FINAL ANSWER KEY
Paper: Elements of Commercial Accounts Book Keeping (Paper III)
Medium of Question: English
Date of Examination 14-03-2019
Question1:-If an individual asset is increased, there will be a corresponding
A:-Increase of another asset or increase of capital
B:-Decrease of specific liability or decrease of capital
C:-Decrease of another asset or increase of liability
D:-increase of drawings and liability
Correct Answer:- Option-C
Question2:-Onam advance given to an employee is _________.
A:-Revenue Expenditure
B:-Deferred Revenue Expenditure
C:-Not an Expenditure
D:-Capital Expenditure
Correct Answer:- Option-C
Question3:-Decrease in the balance of trade receivables results in _________.
A:-Increase in Loan
B:-Increase in liabilities
C:-Increase in capital
D:-Increase in cash
Correct Answer:- Option-D
Question4:-Which of the following are not miscellaneous expenses?
A:-Amount spent for research & development
B:-Preliminary expense
C:-Brokerage on Issue of shares & Debentures
D:-Goodwill yet to be written off
Correct Answer:- Option-A
Question5:-Which of the following statements is false?
A:-Reserve is an appropriation of profits
B:-Provision for tax still not paid is a reserve
C:-Capital reserve is created out of capital profits
D:-None of the above
Correct Answer:- Option-B
Question6:-Which of the following is wrong?
A:-All real and personal accounts are transferred to balance sheet
B:-Nominal accounts are transferred to P & L account
C:-Each account is opened separately in ledger
D:-Rent is a personal account, outstanding rent is nominal account
Correct Answer:- Option-D
Question7:-Inventory is valued either at cost or market price whichever is lower, according to the principle of _________. A:-Conservatism
B:-Matching
C:-Accrual
D:-None of these
Correct Answer:- Option-A
Question8:-In Profit & Loss a/c, Selling & Distribution expenses does not include ________.
A:-Commission on sale
B:-Packing expenses
C:-Advertisement expenses
D:-Legal expenses
Correct Answer:- Option-D
Question9:-1,500 boxes costing Rs.20 each were sent on consignment. Rs. 24,000 spent on freight. A loss of 10% is unavoidable. Calculate the cost of each bo A:-Rs. 30
B:-Rs. 20
C:-Rs. 36
D:-Rs. 40
Correct Answer:- Option-D
Question10:-Which of the following statements is false?
A:-accounting principle should be changed year after year
B:-accounting principle must be simple understandable and explanatory
C:-Accounting Principles should be based on real assumptions
D:-Accounting Principles should be informational for the users
Correct Answer:- Option-A
Question11:-When the two aspects of a transaction are posted in the Cash Book itself, such an entry is called as __________. A:-Double Entry
B:-Debit Entry
C:-Single Entry
D:-Contra Entry
Correct Answer:- Option-D
Question12:-The proprietor of the business is treated as creditor for the capital introduced by him due to _________ concept. A:-Money measurement
B:-Cost
C:-Entity
D:-Dual aspect
Correct Answer:- Option-C
Question13:-In Journal Entries which pertain to outstanding entries, prepaid entries, depreciation entries are called
A:-Rectification Entries
B:-Adjustment Entries
C:-Transfer Entries
D:-Closing Entries
Correct Answer:- Option-B
Question14:-Where a machine produces products of uniform size, the method of depreciation to be applied __________. A:-Machine Hour method
B:-Annuity method
C:-Production units
D:-Sinking fund method
Correct Answer:- Option-C
Question15:-If del-credere commission is allowed for bad debts, consignee will debit the bad debts amount to
A:-Commission Earned A/c
B:-Consignor’s A/c
C:-Trade receivables (Customers) A/c
D:-General Trading A/c
Correct Answer:- Option-A
Question16:-Which of the following errors are not revealed by the trial balance?
A:-Wrong amount entered in the book of original entry
B:-Wrong amount entered in the sales book
C:-Complete omission of a transaction in the book of original entry
D:-All of the above
Correct Answer:- Option-D
Question17:-The trial balance of swapna shows the opening inventory of Rs.2,00,000 which will be
A:-Credited to trading account
B:-Debited to trading account
C:-Deducted from closing inventory in the Balance Sheet
D:-Added to closing inventory in the Balance Sheet
Correct Answer:- Option-B
Question18:-The credit balance as per pass book of Akhil enterprises was Rs.65,000. Cheques issued but not paid Rs.75,800. Cheques deposited by one of the enterprises account Rs.20,600. The balance as per cash book is ___________.
