8. KCS purchased a machine from JPS on hire purchase system, whose cash price was `8,64,000. ` 2,16,000 being paid on delivery and balance in three annual instalments of `2,88,000 each. The amount of interest included in first installment would be
Correct : C. 1,08,000
9. Which of the following is a resource owned by the business with the purpose of using it
for generating future profits?
Correct : C. Trade Mark
10. Chandu & Co.'s Account is a
Correct : D. Artificial Personal Accounts
11. Purchase of a laptop for office use wrongly debited to Purchase Account. It is an error of
Correct : C. Principle
12. Which of the following term is most suitable for writing off Patent?
Correct : B. Amortization
13. Memorandum Joint Venture Account is prepared when
Correct : C. each Co-venturer keeps records of their own transactions only.
14. Which of the following commission is allowed by the consignor to the consignee to encourage the consignee for putting-up hard work in introducing new product in the market?
Correct : B. Over-riding Commission
15. If Ram's acceptance which was endorsed by us in favour of Saleem is dishonoured, then the amount will be debited in our books to
Correct : B. Ram
16. In case of a Club, the excess of expenditure over income is called as
Correct : B. Deficit
17. A Charitable Institution has 250 members with a annual subscription of `5,000 each. The subscription received during 2018-19 were `11,25,000, which include ` 65,000 and `25,000 for the years of 2017-18 and 2019-20 respectively. Amount of outstanding subscription for the 2018-19 will be
Correct : C. 2,15,000
18. The following are details of closing stock items in Aarvi Limited: Items Historical Cost (` in Lakh) Net Realizable Value (` in Lakh) (a) 30 27 (b) 15 18 (c) 35 35 (d) 40 45 The value of Closing Stock will be
Correct : C. 117 Lakh
19. When stock is valued at cost in one accounting period and at lower of cost and Net realizable value in another accounting period
Correct : A. Prudence Principle conflicts with Consistency Principle.
20. Materiality Principle is an exception to the
Correct : B. Full disclosure Principle
21. In a Cash Book Debit balance of `112 brought forward as credit balance of ` 121, while preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point:
Correct : C. 233 to be added
22. ______________ represents a potential obligation that could be created depending on
the outcome of an event.
Correct : C. Contingent Liability
23. Opening Debtors, Collection from Debtors and Discount Allowed were `3,15,000; `18,30,000 and `35,000 respectively. If the closing debtors were 20% of credit sales of the period then closing debtors and credit sales would be
Correct : C. 3,87,500 and `19,37,500
24. Following information is given ` Opening Stock 2,13,000 Purchase 16,55,000 Sales 21,32,000 Carriage Inwards 32,500 Carriage Outwards 38,600 Return Inwards 38,000 If the rate of gross profit is 25% on cost then value of closing stock will be
Correct : C. 2,25,300
25. Provision for Doubtful Debt on 1st April, 2018 was `21,500. During the year 2018 – 19 the Bad-debt and Recovery of Bad-debt were ` 10,500 and ` 2,100 respectively. The Sundry Debtors on 31st March, 2019 were `2,25,000. Provision is to be made @ 5% on Debtors. If on 31st March, 2019, there was additional Bad-debt of ` 2,500 then Provision for doubtful-debt will be
Correct : B. debited to Profit & Loss Account by `2,625.
26. A and B enter into a joint venture sharing profit and losses in the ratio of 3:2. A purchased goods costing `2,00,000. B sold 95% goods for ` 2,50,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. A drew a bill on B for an amount equivalent to 80% of original cost of goods. A got it discounted at `1,50,000. What is A's share of profit?
Correct : B. 21,300
27. On 31st March, 2018 (`) On 31st March, 2019 (`) Subscription Outstanding 55,000 72,000 Subscription Received in Advance 31,000 37,000 The amount of subscription received during the year 2018-19 would be
Correct : B. 6,02,000
28. _______________ is prepared at the end of the accounting period to show the financial
position o f business
Correct : B. Balance sheet
29. Payment of monthly rent to land cord is
Correct : A. Economic event
30. _____________is the original form of accounting
Correct : C. Management accountin
31. _____________is an example of fixed asset
Correct : C. Land & building
32. The term _________denotes the cost of services and things used for earning revenue
Correct : B. Expense
33. A person who owes money to the business is a __________
Correct : A. Debtor
34. A _________ is a person to whom business owes money
Correct : A. Creditor
35. ___________denote goods brought for sale.
