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Accounting Multiple choice questions and answers

Accounting Multiple choice questions and answers

1. The Fixed Assets of a company is double of the current assets and half of capital. If the current assets are Rs.3,00,000 and investments Rs.4,oo,ooo, calculate the current liabilities assuming that there are no other items in the balance sheet.



Which of the following errors are not revealed by the trial balance?



After the rectification of following errors, the Net profit will be


4. A, B, c & D are equal partners in a firm. They changed the profit sharing ratio as 2: 2: 1: 1. The sacrificed share of ‘D’ is _____



A and B are partners in a firm in the profit sharing ratio of 2:3. C is admitted as a new partner. A sacrificed 1/3rd of his share and B 1/41h of his share in favour of C. Find the new profit sharing ratio of A, B & C.


6. If del-credere commission is allowed for bad debts, consignee will debit the bad debts amount to:



Insurance Claim received for the damage of machinery due to fire is considered as _____


8. When the two aspects of a transaction are posted in the Cash Book itself, such an entry is called as _______



If an accommodation bill of Rs.50,000 is discounted for Rs.49,000 and the proceeds are shared by X & Y m the ratio of 1: 4, the discount to be borneby Y is _____


10. Errors are rectified by using Suspense A/



Which of the following financial statements will be provided to the outsiders?

1. Balance sheet
2. Cash Flow Statement
3. P & L A/c
4. Trial Balance



Trade Receivables as per Trial Balance = Rs.80,000.

Further information:

1. Bad debts Rs.2,000

2. Provision for discount on Trade Receivables @ 5% will be _____


13. A, B, c & D are equal partners in a firm. They changed the profit sharing ratio as 2: 2: 1: 1. The sacrificed share of ‘D’ is _____



Average inventory is Rs.28,000. Closing inventory is Rs.6,000 more than opening inventory. Then find the value of closing inventory.



The nature of Consignment A/c and Consignee’s A/c will be _____



A, 8 and c are partners in a firm, sharing profits & losses in the ratio of 5:3:2 respectively. The balance of capital is Rs.50,000 each for A & Band Rs.40,000 for ‘C’. ‘B’ decides to retire from the firm. The goodwill of the firm is valued at Rs.30,000 and profit on revaluation of assets and liabilities was Rs.5,000. The firm also has a balance in the Reserve A/c at Rs.15,000 on that date. What amount will be payable to ‘B’?


17. X sold goods to Y at cost+ 10%. Y sold the goods to Z at cost+ 20% profit on sales. Cost of the goods to Xis Rs.50,000. Find out the cost of the goods to



A dealer sends his goods on sale or return basis. He sends goods for Rs.10,000 and records as normal sale. The profit on sale is 20%. The value of physical inventory taken is Rs.50,000. Then the value of closing inventory appearing in the Balance Sheet will be:



. A and B are partners in a firm with capitals of Rs.5,00,000 each. They admit C as a partner with 1/4th share in the profits of the firm. C brings in. Rs.8,00,000 as his share of capital. The Profit and Loss account showed a credit balance of Rs.4,00,000 as on the date of his admission. The value oh hidden good will be.


20. A Bill of Exchange, before its acceptance is called as


21. Accrued Income appears on the _______


22. A, B, c & D are equal partners in a firm. They changed the profit sharing ratio as 2: 2: 1: 1. The sacrificed share of ‘D’ is _____


23. The assets which were earlier revalued upward and now revalued downward, to the extent of earlier upward revaluation amount should be.



OD balance as per pass book is Rs. 2175/- Cheques of Rs.100, Rs.175 and Rs.150 are issued, but not yet presented for payment. A Cheque of Rs.600 is deposited in bank but not yet cleared. Find out the OD balance as per cash book.



 Out of the following statements, Identity the wrong statement.


26. Goods sent on consignment for Rs.50,000. During transit 1/lOth of goods were destroyed by fire. Again 1/91h of goods received by consignee were destroyed by fire in godown. Half of the remaining goods were sold for Rs.30,000. Freight & insurance paid by consignor were Rs.2,500 and Rs.1500 respectively. Calculate closing inventory



Entries for prepaid expenses, outstanding expenses and depreciation are called as _____


28. Trial Balance shows arithmetical accuracy of ledger accounts, but it is not a _____ proof of accuracy.


29. A Machinery was purchased by X Ltd. on 01- 01-13. Depreciation was charged at 15% p.a. under SLM. With effect from the 2nd year depreciation was charged under WDV method at the same rate. The WDV of the machinery on 01-01-15 was Rs.3,68,475. Find the original cost of the machinery



List price of the goods purchased= Rs.60,000 Cash paid = Rs.45,000 {After receiving a cash discount of Rs.9,000). Trade discount= ?


Question 1 of 30

Updated: September 9, 2019 — 5:11 am

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