A:-Rs.31,400 Debit
B:-Rs.10,400 Overdraft
C:-Rs.1,20,000
D:-Rs.31,400 Overdraft
Correct Answer:- Option-D
Question19:-Ram & Company follows perpetual inventory system. On March 31 of every year, the company undertakes physical Inventory verification. On Marcrecords differed from the value as per the physical Inventory. On scrutiny, the following differences were noticed: Goods purchased for Rs. 10,000 were receiveentry was made in the books. Goods costing Rs.30,000 were sold and entered in the books but the Inventory is yet to be delivered. Goods worth Rs.5,000 are recorded. If the inventory is valued in the books at Rs.1,50,000, the value of the physical inventory
A:-Rs.1,85,000
B:-Rs.1,89,000
C:-Rs.1,11,000
D:-Rs.1,59,000
Correct Answer:- Option-A
Question20:-Financial position of a business concern is ascertained on the basis of __________.
A:-Records prepared under book — keeping process
B:-Trial balance
C:-Accounting Reports
D:-None of these
Correct Answer:- Option-C
Question21:-In a three column cash book the discount columns area
A:-Totalled but not adjusted
B:-Totalled and adjusted
C:-Totalled but not balanced
D:-None of the above
Correct Answer:- Option-C
Question22:-Cash Book O.D. Balance Rs.20,000. It was found that cheques of Rs.1,000, Rs.1,500, Rs.1,750 which are issued but not presented till the date anbeen cleared, then O.D. Balance as per passbook is
A:-Rs.21,500
B:-Rs.21,750
C:-Rs.14,750
D:-Rs.19,750
Correct Answer:- Option-B
Question23:-A Bill of Exchange, before its acceptance is called as ________.
A:-Draft
B:-Bills Receivable
C:-Bills Payable
D:-None of these
Correct Answer:- Option-A
Question24:-Rent paid Rs.25,000 is shown on credit side of Trial Balance. The Debit side of Trial Balance will be __________. A:-Short by Rs.25,000
B:-Excess by Rs.25,000
C:-Short by Rs.50,000
D:-Excess by Rs.50,000
Correct Answer:- Option-C
Question25:-In case of loss of goods by fire accident, such loss is debited to
A:-normal loss account
B:-abnormal loss account
C:-inventory account
D:-purchase account
Correct Answer:- Option-B
Question26:-Which of the following is not disclosed or recognized in the financial statements?
A:-Contingent Liability
B:-Contingent Asset
C:-Provision
D:-None of the above
Correct Answer:- Option-B
Question27:-Which Accounts are used to prepare Bank Reconciliation Statement?
A:-Cash column & Bank statement
B:-Cash column & Bank Balance
C:-Bank column & Bank Statement
D:-None of the above
Correct Answer:- Option-C
Question28:-Capital - Rs.2,00,000 Interest paid - Rs.23,500 Debtors - Rs.52,000 Discount allowedRs. 8,200 Creditors -Rs.20,600 Discount received - Rs.10,3- Rs.2,32,900 Loan - Rs. 20,600 Opening stock Rs. 1,56,000 Sales returns Rs. 28,500. Debit total of trial balance will be A:-Rs.3,96,300
B:-Rs.4,16,600
C:-Rs.4,24,800
D:-None of these
Correct Answer:- Option-C
Question29:-________ A/c shows a debit balance.
A:-Contingency reserve
B:-General reserve
C:-Provision for Discount on Creditors
D:-Bank overdraft
Correct Answer:- Option-C
Question30:-Fixed assets are held by business for __________.
A:-Generating revenue
B:-Converting into cash
C:-Resale
D:-None of the above
Correct Answer:- Option-A
Question31:-Which of the following statements is/are false?
