Download paper-2accountancy - SBH SC/ST WELFARE

1. When a person borrows money, he pays in return some extra money to the lender . This
extra money is calledMarks: 2+ 0.5Principal Amount
Dividend
Interest
Bonus
None of the above.
The Correct Answer is :
Interest
You did not answer the question.
Explanation :
0This is due to the impact of certain tings and .......
hope this will work well
Example Explanation
Module : Module A
Chapter : Chapter1
2. The rate of interest on a sum of money is 4% p.a .for the first 2 years, 6% p.a. for The next 4
years and 8% p.a. for the period beyond 6 years. If the simple interest accrued by the sum for
a total period of 9 years is Rs, 1,120, what is the sum?
Marks: 2+ 0.5Rs. 1,000
Rs. 1,500
Rs. 2,000
Rs. 2,500
Rs, 3,000
The Correct Answer is :
Rs. 2,000
You did not answer the question.
Explanation :
1This is due to the impact of certain tings and .......
hope this will work well
Example Explanation
Module : Module A
Chapter : Chapter1
3. 25. A money-lender finds that due to a fail in the rate of interest from 13% to 12.5%, His
yearly income from interest falls by Rs. 208. His principal amount isMarks: 2+ 0.5Rs. 42,800
Rs. 41,600
Rs. 44,600
Rs. 48,000
Rs. 50,000
The Correct Answer is :
Rs. 41,600
You did not answer the question.
Explanation :
2This is due to the impact of certain tings and .......
hope this will work well
Example Explanation
Module : Module A
Chapter : Chapter1
4. A sum of Rs. 25,400 is lent out into two parts, one at 12% p.a. and the other at 12.5% p.a. If
the total annual income from interest is Rs. 3,1160. the money lent at 12% isMarks: 2+ 0.5Rs. 10,000
Rs. 11,800
Rs. 12,400
Rs. 13,400
Rs. 13,600
The Correct Answer is :
Rs. 11,800
You did not answer the question.
Explanation :
3This is due to the impact of certain tings and .......
hope this will work well
Example Explanation
Module : Module A
Chapter : Chapter1
5. 27. A sum of Rs. 26,000 is lent out in two parts in such a way that the interest on one Part @
10% for 5 years is equal to the on another part @ 9% for 6 years. The sum lent out at 10% isMarks:
2+ 0.5-
Rs. 10,500
Rs. 11,500
Rs. 12,500
Rs. 13,500
Rs. 14,500
The Correct Answer is :
Rs. 13,500
You did not answer the question.
Explanation :
4This is due to the impact of certain tings and .......
hope this will work well
Example Explanation
Module : Module A
Chapter : Chapter1
6. 28. At a certain rate of simple interest, a sum doubles itself in 10 years. It will treble Itself
inMarks: 2+ 0.512 Years
15 Years
18 Years
20 years
25 Years
The Correct Answer is :
20 years
You did not answer the question.
Explanation :
5This is due to the impact of certain tings and .......
hope this will work well
Example Explanation
Module : Module A
Chapter : Chapter1
7. In how many years will a sum of money double itself at 12% per annum simple Interest?
Marks:
2+ 0.5-
6 Years
6 Years 6 months.
7 Years
8 Years
8 Years 6 months
The Correct Answer is :
8 Years 6 months
You did not answer the question.
Explanation :
6This is due to the impact of certain tings and .......
hope this will work well
Example Explanation
Module : Module A
Chapter : Chapter1
8. The simple interest at x % for x years will be Rs. X on a sum ofRs. X
Rs. 100 x
100
100
x
The Correct Answer is :
100/x
You did not answer the question.
Marks:
2+ 0.5-
Explanation :
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Module : Module A
Chapter : Chapter1
9. 1. When a person borrows money, he pays in return some extra money to the lender . This
extra money is calledMarks: 2+ 0.5Principal Amount
Dividend
Interest
Bonus
None of the above
The Correct Answer is :
Interest
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
10. The money borrowed from bank or any person is calledPrincipal Amount
Interest
Capital
Financial Assistance
None of the above.
The Correct Answer is :
Principal Amount
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter1
11. The formula for finding simple interest is-
Marks:
Marks:
2+ 0.5-
2+ 0.5-
I * 100
100
RT
(iv) Interest = A * R * T
P*R*T
The Correct Answer is :
P*R*T
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
12. The simple interest on Rs. 10,000 at 6% p.a. for 3 years would be-
Marks:
2+ 0.5-
Rs. 600
Rs. 1,200
Rs. 1,800
Rs. 2,000
None of the above.
The Correct Answer is :
Rs. 1,800
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
13. What is the simple interest on Rs.1,200 at 5.5% p.a. for 5 years ? Find the amount also.
Marks:
2+ 0.5-
320 + 1,200 = Rs. 1,520
325 + 1,200 = Rs. 1,525
340 + 1,200 = Rs. 1,540
350 + 1,200 = Rs. 1,550
None of the above.
The Correct Answer is :
None of the above.
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
14. A money lender lent some amount to a trader @ 8% p.a. After 18 months, the trader paid
him Rs. 700 in full payment of interest and principal amount. Find out the sum lent by the
money-lender.
Marks: 2+ 0.5Rs. 600
Rs. 610
Rs. 625
Rs. 650
Rs. 700
The Correct Answer is :
Rs. 625
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
15. In how may years will the interest be Rs.150 on Rs. 1,250 @4% per annum?
Marks:
2+ 0.5-
1 Year
2 Years
3 Years
4 Years
None of the above.
The Correct Answer is :
3 Years
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter1
16. What annual rate of simple interest was paid if Rs. 500 earned Rs. 55 as interest in 2 Years
and 9 months?
Marks: 2+ 0.52%
3%
3.5%
4%
4.5%
The Correct Answer is :
4%
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
17. A sum of money at simple interest amounts to Rs. 2,800 in 2 years and to Rs. 3,250 in 5
years. Find the sum and the rate of interest.
Marks: 2+ 0.5Rs. 2,500 ; 4%
Rs. 2,500; 5%
Rs. 3,000 ; 4%
Rs. 3,000 ; 5%
Rs. 2,500 ; 6%
The Correct Answer is :
Rs. 2,500 ; 6%
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
18. Certain principal amount plus its 5 Year's simple interest makes an amount of Rs.500. If the
interest is 1/4th of its principal, find out the rate of interest and the principal amount.
Marks:
2+ 0.5-
4% ; Rs. 400
5% ; Rs. 400
5.5% : Rs. 300
6% : Rs. 250
8% ; 200
The Correct Answer is :
5% ; Rs. 400
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
19. A sum of money amount to Rs.2,240 @ 4% simple interest in 3 years. Find the interest on
the same sum for 6 months @ 3.5% p.a.
Marks: 2+ 0.5Rs. 35
Rs. 40
Rs. 45
Rs.50
None of the above.
The Correct Answer is :
Rs. 35
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
20. The simple interest on a sum of money is 1/9th of the principal and the number of the
years is equal to the rate per cent per annum. The rate percent per annum is Marks: 2+ 0.52%
1
3%
1
1
The Correct Answer is :
3%=3.33%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter1
21. What is the amount of Rs. 4,000 @ 4% simple interest p.a from 10th January 2004 to 11th
April 2005, on the basis of number of days?
Marks: 2+ 0.5Rs. 4,200
Rs. 4,300
Rs. 4,300.17
Rs. 4,200.17
Rs. 4,200.87
The Correct Answer is :
Rs. 4,200.17
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
22. The basis salary of a teacher is Rs. 7,000 p.m. He contributes 10% of his basic salary to his
provident fund account. His employer also contributes the similar amount. If the interest
credited to the provident fund account is 6% p.a., find the amount of interest after one year.
Marks:
2+ 0.5-
Rs. 5,040
Rs. 420
Rs. 840
Rs. 546
Rs. 273.
The Correct Answer is :
Rs. 546
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
23. A person deposited a sum of money in a bank on 12th January 2005And received back his
full principal with interest on 24th September 2005. If he got Rs. 1,570, what was his principal
amount while the rate of interest is 5% per annum?
Marks: 2+ 0.5Rs. 4,509 approx.
Rs. 45,088 approx
Rs. 50,000
Rs. 30,000
None of the above
The Correct Answer is :
Rs. 45,088 approx
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
24. A sum of money doubles itself in 16 years at simple interest with yearly rate of-
Marks: 2+
0.5-
6.25%
8%
10%
16%
20%
The Correct Answer is :
6.25%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter1
25. Rs. 800 amounts to Rs. 920 in 3 years at simple interest. If the interest rate is increased by
3%, it would amount toMarks: 2+ 0.5Rs.992
Rs.1,056
Rs.1,112
Rs.1,182
Rs.1,200
The Correct Answer is :
Rs.992
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter1
26. A certain sum of money at simple interest amounts to Rs. 1,260 in 2 years and toYears and
to Rs. 1,350 in 5 years. The rate per cent per annum isMarks: 2+ 0.5-
2%
2.5%
3.75%
5%
7.5%
The Correct Answer is :
2.5%
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
27. A lent Rs. 6,000to B for 2 years and Rs. 1,500 to C for 4 years and received Altogether from
both Rs.900 as simple interest. The rate of interest isMarks: 2+ 0.54%
5%
8%
10%
12%
The Correct Answer is :
5%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter1
28. The simple interest on a sum will be Rs. 60,000 after 10 years. If the principal is Trebled
after 5 years, the total interest at the end of the tenth year will beMarks: 2+ 0.5Rs. 60,000
Rs. 90,000
Rs. 1,20,000
Rs. 1,50,000
None of the above.
The Correct Answer is :
Rs. 1,20,000
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
29. A person lends Rs. 10,000 in four parts. If he gets 8% on Rs. 2,000; 705% on Rs. 4,000 and
8.5% on Rs. 1,400; what per cent must he get for the remainder, if the average rate of interest
is 8.13%?
Marks: 2+ 0.56%
7%
9%
10%
12%
The Correct Answer is :
9%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter1
30. The simple interest on a sum of money @ 8% per annum for 6 years is half the sum. The
sum isMarks: 2+ 0.5Rs. 4,000
Rs. 4,800
Rs. 6,000
Rs. 8,000
Date inadequate
The Correct Answer is :
Date inadequate
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter1
31. 1 23. A certain sum of money at simple interest amount to Rs. 1,012 in 2--- 2 years and to
Rs. 1,067.20 in 4 years. The rate of interest per annum isMarks: 2+ 0.52%
2.5%
3%
4%
5%
The Correct Answer is :
4%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter1
32. The money which amounts to Rs. 9,261 in 3 years @ 5%p.a. compound interest is
Marks:
2+ 0.5-
Rs. 4,000
Rs. 6,000
Rs. 7,000
Rs. 8,000
Rs. 10,000
The Correct Answer is :
Rs. 8,000
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
33. The compound interest for 3 years @ 5% p.a. is Rs. 1,261 on a certain sum The principal is Marks:
2+ 0.5-
Rs. 8,000
Rs. 9,000
Rs. 10,000
Rs. 11,000
Rs. 12.000
The Correct Answer is :
Rs. 8,000
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
34. Simple interest on a sum at 4% p.a. for two years is Rs.800. The compound interest on the
same sum for the same period isMarks: 2+ 0.5Rs. 81.60
Rs. 816
Rs. 1,600
Rs. 1,816
Rs. None of the above.
The Correct Answer is :
Rs. 816
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter2
35. A sum amounts to Rs. 2,916 in 2 years and to Rs. 3,149.28 in 3 years at Compound interest.
The sum isMarks: 2+ 0.5Rs. 1,000
Rs. 1,500
Rs. 2,000
Rs. 2,500
Rs. 3,000
The Correct Answer is :
Rs. 2,500
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
36. A sum of money at compound interest amount to Rs. 10,648 in 3 years and Rs. 9,680 in 2
years. The rate of interest isMarks: 2+ 0.55%
10%
15%
20%
25%.
The Correct Answer is :
10%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
37. Rs. 400 at 5% p.a. compound interest will amount to Rs. 441 in-
Marks:
2+ 0.5-
1 year
2 years
3 years
4 years
5 years.
The Correct Answer is :
2 years
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
38. 20. What is the principal amount which earns Rs. 264 as compound interest for the second
year @ 10% p.a.?
Marks: 2+ 0.5Rs. 2,000
Rs. 2,200
Rs. 2,400
Rs. 2,600
Rs. 2,800.
The Correct Answer is :
Rs. 2,400
You did not answer the question.
Explanation :
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Module : Module A
Chapter : Chapter2
39. If Rs. 7,500 are borrowed at compound interest at the rate of 4% p.a. then after 2 years
the amount to be paid isMarks: 2+ 0.5Rs. 7,800
Rs. 8,082
Rs. 8,100
Rs. 8,112
Rs. 8,200
The Correct Answer is :
Rs. 8,112
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
40. If compound interest for 2 Years at the rate of 4% of some money is Rs. 102, find the
simple interest at the same rate for 2 years.
Marks: 2+ 0.5Rs. 108.16
Rs. 100
Rs. 110
Rs. 120
Rs. 130.
The Correct Answer is :
Rs. 100
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
41. What is the rate percent per annum if a sum doubles itself in 12 years at Compound rate of
interest?
Marks: 2+ 0.55.2%
5.4%
5.5%
5.8%
5.9%
The Correct Answer is :
5.9%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
42. If a sum of money trebles itself in 2 years at compound interest, then it will be 27 times of
itself inMarks: 2+ 0.55 years
6 years
12 years
15 years
18 years
The Correct Answer is :
6 years
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
43. The simple interest and compound interest of first year, are-
Marks:
2+ 0.5-
equal
unequal.
The Correct Answer is :
equal
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
44. When compound interest is calculated half yearly, then the period becomes-
Marks:
2+ 0.5-
half
double
one fourth
one tenth
None to the above.
The Correct Answer is :
double
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter2
45. If the true discount on a sum due 2 years hence @ 5% per annum be Rs. 300, then the sum
due is Marks: 2+ 0.5Rs. 3,000
Rs. 3,200
Rs. 3,300
Rs. 3,500
Rs. 3,600
The Correct Answer is :
Rs. 3,300
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
46. The present worth of Rs. 7,020 due in two equal half-yearly instalments @ 8%p.a. simple
interest is Marks: 2+ 0.5Rs 6,500
Rs. 6,625
Rs. 6,750
Rs. 7,000
Rs. 7,100
The Correct Answer is :
Rs. 6,625
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
47. The simple interest and the true discount on a certain sum for a given time and at a given
rate are Rs. 1000 and Rs. 80, respectively. The sum is Marks: 2+ 0.5Rs. 400
Rs. 800
Rs.1,00
Rs.2,000
None of the above.
The Correct Answer is :
Rs. 400
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
48. 4. A person buys a watch for Rs. 1,950 in cash and sells it for Rs. 2,200 on credit of 1 year.
If the rate of interes Is 10% he Marks: 2+ 0.5loses Rs. 50.
Loses Rs.30
Gains Rs.30
Gains Rs.50
Gains Rs.150.
The Correct Answer is :
Gains Rs.50
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
49. A has to pay Rs. 22,000 to B after 1 year. B asks A to pay Rs. 11,000 in cash Immediately
and defer the payment of Rs. 11,000 for 2 years. A agrees to it. Counting the rate of interest at
10% p.a. in this new mode of payment Marks: 2+ 0.5there is no gain or loss to any one
A gains Rs. 734
A loses Rs. 734
A gain Rs. 1,100
B gains Rs. 1,100.
The Correct Answer is :
A gains Rs. 734
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
50. A owes B Rs. 1,802 due 1 year hence. However, a wants to settle the account after 3
months. How much cash should he pay, if rate is 8% p.a.?
Marks: 2+ 0.5Rs. 1,700
Rs. 1,740
Rs. 1,750
Rs. 1,760
None of the above.
The Correct Answer is :
Rs. 1,700
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
51. You want to sell your fridge. There are two offers, one at cash payment of Rs. 16,200 and
another at a credit of Rs. 16,500 to be paid after 6 months. If money being worth 6.25% per
annum simple interest, which offer is better?
Marks: 2+ 0.5Both are equally good.
Rs. 16,200 in cash.
Rs 16,500 due 6 months hence.
The Correct Answer is :
Rs. 16,200 in cash.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
52. A person purchased a watch for Rs. 3,000 and sold it the same day for Rs,3,600 allowing
the buyer a credit of 9 years. If the rate of interest be 7.5% p.a. he has a gain of Marks: 2+
0.5-
4.5%
5%
5.5%
6%
6.5%
The Correct Answer is :
5%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
53. Goods were bought for Rs. 2,400 and sold the same day for Rs. 2,601 at credit of 9 months
and still there was a gain of 2%. The rate per cent is Marks: 2+ 0.51
1
1
1
1
The Correct Answer is :
1
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
54. The true discount on Rs. 9,300 due after a certain period at 5% p.a. is Rs. 300. The time
after which it is due, is Marks: 2+ 0.54 months
6 months
8 months
9 months
10 months
The Correct Answer is :
8 months
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
55. The true discount on Rs. 5,150 due 4 months hence is Rs. 150. The rate per cent is Marks:
2+ 0.5-
5%
6%
7%
8%
9%
The Correct Answer is :
9%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
56. 12. The true discount on a bill due 10 months hence @ 6% p.a is Rs. 2,625. TheAmount of
the bill is Marks: 2+ 0.5Rs. 50,000
Rs. 55,125
Rs. 65,000
Rs, 65,125
None of the above
The Correct Answer is :
Rs. 55,125
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
57. 13. Rs. 2,000 is the true discount on Rs. 26,000 due after a certain time. What will be the
true discount on the same sum due after half of the former time, the rate of interest being the
same?
Marks: 2+ 0.5Rs. 1,000
Rs. 1,040
Rs. 1,300
Rs. 1,400
Rs. 1,540
The Correct Answer is :
Rs. 1,040
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
58. 14. If Rs. 100 be allowed as true discount on a bill of Rs. 1,100 due at the end of a Certain
period, then the discount allowed on the same sum due at the end of double the time is Marks:
2+ 0.5-
Rs. 183.30
Rs. 200.00
Rs. 218.10
Rs. 222.00
Rs. 225.00
The Correct Answer is :
Rs. 183.30
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
59. A trader paid Rs. 700 to a lender due after 18 months at the rate of 8% p.a. simple interest.
The true discount is Marks: 2+ 0.5Rs.60
Rs.65
Rs.70
Rs. 75
Rs. 80
The Correct Answer is :
Rs. 75
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
60. Which expression does not represent true discount?
A-P
ART
PRT
ART
None of the above.
The Correct Answer is :
ART
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
61. True discount is equivalent to Interest
Principal amount
Amount
All of the above
None of the above.
The Correct Answer is :
Interest
You did not answer the question.
Explanation :
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Marks:
2+ 0.5-
Marks: 2+ 0.5-
Module : Module A
Chapter : Chapter3
62. Present value is equivalent to -
Marks:
2+ 0.5-
Interest
Principal amount
Amount
All of the above
None of the above.
The Correct Answer is :
Principal amount
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
63. If the true discount on Rs. 14,500 due after 5 years is Rs. 4,500 then the rate of true
discount will be Marks: 2+ 0.55%
6%
7%
8%t
9%
The Correct Answer is :
9%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
64. Write true of false - In case of simple interest, A * R * T True Discount = ----------------- 100
+ (R * T)
Marks: 2+ 0.5True
False
The Correct Answer is :
True
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
65. 21Banker's discount is calculated on -
Marks:
2+ 0.5-
Present value
Sum due
True discount
All of the above
The Correct Answer is :
Sum due
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
66. Banker's gain is Marks: 2+ 0.5Amount + Banker's Discount
Amount - Banker's Discount
Amount - Present Value
True Discount + Banker's Discount.
Banker's Discount - True Discount.
The Correct Answer is :
Banker's Discount - True Discount.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
67. 23. A bill of Rs. 2,000 id due 10 years hence at simple interest rate 5% p.a. Find Banker's
discount.
Marks: 2+ 0.5Rs. 200
Rs. 225
Rs. 300
Rs. 333.33
Rs. 1,000
The Correct Answer is :
Rs. 1,000
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
68. The banker's discount on a bill due 6 months hence at 6% p.a. is Rs. 370.80. The true
discount is Marks: 2+ 0.5Rs. 61.80
Rs. 123.60
Rs. 220.00
Rs. 360.00
Rs. 480.00
The Correct Answer is :
Rs. 360.00
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
69. The difference between banker's discount and true discount of a bill which is due after 6
months, is Rs. 75 at the rate of 5% p.a. Find out the-(a) True discount (b) banker's discount
and (c) value of the bill.
Marks: 2+ 0.5Rs. 3,075; Rs. 3,000; Rs.1,23,000
Rs. 2,075; Rs. 3,000; Rs. 2,13,000
Rs. 3,000; Rs. 3,075; Rs. 1,23,000
Rs. 2,500; Rs. 3,075; Rs. 3,12,000.
None of the above.
The Correct Answer is :
Rs. 3,000; Rs. 3,075; Rs. 1,23,000
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
70. The true discount on a bill of Rs. 5,400 is Rs. 900. The banker's discount will
Marks:
2+ 0.5-
Rs. 600
Rs. 1,110
Rs. 1,500
Rs. 1,800
Rs. 2,000.
The Correct Answer is :
Rs. 1,800
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
71. The present worth of a certain bill due sometime hence is Rs. 1,600 and the true discount is
Rs. 27. The banker's discount will
Marks: 2+ 0.5-
Rs. 68.76
Rs. 74
Rs. 75.24
Rs. 76
Rs. 77.
The Correct Answer is :
Rs. 75.24
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
72. The banker's gain on a sum due 3 years hence at 5% is Rs. 900. The banker's discount is Marks:
2+ 0.5-
Rs. 1,500
Rs. 6,900
Rs.7,20
Rs. 8,100
Rs. 8,200
The Correct Answer is :
Rs. 6,900
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
73. The banker's discount on a certain sum due 2 years hence is 11/10 of the true discount.
The rate per cent is Marks: 2+ 0.55%
5.33%
6%
10%
11%
The Correct Answer is :
5%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
74. The present worth of a sum due sometime hence is Rs.5,760 and the banker's gain is Rs.
10. The true discount is Marks: 2+ 0.5Rs. 160
Rs. 180
Rs. 240
Rs. 320
Rs. 400.
The Correct Answer is :
Rs. 240
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
75. The present worth of a certain sum due sometime hence is Rs. 16,000 and the true discount
is 1,600. The banker's gain is Marks: 2+ 0.5Rs. 100
Rs. 160
Rs. 200
Rs. 240
The Correct Answer is :
Rs. 160
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
76. The banker's gain of a certain sum due 2 years hence at 5% p.a. is Rs. 40. The Present
worth is Marks: 2+ 0.5Rs. 4,000
Rs. 4,400
Rs. 6,000
Rs. 8,000
Rs. 10,000
The Correct Answer is :
Rs. 4,000
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
77. A bill is discounted @ 5% p.a. If banker's discount be allowed, at what rate per cent must
the proceeds be invested, so that nothing may be lost?
Marks: 2+ 0.54%
5%
5
6%
7%.
The Correct Answer is :
5
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
78. The banker's discount on a sum of money for 1---- years is Rs. 600 and the true 2 discount
on the same sum for 2 years is Rs. 750. The rate per cent is Marks: 2+ 0.53%
1
4%
5%
1
The Correct Answer is :
1
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
79. The banker's gain of a certain sum of money is Rs. 72 and the true discount on the same
sum for the same time and at the same rate is Rs. 60. The sum is Marks: 2+ 0.5Rs. 280
Rs. 300
Rs. 320
Rs. 360
Rs. 600.
The Correct Answer is :
Rs. 360
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
80. The banker's discount on a bill due 1 years 8 months hence is Rs. 100 and the true discount
on the same sum at the same rate per cent is Rs. 90. the rate per cent is Marks: 2+ 0.55%
1
2
6%
2
The Correct Answer is :
2
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
81. The banker's discount on Rs. 800 at 6% is the same as the true discount for the same time
and at the same rate. The time is Marks: 2+ 0.52 months
3 months
4 months
5 months
6 months
The Correct Answer is :
3 months
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
82. The banker's gain on a bill due 1 year hence at 5% is Re. 1 The true discount is -
Marks:
2+
0.5-
Rs. 5
Rs. 10
Rs. 15
Rs. 20
Rs. 25.
The Correct Answer is :
Rs. 20
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter3
83. A person deposits Rs. 100 per month in a Recurring Deposit account carrying Simple
interest @ 6.5% Find the amount at the end of one year.
Marks: 2+ 0.5Rs. 1,200
Rs. 1,278
Rs.1,242.25
Rs. 1,300
None of the above.
The Correct Answer is :
Rs.1,242.25
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
84. Mr. A borrowed Rs. 10,400. He wants to pay this in two annual equal instalmets. The rate of
compound interest is 8% per annum. Find the amount of each instalment.
Marks: 2+ 0.5Rs. 2,916
Rs. 5,832
Rs. 5,200
Rs. 5,000
None of the above.
The Correct Answer is :
Rs. 5,832
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
85. A person wants to pay his loan of Rs. 2,522 payable in three equal annual Instalments. If
the rate of compound interest is 5% p.a.; find out the amount of each instalment
Marks: 2+ 0.5Rs 600
Rs. 650
Rs. 700
Rs. 750
Rs. 800.
The Correct Answer is :
Rs. 800.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
86. A lease of Rs.80,000 was taken on 1st January 2005 for 2 years. Calculate the Annuity
(Annual Depreciation) if rate of increase is 10% p.a.
Marks: 2+ 0.5Rs. 40,000
Rs.44,000
Rs. 46,000
Rs. 46,095.24
None of the above.
The Correct Answer is :
Rs. 46,095.24
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
87. A lease was taken for 3 years for Rs. 6,620 on 2st January, 2005. Depreciation Fund
method is used for depreciation. Calculate Annuity (Annual Depreciation) if annual rate of
depreciation is 10% p.a.
Marks: 2+ 0.5Rs. 1,900
Rs. 2,000
Rs. 2,100
Rs. 2,200
Rs. 2,300
The Correct Answer is :
Rs. 2,000
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
88. Shradha borrowed some money from a money-lender. She returns this in two Annual equal
instalments of Rs. 5,832 each. Find the sum, if the rate of compound interest is 8% p.a.
Marks:
2+ 0.5-
Rs. 5,832
Rs. 5,200
Rs. 11,664
Rs. 10,400
None of the above.
The Correct Answer is :
Rs. 10,400
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
89. A sum of money was borrowed the paid back in 2 annual instalments of Rs. 1,864 and
Rs1,740, respectively. If the rate of compound interest was 16% p.a. find out the sum
borrowed.
