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1051.

Owner's Capital in beginning was ₹ 45,000. Creditors at the end were ₹ 30,000. Revenue during the period was ₹ 65,000. Expenses during the period were ₹ 40,000. Total equity at the year end will be

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₹ 1,00,000
₹ 1,20,000
₹ 80,000
None of these.

Answer :A
Discussion
1052.

Overdraft as per the passbook is less than the overdraft as per cash book when there are cheques deposited but not collected by the banker.

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SOLUTION :F
Discussion
1053.

Owner's Equity is

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BALANCE of CAPITAL A/c
Balance of Creditors A/c
Balance of CASH A/c.
Balance Drawings A/c.

Solution :Balance of Capital A/c
Discussion
1054.

Outstanding expenses are shown on Assets side of Balance Sheet.

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SOLUTION : FALSE
Discussion
1055.

Outstanding Salaries is shown as

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an asset in the BALANCE Sheet
a LIABILITY in the Balance Sheet
adjusted in PROFIT and Loss Account
Both B and c

Solution :Both b and c
Discussion
1056.

Outstanding salary is a

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REAL ACCOUNT
PERSONAL Account
NOMINAL Account
NONE of these

Solution :Personal Account
Discussion
1057.

Outstanding Expenses' are classified as

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LIABILITY ACCOUNT
Asset Account.
Revenue Account
Capital Account.

SOLUTION :Liability Account
Discussion
1058.

Out of the following which is a trade discount and which is a cash discount? (a) Anil has purchased1, 000 pieces of Add Roller Pen and therefore entitled to discount of Rs. 15,000. (b) Anil has paid the amount due towards the above purchase within 7 days and therefore, entitled to discount @ 2% .

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SOLUTION :(a) TRADE DISCOUNT; (B) CASH Discount
Discussion
1059.

Out of the following, which is the objective of GST?

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Developing Common National MARKET by having One Indirect Tax .
EASE of Doing Business.
Simplifying COMPLIANCE of Indirect TAXES.
All of the above.

Solution :All of the above.
Discussion
1060.

Out of the following which is the branch of Accounting ?

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FINANCIAL Accounting
Cost Accounting
Management Accounting
All of these

Solution :All of these
Discussion
1061.

Out of the following assets which one is NOT an intangible asset ?

Answer»

PATENTS
INVESTMENTS
Goodwill
Trademark

Answer :B
Discussion
1062.

Oustanding income is

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an ASSET
a liability
an expense
All of these.

SOLUTION :an asset
Discussion
1063.

Out of the following assets, which one is not an intangible asset ?

Answer»

MACHINERY
Patents
Goodwill
Trade Mark

Solution :Machinery
Discussion
1064.

Operating Profit earned by Heer Mehta in 2005 - 06 was Rs 8,50,000. Its non-operating incomes were Rs 75,000 and non-operating expenses were Rs 1,87,500. Calculate Profit earned during the year.

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SOLUTION :NET Profit = OPERATING Profit + NON - operating Incomes - Non - operating Expenses
`= Rs 8,50,000 + Rs 75,000 - Rs 1,87,500 = Rs 7,37,500`
Discussion
1065.

Opening stock Rs. 40,000, puchase Rs. 3,60,600, closing stock Rs. 1,30,000 sales Rs. 3,80,000, carriage inward Rs. 6,000, Freight inward Rs. 4,000, Wages and salaries Rs. 50,000, Return inwards Rs. 20,000, Return outward Rs. 40,000. The market value of closing stock was Rs. 1,20,000. Gross Profit of the year is

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RS. 60,000
Rs. 70,000
Rs. 90,000
NONE of these.

Answer :A
Discussion
1066.

Opening Stock Rs 30,000, Purchases Rs 54,6000, Expenses on Purchases Rs 6,000, Sales Rs 90,000, Expenses on Sales Rs 3,000, Closing Stock Rs 36,600. Calculate Cost of Goods Sold and Gross Profit

Answer»

Solution :Cost of Good Sold = Opening Stock + Purchases + Expenses on Purchases - Closing Stock
`= Rs 30,000 + Rs 54,600 + Rs 6,000 - Rs 36,600 = Rs 54,000`.
Gross Profit = NET SALES - Cost of Goods Sold
`= Rs 90,000 - Rs 54,000 = Rs 36,000`
Note: Expenses on Sales being indirect expenses are not CONSIDERED while computing Cost of Goods Sold
Discussion
1067.

