Time Allowed: 90
Minutes Max. Marks: 40
General Instructions :
— This paper contains Multiple Choice
Questions.
— All questions are compulsory.
— Only correct specific serial number should
be marked.
__________________________________________________________________________
1.
If
Capital of a business is Rs. 40000, Creditors Rs. 25000 and Revenue/ Expense
Rs. 40000 and Rs. 50,000 respectively, then value of assets will be Rs. _______________
a) 65000 b)
75000 c) 55000 d) NIL
2. Patents
is a/an __________
a) Expense b) Revenue c) Assets d) Intangible Assets
3. If list price of goods is Rs. 1000. Then
amt. of trade discount @ 10% will be Rs. _____________ and
cash
discount @ 5% will be Rs. ______________
a) 100 – 45 b) 100 – 5 c)
1000 – 50 d) 900 – 45
4. Bank
Rec. Statement prepared by ___________________
a) Bank only b) Customer of Bank c) Auditor d)
All above
5. Trial
Balance is prepared according to ___________ method.
a) Balancing b) Total c)
Both option a and b d) other then
a, b and c
6. Select
odd one out of following:
a)
carriage inward b) carriage
outward c) commission d)
commission received
7. Mark
odd one out of following:
a) Rent a/c Dr b) Drawing a/c Dr c) Purchase a/c Dr d) Stationery a/c Dr
To Cash a/c To
Cash a/c To
Cash a/c To Cash a/c
8. Pick odd one out of following:
a) Cash
received from Debtor b) Machinery purchase from M/s Cash
c) Interest
Received d)
Salary paid to Ramesh
9. Match
the followings and choose the correct option:
A) Personal Nature 1) Loss, Sales, Salary
B) Real Nature 2) Ram (customer), outstanding salary
C) Nominal Nature 3) Old Machinery, Copy
right
a) A-2, B-1, C-3 b) C-1, A-2, B-3 c) B-2, C-3, A-1 d) None above
10. Match the following and choose the correct
sequence:
1) Purchase and Sale of fixed assets A) Journal Proper
2) Bad Debt. B) Cash Book
3) Goods Purchase on Credit C) Purchase Book
4) Machinery Sold D)
Sales Book
a) 1-B, 2-A, 3-C,
4-B b)1-C, 2-A, 3-C, 4-D c)
1-B, 2-B, 3-C, 4-B d) No proper
match found
11. Match the following and select correct
sequence
1) Depreciation a) Oil Well, Rivers
2) Depletion b) Trade Marks, Copyrights
3) Amortisation c) Car, Laptop, Almira
a) 1-B, 2-A, 3-C b) 1-C, 2-B, 3-A c) 1-A, 2-B, 3-C d) 1-C, 2-A, 3-B
12. Which
out of following statement is/are false
1) Depreciation always debited 2) Dep., Depletion and Amortisation
have same meaning
3) Dep is a non cash transaction
a) Only 1 b) Only 2 c) Only 3 d) All options
13. Assertion
(A) : Window Dressing is a limitation of accounting.
Reason
(R) : Window Dressing disclosed all Vital facts because of full disclosure
principle.
Select the following options as per
above assertion (A) and reason (R)
a) Both A
and R correct b)
Both A and R Incorrect
c) A is correct but
R is not correct d) A is incorrect but R
is correct
14. Assertion (A): Cash basis accounting is
more reliable because it’s easy to maintain.
Reason
(R): Cash basis accounting follow accounting
principle, hence reliable.
Select the following options as per
above assertion (A) and reason (R)
a) Both A and R
correct b) Both A and R
Incorrect
c) A is correct but
R is not a perfect explanation of A d) A is incorrect but R
is correct
15. Assertion
(A): Both expense and expenditure are different terms.
Reason (R): Expense gives benefit to firm during a
accounting year whereas Expenditure might gives
benefit in
both a accounting year in form of revenue expenditure and more then one
accounting
year in form of fixed assets
Select the following options as per
above assertion (A) and reason (R)
a) Both A and R correct b)
Both A and R Incorrect
c) Both A and R correct
and R is a perfect explanation of A d) A is incorrect but R is correct
16. Assertion (A):
Cash Memo is prepared when goods sold for cash.
Reason (R): Cash Memo is a source
voucher and before recording into journal we prepared
accounting
voucher.
Select the following options as per
above assertion (A) and reason (R)
a) Both A
and R correct b) Both A and R Incorrect
c) A is correct but
R is not a perfect explanation of A d) A is incorrect but R
is correct
17. Assertion (A):
A Bank Reconciliation Statement is not a part of double entry book keeping
system.
Reason (R): Bank Reconciliation Statement is prepared
only to match our cash book bank column
balance with
Bank pass book balance.
Select the following options as per
above assertion (A) and reason (R)
a) Both A
and R correct b)
Both A and R Incorrect
c) A is correct but
R is incorrect d)
A is incorrect but R is correct
18. Out of following transactions which are
business transactions, select the correct sequence:
a) Paid Wages b) Received advance against sale of
goods c) Received order for sale of
goods
d) Machinery purchase without paying
cash/cheque e) Expected loss due to
insolvency
f) Amount withdrawn by owner from his
saving bank account.