I. The term ‘depreciation’, ‘depletion’ and ‘amortization’ convey the same meaning.
II. Provision for depreciation A/c is debited when provision for depreciation A/c is created.
III. The main purpose of charging the profit and loss A/c with the amount of depreciation is to spread the cost of an asset over its useful life for the purpose of i A:-Only I above
B:-Only II above
C:-Only III above
D:-All I, II & III above
Correct Answer:- Option-B
Question32:-Which of the following statements are true about discount columns of cashbook?
A:-Not balanced
B:-Not an account
C:-They are totalled and transferred to respective discount paid / received A/cs.
D:-All of the above
Correct Answer:- Option-D
Question33:-Amount spent to increasing the earning capacity is a ______expenditure.
A:-Capital
B:-Revenue
C:-Deferred revenue
D:-Capital Loss
Correct Answer:- Option-A
Question34:-If depreciation is charged at a fixed rate, then depreciation in SLM method, when compared to WDV is
A:-More in the first year & Less in subsequent years
B:-Equal in the first year & More in subsequent years
C:-Equal in the first year & Less in subsequent years
D:-Less in the first year & More in subsequent years
Correct Answer:- Option-B
Question35:-Wages paid Rs.50,000 for Installation of new machinery wrongly debited to wages A/c instead of machinery A/c. It is an error of A:-Omission
B:-Principle
C:-Commission
D:-Clerical errors
Correct Answer:- Option-B
Question36:-Which of the following is not a foreign bill?
A:-A bill drawn outside India and payable in India
B:-A bill drawn in India and payable outside India
C:-A bill drawn by a person resident outside India and payable outside India
D:-None of the above
Correct Answer:- Option-D
Question37:-The nature of Consignment A/c and Consignee’s A/c will be _________.
A:-Nominal, Personal
B:-Real, Nominal
C:-Personal, Real
D:-Nominal, Real
Correct Answer:- Option-A
Question38:-As on 31.03.2018, the details of three materials A, B & C are as follows :
Item Cost (Rs.) Net Realisable Value (Rs.)
Material A 28,400 23,200
Material B 24,400 26,600
Material C 16,600 13,900
The value stock recorded in the Balance Sheet will be ____________.
A:-Rs.69,400
B:-Rs.63,700
C:-Rs.61,500
D:-Rs.71,600
Correct Answer:- Option-C
Question39:-Credit balance of bank pass book will be ___________ to the account.
A:-An asset
B:-A liability
C:-A provision
D:-None of these
Correct Answer:- Option-A
Question40:-______ is prepared to ascertain the arithmetical accuracy of posting & balancing of accounts.
A:-Cash book
B:-Bank Reconciliation statement
C:-Journal
D:-Trial Balance
Correct Answer:- Option-D
Question41:-The balances of M/s Abbaz Traders are as follows: Capital Rs.10,00,000; Computers Rs.1,30,000; Machinery Rs.4,50,000; Furniture Rs.1,50,000;Sales Rs.16,00,000; Patents Rs.1,20,000; Freight Rs.1,21,000; Purchases Rs.9,15,000; Rent Rs.28,000; Cash in hand Rs.48,000; Bank overdraft Rs.20,000; Ctotal of trial balance is __________.
A:-Rs.27,40,000
B:-Rs.27,20,000
C:-Rs.25,99,000
D:-Rs.26,12,000
Correct Answer:- Option-B
Question42:-Syam’s acceptance to Anoop of Rs.24,000 is retired two months before the due date at discount of 10% p.a. In the books of Anoop the journal ent A:-Cash A/c Dr. 21,600
Discount A/c Dr. 2,400
To B/R A/c 24,000
B:-Syam’s A/c Dr. 10,800
Discount A/c Dr. 1,200
To B/R A/c 12,000
C:-Cash A/c Dr. 23,600
Discount A/c Dr. 400
To B/R A/c 24,000
D:-Syam's A/c Dr. 23,600
Discount A/c Dr. 400
To B/R A/c 24,000
Correct Answer:- Option-C
Question43:-A bill drawn and accepted for mutual help is known as __________ bill.
A:-Ordinary
B:-Trade
C:-Accommodation
D:-Retired
Correct Answer:- Option-C
Question44:-A Bill is Discounted Rs.10,000. Where is it shown at the time of preparation of balance sheet?