Marks: 2+ 0.5Rs.3,604
Rs.3,202
Rs. 2,900
Rs.2,700
Rs.2,000
The Correct Answer is :
Rs. 2,900
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
90. Calculate the amount of an annuity of Rs. 12,000 fir 15 years. Rate of interest is 1 4 --- p.a.
2
Marks: 2+ 0.5Rs. 2,49,912
Rs. 1,24,956
Rs. 1,00,000
Rs. 1,12,000
Rs. 1,60,000
The Correct Answer is :
Rs. 2,49,912
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
91. Calculate the present value of an annuity of Rs. 12,000 for 15 years. The rate 1of compound
interest is 4 - p.a. 2
Marks: 2+ 0.5Rs. 1,00,000
Rs. 1,20,000
Rs. 1,28,880
Rs. 2,57,760
Rs. 64,440.
The Correct Answer is :
Rs. 1,28,880
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
92. A woman retire at the age of 60 years and her employer gives her a pension of Rs. 12,000 a
year paid on half-yearly instalments for the rest of her life. Supposing her expectation of life to
be 13 years more and that interest is @ 4% p.a. payable half-yearly, what single sum is
equivalent to this pension?
Marks: 2+ 0.5Rs. 3,00,000
Rs. 2,50,000
Rs. 2,41,500
Rs. 1,20,750
None of the above.
The Correct Answer is :
Rs. 1,20,750
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
93. A man deposits Rs. 500 every six months into a bank which allows him 1 interest payable
quarterly at the rate of 2 ---% p.a. Find the sum which will 2 stand to his credit and the end of
10 years from his first payment.
Marks: 2+ 0.5Rs. 10,000 approx
Rs. 11,000 approx.
Rs. 12,000 approx.
Rs. 13,000 approx.
Rs. 14,000 approx.
The Correct Answer is :
Rs. 11,000 approx.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
94. A farmer could not pay annual instalments worth Rs. 800 each for four years. If a simple
rate of interest is calculated at the rate of 5% p.a., how much has he to pay now?
Marks: 2+ 0.5Rs. 3,200
Rs. 3,440
Rs. 3,640
Rs. 3,840
Rs. 4,040
The Correct Answer is :
Rs. 3,440
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
95. A person desires to create a endowment fund to provide for a prize of Rs.3,000 every pear.
If the fund can be invested at 10% per annum compound interest, find the amount of the
endowment.
Marks: 2+ 0.5Rs. 3,000
Rs. 6,000
Rs. 15,000
Rs. 20,000
Rs. 30,000
The Correct Answer is :
Rs. 30,000
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
96. My daughter is 5 years old. In order to provide a sum Rs. 1,00,000 when she Completes 21
years, I have decided to invest a fixed sum of money every year beginning immediately and the
last payment will be when she completes 21 years. Find the fixed sum of money assuming the
money earns compound interest at the rate of 8%p.a.
Marks: 2+ 0.5Rs 1,483 approx.
Rs.1,400 approx.
Rs.1,500 approx.
Rs. 2,966 approx.
Rs. 3,500 approx.
The Correct Answer is :
Rs. 2,966 approx.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
97. The rate of interest in a bank is 5% compounded annually. What should I invest per year to
get Rs. 6,00,00 at the end of 20 years?
Marks: 2+ 0.5Rs. 8,000 approx.
Rs. 9,073 approx.
Rs. 18,146 approx
Rs. 36,292 approx
Rs. 40,000 approx.
The Correct Answer is :
Rs. 18,146 approx
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
98. A firm has leased a leasehold property for 3 years on 1st January, 2005 for Rs.1,00,000 and
his decided to replace it by creating a depreciation fund. The rate of compound interest on
investments is 55 p.a. Calculate the annual depreciation (i.e. the amount to be invested).
Marks:
2+ 0.5-
Between Rs. 30,000 and Rs. 31,000
Between Rs. 31,000 and Rs. 32,000
Between Rs. 32,000 and Rs. 33,000
Between Rs. 33,000 and Rs. 34,000
Between Rs. 34,000 and Rs. 35,000
The Correct Answer is :
Between Rs. 31,000 and Rs. 32,000
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
99. A machine costs Rs. 5,00,000 and its effective life estimated to be 10 years Its scrap value
is Rs. 50,000. What amount should be retained out of profits at the and of each year to
accumulate at 5% p.a. with compound interest for 10 years to replace the machine by another
one costing Rs. 5,00,000?
Marks: 2+ 0.5Rs. 33,771
Rs. 34,771
Rs. 35,771
Rs. 36,771
Rs. 37,771
The Correct Answer is :
Rs. 35,771
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
100. what annual instalment will discharge a debt of Rs. 92,400 due in years at 5% simple
interest?
Marks: 2+ 0.5Rs. 20,000
Rs. 21,000
Rs. 22,000
Rs. 23,000
None of the above
The Correct Answer is :
Rs. 21,000
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
101. A certain sum @4% simple interest per annum becomes Rs.31,360 in 3 years.What will be
the amount of instalment per year to repay the loan in 3 years?
Marks: 2+ 0.5-
Rs.10,051 approx.
Rs.11,000 approx.
Rs.11,120 approx.
Rs.11,215 approx.
Rs.11,300 approx.
The Correct Answer is :
Rs.10,051 approx.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
102. A person borrowed Rs. 6,560 at 5% compound interest to repay in two equal Annual
instalments. Find the amount of each instalment.
Marks: 2+ 0.5Rs. 2,835
Rs., 3,285
Rs, 3,320
Rs. 3,528
Rs. 5,328.
The Correct Answer is :
Rs. 3,528
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
103. Neeta, Anita and Sunita are equal partners in a firm. They have agreed that in case of
death of anyone of them, an annuity in 10 annual equal instalments will be paid to he husband
carrying compound interest @ 10% p.a. Calculate the annuity to be paid to Sunitas husband
after her death if her capital is Rs. 6,00,000.
Marks: 2+ 0.5Rs. 79,406 approx
Rs. 97,640 approx
Rs. 64,697 approx
Rs. 97,460 approx
Rs. 60,497 approx.
The Correct Answer is :
Rs. 97,640 approx
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
104. Mr. A purchased a machinery from Mr. B on hire-purchase system, the cash price of which
is Rs. 1,00,000. Payment is to be made in 3 equal annual instalments including interest on the
unpaid balance @10% per annum. Each instalment is to be paid at the end of each year.
Calculate the amount of annual instalment.
Marks: 2+ 0.5Rs.33,333.33
Rs. 45,000
Rs. 66,666.67
Rs. 40,211.50
None of the above.
The Correct Answer is :
Rs. 40,211.50
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
105. A Washing machine worth Rs. 10,000 is purchased on instalment payment system under
which 10 equal annual instalments including interest at 10% p.a. are payable. Find the amount
of annual instalment.
Marks: 2+ 0.5-
Rs. 1,627.43
Rs. 1,000.00
Rs. 1,333.00
Rs. 1,225.00
Rs. 1,250.00
The Correct Answer is :
Rs. 1,627.43
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
106. A shopkeeper advertises the case price of a colour. T.V. as Rs. 8,500. The same T.V. can
also be purchased by paying Rs. 1,600 immediately and the balance in equal 8 instalments
monthly of Rs. 900 each. Find the rate of interest.
Marks: 2+ 0.55% p.a.
6%p.a.
8%p.a.
10%p.a.
12%p.a.
The Correct Answer is :
12%p.a.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
107. 25. A company has issued debentures for Rs. 1,000,00 on 1st January 2005 which are
redeemable on 31st December, 2008. The company has created Debenture Redemption fund for
the redemption of debentures at the end of the year. 10% annual interest will be received on
the investment. Calculate the annuity amount.
Marks: 2+ 0.5Rs. 17,547 approx.
Rs. 18,547 approx.
Rs. 21,547 approx.
Rs. 25,000 approx.
Rs. 25,200 approx.
The Correct Answer is :
Rs. 21,547 approx.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : Chapter4
108. The cost price of a Rs. 100 bond at a discount of 5%, when brokerage is --- %, will be Marks:
2+ 0.5-
Rs. 95
Rs. 100
Rs. 95 + --- = Rs. 95.25
Rs. 95 - -- = Rs. 94.75
Rs. None of the above. 1
The Correct Answer is :
Rs. 95 + --- = Rs. 95.25
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
109. The income derived from a 6 --- % bond at Rs. 95 is - 2
Rs. 1.50
Rs. 6.30
Rs. 6.50
Marks:
2+ 0.5-
Rs. 11.50
None of the above.
The Correct Answer is :
Rs. 6.50
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
110. 1 1 1 3. The case realized by selling a 5 --- % stock at 106 ---, brokerage being --- % is 2
44
Marks: 2+ 0.5Rs, 105.25
Rs. 105.75
Rs. 106.00
Rs. 106.25
None of the above.
The Correct Answer is :
Rs. 106.00
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
111. How much stock at Rs. 85 can be purchased for Rs. 1,360?
Marks:
2+ 0.5-
Rs. 1,360 stock
Rs. 1,400 stock
Rs. 1,560 stock
Rs. 1,600 stock
Rs. 1,660 stock.
The Correct Answer is :
Rs. 1,600 stock
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
112. The income from a 6% stock of Rs 18,360 is Rs. 720. Find the price stock of Rs. 100
Marks:
2+ 0.5-
Rs. 125
Rs. 130
Rs. 135
Rs. 150
Rs. 153.
The Correct Answer is :
Rs. 153.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
113. What income will be derived from Rs. 75,000 of 4 --- stock? 2
Rs. 3,357
Rs. 3,537
Rs. 3,573
Rs. 3,750
Rs. 3,375.
The Correct Answer is :
Rs. 3,375.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
Marks:
2+ 0.5-
114. What income can be be derived from an investment of Rs. 11,628 in the 6 --- % stock at
Rs. 153?
Marks: 2+ 0.5Rs. 722
Rs. 756
Rs. 345
Rs. 543
Rs. None of the above.
The Correct Answer is :
Rs. 722
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
115. By investing in 6% stock at 96, an income of Rs. 100 will be derived by making An
investment of Marks: 2+ 0.5Rs. 1,504
Rs. 1,600
Rs. 1,667
Rs. 3,200
Rs. 5,760.
The Correct Answer is :
Rs. 1,600
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
116. An investment of Rs. 12,000 in a stock quoted at 120 produces an income of Rs. 780. Find
780. Find the rate of interest.
Marks: 2+ 0.56.5%
7.8%
8.0%
8.3%
9%
The Correct Answer is :
7.8%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
117. To produce an annual income of Rs. 1,000 in a 4% stock at 90, the amount of stock
needed is Marks: 2+ 0.5Rs.22,500
Rs.25,000
Rs.27,500
Rs 36,000
Rs.40,000
The Correct Answer is :
Rs.25,000
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
118. A man invests in a 4.5% stock at 96. The interest obtained by him is 0.5%
1%
4%
Marks: 2+ 0.5-
4.5%
4.69%
The Correct Answer is :
4.69%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
119. By investing Rs. 3,300 in a 5.5% stock, a man earns Rs. 231. The stock is then quoted at Marks:
2+ 0.5-
Rs. 78
4
Rs. 93
3
Rs. 99
The Correct Answer is :
4
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
120. A invested some money in 4% stock at 96. B wants to invest in equally good 5% stock. B
must buy a stock worth Marks: 2+ 0.5rs. 77
Rs. 80
Rs. 100
Rs. 120
Rs. 125
The Correct Answer is :
Rs. 120
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
121. Shradha wants to purchase a 6% stock which must yield 5% on her capita. AtWhat price
must she buy the stock?
Marks: 2+ 0.5Rs. 100
Rs. 105
Rs. 110
Rs. 115
Rs. 120.
The Correct Answer is :
Rs. 120.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
122. Which is better investment - 3% stock at 81 or 4% stock at 135?
3% stock at 81
4% stock at 135
Both ate equally good
The Correct Answer is :
4% stock at 135
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
Marks:
2+ 0.5-
123. Which is better stock - 5% at 286 or 3.5% at 186?
Marks: 2+ 0.5-
5% at 286
3.5% at 186
Both are equally good.
The Correct Answer is :
3.5% at 186
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
124. 17. Which is better investment - 4% stock at par with an income-tax at 5% or 4.5% stock
at 110 free from income-tax.?
Marks: 2+ 0.54% stock at par
4.5% stock at 110
Both are equally good.
The Correct Answer is :
4.5% stock at 110
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
125. By investing in 3.75% stock at 96, Shubhra earns Rs. 1,000. The investment made is.
Marks:
2+ 0.5-
Rs. 9,600
Rs. 10,000
Rs. 25,600
Rs. 30,000
Rs. 48,000
The Correct Answer is :
Rs. 25,600
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
126. A man purchased 9,500 shares at Rs.12 per share in the open market; the face Value of
shares being Rs. 10. The company declared a dividend of 8%. What amount of dividend will he
receive?
Marks: 2+ 0.5Rs. 7,600
Rs. 9,120
Rs.10,000
Rs. 9,500
None of the above.
The Correct Answer is :
Rs. 7,600
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
127. A person purchased 40 shares of Rs. 50 each at a discount of 5%, the rate of dividend
being 4.75%. The rate of income on invested amount is Marks: 2+ 0.53.25%
4.25%
4.50%
4.75%
None of the above.
The Correct Answer is :
None of the above.
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
128. A man wants to buy Rs. 20 shares, the dividend being 9%. He wants to have an income of
12% on his investment. At what market price should he purchase each share.
Marks: 2+ 0.5Rs. 12
Rs.15
Rs. 18
Rs. 20
Rs.21.
The Correct Answer is :
Rs.15
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
129. A man invested Rs. 3,880 in a stock at 97 to obtain an income of Rs. 220. The rate of
dividend on stock is Marks: 2+ 0.525%
22.5%
15%
12%
5.5%
The Correct Answer is :
5.5%
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
130. Maya invested Rs. 8,910 in Rs. 10 shares quoted at Rs. 8.25. If the rate of Dividend is 6%,
her annual income is Marks: 2+ 0.5Rs. 208
Rs. 534
Rs. 648
Rs. 656
Rs. 700.
The Correct Answer is :
Rs. 648
You did not answer the question.
Explanation :
undefined
Module : Module A
Chapter : undefined
131. A woman invests some money partly in 4% stock at 120 an partly in 3% stock at 96. To
get equal dividends from both, she must invest the money in the ratioMarks: 2+ 0.51:2
2:3
3:4
4:5
15:16.
The Correct Answer is :
15:16.
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
132. Cash flow each year is equal to -
Marks:
2+ 0.5-
Accounting profit only
Accounting profit minus tax
Accounting profit minus tax plus depreciation
All of the above
None of the above.
The Correct Answer is :
Accounting profit minus tax plus depreciation
You did not answer the question.
Explanation :
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Chapter : undefined
133. Capital budgeting involves
Marks: 2+ 0.5Selection of projects for implementation
Estimation of cost benefit of projects
Generation of investment ideas
All of the above
None of the above.
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
134. Capital budgeting involves
Marks: 2+ 0.5Selection of projects for implementation
Estimation of cost benefit of projects
Generation of investment ideas
All of the above
None of the above.
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
135. Capital expenditure decisions involve those generating benefits for a period 0.5-
Exceeding one year
Exceeding two years
Exceeding five years
Exceeding ten years
None of the above.
The Correct Answer is :
Exceeding one year
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
136. Payback period is a applicable
Marks: 2+ 0.5In evaluating a single project
In evaluating mutually exclusive projects
In evaluating term loan proposals
In evaluating single project or mutually exclusive projects
None of the above.
The Correct Answer is :
In evaluating single project or mutually exclusive projects
You did not answer the question.
Explanation :
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Marks:
2+
Module : Module A
Chapter : undefined
137. While evaluating capital investment proposals, the time value of money is Considered in
case of Marks: 2+ 0.5Payback period method
Discounted cash flow method
Accounting rate of return method
All of the above
None of the above
The Correct Answer is :
Discounted cash flow method
You did not answer the question.
Explanation :
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Chapter : undefined
138. Depreciation is included in costs in case of Marks:
2+ 0.5-
Payback period method
Present value index method
Accounting rate of return method
All of the above.
None of the above.
The Correct Answer is :
Accounting rate of return method
You did not answer the question.
Explanation :
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Chapter : undefined
139. The return after the pay-off period is not considered in case of -
Marks:
2+ 0.5-
Payback method
Internal rate of return method
Present value index method
All of the above
None of the above
The Correct Answer is :
Payback method
You did not answer the question.
Explanation :
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Chapter : undefined
140. The cash inflows on account o operations are presumed to have been re-invested at the
cut-off rate in case of Marks: 2+ 0.5Payback method
Accounting rate of return method
Discounted cash flow method
All of the above.
None of the above.
The Correct Answer is :
Discounted cash flow method
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
141. Time value of money is considered under Marks:
Payback method
Accounting rate of return method
Internal rate of return method
2+ 0.5-
All of the above
None of the above.
The Correct Answer is :
Internal rate of return method
You did not answer the question.
Explanation :
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Chapter : undefined
142. The method of appraisal based on accounting projects rather than cash flows is Marks:
2+ 0.5-
Payback period
Average rate of return
Discounted payback period
Benefit-cost-ratio.
None of the above
The Correct Answer is :
Average rate of return
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
143. Ranking of projects under NPV and IRR may differ if the period of life of the projects is different
the timing of the cash flows is different
either (i) or (ii) is present
both (i) and (ii) are present
None of the above.
The Correct Answer is :
either (i) or (ii) is present
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
144. Internal rate of return is the rate at which Marks:
Marks:
2+ 0.5-
2+ 0.5-
the net present value is nil
the net present value is positive
the discount rate equals the firm's net profit rate
the income generated by the project meets the cost of the funds
None of the above
The Correct Answer is :
the net present value is nil
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
145. Which one of the following statement is true?
Marks: 2+ 0.5The working capital released on the termination of a project is not cash
Depreciation on asset is included in cost in computing discounted cash
Increase in working capital due to investment proposal is included in
Cost of investment in the new plant is the cost of new plant plus the
Between two mutually exclusive projects, that one should be preferred
The Correct Answer is :
Increase in working capital due to investment proposal is included in
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
146. Which one of the following statement is true?
Marks: 2+ 0.5-
The internal rate of return and net present value are synonymous terms.
Cash flows from a project can be estimated accurately.
The inflation and deflation factors need not be taken into account while estimating future
cash inflows since it is difficult to predict future price changes.
Cash flows from a project can be worked out only on the basics of certain probabilities
No additional working capital is required in case of an expansion of an existing project.
The Correct Answer is :
Cash flows from a project can be worked out only on the basics of
certain probabilities
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
147. Which one of the following statements is false?
Marks: 2+ 0.5Discounted cash flow technique takes into account the time value of money.
Depreciation is considered while calculating the return on a project according to the
Accounting Rate of Return Method.
Internal Rate of Return determines the maximum rate of interest that a firm can afford to
pay on the borrowings for the particular project.
Tax concessions have no role to play in estimating the cash flows from a project
All of the above.
The Correct Answer is :
Tax concessions have no role to play in estimating the cash flows
from a project
You did not answer the question.
Explanation :
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Chapter : undefined
148. Which one of the following statements is false?
Marks: 2+ 0.5NPV and profitability index always yield identical results.
Profitability index is also known as benefit-cost ratio.
Payback method disregards cash flows after the payback period
Mathematical techniques and available for dealing with risk and uncertainty factors involved
in determining future cash inflows from a project.
Depreciation is not a source of cash inflow.
The Correct Answer is :
NPV and profitability index always yield identical results.
You did not answer the question.
Explanation :
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Chapter : undefined
149. Profitability Index is also known asMarks: 2+ 0.5Benefit-cost-ratio
Desirability fact or
Both (i) and (ii)
All of the above
None of the above.
The Correct Answer is :
Both (i) and (ii)
You did not answer the question.
Explanation :
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Chapter : undefined
150. A machine costs Rs. 5,00,000 and would fetch Rs. 2,50,000 in the first year; Rs.1,50,000
in second year and Rs. 1,00,000 in third year. Payback period would beMarks: 2+ 0.51 year
2 years
1
3 years
1
The Correct Answer is :
3 years
You did not answer the question.
Explanation :
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Chapter : undefined
151. The economic life of a plant is 8 years and its cost is Rs. 10,00,000. Annual savings (cash
inflow) is Rs.2,00,000. Post payback profit would be Marks: 2+ 0.5Rs. 2,00,000
Rs. 3,00,000
Rs.4,00,000
Rs. 6,00,000
Rs. 8,00,000
The Correct Answer is :
Rs. 6,00,000
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
152. The total flows of a plant after tax but before depreciation for 5 years are Rs. 45,800 and
total depreciation amounts to Rs.32,000.Initial investment in the plant is Rs. 30,000. The
average rate of return would be Marks: 2+ 0.56.3%
9.2%
18.4%
20%
22%
The Correct Answer is :
18.4%
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
153. Which one of the following is a 'false' statement?
Marks:
2+ 0.5-
Depreciation is a part of the operating cost.
Depreciation is provided to know the correct profit
Depreciation is a fall in the value of fixed assets.
Fall in the market price is the main cause of depreciation.
Depreciation is shown in debit side of Profit & Loss a/c.
The Correct Answer is :
Fall in the market price is the main cause of depreciation.
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
154. Depreciation arises because of Marks: 2+ 0.5Fall in the value of money.
Fall in the market value of a fixed asset.
Fall in the utility of a fixed asset.
Fall in the value of a fixed asset owing to wear and tear
None of the above.
The Correct Answer is :
Fall in the value of a fixed asset owing to wear and tear
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
155. The main objective of providing depreciation is-
Marks:
2+ 0.5-
to reduce tax burden
To calculate true profits
To show true financial position
To provide funds of replacement of fixed assets.
All of the above.
The Correct Answer is :
All of the above.
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
156. Depreciation is the process of Marks: 2+ 0.5Valuation of a fixed asset
Apportionment of the cost of the fixed asset over its useful life
Maintenance of asset in a state of efficiency
All of the above
None of the above.
The Correct Answer is :
Apportionment of the cost of the fixed asset over its useful life
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
157. Under the straight line method of depreciation, amount of depreciation Marks: 2+ 0.5increases every year
decreases every year
is constant every year
increases for some years
None of the above.
The Correct Answer is :
is constant every year
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
158. Under the diminishing balance method, depreciation is calculated on the original cost.
The written down value
The scrap value
The market value
None of the above.
The Correct Answer is :
The written down value
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
159. Under the diminishing balance method of depreciation-
Marks:
Marks:
2+ 0.5-
The amount on which depreciation is calculated, is reduced from year to year
the rate % declines from year to year
the rate % as well as amount reduces every year
2+ 0.5-
All of the above.
None of the above
The Correct Answer is :
The amount on which depreciation is calculated, is reduced from year
to year
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
160. The amount of depreciation charged on machinery will be credited to Marks: 2+ 0.5Machinery a/c
Depreciation a/c
Cash a/c
P & L a/c
None of the above.
The Correct Answer is :
Machinery a/c
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
161. Machine Hour Rate Method of providing depreciation is useful when -
Marks:
2+ 0.5-
output can be effectively measured
utility of the machine can be directly related to its productive use
use of the machine can be measured in terms of time
All of the above
None of the above
The Correct Answer is :
use of the machine can be measured in terms of time
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
162. In case of Annuity Method of depreciation Marks: 2+ 0.5increases every year
decreases every year
remains constant every year
All of the above
None of the above
The Correct Answer is :
remains constant every year
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
163. For providing depreciation on leasehold property, the appropriate method of depreciation
is Marks: 2+ 0.5Fixed Instalment Method
Written Down Value Method
Revaluation Method
Replacement Method
None of the above.
The Correct Answer is :
Fixed Instalment Method
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
164. Depletion Method of depreciation is used in -
Marks:
2+ 0.5-
Machinery, Building, Furniture, etc.
Cattle
Loose tools, etc.
Mines, Quarries, etc.
None of the above.
The Correct Answer is :
Mines, Quarries, etc.
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
165. Depreciation is charged by allocating depreciable cost in proportion of the annual output
to the probable life-time output under the Marks: 2+ 0.5Working Hours Method
Production Units Method
Valuation Method
All of the above
None of the above
The Correct Answer is :
Production Units Method
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
166. 14. A machinery worth Rs. One lakh with expected life of 10 years is purchased. The
depreciation on it is charged equally every year. The method of depreciation is Marks: 2+ 0.5Straight Line Method
Written Down Value Method
Sinking Fund Method
Annuity Method
Insurance Policy Method
The Correct Answer is :
Straight Line Method
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
167. The interest lost on the acquisition of an asset is taken into account in calculating the
amount of depreciation in Marks: 2+ 0.5Straight Line Method
Revaluation Method
Diminishing Balance Method
Depletion Method
Annuity Method
The Correct Answer is :
Diminishing Balance Method
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
168. On a machinery, depreciation @ 10% is Rs. 30,000 for the first year, Rs. 27,000 for the
second year. What will be amount of depreciation for the third year?
Marks: 2+ 0.5Rs. 30,000
Rs. 24,300
Rs. 20,400
Rs. 22,600
Rs. 27,000.
The Correct Answer is :
Rs. 24,300
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
169. Mr. A purchased a second hand machinery for Rs. 80,000 on 1st April 2001 and spent Rs.
35,000 on its over-hauling and installation. Depreciation is charged @ 10% on original cost. On
30th June 2004, the machinery was sold off for Rs. 65,000. What is the amount of loss to the
written of, presuming the accounting ear ends on 31st March every year?
Marks: 2+ 0.5Rs. 15,500
Rs. 12,625
Rs. 13,095
Rs. 13,505
None of the above
The Correct Answer is :
Rs. 12,625
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
170. Mr. X purchased a machine worth Rs. 2,00,000 on 1st January 2002. The machine is
depreciated at 10% p.a.; on original cost. One 1st July 2004, the machinery was sold for Rs.
1,20,000. What is the amount of loss to be written off, assuming that the books are closed on
31st December.
Marks: 2+ 0.5Rs. 25,000
Rs. 30,000
Rs. 35,000
Rs. 40,000
Rs. 45,000
The Correct Answer is :
Rs. 30,000
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
171. A company purchased a car for Rs. 2,00,000 on 1st January 2003. Depreciation is charged
at 20% p.a. under written down value method. The car was sold on 1st July 2004 for Rs.
1,60,000. calculated the amount Profit/loss on the sale of the car.
Marks: 2+ 0.5(-) Rs. 10,000
(-) Rs. 12,000
Rs. 14,000
Rs. 16,000
Rs. 18,000
The Correct Answer is :
Rs. 16,000
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
172. On 1st January 2002, Mr. X purchased a plant costing Rs. 82,000 and spent Rs. 8,000 in its
erection. The estimated effective life of the plant is 10 years, its scrap value being Rs. 10,000.
What will be the depreciation value at the end of the 3rd year, under straight line method?
