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1451.

Howare the followingitems dealt in Accounting Equation ? (i) Interest duebut notreceived ₹500. (ii)Rentreceivedin a dvance ₹1,000 (iii)Isurance premium paidin advance ₹1,500.(iv) Salaries due tonot paid ₹2,000.

Answer»

SOLUTION :(i) Interest duebutnot recived shall be added to assest on ONE side and tothe capital on other side.
(ii)It willincreasecashonthe assetsside and increase the liabilities.
(iii) It will decrease one assets ( cash) and increase another assets (Prepaid insurance).
(IV) Salary beingan expense will be deducted fromthe capitaland beingunpaid will be added to liabilities.
Discussion
1452.

How are Prepaid Expanses shown in the Final Accounts ?

Answer»

Solution :Prepaid Expenses are deducted from the relvevant expense and shown in the TRADING Account or PROFIT and Loss Account . They are also shown in the BALANCE Sheet on the assets SIDE under the main head Current assets.
Discussion
1453.

How are Outstanding Expenses shown in the Final Accounts?

Answer»

Solution :Outstanding Expanses are added to the relevant EXPENSE and shown either in the Trading Account or the Profit and Loss Account. They ALSO shown in the BALANCE SHEET on the Liabilities side under the main head Current Liabilities.
Discussion
1454.

How an Accounting Voucher is prepared?

Answer»

SOLUTION :Accounting VOUCHER is prepared on the basis of source voucher after ANALYSING and determining ACCOUNTS to be DEBITED and credited.
Discussion
1455.

Harshad commenced business with capital of ₹ 1,50,000. At the end of the year his assets were ₹2,50,000 and creditors were ₹25,000. His closing capital and profit/loss for the year will be

Answer»

₹ 2,75,000 and ₹ 75,000
₹ 2,25,000 and ₹ 75,000
₹ 2,75,000 and ₹50,000
₹ 2,75,000 and ₹ 1,25,000

Answer :B
Discussion
1456.

Harisharna had started a new mid sized business .He being new to accounting sought advice from a chartered accountatnt on manntenance of accounts.He was advised that he should follow Double Entrysystem of acconting maintaining acconts on accrual basis .Some of his friends advised him to maintain accounts on cash basis of accounting.HGe decided to follow the advice of the chartered accountatnt you have to appraise judge and justify whether the decision of shri hariharn is correct

Answer»

Solution :The decision of HARIHARAN to maintain accounts on double entry system of accounting FOLLOWING accrual concept is CORRECT because when account are maintaine on accrual based double entry system of accounting , coorect income expenditure, liabiliteis and assets are shown in the financial statements. Itis IMPORTANT to know the correct income, expenditrue, liabliiteis and assets as it enables the businessman to plan his finances .Had he followed cahs basis of accounting the business would not have shown correct financial performance and financial position as credit transactions would not have been recorded
Discussion
1457.

Hari, who keeps his books on Single Entry System, tells you that his capital on 31st March, 2019 is Rs. 1,87,000 and his capital on 1st April, 2018 was Rs. 1,92,000. He futher informs you that during the year, he withdrew for his household purposes Rs. 84,200. He once sold his investment of Rs. 20,000 at 2% premium and brought that money into the business. You are required to prepare a Statement of Profit of Loss.

Answer»

SOLUTION :
Discussion
1458.

Hari maintains his books of account on Single Entry System. His books provide the following information: |{:(,,"1st April, 2018 (Rs.)","31 March, 2019 (Rs.)"),("Furniture",.......................................................,"2,000","2,000"),("Stock",.......................................................,"28,000","30,500"),("Sundry Debtors",.......................................................,"21,000","34,000"),("Cash",.......................................................,"1,500","2,00"),("Sundry creditors",.......................................................,"17,500","19000"),("Bills Receivable",.......................................................,"...","5,000"),("Loan",.......................................................,"...","5,000"),("Investments",.......................................................,"...","10,000"):}| His drawing during the year were Rs. 5,000. Depreciate furniture by 10% and provide a reserve for Bad and Doubtful Debts at 10% on Sundry Debtors. Prepare the statement showing the profits for the year.

Answer»


ANSWER :PROFIT during the YEAR - RS. 23,900.
Discussion
1459.

Hardware and software are essential for computers, wheraas humanware is not .

Answer»


SOLUTION : FALSE
Discussion
1460.