Opening Stock Rs 15,000, Sales Rs 48,000, Carriage Inwards Rs 3,000, Sales Return Rs 3,000, Gross Profit Rs 18,000, Pruchases Rs 30,000, Purchases Return Rs 2,700. Calculate Closing Stock and Cost of Goods Sold

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SOLUTION :Net Sales = Sales - Sales Return `= Rs 48,000 - Rs 3,000 = Rs 45,000`
Cost of Goods SOLD = Net Sales - GROSS Profit `= Rs 45,000 - Rs 18,000 = Rs 27,000`
Cost of Goods Sold = OPENING Stock + Purchaes - Purchases Return + Carriage INWARDS - Closing Stock
`Rs 27,000 = Rs 15,000 + Rs 30,000 - Rs 2,700 + Rs 3,000 -` Closing Stock
Closing Stock `= Rs 45,300 - Rs 27,000 = Rs 18,300`
Discussion
1068.

Opening Stock Rs. 1,00,000, Sales Rs. 5,00,000, Gross Profit @25% on sale, Purchase Rs. 5,00,000. Closing stock is

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RS. 1,25,000
Rs. 2,25,000
Rs. 3,00,000
Rs. 3,25,000

Answer :B
Discussion
1069.

Opening Stock Rs. 1,00,000, Sales Rs. 5,00,000, Gross profit @25% on cost, Purchases Rs. 6,00,000. Closing Stock is

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RS. 1,25,000
Rs. 3,00,000
Rs. 8,00,000
Rs. 3,25,000

Answer :B
Discussion
1070.

Opening Stock is shown in

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the DEBIT side of TRADING account.
the credit side of Trading Account.
the BALANCE sheet.
NONE of these.

Solution :the debit side of trading account
Discussion
1071.

Opening Stock appears in a Trial Balance.

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SOLUTION : TRUE
Discussion
1072.

Opening Capital is Rs 1,50,000, Closing Capital Rs 2,75,000, Drawings Rs 25,000, Further Capital introduced Rs 45,000. What is Gross Profit ?

Answer»

RS 55,000
Rs 1,95,000
Rs 1,05,000
Rs 1,75,000

Answer :C
Discussion
1073.

Opening capital is ascertained by preparing:

Answer»

TOTAL DEBTORS account
Total CREDITORS account
Cash account
Opening STATEMENTS of affairs.

Solution :d
Discussion
1074.

Open a 'T' shape account of debtor 'Brij' and write the following transactions on the proper side : {:(,,,"₹") , ((i), "Sold goods tp Brij on credit",, 25","000) , ((ii) , "Cash received from Brij" ,,10","000) , (,"Discount allowed to him" ,, 500) , ((iii) , "Goods returned by Brij" ,, 5","000):}

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ANSWER :Debit SIDE (i) ; CREDIT (ii) and (III) ; Balance of Brij's Account - ₹ 9,500
Discussion
1075.

Open a 'T' shape Cash Account with the following transactions : {:(,,,"₹") , ((i) , "Mohan started business with cash" ,, 40 "," 000) , ((ii) , "Purchased goods" ,, 20","000) , ((iii) , "Sold goods" ,, 24","000) , ((iv) , "Paid rent " ,, 400 ) , ((v), "Paid salaries" ,,600) , ((vi) , "Drew for personal use" ,, 1","000):}

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Answer :(i) DEBIT side , (ii) CREDIT side , (iii) Debit side ; (iv) Credit side ; (v) Credit side ; (VI) Credit side ; Balance of Cash ACCOUNT - ₹ 42, 000.
Discussion
1076.

Open a 'T' shape account of creditor , 'Rakesh' and write the following transactions on the proper side : {:(,,,"₹") , ((i), "Goods purchased from Rakesh on credit" ,, 50","000) , ((ii) , "Goods returned to Rakesh for" ,, 5","000) , ((iii) , "Paid to Rakesh" ,, 20","000) , ((iv), "Purchased goods from Rakesh on credit" ,, 10","000):}

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Answer :DEBIT SIDE : (ii) and (iii) ; Credit side : (i) and (iv) ; BALANCE of Rakesh's ACCOUNT - ₹ 35, 000.
Discussion
1077.

Open a 'T' shape account of a creditor , Mohan , and write the following transactions on the proper side : {:(,,,"₹") , (1., "Purchased goods from Mohan on credit" ,, 50","000) , (2., "Paid to Mohan" ,, 30","000) , (3., "Goods returned to Mohan" ,, 3","000), ( 4. , "Repurchased goods from Mohan on credit " ,, 10","000):}

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SOLUTION :
Discussion
1078.