Accounts are closed on 31st December each year;
Marks: 2+ 0.5Rs. 81,000
Rs. 72,000
Rs. 56,000
Rs. 70,000
Rs. 60,000
The Correct Answer is :
Rs. 56,000
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
173. A firm purchased a machine for Rs. 5,00,000 on 1st April 2004, Its estimated effective life
is 5 years at the end of which it will have a scrap value of Rs. 1,40,000. What will be the
amount of depreciation each year if charged under straight line method/
Marks: 2+ 0.5Rs. 60000
Rs. 72,000
Rs. 80,000
Rs. 1,00,000
Rs. 1,20,000.
The Correct Answer is :
Rs. 72,000
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
174. On 1st January 2002, a firm purchased machinery worth Rs., 1 lakh, and on 1st July 2004,
it buys additional machinery worth Rs. 20,000 and spends Rs. 2,000 and spends Rs. 2,000 on
its erection. Annual depreciation is 10% on straight line method. What will be written down
value at the end of 5th year?
Marks: 2+ 0.5Rs. 66,000
Rs. 66,500
Rs. 90,000
Rs. 50,000
Rs. 1,00,000
The Correct Answer is :
Rs. 66,500
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
175. Mr. X Purchased a machinery for Rs. 1 lakh, its effective life being 5 years and scrap value
at the end of 5 years Rs. 10,000. The machinery is sold at the end of 3rd year for Rs. 45,000. If
depreciation is charged on straight line method, what is the profit/loss on this sale?
Marks: 2+
0.5-
Profit Rs. 36,000
Profit Rs. 18,000
Profit Rs. 1,000
Loss Rs. 1,000
Loss Rs. 18,000
The Correct Answer is :
Loss Rs. 1,000
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
176. A firm purchased a machinery worth Rs. 2,05,000 and spent Rs. 20,000 on its installation.
Its effective useful life is estimated at 10 years and scrap value Rs. 25,000. What will be the
depreciated value at the end of 3rd year under straight line method?
Marks: 2+ 0.5Rs. 2,25,000
Rs. 60,000
Rs. 1,65,000
Rs. 45,000
Rs. 55,000
The Correct Answer is :
Rs. 1,65,000
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
177. ............... is maintained for known liabilities.
Provision
Reserve
Reserve Fund
Capital Reserve
All of the above.
The Correct Answer is :
Provision
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
178. Provision is also known as Marks:
Marks:
2+ 0.5-
2+ 0.5-
Capital Reserve
Contingency Reserve
Reserve Fund
Specific Reserv
None of the above.
The Correct Answer is :
Specific Reserv
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
179. ..................... is created for unknown liability.
Marks:
2+ 0.5-
Provision for depreciation
Provision for bad and doubtful debts.
Provision for taxation
General Reserve
None of the above
The Correct Answer is :
General Reserve
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
180. Profit or Loss on Depreciation fund Investment is transferred to Profit & Loss a/c
Fixed Asset a/c
Depreciation Fund a/c
General Reserve
Capital Reserve.
The Correct Answer is :
Depreciation Fund a/c
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
Marks:
2+ 0.5-
181. The profit on depreciation policy is transferred to Profit & Loss a/c
Fixed Asset a/c
Insurance Policy a/c
Depreciation Reserve
Capital Reserve.
The Correct Answer is :
Depreciation Reserve
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
182. Depreciable assets are the assets which -
Marks:
2+ 0.5-
Marks: 2+ 0.5-
Have a limited useful life
are held by the enterprise for use in the production or supply of goods an services
are expected to be used during more than one accounting period
All of the above
None of the above.
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
183. The appropriate method of depreciation in the case of livestock is Marks: 2+ 0.5Straight Line Method
Diminishing Balance Method
Depletion Method
Appraisal Method
Retirement Method
The Correct Answer is :
Appraisal Method
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
184. Which of the following factors has a bearing on the useful life a fixed asset?
Physical wear and tear
Obsolescence
Legal or other limits on the use of the asset
(i) & (ii)
All of the above.
The Correct Answer is :
All of the above.
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
185. The economic factors causing depreciation, are depletion
wear and tear
effluxion of time
obsolescence and inadequacy
All of the above.
The Correct Answer is :
obsolescence and inadequacy
You did not answer the question.
Marks:
2+ 0.5-
Marks:
2+ 0.5-
Explanation :
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Module : Module A
Chapter : undefined
186. Which one of the following assets does not require provision for depreciation
Marks:
2+
0.5-
Land
Leased assets
Livestock
Loose tools
All of the above.
The Correct Answer is :
Land
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
187. Accountants prefer to use the historic cost rather then any other cost for computing
depreciation, because of the accounting convention of Marks: 2+ 0.5Consistency
Conservatism
Cost
Disclosure
Matching.
The Correct Answer is :
Cost
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
188. accelerated methods of depreciation are favoured because of -
Marks: 2+ 0.5-
the provisions in the Companies Act
considerable, saving in taxes
the possibility of raising more resources for replacement of assets
the fact that assets are more productive in earlier years rather than in the later years.
None of the above
The Correct Answer is :
the fact that assets are more productive in earlier years rather than
in the later years.
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
189. Which one of the following statements is 'true'
Marks: 2+ 0.5the term 'depreciation', 'depletion' and 'amortization' refer to one and the same thing.
No method of depreciation accurately calculates the charge to be made in respect of the
asset.
Depreciation base refers to the amount on which the rate of depreciation is applied for
computing the amount of depreciation.
The total amount of depreciation to be allocated over the useful like of the asset is the
difference between the total acquisition cost and the replacement value.
The total amount of depreciation to be written off over the life of an asset is equal to the cost
of the asset plus its depreciation.
The Correct Answer is :
No method of depreciation accurately calculates the charge to be
made in respect of the asset.
You did not answer the question.
Explanation :
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Module : Module A
Chapter : undefined
=================
190. Accounting is the language of
Business
Statistics
Investment
Industry
None of the above
The Correct Answer is :
Business
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
191. The word book keeping denotes
Marks:
2+ 0.5-
Marks:
2+ 0.5-
Art of recording business dealings in books
Keeping of books of account
Maintaining stock of books for sale purchase
All of the above
None of the above
The Correct Answer is :
Art of recording business dealings in books
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
192. The objective of book Keeping is
Marks: 2+ 0.5To know the profit and loss in the business
To know the assets and liabilities in the business
To know the deptors and creditors in the business
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
193. The prime function of Accounting is to
Marks: 2+ 0.5Record business transactions
Record qualities of the business man
Record and classify business transaction
Provide the informational basis for action
None of the apve
The Correct Answer is :
Record and classify business transaction
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
194. Kautilya wrote book on
Marks: 2+ 0.5Accounting
Economics
Statistics
Palmistry
None of the above
The Correct Answer is :
Economics
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
195. The modern concept of book-keeping and accounting was given by
Marks: 2+ 0.5-
Bhaskaracharya
Luca De Bargo Pacioli
Shukla& Grewal
Pickle
None of the books
The Correct Answer is :
Luca De Bargo Pacioli
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
196. Management Accounting provides services to the management in performing
Marks:
2+
0.5-
Co _ Ordinating management funtions
Controlling funtions
All management function
Communication functions
None of the above
The Correct Answer is :
All management function
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
197. In India accounting provides services to the management in performing
Marks:
Government of India
Board of direct Taxes
Accounting Association
Accounting standards Board
All of the above
The Correct Answer is :
Accounting standards Board
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
198. Accounting standard 6 deals with
Marks: 2+ 0.5Constucture cortract
Revenue Recorgnition
Fixed Assets
Depreication
Government grant
The Correct Answer is :
Depreication
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
199. The Accounting standatd for dislosure of Accounting policeis is
No.1
Marks:
2+ 0.5-
2+ 0.5-
No.2
No.3
No.4
No.5
The Correct Answer is :
No.1
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
200. Compliance with accounting standards is the duty of the
Employees
Board of directors
Accountant
Cashier
Auditor
The Correct Answer is :
Auditor
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
201. The abbroviation GAAB stands for
Marks:
Marks:
2+ 0.5-
Generally Accepted Accountiong Policies
Generally Accepted Accountiong practice
Generally Accepted Accountiong principles
Generally Accected and audio procedures
None of the above
The Correct Answer is :
Generally Accepted Accountiong principles
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
202. Prior Period income should be
Marks: 2+ 0.5inclusive determination of current profits
excluded for determination of current profits
shown in P&Lo a/c ofthe current year
(i)of (ii) above
(i) ( iiiO above
The Correct Answer is :
(i) ( iiiO above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
203. Accounting principles are generally based on
Subjectivity
Practicability
Convenience in recording
Imagination
None of the above
The Correct Answer is :
Practicability
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
Marks:
2+ 0.5-
2+ 0.5-
204. The sustem of recording business transactuibs based on dual aspect concept is called
Marks:
2+ 0.5-
Single entry sustem
Double entry system
Double accout system
All of the abvoe
none of the abvoe
The Correct Answer is :
Double entry system
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
205. The concvention of conservatio is applicatble
Marks:
2+ 0.5-
In provioding for depreciation
In providing for discount on debtors
In providing for discount on deptors
In making provision for bad and doubtful depts
In provididng for taxation
The Correct Answer is :
In making provision for bad and doubtful depts
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
206. Under the money measurement concept the following will be recorded in the books of
account of the busuiness Marks: 2+ 0.5Vawlue of furniture
Quality of companys goods
Bad heaslth of managing director
All of the above
None of the abvoe
The Correct Answer is :
Vawlue of furniture
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
207. Compliance of accounting standartds is the duty of
Marks: 2+ 0.5-
Board of Directors
Auditor
Company secretary
Central Government
None of the abvoe
The Correct Answer is :
Auditor
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
208. the concept of conservations when applied to Balance sheet results in
Understatement of assets
Overstandment of liabilities
Underestatement of liability
Overstatement of assets
Overstatement of cpital
The Correct Answer is :
Understatement of assets
Marks: 2+ 0.5-
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
209. The practie of appendintg neptes regarding contingent liabilitaeis in accounting
statements is in pursuance to
Marks: 2+ 0.5Convention of disclosure
Convention of conservatism
Concept of money measurement
Concept of mone
Concern of accouting period
The Correct Answer is :
Convention of disclosure
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
210. Recoding business transactions on the basis of documents is to opserve the accountion
assumption of
Marks: 2+ 0.5Accouting cquity
Going concern
Money ,measurement
Verifiable pbjective
Accounting period
The Correct Answer is :
Verifiable pbjective
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
211. Treatment of capital as liability opserves the accounting assumpting of
busuness
Revenue realisation
full disclosure
historical cost principle
materality
The Correct Answer is :
busuness
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
212. Accounting period consists oif
Marks:
2+ 0.5-
12months
24months
36months
48months
60months
The Correct Answer is :
12months
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
213. In construction work revenue is identified on the basis of
sales
Marks: 2+ 0.5-
Marks:
2+ 0.5-
cash received
balanced due
work completed
none of the abvoe
The Correct Answer is :
work completed
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
214. Accounting to the principles of matching cost and revenur income of a business can sbe
ascertaineed by
Marks: 2+ 0.5Total recreiveed
Total. pauments
matching total sales and purchases
matching revenue dwith the cost of the business
all of the books
The Correct Answer is :
matching revenue dwith the cost of the business
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
215. According to the concept of conservatism the stock in trade is valued at
Marks:
2+ 0.5-
cost price
market price
cost of market price whicheverr is lower cost or markert price whichevert islower
cost of market price whicheverr is lower cost or markert price whichevert is higher
none of the above
The Correct Answer is :
cost of market price whicheverr is lower cost or markert price
whichevert islower
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
216. The following convention cosiders the qualities and disqualitie s of genetal menager
Marks:
2+ 0.5-
conven tion of coservatism
convention of feasibility
convention of materialit
all of the above
none of the above
The Correct Answer is :
conven tion of coservatism
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
217. he concept of conservatism takes into account
all future lossed but leaves all future profits
all future proits but leaves all future losseS
all future profits and all future lossed
all of he above
none of the above
The Correct Answer is :
none of the above
You did not answer the question.
Marks:
2+ 0.5-
Explanation :
undefined
Module : Module B
Chapter : Chapter1
218. The policy of anticipate no profit and provide for the possible lossed arises due to
Marks:
2+ 0.5-
convention disclosure
convention of materialism
convention of consistecy
convention of feasibility
convention of conservation
The Correct Answer is :
convention of feasibility
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
219. Non financial information is not recorded in accounts to
Marks:
1+ 0.25-
accural concept
entity concept
dual aspect concept
meoney measurement concept
none of the above
The Correct Answer is :
meoney measurement concept
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
220. According to the concept of money meaurement the following will not be recording in the
ooks of accounts
Marks: 2+ 0.5simplicity of the general management
deathe of the general manager
(i) and (ii) both
gratuaitay paid to hte general managers wife after his dearth
pension paid to the general managers wife after his death
The Correct Answer is :
(i) and (ii) both
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
221. According to the concept of going concern a business is presumed to have
a limited life
a long life
a definite life
an indefinite life
none of the above
The Correct Answer is :
a long life
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
222. Realisation concept miplies realisation of revenure at
the reciept of the order
the delivery of goods
Marks:
2+ 0.5-
Marks:
2+ 0.5-
the reciept of cash from the customert
the cancellation of an ofder
all of the abvoe
The Correct Answer is :
the delivery of goods
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
223. The concern concept according to which a fact or happining which canot be expressed in
terms of money is not recorded in the accounting books is callled
Marks: 2+ 0.5cost concept
matching concept
realisation concept
money measurement concept
accounting period concept
The Correct Answer is :
money measurement concept
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
224. Profit represents excess of receipts over expenditure in
Marks:
2+ 0.5-
mercantile system of accounting
cash system of accounting
hybrid system of accounting
all tof the above
none of the above
The Correct Answer is :
cash system of accounting
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
225. income and expenses are recognised as and when they are due irrestective of their actual
reciept payment in
Marks: 2+ 0.5mercantile system of accounting
cash system of accounting
hybrid system of accounting
all of the above
none or the above
The Correct Answer is :
mercantile system of accounting
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
226. Point out the correct accounting equation
Marks: 2+ 0.5capital =Assets+Liabilities
Assets =Capital +liabilities
Assets= Capital _liabililties
Liabilities =Assets +capital
Capital =caprtal -Assets
The Correct Answer is :
Assets =Capital +liabilities
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
227. Ponit out the incorrect accounting equation
Marks:
2+ 0.5-
capital =assets -liabilities
assets =capital +liabiliteis
liabilities =assets +capital
assets = liabilities +capital
all of the abvoe
The Correct Answer is :
liabilities =assets +capital
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
228. Purchase of a T.V set for the propreitor will
Marks:
2+ 0.5-
increase assets and decrease capital
increase capital and decrease assets
increase assets and increas capital
decrease assets and decrease capital
none of the above
The Correct Answer is :
decrease assets and decrease capital
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
229. calculate groes income from the following information sales Rs 2,00,000sales Rs
4,000opening stock Rs 20,000pruchases 1,20,000purchase retures 2,000wages 14,000frieght
6,000salaries 40,000closing stock 24,000
Marks: 2+ 0.5Rs 60,000
Rs 78,000
Rs 1,34,000
Rs 62,000
Rs 1,96,000
The Correct Answer is :
Rs 62,000
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
230. calculate -(a) cost of goods sosd (b) gross profit and (c) bet profit frim the following
igures opening Rs 40,000purchases Rs 2,00,000purchases returns Rs 20,000direct expenses Rs
30,000]closing stock Rs 20,000indirect expenses RS 20,000sales Rs 2,50,000sales returns
10,000
Marks: 2+ 0.5Rs 2, 30,000 Rs 10,000 Rs 5,000
Rs 2,30,000 Rs 5,000: Rs 10,000
Rs 2,30,000 Rs 10,000 (-) Rs 10,000
Rs 2,10,000 Rs 10,000 Rs 5,000
Rs 2,10,000 Rs 5,000 Rs 10,000
The Correct Answer is :
Rs 2,30,000 Rs 10,000 (-) Rs 10,000
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
231. sales during the year is Rs 1,00,000 grosss profits is 25% on cost find out the amount of
gross profit
Marks: 2+ 0.5-
Rs 20,000
Rs 25000
Rs 30,000
Rs 33,000
Rs 40,000
The Correct Answer is :
Rs 20,000
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
232. calculate sales if cost of sales is Rs 1,60,000 and the gross loss is Rs 68,00
Marks:
2+ 0.5-
Rs 2,28,000
Rs 92,000
Rs 2,52,00
RS 1,42,000
none of the abvoe
The Correct Answer is :
Rs 92,000
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
233. find out net profit from the following figares cash sale = Rs 70,000credit sales =RS
80,000cost of goods =Rs 1,04,000selling expenses =Rs 13,400
Marks: 2+ 0.5(-) ?Rs .34,000
(-) rs 24,000
Rs 32,600
RS 46,000
none of the books
The Correct Answer is :
Rs 32,600
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
234. what will be the capital of the propeitor if his her assets are Rs 1,90,00 and liabilities Rs
1,25,000
Marks: 2+ 0.5Rs 0,000
Rs 65,000
RS 75,000
Rs 1,90,000
none of the books
The Correct Answer is :
Rs 65,000
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
235. Revenue is said to be realised
Marks:
2+ 0.5-
when sales are made
when goods are manufacturd
when order is recieved
when cash is recieved
when tenders are invited
The Correct Answer is :
when sales are made
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
236. The term Expense;denotes
Marks:
2+ 0.5-
cost of services and things used for generating revenue
payment or the icurings of a dept for an asset
cost which fails to proece revenue
all of the above
none of theabove
The Correct Answer is :
cost of services and things used for generating revenue
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
237. in case of traditional approach the expense to be matched with revenue is based on
Marks:
2+ 0.5-
original cost
cast cost
replacement cost
all of the abvoe
none of the abvoe
The Correct Answer is :
original cost
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
238. In case of gold and silver revenue is recognised in the accounting period in which it is
Marks:
2+ 0.5-
sold
deliverred
mined
all of the above
none of the abvoe
The Correct Answer is :
mined
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
239. in long term contracsts revenur is generall y recognised
Marks:
2+ 0.5-
only onm full compleetion of the contract
even when a part of the contract has been colmpleted
only when full cash is receivced
when contract is signed
none of the above
The Correct Answer is :
even when a part of the contract has been colmpleted
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
240. which one of the following statement is true?
Marks: 2+ 0.5matching concept requires that revenur should always be equal to the expenditure
the mercanntile system of accoucting is acceptable only for trader
hybrid system of accounting is not permitted as per income tax law in india
going concern concept assumes that the firm is making
the cost of self constructed fixed assets should be treated as revenue expenditure
The Correct Answer is :
hybrid system of accounting is not permitted as per income tax law
in india
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
241. which one of the following statement is false?
Marks: 2+ 0.5the accounting principle followed for financiall accounting are not applicaable for
manbagement accounting
the selection of a specific accounting policy is left to the discretion of the firm, concerned
according to AS 4 cintingeney profits should not e recognised in financial stqatement
AS 1 is regarding disclosing disclosure of accounting pllicies
As 10 is regarding according accounting for fixed asseerts
The Correct Answer is :
the accounting principle followed for financiall accounting are not
applicaable for manbagement accounting
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter1
242. the accounting period concept states that
Marks: 2+ 0.5accounting year should be the same as financial years
the accounting period can be only one year
the accounting period should be the calender year
the accounting period should be different from the calender year
none of the above
The Correct Answer is :
none of the above
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter1
243. In book-keeping , the transactions are recorded under .....types of accounts
Two
Three
Four
Five
Six
The Correct Answer is :
Three
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter2
244. Sales book is maintained to record -
Marks:
2+ 0.5-
all sales (cahs and credit)
all cash sales of goods only
all credit sales of goods only
All of the above
None of the above
The Correct Answer is :
all credit sales of goods only
You did not answer the question.
Explanation :
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Marks:
2+ 0.5-
Module : Module B
Chapter : Chapter2
245. The periodic total of the sales book is posted to the
Marks:
2+ 0.5-
Debit of Sales Account
Credit of Sales Account
Debit of Cash Account
Credit of Cash Account
None of the above
The Correct Answer is :
Credit of Sales Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
246. Sales Account in ledger recordsMarks: 2+ 0.5Only cash sales of merchandise
Only credit sales of merchandise
Both cash and credit sales of merchandise
Only credit sale of old assets
All of the above.
The Correct Answer is :
Both cash and credit sales of merchandise
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter2
247. Withdrawals by propritor would Marks: 2+ 0.5reduce liabilities and increase assets
reduce assets and increase liabilities
reduce both the assets and owner's equity
reduce owner's equity and increase laibilities
None of the above.
The Correct Answer is :
reduce both the assets and owner's equity
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter2
248. Returns Inward Book is maintained to record Marks: 2+ 0.5Return of goods purchased
Return of goods sold
Return of old assets sold
Return of anything purchased
Return of anything sold.
The Correct Answer is :
Return of goods sold
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter2
249. Returns Outward Book is maintained to record Return of goos pruchases
Return of goods sold
Return of old assets sold
Return of anything purchased
Return of anything sold
The Correct Answer is :
Return of goos pruchases
Marks:
2+ 0.5-
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
250. Returns Outward Book is mainteained to recordReturn of goods purchased
Return of goods sold
Return of old assets purchased
Return of anything purchased
Return of anything sold.
The Correct Answer is :
Return of goods purchased
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
251. Salary Outstanding Account is a personal account
Marks:
Marks:
2+ 0.5-
2+ 0.5-
True
False
Incomplete statement
All of the above
None of the above.
The Correct Answer is :
True
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
252. The amount of Rs. 5,000 paid to a transport company to carry a machine should be
debited to Marks: 2+ 0.5Cash a/c
Machinery a/c
The Transport Caompany's a/c
Freight a/c
None of the above
The Correct Answer is :
Freight a/c
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
253. Closing stock of office stationery is written in the -
Marks: 2+ 0.5-
credit side on Trading a/c
credit side of P & L a/c
assets side of Balance Sheet
liabilities side of Balance sheet
None of the above
The Correct Answer is :
assets side of Balance Sheet
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
254. Provision for discount on creditors will always show a debit balance.
Tru
False
Marks: 2+ 0.5-
Incomplete statement
All of the above
None of the above
The Correct Answer is :
Tru
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
255. Sale of an old aset on credit at a price higher than written down value of the asset, would
Marks: 2+ 0.5leave owner's equity unaffected
increae owner's equity to the extent of less vlaue
decrease owner's equity by the amount of sale
increase owner's equity to the extent of profit on sale
None of the above.
The Correct Answer is :
increase owner's equity to the extent of profit on sale
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
256. Which one of the following statements is 'true'?
Marks: 2+ 0.5Only a limited number of transactions affect the accounting equation.
The basic unit of accounting is a journal entry
Transaction analysis analyses the effect of transactions on the variables of the accounting
equation.
When the balance of an asset is to be reduced, the Asset a/c is to be debited.
Decreae in one asset with no change in capital will result in decreae in another asset.
The Correct Answer is :
Transaction analysis analyses the effect of transactions on the
variables of the accounting equation.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
257. The discount column of a triple-column cash Book recordsMarks: 2+ 0.5cahs discount
trade discount
bank discount
seasonal discount
quantity discount.
The Correct Answer is :
cahs discount
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
258. The appropriate book to record credit purchase of furniture is Journal
Purchases Book
Cash Book
Petty Cash Book
Sales Book.
The Correct Answer is :
Journal
You did not answer the question.
Explanation :
undefined
Marks:
2+ 0.5-
Module : Module B
Chapter : Chapter2
259. Sales a/c Dr. To Trading a/cisan example of -
Marks:
2+ 0.5-
Opening entry
Closing entry
Transaction entry
Adjustment entry
Rectification entry
The Correct Answer is :
Closing entry
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
260. Posting is donw from
Marks: 2+ 0.5ledger to ledger
one subsidiary book to another
ledger to subsidiary book
subsidiary book to ledger
None of the above
The Correct Answer is :
subsidiary book to ledger
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
261. Ledger is a principle book in which Marks: 2+ 0.5only real accounts are kept
only personal accounts are kept
only representative personal accounts are kept
only nominal accounts are kept
All account are kept
The Correct Answer is :
All account are kept
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
262. Bills Receivable Book and Bills Payable book arePrincipal Books
Ledger
Subsidiary Books
Memorandum Books
None of the above
The Correct Answer is :
Subsidiary Books
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
263. The balance of Cash Account indicates
Net loss for the period
Net profit for the period
Net cash on hand
Net worth of the business
Net amount due from debtors.
The Correct Answer is :
Net cash on hand
Marks:
Marks: 2+ 0.5-
2+ 0.5-
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
264. Transferring the debit and creidt items from journal to their respective accounts in the
ledger is called Marks: 2+ 0.5single entry
double entry
posting
balancing
invoicing
The Correct Answer is :
posting
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
265. the amount and goods brought in by the proprietor in the business should be credited to Marks:
2+ 0.5-
Drawings Account
Cash account
Capital Account
Purchases Account
None of the above
The Correct Answer is :
Capital Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
266. In case of debt becoming bad, the amount should be credited to -
Marks:
Provision of Bad Debts a/c
Bad Debts a/c
Sales a/c
Creditor's a/c
Debtor's a/c
The Correct Answer is :
Debtor's a/c
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
267. The amount of salary paid to Mr. A should be debited to -
Marks: 2+ 0.5-
Cash a/c
Salaries a/c
Mr. A's a/c
Outstanding Salaries a/c
None of the above
The Correct Answer is :
Salaries a/c
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
268. Cash discount allowed to a debtor should be credited to -
Marks:
Sales a/c
2+ 0.5-
2+ 0.5-
Discount a/c
Cash a/c
Customer's a/c
None of the above
The Correct Answer is :
Customer's a/c
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
269. The return of goods by a customer should be debited toGoods a/c
Sales Returns a/c
Customer's a/c
Purchase Returns a/c
None of the above
The Correct Answer is :
Sales Returns a/c
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
270. Sales made of Mr. X for should be debited to Mr. X's a/c
Sales a/c
Cash a/c
Purchases a/c
None of the above.
The Correct Answer is :
Cash a/c
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
271. Prepaid Expenditure a/c is
Marks:
Marks:
Marks:
2+ 0.5-
2+ 0.5-
Real Account
Natural Personal Account
Representative Personal Account
Nominal Account
None of the above
The Correct Answer is :
Representative Personal Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
272. Loan taken from Khushboo should be credited to Marks:
Cash a/c
Bank a/c
Loan from Khushboo a/c
Khushboo's a/c
None of the above
The Correct Answer is :
Loan from Khushboo a/c
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
2+ 0.5-
2+ 0.5-
273. Select the true statement from the follwing
Marks:
2+ 0.5-
Every transaction is recorded first in the cash Book
Bank account is not a personal account
Narration is necessary
Drawing Accounts is a real acocunt
Journal is a book of original entry.
The Correct Answer is :
Journal is a book of original entry.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
274. Interest paid on borrowings is an example of Marks: 2+ 0.5Real Account
Personal account
Nominal Account
All of the above.
