Professional Documents
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2.Book keeping and accounting seem to be synonymous. But they are different in certain
respects. Basing on the differences, match the following.
Book-Keeping Accounting
1.Process a. Final accounts e.Book keeping
2.Purpose b. Transactions f.Analytical
3.Basis c. Repetitive g.Reporting
h.Interpreting &
4. Nature of
d. Recording presenting the final
work
accounts
a. 1 – a, h; 2 – b, f; 3 – c, e;
4 – d, g
b. 1 – d, h ; 2 – a, g ; 3 – b, e
; 4 – c, f
c. 1 - b, f ; 2 - c ; h; 3 - d, g;
4 - a, e
d. 1 - c, g ; 2 - b, f ; 3 - a, h;
4 – d, e
Unit2 - 4 Mark Quiz Questions
1.The firm has certain stock, which is in high demand and
has high market value. The firm followed cost method of Consistency concept
valuation.
A business makes a loss in an year, but the business shall Materiality concept
continue for long time
Accountant of a firm is worried with the total amount of
drawings, the partner made. He need not worry hoiw did he Going concern concept
spend it because of "
If a firm believes that some of the debtors are likely to Prudence concept
become bad for which some reserve is to be provided
2."Moolchand, a businessman in sweets has been in this business for more than
10 years. He did not bother to maintain any accounts all along, even though he was
getting sizeable amount of profit every year. His son, who has completed B.Com told him
that mai"
Answer for 'a' What concept of Accounting is missing??
c. Concept of periodicity
d. Concept of income recognition
3."Moolchand, a businessman in sweets has been in this business for more than
10 years. He did not bother to maintain any accounts all along, even though he was
getting sizeable amount of profit every year. His son, who has completed B.Com told him
that mai"
Answer for 'b' How much expenses should be considered for 2005?
d. The expenses are capital in nature and should be excluded from total.
5."Moolchand, a businessman in sweets has been in this business for more than
10 years. He did not bother to maintain any accounts all along, even though he was
getting sizeable amount of profit every year. His son, who has completed B.Com told him
that mai"
a. Rs. 4,00,000
b. Rs. 3,00,000
c. Rs. 5,00,000
d. Rs. 2.95,000
6.Mr. Murthy is the Managing Director of Sole Divine Company, purchased a big truck
for Rs. 15,00,000 on cash for publicity and delivery from Tata Mohan Co. The Sole
Divine company is organised as a company with Mr. Ekanth Ram as the sole shareholder.
Accor
8.The Directors of Chintan Ltd., decided on 31st March, 2006, to increase the sale of its
products by 10%, on sales taking place from June 30, 2006 on wards. The intimation
regarding the same was sent to all the customers by June15th, 2006. From which date
a. Income is recognised only when it is received. So even if the customers were to
accept the hike in 2007-08, then it will be recognised
b. The revenue as a result of increase in sale price can be recognised from June 15th
Goodwill Personal
a. b
b. a
c. d
d. c
1.Mention the sequential order in which the accounting trail
takes place
Mention the sequential order in which the accounting trail takes place
a. i) Ledger posting ii) Recording and classifying iii) Trial balance iv) Balancing v)
Trading and P&L A/c v)Balance Sheet
b. "A. i) Classifying and recording ii) Trial Balance iii) Ledger Posting iv)
Balance.Sheet v)Trading and P&L A/c vi) Balancing"
c. i) Classifying and recording ii) Ledger posting iii) Balancing iv) Trial balance v)
d. Rs. 25,000
b. a. Debit & credit, credt& debit , debit & credit, credit & debit
c. d. Debit & credit, debit & credit, debit & credit, debit & credit
d. b. Debit & debit , credit & credit, credit & debit, credit & debit
2.Listed below a number of transactions. Identify which account to be debited and which
account to be credited, as shown for the first transaction
a. Cash & Dividend Premium & cash Furniture & jains Drawing & cash
b. X co & Dividend cash & lusur Jains & cash Drawing & bank
c. Cash & X co lnsur &cash Furniture & cash cash & bank
d. Dividend & X Co his & premium Jain & Furniture Cash & drawings
a. 1-b,2-c,3-d,4-a
b. 1-d,2-a,3-b,4-c
c. 1-c,2-d,3-a,4-b
d. 1-a,2-b,3-c,4-d
a. 1-c, 2-d,3-a,4-b
b. 1-a,2-b,3-c,4-d
c. 1-d,2-c,3-b,4-a
d. 1-b,2-d,3-a,4-c
Unit5 - 4 Mark Quiz Questions
1.Following is the account of Hamid Bros. Prepare journal entries
12,000
To Sales 26,000 By Bills receivable 6,000
To interest 1,000 By balance 14,000
c /d
32,000 32,000
a. c
b. a
c. d
d. b
2.Match the following
a. i - c; ii - d iii - b; iv - a
b. i - a; ii - b; iii - d; iv - c
c. i - b ; ii - c iii - a; iv - d
d. i -d; ii - a; iii - c; iv - b
3.On 01-04-2006 Mr. Dhanpal started business with Rs.2,00,000 cash and opened a bank
account with Rs.1,50,000. He purchased furniture for his business for Rs.25,000. Goods
were bought from Deendayal for Rs.50,000 on credit. He sold goods for Rs.27,000 in
cash and 30,000 on credit. He paid Rs. 2,500 for business expenses during April month.
