Sample Questions

T. Y. B. Com. (SEM V)
Financial Account V
1. The final accounts of companies are to be prepared in accordance with the provision of
_____ of the Companies Act.
a. Schedule VI
b. Schedule III
c. Schedule IX
d. Schedule II
2. The company’s final accounts are prepared in _____ form.
a. Vertical
b. Horizontal
c. Both A & B
d. none of the above
3. The summarised Balance Sheet in _____ form is supplemented by schedules giving
detailed information.
a. Vertical
b. Conventient
c. Horizontal
d. none of the above
4. The _____ value of investment should be indicated by way of a note.
a. Market
b. Actual
c. Face
d. Cost
5. The exchange difference for repayment of liability relating to purchase of fixed assets is to
be disclosed as change on _____.
a. Reserve & Surplus
b. Assets
c. Profit and Loss A/c
d. Liability
6. The amount of debtors due for more than _____ months is to be shown separately.
a. Five
b. Two
c. Six
d. Nine
7. Current liabilities means liabilities payable within _____ months form the date of Balance
Sheet.
 a. Six
b. Twelve
c. Four
d. Three
8. Fixed deposits with banks should be shown as _____.
a. bank loan
b. bank balance
c. bank overdraft
d. Liabilities
9. Immovable properties held for companies operation is to be shown as _____.
a. Investments
b. current liabilities
c. current assets
d. fixed assets
10. Immovable properties held for source of additional income is to be shown as ____.
a. Investments
b. current liabilities
c. current assets
d. fixed assets
11. The balance in Share Forfeiture Account after reissue of forfeited shares is to be shown as
_____.
a. General reserve
b. Securities premium
c. capital reserve
d. Provision for Taxation
12. The interest on loan which has accrued and due is shown as _____.
a. Loan
b. Current liabilities
c. unsecured loans
d. secured loans
13. Debit balance in Profit & Loss Account can be shown as _____.
a. loans & advances
b. Profit and Loss A/c
c. capital W.I.P
d. miscellaneous expenditure
14. Uncalled amount on shares held as investment is shown under the heading _____.
a. contingent liability
b. current assets
c. loans & advances
d. current liabilities
15. Bills discounted are to be shown as _____.
 a. loans & advances
b. contingent liability
c. current assets
d. current liabilities
16. The capital work in progress is added to _____ in Balance Sheet.
a. current assets
b. share capital
c. fixed assets
d. current liabilities
17. Loose tools are shown under _____ assets.
a. Current
b. Fixed
c. Capital
d. other assets
18. Bills receivable is shown under _____.
a. current assets
b. loans and advances
c. Trade Receivable
d. current liabilities
19. Arrears of preference dividend are shown under _____ liabilities.
a. contingent liability
b. current assets
c. loans & advances
d. current liabilities
20. Interest accrued but not due on secured loans is shown under _____ _____.
a. current liabilities
b. unsecured loans
c. secured loans
d. capital
21. Profit and Loss of a company must be as per part _____ of schedule III of Companies Act.
a. III
b. IV
c. II
d. VI
22. Repairs to building must be shown as a _____ _____ on debit side of Profit and Loss A/c.
a. Addition
b. separate item
c. other expenses
d. Deducted
23. Public deposits accepted by companies must be shown under _____ _____.
a. Investment
 b. secured loans
c. loans & advances
d. unsecured loans
24. Development expenditure is shown under _____ _____.
a. current assets
b. loans and advances
c. Other Assets
d. current liabilities
25. Short term loan is the loan due for not more than _____ year.
a. Six
b. Five
c. One
d. Two
26. The unpaid interest on loan is _____.
a. Loan
b. current liabilities
c. reserve
d. contingent liabilities
27. Any amount payable within 12 months from date of Balance sheet is called _____.
a. Capital
