1.
Calculate depreciation of the asset for five years by using written down value method. Also show accumulated depreciation.
Cost of the asset
Rs. 1,20,000
Depreciation Rate
10%
Expected Life
5 years
2.
Particulars
Rs.
Opening written down value of machine
1,00,000
Cost of new machine purchased during the year
50,000
Depreciation during the year
21,000
Closing written down value (WDV)
?
A. 
B. 
C. 
D. 
3.
Find out the missing value of an Accounting Equation with the help of given data:
Owner’s equity
Rs. 22,500
Total Liabilities
Rs. 80, 385
Cash in hand
Rs. 1,000
Cash at bank
Rs. 2,000
Debtors
Rs. 500
A. 
Rs. 1, 02,885 other assets
B. 
Rs. 1, 02,885 other liabilities
C. 
Rs. 99,885 current liabilities
D. 
4.
Bank Reconciliation Statement is prepared by:
A. 
B. 
Accountant of the business
C. 
D. 
5.
Bank Reconciliation Statement is:
A. 
B. 
C. 
D. 
6.
Expenditures incurred annually on renewal of patent are known as:
A. 
B. 
C. 
D. 
7.
Particulars
Rs.
Opening stock of raw material
100,000
Closing stock of raw material
85,000
Purchases of raw material during the period
200, 000
Cost of Material Consumed
?
A. 
B. 
C. 
D. 
8.
Cost of asset
Rs. 1,00,000
Life of asset
5 years
Depreciation for the each year
Rs. 5,000
Sale price after 5 years
Rs.15,000
Written Down Value of Asset on 5th year
Rs. 75,000
Profit or loss on disposal of fixed asset
?
A. 
B. 
C. 
D. 
9.
Which of the following account will be credited, when the goods are purchased on cash?
A. 
B. 
C. 
D. 
10.
The cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs. 20,000 during the year, what would be the value of Gross Profit?
A. 
B. 
C. 
D. 
11.
The cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs.20,000 during the year. What would be the Net Profit?
A. 
B. 
C. 
D. 
12.
Which of the following account balance will be shown on debit side of Trial Balance? (It is assumed that all account balances are shown on normal balance).
A. 
B. 
C. 
D. 
13.
The amount of salary paid to Mr. Sohail should be debited to:
A. 
B. 
C. 
D. 
14.
Which of the following account will be credited, if business bought goods on credit from Mr. Ali?
A. 
B. 
C. 
D. 
15.
The unfavorable balance of Profit and Loss account should be:
A. 
B. 
Subtracted from current assets
C. 
Subtracted from liabilities
D. 
16.
Which of the following is NOT an example of Current Asset?
A. 
B. 
C. 
D. 
17.
Which one of the following is NOT prepared by Non profit organizations?
A. 
B. 
Income & Expenditure account
C. 
Receipts & Payments account
D. 
18.
An informal accounting statement that lists the ledger account balances at a point in time and compares the total of debit balances with the total of credit balances is known as:
A. 
B. 
C. 
D. 
19.
Documentary evidence, in a specific format used to record the details of a transaction is known as:
A. 
B. 
C. 
D. 
20.
Summarized record of transactions related to individuals or things is called a/an ___________.
A. 
B. 
C. 
D. 
21.
When a Liability is reduced or decreased, it is recorded on the:
A. 
Right or debit side of the account
B. 
Left or debit side of the account
C. 
Left or credit side of the account
D. 
Right or credit side of the account
22.
What will be the effect on accounting equation, when payment is made to the creditor of the business?
A. 
Decrease in an asset, decrease in a liability
B. 
Increase in an asset, increase in a liability
C. 
Decrease in an asset, decrease in owner's equity
D. 
Increase in an asset, increase in owner's equity
23.
Commercial Accounting is based on:
A. 
Single entry book keeping
B. 
Double entry book keeping
C. 
Both single and double entry book keeping
D. 
Cash basis of book keeping
24.
Cost incurred for the maintenance of shop is considered as _________.
A. 
B. 
C. 
D. 
25.
Mr.” A” sold goods for Rs. 3, 00,000 to Mr. “B”, Rs. 3, 00,000 will be treated as _____________ for business.
A. 
B. 
C. 
D.