Fundamentals of Accounting - Theory and Practices
MCQs - 2018
(1) Accounting cycle begins with:
(A) Preparation of final accounts
(B) Preparation of ledger book
(C) Identification of business transactions
(D) Recording of business transactions
(2) Any written evidence in support of a business transaction is called.............
(A) Journal
(B) Ledger
(C) Trial balance
(D) Voucher
(3) Under FIFO method:
(A) The material received last are issued first
(B) The material received last are issued last
(C) The material received first the issued last
(D) The material received first are issued first
(4) Select the odd one out:
(i) Price list sent to prospective customer.
(ii) Goods supplied to the customer as per the order.
(iii) dismissed the assistant from his job.
(iv) Took Rs. 20 in coins in exchange for Rs. 20 note.
(A) iii
(B) i
(C) iv
(D) ii
(5) Information abstracted from the current capital account of Mr. Amey: Opening balance of current account Rs. 5,000 (Debit balance) interest on drawings is Rs. 1000 interest on fixed capital account is Rs. 2,000 Drawings during the year is Rs. 5,000. His share in a profit of the firm is Rs. 25,000. What will the amount of current capital account at the end of the year?
(A) Rs. 26,000
(B) Rs. 36,000
(C) Rs. 46,000
(D) Rs. 16,000
(6) Mr. Puri is a debtor of Rs. 5,000 and creditor of Rs. 7,000 of Soham traders. Which of the following is correct treatment in final account of Soham traders ?
(A) Rs. 5,000 deducted from both debtors and creditors
(B) Rs. 5,000 deducted from debtors only.
(C) Rs. 7,000 deducted from creditors only.
(D) Rs. 7,000 deducted from both debtors and creditors.
(7) Which of the following is not a financial statement in case of trading concern ?
(A) Balance sheet
(B) Trading account
(C) Profit & loss account
(D) Manufacturing account
(8) Which of the following is not a stage of an accounting cycle?
(A) Recording business transaction in journal or subsidiary books
(B) Preparation of a trial balance
(C) Preparation of ledger
(D) Verify the books of accounts
(9) From the following information ascertain the amount of insurance for the year 2017-18 to be debited to profit & loss account. Insurance (Including Rs. 4,800 for a year ended 30.09.2018) - Rs.8,000
(A) Rs. 2,400
(B) Rs. 5,600
(C) Rs. 3,200
(D) Rs. 8,000
(10) All revenue expenses are recorded in:
(A) Balance sheet
(B) Director's report
(C) Profit & loss account
(D) Annual report
(11) The Accounting for the unpaid Salary and advanced receipt of rent for as certaining the correct Profit and loss is based on ..........
(A) Double Entry system of Accounting
(B) Singal Entry system of Accounting
(C) Mercantile system of Accounting
(D) Cash system of Accounting
(12) Mr. Pranav, a manager, is entitled to a commission @ 10% p.a. on net profit after charging his Commission. If the net profit is Rs. 2,20,000, his Commission amounts to Rs.........
(A) 20,000
(B) 2,000
(C) 2,200
(D) 22,000
(13) Match the following:
|
Nature Of Account |
Type Of Account |
|
(i) Prepaid expenses |
(a) Liability |
|
(ii) Bad debts |
(b) Income |
|
(iii) Outstanding expenses |
(c) Asset |
|
(i) Interest on investment |
(d) Expense |
(A) i - c, ii - d, iii - a, iv - b
(B) i - d, ii - a, iii - b, iv - c
(C) i - b, ii - d, iii - a, iv - c
(D) i - b, ii - d, iii - c, iv - a
(14) Goods return to customer worth Rs. 30,000. In which of the following voucher it will be recorded ?
(A) Debit note
(B) Bank payment voucher
(C) Cheque
(D) Credit note
(15) Hena and Ena are partners in M/s. HE & Co. Their Profit Sharing ratio is 3:2. Their opening balance of capital Account are Rs.1,60,000 and Rs.1,20,000 respectively. Hena is given commission of Rs.5,000 from the profit of the firm. In partnership deed, it is decided to give salary of Rs.1000 p.m. to both partners of 31st march 2018. The firm incurred net divisible profit of Rs.50,000 during the year. Interest on capital is paid Rs.10,000 and Rs.15,000. Drawings made during the year of Rs.3,000 and Rs.4,000 by hena and Ena respectively. What will be the final balance of both partners to br shown in the balance sheet will be:
(A) Rs.2,14,000 and Rs.1,63,000
(B) Rs.1,65,000 and Rs.1,43,000
(C) Rs.1,73,000 and Rs.1,43,000
(D) Rs.2,10,000 and Rs.1,50,000
(16) Anil and Biren are partners in a firm. Anil had withdrawn Rs.300 p.m. at the beginning of each month and biren had withdrawn Rs.500 p.m. at the end of each month. what will be the amount of interest on drawing if the rate of interest on drawing 10% p.a.?
