(vi) (ui) (h) (0) in)

ccounts.Al(ldOnly
)Real( ) Only(6) Al(@l)Trial
(a)Which (Which a) ()compulsory.
(a) A (c) (a) credit statement,
(a) AssetAn(a) acorrectthe
Trial
Preparationis Trial
MuChltipleoice accoi
Sundry Cash in only
bothcompulsory
Balance Balance is
Accounts
balance.
having of of Balance
the the credit
debit Account
shows a
Personaland alternative:
Debtors
following Hand
following of Questions
(MCQs)
and is and
balance.
a shows or Trial a
list credit optional.
Nominal
summary.
debit
(6) (6) a
Real
of (6) has (6) is Balance
the balances.
Sundry Rentshown
Accountsbalances credit
Accounts
Outstanding as
balance?
Creditors debit
having
having of
balance balance. lance
(c) C)
(c) account. (an
balance.
balance. (c) (d) (d)
optional.(6)
Creditors in only 6) None debit tovornfy g
Inventory theeither
Trial debit or
debit of credit
these. the
Balance? balance. arthmetral
or
credit (d) (d)
Goodwill
Account(dOverdraft
) Bank(d) MEChetndrgerh
None None
balance.
of of acrry
these these

ot
14.22
Double Entry Book.
(vii) The preparation of Trial Balance helps in
Keeping s
(a) Assessing the Financial Position. (b) Locating Errors of All Types
(c) Preparation of Final Accounts. (d) None of these.
[Ans.:() (a); (ii) (6); (ui) (6); (iv) (c); (v) (a); (vi) (b); ((vii) (a: iri
Objective Type Questions
 Questions (MCQs) )
Multiple Choice
Select the correct
alternative:
machine should be debited to
installinga
(i) 3.000 paid as wages for (6) Machinery Account.
(a) Wages Account. (d) None of these.
(c) Capital Account.
2,000 spent on its repairs should be debited t
purchase of old furniture,the amount of (6) Furniture Account.
(i) On
(a) Repairs Account.
(d) None of these
(c) Cash Account.
given as charity should be credited t
(iii) Goods of 500 (6) Sales Account.
(a) Charity Account.
() None of these.
(c) Purchases Account.
taken by the proprietor for personal use should be credited to
(iv) Goods of 1,000 Proprietor's Personal Expenses Account.
(a) Sales Account. (b)
(c) Purchases Account. (d) None of these.
(u) Errors of omission permit Trial Balance.
(a) correct totalling of the Balance
Sheet. (b) correcttotalling of the
(c) the Trial Balance to match. (d) None of these.
(vi) Trial Balance is prepared to locate
(a) Errors of Principle. (6) Errors of omission.
(c) Compensating Errors. (d) None of these.
 1733
ihation
ofErrors

received vom Smith whose ncemnt wnn provioyely written nffa Bad oht ahotld
(5.000
becredited
to
Bad Debts
Recovered Aeeount (h) Smith a Acount
(a) Cash Account (d) None of thear
Purchaseof office furniture for ? 1,200 was dehited to the (ionoral Fxpenana
clerical error. (b) an error of princile
(a) a
error of omission. (d) None of thear
an
ofofficefurniture is
credited to
SaleSales
(a) Account. (h) Office Furnture Acrnunt
c) Cash Account. (d) None of these
Suspense Account will give the
(a) Debit balance. (b) Credit balance
(c) Debit or credit balance, as the case may be. (d) None of these
Errors not shown by Trial Balance are
(a) Errors of Principle. (b) Compensating Errors.
(c) Errors of Comnplete Omission, (d) All of these.
Match List I with II and select the correct answer:
List I List l
ACompensating Errors 1. Not recording a business transaction.
6. Errors of Omission 2. Charginga Revenue item to Capital.
CErrors of Principle 3. Writinga debit item on the credit side anda credit
item on the debit side of equai amount.
D. Error of Commission
4. Posting a correct amount to a Wrong Account
Select the correct answer using the codes given below:
A B D A
(o) 3 1 4 2 (b) 2
3
3 1 2 4 (d) 2 3
[Ans.: (i) (6); (ii) (6); (iii) (c); (iU) (c); U) (c); (vi) (),
(vii) (b); (ix) (b; () (c); (r) (d); (ULa) ();
(ni) (e.]
Select the correct alternative:
() Current liabilities are the liabilities which are payable
(a) within one year. (b) within two years.
(c) within three years. (d) within four years.
(ii) Computers owned by a firm
(a) Tangible Assets. (b) Current Assets.
(c) Liquid Assets. (d) Intangible Assets.
(tüi) Loss on sale of an old car is debited to
(a) Profit & Loss Account. (6)Car Account.
(c) Depreciation Account. (d) Trading Account.
(iv) Sales are equal to
(a) Cost of Goods Sold + Gross Profit. (6) Cost of Goods Sold Gross Profit.
(c) Gross Profit- Cost of Goods Sold. (d) Purchases + Gross Profit.
 Staementsof Sole
amamcN Proprietorship 1847
Income tax paid by sole
ste of thetrader show
i
(a) onthe ddebit
(b) on the debt sde of he Tading
Poft &Aont
Iae ArcInt
(c) deducion from enp1tal
as addition
nthe
Balance Sheet
(d) to enpitnl in the
Goodwillis a Bahnce Sheet
a) Fictitious Asset
ic Intangible Asset (h) Tangible Aaaot
(l) Current Aeacot
Returns Inward in the Trial
(a) Purchases. Balance is deducted from
(c) Returns outward. (b) Saleg
(d) Gross profit
(mi) Financial Statements includes
(a) Trial Balance,
(b) Trading and Profit &Loss Account.
(c) Balance Sheet.
i Trading and Profit & Loss Account and Balance
Sheet.
i) Which type of expenses out of the following are shown in Trading Account?
(a) Direct Expenses (b) Indirect Expenses
() Opening Expenses () Direct and Indirect Expenses
() Which statement shows financial position of the business?
(a) Trading Account (6) Profit & Loss Account
(c) Balance Sheet (d) Trial Balance
(xi) Which of the following is correct?
(a) Operating Profit = Net Profit Non-operating Expenses - Non-operating Income
(b) Operating Profit = Net Profit + Non-operating Expenses + Non-operating Income
Non-operating Income
(c) Operating Profit = Net Profit + Non-operating Expenses -
Non-operating Income
(d) Operating Profit = Net Profit - Non-operating Expenses +
(xii) Carriage Outwards is shown in
(a) Trading Account.
(b) Profit & Loss Account.
(c) Balance Sheet.
Profit & Loss Account.
(d) Any of Trading Account or
incurred on a fixed asset which increases the earning capacity is accounted as
(xii) Expenditure (b) Revenue Expenditure.
(a) Capital Expenditure. (d) General Expenditure.
(c) Deferred Revenue Expenditure. Balance is shown in
inside the Trial
(u) Closing Stock shown (b) Profit & Loss Account.
(a) Trading Account. (d) None of these.
(c) Balance Sheet. Sheet?
Which of the following is not shown in Balance
(6) Closing Stock
(20)
(a) Opening Stock (d) Debtors
(c) Patents
Revenue Expenditure
(vi) Capital Expenditure and (6) are not distinguished.
(a) are distinguished. distinguished.
distinguished. (d) must not be
be
(C) may or may not
 Double Entry Book