b. Loan
c. contingent liabilities
d. current liabilities
28. Calls in arrears is to be _____.
a. shown as debtors
b. reduced from share capital
c. shown as investments
d. ignored
29. The debit balance in Profit & Loss Account is to be _____.
a. reduced from share capital
b. reduced from reserve
c. disclosed as miscellaneous expenditure
d. shown as a note to account
30. The transfer to reserve is
a. 10%
b. 15%
c. Voluntary
d. 25%
31. In Balance Sheet, securities premium should be shown under _____.
a. share capital
b. reserves & surplus
 c. current liabilities
d. fixed assets
32. Opening balance of Profit & Loss A/c was ` 7,500, dividend paid ` 1,500 ending balance
of Profit & Loss A/c was ` 5000. Net income / net loss was _____.
a. loss ` 1,000
b. net loss ` 2,000
c. net income ` 1,000
d. net income ` 6,500
33. Retained earnings is the amount of _____.
a. profit after tax less dividend
b. profit before tax less dividend
c. profit before depreciation
d. profit after depreciation
34. Which of the following is not an example of fixed assets ?
a. plant & machinery
b. buildings
c. royalty
d. patents
35. Which of the following items appears on the assets side of Balance Sheet?
a. capital reserve
b. security premium
c. sinking fund investment
d. specific reserve
36. As per AS–1, disclosure should be made of _____.
a. all accounting principles
b. all accounting policies
c. all accounting concepts
d. all significant accounting policies
37. Which of the following is shown under Reserves & Surplus?
a. calls in advance
b. calls in arrears
c. securities premium
d. bonus
38. Profit and Loss Account of a company must be as per _____.
a. part II of schedule III of Companies Act
b. Part I of schedule VI of Companies Act
c. vertical form only
d. horizontal form only
39. Remuneration to M.D. should be shown as a separate item on debit side of _____.
a. Trading A/c
b. Profit and Loss A/c
 c. Profit and Loss appropriation A/c
d. None of the above
40. The Capital reduction means reduction in _____ value of shares.
a. authorized capital
b. Called up capital
c. Uncalled capital
d. paid–up value
41. The Sub – division of shares does not result in _____ of capital.
a. Reduction
b. Added
c. Compromise
d. New fund
42. The fictitious debit balances are to be transferred to _____ Account.
a. internal reconstruction
b. security premium
c. share capital
d. Capital Reduction
43. The expenses for forming and implementing scheme should be debited to _____.
a. internal reconstruction
b. Capital Reduction
c. security premium
d. capital reserve
44. The objective of capital reduction scheme is to w/off _____.
a. Losses
b. Profit
c. no profit – no loss
d. nil
45. In capital Reduction all the adjustments are made in _____ _____ A/c.
a. Goodwill Account
b. Capital Reductions A/c.
c. Cash Account
d. Profit & Loss A/c
46. Appreciation in land and building is credited to _____ _____ A/c.
a. Goodwill Account
b. Capital Reductions A/c.
c. Cash Account
d. Profit & Loss A/c
47. The scheme of internal reconstruction involves _____ company.
a. One
b. Two.
c. Three.
 d. Many
48. XYZ Ltd. had on 31st December, 2017; 80,000 equity shares at ` 10 each. It was decided
to reduce shares to ` 8 each. The reduction is _____.
a. RS. 1,60,000.
b. RS. 80,000.
c. RS. 2,00,000.
d. RS. 1,50,000.
e. RS. 1,60,000.
49. Creditors of the company are ` 50,00,000 one creditor for ` 20,00,000 decided to forego
40% of his claim. He is allotted 30,000 equity shares of ` 40 each in full satisfaction. The
amount transferred to capital reduction is _____.
a. Rs.8,00,000
b. Rs.10,00,000
c. Rs.4,00,000
d. Rs.5,00,000
50. The preference shareholders agree to forego arrears of preference dividend of` 72,000. The
amount transferred to Capital Reduction Account is _____.
a. Nil
b. Rs. 72,000
c. Rs. 36,000
d. Rs. 70,000