Question:

Which one of the following is an example of Personal Account?

A.

Machinery

B.

Rent

C.

Cash

D.

Creditor

Answer» d. Creditor

Question:

The original cost of the machine is 19,00,000; machine installation charges are 1,00,000; working life of the machine is 5 years and residual value is 40,000. If the depreciation is charged on Straight Line basis then 4th year’s depreciation will be:

A.

3,72,000

B.

4,00,000

C.

3,92,000

D.

3,52,000

Answer» c. 3,92,000

Question:

Difference in Bank Balance as per Pass book and Cash book may arise on account of

A.

Cheque issued but not presented

B.

Cheque issued but dishonoured

C.

Cheque deposited not credited by bank

D.

All of the above

Answer» d. All of the above

Question:

Which one of the following is not a negotiable instrument?

A.

Currency Note

B.

Promissory Note

C.

Bill of Exchange

D.

Crossed Cheque

Answer» a. Currency Note

Question:

Which of the following items are shown in the income and expenditure account?

A.

Only items of capital nature.

B.

Only items of revenue nature which are received during the period of accounts.

C.

Only items of revenue nature pertaining to the period of accounts.

D.

Both the items of capital and revenue nature.

Answer» c. Only items of revenue nature pertaining to the period of accounts.

Question:

Closing stock appearing in the trial balance is shown in

A.

Trading A/c and Balance sheet

B.

Profit and Loss A/c

C.

Balance Sheet only

D.

Trading A/c only

Answer» c. Balance Sheet only

Question:

As regards the accounting treatment, Legacy should be

A.

treated as loss

B.

capitalized

C.

treated Revenue Expenses

D.

treated Deferred Revenue

Answer» b. capitalized

Question:

The value of an asset after deducting depreciation from the historical cost is known as

A.

Fair value

B.

Market value

C.

Net realizable value

D.

Book value

Answer» d. Book value

Question:

Identify the Personal Account from the following

A.

Salary Payable Account

B.

Taxes paid account

C.

Investment Account

D.

Trademark Account

Answer» a. Salary Payable Account

Question:

Errors in carry forward of closing balances from one year to another which affects

A.

Nominal accounts

B.

Real accounts

C.

Personal accounts

D.

Both (B) and (C)

Answer» d. Both (B) and (C)