A:-Foot note to Balance sheet
B:-Liability side of balance sheet
C:-Debit side of profit & loss Account
D:-Assets side of balance sheet
Correct Answer:- Option-A
Question45:-Rita sold goods for Rs.80,000 on 1.04.18 on a credit of 3 months to Nisha. Out of that 40% only could be received from her estate as she became A:-Rs.60,000
B:-Rs. 48,000
C:-Rs.56,000
D:-Rs.50,000
Correct Answer:- Option-B
Question46:-What is the meaning of the following entry recorded in the machinery Account?
Machinery Account
Dr. Cr.
Date Particulars Amount Date Particulars Amount
31.12.2019 By P & L account 10,000
A:-Portion of sale of machinery transferred to Profit & Loss Account
B:-Machinery of Rs.5,000 sold
C:-Loss on sale of machinery transferred to Profit & Loss Account
D:-Machinery of Rs.5,000 purchased
Correct Answer:- Option-C
Question47:-Ankit carrying on real estate business sold a piece of land for Rs.5,00,00,000 (cost Rs.4,50,00,000) then the type of receipt is ____________ nat A:-Capital & transferred to capital reserve
B:-Revenue & transferred to P & L a/c
C:-Capital & transferred to P & L a/c
D:-Revenue & transferred to general reserve
Correct Answer:- Option-B
Question48:-Average profit = Rs.3,72,000 Normal rate of return = 12% Total assets = Rs.68,00,000 Outside liabilities = Rs.42,00,000. Calculate the value of g A:-Rs.5,00,000
B:-Rs.6,00,000
C:-Rs.26,00,000
D:-Rs.8,00,000
Correct Answer:- Option-A
Question49:-Decrease in the provision for doubtful debts amounts to _____________.
A:-Increase in Net profit
B:-Decrease in Net Profit
C:-Increase in Fixed Assets
D:-Decrease in Fixed Assets
Correct Answer:- Option-A
Question50:-Calculate the profit for the year ended 31-03-2018.
Particulars 31-03-2017 31-03-2018
Capital 2,50,000 ?
Unsecured loan 40,000 30,000
Sundry creditors 15,000 13,000
Fixed assets 1,80,000 2,10,000
Debtors 18,000 12,000
Stock 55,000 26,000
Cash and Bank 52,000 18,000
A:-Rs.8,000 Profit
B:-Rs.22,000 Profit
C:-Rs.27,000 Loss
D:-Rs.21,000 Profit
Correct Answer:- Option-C
Question51:-A firm has reported a profit of Rs.1,47,000 for the year ended 31-3-2018 after taking into consideration the following items.
(i) The cost of machinery Rs.23,000 has been taken as an expense (ii) The firm anticipated a profit of
Rs. 12,000 on the sale of an old Computer (iii) Salary of Rs.7,000 outstanding for the year has not been taken into account. (iv) Furniture of Rs.85,000 was pubooks at Rs.85,000. What is the correct amount of profit to be reported in the books?
A:-Rs.1,47,000
B:-Rs.1,63,000
C:-Rs.1,51,000
D:-Rs.1,41,000
Correct Answer:- Option-C
Question52:-A bill receivable of Rs.10,000 is received from a customer in full settlement of Rs.10,800. On dishonor of this bill, the entry will be passed in ____ A:-Journal proper
B:-Bills receivable book
C:-Purchases book
D:-None of the above
Correct Answer:- Option-A
Question53:-On 27-03-2018 four charges of Rs.20,000, Rs.18,000, Rs.36,000 and Rs.27,000 were deposited in bank, out of which cheque of Rs.20,000 only wRs.27,000 and Rs.36,000 were collected on 4th April. An other cheque was not signed properly and was returned. What are the items to be taken in the B.R.S? A:-Rs.36,000, Rs.27,000
B:-Rs.18,000, Rs.36,000, Rs.27,000, Rs.20,000
C:-Rs.18,000, Rs.36,000, Rs. 27,000
D:-Rs.18,000
Correct Answer:- Option-C
Question54:-In Joint Venture the minimum number of co-ventureres
A:-7
B:-2
C:-4
D:-5
Correct Answer:- Option-B
Question55:-BRS is a part of ____________.
A:-Financial statements
B:-Bank Book
C:-Cash Book
D:-None of these
Correct Answer:- Option-D
Question56:-Retirement of a Bill means __________.
A:-Payment made before due date
B:-Dishonour of a bill
C:-Discounting a Bill
D:-Renewal of a bill
Correct Answer:- Option-A
Question57:-Goods costing Rs. 1,00,000 were stolen. Insurance company accepted a claim of Rs. 80,000. The appropriate journal entry is ___________. A:-Loss by theft a/c Dr. 1,00,000
To Sales a/c 1,00,000
B:-Outstanding insurance claim Dr. 80,000
Profit & Loss a/c Dr. 20,000
To purchases a/c 1,00,000
C:-Loss by theft a/c Dr. 80,000
To purchases a/c 80,000
D:-Profit & Loss a/c Dr. 20,000
To Purchases a/c 20,000
Correct Answer:- Option-B
Question58:-Which is not the procedural aspect of accounting?
A:-Generating financial information
B:-Classification
C:-Using financial information
D:-None of the above
Correct Answer:- Option-D
Question59:-Anil sold goods to Ravi at an invoice price of Rs.6,00,000 at cost plus 25%. 1/4th of the goods are lost in transit. Insurance claim of Rs.72,000 is rdebited to P & L a/c?
A:-Rs.1,20,000
B:-Rs.48,000
C:-Rs.72,000
D:-Rs.1,50,000
Correct Answer:- Option-B
Question60:-Consistency with reference to application of accounting procedures means
A:-Any accounting method can be followed as per convenience
B:-All entities in the same Industry should use identical accounting procedures
C:-Income & assets have not been overstated
D:-Uniform Accounting methods & procedures shall be followed year after year
Correct Answer:- Option-D
Question61:-Change in the capital A/c of proprietor may occur due to
A:-Profit earned
B:-Loss incurred
C:-Capital Infused
D:-All of the above
Correct Answer:- Option-D
Question62:-If nothing is given in the financial statements about the three accounting assumptions, then it is to be treated as A:-Is assumed that it is not followed
B:-Is assumed to be followed to some extent
C:-Is assumed to be followed
D:-None of the above
Correct Answer:- Option-C
Question63:-Net realizable value is ___________.
A:-Estimated selling price
B:-Estimated cost price plus marketing cost
C:-Estimated selling price less cost incurred in order to make sale
D:-Estimated selling price plus cost incurred in order to make sale
Correct Answer:- Option-C
Question64:-The overdraft balance as per the cashbook of Anil is Rs.13,200. An amount of Rs.5,200 was deposited by a customer direct into the account of Anilbounced. Anil is unaware of these two transactions. The balance as per passbook will be __________.
A:-Rs.10,000 (Deposit)
B:-Rs.10,000(O.D)
C:-Rs.8,000 (O.D.)
D:-Rs.10,200(O.D.)
Correct Answer:- Option-B
Question65:-If the goods sent on approval, two vehicles of Rs.55,000 each, are recorded as Rs.75,000 each, then the cost of goods lying with customers. A:-Rs.1,50,000
B:-Rs.55,000
C:-Rs.75,000
D:-Rs.1,10,000
Correct Answer:- Option-D
Question66:-The opening stock is overstated by Rs.10,000 and closing stock is understated by Rs.15,000. The impact on the net profit of the current year is A:-Rs.25,000 understated
B:-Rs.25,000 overstated
C:-Rs.5,000 overstated
D:-Rs.5,000 understated
Correct Answer:- Option-A
Question67:-When outflow of economic resources to settle an obligation is not probable or the amount expected to be paid to settle the liability cannot be mea__________.
A:-Provision
B:-Contingent liability
C:-Secured Loan
D:-Unsecured Loan
Correct Answer:- Option-B
Question68:-Trial balance is a statement which shows _________ of all accounts.
A:-Opening and Closing balances
B:-Balances and Totals
C:-Positive and Negative balances
D:-Debit or Credit balances
Correct Answer:- Option-D
Question69:-Provision for depreciation A/c is created by debiting to ___________.
A:-Machinery Account
B:-Profit & Loss Account
C:-Profit & Loss Appropriation A/c
D:-None of these
Correct Answer:- Option-B
Question70:-Correct sequence of the following as per the order of permanency?