Gurpreet purchased 1,000 sq . Yards land to build a factory and pain Rs. 15 lakhs towards its cost including registration charges . At the end of the financial year , the value of the land came down to Rs.13 lakhs . Gurpreet recorded the land at Rs. 13 lakhsand booked a loss of Rs. 2 lakhs . Is he correct in treating the fall in value as a loss ?

Answer»

SOLUTION :No, Gurpreet is not correct because he has purchased a fixed ASSET by paying Rs.15 lakhs.The cost Concept of ACCOUNTING holds that an asset should be recorded in the BOOKS ATTHE price paid.
Discussion
1461.

GST pain on purchase of assets to be used in business is allowed as ________ Credit.

Answer»


SOLUTION :INPUT
Discussion
1462.

GST paid(Input GST) can be set off against GST Collecte (Output GST). It is not a cost but an asset.

Answer»


SOLUTION : TRUE
Discussion
1463.

GST paid by the purchaser of Goods and /or Services is ________ GST

Answer»


SOLUTION :INPUT
Discussion
1464.

GST is not levied on Salaries and Wages .

Answer»


SOLUTION : TRUE
Discussion
1465.

GST is charged by a ___________ tax payer.

Answer»


SOLUTION :REGISTERED
Discussion
1466.

GST collected is a __________

Answer»


SOLUTION :LIABILITY
Discussion
1467.

GST is an _______ tax.

Answer»


SOLUTION :INDIRECT
Discussion
1468.

GST Collected by the seller of Goods and / or Servicesis ________ GST

Answer»


SOLUTION :OUTPUT
Discussion
1469.

GSC Co. purchased goods from Mohan & Co. for Rs. 50,000 plus CGST and SGST@ 6% each . As per the terms, if GSC Co. made full payment to Mohan & Co. within 15 days it will get Cash Discount of 2% GSC Co. paid Rs. 28,000 within thestipulated time. Determine the amount of CashDiscount that GSC Co. will get.

Answer»

SOLUTION :GSC Co. will not get any CASH Discount because it has not paid total amount due. ITWAS entitled to `2%` Cash Discount, if it had paid the amount due in full.
Discussion
1470.

Gross profit is total revenue

Answer»


ANSWER :T
Discussion
1471.

Gopi Chand maintains his books of account on Single Entry System. Calculate his profit on 31st March, 2019 from the following information: {:("Liabilities and Assets","1st April, 2018 (Rs.)","31st March, 2019 (Rs.)"),("Cash in Hand","1,500","500"),("Bank Balance","4,500","3,500"),("Fumiture","2,000","2,000"),("Stock","1,000","3,000"),("Creditors","4,000","3,000"),("Debtors","3,000","4,000"):} During the year his drawings were Rs. 1,000 and additional capital invested Rs. 2,000.

Answer»

SOLUTION :
Discussion
1472.

Government is the internal user of accounting information.

Answer»


SOLUTION :FALSE
Discussion
1473.

Goodwill is a tangible Asset.

Answer»


SOLUTION : FALSE
Discussion
1474.

Goodwill is a/an

Answer»

TANGIBLE ASSET
INTANGIBLE Asset
Current Asset
Fictitious Asset

Solution :Intangible Asset
Discussion
1475.

Goodwill is a

Answer»

FICTITIOUS ASSET
Tangible Asset
INTANGIBLE Asset
Expense

Solution :Intangible Asset
Discussion
1476.

Goodwill account is a Real Account.

Answer»


SOLUTION :TRUE
Discussion
1477.

Goods withdrawn by the proprietor for his own use not been reocrded in the books of account.Which acccounting principle has not been followed?

Answer»

SOLUTION :BUSINESS ENTITY PRINCIPAL
Discussion
1478.

Goodwill account is a

Answer»

PERSONAL ACCOUNT
REAL Account
NOMINAL Account
NONE of these

Solution :Real Account
Discussion
1479.

Goods withdrawn by the proprietor for his personal use has not been recorded in the books of accounts. Which accounting concept has been involved?

Answer»

SOLUTION :BUSINESS ENTITY CONCEPT.
Discussion
1480.

Goods were sold to Jogi for Rs. 4,000 and to Yogi for Rs. 3,000. The transactions were recorded properly in the Sales Book, but Rs. 3,000 was posted to Jogi, while Rs. 4,000 was posted to Yogi. Identify the type of error.

Answer»

SOLUTION :COMPENSATING ERROR.
Discussion
1481.

Goods taken by the proprieter for presonal use is

Answer»

Sale
DRAWINGS
Purchase
None of these

Solution :Drawings
Discussion
1482.

Goods taken by the owner for personal use is debited to capital account.

