Accountancy
1. Various steps of
accounting process are
(i) Recording,
(ii) Summarizing,
(iii) Identifying the
financial transaction
(iv) Classifying
(v) Communicating
Identify from the following,
which is the correct order of above steps
(a) (i), (ii), (iii), (iv),
(v)
(b) (i), (iii), (iv), (ii), (v)
(c) (iii), (i), (iv), (ii),
(v)
(d) (iii), (i), (iv), (v),
(ii)
2. Which of the following
qualitative features of accounting is reflected, when accounting policies and
conventions are followed
consistently ?
(a) Reliability
(b) Understandability
(d) Comparability
3. Window dressing in
accounting refers to-
(a) Showing more or less
profit than true and fair profit
(b) Showing more profit than
true profit
(c) Showing less profit than
true profit
(d) Disclosure of information
about accounting policies
4. Capital is the –
(a) Excess of external
liabilities over the assets
(b) Excess of assets over the
external liabilities
(c) Excess of external
liabilities over fixed assets
(d) Excess of assets over
internal liabilities
5. The term “purchase” is
used only for purchase of _______________and is never used for the purchase of
______________
(a) Assets, Investment
(b) Assets, Goods
(c) Intangible assets, Goods
(d) Goods, Non current assets
6. Cash discount is allowed
at the time of ________
(a) Receiving early payment
of due amount
(b) Sale of goods in bulk
quantity
(c) Both at the time of sale
of goods and receiving the payment
(d) Making payment for
purchase of goods
7. Which accounting principle
is followed when a firm makes provision for doubtful debts on debtors ?
(a) Consistency
(b) Materiality
(c) Going concern
(d) Prudence
8. All the following items
are classified as fundamental accounting assumptions EXCEPT –
(a) Consistency
(b) Business entity
(c) Going concern
(d) Accrual
9. Mr. Harish purchased a
motorcycle for his son on credit and recorded it as purchase of asset in the
business books. He has violated –
(a) Money measurement
principle
(b) Periodicity
(c) Consistency
(d) Accounting entity principle
10. Name the principle which
treats all rupees alike whether it is rupee of year 1972 or 2012 –
(a) Money measurement
principle
(b) Periodicity principle
(c) Consistency principle
(d) Accounting Entity
11. The adjustments for
outstanding expenses, prepaid expenses, accrued income and unearned income are
made as per which of the
following accounting principle ?
(a) Entity
(b) Periodicity
(c) Matching
(d) Conservatism
12. “IFRS” stands for
(a) Indian Financial
Reporting System
(b) International Financial
Reporting Standards
(c) Internal Financial
Recording System
(d) International Financial
Reporting System
13. Which of the following is
the source voucher/document ?
(a) Debit voucher
(b) Credit voucher
(c) Transfer voucher
(d) Invoice
14. In Accounting equation
outstanding rent is an example of –
(a) Increase in Assets and
decrease in Capital
(b) Increase in Liability and
decrease in Capital
(c) Decrease in Liability and
Capital
(d) Increase in Assets and
Capital
15. Credit means-
(a) Increase in Assets
(b) Increase in Liability
(c) Decrease in Liability
(d) Decrease in Capital
16. Which of the following is
the odd one out with reference to the nature of accounts ?
(a) Interest A/c
(b) Outstanding Interest A/c
(c) Advance Interest A/c
(d) Accrued Interest A/c
17. While passing an entry
for purchase of goods of the list price of ` 10,000
from Mr. Vikas who allowed 10%
trade discount and 5% cash
discount. ___________A/c will be debited with ______________
(a) Purchases, ` 10,000
(b) Purchases, ` 8,500
(c) Vikas, ` 8,550
(d) Purchases, ` 8,550
18. The debit balance of a
personal account is __
(a) Cash in hand
(b) Amount receivable
(c) Income earned
(d) Amount payable
19. Which of the following
accounts are normally balanced __
(a) Personal and Nominal
accounts
(b) Real and Nominal accounts
(c) Personal and Real
accounts
(d) Personal, Real and
Nominal accounts
20. Which document is sent to
a customer when he returns the goods, which were sold to him on credit ?
