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1951.

Complete the following sentences, choosing one of thestatements given in each case: (ix)On inter-state sale of goods, GST charged is

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CGST
IGST.
SGST
Any of these.

Solution :IGST.
Discussion
1952.

Complete the following sentences, choosing one of thestatements given in each case: (i) In the Purchases Book the record is in respect of

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CASH PURCHASES of GOODS DEALT in.
CREDIT purchases of goods dealt in.
all purchases of goods dealt in.
None of these.

Solution :credit purchases of goods dealt in.
Discussion
1953.

Complete the following sentences, choosing one of thestatements given in each case: (ii)The Sales Return Book records

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the RETURN of GOODS purchased
the return of goods SOLD
the return of ANYTHING sold.
None of these.

Solution :the return of goods sold
Discussion
1954.

Complete the following Accounting Equation by filling the missing amounts:

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ANSWER :`(##TSG_ACC_XI_C05_E01_071_A01##)`
Discussion
1955.

Completethe followingAccounting Equationbyfillingthe missing amounts:

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SOLUTION :
Discussion
1956.

Complete the following Accounting Equation by filling the missing amounts:

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ANSWER :`(##TGS_ACC_XI_C05_E01_071_A01##)`
Discussion
1957.

Complete the following Accounting Equationby fillingthe missing amount

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ANSWER :`(##TSG_ACC_XI_C05_E01_070_A01##)`
Discussion
1958.

Completethe followingAccounting Equationbyfillingthe missing amounts:

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SOLUTION :
Discussion
1959.

Complete the following Accounting Equationby fillingthe missing amount

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ANSWER :`(##TGS_ACC_XI_C05_E01_070_A01##)`
Discussion
1960.

Compensating error is disclosed by the Trial Balance.

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SOLUTION :FALSE
Discussion
1961.

Compensating errors are

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combination of more than ONE errors
errors committed in one TRANSACTION.
errors committed by applying incorrect ACCOUNTING principles.
NONE of the above.

Solution :combination of more than one errors
Discussion
1962.

Compensating error are of a _______ nature.

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SOLUTION :NEUTRALISING
Discussion
1963.

Collected from debtors 35,000. The account to be credited is ............

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SOLUTION :DEBTOR
Discussion
1964.

Closing Stock will never appear in the Trial Balance. Say Yes or No with reasons

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SOLUTION :CLOSING Stock may appear in the Trial Balance if an adjustment ENTRY RELATING to Closing Stock is already passed. If the Closing Stock APPEARS in the Trial Balance it will be shown only on the assets side of the Balance Sheet.
Discussion
1965.

Closing stock shown inside the Trial Balance is shown in

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TRADING Account
Profit and LOSS Account
BALANCE SHEET
None of these

Solution :Balance Sheet
Discussion
1966.

Closing stock is valued at lower of cost or realisable value'. Which principle of Accounting is applied here?

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SOLUTION :CONVENTION of PRUDENCE or CONSERVATION.
Discussion
1967.

Closing Stock is valued at lower of cost or market price '. Which concept of Accounting is applied here?

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SOLUTION :PRUDENCE CONCEPT.
Discussion
1968.

Closing stock is included in Trading Account and on the assets side of the Balance Sheet.

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SOLUTION : TRUE
Discussion
1969.

Closing Stock is usually given as an additional information or adjustment outside the Trial Balance.

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SOLUTION : TRUE
Discussion
1970.

Closing stock in valued at Cost or Net Realisable value (Market Value) , whichever is less because of

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GOING concern CONCEPT
ACCRUAL Concept
Prudece concept
Consistenct concept

Solution :NA
Discussion
1971.

Closing stock in valued at

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COST
Market value
Net REALISABLE value
At Cost or net Realisable value, whichever is less.

Solution :NA
Discussion
1972.

Closing Stock if it appears in the Trial Balance , it is taken to Trading Account.

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SOLUTION : FALSE
Discussion
1973.

Closing Stock in the Trial Balance is transferred to _______

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SOLUTION :BALANCE SHEET
Discussion
1974.

Closing Stock, if given outside the Trial Balance is shown in

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Trading Account and BALANCE sheet.
Profit and LOSS account.
Profit and loss account and balance sheet.
Balance sheet

Solution :NA
Discussion
1975.

Closing stock appearing in the Trial Balance is shown in the Trading acconts only Is it correct ?

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SOLUTION :No it is SHOWN in the BALANCE SHEET
Discussion
1976.

Closing Stock given an adjustment is shown in

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TRADING Account
Balance Sheet
Profit and LOSS Account
Both (a) and (B)

SOLUTION :Both (a) and (b)
Discussion
1977.

Closing Stock appearing in the Trial Balance is shown in

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Trading ACCOUNT
BALANCE SHEET
Profit and Loss Account
Both (a) and (B)

Solution :Balance Sheet
Discussion
1978.

Closing entries are used for closing of accounts relating to expenses and revenues.

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SOLUTION : TRUE
Discussion
1979.

Closing balance of creditors is determined by preparing

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TOTAL Debtors Account.
Total CREDITORS Account.
Bills RECEIVABLE Account.
Bills PAYABLE Account.

Solution :Total Creditors Account.
Discussion
1980.

Closing entries are passed at the __________ of the accounting period.

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SOLUTION :END
Discussion
1981.

Closing entries are recorded in

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CASH BOOK
Ledger
JOURNAL PROPER
BALANCE Sheet

Solution :Journal Proper
Discussion
1982.

Classify the following into three types of personal account:- {:(I.,"Capital Account"),(II.,"Tata Steel Company"),(III.,"Debtors Accounts"),(IV.,"OutstandingExpenses Account"),(V.,"Bank Account"),(VI.,"Haryana Education Board"),(VII.,"Shri Ram College of Commerce"):}

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SOLUTION :`{:("Natural PERSONAL ACCOUNTS",I","III"."),("Artificial Personal Accounts",II","V","VI","VII"."),("Representative Personal Accounts",IV"."):}`
Discussion
1983.

ClassifythefollowingintoCapital, Revenue andDeferred Revenueexpenditure,statingreasonsin eachcase : (a) Asum of₹ 32,000 has been spent on machine as follows :(i) ₹ 20,000 out of addition to doublethe output,(ii) ₹ 5,000forrepairs necessitated bynegligence and(iii) ₹ 7,000 for replacementof worn - outparts. (b)Totalexpenditureonacinemabuildingduringthe year was₹ 2,00,000 out ofwhich20 % related to repairs and80 % represented improvementsandadditions. (c ) Compensation paidto aretrenched employee forthe loss of employment. (d) Second- handfurniture worth₹40,000 was puchased andrepairingofthisfurniturecost₹ 15,000. Thefurniture was installedbyownworkmen - wages forthis beins₹ 5,000. (e)A personwasinjured bythe motorcar ofthecompany . ₹ 10,000 was paidtohim by wayofcompensation. (f)Advirtisment expenditurein special advertisment drive.

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Solution :(a)₹ 20,000 isCapital EXP.And₹ 12,000 isRevenue exp.
(b) ₹ 40,000 isRevenueexp. And ₹ 1,60,000 isCapitalexp.
(c) Revenueexp.(d)Capitalexp.(E) Revenueexp.And(F) Deferred Revenueexp.
Discussion
1984.

Classify thefollowing into Capital, Revenueand Deferred Revenue expenditure, statingreasons in eachcase : (i) ₹ 50,000 paidfortheinstallation of a new machine. (2) Payment of annualtaxes ₹ 20,000 andannualinsurance premium of ₹10,000. (3) Wages paidto workers forconvertingraw materialintofinishedgoods.(4) A sumof₹ 40,000wasspent in overhauling itsentire plantwhichresultedinaddingfive years to its workinglife.(5) ₹ 10 Lac spentontheconstructionof railway sidings.

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Solution :(1) COST of installingthe mahcine is a Capital Expenditure becuase it is spend before the asset is readyto use .
(2) Annual taxes andinsurance premium are RevenceExpenditure because their benfite will beexhausetedwithinthe years.
(3)It is Revenue Expenditure since it is incurred in theordinary COURSE of business.
(4) It iscapitalexpenditure sinceit has resulted in INCREASE of theworkimglife of theasset.
(5) It is capital expenditure since an asset is CREATED whcih will beused for a number of years.
Discussion
1985.

Classify the following into (i) Assets(ii) Liabilities(iii) Expenses and(iv) Revenues Sales, Bank balance, Debtors, Bank Overdraft, Creditors , Salary to manager, Discount to debtors, Cost of goods sold

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SOLUTION :(i) Assets : BANK balance, Debtors
(II) Liabilities : Bank OVERDRAFT, creditors
(iii) EXPENSES : Salary to Manager, Discount to debtors, cost of goods sold.
(iv) Revenues : Sales.
Discussion
1986.

Classify the following into Assets , Liabilities , Capital , Expenses and Revenue : (i) Land , (ii) