1. Which of the following errors affects the agreement of a trial balance?
Correct : A. Mistake in balancing an account
2. Difference in Bank Balance as per Pass book and Cash book may arise on account of
Correct : D. All of the above
3. Which of these items are taken into consideration for preparation of adjusted cash book?
Correct : A. Mistake in cash book
4. Kasi draws a bi ll on Shyam for 5,000 and Kasi endorsed it to Ram. Ram endorese it to
Rahul. The payee of the bill will be
Correct : D. Rahul
5. On receipt of goods from the consignor the consignee debits which of these accounts?
Correct : D. None of the above
6. The Consignment Accounting is made on the following basis
Correct : C. Accrual basis
7. Joint venture account is of the nature of
Correct : B. Nominal account
8. If unsold goods costing 20,000 is taken over by venturer at 15,000, the joint venture
account will be credited by
Correct : B. 15,000
9. Closing stock appearing in the trial balance is shown in
Correct : C. Balance Sheet only
10. Which one of the following character is not related to Financial Accounting?
Correct : D. Reports are as per requirement of management.
11. Which one of the following equation is correct?
Correct : B. Owner’s Equity = Asset - Liability
12. Identify the Personal Account from the following
Correct : A. Salary Payable Account
13. Which of the following is a transaction of contra entry?
Correct : D. Cash deposited to bank 9,000.
14. When Trial Balance will not tally/mismatch?
Correct : C. Taking balance to the wrong side in the Trial balance
15. An entry of 1,560 has been debited to a Debtor’s Personal Account at 1,650. It is an error
of
Correct : B. Commission
16. Amount set apart to meet loss due to bad debt is a
Correct : A. Provision
17. Reduction in value of asset due to its continuous use is treated as
Correct : B. Depreciation
18. What happens when a bad debt is recovered?
Correct : C. Profit increases
19. Which balance is not considered for closing entries on t he basis of trial balance for
transferring to Trading and Profit & Loss Account?
Correct : D. Cash in Hand
20. Select correct journal entry to rectify an error “An amount of 10,000, withdrawn by owner for personal use debited to Trade Expenses Account”. Debit Credit
Correct : B. Trade Expenses a/c Drawing Account
21. M/s. A.B. Enterprises has bank balance 8,800 as per cash book and the followings were found: (a) Three cheques deposited in bank for 5,800 but only one cheque for 2,000 was cleared. (b) Dividend collected by Bank 1,250 was wrongly entered in cash book as 1,520. What is balance as per pass book?
Correct : B. 4,730
22. House Building advance of 2.00 lakh paid to employees. It is a
Correct : A. Asset
23. Claims against company pending in court case. It is a
Correct : C. Contingent Liability
24. Which one of the following is not a negotiable instrument?
Correct : A. Currency Note
25. Which one of the following is not the feature of a joint venture business?
Correct : D. Profit or loss on joint venture is shared as per their capital ratio.
26. Del Credere Commission in consignment business is generally payable on
Correct : A. Total sales
27. There are 250 members in the Srikrishna Clu b where annual subscription is 500. During 2016-17, subscription received 97,500 and subscription receivable is 47,500. What amount of subscription received in advance during 2016-17?
Correct : A. 20,000
28. When goods are purchased for the joint venture, the account to be debited is
Correct : D. either Purchase account or Joint venture account
29. The abnormal loss on consignment is credited to:
Correct : C. Consignment Account
30. Fixed Assets and Current Assets are categorized as per concept of
Correct : B. Going Concern
31. An expenditure is in capital nature when
Correct : A. the receiver of the amount is going to treat it for the purchase of fixed assets.
32. Cash book is a
Correct : B. Subsidiary book and a Ledger account
33. The periodical total of the Sales Return Book is posted to the
Correct : B. Debit side of Sales Return Account
34. Goods sent on consignment account is of the nature of
Correct : C. Real Account
35. Which of the following items are shown in the income and expenditure account?
Correct : C. Only items of revenue nature pertaining to the period of accounts.
36. Income tax of the sole trade paid is shown
Correct : C. Debited to his Capital Account
37. Narration are given at the end of
Correct : D. Each Journal Entry
38. Life membership fees received by a club is a
Correct : D. Capital Receipt
39. A bad debt recovered during the year will be
Correct : D. Revenue Receipt
40. Nominal Account represents
Correct : C. Both (A) and (B)
