1.
18% investment of Rs. 1,00,000 and interest received on investment Rs. 15,000 have been given in the trial balance for the period ended on 31.3.2006. The amount of interest outstanding in the final accounts will be
Correct Answer
C. Rs.3,000
2.
A building was purchased for Rs.4,00,000 on 1.04.2005. 31st March, 2006, its net realizable value was 5,00,000. The value of building to be shown in the books as on 31st March, 2006 will be
Correct Answer
A. Cost price
3.
A building worth Rs. 10,00,000 is insured for Rs. 6,00,000. It is completely destroyed by fire. The loss to be admitted by the insurance company will be
Correct Answer
B. Rs.6,00,000
4.
A club paid Subscription fees of Rs.1,800 out of which Rs.400 is prepaid.In such case
Correct Answer
C. Both (a)&(b)
5.
A fire broke out on 30th March, 2006 in the godown of Mahesh stock of invoice value Rs.1,600 was destroyed. The goods are invoiced at 25% above cost. The insurance company admitted claim of 50% only. The insurancea claim will be:
Correct Answer
A. Rs. 640
6.
A manager gets 10% commission on sales. Cost price of goods sold is Rs.80,000 which he sold at a margin 20% on sale. Amount of commission will be
Correct Answer
C. Rs.10,000
7.
A manager gets 5 % commission on net profit after charging such commission.If gross profit is Rs.48,000 and expenses of indirect nature other than manager's commission are Rs.6,000.Commission amount will be __________.
Correct Answer
B. Rs.2000
8.
A manager gets 5% commission on net profit after charging such commission, gross profit Rs.58000 and expenses of indirect nature other than manager's commission are Rs.16000. Commission amount will be
Correct Answer
B. Rs.2000
9.
A manager gets 5% commission on sales, cost price of goods sold is Rs. 40,000 which he sells at a margin of 20% on sale. Manager Commission will be
Correct Answer
B. Rs.2500
10.
A new firm commenced business on 1st January, 2006 and 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 of goods still unsold was Rs. 12,000. Sales during the year Rs. 1,20,000. What is the gross profit earned by the firm?
Correct Answer
A. Rs. 36,000
11.
A new firm commenced business on Jan. 1, 2006 purchased goods costing Rs. 19,500 during the year.A sum of Rs. 400 was spent on carriage inward and Rs. 1000 on wages. At the end of the year the cost of goods still unsold was Rs. 12,000. Sales during the year Rs. 25,000. What is the gross profit earned by the firm __________.
Correct Answer
A. Rs. 16,100
12.
A plant & machinery worth Rs.1,00,000 is insured for Rs.60,000. It is completely destroyed by fire. The loss to be admitted by the insurance company will be
Correct Answer
D. Rs.60,000
13.
A purchased a computer costing Rs. 10,000.00 repairing expenses Rs. 1,000.00 and miscellaneous expenses Rs. 500.00. He sold the computer at 20% margin on selling price. The sale value will be:
Correct Answer
D. Rs.14,375.00
14.
A seller sells goods at a profit of 25% on sales. In a particular month, he sold goods costing 45,000. Sales price of goods will be
Correct Answer
D. Rs.60,000
15.
A started business on Jan1 with a capital of Rs. 40,000. On 31st Dec. his position was Creditors Rs. 4700, machinery Rs. 40,000, furniture Rs. 2,000, Debtors Rs. 1300, Cash Rs. 15,000.He made drawings @ Rs. 200 per month and Rs. 1000 which he brought on 1st Oct. in the business as further capital. Business profit will be
Correct Answer
A. 15,000
16.
A started business with Rs.20,000 cash and Rs. 11,000 stock. Cash sales & cash purchases were Rs. 10,000 & Rs. 5,000. Total sales and purchases amounted to Rs. 70,000 & Rs. 50,000. Outstanding creditors were Rs. 15,000 and Debtors Rs. 25,000. Expenses paid Rs. 17,000. Machine was purchased for Rs. 10,000 out of which Rs. 8000 has been paid. Cash in hand at the end of the year Rs.5,000 Trial Balance total will be_________
Correct Answer
A. Rs.1,18,000
17.