(A) Anil – Rs.180 and Biren – Rs.275
(B) Anil – Rs.195 and Biren – Rs.275
(C) Anil – Rs.180 and Biren – Rs.300
(D) Anil – Rs.195 and Biren – Rs.300
(17) Introduction of fresh capital into the business results into:
(A) Increase in Assets and increase in Equity
(B) Decrease in Liabilities and Increase in equity
(C) Decrease in Assets and Decrease in Liabilities
(D) Decrease in Liabilities and Increase in Cash/Bank
(18) The Assets acquired by the business with an intention to produce goods or provide service and are not held for resale is known as:
(A) Merchandise
(B) Current Assets
(C) Fixed Assets
(D) Stock
(19) Goods of Rs.20,000 destroyed by fire is:
(A) An equation
(B) An event
(C) A transaction
(D) A asset
(20) An Amount received as bank loan is considered as:
(A) Revenue Loss
(B) Revenue Receipt
(C) Capital Receipt
(D) Revenue Expenditure
(21) Provide for bad debts reserve at a 10% p.a. on debtors of Rs.50,000 after charging bad debts of Rs.5000 is of what amount and that is provided as per which convention?
(A) Rs.4,500 and conservatism convention
(B) Rs.5,000 and Consistency
(C) Rs.5,000 and Materiality
(D) Rs.4,500 and Prudence Convention
(22) Match the following:
|
Type of Account |
Nature of expenses/Asset |
|
(i) Personal Account |
(a) Salesman commission |
|
(ii) Real Account |
(b) Outstanding expenses |
|
(iii) Nominal Account |
(c) Goodwill |
(A) i-b, ii-c, iii-a
(B) i-a, ii-c, iii-b
(C) i-c, ii-a, iii-b
(D) i-a, ii-b, iii-c
(23) Which of the following is/are considered as transactions?
(i) Cash of Rs.50,000 brought by the owner and started business
(ii) Goods destroyed by fire Rs.10,000
(iii) received an order of Rs.20,000 from the customer
(iv) Goods supplied to customer as per his order worth Rs.20,000
(A) Only i
(B) i, ii and iii
(C) i, ii and iv
(D) i and iv
(24) Which of the following statement is correct for finding out the networks cost of production?
(A) Prime cost + administration and selling overheads + opening stock – closing stock
(B) Prime cost + factory overheads + opening stock – closing stock
(C) Prime cost + administration overheads + opening stock – closing stock
(D) Prime cost + factory and selling overheads + opening stock – closing stock
(25) Mr. Swayam carrying on real estate business, sold a piece of land for Rs.40,00,000 (cost Rs.35,00,00) then the type of receipt is .......
(A) Deferred Revenue
(B) Capital
(C) Revenue
(D) None of the above
(26) Accounting policies should not be changed from one period to another, according to:
(A) Accounting period
(B) Prudence
(C) Materiality
(D) Consistency
(27) On 15th February 2018, mr. sailesh purchased goods from M/s mehta & co. for Rs.1,00,000 of which he has paid Rs.50,000 by cash and Rs.50,000 by cheque of bank of Baroda from this available information identify which of following vouchers are to be prepared by the Mr. sailesh for the accounting purpose?
(A) Cash Payment voucher Rs.50,000 and bank receipt voucher Rs.50,000
(B) Cash payment voucher Rs.50,000 and bank receipt voucher Rs.50,000
(C) Cash receipt voucher Rs.50,000 and bank receipt voucher Rs.50,000
(D) Cash payment voucher Rs.50,000 and bank payment voucher Rs.50,000
(28) Return inward appearing in the trial balance is to be deducted from:
(A) Purchases
(B) Opening stock
(C) Closing stock
(D) Sales
(29) IFRS stands for:
(A) International Financial Reporting Standard
(B) International Financial Reporting System
(C) Indian Financial Reporting System
(D) Indian Financial Reporting Standard
(30) Which of the Following is not an example of intangible Asset?
(A) Land
(B) Goodwill
(C) Patents
(D) Trademark and Copy Right
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