Answer»


SOLUTION : FALSE
Discussion
1483.

Goods taken by proprietor for personal use is debited to Drawings account that includes

Answer»

PURCHASE Cost of the goods
Purchase Cost of the goods PLUS GST PAID.
As per the firm's DECISION
None of these.

Solution :Purchase Cost of the goods
Discussion
1484.

Goods taken away by the proprietor from business for his personal use will be recorded in :

Answer»

PURCHASES BOOK
SALES Book
Purchases RETURN Book
Journal Proper

Answer :D
Discussion
1485.

Goods of Rs. 500 given as charity should be credited to

Answer»

CHARITY ACCOUNT.
Sales Account.
PURCHASES Account.
None of these.

Solution :Purchases Account.
Discussion
1486.

Goods sold for Cash Rs. 25,000 plus 12% IGST. Sales A/c will be credited by : Rs. 22,000

Answer»

RS. 22,000
Rs. 25,000
Rs. 28,000
Noneof these

Answer :B
Discussion
1487.

Goods of Rs. 1,000 taken by the proprietor for personal use should be credited to

Answer»

SALES ACCOUNT
PROPRIETOR's Personal EXPENSES Account
PURCHASES Account
Drawing Account

Solution :Purchases Account
Discussion
1488.

Goods' means physical item of trade.

Answer»


SOLUTION : TRUE
Discussion
1489.

Goods given as sample is debited to

Answer»

STAFF WELFARE Expanses
SALES Promotion Expenses.
Gereral Expenses.
NONE of these.

SOLUTION :Sales Promotion Expenses
Discussion
1490.

Goods means :

Answer»

Commodity to be BOUGHT and SOLD
Commodity to be bought but not to be sold
Commodity to be used and an asset
All of the above

ANSWER :A
Discussion
1491.

Good Manufacturers Ltd. Purchased on 1st October, 2016 a machinery costing Rs 25,000. A sum of Rs 1,000 was spent upon its installation. Depreciation is charged "@ "10% p.a. on the Diminishing Balance Method. The company colses its books every on 31st March (Ignore GST). What will be the amount of Depreciation for the year ended 31st March 2017, 31st March 2018 and 31st March, 2019?

Answer»


Solution :Depreciation for the year ENDED 31ST March, 2017 `=("RS 25,000+ Rs 1,000")xx10//100xx6//"12 = Rs 1,300."]`
Discussion
1492.

Goods distributed to employees free of cost id debited to

Answer»

STAFF Welfare Expanses
Sales PROMOTION Expenses.
Gereral Expenses.
None of these.

Solution :Staff Welfare Expanses
Discussion
1493.

Goodscosting ₹10,000 havebeensoldfor cashat 25%profit . How willthe transacitonbe shownin the AccountingEquation?

Answer»

SOLUTION :INCREASE CAH by ₹12,500, DECREASE STOCK ₹10,000, and Increasecapitalby ₹2,500.
Discussion
1494.

Goodscosting ₹10,000 havebeensoldfor cashat 25%profit . How willthe transacitonbe shownin the AccountingEquation?

Answer»

SOLUTION :INCREASE CAH by ₹12,500, DECREASE STOCK ₹10,000, and Increasecapitalby ₹2,500.
Discussion
1495.

Goods destroyed by fire is credited to

Answer»

TRADING ACCOUNT.
Goods LOST by FIRE Account.
Sales Account.
None of these.

Solution :Trading Account.
Discussion
1496.

Goning Concern is a _________ accounting assumption.

Answer»


SOLUTION :FUNDAMENTAL
Discussion
1497.

Godrej Ltd. Imported from Germany one machinery for sale in India andanother machinery for production purpose. Will you treat them goods or fixed assets?

Answer»

SOLUTION :First machinery will be treated as goods, and SECOND machinery will be treated as FIXED ASSET.
Discussion
1498.

Goning Concept assumes that business will be carried on for ________ period.

Answer»


SOLUTION :INDEFINITE
Discussion
1499.

Godrej Ltd. Imported from Germany one machinery for sale in India and another machinery for production purpose. Will you treat them goods or fixed assets ?

Answer»

Solution :MACHINERY imported for sale in INDIA will be treated as GOODS. Machinery purchased for production will be treated as FIXED ASSET.
Discussion
1500.

Given two points regarding nature of accounting standards.

Answer»

Solution :(i) They LAY down the NORMS of accounting policies to DIRECT as to how the transactions should be recorded.
(II) They remove the effect of DIVERSE accounting policies.
Discussion