None of the above
The Correct Answer is :
Nominal Account
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter2
275. Interest received in advance is an example of Real Account
Personal Account
Nominal Account
All of the above
None of the above
The Correct Answer is :
Personal Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
276. Goodwill Account is an example of Marks:
Marks: 2+ 0.5-
2+ 0.5-
Real (tangible)account
Real (intangible) account
Personal account
Nominal account
None of the above
The Correct Answer is :
Real (intangible) account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
277. The debit balance is cash Account indicatesMarks:
Total csh received
Total cash paid
Net income
Cash in hand
None of the above
The Correct Answer is :
Cash in hand
You did not answer the question.
2+ 0.5-
Explanation :
undefined
Module : Module B
Chapter : Chapter2
278. Cash Account is a -
Marks:
2+ 0.5-
Nominal Account
Real Account
Personal account
All of the above
None of the above
The Correct Answer is :
Real Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
279. Debit entries will increaes the balance of -
Marks: 2+ 0.5-
Purchaes Accounts
Plant & Machinery Accounts
(i) and (ii) both
Sales Accounts
Purchase Returns Accounts
The Correct Answer is :
(i) and (ii) both
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
280. Debit entries will decrease the balance of -
Marks:
2+ 0.5-
Salaries Accounts
Furniture Account
Bank Account
Cash Account
Capital Account
The Correct Answer is :
Cash Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
281. Debit entires will decrease the balance of -
Marks:
2+ 0.5-
Salaries Account
Furniture Account
Bank Account
Cash Account
Capital Account
The Correct Answer is :
Capital Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
282. Debit entries will decrease the balance of -
Marks:
2+ 0.5-
Salaries Account
Furniture Account
Bank Account
Cash Account
Capital Account
The Correct Answer is :
Capital Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
283. Credit entries will increase the balance of -
Marks:
2+ 0.5-
Goodwill Account
Purchases Account
Sales Returns Account
Bank Overdraft
None of the above.
The Correct Answer is :
Bank Overdraft
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
284. Credit entries will decrease the balance of-
Marks:
2+ 0.5-
Capital Account
Cash Account
Purchases Return Account
(i) and (ii) both
(i) and (iii) both.
The Correct Answer is :
Cash Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
285. Cash discount is allowed on Marks:
2+ 0.5-
Purchases
sales
as a commission for sales
prompt payment
All of the above
The Correct Answer is :
prompt payment
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
286. Cash Books is a Marks: 2+ 0.5subsidiary journal
subsidiary journal and ledger account
ledger account
All of the above
None of the above.
The Correct Answer is :
ledger account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
287. Purchase Book is maintained to record -
Marks:
2+ 0.5-
all cahs purchases
all credit purchases
all purchases of goods
all credit purchases of goods
All of the above.
The Correct Answer is :
all credit purchases of goods
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
288. The periodic totoal of purchases of goods is posted to debit of Cash Acocunt
debit of Purchase Account
credit of Cash Account
credit of Purchase Account
None of the above.
The Correct Answer is :
debit of Purchase Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
289. The debit balance of Petty Cash Book isMarks:
Marks:
2+ 0.5-
2+ 0.5-
an expense
an asset
a liability
a gain
an income
The Correct Answer is :
an asset
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
290. The term 'Imprest System' is used in relation to -
Marks:
2+ 0.5-
Purchases Book
Sales Book
Cash Book
Petty Cash Book
All of the above.
The Correct Answer is :
Petty Cash Book
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
291. Mr. A sold some old machinery not in use having book value as zero, for Rs. 10,000. It will
be credited to Marks: 2+ 0.5Sales Account
Trading Account
Profit on sale of fixed assets
All of the above
None of the above.
The Correct Answer is :
Profit on sale of fixed assets
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
292. Mr. A purchased fixed assets with the available cash. This transaction would -
Marks:
2+
0.5-
reduce current assets and current liabilities
reduce current assets and increase fixed assets
reduce current assets and reduce fixed assets
reduce current assets and increase current liabilities
keep current assets and fixed assets unchanged.
The Correct Answer is :
reduce current assets and increase fixed assets
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
293. The system of double entry is based on the principle thateMarks: 2+ 0.5Double voucher is prepared to record the transaction
Head of one account is debited or credited twice
Every transaction has two-fold effect and it affects two accounts in opposite direction
All of the above
None of the above
The Correct Answer is :
Every transaction has two-fold effect and it affects two accounts in
opposite direction
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
294. Double entry system of book-keeping refers to a system where Marks: 2+ 0.5Each trasaction is recorded in two sets of account books.
The number of accounts with a debit balance must agree with the number of accounts with
credit balance.
Each transaction is recorded twice-once in journal and then in ledger
Each debit and credit entries are passed for each transaction .
All of the above.
The Correct Answer is :
Each debit and credit entries are passed for each transaction .
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
295. Debit signifies Marks: 2+ 0.5Increase in assets accounts
Decrease in capital account
Decrease in liabilities accounts
All of the above
None of the above
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
296. Credit signifies Marks: 2+ 0.5Increase in assets accounts
Decrease in capital account
Increase in liabilities accounts
All of the above
None of the above
The Correct Answer is :
Increase in liabilities accounts
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
297. In double entry sytstem of book-keeping, every business transaction affects -
Marks:
2+
0.5-
One account
Two accout
Debit and credit side of the same account
All of the above
None of the above.
The Correct Answer is :
Two accout
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
298. In book-keeping, posting means Marks:
2+ 0.5-
To record the transactionw with the help of a voucher
To record the transactionw with the help of other records
To record the transactionw in the books of original entry
To record the transactionw from the books of original entry to the ledger
All of the above
The Correct Answer is :
To record the transactionw from the books of original entry to the
ledger
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
299. Real account srelate to Marks: 2+ 0.5Expenses
Incomes
Assets
Liabilities
Debtors and Creditors.
The Correct Answer is :
Assets
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
300. Personal accounts relate to -
Marks:
2+ 0.5-
Expenses and Incomes
Assets and Liabilities
Debtors and creditors
All of the above
None of the above
The Correct Answer is :
Debtors and creditors
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
301. The basic rule of Book-keeping-debit and expenses/Losses and credit the income/gains is
applicable to Marks: 2+ 0.5Real Accounts
Personal Accounts
Nominal Accounts
All of the above
None of the above.
The Correct Answer is :
Nominal Accounts
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
302. Which of the following events is not a business transaction?
Marks: 2+ 0.5-
Withdrawas of goods by the proprietor for domestic use
Purchase of goods on credit
Making promise to supply goods
Loss of goods by theft
Sale of goods for cash
The Correct Answer is :
Making promise to supply goods
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
303. Wages owing is Marks: 2+ 0.5Real Account
Personal Account
Nominal Account
All of the above
None of the above
The Correct Answer is :
Personal Account
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
304. goods drawn by the proprietor from the business fro personal use Increase assets andecreases expenses
Increases assets and decreases liabilities
Increases capital and decreases assets
Increases liabilities and decreases assets
None of the above.
The Correct Answer is :
None of the above.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
305. Interest on drawings Marks: 2+ 0.5Increases expenses and decreases liabilit
Increases liability and decreaes capital
Increases assets and decreases capital
Increases revenues and decreases capital
All of the above
The Correct Answer is :
Increases revenues and decreases capital
You did not answer the question.
Marks:
2+ 0.5-
Explanation :
undefined
Module : Module B
Chapter : Chapter2
306. Recovery of bad debts previously written off
Marks:
2+ 0.5-
Increases revenue and assets
Increases expenses and assets
Increaes assets and capital
Decreaes assets and excpenses
Decreases revenue and assets
The Correct Answer is :
Increases revenue and assets
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
307. Rs. 5,000 received from Ramesh, whose account was previously written off as bad debts,
should be credited to Marks: 2+ 0.5Bad Debts a/c
Bad Debts Recovered a/c
Bad Debts Provision a/c
Ramesh a/c
None of the above
The Correct Answer is :
Bad Debts Recovered a/c
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
308. A balance sheet discloses Marks: 2+ 0.5Cash position of the business
Financial position of the business
Profit earning capacity of the busiess
Risk taking capacity of the business
All of the above
The Correct Answer is :
Financial position of the business
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
309. Cost of sales is Rs. 40,000 net sales amount to Rs. 60,000 and Closing stock is valued at
Rs. 10,000. The gross profit will be Marks: 2+ 0.5Rs. 10,000
Rs. 20,000
Rs. 30,000
Rs. 40,000
Rs. 40,000
The Correct Answer is :
Rs. 20,000
You did not answer the question.
Explanation :
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Module : Module B
Chapter : Chapter2
310. If a receipt of rs. 20,000 from Manan (our debtor) has not been recorded in the books, the
profit will show Marks: 2+ 0.5An increase of Rs. 20,000
A decrease of rs. 20,000
Neither an increae nor a decrese
An increae of Rs. 10,000
A decreae of Rs. 10,000
The Correct Answer is :
Neither an increae nor a decrese
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
311. Cash Book recordsMarks: 2+ 0.5all transactions
all cash transactions
all credit transactions
all non-cash transactions
None of the above
The Correct Answer is :
all cash transactions
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
312. Discount column of Cash Book is Marks:
2+ 0.5-
balanced
totalled
either balanced or totalled
neither balanced nor totalled
sometimes balanced, sometimes totalled
The Correct Answer is :
totalled
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
313. Cash Book does not recordMarks: 2+ 0.5credit purchased
credit sales
outstanding expenses
accrued income
All of the above.
The Correct Answer is :
All of the above.
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
314. Cash column of the Cash Book always has a debit balance
credit balance
either debit or credit balance
neither debit nor credit balance
None of the above.
The Correct Answer is :
debit balance
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
Marks:
2+ 0.5-
315. Bank column of the Cahs Book has -
Marks: 2+ 0.5-
debit balance
credit balance
either debit or credit balance
neither debit or credit balance
None of the above.
The Correct Answer is :
either debit or credit balance
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
316. All credit transactions are recorded at ....side of the cash Book.
debit
credit
either debit or credit
neither debit nor credit
Noen of the above.
The Correct Answer is :
neither debit nor credit
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
317. Which of the following is a contra entry?
Marks:
Marks: 2+ 0.5-
2+ 0.5-
Selling goods for cash
Receiving cash from Suresh and allowing him discount
Depositing cheque into the bank which was received the same day
Depositing cheque into the bank which was received the proviious day
All of the above.
The Correct Answer is :
Depositing cheque into the bank which was received the proviious
day
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
318. Petty Cash Book recordsMarks: 2+ 0.5Petty expenses
Petty expenses paid in cash
all expenses
outstanding expenses
All of the above.
The Correct Answer is :
Petty expenses paid in cash
You did not answer the question.
Explanation :
undefined
Module : Module B
Chapter : Chapter2
319. Which of the following accounts will invariably have a debit balance?
Bank Account
Current Account of a Partner
Accounts Receivables
Accounts Payable
None of the above.
The Correct Answer is :
Accounts Receivables
You did not answer the question.
Marks:
2+ 0.5-
Explanation :
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Module : Module B
Chapter : Chapter2
320. Errors detected before the preparation of trial balance will be rectifiedby opening suspense a/c
without opening Suspense a/c
by tranferring to Trading a/c
by transferring to p&L a/c
None of the above
The Correct Answer is :
without opening Suspense a/c
You did not answer the question.
Explanation :
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Module : Module C
Chapter : Chapter1
321. Suspense a/c in the trial balance will be entered in theTrading a/c
P & L a/c
Manufacturing a/c
Balance sheet
None of the above
The Correct Answer is :
Balance sheet
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
322. Which one of the following is a true statement ?
Marks:
Marks:
Marks: 2+ 0.5-
2+ 0.5-
2+ 0.5-
Errors of principle affect the agreement of the trial balance
If the two sides of trial balance tally, the books of accounts can be taken as absolutely
accurate
Errors of commission are commited in those case where proper distinction between revenue
and capital items is not made
All errors affect the agreement of the trial balance
Errors of omission do not affect the agreement of the trial balance
The Correct Answer is :
Errors of omission do not affect the agreement of the trial balance
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
323. Which one of the following is a false statement ?
Marks: 2+ 0.5In case of compensating error, one error neutralises the effect of the other error.
Undercasting the purchases book is the error of commission
Errors of principle cannot be detected by trial balance
Errors of complete omission cannot be detected by trial balance
All errors affect the agreement of the trial balance
The Correct Answer is :
All errors affect the agreement of the trial balance
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
324. A trial balance is aMarks: 2+ 0.5real account
personal account
nominal account
list of balance of all account
list of assets and liablities
The Correct Answer is :
list of balance of all account
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
325. A trial balance checksMarks: 2+ 0.5honesty of the accountant
honesty of the owners
arithmethic accuracy of books
All of the above
None of the above
The Correct Answer is :
arithmethic accuracy of books
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
326. The following can be detected by preparing a trial balance-
Marks:
errors of principle
errors of omission
errors of commision
errors of compensation
None of the above
The Correct Answer is :
None of the above
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
327. In trial balance, an outstanding expenditure account will show adebit balance
credit balance
sometimes debit and sometimes credit balance
only nil balance
None of the above
The Correct Answer is :
credit balance
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
328. Wrong balancing of account isMarks: 2+ 0.5error of principle
error of omission
error of commission
error of compensation
None of the above
The Correct Answer is :
error of commission
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
2+ 0.5-
Marks:
2+ 0.5-
329. Bills Receviable a/c and Bills Payable a/c are a part of-
Marks:
Journal
Ledger
Trading a/c
P&L
Balance sheet
The Correct Answer is :
Ledger
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
330. Bills Receivable Book and bills payable Book are-
2+ 0.5-
Marks:
2+ 0.5-
principle Books
Subsidiary Books
Books containing names and addresses of debtors and creditors
Books containing blank forms of bills of exchang
None of the above
The Correct Answer is :
Subsidiary Books
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
331. Retiring a bill under a rebate meansMarks: 2+ 0.5paying the bill on due date
paying the bill before due date
paying the bill after due date
dishonouring the bill
accepting a new bill
The Correct Answer is :
paying the bill before due date
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
332. Rent paid to landlord amounting to Rs.700 was credited to Rent a/c with Rs.7000. In the
rectification entry, Rent a/c will be debited withMarks: 2+ 0.5Rs.700
Rs.7000
Rs.6300
Rs.7700
None of the above
The Correct Answer is :
Rs.7700
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
333. A watch purchased for Rs.3,000 for the son of a partner, was debited to trade expenses
account with Rs.300. The partners drawing account should be debited in the rectifying entry
withMarks: 2+ 0.5Rs.300
Rs.2700
Rs.3300
Rs.5700
Rs. 3000
The Correct Answer is :
Rs. 3000
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
334. wages paid for repairs to plant should be debited to-
Marks:
2+ 0.5-
wages a/c
Repairs a/c
plant a/C
Cash a/c
None of the above
The Correct Answer is :
Repairs a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
335. Asha's a/c, instead of being debited with Rs. 5,000 has wrongly been credited with
Rs.5,000. it should be debited in the rectifying entry withMarks: 2+ 0.5half amount
same amount
double amount
triple amount
None of the above
The Correct Answer is :
double amount
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
336. A firm dealing in furniture debits Furniture a/c on purchasing furniture for cash or on
credit. It is an error ofMarks: 2+ 0.5principle
omission
commission
compensation
None of the above
The Correct Answer is :
principle
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
337. Sales to Mohan Rs. 445 posted to his account as Rs.544, would affectCash a/c
Sales a/c
Mohan a/c
All of the above
None of the above
The Correct Answer is :
Mohan a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
338. sales to sohan Rs. 5000 not recorded in the books would affect-
Marks:
Marks: 2+ 0.5-
2+ 0.5-
cash a/c
sales a/c
sohan a/c
Both Cash a/c and Sales a/c
Both sales a/c and Sohan's a/c
The Correct Answer is :
Both sales a/c and Sohan's a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
339. Goods purchased from Mr.X for Rs.10,000 was passed through the sales Books . The
rectification of error will
Marks: 2+ 0.5increase in gross profit
decrease in gross profit
no effect on gross profit
decrease in balance of Purchases a/c
None of the above
The Correct Answer is :
decrease in gross profit
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
340. A sumof Rs.3,000 written off as bad debts now received, cedited to the debtor oul;d result
inMarks: 2+ 0.5increase the net profit by Rs. 3000
decrease the net profit by Rs. 3000
no effect on net profit
increase in the balance of debtor's account
None of the above
The Correct Answer is :
decrease the net profit by Rs. 3000
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
341. Carriage charges paid for a new plant purchased, if debited to carriage a/c would affectMarks:
2+ 0.5-
cash a/c
carriage a/c
Plant a/c
cash a/c and Carriage a/c
carriage a/c and plant a/c
The Correct Answer is :
carriage a/c and plant a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
342. An amount of Rs. 1000 receivedfrom Mr. Sanjay credited to sanjeev's a/c would affectMarks:
2+ 0.5-
sanjay's a/c
sanjeev's a/c
Cash a/c
Both sanjay's a/c and sanjeev's a/c
None of the above
The Correct Answer is :
Both sanjay's a/c and sanjeev's a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
343. A sale of Rs. 2000 to Mr. X recorded in the Purchases Book would affectPurchases a/c
sales a/c
Purchases a/c and Cash a/c
sales a/c and Cash a/c
Purchases a/c, Sales a/c and Mr.X's a/c
The Correct Answer is :
Purchases a/c, Sales a/c and Mr.X's a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
344. Thye different in the debit and credit side of trial balance is transferred toDifference a/c
suspense a/c
Capital a/c
Profit & loss a/c
None of the above
The Correct Answer is :
suspense a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
345. Bank Reconciliation Statement is -
Marks:
Marks:
2+ 0.5-
Marks:
2+ 0.5-
2+ 0.5-
A ledger account
A Part of cash book with bank column
A statement showing the causes of difference between the cash book and the Pass book
balances
All of the above
None of the above.
The Correct Answer is :
A statement showing the causes of difference between the cash book
and the Pass book balances
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
346. Bank Reconciliation Statement may be Prepared with the balance of
Marks: 2+ 0.5Cash Book
Pass Book
Either Cash Book or Pass Book
Neither Cash Book nor Pass Book
None of the above.
The Correct Answer is :
Either Cash Book or Pass Book
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
347. The debit balance of Pass Book showsMarks: 2+ 0.5deposit (Plus) balance
overdraft (minus) balance
either deposit or overdraft balance
neither deposit nor overdraft balance
None of the above.
The Correct Answer is :
overdraft (minus) balance
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
348. Pass Book is
Marks: 2+ 0.5a copy of receipts and Payments of the firm
a copy of the firm's ledger account maintained by the bank
a copy of the banking transactions entered in the Cash Book
a record of all transactions
a record of withdrawals from the bank.
The Correct Answer is :
a copy of the firm's ledger account maintained by the bank
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
349. Overdraft facility is available only inMarks: 2+ 0.5Savings Bank Account
Current Account
Recurring Deposit Account
Fixed Deposit Account
All of the above.
The Correct Answer is :
Current Account
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
350. The bank balance is treated as plus (dposit) balance if it is a-
Marks:
2+ 0.5-
debit balance of Cash Boook
credit balance of Pass Book
both (i) and (ii)
credit balance of Cash Book
debit balance of pass Book.
The Correct Answer is :
both (i) and (ii)
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
351. Bank column in Cash Book shows a credit balance, What does it mean?
there must be un-deposited cash
There is overdraft balance
There must be some crror in recording
Cashier has embezzled cash
None of the above.
The Correct Answer is :
There is overdraft balance
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
Marks:
2+ 0.5-
352. Which one of the following statements is 'true'?
Marks:
2+ 0.5-
The balance as shown by the Bank Pass Book and the balance as shown by the bank column
of Cash Book are always equal.
Cheques issued but no presented will reduce the balance as per Pass Bank.
Pass Book is the statement of account maintained by the customer of the bank
Favourable balance as per Cash Book means credit balance in the bank column of Cash Book
When money is withdrawn from the bank, the Bank debits the Customer's Account.
The Correct Answer is :
When money is withdrawn from the bank, the Bank debits the
Customer's Account.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
353. Which one of the following statements is 'false'
Marks: 2+ 0.5Pass Book is the statement of Account of the customer maintained by the bank
Cheques sent for collection but not yet collected will result in increasing the balance of the
Cash Book
The Bank Reconciliation Statement is Prepared to reconcile the balance as shown by Cash
Book and the balance as shown by Pass Book
Direct collections received by the bank on half of its customer will decrease the balance as
per the Cash Book
Cheques issued but not presented for payment will increase the balance as Per Pass Book
The Correct Answer is :
Direct collections received by the bank on half of its customer will
decrease the balance as per the Cash Book
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
354. A bank reconciliation statement is prepared to know the causes for the difference
betweenMarks: 2+ 0.5the balance as per cash column of the Cash Book and Pass Book
the balance as per bank column of the Cash Book and Pass Book
both (i) and (ii)
neither (i) nor (ii)
None of the above.
The Correct Answer is :
the balance as per bank column of the Cash Book and Pass Book
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
355. A bank reconcilitation statement is
Marks: 2+ 0.5Part of Cash Book
Part of Bank Book Account
A separate statement
a separate statement attached to Cash Book
None of the above.
The Correct Answer is :
A separate statement
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
356. A bank reconciliation statement is prepared bybank
Marks: 2+ 0.5-
customer of the bank
creditors
government
All of the above.
The Correct Answer is :
customer of the bank
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
357. A bank reconciliation statement is prepared with the help of-
Marks: 2+ 0.5-
bank pass book and bank column of cash book
bank pass book cash coumn of cash book
bank pass book and petty cash book
All of the above
None of the above.
The Correct Answer is :
bank pass book and bank column of cash book
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
358. If you start with the cash book deposit balance in a bank reconciliation statement, which
items will you add ?
Marks: 2+ 0.5Cheques issued but not yet Presented for Payment
Accounts directly deposited by a customer into bank
Interest allowed by the bank
Inerest charged by the bank
(i), (ii), and (iii).
The Correct Answer is :
(i), (ii), and (iii).
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
359. If you start with cash book deposit balance in a bank reconciliation statement, which
item/items will you deduct?
Marks: 2+ 0.5Dishonoured cheques
Discounted bills dishonoured
Dividend on shares collected by bank
(i) and (ii)
(i) and (ii)
The Correct Answer is :
(i) and (ii)
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
360. Which one of the following statement is true?
Marks: 2+ 0.5-
Normally if Cash Book shows a debit balance, Pass Book also shows a debit balance
A credit entry in Pass Book means a credit entry in Cash Book
For a dishonoured cheque, bank account is debited.
When a customer directly pays into bank, bank Account is debilted.
None of the above
The Correct Answer is :
When a customer directly pays into bank, bank Account is debilted.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
361. Which one of the following statements is false?
Marks:
2+ 0.5-
Debit balance in Pass Book means overdraft.
bank Pass Book is a copy of customer's account in the books of bank
For a dishonoured cheque, bank account is debited.
A debit entry in Pass Book means a credit entry in Cash Book
A bank reconciliation statement is prepared to find out the causes of difference between the
balance of Cash Book and Pass Book
The Correct Answer is :
For a dishonoured cheque, bank account is debited.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
362. The main purpose of preparing a Bank Reconciliation on Statement isMarks: 2+ 0.5to know the Cash Book Balance
to know the Pass Book Balance
to compare the transactions in the Cash Book and Pass Book
to correct the Cash Book
to reconcile Balance as Per Cash Book with the Pass Book Balance
The Correct Answer is :
to reconcile Balance as Per Cash Book with the Pass Book Balance
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
363. Bank Reconciliation Statement is aMarks: 2+ 0.5separate statement
ledger account
sub-division of journal
Part of Cash Book
compulsory statement under law
The Correct Answer is :
separate statement
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
364. Unfavourable bank balance meansMarks:
2+ 0.5-
debit balance in Cash Book
debit balance in Pass Book
credit balance in Cash Book
credit balance in Pass Book
both (ii) and (iii)
The Correct Answer is :
both (ii) and (iii)
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
365. A cheque received and deposited in the book on the same day is recorded in the
0.5-
bank column of Cash Book
cash column of Cash Book
both (i) and (II)
Marks:
2+
discount column of Cash Book
all the three column of Cash Book
The Correct Answer is :
bank column of Cash Book
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
366. An amount of Rs. 5,000 is debited twice in the Pass Book. When overdraft balance as Per
the Cash Book is the starting PointMarks: 2+ 0.5Rs. 5,000 will be added
Rs. 5,000 will be added
Rs. 10,000 will be added
Rs. 10,000 will be added
Rs. 15,000 will be added
The Correct Answer is :
Rs. 5,000 will be added
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
367. Which one of the following statement is 'true'?
Marks:
2+ 0.5-
Pass Book overdraft will be less than Cash Book overdraft if there are cheques deposited but
not collected by the bank
If the Payment side of the Cash Book is undercast, Cash Book overdraft will be more than the
Pass Book overdraft
When there are cheques unpresented, favourable balances Per Cash Book will be less than
that of the Pass Book
When a banker collectes bills and credits the account, Pass Book overdraft shows higher
balance than the Cash Book overdrft balance
Pass Book is a copy of Cash Book as Prepared by the customer of the bank
The Correct Answer is :
When there are cheques unpresented, favourable balances Per Cash
Book will be less than that of the Pass Book
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
368. Which one of the following statements is 'false'?
Marks: 2+ 0.5pass book is a copy of customer's account in the ledger of the bank
Normally, if the Pass Book shows credit balance, the Cash Book shows debit balance
Unfavourable bank balacne means debit balance in Pass Book and credit balance in Cash
Book
Unfavouable bank balance means credit balane in Pass Book and debit balance in Cash Book
Favourable bank balance means credit balance in Pass Book and debit balance in Cash Book
The Correct Answer is :
Unfavouable bank balance means credit balane in Pass Book and
debit balance in Cash Book
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter1
369. Goods of Rs. 2,000 returned to Mr. Y, entered in the Sales Book would affect Marks: 2+
0.5-
Y's a/c
Purchases a/c
(Purchase Returns a/c
Sales a/c
Purchase Returns a/c and Sales a/c
The Correct Answer is :
Purchase Returns a/c and Sales a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
370. Debiting Wages a/c for wages paid for the construction of building is -
Marks: 2+ 0.5-
error of principle
error of omission
error of commission
compensation error
None of the above.
The Correct Answer is :
error of principle
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
371. a fixed asset purchased on credit has been wrongly recorded in the purchases book. The
following rectification entry will be passed Marks: 2+ 0.5debit Purchases a/c / credit Fixed Asset a/c
debit Fixed Asset a/c / credit Purchases a/c
debit Fixed Asset a/c / credit Supplier's a/c
debit Supplier's a/c / credit Fixed Asset a/c
debit Purchase a/c / credit Supplier's a/c.