Rs. 10,000 was withdrawn for office purposes from the bank. Find out the closing
balance of cash and bank.
a. Cash balance Rs. 99,500 and bank balance Rs. 1,20,000
4.On 1-1-2004 Debtor's account showed a debit balance of Rs.45000 in the books of
Subramanyam. During the month of January, 2004, an amount of Rs20,000 was received
from debtors. A further sale of Rs.30,000 was made to the debtors. Some debtors
accepted bills for Rs.20,000 and they were allowed a discount of Rs.1,000, Prepare
debtor's account and show the closing balance.
a. Rs. 40,000
b. Rs. 34,000
c. Rs. 46,000
d. Rs. 35,000
5.The following are the transactions with respect to goods traded by Gopal. You are
required to find out the closing stock on 31 -1-2005. Also find how much is still due to
Suresh.?
a. 1 - b; 2 - c; 3 -
d; 4 - b
b. 1 - a; 2 - b; 3 -
c; 4 - d
c. 1 - c; 2 - d; 3 -
a; 4 - b
d. 1 - d; 2 - a; 3 -
b; 4 - c
1.Shobha Company had the following data for the year 2005.
Gross credit sales at catalogue price Rs. 85,000; trade
discount allowed Rs.13,500; cash received from customers on account Rs. 65,000; sales
returns and allowances amounted to Rs.4,600; sales discounts Rs. 6,000 and cash sales ,
Rs.14,000. Find out sales that would appear on the trading account for the year.
a. Rs. 80,900
b. Rs. 74,900
c. Rs. 79,800
d. Rs. 80,000
Unit8 - 4 Mark Quiz Questions
1.Accounting principles are man-made unlike the principles of natural science,
accounting principles were not deducted from axioms, nor is their validity verificable by
observation and experiment. They have been evolved on “necessity is the mother of
invention”. Based on this the, special features of management accounting can be drawn
match the correct answer.
