Date- / /2013
Marks-38
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Accounting process
Test Paper
Time: 1 ½ hour
1. Capital of business is Rs. 75,000 and liability is Rs. 25,000 then total assets of business would be:
(a) Rs. 1, 00,000
(b) Rs. 15,000
(c) Rs. 75,000
(d) Rs. 50,000
2. General reserve account and Dividend Equalization fund account are:
(a) Personal account
(b) Real account
(c) Nominal account (d) None
3. Journal records the transaction of the firm in a:
(a) Analytical manner
(b) Chronological manner
(c) Periodic manner
(d) Summarized manner
4. Bank overdraft account is a:
(a) Personal a/c
(b) Real a/c
(c) Nominal a/c
5. Unexpired expenses is ----------- account.
(a) Real account
(b) Nominal account
(c) Personal account
(d) Representative personal a/c
(d) Representative personal a/c
6. Goods worth Rs. 10,000 were withdrawn by the proprietor for his personal use. The account to be credited is
(a) Sales a/c
(b) Drawing a/c
(c) Purchase a/c
(d) Expenses a/c
7. Discount is allowed by Arun to Varun. Which of the following should be the course of action in the books of
Arun?
(a) Credit Varun a/c and debit discount allowed a/c
(b) Debit Varun a/c and credit discount received a/c
(c) Credit Arun a/c and debit discount allowed a/c
(d) Debit Arun a/c and credit discount received a/c
8. “Debit the receiver and credit the giver” is the golden rule for which type of account?
(a) Real account (b) Personal account
(c) Nominal account
(d) None of these
9. Value of goods drawn by proprietor should be credited to:
(a) Capital account
(b) Sales account
(c) Drawings account
(d) Purchases account
10. The credit balance of a personal account shows:
(a) Cash in hand
(b) The amount payable
(c) Income
(d) Amount receivable
11. Purchase return account always shown a _______ balance
(a) Debit
(b) credit
(c) Either (a) or (b)
12. Which of the following is a real account?
(a) Building a/c
(b) Capital a/c
13. Credit balance of ledger is ________.
(a) Revenue or an asset
(c) Rent a/c
(d) None
(d) All of these
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(b) A revenue or a liability
(c) An expenses or an assets
(d) An expenses or a liability.
14. Trial balance is prepared on:
(a) End of the year
(b) A particular date
(c) For the period ending
(d) Both “a” and “b”
15. Which of the following is not a process in the preparation of a Trial Balance?
(a) Recording
(b) Summarizing
(c) Classifying
(d) Interpretation
16. Which of the following in Trial Balance is contradictory to each other?______
(a) Inventory and drawing
(b) Sales and purchase return
(c) Carriage inward and outward
(d) Trade receivable and liability
17. Which of the following will not affect the agreement of Trial Balance?
(a) An amount of purchase of Rs. 10,000 recorded in Cr. A/c s Rs. 1,000
(b) Customer account debited with amount of cash received
(c) An entry of Rs. 1,000 was credit with twice the amount.
(d) An entry posted twice in the ledger.
18. Trade discounts are:
(a) Recorded in the books
(b) Not recorded in the books
(c) Not used for determining the not price
(d) Used for specific purpose in accounting
19. Which of the following is not a subsidiary book?
(a) Sales book
(b) Purchase book
(c) Cash book
(d) B/R Book
20. Total of the purchase return Book is posted to the ______ side of Purchase return account in the ledger:
(a) Debit
(b) Credit
(c) No where
(d) None of these.
21. Cash book is a form of:
(a) Trial balance (b) Ledger
(c) Journal
(d) All of the above
22. Imprest amount- Rs. 500. What will be the amount of re-imbursement if following expenses were incurred by
the petty cashier during the month- telephone = Rs. 150, Tiffin = Rs. 50, small Repairs = Rs. 30 general expenses=
Rs. 100.
(a) 300
(b) 170
(c) 330
(d) 270
23. Interest received of Rs. 100 was recorded as interest paid. What will be the effect on cash balance?
(a) Cash will reduce by 100.
(b) Cash will increase by 200.
(c) Cash will reduce by 200.
(d) No effect on cash balance.
24. Rent due for the month of March will appear ________ in the cash book.
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(a)
(b)
(c)
(d)
On the receipt side
On the payment side
As a contra entry
No where
25. Capital receipts are represented in:
(a) Balance sheet
(b) Trading account
(c) Profit & loss a/c
(d) manufacturing a/c
26. Brokerage on the issue of shares and debentures is a________ expenditure:
(a) Revenue
(b) Capital
(c) Deferred Revenue (d) partly Revenue
27. What is the difference between deferred revenue expenditure and prepaid expenses?
(a) Accounting treatment
(b) Estimation of amount
(c) Benefit for more than one accounting period
(d) Nature of expenditure
28. A truck was purchased and after sometime, the name of the company was painted on it for advertisement
purpose for Rs. 1,000/- this is
(a) Capital expenditure
(b) Deferred revenue
(c) Revenue expenditure
(d) None
29. Contingent assets is not recognized in the financial statements on the basis of ___accounting concept:
(a) Prudence
(b) Materiality
(c) Substance over form
(d) Going concern
30. Bill discounted with a bank is ______.
(a) Contingent liability
(b) Current liability
(c) Current asset
(d) None of these
31. Income tax demand, disputed by a company is ______.
(a) Contingent liability
(b) Current liability
(c) Long term liability
(d) None of these
32. Suspense a/c is a:
(a) Nominal a/c
(b) Real a/c
(c) Personal a/c
(d) Any of the above
33. A machine was purchased for Rs. 3,000 which was wrongly recorded in purchase A/c. Due to this error:
(a) Trial balance will shown difference by Rs. 3,000
(b) Trial balance will not shown difference by Rs. 3,000
(c) Both (a) and (b)
(d) None
34. When the total of trial balance is not reconciled, the account opened as this juncture is:
(a) Trading a/c
(b) Suspense a/c
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(c) Profit and loss a/c
(d) None of these
35. A purchase of computer was debited to Office Expenditure Account: This is an error of:
(a) Commission
(b) Omission
(c) Principle
(d) Compensatory error
36. Sales for RS. 5,000 was entered as purchase. The effect of this error will be:
(a) G.P. will increase by Rs. 5,000
(b) G.P. will decrease by Rs. 5,000
(c) G.P. will decrease by Rs. 10,000
(d) G.P. will increase by Rs.10,000
37. A cloth merchant purchased furniture and recorded in purchase day book. It is error of
(a) Omission
(b) Principle
(c) Compensation
(d) Commission
38. If one of the cars purchased by a car dealer is used for business purpose and has been debited to goods for
resale A/c , then the rectification entry will be:
(a) Debit drawing a/c and credit purchase a/c
(b) Debit office expenses a/c and credit motor car a/c
(c) Debit motor car a/c and credit purchase a/c
(d) Debit motor car a/c and credit sales a/c
Success coaching centre
Sec-4 & sec-14
Ph.9782016302, 7737296162, 9672269750