The Correct Answer is :
debit Fixed Asset a/c / credit Purchases a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
372. An amount spent on the repairs of the building has been debited to building a/c. The
following rectification entry will be passedMarks: 2+ 0.5debit building a/c credit Cash a/c
debit Building a/c credit Repairs a/c
debit Repairs a/c / credit Building a/c
debit Repairs a/c / credit Cash a/c
debit Cash a/c / credit Repairs a/c
The Correct Answer is :
debit Repairs a/c / credit Building a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
373. Rs. 5,000 paid as salary to Mr. X- a clerk has been debited to his personal account. The
rectification entry will be Marks: 2+ 0.5debit Cash a/c / credit Salary a/c
debit Salary a/c / credit Cash a/c
debit Mr. X's a/c / credit Cash a/c
debit Salary a/c / credit Mr. X's a/c
None of the above.
The Correct Answer is :
debit Salary a/c / credit Mr. X's a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
374. A sales of old car amounting to Rs. 20,000 has been credited to Sales a/c Pass the
rectification entryMarks: 2+ 0.5debit cash and credit car
debit car and credit cash
debit car and credit sales
debit sales and credit car
debit slaes and credit cash.
The Correct Answer is :
debit sales and credit car
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
375. Rs. 5,000 received from A but wrongly credited to B's account. The entry can be corrected
as Marks: 2+ 0.5debit cash and credit A
debit cash and credit B
debit A and credit B
debit B and credit A
None of the above.
The Correct Answer is :
debit B and credit A
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
376. Rs. 1,000 was posted to Depreciation a/c as depreciation on furniture but was not posted
to Furniture a/c. If total of debit side of the trial balance is Rs. 13,000, what should it be after
rectification of error?
Marks: 2+ 0.5Rs. 12,000
Rs. 13,000
Rs. 14,000
Rs. 15,000
None of the above.
The Correct Answer is :
None of the above.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
377. Purchases boo is overcast by Rs. 10,000. The present gross profit is Rs. 90,000. What
would be the correct amount of gross profit after rectification of the error?
Marks: 2+ 0.5Rs. 80,000
Rs. 90,000
Rs. 1,00,000
Rs. 1,10,000
None of the above.
The Correct Answer is :
Rs. 1,00,000
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
378. A sales of Rs. 3,000 to Mr. X has been omitted from recording in the Sales Book. The
existing total of debit side of the trial balance is Rs. 2,00,00. What will be the total of credit
side, presently?
Marks: 2+ 0.5-
Rs 2,03,000
Rs. 1,97,000
Rs. 2,06,000
Rs. 1,94,000
None of the above.
The Correct Answer is :
Rs. 1,97,000
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
379. No adjustment entry was passed for an amount of Rs. 500 relating to outstanding salary.
The gross profit which is presently Rs. 18,500 will now beMarks: 2+ 0.5Rs. 19,000
Rs. 17,500
Rs. 19,500
Rs. 18,000
No change.
The Correct Answer is :
No change.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
380. Discount amounting to Rs. 100 allowed by the creditors has been posted to the debit to
Discount a/c. By how much amount will the total of credit side of trial balance increase after
rectification?
Marks: 1+ 0.25Nil
Rs. 100
Rs. 200
- Rs. 100
_ Rs. 200.
The Correct Answer is :
Rs. 200
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
381. Rs. 140 discount allowed to a customer wrongly credited to Discount a/c, Total of debit
side of the trial balance is Rs. 39,280. What should it be after rectification?
Marks: 2+ 0.5Rs. 39,340
Rs. 39,420
Rs. 39,560
Rs. 39,400
None of the above.
The Correct Answer is :
Rs. 39,560
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
382. Which account is generally prepared for rectification of errors?
Adjustment a/c
Memorandum a/c
Profit & Loss a/c
Rectification a/c
Suspense a/c
Marks: 2+ 0.5-
The Correct Answer is :
Suspense a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
383. Errors of principle arise whenMarks:
2+ 0.5-
there is an omission of transaction
there is a commission of transaction
wrong amounts are entered in the books
transactions are entered in wrong subsidiary books.
Proper distinction is not made between capital and revenue items.
The Correct Answer is :
Proper distinction is not made between capital and revenue items.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
384. Preparation of trial balance helps in detecting the Marks: 2+ 0.5errors of principle
errors of omission
errors of commission
compensation errors
clerical errors.
The Correct Answer is :
clerical errors.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
385. Which one of the following errors will affect the agreement of the trial balance?
Marks:
2+
0.5-
Cash sale of furniture credited to Sales a/c.
A sale of Rs. 500 to Mr. Entered in sale Book as Rs. 5,000.
Purchase of Rs. 5,000 credited to Charat instead of Bharat.
A sales return of Rs. 2,000 correctly entered in the sales Returns Book but posted to the
debit side of Seema.
None of the above.
The Correct Answer is :
A sales return of Rs. 2,000 correctly entered in the sales Returns
Book but posted to the debit side of Seema.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
386. Goods worth Rs. 1,000 returned by Bhanu were taken into stock, but on entry was passed.
This is an error ofMarks: 2+ 0.5calculation
compensation
commission
omission
principle
The Correct Answer is :
omission
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
387. Which one of the following is an error of principle?
Marks:
2+ 0.5-
cash sale of Rs. 200 wrongly entered in Sales Book.
Sales of Rs. 200 entered in the books as Rs. 2,000
Purchase of Rs. 2,000 entered in the books as Rs. 200
Purchase transaction entered in Purchases Return Book.
Debiting Repairs a/c instead of Furniture a/c
The Correct Answer is :
Debiting Repairs a/c instead of Furniture a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
388. Which one of the following statements is 'true' ?
Marks: 2+ 0.5Revenue expenditure treated as capital expenditure or vice-versa, is an example of error of
commission.
In Book-Keeping, error are rectified by striking off the wrong figure and replacing it with the
correct figure.
Entering the wrong amount in the subsidiary books affects the agreement of the trial
balance.
Every type of error affects the agreement of the trial balance
Over-casting and Under-casting of a subsidiary books are the examples of errors of
commission.
The Correct Answer is :
Over-casting and Under-casting of a subsidiary books are the
examples of errors of commission.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
389. Which one of the following statements is 'false'?
Marks: 2+ 0.5Short debit to an account increases the credit side of the trial balance.
Excess debit to an account is rectified by debiting by debiting the amount to the account.
Some errors affect the agreement of trial balance while other do not.
An error of omission arises due to not writing the transaction in the books.
A transaction relating to sale of an asset being entered in Sales Book is an
The Correct Answer is :
Excess debit to an account is rectified by debiting by debiting the
amount to the account.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter2
390. Select the capital expenditureMarks: 2+ 0.5Carriage paid on goods purchased
Legal expenses incurred for abuse of trade mark
Payment of compensation to a discharged employee
Repairs to motor-car
Expenditure incurred on issue of equity shares.
The Correct Answer is :
Expenditure incurred on issue of equity shares.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
391. An expenditure is a capital expenditure becauseMarks: 2+ 0.5the amount is very large
the amount is paid in lump-sum
it is intended to benefit in the current period
it is intended to benefit in the future period
None of the above.
The Correct Answer is :
it is intended to benefit in the future period
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
392. An expenditure is a revenue expenditure becauseMarks: 2+ 0.5the amount is very small
the amount is paid in instalments
it is intended to benefit in the current period
it is intended to benefit in the current period
None of the above.
The Correct Answer is :
it is intended to benefit in the current period
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
393. A loss is treated as a capital loss becauseMarks: 2+ 0.5it relates to current assets
it relates to fixed assets
it arises due to abnormal reasons
it reduces profit
None of the above.
The Correct Answer is :
it arises due to abnormal reasons
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
394. Acquisition of fixed assets is an example ofMarks: 2+ 0.5revenue expenditure
capital expenditure
deferred revenue expenditure
All of the above
None of the above.
The Correct Answer is :
capital expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
395. Maintenance of fixed assets is an example ofrevenue expenditure
capital expenditure
deferred revenue expenditure
All of the above
None of the above.
The Correct Answer is :
revenue expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
Marks:
2+ 0.5-
396. An expenditure charged to P & L a/c over a period of 3 to 5 years is an example of
Marks:
2+ 0.5-
revenue expenditure
capital expenditure
deferred revenue expenditure
all of the above
None of the above.
The Correct Answer is :
deferred revenue expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
397. An expenditure which helps in increasing the earning capacity of the firm isrevenue expenditure
capital expenditure
deferred revenue expenditure
All of the above
None of the above.
The Correct Answer is :
revenue expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
398. Construction of building is an example ofrevenue expenditure
capital expenditure
deferred revenue expenditure
All of the above
None of the above.
The Correct Answer is :
capital expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
399. A loss is treated as capital loss because-
Marks:
2+ 0.5-
Marks: 2+ 0.5-
it arises due to normal reasons
it arises due to abnormal reasons
it relates to fixed assets
it relates to current assets
it relates to liabilities.
The Correct Answer is :
it arises due to abnormal reasons
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
400. Cost of goods purchase for resale is an example ofMarks:
Capital expenditure
revenue expenditure
deferred revenue expenditure
All of the above
None of the above.
The Correct Answer is :
revenue expenditure
You did not answer the question.
2+ 0.5-
Marks:
2+ 0.5-
Explanation :
undefined
Module : Module C
Chapter : Chapter3
401. Which one of the following is a capital item?
Marks: 2+ 0.5-
Depreciation on fixed assets
Painting of building
Advertisement expenses
Legal expenses incurred in defending a suit for breach of contract to supply goods.
Acquisition of new asset.
The Correct Answer is :
Acquisition of new asset.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
402. Which one of the following is a revenue item?
Marks: 2+ 0.5Expenditure incurred on issue of equity shares
Cost of formation of a new company
Money raised by issue of preference shares
Expenditure incurred for replacing an asset.
Depreciation on fixed assets.
The Correct Answer is :
Depreciation on fixed assets.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
403. An expenditure incurred on shifting the stock to a new site is an example of-
Marks:
2+ 0.5-
revenue expenditure
capital expenditure
deferred revenue expenditure
All of the above
None of the above.
The Correct Answer is :
revenue expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
404. An expenditure on advertisement for furtherance of market for products is an example ofMarks:
2+ 0.5-
revenue expenditure
capital expenditure
deferred revenue expenditure
All of the above
None of the above.
The Correct Answer is :
deferred revenue expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
405. Expenditure incurred on research and development is an example ofrevenue expenditure
capital expenditure
deferred revenue expenditure
Marks: 2+ 0.5-
All of the above
None of the above.
The Correct Answer is :
deferred revenue expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
406. Outstanding expenditure on wages and salaries is an example of-
Marks:
2+ 0.5-
revenue expenditure
capital expenditure
deferred revenue expenditure
All of the above
None of the above.
The Correct Answer is :
revenue expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
407. A Loss is a revenue loss becauseMarks: 2+ 0.5it arises due to normal operations of business
it decreases tax liability
It is related to current assets
It is related to fixed assets
None of the above.
The Correct Answer is :
it arises due to normal operations of business
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
408. Expenditure incurred as cost of raw-material purchased and meant for processing and resale is an example ofMarks: 2+ 0.5revenue expenditure
capital expenditure
deferred revenue expenditure
All of the above
None of the above.
The Correct Answer is :
revenue expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
409. Amount paid for acquiring good will is an example ofrevenue expenditure
capital expenditure
deferred revenue expenditure
All of the above
None of the above.
The Correct Answer is :
capital expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
Marks:
2+ 0.5-
410. A receipt is revenue receipt because-
Marks:
2+ 0.5-
it is received in the accounting year
the amount is small
it relates to routine activity of the business
it is received from debtors
None of the above.
The Correct Answer is :
it relates to routine activity of the business
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
411. A receipt is a capital receipt becauseMarks: 2+ 0.5It is received in the accounting year
The amount is heavy
It is not credited to Capital a/c
It relates to availability of long period
None of the above
The Correct Answer is :
It relates to availability of long period
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
412. Incorrect treatment of capital expenditure as revenue expenditure would result in Marks:
2+ 0.5-
Increase in capital and reserves
Decrease in capital and reserves
Decrease in loss
Increase in profits
Decrease in profit or increase in losses.
The Correct Answer is :
Decrease in profit or increase in losses.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
413. Incorrect treatment of revenue expenditure as capital expenditure would result inMarks:
2+ 0.5-
increase in liability
increase in losses
decrease in profit or increase in losses
increase in profit or decrease in losses
None of the above.
The Correct Answer is :
increase in profit or decrease in losses
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
414. a revenue expenditure is intended to benefitMarks: 2+ 0.5past period
current period
future period
both (i) and (ii)
both (ii) and (iii)
The Correct Answer is :
current period
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
415. The distinction between capital and revenue is necessary for the preparation ofMarks:
2+ 0.5-
Receipts & Payment a/ only
Profit & Loss a/c only
Final Account.
Cash Flow Statement
Funds Flow Statement
The Correct Answer is :
Final Account.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
416. Premium received on issue of shares is a-
Marks:
2+ 0.5-
revenue receipt
capital receipt
deferred revenue receipt
deferred capital receipt
None of the above.
The Correct Answer is :
capital receipt
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
417. Wages paid for erection of machinery must be debited to-
Marks:
Wages a/c
Machinery a/c
Deferred wages a/c
Repairs a/c
Profit & Loss a/c.
The Correct Answer is :
Machinery a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
418. An expenses incurred in order to reduce the operating costs, is -
2+ 0.5-
Marks: 2+ 0.5-
revenue expenditure
Capital expenditure
Promotional expenditure
Deferred revenue expenditure
None of the above.
The Correct Answer is :
Capital expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
419. Amount spent on advertisement campaign, the benefit of which is likely to last for 5 years,
isMarks: 2+ 0.5revenue expenditure
Capital expenditure
Deferred revenue expenditure
Deferred capital expenditure
None of the above.
The Correct Answer is :
Deferred revenue expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
420. Which one of the following statements is 'true'?
Marks:
2+ 0.5-
Loss on sale of fixed assets being capital in nature, should not be debited to P &L a/c
An expenditure intended to benefit the current period is capital expenditure.
The distinction between capital and revenue items is necessary for the preparation of final
accounts.
An amount obtained on sale of fixed assets is an example of revenue receipt.
An amount spent on re-conditioning of an old vehicle should be debited to repairs a/c.
The Correct Answer is :
The distinction between capital and revenue items is necessary for
the preparation of final accounts.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
421. Which one of the following statements is 'false'?
Marks: 2+ 0.5Any expenditure incurred to maintain the assets in the same state of efficiency is revenue
expenditure.
Heavy expenditure of revenue nature the impact of which is expected to last for more than a
year is termed as 'Deferred revenue Expenditure'.
Any expenditure which is unreasonably large, is capital expenditure.
An amount obtained on sale of fixed assets is an example of revenue receipt.
An amount spent on re-conditioning of an old vehicle should be debited to repairs a/c.
The Correct Answer is :
Any expenditure which is unreasonably large, is capital expenditure.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
422. Which one of the following statements is 'false'?
Marks: 2+ 0.5Any expenditure incurred to maintain the assets in the same state of efficiency is revenue
expenditure.
Heavy expenditure of revenue nature the impact of which is expected to last for more than a
year is termed as 'Deferred revenue Expenditure'.
Any expenditure which is unreasonably large, is capital expenditure.
Loss on sale of fixed assets being capital in nature, should be debited to P & L a/c.
Carriage paid on purchase of machinery is an example of capital expenditure.
The Correct Answer is :
Any expenditure which is unreasonably large, is capital expenditure.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter3
423. The ascertainment of value of stocks from accounting records is known asMarks: 2+ 0.5Periodic inventory
Scientific inventory
Perpetual inventory
Continuous stock
None of the above.
The Correct Answer is :
Perpetual inventory
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
424. The system which gives a continues information regarding quantity and value of
Inventory, is known asMarks: 2+ 0.5periodic inventory
perpetual inventory
continuous stock taking
FIFO system
None of the above.
The Correct Answer is :
perpetual inventory
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
425. Inventory is valued at cost or net realizable value on account of the accounting principle
of Marks: 2+ 0.5Consistency
Conservatism
Realisation
Going concern
Accounting period
The Correct Answer is :
Conservatism
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
426. The test of 'Objectivity' and 'Verifiability' is satisfied by valuing inventory at0.5-
historical cost
net realizable value
current replacement price
price adjustment of completion
All of the above.
The Correct Answer is :
historical cost
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
427. Selling expenses are included in inventory valuation bytrading concerns.
Process industries
Job order industries
Public utilities
Manufacturing industries.
The Correct Answer is :
Job order industries
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
Marks:
2+ 0.5-
Marks:
2+
428. The value of inventory will be the least in case of-
Marks:
2+ 0.5-
Item by item method
Aggregate or total inventory method
Group or category method
All of the above.
None of the above.
The Correct Answer is :
Item by item method
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
429. Historical inventory costs are reduced to net realizable value because of the a accounting
principle ofMarks: 2+ 0.5consistency
conservatism
going concern
matching
realization.
The Correct Answer is :
conservatism
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
430. AS-2 recommends the application of lower of cost or net realizable value by taking Marks:
2+ 0.5-
each item
group of several items
aggregate of all items
either (i) or (ii)
either (ii) or (iii)
The Correct Answer is :
either (i) or (ii)
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
431. The cost formula recommended by IAS-2 for valuation of inventories is -
Marks:
FIFO or Weighted Average
LIFO
NIFO or Latest purchase price
Standard cost
(i) and (ii)
The Correct Answer is :
FIFO or Weighted Average
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
432. Plantation and farm production is valued at net realizable value because of administrative price
the government regulation
the absence of cost particulars
the difficulty in ascertaining the cost
All of the above.
The Correct Answer is :
the difficulty in ascertaining the cost
2+ 0.5-
Marks:
2+ 0.5-
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
433. Which one of the following statement id 'true'?
Marks: 2+ 0.5-
Perpetual inventory and continuons stock taking mean one and the same.
Inventory valuation affects only the income statement.
Inventories should be valued at the lower of historical cost and current replacement cost.
The reduction of historical cost to net realizable value is due to the application of the
accounting convention of conservatism.
An enterprise is at full liberty to change its policy of stock valuation from time to time to suit
its convenience.
The Correct Answer is :
The reduction of historical cost to net realizable value is due to the
application of the accounting convention of conservatism.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
434. Which one of the following statements is 'false'?
Marks: 2+ 0.5LIFO method is suitable fro items which are of non-perishable and bulky type.
Periodic inventory gives a continuous balance of stock in hand.
FIFO method does not correlate the ascertained from accounting records is known as
perpetual inventory.
The system whereby stock valuation can be ascertained from accounting records is known as
perpetual inventory.
A major objective of accounting for inventories is the proper determination of inventories of
the purpose of financial statements.
The Correct Answer is :
Periodic inventory gives a continuous balance of stock in hand.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter4
435. A bill of exchange has
Marks: 2+ 0.52 parties
3 parties
4 parties
5 parties
any number of parties.
The Correct Answer is :
3 parties
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
436. A bill of exchange is drawn bydebtor
creditor
bank
(i) or (ii)
None of the above.
The Correct Answer is :
creditor
You did not answer the question.
Explanation :
undefined
Marks:
2+ 0.5-
Module : Module C
Chapter : Chapter5
437. Bills Receivable Book and Bills Payable Book are a part ofJournal
Ledger
Profit & Loss Account
Balance Sheet
None of the above.
The Correct Answer is :
Journal
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
438. Bills Receivable Book and Bills Payable Book are-
Marks:
Marks:
2+ 0.5-
2+ 0.5-
Principal books
Subsidiary books
Books containing blank forms for writing bills of exchange
All of the above
None of the above.
The Correct Answer is :
Principal books
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
439. A bill drawn on 1st January 2005 for 4 months, will mature for payment on30th April 2005
1st May 2005
4th May 2005
3rd May 2005
5th May 2005.
The Correct Answer is :
4th May 2005
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
440. A bill of exchange containsMarks:
2+ 0.5-
a promise to deliver goods
a promise to pay money
a request to deliver goods
a request to make payment
an unconditional order.
The Correct Answer is :
an unconditional order.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
441. Bills Receivable Account and Bills Payable Account arereal accounts
Personal accounts
Nominal accounts
Representative personal accounts
Both (ii) and (iii)
The Correct Answer is :
real accounts
Marks:
2+ 0.5-
Marks:
1+ 0.25-
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
442. a promissory note is prepared by-
Marks:
2+ 0.5-
Buyer
Seller
Commission Agent
Bank
Endorsee.
The Correct Answer is :
Buyer
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
443. On the acceptance of a bill, the acceptor debits-
Marks:
2+ 0.5-
Payee's a/c
Creditor's a/c
Bills payable a/c
Bills receivable a/c
Bank's a/c
The Correct Answer is :
Creditor's a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
444. When a bill discounted is dishonoured, the drawer creditsBank a/c
Discount a/c
Acceptor's a/c
Bills Receivable a/c
None of the above.
The Correct Answer is :
Bank a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
445. Noting Charges a/c is debited by-
Marks:
the acceptor
the drawer
the endorser
the presenter
the discounting banker.
The Correct Answer is :
the acceptor
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
446. When a bill is endorsed, credit is given toBank's
Acceptor's a/c
Endorser's a/c
2+ 0.5-
Marks:
2+ 0.5-
Marks:
2+ 0.5-
Bills Receivable a/c
None of the above.
The Correct Answer is :
Bills Receivable a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
447. When a bill endorsed is dishonoured, the drawer credits-
Marks:
2+ 0.5-
Bills Receivable a/c
Bank a/c
Endorser's (Creditor's)a/c
Acceptors' a/c
Bills Payable a/c.
The Correct Answer is :
Endorser's (Creditor's)a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
448. On the dishonour of the bill received through endorsement, debit is given to-
Marks:
0.5-
Payee's a/c
Acceptor's a/c
Endorser's a/c
Bills Receivable a/c
Bank a/c
The Correct Answer is :
Endorser's a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
449. Retiring a bill under rebate means-
Marks:
2+ 0.5-
dishonouring the bill
making payment of the bill after the due date
making payment of the bill before the due date
making payment of the bill on the due date
discounting the bill.
The Correct Answer is :
making payment of the bill before the due date
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
450. In case of renewal of the bill, interest is calculated for the period oforiginal
fresh bill
original + fresh bill
3 months
4 months.
The Correct Answer is :
fresh bill
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
Marks:
2+ 0.5-
2+
451. In case of renewal of the bill, interest is calculated for the period of-
Marks:
2+ 0.5-
Drawing and discounting the bill
Discounting and due date
Drawing and due date
3 months
All of the above.
The Correct Answer is :
Discounting and due date
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
452. The entry regarding payment of the bill will be passed in the books of the drawer if the bill
isMarks: 2+ 0.5retained
endorsed
discounted
retained or sent to bank for collection
retained or endorsed.
The Correct Answer is :
retained or sent to bank for collection
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
453. Nothing charges are paid to the notary public byMarks: 2+ 0.5drawer of the bill
endorsee
bank
either of the above three parties
acceptor of the bill
The Correct Answer is :
either of the above three parties
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
454. For payment of noting charges to the notary publicNoting charges a/c is debited
Bank a/c is debited
Noting charges a/c is credited
Acceptors a/c is credited
Cash a/c is credited.
The Correct Answer is :
Cash a/c is credited.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
455. The payment of Promissory Note is made by itsmaker
payee
bank
Any of above
None of above
The Correct Answer is :
maker
You did not answer the question.
Marks:
Marks:
2+ 0.5-
2+ 0.5-
Explanation :
undefined
Module : Module C
Chapter : Chapter5
456. A bill was drawn on 1st January 2005 for six months. The drawee cleared the bill on 4th
March 2005. The drawee should be allowed a rebate forMarks: 2+ 0.52 months
3 months
4 months
5 months
6 months.
The Correct Answer is :
4 months
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
457. 23. A bill for Rs. 10,000 was dishonoured with Rs. 150 as noting charges. It was renewed
with interest of Rs. 250. The amount of the new bill will be Marks: 2+ 0.5Rs. 10,000
Rs. 10,150
Rs. 10,250
Rs. 10,400
Rs. 10,100.
The Correct Answer is :
Rs. 10,400
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
458. 24. A is drawer and B is acceptor of the bill. A endorses the bill to C. The bill is
dishonoured on due date. A will debitMarks: 2+ 0.5B's a/c
C's a/c
Bills Receivable a/c
Cash a/c
None of the above.
The Correct Answer is :
B's a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
459. A pays Rs. 10,000 to B on maturity of the bill he bad accepted. A will debitB's a/c
Cash a/c
Bills Receivable a/c
Bills Payable a/c
None of the above.
The Correct Answer is :
Bills Payable a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
460. Which one of the following statements is 'true'?
Bills Receivable a/c is a personal account.
Marks:
2+ 0.5-
Marks:
2+ 0.5-
Noting charge is an item of expense for the party paying it.
An accommodation bill is one which is drawn and accepted without any consideration.
In the case of an accommodation bill, discount is to be borne by the drawer as he discounts
the bill.
No entry is needed in the case of a bill which is endorsed in favour of a creditor.
The Correct Answer is :
An accommodation bill is one which is drawn and accepted without
any consideration.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
461. Which one of the following statements is 'false'
Marks: 2+ 0.5Retiring of a bill is different from dishonour of a bill
The journal entries in respect of bills receivable discounted form a bank and of bills
receivable sent to the bank for collection, are the same.
An accommodation bill is one which is drawn and accepted without any consideration.
In the case of an accommodation bill, discount is to be borne by the drawer as he discounts
the bill.
No entry is needed in the case of a bill which is endorsed in favour of a creditor.
The Correct Answer is :
The journal entries in respect of bills receivable discounted form a
bank and of bills receivable sent to the bank for collection, are the same.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
462. Which one of the following statements is 'false'?
Marks: 2+ 0.5Retiring of a bill is different from dishonour of a bill
The journal entries in respect of bills receivable discounted form a bank and of bills
receivable sent to the bank for collection, are the same.
A bill of exchange contains an unconditional order to a certain person to pay a certain sum of
money.
A bill of exchange payable otherwise than on demand can be made payable to the bearer.
No accounting entry is passed in the books of the drawee when a bill receivable is either
discounted from the bank or endorsed to some oth
The Correct Answer is :
The journal entries in respect of bills receivable discounted form a
bank and of bills receivable sent to the bank for collection, are the same.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
463. Which one of the following statements is 'true'?
Marks: 2+ 0.5A bill received from a debtors is called Bills Receivable.
No cancellation entry is required when a bill is renewed.
An accommodation bill can be drawn for the benefit of drawer only.
Rebate at the time of retirement of a bill is a gain for the drawee.
A promissory note can be made payable to the bearer.
The Correct Answer is :
Rebate at the time of retirement of a bill is a gain for the drawee.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : Chapter5
464. The relationship between the Consignor and Consignee is that ofMarks: 2+ 0.5Principal and agent
Seller and buyer
Bailor and bailee
Creditor and debtor
None of the above.