Open a 'T' shape account for machinery and put the following transactions on the proper side : {:(,,,"₹") , ((i) , "Machinery purchased" ,, 40"," 000), ((ii), "Machinery sold" ,, 10 "," 000), ((iii) , "Machinery purchased",, 8","000) , ((iv) , "Machinery discarded" ,, 14 "," 000) , ((v) , "Depreciation on machinery",, 1"," 000):}

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Answer :(i) DEBIT SIDE , (II) Credit side ; (III) Debit side ; (iv) Credit side ; (V) Credit side ; Balance of Machinery Account - ₹ 23,000.
Discussion
1079.

Open a 'T' shape account for furniture and write the following transactions on the proper side {:("1. Furniture purchased50,000",|,"2. Furniture sold -costing10,000"),("3. Furniture purchased15,000","4. Old furniture discarded5,000",),("5. Depreciation of furniture3,000",,):}

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SOLUTION :
Depreciation is a PERMANENT and CONTINOUS decrease in the BOOK value of fixed assets due to use , effluxion of TIME , obsolescence , etc.
Discussion
1080.

Only those facts and events are recorded in accounting which are capable of being expresssed in terms of money.

Answer»


ANSWER :TRUE
Discussion
1081.

One intra-state (i.e., within the state) pruchase of goods, which of the following GST is levied

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CGST and IGST
CGST and SGST
SGST and IGST
None of these

Solution :CGST and SGST
Discussion
1082.

On which side will the increase in the following accounts be recorded ? Also , state the nature of the account : (i) Furniture A/c"" (ii) Mohan (Proprietor ) (iii) Furniture A/c "" (iv) Purchases A/c (v) Sales A/c "" (vi) Interest Paid A/c (vii) Sohan (Creditor ) "" (viii) Ram (Debtor)

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Answer :(i) DEBIT (Asset); (ii) Credit (Capital ) ; (iii) Debit (EXPENSES) ; (iv) Debit (Expenses) ; (v) Credit (Revenues) ; (vi) Debit (Expenses) ; (vii) Credit (LIABILITY) ; (viii) Debit (Asset).
Discussion
1083.

One intra-state (i.e., outside the state) pruchase of goods, which of the following GST is levied

Answer»

IGST
IGST and CGST
CGST and IGST
None of these

Solution :IGST
Discussion
1084.

On which side will the increase in following accounts be recorded ? Also , mention the nature of the account on the basis of Modern Classification of Accounts : (i) Buildings A/c (ii) Creditor's A/c (iii) Abhishek (Proprietor) (iv) Purchase A/c (v) Carriage Inwards A/c (vi) Cash A/c (vii) Rent Received A/c (viii) Interest Payable A/c (ix) Bills Payable A/c (x) Debtors A/c (xi) Accrued Commission A/c (xii) Bills Receivable A/c

Answer»

Solution :(i) Debit - Asset
(ii) Credit - Liability
(iii) Credit - CAPITAL
(iv) Debit - Expense
(v) Debit - Expense
(vi) Debit - Asset
(vii) Credit - REVENUE
(viii) Credit - Liability
(IX) Credit - Liability
(X) Debit - Asset
(xi) Debit - Asset
(xii) Debit - Asset
Discussion
1085.

On which side will the increasein the following accounts be recorded ? Also mention the nature of account : 1. Furniture2. Wages paid 3. Rent Received 4. Cash 5. Proprietor's Account 6. Debtor7. Prepaid Insurance 8. Outstanding Salary

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SOLUTION :1. DEBIT - Asset
2. Debit - EXPENSES
3. Credit - Income
4. Debit - Asset
5. Credit - ASSEST
6. Debit - Asset
7.Debit - Asset
8. Credit - Liability
Discussion
1086.

On which side will the decrease in the following accounts be recorded ? Also state the nature of the account : (i) Cash "" (ii) Bank Overdraft (iii) OutstandingSalary paid "" (iv) Outstanding Rent (v) Prepaid Insurance "" (vi) Mohan , Proprietor of the business

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Answer :(i) Credit (ASSET) ; (ii) DEBIT (Liability) ; (iii) Debit (Liability) ; (iv) Debit (Liability) ; (v) Credit (Asset) ; (VI) Debit (CAPITAL).
Discussion
1087.

On which side will be theincrease in the following accounts be recorded ? Also mention the nature of Account - 1. Cash 2. Machinery 3 Debtor 4.Creditor5. Proprietor's Accountbr6. Rent Received7. Salary Paid 8. Interest Received

Answer»

Solution :(Nature of Account)
1. Debit - Asset
2. Debit - Asset
3. Debit -Asset
4. Credit - LIABILITY
5. Credit - Capital
6. Credit - Income
7. Debit - Expenses
8. Credit - Income
Discussion
1088.

