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CMA FOUNDATION- CHALLENGE SERIES

26. Firm Sold goods to Customer. M.R.P. of goods are ₹ 1,00,000 Trade discount 10% and Cash discount 5%. 40%
of the payment received immediately and balance were payable after 1 month.

27. Goods costing ₹ 30,000 sold at a Profit of 30% on sales to customers on cash Basis. Make journal entry.

28. A Journal Entry in which one or more accounts are debited and/or one or more accounts are credited is
called_____.
(a) Single Entry.
(b) Compound Entry.
(c) Closing Entry
(d) adjustment entries.

(29). _____ A/c is Credited and ___ A/c is debited in case wages are paid for construction of business
premises.
(a) Cash, Wages
(b) Cash, Premises
(c) Premises, Cash
(d) Wages, Cash
(30). Journal lists transactions in which order?
(a) Decreasing
(b) Chronological
(c) Alphabetical
(d) Increasing
(31). M/s Stationery Mart will debit the purchases of Stationery to ___
(a) Purchases A/c
(b) General Expenses A/c
(c) Stationery A/c
(d) None
32. wages account Dr 40,000
to outstanding wages account 40,000

above entry is an example of

(A) opening entry
(B) adjustment entry
(C) closing entry
(D) running entry

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COCEDUCATION.COM MCQ SERIES-2 CA/CMA Santosh kumar

SOME IMPORTANT CONCEPTS:

Subdivisions of Ledger : Practically, the Ledger may be divided into two groups –
(a)Personal Ledger &
(b) Impersonal Ledger. They are again sub-divided as:
LEDGER

PERSONAL IMPERSONAL
LEDGER LEDGER

Debtors’ Creditors’ Cash General

Ledger Ledger Book Ledger

Nominal Private
Ledger Ledger

Personal Ledger: The ledger where the details of all transactions about the persons who are related to the
accounting unit, are recorded, is called the Personal Ledger. Personal Ledger may be divided into two
groups:

Viz. (a) Debtors’ Ledger, & (b) Creditors’ Ledger.

(a) Debtors’ Ledger: The ledger where the details of transactions about the persons to whom goods are sold,
cash is received, etc. are recorded, is called Debtors’ Ledger.

(b) Creditors’ Ledger: The ledger where the details of transactions about the persons from whom goods are
purchased on credit, cash is paid etc. are recorded, is called Creditors’ Ledger.

Impersonal Ledger: The Ledger where details of all transactions about assets, incomes & expenses etc. are
recorded, is called Impersonal Ledger. Impersonal Ledger may, again be divided into two group, viz, (a) Cash
Book; and (b) General Ledger.

(a) Cash Book: The Book where all cash & bank transactions are recorded, is called Cash Book.

(b) General Ledger: The ledger where all transactions relating to real accounts, nominal accounts, details of Debtors’
Ledger and Creditors’ Ledger are recorded, is called General Ledger.

General Ledger may, again, be divided into two groups. viz, Nominal Ledger; & Private Ledger.

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(a) Nominal Ledger: The ledger where all transactions relating to incomes and expenses are recorded is called
Nominal Ledger.

(b) Private Ledger: The Ledger where all transactions relating to assets and liabilities are recorded is called
Private Ledger.

Forms of a trial Balance :- A Trial balance may be prepared in two forms, they are –

1. Journal Form
2. Ledger Form
The trial balance must tally irrespective of the form of a trial balance.

1. Journal Form: This form of a Trial balance will have a format of Journal Folio.

Specimen of Journal Form of Trial Balance:

Trial Balance as on …………

SI. NO. NAME OF THE L.F. DEBIT BALANCE ₹ CREDIT BALANCE

ACCOUNT ₹

2. Ledger form: This form of a trial balances have two sides i.e., debit side and credit side.

Specimen of ledger form of Trial Balance

Trial Balance as on ………………

DEBIT BALANCE L.F. AMOUNT ₹ CREDIT L.F. AMOUNT ₹

BALANCE

Method of Preparation:

1. Total method or Gross Trial Balance

2. Balance method or Net Trial Balance
3. Compound method.

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COCEDUCATION.COM MCQ SERIES-2 CA/CMA Santosh kumar

ACCOUNTING CONCEPTS, PRINCIPLES AND CONVENTIONS

1. The determination of expenses for an accounting period is based on the concept of

(a) Objectivity
(b) Materiality
(c) Matching
(d) Periodicity

2. Provision for bad debt is made as per the

(a) Entity concept
(b) Conservatism Concept
(c) Cost Concept
(d) Going Concern Concept

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