(a) Credit Note
(b) Cheque
(c) Debit Note
(d) Return Invoice
21. Furniture used by a
Furniture dealer for furnishing his office will be credited to___
(a) Furniture A/c
(b) Cash A/c
(c) Sales A/c
(d) Purchases A/c
22. Which of the following
transactions will result in lower balance in the bank column of Cash Book in
comparison to Pass Book ?
(a) Interest credited by
Bank, not recorded in Cash Book
(b) Bank charges not recorded
in Cash Book
(c) Cheques sent to bank, but
not yet credited
(d) Cheques paid into bank,
and duly collected
23. Overdraft as per Pass
Book is ` 10,000, Cheques deposited but
not credited ` 2,500. What will be the
balance as per Cash Book ?
(a) Overdraft ` 7,500
(b) Favourable Balance ` 7,500
(c) Favourable Balance `12,500
(d) Overdraft ` 2,500
24. A cheque issued for ` 108
was recorded twice in the Cash Book. When the balance as per Cash Book is
taken as base, while
preparing the Bank Reconciliation Statement __
(a) ` 108
will be substracted
(b) ` 216 will be added
(c) ` 216
will be substracted
(d) ` 108 will be added
25. The Trial Balance checks
(a) Honesty of Book keeper
(b) Systematic recording of transactions
(c) Arithmetical accuracy of
books
(d) Frauds of Accountant
26. Purchase of computer for
office worth ` 24,000 has been debited to
office expenses A/c. Which type of
error is this ?
(a) Clerical error
(b) Error of Principle
(c) Error of Omission
(d) Error of Commission
27. Which of the following
errors will not affect the Trial Balance ?
(a) Wrong carry forward
balance of an account
(b) Wrong totalling of an
account
(c) Omission of an account
from the Trial Balance
(d) Posting in wrong account
on correct side
28. Purchased goods from
Kavish for ` 4,800 but was recorded to the
debit of Kavish as ` 8,400. In the rectifying
entry, Kavish's A/c will be ________
(a) Credited with ` 13,200
(b) Debited with ` 3,600
(c) Credited with ` 4,800
(d) Debited with ` 13,200
29. In which of the following
errors, Suspense account will be opened in rectifying entry ?
(a) Goods worth ` 4,800
withdrawn by proprietor omitted to be recorded
(b) Goods returned by Naresh` 480
was recorded in sales book
(c) Ramesh who owed us ` 400
has been credited with ` 4,000
(d) Sales of ` 1,296
to Rohitwas entered in the sales book as ` 1,269
30. Which of the following is
NOT an error of commission ?
(a) A sale of ` 1,080
not recorded in books at all
(b) Instead of crediting
Nidhi, Vidhi is credited
(c) Rent paid to landlord was
posted to Landlord's A/c
(d) A purchase of ` 480
was wrongly posted to sales A/c
Attempt ANY ONE Section out of Section A and Section B
Section - A
(From Q. No. 31 to 40)
31. Depreciation is provided
on___
(a) Current Assets
(b) Intangible Assets
(c) Tangible Fixed Assets
(d) Fictitious Assets
32. Which of the following is
not the cause of depreciation ?
(a) Physical wear and tear
(b) Expiry of period
(c) Expiry of legal rights
(d) Theft of an asset
33. A machine was purchased
on 1 April, 2011 for ` 5,00,000 and on 1 October,
2011 a new machine is added for ` 2,00,000. Calculate the
balance of machine account, on March 31, 2012 if depreciation is charged @ 20%
p.a on Written Down Value.
(a) ` 6,00,000
(b) ` 5,60,000
(c) ` 6,60,000
(d) ` 5,80,000
34. X Ltd. Purchased a
machine on 1.1.2012 for ` 2,40,000. Installation
expenses were ` 20,000. Residual value of
machinery after 5 years ` 10,000. On 1.7.2012, repair
expense was incurred to the extent of ` 4,000. Depreciation is
provided @20% by Straight Line Method. Find out the amount of depreciation for
the fourth year.
(a) ` 50,000
(b) ` 34,000
(c) ` 42
,000
(d) ` 50,800
35. Which of the following
statements are correct about “Provisions’
i. Provision is a charge
against profit of an enterprise
ii. Provision is created out
of profit
iii. Creation of provision is
necessary for a business
iv. Provision is created to
meet a known liability
(a) i,ii and iii
(b) ii and iv only
(c) i,iii and iv
(d) i and iv only
36. Who pays the noting
charges initially, when an endorsed bill is dishonoured ?