The Correct Answer is :
Principal and agent
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
465. Consignment Account is of the nature of aReal Account
Personal Account
Representative Personal Account
Nominal Account
None of the above
The Correct Answer is :
Nominal Account
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
466. Goods sent on Consignment Account is a-
Marks:
Marks:
2+ 0.5-
2+ 0.5-
Real Account
Personal Account
Representative Personal Account
Nominal Account
None of the above.
The Correct Answer is :
Real Account
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
467. Consignee's Account is a
Marks: 2+ 0.5Real Account
Personal Account
Representative Personal Account
Nominal Account
None of the above.
The Correct Answer is :
Personal Account
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
468. When goods are sent on consignment, credit is given toPurchase a/c
Consignment a/c
(Consignee's a/c
Sales a/c
Goods sent on Consignment a/c
The Correct Answer is :
Goods sent on Consignment a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
Marks:
2+ 0.5-
469. Del Credere Commission is allowed to the consignee to bear-
Marks:
2+ 0.5-
normal loss
abnormal loss
(loss on account of bad debts
Loss on account of discount allowed to buyers
All of the above.
The Correct Answer is :
(loss on account of bad debts
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
470. Del credere Commission is calculated on Marks: 2+ 0.5cash sales
credit sales
total sales
credit sales minus cash sales
cash sales minus credit sales.
The Correct Answer is :
total sales
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
471. The normal loss on consignment is credited to-
Marks: 2+ 0.5-
Consignor's a/c
Consignee's a/c
Consignment a/c
Profit & Loss a/c
None of the above.
The Correct Answer is :
Consignment a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
472. Abnormal loss of stock after adjusting for recovery from insurance claim, is debited to Marks:
2+ 0.5-
Trading a/c
P & L a/c
Capital a/c
Consignment a/c
Consignee's a/c.
The Correct Answer is :
P & L a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
473. Over-riding commission is calculated oncash sales
credit sales
total sales
credit sales minus cash sales
cash sales minus credit sales.
The Correct Answer is :
total sales
You did not answer the question.
Marks:
2+ 0.5-
Explanation :
undefined
Module : Module C
Chapter : undefined
474. Account Sales' indicates -
Marks:
2+ 0.5-
the net sales effected by the consignee
the net amount due by consignee to consignor
the net commission due by consignor to consignee
All of the above
None of the above.
The Correct Answer is :
the net amount due by consignee to consignor
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
475. On sales being made by the consignee of the goods received by him on consignment, the
amount is credited by him toMarks: 2+ 0.5Goods Received on Consignment a/c
Purchased a/c
Sales a/c
Trading a/c
Consignor's a/c.
The Correct Answer is :
Consignor's a/c.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
476. Shradha sends 100 watches to Shubhra at an invoice price of Rs. 1,200 which is cost +
20%. 10 watches are lost in transit and an amount of Rs. 8,000 is received from the insurance
company in full settlement. The amount to be credited to Consignment a/c being abnormal
loss, is Marks: 2+ 0.5Rs. 2,000
Rs. 8,000
Rs. 10,000
Rs. 12,000
None of the above.
The Correct Answer is :
Rs. 10,000
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
477. Which one of the following statements is 'true'?
Marks:
2+ 0.5-
'Sales Account' and 'Account Sales' are synonymous terms.
Despatch of goods on consignment amounts to sale of goods by the consignor.
Abnormal loss of stock arises on account of natural and inherent characteristics of goods.
A consignee is paid over-riding commission or bearing the risk of bad debts on amount of
credit sales made by him.
The consignee passes no entry in his books for unsold stock of the consignor, lying with him.
The Correct Answer is :
The consignee passes no entry in his books for unsold stock of the
consignor, lying with him.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
478. Which one of the following statement is 'false'?
Marks:
2+ 0.5-
The relationship between the consignor and consignee is similar to the one between the
seller and the buyer.
Over-riding commissions is usually paid to the consignee by the consignor for pushing a new
product in the market
Del Credere Commission is paid to the consignee by the consignor to bear the risk of bad
debts.
The Consignment Account is in the nature of a nominal account.
The cost price of the closing stock is arrived at after including proportionate non-recurring
expenses incurred by the consignor and the consignee.
The Correct Answer is :
The relationship between the consignor and consignee is similar to
the one between the seller and the buyer.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
479. Which one of the following statements is 'true'?
Marks: 2+ 0.5for calculating the value of abnormal loss of stock, proportionate non-recurring expenses are
not considered.
Account Sales is the Sales Account in the books of the consignor.
Account Sales is a periodical statement rendered by the consignee to the consignor.
When goods are sent on consignment, the Consignee's a/c is debited.
Abnormal loss arises due to natural causes such as evaporation, drying breaking in bulk, etc.
The Correct Answer is :
Account Sales is a periodical statement rendered by the consignee to
the consignor.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
480. Joint Venture Account is an example ofMarks: 2+ 0.5Real Account
Personal Account
Representative Personal Account
Nominal Account
None of the above.
The Correct Answer is :
Nominal Account
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
481. When goods are purchased for the joint venture, the amount is debited to Purchases a/c
Trading a/c
Joint venture a/c
Joint Venture's Capital a/c
None of the above
The Correct Answer is :
Joint venture a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
482. Joint Venture Account with B' is an example ofReal Account
Marks:
2+ 0.5-
Marks:
2+ 0.5-
Personal Account
Representative Personal Account
Nominal Account
None of the above.
The Correct Answer is :
Personal Account
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
483. When A advances money to B in the course of joint venture, then A debits such money toMarks:
2+ 0.5-
Joint Venture a/c
(Joint Bank a/c
B's Personal a/c
Expenses a/c
Cash a/c.
The Correct Answer is :
Joint Venture a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
484. Joint Bank a/c is openedMarks: 2+ 0.5When no separate books for the joint venture are maintained
When separate books for the joint venture are maintained.
When only one joint venturer maintains the account.
When all joint venturers maintain the accounts
None of the above.
The Correct Answer is :
When separate books for the joint venture are maintained.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
485. In case of Memorandum Method, when there are three co-venturer, each co-venturer w
will open in his books for the venutureMarks: 2+ 0.5one account
two account
three accounts
four accounts
five accounts.
The Correct Answer is :
one account
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
486. Which one of the following statements is true?
Marks:
2+ 0.5-
A joint venture business has an indefinite life.
Joint venture and partnership are synonymous terms.
Principle of 'mutual agency' is applicable in a joint venture.
A co-venturer works on commission basis.
A joint venture is an example of 'profit seeking terminable venuture'.
The Correct Answer is :
Principle of 'mutual agency' is applicable in a joint venture.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
487. Which one of the following statements is 'false'?
Marks:
2+ 0.5-
Joint Venture a/c is a nominal account.
The opening of a Joint Bank a/c is an indication that separate books are kept for the joint
There is no difference between the legal character of partnership and that of joint
No accounting entry is passed when the goods are transferred from one venturer to the
Persons agreeing to participate in joint venture business are termed as co-venturers.
The Correct Answer is :
There is no difference between the legal character of partnership and
that of joint
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
488. In a lease agreement, there are …….. parties.Persons agreeing to participate in joint
venture business are termed as co-venturers.Persons agreeing to participate in joint venture
business are termed as co-venturers.Persons agreeing to participate in joint venture business
are termed as co-venturers.Persons agreeing to participate in joint venture business are
termed as co-venturers.Persons agreeing to participate in joint venture business are termed as
co-venturers.Persons agreeing to participate in joint venture business are termed as coventurers.Persons agreeing to participate in joint venture business are termed as co-venturers.
Marks:
1+ 0.25-
two
three
four
five
ten
The Correct Answer is :
two
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
489. Which one of the following statements is 'true'?
Marks:
2+ 0.5-
Under leasing agreement, risk of obsolescence is borne by the lessee
Lease rent paid by the lessee is not an expense.
In an operating lease, period of lease is much less as compared to the economic life of the
asset.
Lessor connot claim depreciation on leased asset.
Leasing is not a tool of tax planning.
The Correct Answer is :
In an operating lease, period of lease is much less as compared to
the economic life of the asset.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
490. Which one of the following statement is 'false'?
Marks: 2+ 0.5Depreciation on asset acquired under hire-purchase system is calculated on the cash price
If the hire-buyer fails to pay any instalment, the vendor has a right to seize the goods.
'Here-purchase /stock' and 'Instalments Not Yet Due' are synonymous terms.
'Hire-purchase Trading Account' is prepared in case the goods of small value are the
On seizure of the goods by hire-vendor, the hire-buyer transfers the balance of the
The Correct Answer is :
On seizure of the goods by hire-vendor, the hire-buyer transfers the
balance of the
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
491. Which one of the following statements is 'true'?
Marks:
2+ 0.5-
The ownership of property in goods passes to the hire-buyer as soon as the hire-vendor
Interest is calculated on the hire-purchases price at given rate of interest.
In hire-purchase system, if rate of interest is not give, the amount of interest is divided
equally over all the hire-purchase instalments.
Depreciation on asset acquired under hire-Purchase system is calculated on the cash price of
the asset.
The buyer cannot dispose off goods purchased under Instalment
The Correct Answer is :
Depreciation on asset acquired under hire-Purchase system is
calculated on the cash price of the asset.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
492. Which one of the following statements is 'true'?
Marks: 2+ 0.5The buyer can dispose off goods purchased on instalment basis.
On default of payment of a an instalment, the seller cannon take back the possession of g
good s in hire-purchase system.
The buyer has right to terminate the contract in instalment system.
Ownership does not pass to the buyer immediately in instalment sale.
Hire-Purchase System' and 'Instalment Payment System' are synonymous terms.
The Correct Answer is :
The buyer can dispose off goods purchased on instalment basis.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
493. In case of hire-purchase, Asset Account is debited withMarks: 1+ 0.25Hire-Purchase price
Cost price to the seller
Cash price
Cost price + interest
Cash price - interest.
The Correct Answer is :
Cash price
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
494. The hire-buyer charges depreciation an-
Marks: 2+ 0.5-
Cash price of the asset
Hire-Purchase price of the asset
Higher of the two.
Lower of the tow.
Non of the above.
The Correct Answer is :
Cash price of the asset
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
495. The amount of interest is credited by the hire-buyer to-
Marks:
2+ 0.5-
Assets a/c
Interest a/c
Vendor's a/c
P & L a/c
None of the above.
The Correct Answer is :
Vendor's a/c
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
496. One seizure of the goods by the hire-vendor, the hire-buyer transfers the balance of the
asset account to Marks: 2+ 0.5Goods Returned a/c
Profit & Loss a/c
Hire Vendor's a/c
Trading a/c
None of the above.
The Correct Answer is :
Hire Vendor's a/c
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
497. The cost of goods sold is transferred by the hire-vendor to-
Marks:
2+ 0.5-
Purchases a/c
Sales a/c
Hire-Purchases trading a/c
P & L a/c
None of the above.
The Correct Answer is :
Purchases a/c
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
498. In case of sale under the Instalment Payment System, total interest receivable by the s
seller is credited to Marks: 1+ 0.25Interest a/c
Interest Suspense a/c
Sales a/c
Trading a/c
None of the above.
The Correct Answer is :
Interest Suspense a/c
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
499. Maintenance Suspense Account for free repairs of asset is opened byBuyer
Seller
Both of them
As agreed between the two
None of the above.
The Correct Answer is :
Seller
You did not answer the question.
Marks:
2+ 0.5-
Explanation :
undefined
Module : Module C
Chapter : undefined
500. Under hire-purchase system, the asset can be got insured by -
Marks:
Buyer
Seller
Both of them
As agreed between the two.
None of the above.
The Correct Answer is :
Seller
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
501. In hire-purchase system, hire-buyer can maintain his accounts under-
2+ 0.5-
Marks:
2+ 0.5-
Asset Accrued Method
Total Cash Price Method
Any of the two methods
As required by the seller
None of the above.
The Correct Answer is :
Any of the two methods
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
502. If rate of the interest is not given, but amount of instalments are equal and periods of
instalments are also equal, the amount of interest included in the instalments is calculated byMarks:
2+ 0.5-
Inverse Reatio Method
Products Method
Annuity Method
All of the above
None of the above
The Correct Answer is :
Inverse Reatio Method
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
503. Under the Hire-Purchase System, the buyer becomes the owner of goods-
Marks:
2+ 0.5-
immediately after the delivery of goods.
Immediately after the down payment
Immediately after the signing of the agreement
Immediately after the payment of the first instalment
Immediately after the payment of the last instalment.
The Correct Answer is :
Immediately after the payment of the last instalment.
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
504. 17. Under the Instalment Payment System of Purchase, Interest Suspense a/c in the
books of the buyer is Marks: 2+ 0.5debited with the interest payable in respect of instalments due.
Debited with the interest payable in respect of instalments not due.
Debited with the difference between total instalment price and cash price.
Credited with the difference between the total instlament price and cash price.
None of the above.
The Correct Answer is :
Debited with the difference between total instalment price and cash
price.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
505. Stock out on the hire at cost price is ascertained byMarks: 2+ 0.5taking the cost in the proportion of paid instalments to total intalments
taking the cost in the proportion of value of unpaid instalments to hire-purchase price
deducting the gross profit margin from instalment not due the unpaid.
All of the above
None of the above.
The Correct Answer is :
deducting the gross profit margin from instalment not due the
unpaid.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
506. Which one of the following statements is 'true'?
Marks: 2+ 0.5The Income & Expenditure Account does not make a difference between capital and r
A heavy cash balance in the Receipts and Payments Account at the end of the
Income & Expenditure Account records all incomes and expenses received or paid during
Receipts & Payment account is a nominal account.
Income & Expenditure Account is a real account.
The Correct Answer is :
A heavy cash balance in the Receipts and Payments Account at the
end of the
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
507. Which one of the following statements is 'false'?
Marks: 2+ 0.5Receipts & Payments Account starts with an opening balance.
Receipts & Payment Account is a real Account.
Income & Expenditure Account is a nominal account
Receipts & Payment Account is a personal account.
A non-trading institution also prepares its final accounts.
The Correct Answer is :
Receipts & Payment Account is a personal account.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
508. Amount received from the sale of scrap by a club is treated asMarks: 2+ 0.5an income
an expense
an asset
a liability
None of the above.
The Correct Answer is :
an income
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
509. Subscription received in advance during the current year isan expense
an income
an outstanding expenditure
an accrued income
a liability.
The Correct Answer is :
a liability.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
510. Life membership fee received by a non-trading institution isan expense
an income
an asset
an accrued income
a liability.
The Correct Answer is :
a liability.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
511. Tournament expenses of the sports club are-
Marks:
Marks:
2+ 0.5-
Marks: 2+ 0.5-
2+ 0.5-
recorded as assets
recorded as deferred revenue expenditure
posted as expenditure
recorded as liability
deducted from tournament fund at the liabilities side a balance sheet.
The Correct Answer is :
deducted from tournament fund at the liabilities side a balance
sheet.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
512. Receipts & Payment Accounts is aMarks: 2+ 0.5Personal account
Real account
Nominal account
Either Real Account or Personal Account
Either Real Account or Nominal Account
The Correct Answer is :
Real account
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
513. Income & Expenditure account is a Real account
Personal account
Nominal account
Marks: 2+ 0.5-
Either Real Account or Personal Account
Either Real Account or Nominal Account.
The Correct Answer is :
Nominal account
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
514. Income & Expenditure Account is prepared by-
Marks:
2+ 0.5-
trading institutions
manufacturing industry
banks
non-trading institution
all institutions.
The Correct Answer is :
non-trading institution
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
515. Subscription outstanding of a club during the previous year was Rs. 20,000 and received
During the current year Rs. 2,40,000. Subscription shown in the credit side of income &
Expenditure a/c will beMarks: 2+ 0.5Rs. 20,000
Rs. 2,20,000
Rs. 1,80,000
Rs. 2,40,000
Rs. 2,60,000
The Correct Answer is :
Rs. 2,20,000
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
516. The Credit balance in an income & Expenditure a/c indicates -
Marks:
2+ 0.5-
the excess of expenditure over income
the excess of income over expenditure
the excess of cash receipts over cash payments
the excess of cash payments over cash receipts
None of the above.
The Correct Answer is :
the excess of income over expenditure
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
517. Which one of the following items should not be entered in Receipts and Payment a/c of a
Non-trading organization?
Marks: 2+ 0.5Sales of old newspapers and magazines
Expenses paid for the previous year
Loss on sale of old furniture.
Subscriptions received in advance
Donation received for the current year.
The Correct Answer is :
Loss on sale of old furniture.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
518. Which one of the following items will not appear in the Balance Sheet of non-trading
Organization.
Marks: 2+ 0.5Donations received during the year
Subscription received in advance
Entrance fee paid by the new members
Subscriptions relating to previous years received during the year
All of the above.
The Correct Answer is :
Entrance fee paid by the new members
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
519. An income arising from special fund of a club will be shown in the-
Marks: 2+ 0.5-
Special fund in the Balance Sheet
Credit side of Income & Expenditure a/c
Special fund in the Balance Sheet
(i) and (iii)
(i) and (iii)
The Correct Answer is :
Special fund in the Balance Sheet
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
520. The Income & Expenditure a/c of a club shows subscriptions of Rs. 50,000. Subscriptions
Accrued at the beginning of the year are Rs. 5,000 and subscriptions accrued at the end of the
year are Rs. 7,500. The amount that figures in Receipts & Payment a/c under the head
'Subscriptions' will beMarks: 2+ 0.5Rs. 42,500
Rs. 47,500.
Rs. 50,000.
Rs. 55,000.
Rs. 57,500.
The Correct Answer is :
Rs. 47,500.
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
521. In a club, amount received fro special fund is Rs. 17,000 and expenditure incurred from
The fund is Rs. 9,000. the amount to be credited to Income & Expenditure a/c would be
Marks:
2+ 0.5-
Nil
Rs. 8,000
Rs. 9,000
Rs. 17,000
Rs. 26,000.
The Correct Answer is :
Nil
You did not answer the question.
Explanation :
undefined
Module : Module C
Chapter : undefined
522. The Receipts & Payment a/c of a cricket club shows the following details -Subscriptions :
Current received Rs. 21,000 Arrears received Rs. 1,000 Advance received Rs. 1,600There are
12,000 members each of them paying an annual subscription of Rs. 20. The amount to be
credited to Income & Expenditure a/c will beMarks: 2+ 0.5Rs. 21,600
Rs. 22,600
Rs. 23,600
Rs. 24,000
Rs. 25,000
The Correct Answer is :
Rs. 24,000
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
523. Stock of stationery of a club on 1st January 2005 Rs. 3,000; Creditors for stationery on
31st December 2005 Rs. 2,000; Opening balance of creditors for stationery Rs. 3,000; Payment
for stationery during the year 2005 Rs.14,000; Stock of stationery on 31st December 2005 Rs.
2,000. The amount to be charged for stationery to the income & Expen
Marks: 2+ 0.5Rs. 13,000
Rs. 14,000
Rs. 15,000
Rs. 16,000
Rs. 17,000.
The Correct Answer is :
Rs. 14,000
You did not answer the question.
Explanation :
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Module : Module C
Chapter : undefined
524. Discount on issue of shares is a-
Marks:
2+ 0.5-
revenue loss
capital loss
deferred revenue expenditure.
revenue and capital loss both.
Non of the above.
The Correct Answer is :
capital loss
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
525. call paid in Advance Account is shown separately in-
Marks:
2+ 0.5-
assets side of Balance sheet
liabilities side of balance sheet
debit side of P&L a/c
credit side p&L a/c
debit side of Trading a/c
The Correct Answer is :
liabilities side of balance sheet
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
526. Interest @ ... is charged on calls in arrear according to Table 'a' of the Companies Act.
Marks:
3%
5%
6%
2+ 0.5-
9%
12%
The Correct Answer is :
6%
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
527. The rate of discount on share cannot execeed3%
5%
6%
10%
12%
The Correct Answer is :
10%
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
528. Capital Reserve is formed if shares areP & L a/c
Share Capital a/c
Capital Reserve.
Goodwill a/c
General Reserve
The Correct Answer is :
Capital Reserve.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
529. Capital Resrve is formed ifshares are-
Marks:
2+ 0.5-
Marks: 2+ 0.5-
Marks:
2+ 0.5-
issued
forfeited
forfeited and re-issued
All of the above
None of the above
The Correct Answer is :
forfeited and re-issued
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
530. Discount on re-issue of forfeited shares should not exceed-
Marks:
6% of the subscribed capital
12% of the re-issued capital.
10% of the authorised capital
9% of the paid up capital
the amount received so far on forfeited shares.
The Correct Answer is :
the amount received so far on forfeited shares.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
531. Preference Shareholders have a prefrence as regardsMarks: 2+ 0.5-
2+ 0.5-
dividend
intrest
commision
refund of capital
divident and refund of capital .
The Correct Answer is :
divident and refund of capital .
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
532. Calls money on shares should not exceed .....of the face value of the share.
Marks:
2+ 0.5-
1/2
1/3
1/4
1/5
1/6
The Correct Answer is :
1/4
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
533. A company had issued and received share capital of shares (face value RS.10) and called
application@ Rs5/- and allotment money Rs 5-/ Holders of 200 shares failed to pay the
allotment money.What amont will the company forfeit?
Marks: 2+ 0.5Rs.500
Rs1,000
Rs2,000
Rs 10.000
Rs20,000
The Correct Answer is :
Rs1,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
534. A company issues 3,00,000 share of Rs10 each at discount of Rs1 per share.what will be
the amount of paid up capital?
Marks: 2+ 0.5Rs3,00,000
Rs.2,70,000
Rs.30,00,000
Rs. 27,00,000
None of the above.
The Correct Answer is :
Rs.30,00,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
535. A company issues3,00,000 share of Rs. 10 each at a prmium of Rs. 2 per share. What will
be the amount of paid up capital?
Marks: 2+ 0.5Rs. 30,00,000
Rs. 6,00,000
Rs. 36,00,000
Rs. 24,00,000
None of the above
The Correct Answer is :
Rs. 30,00,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
536. A company came out with a public issue of 1,00,00 shares of Rs. 10 each and called Rs. 4
on allotment . What will be the balance in shares Forfeited a/c?
Marks: 2+ 0.5Rs.10,000
Rs.15,000
Rs.20,000
Rs.25,000
Non of the above
The Correct Answer is :
Rs.10,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
537. Which one of the following statements is true?
Marks:
2+ 0.5-
Share Premium amount can distributes as dividend amongst the shareholders.
In the very first year of working of the company shares can be issued at a discount.
Capital Redemption Reserve can be utilise for payment of dividend.
Court permission is not required for isssur of shares at a discount.
If calls on shares are not received, company can forfeit these shares.
The Correct Answer is :
If calls on shares are not received, company can forfeit these shares.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
538. Which one of the following statements is false?
Marks: 2+ 0.5Shares of a limited company can be classified into preference and equity shares.
prefrence shares enjoy prefrence as to divided and repayment of capital over equity shares.
Paid up capital is the amount with which the company is formed .
Capital subscribeed by the public is called subscriberd capital.
Issue of non-voting shares must be authorised by Articales of Association of the company.
The Correct Answer is :
Paid up capital is the amount with which the company is formed .
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
539. The main object of permitting the company to issue non-voting equity shares is-Marks:
2+ 0.5-
to give higher dividend
to give perference on re-payment
to raise resources without losing management control
All of the above
Non of the above.
The Correct Answer is :
to raise resources without losing management control
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
540. Which one of the following conditions is 'fase' reference to issue of non-voting equity
share?
Marks: 2+ 0.5-
For issue of non- voting shares, a special resolution must be passed at the general body
meeting .
Holders of non-voting equity share are entitled to all right including bonus shares but do not
enjoy voting rights.
Only public company limited by share can issues non-voting equity shares
Only public company limited by shares can issue non-voting equity shares.
No company will be permitted to convert shares with voting rights into the shares withought
voting right..
The Correct Answer is :
Only public company limited by share can issues non-voting equity
shares
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
541. If a share of Rs 100 ,on which Rs 60 have been paid ,is forefeited , it can be re-issued at
the minimum price ofMarks: 2+ 0.5Rs 40
Rs.60
Rs.100
Rs.140
Rs.160
The Correct Answer is :
Rs 40
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
542. If the preference share capital of Rs1,00,000 is to be redeemed, and for this 5.000 equity
share of Rs . 10 each have been issued at discount of10%,the amount to be transferred to
capital redemtion /Reserve will beIf the preference share capital of Rs1,00,000 is to be
redeemed, and for this 5,000 equity shares of rs. 10 each have been issued at a discount of
10% , the amount to be transferred to Capital Redemption Reserve will be.Marks: 2+ 0.5Rs.45,000.
Rs.50,000.
Rs.55,000
Rs.60,000
Rs.5,000
The Correct Answer is :
Rs.55,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
543. Which one of the following is a 'false ' circumstance with reference to issue of bonuse
shares?
Marks: 2+ 0.5A company can issue shares if its articals of association so provide
Sanction of Controller of Capital Issues is Not required for issue of bonus shares.
Bonus shares can be isued when the company has good profits but does not have sufficient
cash resources to pay.
Bonus shares can be issuied when the company wishes to builed up reserves for expantion
or for repayment of long -term liabilities.
Bonus shares can be issued when the company whishes to utilise certain reserves ,like share
premium,Capital Reserve, etc.
The Correct Answer is :
Sanction of Controller of Capital Issues is Not required for issue of
bonus shares.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
544. The difference between subscribed capital and called -up capital is called.paid up capital
uncalled capital.
calls in advance
calls in arrear
authorised capital.
The Correct Answer is :
uncalled capital.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
545. When shares are forfeited, the Share Capital a/c is debited bycalled up amount
paid up amount
call in arrear
calls received in advance
nominal value of such shares
The Correct Answer is :
called up amount
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
546. Premium received on issue of shares can be used for-
Marks:
Redemption of debentures
paying fees for auditors
paying fees for directors
writing off preliminary expenses
All ofthe above.
The Correct Answer is :
writing off preliminary expenses
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
547. The profit on re-issue of forfeited shares is transferred to Capital Redemption Reserve
Devlopment Fund
Profit & Loss a/c
Capital Reserve
General Reserve
The Correct Answer is :
Capital Reserve
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
548. Rights shares mean the shares which are -
Marks: 2+ 0.5-
issued to directors of the company
issuied for a consideration other than cash
offered to the exiting shareholders
issuied to holders of convertible debentures
issuied to promoters of the company for thier services.
The Correct Answer is :
offered to the exiting shareholders
Marks:
2+ 0.5-
2+ 0.5-
Marks:
2+ 0.5-
Marks:
2+ 0.5-
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
549. Unless otherwise stand,a preference shre is alway deemed to be-
Marks:
2+ 0.5-
Cumulative, participating and non-convertible
Non-cumulative, participating and non-convertible
cumulative, non-participating and non-convertible
Non-cumulative, non participating and non-nonconvertible
cumulative, participating and convertible.