Ke eping- CBSE)
18.48

(rvii) Capital Receipts and Revenue Receipts (h) are not distongushed,
(a) are dist1ngushed.
istinguished () musl not be disingujshed
(c) may or may not be
(rvii) Revenue Expense is translerred to (b) Trading nnd lrot&
(a) Profit &Loss Accout () Purehases Aecount
(c) Balance Sheet.

(r7x) Revenue is transferredto (b) Trading Account.

(a) Profit & Loss Acount.
(c) Balance Shect. (i) None of theso.
(:1) Capital Expenditure is shown in
(a) Trading Account. (b) Profit & Loss Account.
(c) Balance Sheet. (d) Noneof these.
(R7) Capital Receipts are shown in
(a) Balance Shect. (b) "rading Aceount.
(c) Profit & Loss Account. (d) Capital Account.
(xv) Outstanding Salaries is shown as
(a) an asset in the Balance Sheet. (b) a liability in the Balance Sheet.
(c) adjusted in Profit &Loss Account. (d) both (6) and (c).
(xx) Large advertisement expenditure to introduce a new product is
(a) Capital Expenditure. (b) Revenue Expenditure.
(c) Deferred Revenue Expenditure. (d) None of these.
(riv) Purchase of machinery for production is
(a) Revenue Expenditure. (6) Capital Expenditure.
(c) Deferred Revenue Expenditure. (d) None of these.
(axv) Computers purchased for re-sale is
(a) Capital expenditure. (6) Revenue Expenditure.
() Deferred Revenue Expenditure. () None of these.
(xxvi) Insurance premium paid to insure the machinery at the time of its purchase is
(a) Revenue Expenditure. (6) Capital Expenditure.
(c) Deferred Revenue Expenditure. (d) None of these.
cxvii) After closing entries have been posted, the balance of Profit &Loss Account will be
(a) A debit if profit has been earned. (b) A debit if loss has been incurred.
(c) A credit if loss has been incurred. (d) Nil.
viii) Balance Sheet is a
(a) alist of balances of all the accounts in the books of a business.
(6) an account showing trading activities of a business.
(c) an account showing the financial position of a business as on a certain date.
(d) a list of balances of assets, liabilities and capitalof a business at a certain date.
cix) Which of the following is not the part of Financial Statements?
(a) Trial Balance (6) Trading Account
(c) Profit & Loss Account (d) Balance Sheet
[Ans.: (9) (); (i) (a); (iü) (a); (iv) (a); (v) (e): (vi) (c); (vi) (b); (vii) (d; (iv) (a):
(9) (c): (a) (c); (xii) (6); (xii) (a); (ziv) (): (xu) (a);(rvi) (a); (xvii) (a:
(xvii)(b);: (rix) (b); (xx) (c); (xxi) (a): (xxi) (d); (xxii) (c); (xxiw) (0;
(xxv) (6); (rxvi) (b); (xxvii) (b): (xxviii) (d): (xxix) (a).