On which side the decrease in the following accounts will be recorded? Also mention the nature of account : - 1. Cash 2. Bank Overdraft 3. Rent Paid 4. Outstanding Rent 5. Prepaid Insurance6. Manoj, Proprietor of the business

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Solution :1. CREDIT - ASSET
2. Debit - Liability
3. Credit - Expenses
4. Debit - Liability
5. Credit - Asset
6. Debit - CAPITAL
Discussion
1089.

On which side the decrease in the following accounts be recorded? Also mention the nature of Account : -1. Furniture 2. Bank 3. Proprietor's Account 4. Salary Paid 5. Salary Outstanding 6. Subhash - a Customer

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Solution :(NATURE of Account)
1. Credit - Asset
2. Credit - Asset
3. DEBIT - CAPITAL A/c
4. Credit - EXPENSES
5. Debit - LIABILITY
6. Credit - Asset
Discussion
1090.

On which side of the Balance Sheet are Prepaid Expenses shown?

Answer»

SOLUTION :ASSETS SIDE
Discussion
1091.

On the basis of the narrations, fill in the missing values:

Answer»

SOLUTION :

Discussion
1092.

On Jan. 15,2017 Sachin sold goods rs 30,000 to Narain and drew upon the later a bill for the same amount payable after 3 months. The bill was accepted by Narain. The bill was discounted by Sachin from his bank for Rs 29,250 on Jan. 31,2017 on maturity the bill was dishonoured. He further agreed to pay Rs 10,500 in cash including Rs 500 interest and accept a new bill for two months for the remaining Rs 20,000. The new bill wasa endorsed by sachin in facour of this creditor Kapil for setting a debt of Rs 20,800. The new bill was duly met by Narain on maturity. Record the necessary journal entries in the books of Sachin and Narain.

Answer»

SOLUTION :
Discussion
1093.

On purchase of old furniture, the amount of Rs. 1,000 spent on its repairs should be debited to

Answer»

REPAIRS ACCOUNT.
SALES Account.
Cash Account.
None of these.

Solution :Sales Account.
Discussion
1094.

On intra-state(i.e., within the state) purchase of goods, which of the following GST is levied:

Answer»

CGST.
SGST.
CGST and SGST.
SGST and IGST.

Solution :CGST and SGST.
Discussion
1095.

On intra-state purchase of goods, which of the following accounts are debited:

Answer»

INPUT IGST ACCOUNT.
Input CGST Account and Input SGST Account.
Input IGST Account and Input CGST Account.
Input IGST Account and Input SGST Account.

Solution :Input CGST Account and Input SGST Account.
Discussion
1096.

On inter-state sale of goods, which of the following account is credited:

Answer»

OUTPUT CGST A/c.
Output IGST A/c.
Input IGST A/c.
Output SGST A/c.

Solution :Output IGST A/c.
Discussion
1097.

On inter-state (i.e., outside the state) purchase of goods, which of the following GST is levied:

Answer»

IGST.
IGST and CGST.
CGST.
SGST .

SOLUTION :IGST.
Discussion
1098.

On 31st March, 2019, the total assets and external liabilities were₹2,00,000 and₹6,000 respectively. During the year, the proprietor had introduced capital of₹20,000 and withdrawn₹12,000 for personal use. He made a·profit of₹20,000 during the year. Calculate the capital as on 1st April, 2018.

Answer»


ANSWER :Opeinig CAPITAL ₹ 1,66,000
Discussion
1099.

On31st March , 2019, the total assets and externalliabilities were ₹ 1,00,000 and ₹3,000 respectively .Duringthe years,the proprietor handintroducedadditional capital of ₹10,000 and had withdrawn ₹6,000 for pesonaluse. He made a profit of ₹10,000during the year. Calculate thecapital as on1st April, 2018.

Answer»

Solution :Closingcapital = CLOSING ASSETS - Closing Liailities(i.e., y's LOAN)
= ₹ 1,00,000 - ₹3,000 = ₹97,000.
Opening CAPITAL =Closing Capital +DRAWINGS -Additional Capital -Profits
= ₹ 97,000 + ₹6,000 - ₹ 10,000 - ₹ 10,000 = ₹ 83,000
Discussion
1100.

On 31st March, 2019, the total assets and external liabilities were₹2,00,000 and₹6,000 respectively. During the year, the proprietor had introduced capital of₹20,000 and withdrawn₹12,000 for personal use. He made a·profit of₹20,000 during the year. Calculate the capital as on 1st April, 2018.

Answer»


ANSWER :Opeinig CAPITAL ₹ 1,66,000
Discussion