A trader sells goods at a profit of 25% on sale. In a particular month he sold goods costing Rs. 34,200 sale price of goods will be
Correct Answer
B. Rs.45,600
18.
A trader sells goods at a profit of 25% on sale. In a particular month, he sold goods costing Rs. 34,200. Rate of profit on cost will be
Correct Answer
A. 33 1/3 %
19.
A trial balance at 31st March contains the following information : 15% Loan Rs.30,000; Interest paid Rs.3,000; interest debited to the P & L A/c is
Correct Answer
B. Rs.4,500
20.
Accounts payable 60,000
Capital 1,00,000
Cash in hand 1,24,000
Prepaid expenses 2,000
Cash at Bank 2,90,000
inventories 1,60,000
Long Term Loan 3,00,000
Wages payable 1,20,000
Investments 20,000
Net profit 96,000
Bills receivable 80,000
Total of Balance Sheet will be
Correct Answer
A. Rs.6,76,000
21.
Adjustment entry for interest earned but not received will be
Correct Answer
C. Dr. Accrued Interest A/c and Cr. Interest A/c
22.
Advertisement expenditure of Rs.10,000 paid on 30.12.2006, the advertisement in respect of which has appeared in the magazines of January, 2007. This expenditure will be
Correct Answer
C. Shown as prepaid expense in the financial statements of the year ended 31st December, 2006.
23.
An inexperienced book-keeper has drawn up a trial balance for the year ended 30th June,2006
Dr. Cr.
Provision for Doubtful Debts -Rs.200 ------
Bank overdraft - Rs.1654 -----
Capital - ---- Rs.4591
Creditors - ----- Rs.1637
Debtors - Rs.2983 -----
Discount received - Rs.252 -----
Discount allowed - ---- Rs.733
Drawings - Rs.1200 -----
Office furniture - Rs.2155 -----
General expenses - ---- Rs.829
Purchases - Rs.10923 ----
Return inward - --- Rs.330
Rent and Rates - Rs.314 -----
Salaries - Rs.2520 -----
Sales - ---- Rs.16882
Stock - Rs.2418 ----
Stationary - Rs.1175 ----
Provision for Depreciation on furniture - Rs.364 ----
Total ---------------- -------------
26.158 250002
------------------ -----------
Corrected trial balance will be
Correct Answer
A. Rs.25,580
24.
B's trial balance contains the following information- Make provision at the end of the year Rs.10,000 Provision for bad debts at the beginning of the year Rs.4,000 Bad Debts Rs.6,000 .The amount to be debited to Profit & Loss A/c
Correct Answer
C. Rs.12,000
25.
B/R is a _________.
Correct Answer
A. Current asset
26.
Bank overdraft as per trial balance is Rs.1,60,000. Bank has allowed the customer to overdrew 80% of the hypothecated value of the stock. Hypothecation of stock has been done by the bank at 80% of the original closing stock value. The amount of closing stock is
Correct Answer
B. Rs.2,50,000
27.
Calculate gross profit if rate of gross profit is 25% on sales and cost of goods are Rs.1,80,000
Correct Answer
A. Rs.60,000
28.
Capital expenditures are recorded in the____________
Correct Answer
A. Balance sheet
29.
Capital introduced by Mr, A on 01.04.05 Rs. 300,000, further capital introduced during the year was Rs. 50,000 in the mid of the year. Mr. A withdrew Rs. 2,000 on the first day of each month. Interest on drawings is charged @ 5%. Profit earned during the year was Rs. 20,000. Capital at the end of the financial year will be
Correct Answer
A. Rs.3,45,350
30.
Capital introduced by Mr. A on 1.4.2006 Rs. 3,00,000; further capital introduced during the year was Rs. 50,000 in the mid of the year. Mr. A withdrew Rs. 2,000 per month and the profit earned during the year was Rs. 20,000. Capital as on 31.3.2006 was
Correct Answer
B. Rs 3,46,000
31.
Capital introduced by Mr.A on 01.01.2005 Rs. 100000. Further capital introduced during the year was Rs. 50,000. Mr. A withdrew Rs. 200 per month on the last date of each month. Interest on drawings was charged @ 5%. Profit earned during the year was Rs. 10,000. Capital on 31.12.05 will be
Correct Answer
A. Rs. 157545
32.
