(Q:1)

Huge expenditure incurred at the time of launching of a new product in market is a/an
—

A.Deferred Revenue Expenditure🔴

B.Loss

C.Capital Expenditure

D.Revenue Expenditure

(Q:2)

Under which method of depreciation annual depreciation goes on decreasing

A.Reducing balance method🔴

B.Annuity method

C.Straight line method

D.None

(Q:3)

Undercasting of the total of Sales A/c will affect —

A.Working Capital

B.Closing Stock

C.Debtors A/c

D.Gross Profit and Loss🔴

 (Q:4)

How does depreciation effect basic accounting equation

A.Leads to decrease in shareholders equity🔴

B.Leads to decrease in asset only

C.Leads to decreases in assets and shareholders equity

D.Leads to increase in liability and decrease in assets

(Q:5)

Owing of the business are called —

A.Liabilities 🔴

B.Capital

C.Assets

D.Net Worth

(Q:6)

It is easy to detect error than_____________

A.

Fraud

B.

Theft

C.

Both

D.

None
 (Q:7)

Tick the correct statement

A.Depreciation is a process of valuation

B.Revaluation A/c is Real A/c

C.Balance Sheet is also known as a positional statement🔴

D.Petty cash is an expense

(Q:8)

A firm has a policy of charging depreciation on Plant and Machinery @ 10% under WDV Method. If

the book value of Plant and Machinery was Rs. 81,000 on 31.03.2020. Find the original cost of the plant if

the same was purchased on 01.04.2018

A.

Rs. 80,000

B.

Rs. 1,00,000

C.

Rs. 81,000

D.120000

(Q:9)

X a debtor is declared insolvent and only 25 paise in a rupee is recovered from his estate. If X owes Rs.

5,000 to Y, Y would debit Cash A/c by —

A.Rs. 2,500

B.Rs. 25

C.Rs. 5,000

D.Rs. 1,250🔴

(Q:10)
 Credit balance in Cash Book means—

A.FD with Bank

B.Cash embezzlement

C.Bank deposit

D.Bank overdraft🔴

(Q:11)

Over statement of sales may lead to-

A.Under statement of profit of current year

B.Over statements of profit of next year

C.Over statement of profit of current year🔴

D.All the three

(Q:12)

___________________ is earned during the current accounting year but is not received during that year

A.

Accrued Income🔴

B.

Accrued Expense

C.

Prepaid Income

D.

Prepaid Expense

(Q:13)

Which of the following are the steps in the process of Finalization of Accounts for a Trading concern?

A.

Trading Account

B.
Profit and Loss Account

C.

Balance Sheet

D.

All of these🔴

(Q:14)

Which one of the following equation is correct?

A.Owner's Equity = Liability + Asset

B.Owner's Equity = Asset - Liability

C.Liability = Owner's Equity + Asset

D.Asset = Owner's Equity + Liability

(Q:16)

A trade purchase of Rs. 5,500 from Y was passed through Sales Day Book as Rs. 550, what rectification

entry would be passed if the mistake is detected before preparation of Trading and Profit & Loss A/c

A.

Sales A/c ….Dr. Rs. 550,Purchase A/c ….Dr. Rs. 5,500,Suspense A/c Cr. Rs. 6,050

B.Profit and Loss Adjustment A/c ….Dr. Rs. 6,050,Y‘s A/c Cr. Rs. 6,050

C.Sales A/c ….Dr. Rs. 550, Purchase A/c ….Dr. Rs. 5,500, Y‘s A/c Cr. Rs. 6,050🔴

D.None

(Q:17)

A company wishes to earn a 20% profit margin on selling price. Which of the following is the profit mark

upon cost, which will achieve the required profit margin?

A.

33%

B.
25%🔴

C.

20%

D.

16.67%

(Q:18)

The portion of the acquisition cost of the asset yet to be allocated is known as

A.Written down value🔴

B.Accumulated value

C.Salvage value

D.Residual Value

PREVIOUS

(Q:19)

Trial Balance is prepared to….

A.To ensure compliance to IFRS

B.To ensure legal compliance

C.To check arithmetic accuracy of A/cs🔴

D.Check true and fair view of Balance Sheet

(Q:20)

Joint Bank A/c is a —

A.Nominal A/c

B.Personal A/c

C.Real A/c🔴

D.Dummy A/c
 PREVIOUS

(Q:21)

Drawee is the person…..

A.Who draw a bill of exchange

B.Who holds the bill of exchange till maturity

C.Who accepts the bill of exchange🔴

D.Who presents the bill of exchange for payment

(Q:22)

When Bills Receivable is returned dishonoured by the drawee, which of these A/c is debited by the drawee

A.Drawer A/c

B.BP A/c🔴

C.BR A/c

D.Bank A/c

(Q:23)

Encashing the bill before the due date is called

A.

Endorsement

B.

Retirement

C.

Discount🔴

D.

Bills sent for collection

(Q:24)

If the consignee is allowed del credere commission, then he bears —

A.All sales promotion expenses

B.Loss due to bad debts

C.Loss due shortage of goods

D.All routine expenses in connection with the goods

(Q:25)

Loss on Joint venture is —

A.Debited to Suspense A/c

B.Credited to Capital Fund A/c

C.Credited to Profit and Loss A/c

D.Debited to co-venturers capital A/c

(Q:26)

XYZ send goods worth Rs. 1,00,000 to Y on consignment basis at 20% above the cost price. The goods

are sold by the consignee on a mark of 15% on invoice price. find the total profit on consignment if the

consignee expenses amounted to Rs. 8,000

A.Rs. 30,000

B.Rs. 28,000

C.Rs. 25,000

D.Rs. 38,000

(Q:27)

L of Lucknow consigned goods costing Rs. 60,000 to A of Allahabad at an invoice price bearing 331/3 %

mark up on the cost price. Goods costing Rs. 15,000 were damaged in the transit and the insurance

company admitted the claim in full. Expenses incurred by the consignor on loading and transportation of

the goods amounted to Rs. 1,800. The consignee incurred Rs. 200 on cartage and Rs. 6,000 as Godown

Rent and sold 2/3 of the goods received by him at the invoice price. He is entitled to 5% normal

commission and 2.5% del credere commission. Find the value of goods sold
A.Rs. 50,000

B.Rs. 55,000

C.Rs. 60,000

D.Rs. 40,000

PREVIOUS

(Q:28)

Copy Rights A/c is a

A.

Tangible Real Account

B.

Intangible Real Account

C.

Personal Account

D.

None of these

(Q:29)

Find the value of opening stock from the following data. Purchases Rs. 1,50,000, Closing stock Rs. 30,000

, Sales Rs.2,20,000, Gross profit Rs. 40,000.

A.Rs. 50,000

B.Rs. 55,000

C.Rs. 60,000

D.Rs. 65,000

(Q:30)
 Rs. 1,250 paid for the residential telephone bill of the proprietor which of these accounts will be detailed

A.Telephone A/c

B.Drawing A/c

C.Household A/c

D.None

(Q:31)

Which of the following will not appear in Profit and Loss Account of a business?

A.Drawings

B.Bad debts

C.Accrued expenses

D.Reserve for discount on Sundry Creditors