Features Characteristics
1. Selective in nature a. Encourages all employees for contribution
2. Provides data b. Planning for future decision
3. Future oriented c. Picks up relevant data
4. Goal congruence d. Supply of information
1. Management accounting
a. External use
deals with
2. Financial accounting deals
b. Internal use
with
3 Cost accounting deals with c. Employees.
4. Human Resource
d. Production
Accounting deals with
d. 20,000
2.Given current ratio is 1.75, liquid ratio is 1.25, net net working capital is Rs 1,50,000
the current assets is. Calculate the following current asset is
a. 3,50,000
b. 3,53,000
c. 3,45,000
d. 3,52,000
3.Given current ratio is 2.5 and working capital is Rs 1,80,000. the current asset is
a. 3,15,000
b. 3,05,000
c. 3,00,000
d. 3,10,000
c. 2,00,000
d. 2,05,000
5.The liquid asset are
a. 2,10,000
b. 2,50,000
c. 2,49,000
d. 2,51,00,000
6.The working capital is Rs 80,000 and current ratio is 5, the current liability is
a. 21,000
b. 22,000
c. 20,000
d. 23,000
If preference shares are considered in openning balance the flows from equity is
a. 4,50,000
b. 4,05,000
c. 4,50,000
d. 3,50,000
2.The opening and closing of share capital is Rs 6,00,000 and Rs 9,50,000. The
preference share capital included in opening balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8% premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in premium account is Rs 8,00,000 and
14,00,000 respectively
Premium on redemption at 8% is
a. Rs 6000
b. Rs 8000
c. Rs 2000
d. Rs 4000
3.The opening and closing of share capital is Rs 6,00,000 and Rs 9,50,000. The
preference share capital included in opening balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8% premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in premium account is Rs 8,00,000 and
14,00,000 respectively
c. cash outflow
d. cash deduction from equility
4.The opening and closing of share capital is Rs 6,00,000 and Rs 9,50,000. The
preference share capital included in opening balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8% premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in premium account is Rs 8,00,000 and
14,00,000 respectively
a. 3,00,000
b. 3,50,000
c. 3,05,000
d. 15,50,000
5.The opening and closing of share capital is Rs 6,00,000 and Rs 9,50,000. The
preference share capital included in opening balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8% premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in premium account is Rs 8,00,000 and
14,00,000 respectively Bonus shares on equity without preference shares is
a. Rs 1,00,000
b. Rs 1,40,000
c. Rs 1, 41,000
d. Rs 1,04,000
6.The opening and closing of share capital is Rs 6,00,000 and Rs 9,50,000. The
preference share capital included in opening balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8% premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in premium account is Rs 8,00,000 and
14,00,000 respectively Bonus shares after taking preference shares
a. Rs 1,02,000
b. Rs 1,00,000
c. None
d. Rs 1,05,000
7.The opening and closing of share capital is Rs 6,00,000 and Rs 9,50,000. The
preference share capital included in opening balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8% premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in premium account is Rs 8,00,000 and
14,00,000 respectively Bonus shares are _____________ to equility share capital
a. Deducted
b. Added
c. Decided
d. Deleted
8.The opening and closing of share capital is Rs 6,00,000 and Rs 9,50,000. The
preference share capital included in opening balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8% premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in premium account is Rs 8,00,000 and
14,00,000 respectively Bonus shares bring in
a. No cash
b. None
c. Cash outflow
d. Cash inflow
9.The opening and closing of share capital is Rs 6,00,000 and Rs 9,50,000. The
preference share capital included in opening balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8% premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in premium account is Rs 8,00,000 and
14,00,000 respectively Bonus shares are calculated on
a. Called-up
b. Authorised capital
c. Paid up
d. Issued
10.The opening and closing of share capital is Rs 6,00,000 and Rs 9,50,000. The
preference share capital included in opening balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8% premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in premium account is Rs 8,00,000 and
14,00,000 respectively Issue of the 90,000 shares towards purchase consideration results
in
a. Reduction
b. Recession
c. Rejection
d. Remission
c. 65,000
