Question:

Fixed Assets and Current Assets are categorized as per concept of

A.

Separate Entity

B.

Going Concern

C.

Consistency

D.

Time period

Answer» b. Going Concern

Question:

Select correct journal entry to rectify an error “An amount of 10,000, withdrawn by owner for personal use debited to Trade Expenses Account”. Debit Credit

A.

Drawing Account Trade Expenses a/c

B.

Trade Expenses a/c Drawing Account

C.

Drawing Account Cash Account

D.

Trade Expenses a/c Cash Account

Answer» b. Trade Expenses a/c Drawing Account

Question:

The periodical total of the Sales Return Book is posted to the

A.

Debit side of Sales Account

B.

Debit side of Sales Return Account

C.

Credit side of Sales Return Account

D.

Debit side of Debtors Account

Answer» b. Debit side of Sales Return Account

Question:

A bad debt recovered during the year will be

A.

Capital Expenditure

B.

Revenue Expenditure

C.

Capital Receipt

D.

Revenue Receipt

Answer» d. Revenue Receipt

Question:

At the end of the year Bad Debts Recovered Account is

A.

Debited to Debtors Account 4

B.

Credited to Debtors Account

C.

Credited to Profit & Loss Account

D.

Debited to Profit & Loss Account

Answer» c. Credited to Profit & Loss Account

Question:

Which of these items are taken into consideration for preparation of adjusted cash book?

A.

Mistake in cash book

B.

Mistake in pass book

C.

Cheque issued but not presented for payment

D.

Cheque deposited but not cleared by bank

Answer» a. Mistake in cash book

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