Which of the following statements are true? 1. When the amount deposited by the customer exceeds his withdrawal, it indicates an overdraft. 2. At the end of each year, the bank prepares the Bank Reconciliation Statement. 3. A Bank Reconciliation Statement is prepared with the help of the Passbook and Cash Column of the Cashbook. 4. Passbook always shows a credit balance. Code:
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 52
Favourable balance of Cashbook means
See answer
Correct answer: (A) Debit balance as per Cashbook
1 marks · 2023 · Set A
Question 53
While preparing a Bank Reconciliation Statement, the balance as per Passbook will have to be _____ or the balance as per Cashbook _____ by the amount of direct payment by customers into the trader’s A/c with the banker.
See answer
Correct answer: (C) Decreased, increased
1 marks · 2023 · Set A
Question 54
For charging depreciation on which of the following assets is the depletion method adopted?
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 55
Which of the following statements is true?
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 56
If the due date is a public holiday, what will be the due date of the bill?
See answer
Correct answer: (B) Preceding day
1 marks · 2023 · Set A
Question 57
On dishonour of a discounted bill, which account is credited by the drawer?
See answer
Correct answer: (B) Bank A/c
1 marks · 2023 · Set A
Question 58
Under what circumstance are the drawer and payee of a Bill of Exchange the same person?
See answer
Correct answer: (A) When the drawer retains the bill till maturity
1 marks · 2023 · Set A
Question 59
Consignment stock will be recorded in the Balance Sheet of the consignor on the assets side at
See answer
Correct answer: (B) Invoice price less stock reserve
1 marks · 2023 · Set A
Question 60
Abdul and Binny enter into a joint venture for purchase and sale of Smart Board. Abdul purchased Smart Board costing ₹10,00,000; repairing expenses were ₹1,00,000 and printing expenses were ₹1,00,000. Binny sold it at a 20% margin on selling price. The sales value will be
See answer
Correct answer: (B) ₹15,00,000
1 marks · 2023 · Set A
Question 61
Which of the following statements is true?
See answer
Correct answer: (B) When a separate set of books is maintained, expenses paid by a venturer will be credited to the Venturer’s Capital A/c.
1 marks · 2023 · Set A
Question 62
“Legal expenses incurred to defend a suit for breach of contract to supply goods” is
See answer
Correct answer: (B) Revenue Expenditure
1 marks · 2023 · Set A
Question 63
Business paid Mr. Anuj a cheque of ₹80,000 as salary on 25th June, 2023. Mr. Anuj went to the bank to deposit the cheque in his account on 3rd July, 2023. What entry is to be passed in the Balance Sheet on the date of Final A/c?
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 64
Insurance premium paid by a firm on 1st December, 2021 for the year up to 30th November, 2022 was ₹18,000, and the premium paid on 1st December, 2022 for the year up to 30th November, 2023 was ₹30,000. What amount will be debited to Profit & Loss A/c for the year ended 31st March, 2023?
See answer
Correct answer: (C) ₹22,000
1 marks · 2023 · Set A
Question 65
“The accountant of a firm desires that adjustments for outstanding expenses and prepaid expenses should not be made while preparing financial statements.” In the above statement, which accounting concept will be violated?
See answer
Correct answer: (A) Accrual concept
1 marks · 2023 · Set A
Question 66
Control is the fourth sub-system of the Accounting Information System because it
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 67
Match List I with List II: List I: a. Executive Support Systems (ESS); b. Management Information Systems (MIS); c. Decision Support Systems (DSS); d. Transaction Processing Systems (TPS). List II: 1. Information systems at management level serving planning, controlling and decision-making by providing routine summary and exception reports; 2. Helps make decisions at the strategic level through advanced graphics and communications; 3. Computerized systems that perform and record daily routine transactions necessary to conduct business; 4. Information systems at the organization’s management level that combine data and analytical reports to support decisions. Select the correct answer using the codes given below.
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 68
Developing software according to the needs and specifications of users is called
See answer
Correct answer: (D) More than one of the above
1 marks · 2023 · Set A
Question 69
When shares are forfeited, the Share Capital A/c is debited by
See answer
Correct answer: (B) Called-up amount
1 marks · 2023 · Set A
Question 70
Which of the following statements is/are false? 1. The Receipts and Payments A/c records receipts and payments of revenue nature only. 2. Only revenue items are disclosed in the Income and Expenditure A/c. 3. Subscriptions received in advance in the current year are treated as assets of the not-for-profit organization. Code:
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 71
Donation received for a specific purpose
See answer
Correct answer: (A) Should be credited to a separate account and shown on the liabilities side of the Balance Sheet
1 marks · 2023 · Set A
Question 72
Which one of the following is a Not-for-Profit Organization?
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 73
A company sold 20% of the goods on a cash basis and the balance on a credit basis. Debtors are allowed 1½ months’ credit and their balances on 31st March, 2023 are ₹1,25,000. Assume sales are uniform throughout the year. Credit sales would be
See answer
Correct answer: (B) ₹10,00,000
1 marks · 2023 · Set A
Question 74
The amount of closing stock would be, when Sales = ₹6,00,000; Opening Stock = ₹50,000; Purchases = ₹5,00,000; Productive Wages = ₹10,000; Carriage Inwards = ₹7,000; Rate of Gross Profit on cost = 20%.