1) B,C,E,F 2) A,C,D,F 3) A,B,D,E 4) C,D,E,F
19. Return outward means:*
a) Sales Return b) Cash Purchase Return c) Cash Sales Return d) Credit Purchase Return
20. At time of sales return which source
voucher will be prepared:
a) Transfer
Voucher b) Debit Note c) Credit Cash voucher d)
Credit Note
21. Bank Statement show a Debit balance of
Rs. 8500. It’s found that a deposit of Rs.1500 uncredited
and
unpresented cheque of Rs. 2000 not in pass book. Find the balance as per cash
book.
a)
Overdraft Rs.8000 b)
Debit Rs.9000 c) Credit Rs.9000 d) Overdraft Rs.12000
22. While prepare ledger, if both Debit and
Credit side total not equal then what will we do.
a) Checking b) Balancing c) Posting d)
Transfer
23. Following transactions given below. Find
the capital at end.
1) Start Business with Rs.40000 2) Commission paid in advance
Rs.1000
3) Accrued Commission Rs.2800 4) Commission due but not paid Rs.
800
a) 38200 b) 39000 c) 42800 d) 42000
24. Nature of goodwill account is:
a) Personal b) Nominal c) Real d) Artificial
25. Life insurance paid by firm is debited
to:
a) Drawing b)
Capital c) Life
insurance d) Sundry Expense
26. Sold goods to Prem costing Rs.50000 at a
profit of 20% on cost at a trade discount @10% and cash
discount @5%. Prem give 1/3 payment at
time of sales. Which journal entry is correct:
1)
Cash
a/c Dr 17100 2)
Cash a/c Dr 17100 3) Cash a/c Dr 19000
Disc.
Allowed Dr 900
Trade Disc Dr 6000 Disc allow Dr 1000
Prem Dr 36000
Disc. Allow Dr 900 Prem a/c
Dr 40000
To Sales a/c 54000 Prem Dr 36000 To Sales a/c 60000
To Sales60000
a)
only 1 b) only 2 c) only 3 d)
all wrong
27. Goods sold for Rs.24000 at a trade
discount of 10% and cash discount of 10%. If half payment
received at time of sales, then what
is the correct option for GST calculation if its @ 12%.
a) Output IGST
Rs.2462 b)
Input CGST & SGST Rs.1231 each
c)Output CGST
& SGST Rs. 1296 each d) Output CGST & SGST
Rs. 1231 each
28. Under which principal man power will be
recorded into books of accounts.
a) Matching b) Materiality c) Money Mesurement d) None above
29. Trial Balance is Prepared for
a) To check
arithmetical accuracy books of accounts b)
To preparation of final accounts
c) Both option A and B d)
Only option B
30. Cost of asset is Rs.126000 and scrap
value Rs.6000. if useful life of asset is 6 year’s then rate of
Depreciation will be
a)
14% b)
15.56% c) 15.87% d) 15.80%
31. Find out balance as per cash book from
following particulars
1) Overdraft as per pass book Rs. 10000 2) Cheque deposited but not credited
Rs 4000
a)
overdraft Rs. 14000 b) overdraft Rs.
8000
c) overdraft Rs. 6000 d) favourable
Rs.6000
32. Choose the correct treatment of this
example: Rent due but to be received later.
a) Add in Asset in form of cash and Add in Capital
due to addition of capital
b) Add
in Asset in form of Accrued Rent and Less in Capital due to expense
c) Add in Liability in form of O/S Rent and
Add in Capital due to Income
d) Add in Assets
in form of Accrued Rent and Add in Capital due to Income
33. Reserve is created
a) To meet
unforeseen losses b) To
give strengthen to financial position of business
c) Either A or B d) Neither A nor B
34. Baba Enterprises purchase an old
machinery on 1st April 2016 for 37,000 and spent Rs.2000
On its repair and Rs.1000 on its
erection. On 1st October 2017 it purchased another machine for
Rs.10000 and on 1st October
2018 sold off the 1st machinery for Rs.28000. On the same day it
Purchase another machine for Rs.25000.
On 30th September 2019 the 2nd machinery was sold for
Rs.2000.
Depreciation was provided @10% p.a on
machinery. Give answer of following as per above case:
1) How much gain/loss on sale of M-1
a) Profit Rs.2000 b) Loss Rs. 4000 c) Loss Rs.2000 d) No profit/loss
2) Total Depreciation of M-2 till date
of sale
a) Rs.2000 b) Rs. 2305 c) Rs.3000 d) Rs.1878
3) Which accounting principal /
assumption following by Baba Enterprises
a) Accrual
assumption b) Going Concern c) Consistency Assumption d) All A,
B and C
35. On 1st April cash book have
an overdraft balance of Rs.5000 in his bank column. Cheques deposited
amounted Rs.20000 and cheque issued for Insurance
Rs.7000
A interest of Rs.700 also allowed by
bank and Owner withdrawn from bank Rs. 750 for his personal
use.
During April firm purchase a Machinery amounting Rs 10000 from Ram and paid him
Rs. 2000
through cheque. A bill Rs.5000 with a
maturity of 6 months, discounted @6% p.a.
Required: Give answer following
question and select appropriate option.
1)
What amount will be recorded for Bill discounted in Cash book
a) Debit
Bank Rs. 4700 b)
Credit Bank Rs. 4850
c) Debit cash
and Credit Bank by Rs. 4850 d) Debit Bank Rs. 4850
2)
Where will we record machinery amount
a)
Rs.2000 in cash book and Rs.8000 in purchase book b) Rs.10000 in cash book
c) Rs.8000 in Journal
Proper and Rs.2000 in Cash book d) Rs.2000 in Journal
Proper and
3)
Where we record interest allowed by bank
a)
Debit side Bank column b) Credit side cash column c) Journal Proper d) Both a and b
4)
What is the closing balance of cash book bank column
a) Credit
25550 b) Debit 17800 c) Credit 22800 d) Debit 10800
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