(i) Trade Receivables
(ii) Patents
(iii) Machinery
(iv) Cash in hand
A:-(i), (ii), (iii), (iv)
B:-(i), (iii), (iv), (ii)
C:-(ii), (iii), (i), (iv)
D:-(iii), (ii), (i), (iv)
Correct Answer:- Option-C
Question71:-An Asset purchased for Rs.60,000 and paid Rs.10,000 and remaining amount is payable in instalments. This effect leads to __________. A:-Both assets & Liabilities increased by Rs.50,000
B:-Both assets & Liabilities Decreased by Rs.50,000
C:-Assets Increased by Rs.50,000 & Liabilities Decreased by Rs.50,000
D:-Assets Increased by Rs.10,000 & Liabilities Decreased by Rs. 10,000
Correct Answer:- Option-A
Question72:-On 31-03-2019 balance of Day book is Rs.27,050 (Credit), balance as per bank statement is Rs.23,100 (Debit). On scrutiny it was found that, it wBank balance on 31-03-2019 to be shown in Balance sheet is __________.
A:-Bank O.D. Rs.23,100
B:-Cash at Bank Rs.27,050
C:-Bank O.D. Rs.27,050
D:-Cash at Bank Rs.23,100
Correct Answer:- Option-C
Question73:-Which accounting concept satisfy the valuation criteria __________.
A:-Going concern, Cost, Dual aspect
B:-Going concern, Realisation, Cost
C:-Cost, Dual aspect, Conservation
D:-Realisation, Conservatism, Going concern
Correct Answer:- Option-B
Question74:-The cost of an Asset is Rs.1,20,000. The scrap value will be 25% at end of 10 years. If straight line method of depreciation is followed, the rate of A:-10%
B:-9%
C:-8.5%
D:-7.5%
Correct Answer:- Option-D
Question75:-Machinery was purchased for Rs.20,00,000/-. Market value as on 31.03.2019 is
Rs. 24,00,000/-. If the firm values the machinery at Rs.24,00,000/-, which of the following valuation principle is being followed A:-Historical cost
B:-Present value
C:-Current cost
D:-Realizable value
Correct Answer:- Option-D
Question76:-A company installed a machinery on 01-04-2010 at a cost of Rs. 10,00,000. Useful life of the machine is estimated at 10 years. Depreciation is chthey found that the machine became obsolete and could not be used. It was sold for Rs. 1,00,000. There will be ___________. A:-Capital loss of Rs.3,00,000
B:-Revenue loss of Rs.2,00,000
C:-Capital loss of Rs.2,00,000
D:-Revenue loss of Rs.3,00,000
Correct Answer:- Option-B
Question77:-The amount of depreciation charged under Annuity method ___________.
A:-Remains Fixed for all the years
B:-Decreases every year
C:-Increases every year
D:-Recalculated every year
Correct Answer:- Option-A
Question78:-On 1st April, Anoop sold goods of Rs.10,000 to Rema and drew a bill for 3 months. Anoop discounted the bill with bank at 15%. Amount of discou A:-Rs.125
B:-Rs.250
C:-Rs.375
D:-None of the above
Correct Answer:- Option-C
Question79:-What are the options available to the holder of a bill in the bills of exchange (Besides retaining the bill, till the due date)? A:-Discount with bank
B:-Sent to bank for collection
C:-Endorse it to his creditor
D:-All of these
Correct Answer:- Option-D
Question80:-Expenditure spend for Increasing the cinema hall seats is in the nature of __________.
A:-Capital expenditure
B:-Revenue expenditure
C:-Deferred revenue expenditure
D:-None of the above
Correct Answer:- Option-A
Question81:-If the goods are sent on Sale or Return basis frequently, the trader prepares __________.
A:-Cash book
B:-Sale or return Journal with 2 main columns
C:-Sale or Return Journal with 4 main columns
D:-Sale or Return ledger
Correct Answer:- Option-C
Question82:-Trial balance is prepared to locate ______________.
A:-Clerical errors
B:-Omission errors
C:-Principle errors
D:-All of the above
Correct Answer:- Option-A
Question83:-Renewal fee of patents is a ___________ expenditure.
A:-Capital
B:-Deferred revenue
C:-Revenue
D:-Development
Correct Answer:- Option-C
Question84:-Which of the following are current assets?