d. 47,000
2."Operating loss is 10,000 Decrease in debtors Rs 12,000 increase in prepaid 4,000.
decrease in current liabilities Rs 30,000 net cash used in operating activities"
a. 23,000
b. 25,000
c. 24,000
d. 32,000
3."The opening and closing value of land is Rs 12,000 and Rs 10,800. A piece of land has
been sold for Rs2,400 at a profit of 100% the operating gain is "
a. 2,000
b. 2,600
c. 1,200
d. 2,400
4.Cash and cash equivalent of cash in hand is Rs 1200 and bank OD is Rs 12,500 is
a. 11,300
b. 17,300
c. 13,700
d. 11,300
5.Cash in hand is Rs 10,000, cash at bank is Rs 5,000, the cash and cash equident is
a. 18,000
b. 2,000
c. 2,000
d. 18,000
6.Investment costing Rs 20,000 were sold at a profit of Rs 5,000 the cash flow is
a. 25,000
b. 20,000
c. 30,000
d. 15,000
7.Net loss is Rs 45,000 Decrease in provision for bad and doubtful debt is Rs 1000, the
operating loss is
a. 46,000
b. 48,000
c. 45,000
d. 44,000
8.Net profit is Rs 40,000; tax paid is Rs 9,000, the profit before tax is
a. 30,000
b. 40,000
c. 31,000
d. 49,000
9.Opening and closing capital is Rs 7,00,000 and Rs 5,80,000, the net loss is
a. 12,80,600
b. 1,21,000
c. Nil
d. 1,20,000
10.Purchase of asset Rs 3,00,000 sale of building Rs 2,90,000 net cash under investing is
a. 5,80,000
b. 5,60,000
c. 5,90,000
d. 10,000
Unit12 - 4 Mark Quiz Questions
1.Cost of production - administration overheads is
a. Factory cost
b. Prime cost
c. Factory overheads
d. All
d. Converation cost
3.Prime cost + factory + admin overheads is
a. Cost of sales
b. Sales
c. All
d. Cost of production
c. Factory cost
d. Totality cost
b. Cost of sales
c. Cost of goods sold
d. Cost of production
6.Sales-profit is
a. Retail cost
b. All
c. Removal cost
d. Total cost
d. Sales
b. Cost of product
c. None
d. Cost of sales
d. 5000
b. 1000
c. 1800
d. 1200
3.BEP is Rs 30,000, MOS is Rs 50,000 actual sales is
a. 82000
b. 81000
c. 80000
d. 83000
d. 2000
c. 5000
d. 5300
a. 0.25
b. none
c. 0.1
d. 0.2
a. 12
b. 21
c. 30
d. 25
8.MCSR is 40% sales value is Rs 10,000, the variable cost is
a. 6000
b. 8000
c. 5000
d. 4000
d. 0.2
b. 0.2
c. 33.3333333333333
d. All
c. 35700
d. 37500
3.Closing balance of June is Rs 48,700, payments are Rs 69,000 receipts are Rs 1,17,700
the opening balance is
a. 87400
b. 47800
c. 78400
d. 48700
4.Factory expenses from July to Nov is Rs 5,000 each . Lag in payments is 1/2 month.
The expenses from Sept to Nov are
a. 5,000, 6,000, 4,000
5.Opening and closing balance of cash in April are Rs 15,000 and Rs 27,200. The
expenses use Rs 71,800, the receipts are
a. 1,52,600
b. 1,25,000
c. 1,56,200
d. 99000
Unit15 - 4 Mark Quiz Questions
1.Actual material cost is 900 units.Unit price is Rs 9, standard cost is 1000 units at Rs 6
per unit Material cost variance is Rs 550(A) and material price variance is Rs 150(F),
material usage variance is
a. 700(A)
b. 400(F)
c. 700(F)
d. 400(A)
2.Actual material cost is 900 units.Unit price is Rs 9, standard cost is 1000 units at Rs 6
per unit Material price variance is
a. 1200(A)
b. 1800(A)
c. 2400(F)
d. 600(F)
3.Actual material cost is 900 units.Unit price is Rs 9, standard cost is 1000 units at Rs 6
per unit Material usage variance is
a. 1000 (A)
b. 2000 (A)
c. 1800 (F)
d. 600 (F)
4.Actual material cost is 900 units.Unit price is Rs 9, standard cost is 1000 units at Rs 6
per unit Materials cost variance is
a. 1200 (A)
b. 2400 (F)
c. 2400 (F)
d. 1200 (F)
5.Actual material cost is 900 units.Unit price is Rs 9, standard cost is 1000 units at Rs 6
per unit MMV is Rs 19,000(a) MYV Rs 34,000(a) MPV is Rs 13,000(a), material quanty
variance is
a. 53,000(A)
b. 47,000(A)
c. 66,000(A)
d. 32,000(A)
6.Actual material cost is 900 units.Unit price is Rs 9, standard cost is 1000 units at Rs 6
per unit MPV is Rs 300(A) MMV 150(A), Material quantity variance is
a. 500(A)
b. 100(A)
c. 400(A)
d. 100(F)
7.Material requirement 80 Kgs cost per Kg Rs 1.50 Material consumed 75 Kgs cost per
Kg 1.75 Material Price Variance to
a. 81.75(F)
b. 18.75(F)
c. 81.75(A)
d. 18.75(A)
8.Material requirement 80 Kgs cost per Kg Rs 1.50 Material consumed 75 Kgs cost per
Kg 1.75 Material Usage Variance is
a. 7.50(F)
b. 7.00(A)
c. 7.8
d. 7.50(A)
9.Material requirement 80 Kgs cost per Kg Rs 1.50 Material consumed 75 Kgs cost per
Kg 1.75 Materuak Cost Variance is
a. 11.25(A)
b. 11.25(F)
c. 12.51(F)
d. 12.51(A)
10.Material requirement 80 Kgs cost per Kg Rs 1.50 Material consumed 75 Kgs cost per
Kg 1.75 Production of certain unit is assumed fo require 18 hours labor at a rate of Rs
1.25 per hour Time taken was 16 hours with a rate of Rs 1.50 per hours The price
variance is
a. 4(F)
b. 4.10(A)
c. 4.10(F)
d. 4(A)