Correct : B. Purchase
36. ________________ is an example of wasting asset
Correct : A. Mines
37. Asset acquired for long period of time in the business is known as ___________
Correct : A. Fixed asset
38. Things which are purchased by the business for resale are called________
Correct : A. Purchase
39. ____________ expenditure is increased to maintain the business or to keep the assets in
good working condition
Correct : A. Revenue
40. ______________ is the major source of revenue of any business
Correct : B. Sale
41. _______________ represent the amount invested by the owner into business.
Correct : A. Capital
42. A___________ transaction is one where in items are exchanged for other items
Correct : C. Barte
43. Excess of current asset over current liabilities is known as _________ capital
Correct : B. Working
44. ___________ is not a tangible asset
Correct : A. Goodwill
45. According to _________ concept it is assumed that the business will last for long time
Correct : B. Going concern
46. Accounting is concerned with
Correct : A. Monetary
47. Transaction& events not capable of being expressed in terms of money are not to be
recorded in accounting due to
Correct : C. Money measuremen
48. Income is measured on the basics of
Correct : B. Accounting period concept
49. The policy of anticipate no profit and provide for all possible losses is followed due to
Correct : B. Consistency concept
50. In every business transaction at least ______parties are involved
Correct : A. Two
51. All those to whom business owes to money are
Correct : B. Creditor
52. Accounts receivable normally has ________ balance
Correct : B. Debit
53. Financial statements are the part of _________
Correct : B. Accounting
54. Bank account is a _________
Correct : A. Personal accounting
55. Cost of goods old can be calculated by:
Correct : C. Trading accoun
56. Capital expenditure are recorded in the __________
Correct : A. Balance sheet
57. Nominal accounts are related to
Correct : B. Expenses & losses
58. Sales journal is used for recording
Correct : B. Credit sales
59. Trading account is a ____________account
Correct : B. Nominal
60. Closing stock is valued at ____________
Correct : C. Cost price or market price whichever is les
61. Balance sheet is an ______________
Correct : A. Statement
62. Wages paid on for the erection of machinery is debited to
Correct : A. Machinery accounting
63. Income tax is debited to ________________
Correct : C. Drawings accoun
64. Goods taken by the proprietor for personal is shown as a deduction from_____________
Correct : C. Purchas
65. Asset that can be converted into cash within a year are called _________asset
Correct : A. Current
66. Balance sheet is prepared for a ____________
Correct : B. On a particular date
67. Income received in advance is an ___________
Correct : B. Liability
68. If goods are destroyed by fire , the total value of loss is __________ to trading account.
Correct : B. Credited
69. Provision for account on creditors has a _________________balance
Correct : A. Debit
70. Income earned but not received to known as _______________ income
Correct : A. Accrued
71. Prepaid expense is _________ to the business
Correct : A. Asset
72. Withdrawing more amount from bank than the deposit in the account is termed as____
Correct : C. overdraf
73. Income of overdraft, pass book will show __________balance
Correct : A. Debit
74. Cash book shows ___________balance when there is an O.D.
Correct : B. Credit
75. When bank charge incurred, overdraft will be __________________________
Correct : A. increased
76. __________________ balance in cash book indicate deposit balance
Correct : B. Debit
77. Special journal are also called________________
Correct : C. Day boo
78. Cash book is a ____________
Correct : C. Journal & ledge
79. All cash purchases are entered in the _____________book
Correct : A. Cash
80. Discount columns in the cash book are
Correct : A. Totaled
81. The book that records small payment.
Correct : C. Petty cash boo
82. A petty cash book is usually kept under system
Correct : C. Import syste
83. If both the aspects of a same transaction appear in one account, it is called _______entry
Correct : B. Compound
84. Journal is a book of ______entry
Correct : A. Original
85. Ledger is a book of ___________entry
Correct : B. Secondary
86. Recording of transaction in the journal is called
Correct : A. Journalizing
87. Recording of transaction in ledger is called as
Correct : B. Posting
88. Capital account is ________________ account
Correct : A. Personal
89. Old furniture sold should be credited to __________
Correct : B. Furniture account
90. When salary paid by cheque ,____________account is credited
Correct : C. Ban
91. A statement of debt & credit balance of account is ___________
Correct : C. Trial balanc
92. A collection of all accounts is a ___________
Correct : B. Ledger
93. Debit is the asset means
Correct : A. Increase
94. Credit in the liability means
Correct : A. Increase
95. Capital always have a __________balance
Correct : B. Credit
96. A short description of every transaction made in the journal is called
Correct : C. Narratio
97. Capital expenditure are recorded in the __________
Correct : A. Balance sheet
98. Bills receivable is a ___________
Correct : C. Current asse
99. Carriage outward is debited to___________
Correct : B. Profit & loss account
100. Sales return appearing in the trail balance are deducted from