Capital introduced in the beginning by Ram Rs. 16,080; further capital introduced during the year in the form of machinery Rs. 2000; personal expenses during the year -
Drawings in cash Rs. 3,000
Life Insurance Premium Rs. 250
Closing capital Rs. 21,925
The amount of profit or loss for the year will be
Correct Answer
A. Profit 7095
33.
Capital introduced in the beginning by Shyam Rs.. 3,00,000; further capital introduced during the year Rs. 2,00,000; Drawing Rs. 1,500 per month and closing capital is Rs. 4,50,000. The amount of profit or loss for the year is
Correct Answer
A. Loss of Rs. 32,000
34.
Capital on January 1, 2004 Rs.15,200, Capital on January 1, 2005 16,900, Drawings made during the year 4,800, Additional Capital introduced during the year 2,000. Profit of the firm will be
Correct Answer
A. 4,500
35.
Carriage inwards is debited to
Correct Answer
A. Trading account.
36.
Carriage outward is debited to
Correct Answer
B. Profit and loss account
37.
Closing entry for transferofNet profit Rs. 6300 to capital A/c will be
options:
Rs. Rs.
(A) Capital A/c Dr 6300
To P&L A/c 6300
(B) P&L A/c Dr. 6300
To Capital A/c 6300
(C) Trading A/c Dr. 6300
To P&L A/c 6300
(D) None of the three
Correct Answer
B. B
38.
Consider the following data pertaining to H Ltd. for the month of March 2005:
Particulars As on March 01, 2005 (Rs.) As on March 31, 2005 (Rs.)
Stock 1,80,000 90,000
The company made purchases amounting Rs. 3,30,000 on credit. During the month of March 2005, the company paid a sum of Rs.3,50,000 to the suppliers. The goods are sold at 25% above the cost. The sales for the month of March,2005 were
Correct Answer
B. Rs.5,25,000
39.
Consider the following items
(1) Prepaid Salary
(2) Accrued Interest
(3) Loan
(4) Bank overdraft
Current Liability would include-
Correct Answer
D. 3,4
40.
Cost of goods sold can be calculated by ___________.
Correct Answer
A. Trading account
41.
Cost of goods sold Rs. 70,800 Sales Rs. 1,30,200 Gross Profit will be
Correct Answer
A. 59400
42.
Cost of goods sold Rs.8,000. Closing stock Rs.3,000 opening stock Rs.2,500. Wages Rs.1000. Purchases will be
Correct Answer
B. Rs.7,500
43.
Depreciation on machinery in trial balance is recorded in_____________
Correct Answer
B. Profit & Loss A/c
44.
Difference of total of debit and credit side of the trial balance is transferred to
Correct Answer
A. Suspense A/c
45.
Drawing is a type of
Correct Answer
B. Withdrawal of capital
46.
Drawings are deducted from_________
Correct Answer
D. Capital
47.
Financial position of the business is ascertained on the basis of:
Correct Answer
A. Records prepared under bookkeeping process
48.
Fixed assets are
Correct Answer
B. Kept in the business for use over a long period
49.
Following are the details of position statement
Closing Stock Rs.40,000
Drawings Rs.12,000
Net Profit Rs.18,000
Capital Rs.70,000
Debtors Rs.40,000
Cash at Bank Rs. 8,000
Creditors Rs. 30,000
Cash Rs.3,000
Depreciation provision Rs.4,000
Bills receivable Rs.5,000
Liabilities for expenses Rs.3,000
Bills payable Rs.3,000
Balance sheet total will be
Correct Answer
A. Rs.1,16,000
50.
Following are the extracts from the Trial Balance of a firm as on 31st December, 2005.
Particulars Rs.
Sundry debtors 30,000
Bad debts 5,000
Additional information:
(i) After preparing the trial balance, it is learnt that a debtor, Mohan became insolvent and therefore, the entire amount of Rs.3,000 due from him was irrecoverable.
(ii) 10% provision for bad and doubtful debts is generally created. The amount of provision for bad and doubtful debts to be charged to
profit and loss account will be
Correct Answer
B. Rs.2,700