(a) Drawer
(b) Drawee
(c) Endorser
(d) Endorsee
37. What will be the due
date, If a bill is drawn on 13 July, 2012 for 30 days ?
(a) 15 August, 2012
(b) 14 August, 2012
(c) 17 August, 2012
(d) 16 August, 2012
38. On 1.1.2012 X draws a
bill on Y for ` 1,50,000 for 3 months. X got
the bill discounted on 4.2.2012 @ 12%
p.a. What will be the amount
of discount ?
(a) ` 3,000
(b) ` 6,000
(c) ` 18,000
(d) ` 4,500
39. On 1.6. 2007 X draws a
bill on Y for ` 25,000. At maturity Y
requests X to accept ` 5,100 in cash (including
noting charges ` 100).
For the balance X draws a bill on Y for two months at 12% p.a. What will be the
amount of interest.
(a) ` 410
(b) ` 420
(c) ` 440
(d) ` 400
40. A bill of ` 1,50,000
was discounted by A with his banker of ` 1,45,500.
At maturity the bill returned
dishonored, the noting
charges being ` 200. How much amount will the
banker deduct from A's bank
balance at the time of such
dishonor ?
(a) ` 1,45,500
(b) ` 1,45,700
(c) ` 1,50,200
(d) ` 1,50,000
Section-B
(From Q. No. 41 to 50)
41. Huge expenses incurred on
advertising campaign for a soft drink is which type of expenditure ?
(a) Revenue Expenditure
(b) Capital Expenditure
(c) Deferred Revenue
Expenditure
(d) Prepaid Expenditure
42.. Life Insurance premium
paid by a proprietor ` 3,000 appearing in the Trial
Balance will be-
(a) Debited to Profit and
Loss A/c
(b) Credited to Profit and
Loss A/c
(c) To be shown in Dr. of
P&L A/c and deducted from capital
(d) Deducted from capital
43. Profit and Loss A/c of a
business shows its.
(a) Financial performance at
a particular date
(b) Financial performance for
an accounting period
(c) Financial position at a
particular date
(d) Financial position for an
accounting period
44. Kriti's Trial balance as
at 31 December 2012 contains the following information : 12% Bank loan ` 40,000,
Interest paid ` 3,800.
How much amount of interest will be debited to Profit and Loss A/c
(a) ` 4,800
(b) ` 5,000
(c) ` 1,000
(d) ` 3,800
45. Closing stock appearing
in Trial Balance is shown_
(a) Only on the debit side of
Trading A/c
(b) Only on the credit side
of Trading A/c
(c) Only on the Asset side of
Balance Sheet
(d) On Credit side of Trading
A/c and Asset side in Balance Sheet
46. Trial balance as on 31
December, 2012 shows Debtors ` 5,00,000, Bad Debts ` 15,000
and Provision for
Doubtful Debts ` 1,00,000
Additional Information:
(i)
Further Bad Debts are ` 25,000
(ii)
(ii) Maintain provision@ 10% on debtors
By what amount will the
P&L A/c be debited ?
(a) ` 87,500
(b) ` 1,00,000
(c) ` 47,500
(d) None of the above
47. From the following
calculate total sales of XYZ Ltd.
Opening Stock :` 50,000,
Purchases : ` 1,00,000, Manufacturing
Expenses : ` 30,000., Net Profit is `
25,000, Gross Profit on sales
is 20%
(a) ` 45,000
(b) ` 2,25,000
(c) ` 2,40,000
(d) ` 2,00,000
48. Under the liquidity
approach of marshalling of Assets and Liabilities
(a) The most liquid assets
are presented at the bottom of Balance Sheet
(b) The least urgent payment
are presented at the top of the Balance Sheet
(c) The least urgent payment
are presented at the bottom of the Balance Sheet
(d) The least liquid assets
are presented at the bottom of the Balance Sheet
49. Select the odd one:
(a) Goodwill
(b) Trade Debtors
(c) Outstanding Telephone
Bills
(d) Rent Receivable
50. Which of the following
would not be transferred to Profit and Loss A/c, while preparing Final Accounts
?
(a) Accumulated Depreciation
(b) Bad Debts
(c) Discount Allowed
(d) Bad Debts recovered