See answer
Correct answer: (B) ₹67,000
1 marks · 2023 · Set A
Question 75
Adesh and Bhadresh are partners sharing profits and losses in the ratio 3:2. Chandresh is admitted for a 20% share in profits, half of which is gifted by Adesh and the remaining half is acquired by Chandresh from Adesh and Bhadresh in equal proportion. What will be the new profit-sharing ratio?
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 76
Mathur started a business by investing ₹6,76,000 as capital. After 4 months, Goyal joined the business by investing capital of ₹5,07,000. A total of ₹2,60,000, including 25% of the total profit, was given to Goyal for conducting business at the end of the year. How much profit will Mathur get?
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 77
Mannu and Bhanu are partners. Bhanu wants to admit his son Channu into the business. Can Channu become a partner of the firm?
See answer
Correct answer: (A) Yes
1 marks · 2023 · Set A
Question 78
L, S and D are partners sharing profits in the ratio 2/5, 3/7 and 3/10. If S retires from the firm, what will be the gain ratio of L?
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 79
Arjun, Bansi and Chelsi are partners in a firm. Chelsi died on June 30, 2023. Sales for 2022–23 were ₹30,00,000 and profits were ₹6,00,000. Sales from April 1, 2023 to June 30, 2023 were ₹7,50,000. What would be the deceased partner’s share in the current year’s profits?
See answer
Correct answer: (A) ₹50,000
1 marks · 2023 · Set A
Question 80
Discount allowed on the reissue of forfeited shares cannot exceed
See answer
Correct answer: (A) The amount received on the forfeited share
1 marks · 2023 · Set A
Question 81
Which technique(s) can be used in connection with analysis and interpretation of financial statements? 1. Funds Flow Statement 2. Net Working Capital Analysis 3. Cash Flow Statement 4. Ratio Analysis. Code:
See answer
Correct answer: (D) More than one of the above
1 marks · 2023 · Set A
Question 82
Rate of return on equity share capital is calculated after deducting _____ and _____ from net profit before interest.
See answer
Correct answer: (B) Interest, preference dividend
1 marks · 2023 · Set A
Question 83
Match List I with List II: List I (Useful ratio): a. Finished goods turnover ratio; b. Interest coverage ratio; c. Debt-service coverage ratio; d. Current ratio and quick ratio. List II (Symptom): 1. Liquidity crisis; 2. Inability to pay dues to financial institutions; 3. Inability to pay interest; 4. Falling demand for the product in the market. Select the correct answer using the codes given below.
See answer
Correct answer: (A) a-4, b-3, c-2, d-1
1 marks · 2023 · Set A
Question 84
Furniture for a cloth dealer is a/an
See answer
Correct answer: (B) Fixed asset
1 marks · 2023 · Set A
Question 85
Declared and paid dividend of ₹7,00,000 is
See answer
Correct answer: (B) Cash used for financing activities: ₹7,00,000
1 marks · 2023 · Set A
Question 86
The basic function of financial accounting is to
See answer
Correct answer: (D) More than one of the above
1 marks · 2023 · Set A
Question 87
Revenue from the sale of goods ordinarily is reported as part of the earnings in the period
See answer
Correct answer: (A) The sale is made
1 marks · 2023 · Set A
Question 88
The statement containing various ledger balances on a particular date is known as
See answer
Correct answer: (A) Trial Balance
1 marks · 2023 · Set A
Question 89
The note sent to a customer when he returns goods is known as
See answer
Correct answer: (C) Credit Note
1 marks · 2023 · Set A
Question 90
Passbook is the statement of account of the customer maintained by the
See answer
Correct answer: (A) Bank
1 marks · 2023 · Set A
Question 91
The statement prepared to reconcile the balance of Cashbook and Passbook is known as
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 92
For depreciation on leasehold property, the appropriate method of depreciation is
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 93
At the time of renewal of a bill, Interest A/c is debited in the books of the
See answer
Correct answer: (C) Drawee
1 marks · 2023 · Set A
Question 94
The account maintained by a businessman with his bankers is known as
See answer
Correct answer: (A) Current A/c
1 marks · 2023 · Set A
Question 95
Sales are equal to
See answer
Correct answer: (E) None of the above
1 marks · 2023 · Set A
Question 96
Cash receipts from the sale of grass by a club are treated as
See answer
Correct answer: (B) Revenue receipt
1 marks · 2023 · Set A
Question 97
In the case of the net-worth method of single entry, net profit is ascertained by
See answer
Correct answer: (B) Comparing capital between the opening and closing period
1 marks · 2023 · Set A
Question 98
If the rate of Gross Profit is 25% on Cost of Goods Sold, it is _____ on sales.
See answer
Correct answer: (A) 20%
1 marks · 2023 · Set A
Question 99
When the new partner brings his share of goodwill in cash, the amount is debited to
See answer
Correct answer: (C) Cash A/c
1 marks · 2023 · Set A
Question 100
A and B are partners in the ratio 2:1. They admit C by giving him a 1/3 share. The new ratio will be