1. Accounts receivables
2. Salaries paid-in-advance
3. Bank Loan for 3 years
4. Preliminary expenses
A:-1 & 2
B:-2 & 3
C:-3 & 4
D:-All the above
Correct Answer:- Option-A
Question85:-Sukumar purchased goods Rs.2,00,000 and paid 1% commission on purchases. He sold goods for Rs.2,50,000 and paid 5% commission on sales. A:-Rs.38,000
B:-Rs.34,000
C:-Rs.36,000
D:-Rs.35,500
Correct Answer:- Option-D
Question86:-___________ method of depreciation is used when repairs and Maintenance goes on increase.
A:-SLM method
B:-WDV method
C:-Machine hours method
D:-Production units method
Correct Answer:- Option-B
Question87:-On 1st April, 2018, Mohammed started business with Rs.60,000 and took a loan Rs.25,000 from Subin. During the year earned a profit of Rs.10,0drawings during the year amounted to Rs.5,000. He paid Rs.5,000 to Subin during the year as part payment of loan on 31st March, 2014 his total assets amouliabilities.
A:-Rs.35,000
B:-Rs.40,000
C:-Rs.15,000
D:-Rs.20,000
Correct Answer:- Option-A
Question88:-In which of the following cases, accounting estimates are needed?
A:-Employs benefit schemes
B:-Inventory obsolescence
C:-Impairment of losses
D:-All of the above
Correct Answer:- Option-D
Question89:-A bill is drawn for Rs.40,000 for 3 months. It is paid 1 month before the due date at 6% discount. The amount of discount is ____________. A:-Rs. 800
B:-Rs. 400
C:-Rs. 600
D:-Rs. 200
Correct Answer:- Option-D
Question90:-Goods purchased costing Rs.60,000 and cash paid Rs.45,000 after receipt of a cash discount Rs.9,000. What is the percentage of trade discount g A:-10%
B:-15%
C:-`7(1)/(2)%`
D:-25%
Correct Answer:- Option-A
Question91:-Debentures are shown under the heading ____________.
A:-Reserves & surplus
B:-Capital Reserve
C:-Current liabilities
D:-Secured loans
Correct Answer:- Option-D
Question92:-Salesman earned a commission of Rs.35,000, which is based on 10% of Net profit. If sales is Rs.4,50,000 is more than purchases. No opening & cl A:-Rs.75,000
B:-Rs.1,00,000
C:-Rs.2,50,000
D:-Not attainable
Correct Answer:- Option-B
Question93:-The process of recording financial data up to trial balance is __________.
A:-Book keeping
B:-Classifying
C:-Summarising
D:-Analysing
Correct Answer:- Option-A
Question94:-For a depreciable assets, obsolescence is due to
A:-Passage of time
B:-Technological Changes
C:-Wear & Tear
D:-None of the above
Correct Answer:- Option-B
Question95:-A trader has credited certain items of sales on approval aggregating Rs.90,000 to Sales Account. Of these, goods of the value of Rs.25,000 have b12,000 though the record of return was omitted in the accounts. In respect of another parcel of Rs.18,000 cost being Rs.9,000 the period of approval did not ecustomers should be
A:-Rs.18,000
B:-Rs.81,000
C:-Rs.9,000
D:-None of the above
Correct Answer:- Option-C
Question96:-Which of the following account will have a debit balance?
A:-Reserve for doubtful debts account
B:-Outstanding wages
C:-Capital account (Machinery brought in business)
D:-Loan to Contractor
Correct Answer:- Option-D
Question97:-Drawings are deducted from
A:-Capital
B:-Sales
C:-Purchase
D:-None of the above
Correct Answer:- Option-A
Question98:-The debit balance in the bank columns of cash book indicates ____________.
A:-Total amount withdrawn from bank
B:-Cash at bank
C:-Total amount deposited in bank
D:-Bank overdraft
Correct Answer:- Option-B
Question99:-Double column cash book records
A:-Only credit transactions
B:-All transactions
C:-Cash purchase and credit sale transactions
D:-Cash and Bank transactions
Correct Answer:- Option-D
Question100:-When money is withdrawn from the Bank, the bank ___________ the account of the customer. A:-Credits
B:-Debits
C:-Either credit/Debits
D:-None of the above
Correct Answer:- Option-B