41. Prepaid rent is a
Correct : B. Representative Personal Account
42. Purchases book is used to record
Correct : C. All credit purchases of goods
43. The source document or voucher used for recording entries in Sales Book is
Correct : B. invoice sent out
44. Ledger contains various _______ in it.
Correct : C. accounts
45. Purchase price of Machine 8,90,000; Freight and Cartage 7,000; Installation charges 30,000; Insurance charges 20,000; Residual value is 40,000; estimated useful life 5 years. The amount of annual depreciation under straight line method will be
Correct : A. 1,77,400
46. The value of an asset after deducting depreciation from the historical cost is known as
Correct : D. Book value
47. Goods worth 272 returned by Lala passed through the books as 722. In the rectification entry
Correct : A. Lala will be debited by 450
48. When preparing a bank reconciliation statement, if you start with debit balance as per cash book cheques sent to bank but not collected should be
Correct : B. Deducted
49. Payment of Bills of Exchange is received
Correct : B. by holder in due course of due date
50. Which of these is/are recurring (indirect) expenses?
Correct : D. Godown Rent and Insurance
51. Goods of the invoice value of 2,40,000 sent out to consignee at 20% profit on cost, the
loading amount will be
Correct : A. 40,000
52. Memorandum joint venture account is
Correct : C. Nominal Account
53. The balance of the Petty Cash is a / an
Correct : C. asset
54. Endowment fund receipt is treated as
Correct : A. Capital Receipt
55. Purchase book records:
Correct : C. Credit purchase of goods in trade
56. A bank reconciliation statement is prepared to know the causes for the differences between:
Correct : B. The balances as per bank column of cash book and the pass book
57. Which of the following is of capital nature:
Correct : C. Wages paid for installation of machinery
58. Which account is the odd one:
Correct : A. Furniture
59. Which financial statement represents the accounting equation “assets = liabilities + owners’ equity”
Correct : C. Balance sheet
60. “Business unit separate and distinct from the owner of it ”,is based on:
Correct : C. Business entity concept
61. If two or more transactions of the same nature are journalize together having either the debit or credit account common is known as:
Correct : A. Compound journal entry
62. A ………………. Is sent to a customer when he returns the goods
Correct : B. Credit note
63. Writing of the transactions in the ledger is called……………………
Correct : A. Posting
64. A withdrawal of cash from the business by the proprietor should be Credited to:
Correct : A. Drawings A/c
65. Narrations are given at the end of …………………………….
Correct : D. Each journal entry
66. Which of the following lists the balance and the title of accounts in the ledger on a given date?
Correct : D. Trial balance
67. Which of the following is not an transaction?
Correct : D. An employee is dismissed from the job
68. Payment of personal expenses of the owners of business need to be recorded as:
Correct : A. Drawing
69. …………………………….. principle requires that the same method should be used from one accounting period to the next .
Correct : C. Consistency
70. The petty cashier generally works on ……………………. System
Correct : B. Imprest
71. Difference of totals of both debit and credit side of the trial balance is transferred to:
Correct : A. Suspense account
72. Carriage inward is debited to :
Correct : B. Trading account
73. Double column cash book records :
Correct : C. Cash and bank transactions
74. All of the following have debit balance except one. That account is ………
Correct : D. Bills payable account
75. Drawings are deducted from ………………………….
Correct : D. Capital
76. ……………………… will generally show a debit balance.
Correct : D. Drawings
77. Purchase of a fixed asset on credit basis is recorded in …………….
Correct : C. Journal proper
78. Which of the following account will have credit balance?
Correct : D. Outstanding wages
79. Depreciations arises because of :
Correct : C. Physical wear and tear of asset
80. Goodwill is ………………………….
Correct : D. Intangible asset
81. When money is withdrawn from the bank ……….. the account of the customer.
Correct : B. Debits
82. In case of debit balance , the words …………. are written on the debit side.
Correct : A. To balance b/d
83. Bank pass book is also known as …………………………………..
Correct : D. Bank statement
84. Capital expenditure are recorded in the ………………..
Correct : A. Balance sheet
85. Accounts receivable normally has ……………………. Balance
Correct : B. Debit
86. Financial statements are the part of ………………………… .
Correct : A. Accounting
87. Total of purchase return boo is posted periodically to the credit of ……
Correct : A. Purchase return book
88. In case credit balance , the words ………….. are written on the credit side.
Correct : C. By balance b/d
89. Bank overdraft has a ………………………….. balance
Correct : B. Credit
90. Journal proper records :
Correct : D. Opening entry
91. Following is not the example of external users
Correct : B. Management
92. B/R is a ………………………….
Correct : D. Current asset
93. The trial balance shows closing stock of Rs.30,000 .it will be recorded in ………………..
Correct : D. Balance sheet
94. Carriage outward is debited to ………………………………..
Correct : B. P/L account
95. Which of the following is correct?
Correct : A. Capital = Asset – Liabilities
96. In the ledger there are …………………….. columns.
Correct : C. 8
97. Users of accounting information include ………………………
Correct : D. All of the above
98. Accounting standards in India are issued by ……………………
Correct : C. Institute of chartered accountants in India
99. Book debts normally has ……………………… balance.
Correct : B. Debit
100. Capital expenditure provide ………………………… benefits