The Correct Answer is :
cumulative, non-participating and non-convertible
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
550. A company issuied shares of Rs 100 each on which Rs 80 per share is called
up.Ashareholder has not paid the call Rs . 20 per share on 100 shares .The amount credited to
share capital in respect of him will be.Marks: 2+ 0.5Rs,2,000
Rs.6,000
Rs.8,000
Rs.10,000
Rs.12,000
The Correct Answer is :
Rs.8,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
551. An equity share of Rs 100 on Which Rs. 100 on which Rs. 80 is called up, is forfeited for
non-payment of the first call of Rs,20 per share . If the share is to be re-issuied as fully paid up
, the minimum amount to be collected will be Marks: 2+ 0.5Rs.20
Rs.40
Rs.60
Rs.80
Rs.100
The Correct Answer is :
Rs.40
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
552. 100 shares of Rs10 each of which Rs 8 per share is called up, are forfeited for non
payment of first call of Rs2 per Share. Of these shares, 60 were re- issued at Rs. per share. The
amount to be transferred to Capital Reserve, will be.Marks: 2+ 0.5Rs.120
Rs.240
Rs.360
Rs.480`
Rs.600
The Correct Answer is :
Rs.240
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
553. ...Is called the Charter of the company.
Marks: 2+ 0.5-
Memoradum of Association
Articles of Association
prospectus
List of members
All of the above.
The Correct Answer is :
Memoradum of Association
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
554. A. private company has to provide in its Articals ofassociation-
Marks:
2+ 0.5-
Marks:
2+ 0.5-
for permitting free transfer of its shares
for prohibiting transfer of its shares
for restring transfer of its shares
for all of the above.
for non of the above
The Correct Answer is :
for restring transfer of its shares
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
555. Rgisterred Company are formed underMarks: 2+ 0.5for Partenership Act
the Companies Act
an act passed by the parliament
international law
Non of the above.
The Correct Answer is :
the Companies Act
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
556. A company comes into existence when it gets the certificate of
incorporation
commencomg the business
Pollution department
income-tax department
non of the above
The Correct Answer is :
incorporation
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
557. A document inviting deposit from the or inviting offers from the public to subscribe for the
shares and debentures of a company is termed asMarks: 2+ 0.5Memorandum of Association
Articles of Association
Minutes Book
Register of charges
prespectus
The Correct Answer is :
prespectus
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
558. Which one of the following statements is false
Marks: 2+ 0.5-
A private company restricts the right of its members to tranfers shares
A private company limits the number of members to fifty
A private company prohibits any invitation to the public to subscribe for its share or
debentures
A private company may be registered with only two members
A private company is required to write only Ltd at the end of its name
The Correct Answer is :
A private company is required to write only Ltd at the end of its
name
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
559. A government company is one whose ....of the paid up share capital is held by the Central
Govt. or by ttwo or more of them together.
Marks: 2+ 0.550%
51%
not less than 51%
75%
100%
The Correct Answer is :
not less than 51%
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
560. A company which is incorporated out side India but which has a place of business in india
, is termed as/anMarks: 2+ 0.5Statutory Company
Indian Company
Foreign Company
Holding Company
Subsidiary Company
The Correct Answer is :
Foreign Company
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
561. Which one of the following statments is true
Marks:
2+ 0.5-
Partnership is are relationship between two persons only
Liability of partners is always limited .
A company does not have a perpectual succe sion.
The common scal is affixed on all important documents and contracts of the company
The maximum number of members of is 50 in case ofa public company .
The Correct Answer is :
The common scal is affixed on all important documents and contracts
of the company
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
562. which oneof the following statements is false?
Marks:
2+ 0.5-
shareholders liability is limited in case of a public company .
shares are not freely transferable in a private limited company .
The minimum number of members is 7 and maximum unlimited in caseof a public company .
A company incorporated by a special Act of Parliament is called a statutory company.
Minimum number of directors in private company is three.
The Correct Answer is :
Minimum number of directors in private company is three.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
563. Shareholders getMarks: 2+ 0.5fees
commission
interest
dividend
royalty
The Correct Answer is :
dividend
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
564. share Allotment Account is -
Marks: 2+ 0.5-
Real Account
Personal Account
Nominal Account
Asset Account
None of the above.
The Correct Answer is :
Personal Account
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
565. Premium received on issue of shares is shown inassets side of Balance Sheet
liabilities side of balance sheet
debit side of P & L a/c
credit side of P & L a/c
credit side of cash Account
The Correct Answer is :
liabilities side of balance sheet
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
566. Disccount allowed on issue of shares is shown in assects side of Balance sheet
liabilities side of Balance sheet
credit side of P & L a/c
credit side of p&L a/c.
debit side of share capital a/c.
The Correct Answer is :
assects side of Balance sheet
Marks: 2+ 0.5-
Marks:
2+ 0.5-
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
567. Overdraft facility is given by the bank only to such customer who already has------Marks:
2+ 0.5-
Saving bank a/c
Fixed Deposit a/c
Recurring a/c
Current a/c
Any of the above
The Correct Answer is :
Current a/c
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
568. In the new formats of final accounts of a bank, Balance Sheet consist of Schedule No1 to------ and profit &loss a/c from Schedule No. 13 to---------Marks: 2+ 0.55:16
7:16
12:16
10;14
6:12
The Correct Answer is :
12:16
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
569. Claims against the bank not acknowledged debt is a contingent liability and is shown in
Schedule No-------- of the balance sheet.
Marks: 2+ 0.55
7
12
15
16
The Correct Answer is :
12
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
570. Non -banking asset acquired in satisfaction of claims are shown under Schedule No 11
bearing the heading-----Marks: 2+ 0.5Other Asset
Non banking Asset
Advances
Investments
Money at Call and Short Notice.
The Correct Answer is :
Other Asset
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
571. When the report of bad financial position of a customer is recived , the bank for the
interest due, debits Customer's a/c and credits
Marks: 2+ 0.5Interest a/c
Interest Suspense a/c
Oustanding Interest a/c
Accrued Interest a/c
None of the above
The Correct Answer is :
Interest Suspense a/c
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
572. Which one of the following statements is ' true'
Marks:
2+ 0.5-
State Bank of India is not a nationalised bank
Schedule No.9 10 11 and 12 are shown in profit & loss Account of a bank.
Rebate on bills discounted is the discount recived by bank in the previous year.
Two or more persons cannot take a joint loan from a bank.
Bank's advanced include loans,cash credits, overdrafts,and discounting and purchase of bills.
The Correct Answer is :
Bank's advanced include loans,cash credits, overdrafts,and
discounting and purchase of bills.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
573. Which one of the following statements is 'false'
Marks: 2+ 0.5A bank must at least 20% of net profits of the year prior to declaration of dividend to
statutory reserve , unless the central government condones this binding.
slip system in a bank is not a diffrent accounting system but a method of rapid posting it. the
books of account.
Schedule 6 deals with ' Other liabilities and Provision' of a bank .
State Bank of india is a nationalised bank.
Non -banking assets are the tangible assetes which a bank recovers as a claim against nonpayment of its advances.
The Correct Answer is :
Schedule 6 deals with ' Other liabilities and Provision' of a bank .
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
574. Banks prepare their accounts for the
Marks: 2+ 0.5Calender Year
Financial Year
Assessment Year
Diwali Year
Co-operative Year.
The Correct Answer is :
Financial Year
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
575. For a bank, Rebate on bills discounted is an item of---an income
an expenditure
an accrued income
Marks:
2+ 0.5-
an income recived in Advance
an asset
The Correct Answer is :
an income recived in Advance
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
576. The heading 'Other Assets'does not include.
Marks:
Gold
Silver
Interest accured
inter- branch adjustments (Dr)
All of the above
The Correct Answer is :
Gold
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
577. A non - banking asset is
Marks:
2+ 0.5-
2+ 0.5-
Furniture, Fixture and Fittings
Office equipment
money at call and short notice
an asset acquired from the debtors in satisfaction of claims against them
None of the above
The Correct Answer is :
an asset acquired from the debtors in satisfaction of claims against
them
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
578. When income of a bank is to be recognised on cash basis, a distinction must be made
between.
Marks: 2+ 0.5Current and non -current assets
Banking and non banking assets
Monetary and non monetary assets
Performing and non- performing assets
Tangible and intengible assets
The Correct Answer is :
Performing and non- performing assets
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
579. A non - performing asset of a bank is
Marks: 2+ 0.5cash balance
cash balance with RBI
Monetary at call and short notice
An asset which cases to generate income
none of the above
The Correct Answer is :
An asset which cases to generate income
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
580. Banks show the provision for Income tax under the head
deposit
Borrowings
Contigent liability
Contigency Accounts
Other Liabilities and provision
The Correct Answer is :
Other Liabilities and provision
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
581. ......... is Peculiar of banking company accounts.
Marks:
Marks:
2+ 0.5-
2+ 0.5-
A.T.M.
Bank Draft.
Cheque Book.
Fixed Deposit.
The Correct Answer is :
Cheque Book.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
582. The various item of assets in the Balance Sheet of banking company are arranged in order
of---------Marks: 2+ 0.5liquidity
permanency
tangibility
floating
any order,
The Correct Answer is :
liquidity
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
583. bills Recivables being Bills for collection appear on -------- side of Balance sheet of
banking company.
Marks: 2+ 0.5only asset side
only liabilities side
both sides
sometimes on asset side and sometimes on liability side.
in one year on asset side and next year liabilities side.
The Correct Answer is :
both sides
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
584. Rebate on bills discounted for a banking company is---an expense
an income
a banking asset
a liability
a non -banking asset.
The Correct Answer is :
a liability
You did not answer the question.
Marks:
2+ 0.5-
Explanation :
undefined
Module : Module D
Chapter : Chapter1
585. A non -banking asset must be disposed of by the banking company within -------Marks:
2+ 0.5-
two years
five years
seven years
one years
ten years
The Correct Answer is :
seven years
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
586. The formats of the profit & loss Account and balance sheet in the case of a banking
company have been revised w.e.f.
Marks: 2+ 0.51st April 1949
1st April 1991
1st April 1992
1st April 2000
1st April 2004
The Correct Answer is :
1st April 1991
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
587. This item is not included in schedule 13 of profit & loss Account of a bank.
income on investment
interest on advances
intrest on borrowings from R.B.I
all of the above
None of the above
The Correct Answer is :
interest on advances
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
588. The regulation of banks in india before 1936 was done
Marks:
under indian Banking Companies Act
Under Banking Regulation Act
Under Companies act
All of the above
None of the Above.
The Correct Answer is :
Under Companies act
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
589. Fourteen major banks were nationalised in the year -------1969
1971
2+ 0.5-
Marks:
2+ 0.5-
Marks:
2+ 0.5-
1973
1993
2000
The Correct Answer is :
1969
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
590. in the amended formats of final accounts of a bank, the number of total schedules
prescribed are----------Marks: 2+ 0.58
10
12
16
20
The Correct Answer is :
16
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
591. Indian Banking companies Act 1949 was changed in 1966 with the new name of ------------Marks: 2+ 0.5Indian banking Regulation Act, 1949
Indian banking Regulation Act, 1966
Indian banking companies Act, 1966
Indian Banking Act , 1966
Banking in india Act , 1966
The Correct Answer is :
Indian banking Regulation Act, 1949
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
592. The rate as percentage of net profits of Statutory Reserve to be maintained by a bank
under Sec.17 of Indian Banking Regulation Act , 1949, is--------Marks: 2+ 0.510%
15%
20%
25%
30%
The Correct Answer is :
20%
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
593. In a banking company, intrest on doubtful debts is credited to--------customer's a/c
Interest Suspense a/c.
Interest a/c.
Accrued Interest a/c
Oustanding Interest a/c.
The Correct Answer is :
Interest Suspense a/c.
You did not answer the question.
Explanation :
undefined
Marks:
2+ 0.5-
Module : Module D
Chapter : Chapter1
594. When Customer get a bill discounted, the bank debits Bills Discounted a/c and credits-----Marks: 2+ 0.5customer a/c
Interest Suspense a/c
Interest a/c
accrued Interest a/c
Oustanding Interest a/c.
The Correct Answer is :
customer a/c
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
595. A and B are partners in the ratio of 5 : 3. They admit C for 1/4th share which he acquires
3/4th from A and 1/4th from B. C pays Rs. 20,000 for his share of goodwill. A and B will be
credited by Rs...... and Rs...... , respectivelyMarks: 2+ 0.5Rs. 5,000: Rs; 15,000
Rs. 10,000; Rs. 10,000
Rs. 15,000; Rs. 5,000
Rs. 12,000; Rs. 8,000
Rs. 8,000; Rs. 12,000
The Correct Answer is :
Rs. 15,000; Rs. 5,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
596. A and B are partners sharing profits in 6 : 3. C is admitted for 1/4th and ratio of A and I
will be .... and the new ratio of all the partners will be....
Marks: 2+ 0.52 : 3; 15 : 8 : 9
3 : 5; 15 : 8 : 9
5 : 3; 9 : 8 : 15
5 : 3; 15 : 9 : 8
3: 5; 15 : 9 : 8
The Correct Answer is :
5 : 3; 15 : 9 : 8
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
597. On the incoming of new partner, assetsand liabilities of the firm are revalued for theMarks:
2+ 0.5-
benefit of the new partner
benefit of the old patners
benefit of the old partners who are sacrificing
benefit of the of new and the old partners
All of the above
The Correct Answer is :
benefit of the of new and the old partners
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
598. Revaluation of goodwill must be effected throughMarks: 2+ 0.5Revaluation a/c
Realisation a/c
Partners' Capital a/cs
P & L a/c
P & L Appropriation a/c.
The Correct Answer is :
Partners' Capital a/cs
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
599. On the admission of a new partner, the balances of reserves abd accumulated profits
transferred toMarks: 2+ 0.5old partners in th old ratio
old partnersin the new ratio
old partners in the sacrificing ratio
old partners in the capital ratio
old and new partners in the new ratio
The Correct Answer is :
old partners in th old ratio
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
600. A is admitted as a new partner and agress to pay Rs. 12,000 as premium/goodwill, but
brings only Rs. 10,000 in cash. The balance of Rs. 2,000 must be debited toMarks: 2+ 0.5A's Capital a/c
A's Current a/c
A's Loan a/c
Revaluation a/c
Goodwill a/c.
The Correct Answer is :
A's Current a/c
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
601. The sum of the shares sacrificed by old partners in favour of the new partner, is equal toMarks:
2+ 0.5-
the total share of the firm
the share given to the new partner
the share retained by the old partners
the share given to new partner less the share gained by the old partners
None of the above.
The Correct Answer is :
the share given to the new partner
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
602. A and B are partners sharing profits and losses in the ratio of 2 : 3. They admit C into the
firm giving him 25% share. If C brings in Rs 30,000 as his share of capital and capitals are to
be kept in the profit sharing ratio, B's capital should beMarks: 2+ 0.5Rs. 36,000
Rs. 45,000
Rs. 48,000
Rs. 54,000
Rs. 60,000
The Correct Answer is :
Rs. 54,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
603. A and B are partners in th ratio of 4 : 3. They admit C who brings in Rs. 35,000 towards
goodwil . The new profit sharing ratio is 3 : 3 : 2. A will getMarks: 2+ 0.5Rs. 15,000
Rs. 20,000
Rs. 27,000
Rs. 30,000
Rs. 35,000
The Correct Answer is :
Rs. 27,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
604. A and B are partners in the ratio of 4 : 1. They admit C into partnership and decid to share
the profit equally in the new firm. C pays for premium/goodwill Rs. 30,000. In the connectionMarks:
2+ 0.5-
A and B will receive Rs. 15,000 eacg.
A will receive Rs. 24,000 and B RS. 6,000.
A will receive the entire Rs. 30,000.
B will receive the entire Rs. 30,000
A will receive Rs. 42,000 and B will pay Rs. 1: 000. Hint. Sacrifice Ratio = Old Ratio-New
Ratio Gaining Ratio = New Ratio -Old Ratio A's scrifice =4/5-1/3=7/15 P's gain
=1/3 /5=2/15 C pay for goodwill for 1/3 ratio = Rs. 30,000 Therefore, for 1 it will be 30,000
X 3/1 therefor, for/15th gain, it will be 30,000 X 3/1X2/15= Rs. 12,000 Thus, B wil pay Rs.
12,000, C will pay Rs. 30,000 and A will receive 12,00+30,000=Rs. 42,000
The Correct Answer is :
A will receive Rs. 42,000 and B will pay Rs. 1: 000. Hint. Sacrifice
Ratio = Old Ratio-New Ratio Gaining Ratio = New Ratio -Old Ratio A's scrifice =4/5-1/3=7/15
P's gain =1/3 /5=2/15 C pay for goodwill for 1/3 ratio = Rs. 30,000 Therefore, for 1 it will be
30,000 X 3/1 therefor, for/15th gain, it will be 30,000 X 3/1X2/15= Rs. 12,000 Thus, B wil pay
Rs. 12,000, C will pay Rs. 30,000 and A will receive 12,00+30,000=Rs. 42,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
605. A and B are partners sharing profits in the ratio 2 : 1. They adnut C as a partner for onethird share which he receives equally from A and B. The newprofit sharing ratio will beMarks:
2+ 0.5-
2:3:4
3:2:4
4:2:3
4:3:2
2 : 4 : 3.
The Correct Answer is :
4:2:3
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
606. Which one of the following statements is true ?
Marks:
2+ 0.5-
When a new partner is admitted, he gets a part of the acumulated profits of the firm
according to his profit sharing ratio.
On admission of a new partner, profit or loss on revaluation is transferred to the old
partner's capital accounts in their new ratio.
Recaluation a/c' is also known as 'P & L Adjustment a/c'.
When, on incoming of a new partner goodwill is inreased under revaluation method, the
goodwill is distrubuted among old partners in their new ratio.
New and sacfifice ratios are the same.
The Correct Answer is :
Recaluation a/c' is also known as 'P & L Adjustment a/c'.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
607. Which one of the following statements is false ?
Marks: 2+ 0.5The amount of goodwill brought in by the new partner is distrubuted amongst the old
partners in their sacrifice ratio.
When Goodwill a/c appears in the books at proper value, the new partner has to pay
proportionate amount by way of goodwill, to the old partners.
In case Memorandum Revaluation Account is opened, the assest and liabilities appear the
new Balance Sheet at their old values.
The amount of goodwill credited to the old partner on admission of a new partner, may be
withdrawn by them in any proportion.
On admission of a new partner, profit or loss on revaluation is transferred to th old partners'
capital accounts in their old ratio.
The Correct Answer is :
When Goodwill a/c appears in the books at proper value, the new
partner has to pay proportionate amount by way of goodwill, to the old partners.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
608. A, B and C are partners sharing profits and lossed in the ratio of 4: 3: 2. D is admitted for
1/10 share. The new ratio will beMarks: 2+ 0.54:4:3:2
4:3:2:1
5:4:3:2
1:2:3:4
None of the above.
The Correct Answer is :
4:3:2:1
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
609. Profit or loss on revaluation is transferred to Capital Account of
old partners
new partners
all partners
None of the above
The Correct Answer is :
old partners
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
610. The sacrifies of an old partners is equal tonew share-old share
old share-new share
None of the above.
The Correct Answer is :
old share-new share
Marks:
2+ 0.5-
Marks:
2+ 0.5-
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
611. If new partners brings the amount of goodwill in capital, goodwill is transffered to the old
partners inMarks: 2+ 0.5old ratio
new ratio
sacrifice ratio
gaining ratio
None of the above
The Correct Answer is :
sacrifice ratio
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
612. If Goodwill a/c is raised after the admission of a new partner, it will be credited toMarks:
2+ 0.5-
New Partner's Capital a/c
Old Partner's Capital a/cs
All Partner's Capital a/cs
New Partner's Drawings a/cs
All Partner's Drawings a/cs.
The Correct Answer is :
All Partner's Capital a/cs
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
613. Goodwill brought in cash by new partner is called-
Marks: 2+ 0.5-
Capital
Loan
Premium
Drawing
None of the above.
The Correct Answer is :
Premium
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
614. If nothing otherwise metioned, on admission of a new patner, th e old ratio is itselfMarks:
2+ 0.5-
new ratio
sacrifies ratio
gaining ratio
All of the above
None of the above.
The Correct Answer is :
sacrifies ratio
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
615. On the admission ofa new partner, an increase on the value of an asset is debited to Marks:
2+ 0.5-
Revaluation a/c
Old Partner's Capital a/cs
Asset a/c
New Partner'a Capital a/c
None of the above.
The Correct Answer is :
Asset a/c
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
616. A and B shared profit in the ratio of 3 : 2. C was admitted asa partner for1/5th share. He
acquirs 3/20th from B. The new profit sharing ratio would beMarks: 2+ 0.510 : 6 : 4
6 : 10 : 4
8:8:4
9:7:4
12 : 4 : 4
The Correct Answer is :
9:7:4
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
617. Goodwill of a firm of A and B is valued at Rs. 60,000. Goodwill appears in th books at Rs.
24,000. C is admitted for 1/4th share. He will be required to bring for goodwillMarks: 2+ 0.5Rs. 21,000
Rs. 9,000
Rs. 15,000
Rs. 6,000
Rs. 36,000.
The Correct Answer is :
Rs. 9,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
618. A and B are partners sharing profits in the ratio of 3 : 1. C is admitted for 1/4th share. The
profit sharing ratio will beMarks: 2+ 0.59:3:4
3:4:9
4:9:3
3:9:4
9:4:3
The Correct Answer is :
9:3:4
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
619. A and B share profits in the ratio of 4/5th and 1/5th. C is admitted for 1/2 share. The
profit sharing ratio will beMarks: 2+ 0.51
4
5
5
1
:
:
:
:
:
5
1
1
4
4
:
:
:
:
:
4
5
4
1
5
The Correct Answer is :
4:1:5
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
620. Computerised Accounting means accounting performed by-
Marks:
clerk
accountant
director
computer
top management
The Correct Answer is :
computer
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
621. regular back-up of data is required to guard against-
2+ 0.5-
Theft of the computer
Theft of the software
Loss of data
loss of printer
None of the above
The Correct Answer is :
Loss of data
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
622. Computerised accounting software may be-
Marks:
Marks:
2+ 0.5-
2+ 0.5-
single user type software
double user type software
triple user type software
multiple user type software
all of the above
The Correct Answer is :
all of the above
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
623. The set of instructions written by programmer for a computer is called-
Marks: 2+ 0.5-
software
hardware
Computer program
software program
Computer program- software program
The Correct Answer is :
Computer program- software program
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
624. The central processing unit in a computer coprises the following-
2+ 0.5-
Control unit and logical unit
Storage unit, control unit and output unit
Marks:
Input unit, output unit and control unit
input unit, logical unit and output unit
Control unit, logical unit and storage unit
The Correct Answer is :
Control unit and logical unit
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
625. A small enterprise generally usesMarks: 2+ 0.5Bespoken system
Customised software
system software
off the shelf software
None of the above
The Correct Answer is :
off the shelf software
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
626. Internet storage in a computer is known as-
Marks:
2+ 0.5-
Back storage
Primary storage
secondary storage
Tertiary storage
none of the above
The Correct Answer is :
Primary storage
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
627. In a computer system, the formula that is worked in different ways to ensure that the
same results will follow, is calledMarks: 2+ 0.5Layout cheek
Limit ckeck
Redundant check
Cross check
Comparability check
The Correct Answer is :
Cross check
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
628. Application software is concerned with-
Marks: 2+ 0.5-
the programming used to control input unit
the programming used to control output unit
the programming to execute specific functions
the programming used to control the operations of the control unit
None of the above
The Correct Answer is :
the programming to execute specific functions
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
629. Debugging is done by-
Marks:
2+ 0.5-
programme coding
programme design
programme maintenance
programme varification
None of the above
The Correct Answer is :
programme varification
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
630. Which one of the following statement is 'true' ?
Marks:
2+ 0.5-
primary storage is a part of CPU
a set of programmes intended to control the computer is called application software
A spread sheet6 is an electronic Worksheet with columns and rows for manipulation of
accounting and statistical data
MICR is device that helps to position the cursor
Input is not the bridge between data and the processing
The Correct Answer is :
A spread sheet6 is an electronic Worksheet with columns and rows
for manipulation of accounting and statistical data
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
631. Which one of the following statement is 'false'?
Marks: 2+ 0.5Personal computer is a micro-computer which is intended to process the individual needs of
an individual
Software which is tailor-made to meet the requirements of a big enterprise is called
'Bespoken'
speed and accuracy distinguish the manual accounting and computerised accounting
Primary storage is a part of CPU
parity cheek ensures that information is not lost5 or garbled
The Correct Answer is :
Primary storage is a part of CPU
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
632. Wthich one of the following statement is ture?
Marks: 2+ 0.5If premium on joint life policy of partners is treated as a business expenditure, it is shown in
the assets side of the balance sheet of the firm.
the Premium on joint life policy of the partners is always treated as an investment.
If Goodwill a/c is raised at full value and written off, the capital a/cs of the continuing
partners will be debited in gaining ratio while writing off goodwill.
the executors of a deceased partner are cntitled to receive a share in the Profit for the period
between the last financial statements to the date of the death.
New and gaining ratios among the continuing parthers are always the same.
The Correct Answer is :
the executors of a deceased partner are cntitled to receive a share in
the Profit for the period between the last financial statements to the date of the death.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
633. which one of the following statements is false?
Marks: 2+ 0.5-
Retirement of a partner means that a partner breaks off all his relations as partner with all
ofther partners and withdraws himself from the firm.
The entire share of the retiring partner may sometimes be acquired or purchased by one or
some partners.
Profit or loss on revaluation is transferred only to continuing partners' capital accounts.
New and gaining ratios among continuing partners may be the same or different.
A dormant or sleeping partner need not give a public notice of his retirement.
The Correct Answer is :
Profit or loss on revaluation is transferred only to continuing
partners' capital accounts.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
634. In the event of death of a partner, the accumulated profits and losses are shared by the
partner in
Marks: 2+ 0.5capital ratio
new ratio
old ratio
sacrifice ratio
gaining ratio
The Correct Answer is :
old ratio
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
635. On the death of a Partner, the amount received from join life policy should be credited to
the capital accoundts of Marks: 2+ 0.5all Partners including the deceased Partner`
only continuing Partners
only the deceased Partner
All of the above.
None of the above.
The Correct Answer is :
all Partners including the deceased Partner`
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
636. A, B and C are Parnters sharing the Profit in the ratio of 2 : 2 : 1. C retired. The new profit
sharing ratio between A and B will beMarks: 2+ 0.51:1
2:1
3:1
1:1
1:2
The Correct Answer is :
1:1
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
637. X, Y, Z are partners sharing profits equally. Y retires, Goodwill appearing in the books is
Rs. 60,000. It is valued ar Rs. 1,20,000 Y will be credited withMarks: 2+ 0.5Rs. 60,000
Rs. 40,000
Rs. 20,000
Rs. 1,20,000
None of the above.
The Correct Answer is :
Rs. 20,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
638. A, B and C are partners sharing profits and losses in the ratio of 5 : 3 : 2. B retires. His
share was taken up by A and C in the ratio of 2 : 1. The new share between A and C will beMarks:
2+ 0.5-
3:7
5:2
7:3
2:5
5 : 7.
The Correct Answer is :
7:3
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
639. Old profit sharing ratio minus new profit sharing ratio is equal to-
Marks: 2+ 0.5-
sacrificing ratio
gaining ratio
capital ratio
old ratio
None of the above.
The Correct Answer is :
sacrificing ratio
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
640. A retiring Partner continues to be liable for obligation incurred after his retirement, ifMarks:
2+ 0.5-
he does not give Public notice
he starts a similar business
unpaid amount is transferred to his loan a/c
he gives a public notice
None of the above.
The Correct Answer is :
he does not give Public notice
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
641. Premium paid on Joint Life Policy of Partners isMarks:
debited to P & L a/c
credited to P & L a/c
debited to Partners' Capital a/cs
credited to Partners' Capital a/cs
None of the above.
The Correct Answer is :
debited to P & L a/c
You did not answer the question.
Explanation :
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2+ 0.5-
Module : Module D
Chapter : Chapter1
642. On the retirement or death of a partner, Profit or loss on revaluation is transferred to
Partners' Capital a/cs/ Current a/cs inMarks: 2+ 0.5old Profit sharing ratio
sacrificing ratio
gaining ratio
capital ratio
new ratio of the remaining partners.
The Correct Answer is :
old Profit sharing ratio
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
643. If goodwill is raised at full value in the books of the firm on retirement of a partner, and is
to be written off completely, then the capital accounts of the remaining partners will be debited
inMarks: 2+ 0.5old Profit sharing ratio
new profit sharing ratio
sacrificing ratio
gaining ratio
capital ratio
The Correct Answer is :
new profit sharing ratio
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
644. Joint Life Policy Reserve a/c is transfered to-
Marks:
2+ 0.5-
the Capital a/c of the retiring Partner
all Partners in the old Profit sharing ratio
remaining Partners in their new ratio
retiring Partner and remaining Partner who sacrifices his ratio
None of the above.
The Correct Answer is :
all Partners in the old Profit sharing ratio
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
645. Sec. 37 of the Indian Partnership Act.,1932 Provides interest on the amount left by the
retiring or deceased Partner at
Marks: 2+ 0.54%
5%
6%
Bank rate
Prime lending rate.
The Correct Answer is :
6%
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
646. Which one of the following statement is ' false '?
Marks: 2+ 0.5-
Creating a reserve for discount on creditors is not srictly according to the principal of
conservatism .
' Salary paid in advance ' is not an expence because neither decreases assets nor increases
liailities .
Stock at the end appearing in trial balance is taken only to Balance sheet .
The terms 'Accured Income 'and ' Income received in advance 'are the same thing
Trading a/c shows gross profit / gross loss while P & L a/c shows net profit / net loss .
The Correct Answer is :
The terms 'Accured Income 'and ' Income received in advance 'are
the same thing
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
647. Stock appearing outside the Trial balance will be shown in Marks: 2+ 0.5Trading a/c
P & L a/c
Balance sheet
Trading a/c and Balance sheet
P & L a/c and Balance sheet
The Correct Answer is :
Trading a/c and Balance sheet
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
648. The balance of petty cash is Marks: 2+ 0.5an expence
an income
an asset
a liability
None of the above
The Correct Answer is :
an asset
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
649. An asset has Marks: 2+ 0.5debit balance
credit balance
somatimes debit and sometimes credit balance
debit balance in the beginning and credit balance at the end
None of the balance
The Correct Answer is :
debit balance
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
650. A liabilities has Marks: 2+ 0.5debit balance
credit balance
sometimes debit and sometimes credit balance
credit balance in the beggining debit balanceat the end
None of the above
The Correct Answer is :
credit balance
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
651. Net profit is........ of the firm.
Marks:
an asset
a liability
an expenditure
an extra ordinary income
None of the above
The Correct Answer is :
a liability
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
652. Net loss is ............. 0f the firm .
2+ 0.5-
Marks:
2+ 0.5-
an asset
a liability
an income
an extra ordinary expenditure
None of the above
The Correct Answer is :
an asset
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
653. Which of the following is a contigent liability ?
Marks:
2+ 0.5-
Bank overdraft
Short-term loans
Long- terms loans
Outstanding salaries
Liabilities on bills discounted.
The Correct Answer is :
Liabilities on bills discounted.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
654. Goods costing Rs. 8,000 were damaged by fire . insurance company admitted a claim of
Rs. 6,500. Profit & Loss a/c will be debited with Marks: 2+ 0.5Rs. 8,000
Rs. 6,500
Rs. 4,500
Rs. 1,500
None of the above
The Correct Answer is :
Rs. 1,500
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
655. A manager is entitled to receive a commission @ 5 % on net profit after charging such
commission . Gross profit of the firm is Rs. 2,00,000 and selling and administrative expence
amount to Rs .1,47,000. His commission will be Marks: 2+ 0.5Rs.5,250
Rs.2,625
Rs.2,500
Rs.10,000
Rs. 52,500
The Correct Answer is :
Rs.2,500
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
656. The output of financial accounting is -
Marks:
2+ 0.5-
the measurment of accounting income
the measurment of taxable income
the preparation of financial statements
the preparation of financial position
All the above
The Correct Answer is :
the preparation of financial statements
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
657. Income of a business concern Marks: 2+ 0.5is measured as per the requirment of tax authorities.
is measured as per the articles of association .
is subjectives and influenced by the wishes of the accountant .
can never be measured objectivly to give an accurate figure .
None of these .
The Correct Answer is :
is subjectives and influenced by the wishes of the accountant .
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
658. The basic objective of accounting is to Marks: 2+ 0.5satisfy the legle requirments.
satisfy the listing requirments of stock exchange.
report to the shareholder.
provide quantitative information to the users of financial statement.
None of the above
The Correct Answer is :
provide quantitative information to the users of financial statement.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
659. Information about the performance of a business enterprise is disclosed by Marks: 2+ 0.5Trading a/c
Trading and P&L a/c
Balance sheet
Cash Flow Statement
Both ( 3) and ( 4 ).
The Correct Answer is :
Trading and P&L a/c
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
660. External reporting is the result of Marks:
2+ 0.5-
Financial Accounting
Management Accounting
Cost Accounting
Human Resource Accounting
Inflation Accounting
The Correct Answer is :
Financial Accounting
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
661. Special purpose financial statement are prepared by Financial Accountant
Management Accountant
Cost Accountant
Both (1) and (2)
Both (3) and (4)
The Correct Answer is :
Management Accountant
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
662. Assets are usually shown in the balance sheet at revalud cost
replacement cost
net realisable cost
unexpired cost
None of the above
The Correct Answer is :
unexpired cost
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
663. The most acceptable way of measuring income is -
Marks:
2+ 0.5-
Marks: 2+ 0.5-
Marks:
2+ 0.5-
to match the costs with revenue
to apply normal rate of return on capital invested
to apply the average rate of return in industry on capital employed
to find out the difference in net worth as on two dates
None of the above .
The Correct Answer is :
to match the costs with revenue
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
664. During a period of rising prices , higher profits can be shown by valuing stick at Marks:
2+ 0.5-
FIFOP Method
LIFO Method
NIFO Method
Simple Average Price Method
Weight Average Price Method
The Correct Answer is :
FIFOP Method
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
665. Balance Sheet is prepared primarily with the following group in view owners
debtors
creditors
management
government.
The Correct Answer is :
owners
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
666. Goodwill is an example of Marks:
Marks:
2+ 0.5-
fixed asset
fictitious asset
current asset
tangible asset
intangible asset.
The Correct Answer is :
intangible asset.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
667. Which one of the following is an example of an intangible asset ?
Building
Investment
Discount on issue of shares and debentures
Copyright
Preliminary expences.
The Correct Answer is :
Copyright
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
668. Which one of the following is an example of current asset ?
Machinery
Vehicles
Patents
Prepaid expences
Goodwill.
The Correct Answer is :
Prepaid expences
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
669. Which one of the following is an example of current liability ?
Share Premium
Workmen's composation Fund
10% Debenture
Bank Overdraft
Bank Loan taken for two years .
The Correct Answer is :
Bank Overdraft
Marks:
Marks:
2+ 0.5-
2+ 0.5-
Marks:
2+ 0.5-
2+ 0.5-
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
670. Balance sheet is Marks: 2+ 0.5a statement showing flows of fund
a statement is of position
a statement showing income
a statement showing only current assets
a statement showing only fixed asset
The Correct Answer is :
a statement is of position
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
671. The excess of current assets over current liabilities is called -
Marks: 2+ 0.5-
Gross Working Capital
Net Working Capital
Gross tangible worth
Net tangible worth
Net worth.
The Correct Answer is :
Net Working Capital
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
672. Unexpired income as on the date of Balance Sheet, is shown as an expenditure
a revenue
an asset
a liability
None of the above .
The Correct Answer is :
a liability
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
673. Both assets and owners' eqity would be increased by -
Marks:
Proprietor' drawing
Payment from debtors
Payment to creditors
Purchase of fixed asset on credit
Capital brought in by the proprietors.
The Correct Answer is :
Capital brought in by the proprietors.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
674. The net worth of a limited company ia equal to Marks: 2+ 0.5Fixed asset - fixed liabilities
Current asset - Current liabilities
Fixed Asset - Current Liabilities
Marks:
2+ 0.5-
2+ 0.5-
Fixed Liabilities - Current Liabilities
The total of shareholder' funds.
The Correct Answer is :
The total of shareholder' funds.
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
675. An outstanding expence can best be described as an amount -
Marks:
2+ 0.5-
not paid and not currently matched with revenue
not paid and currently matched with revenue
paid and not currently matched with revenue
paid and currently matched with revenue
All of the above
The Correct Answer is :
not paid and currently matched with revenue
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
676. The terms ' Reserve ' in financial statement signifiesMarks: 2+ 0.5the amount of provision for bad debts
the amount of provision taxation
the amount set apart for contigent liabilities
the amount of provision for depreciation
the amount of profits set a part for general or specific purpose .
The Correct Answer is :
the amount of profits set a part for general or specific purpose .
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
677. In the total assets increased by Rs.1,50,000 and the total liabilities increased by Rs.
60,000 in the same accounting period , the capital is that period would Marks: 2+ 0.5decreased by Rs. 60,000
decreased by Rs. 90,000
increased by Rs. 60,000
increased by Rs 90,000
increased by Rs 2,10,000.
The Correct Answer is :
increased by Rs 90,000
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
678. Outstanding expences appering in the trial balance are shown in Debit side of P& L a/c only
Credit side of P&L a/c only
Assets side of Balance Sheet only
Liabilities side of Balance Sheet only
Debit side of P& L a/c and asset side of Balance Sheet
The Correct Answer is :
Liabilities side of Balance Sheet only
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
Marks:
2+ 0.5-
679. Which one of the following statement is 'true ' ?
Marks:
2+ 0.5-
The accounting policies do not differ from enterprise to enterprise
Reserve of a business enterprise alway represent the amount which can spend readily
The figures as shown in the balance sheet , are the future estimated values of assets and
liabilities .
Balance Sheet is a statement of assets and liabilities as on a given date .
Total capital employed by a company is the sum of shareholder' funds plus current liabilities
.
The Correct Answer is :
Balance Sheet is a statement of assets and liabilities as on a given
date .
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
680. Which one of the following statement is ' false '?
Marks: 2+ 0.5A Balance Sheet can only indicate the items that can be expressed in terms of money.
Security , capable of being realised and not held with the intention of retaini9ng it for more
than one year , is a current asset .
An iron safe is a fixed asset for a medical shop and current asset for a shop dealing in iron
safes.
Liquidity is the ability of an organisationto meet current liabilities out of its current assets .
The closing stock of office stationary is credited to Trading a/c
The Correct Answer is :
The closing stock of office stationary is credited to Trading a/c
You did not answer the question.
Explanation :
undefined
Module : Module D
Chapter : Chapter1
681. The purpose of finacial statement / final accounts is to as certain
Marks: 2+ 0.5profit
profit or loss
value of assets
value of liabilities
profit or loss and financial position
The Correct Answer is :
profit or loss and financial position
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
682. Financial statement are prepared
Marks: 2+ 0.5at the end of calender year
at end of accounting year
at the end of assessment year
on every diwali
on every christmas
The Correct Answer is :
at end of accounting year
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
683. Gross profit is ascertained by preparing Marks:
Trial balance
trading a/c
profit & loss a/c
2+ 0.5-
balance sheet
all of the above
The Correct Answer is :
trading a/c
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
684. Suspence a/c appering in the trial balance is shown in the Ledger
Trading a/c
P & L A/C
Balance sheet
All of the above
The Correct Answer is :
Balance sheet
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
685. Balance sheet is prepared to know -
Marks:
Marks: 2+ 0.5-
Gross profit
Net profit
Balance of accounts
Errors
Financial position
The Correct Answer is :
Financial position
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
686. The statement showing assets and liabilities is -
Marks:
2+ 0.5-
Trial balance
Trading a/c
P & l a/c
Balace sheet
None of these
The Correct Answer is :
Balace sheet
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
687. Working capital is Marks: 2+ 0.5Proprietor own capital
Borrowed capital
Amount of of sale
all assets - all libilities
Current assets - current libilities
The Correct Answer is :
Current assets - current libilities
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
688. Which one of the following statement is ' false '?
Marks:
2+ 0.5-
2+ 0.5-
Capital = Assests - Liabilities
Balance sheet is an account
Balance sheet may be prepared by half- yearly or annually
Cash will be the first item is assets side of balance sheet if assets are arranged in the order
of liqidity
Capital will be the last item in the liabilities side if liabilities are arranged in the order of
liqidity.
The Correct Answer is :
Balance sheet is an account
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
689. Sales are equals Marks: 2+ 0.5Gross profit - Cost of goods sold
Gross profit + Cost of goods sold
Cost of goods sold - Gross profit
Gross profit - Net profit
Gross profit + Net profit
The Correct Answer is :
Gross profit + Cost of goods sold
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
690. Goods distributed as samples should be credited to Purchase a/c
Sales a/c
Advertisement a/c
P & L a/c
None of these above
The Correct Answer is :
Purchase a/c
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
691. Intrest on Drawing is Marks: 2+ 0.5Expenditure for the business
Income for the business
Asset for the business
Liabilities for the business
None of the above
The Correct Answer is :
Income for the business
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
692. Outstanding salaries are shown as Marks: 2+ 0.5Expenditure
Income
Asset
Liabilities
None of the above
The Correct Answer is :
Liabilities
You did not answer the question.
Marks:
2+ 0.5-
Explanation :
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Module : Module D
Chapter : Chapter1
693. Which one of the following statement is 'true' ?
Marks:
2+ 0.5-
Stock at the end appering in the trial balance is taken only to the Balance sheet
All intangible assets are fictitious assets
Goods taken out by the proprietor from the business for personal use are credited to sales
a/c .
The current liabilities mean the liabilities which are payable after a year .
Premium paid on the life policy of the proprietor is debited to P & L a/c .
The Correct Answer is :
Stock at the end appering in the trial balance is taken only to the
Balance sheet
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
694. Dividened can be paid out ofMarks: 2+ 0.5General Reserve
Capital Reserve
Share Premium
Pre-incorporation Profits
All of the above
The Correct Answer is :
General Reserve
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
695. Share Premium Account is shown in the liabilities side of the Balance Sheet under the
heading Marks: 2+ 0.5Share Capital
Reserves and Surplus
Current Liabiliities and Provisions
Contigent Liabilities
Secured Loans
The Correct Answer is :
Reserves and Surplus
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
696. Claims against the company nnot acknowledged as debts is acurrent liability
secured loan
unsecured loan
provision
Contingent
The Correct Answer is :
Contingent
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
697. Indicate the item that figures in P&L a/c below the lineProvision for doubtful debts
Marks:
Marks:
2+ 0.5-
2+ 0.5-
provision for taxation
Provision for gratuity payable to employees
Contribution to Provident Fund
Transfer to Sinking Fund
The Correct Answer is :
Transfer to Sinking Fund
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
698. Advance payment of tax is in the nature of -
Marks: 2+ 0.5-
Prepaid Expenditure,
Revenue Expenditure
Asset
Liability
Contingent Liability
The Correct Answer is :
Prepaid Expenditure,
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
699. Provision for taxation on current profits iis shown-
Marks:
2+ 0.5-
above the line in P&L a/c
below the linne in P & L a/c
above the line in P & L a/c and on the liabilities side of Balance Sheet
below the line in P & L a/c and on the liabilities side of Balance Sheet
below the line in P & L a/c and on assets side of Balance Sheet
The Correct Answer is :
above the line in P & L a/c and on the liabilities side of Balance Sheet
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
700. Divisible profits do not includeMarks: 2+ 0.5Revalution Reserve
General Reserve
Revenue Reserve
Balance of Profit & Loss a/c
Subsidies provided by government in pursurance of guarantee for dividend
The Correct Answer is :
Revalution Reserve
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
701. Amount set aside to meet losses due to bed debts isMarks: 2+ 0.5an asset
a liability
a contingent liability
a provision
a reserve
The Correct Answer is :
a provision
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
702. Tax assessed in pprevious year was Rs.30,000 while the provision for taxation in that year
was Rs,40,000. The adjustment for this in the current year would beMarks: 2+ 0.5a debit of Rs,10,000 above the line P & L a/c
a debit of Rs. 10,000 below the line in P & L a/c
a credit of Rs. 10,000 above the line in P&L a/c
a credit of Rs. 10,000 below the line in P&L a/c
a credit of Rs. 30,000 above the line in P&L a/c
The Correct Answer is :
a credit of Rs. 10,000 below the line in P&L a/c
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
703. Preliminary expense is an example ofMarks: 2+ 0.5Current assets
Fixed assets
Fictitious assets
Tangible assets
Prepaid expenditure
The Correct Answer is :
Fictitious assets
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
704. which one of the following statements is ;true;?
Marks: 2+ 0.5-
Provision is maintained for unknown liabilities
Livestock is a current asset.
Preliminary expenses are current liabilities.
Contingent liabilities are shown as a footnote.
Public deposits with the company are shown in the assets side of the Balance Sheet.
The Correct Answer is :
Contingent liabilities are shown as a footnote.
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
705. Which one of the following statements is :false ?
Marks: 2+ 0.5Discount on issue of shares and debentures is misccellancous expendiure
Bills receivables are shown under the heaing loans and advances.
Unclaimed dividend is currrent liabilities
Proposed dividend is shown under the heading R serves and Surplus
Goodwill of the company is shown under the heading :Fixed Assets.
The Correct Answer is :
Proposed dividend is shown under the heading R serves and Surplus
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
706. which one of the following statements is true?
Marks: 2+ 0.5final dividend ccan be declared by directors.
arrers of cumulative preference dividend is a current liability
loose tools: appears as a fixed asset in the Balance Sheet of a company.
a dividend can be paid on callls in advance.
Managerial remuncratiojn is calculated before providing for taxation
The Correct Answer is :
Managerial remuncratiojn is calculated before providing for taxation
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
707. The prescribed form of Balance Sheet for the Companies has been given in the Schedule.
Marks:
2+ 0.5-
VI Part I
VI Part II
VI Part III
VI Part IV
VI Part V
The Correct Answer is :
VI Part IV
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
708. .....is shown under the heading :Fised Assetrs?
Patents and Trademarks
Livestock
Goodwill
All of the above
None of the above.
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
709. Share Capital is shown in the Balance Sheet as -
Marks:
2+ 0.5-
Marks:
2+ 0.5-
Autnorised
Issued
Subscribed and Paid up
All of the above
None of the above.
The Correct Answer is :
All of the above
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
710. Current liabilities are the liabilities which are to be paid at the most within.....months.
Marks:
2+ 0.5-
3
6
9
12
24
The Correct Answer is :
12
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
711. Lons as per the Schedule VI are classified as _
Secured and unsecured
Cumulative and non-cumulative
Marks:
2+ 0.5-
Redeemable and irredeemable
Fixed and current
All of the aboive,
The Correct Answer is :
Secured and unsecured
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
712. According to the prescribed order of assets under Schedule VI Part I ...... assets should be
shown first of all.
Marks: 2+ 0.5loans and advances
currents
fixed investments
investments
None of the above.
The Correct Answer is :
fixed investments
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
713. Workmen's Compensation Fund is a -
Marks:
2+ 0.5-
provision
reserve
surplus
current liability
loan.
The Correct Answer is :
provision
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
714. Preparation of final accounts of a company is governed by the Section of the Companies
Act.
Marks: 2+ 0.5203
209
210
211
212
The Correct Answer is :
210
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
715. Section..... of the Companies Act requires the Balance Sheet to be prepared in the
precribed form.
Marks: 2+ 0.5208
209
210
211
212
The Correct Answer is :
211
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
716. Section..... of the Companies Act makes compulsory for every company to keep certain
books of accounts.
Marks: 2+ 0.5208
209
210
211
212
The Correct Answer is :
209
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
717. Dividends are usually paid on -
Marks:
2+ 0.5-
Authorised Share Capital
Issued Share Capital
Subscribed Share Capital
Paid up Share Capital
Called up Share Capital.
The Correct Answer is :
Paid up Share Capital
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
718. Interest on capital allowed to partners should be treated as
Marks: 2+ 0.5-
an appropriation of profits
a charge against profits
a charge when profits are not available
an appropriation when profits are not available
an appropriation when profits are available
The Correct Answer is :
an appropriation of profits
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
719. A partner's capital balance at the end of the year is Rs. 1,00,000 after adjusting for
drawings Rs. 20,000 and his share in the profits Rs. 10.000. Interest payable to him at 5% p.a.
on the opening capital balance, would be
Marks: 2+ 0.5Rs. 3,500
Rs. 4,000
RS. 4,500
RS. 5,000
Rs. 5,500
The Correct Answer is :
Rs. 5,500
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
720. Which one of the following statements is true?
Marks:
2+ 0.5-
A partner who sleeps for 12 hours a day, is called 'sleeping partner'.
A Quasi partnership protects the third parties who may make a nonpartner liable.
Law makes a difference to liabilities towards third parties
Under the Indian Partnership Act, 1932, all the partners jointly and severally have limited
liabilities towards third parties
Under the Indian Partnership Act, 1932, limited partnership is permitted
The Correct Answer is :
A Quasi partnership protects the third parties who may make a
nonpartner liable.
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
721. Which one of the followiing statements is false?
Marks: 2+ 0.5A sleeping or dormant partner is normally not interested in the day-to-day working of the
partnership
Law makes no difference between a working partner and sleeping partner in reference to
liabilities towards third parities
Under the Indian Partnership Act, 1932, all the partners, working or sleeping, jointly and
severally have unlimited liabilities towards third parties
Limited partnership means partnership for a limited period of time.
A quasi or nominal partner is in fact not a partner in the firm, but it estops him from
disclaiming his status as a partner vis-a-vis third parties if he keeps quiet
The Correct Answer is :
Limited partnership means partnership for a limited period of time.
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
722. Which one of the following is true?
Marks: 2+ 0.5There can be minimum three and maximum thirty partners in a partnership firm.
A partnership firm enjoys a separate legal entity apart from its partners.
Partnership deed is not in writing.
Partners' Current Accounts are maintained in case of Fluctuating Capital System.
No limit regarding maximum number of partners in a firm has been prescribed by the Indian
Partnership Act, 1932.
The Correct Answer is :
No limit regarding maximum number of partners in a firm has been
prescribed by the Indian Partnership Act, 1932.
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
723. Which one of the following statements is false?
Marks: 2+ 0.5In the absence of any contract of the contrary, partners are required to share profits and
losses equally.
If it is proved that there has been definite loss to the firm owing to negligence of a partner,
that partner will make good such loss.
If the partnership deed is silent on certain points, the relevant provisions of the Partnership
Act, 1932 will apply
Partners are mutual agents for each other.
Partners are not mutual agents for each other.
The Correct Answer is :
Partners are not mutual agents for each other.
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
724. An ordinary partnership firm can have maximum
Marks: 2+ 0.510 partners
20 partners
50 partners
100 partners
any number of partners.
The Correct Answer is :
20 partners
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
725. A partnership firm engaged in banking business can have maximum
Marks:
5 partners
10 partners
20 partners
50 partners
any number of partners
The Correct Answer is :
10 partners
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
726. Partners' Current Accounts are opened when their captial accounts are
fixed
fluctuating
in both of the above
having zero balances
None of the above
The Correct Answer is :
fixed
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
727. In absence of an agreement to the contrary, the partners shall
Marks:
2+ 0.5-
Marks: 2+ 0.5-
2+ 0.5-
be paid salaries
not be paid salaries
be paid salaries upto Rs 1,000 p.m.
be paid salaries if they are working partner.
be paid salaries if they are sleeping partners
The Correct Answer is :
not be paid salaries
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
728. Suppose, the partnership deed provides for a salary of Rs. 5,000 p.m. to partner X. If X
withdraws only Rs. 3,000 in a month, the remaining Rs. 2,000 will be
Marks: 2+ 0.5debited to his Capital a/c
credited to his Drawing a/c
credited to his Current a/c
credited to P & L Adjustment a/c
None of the above
The Correct Answer is :
credited to his Current a/c
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
729. In the absence of an agreement to the contrary, If partners sleeping or working share
profits and losses
Marks: 2+ 0.5in the ratio of their orginal captial
in the ratio of their latest captial
in the ratio of average captial
in equal ratio
None of the above
The Correct Answer is :
in equal ratio
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
730. In abscence of any provisions in the partnership agreement, partners can charge on the
loans given by them to the firm
Marks: 2+ 0.5interest at 6% p.a.
interest at 12% p.a.
interest at 15% p..a.
interest at 10% p.a.
no interest
The Correct Answer is :
interest at 6% p.a.
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
731. The current account of a partner
Marks:
2+ 0.5-
will always have a debit balance
will always have a credit balance
will never have a balance
may have a debit or a credit balance
None of the above
The Correct Answer is :
may have a debit or a credit balance
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
732. Goodwill in a partnership firm can be valued or revalued on the occasion of
only on incoming of a partner
only on outgoing of a partner
only on dissolution of a firm
on all the above
None of the above
The Correct Answer is :
on all the above
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
733. The balance of a partner's captial account will get reduced wish this amount
Partner's salary
Interest on partner's capital
Interest on partner's drawings
Interest on partner's loan
All of the above
The Correct Answer is :
Interest on partner's drawings
Marks:
Marks:
2+ 0.5-
2+ 0.5-
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1
734. In the absence of any provision in the partnership deed, the partnership Act provides for
Marks:
2+ 0.5-
Interest on drawings
Interest on captials
Interest on advances given by partners
Interest on loans given by creditors
Interest on loans given by banks
The Correct Answer is :
Interest on advances given by partners
You did not answer the question.
Explanation :
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Module : Module D
Chapter : Chapter1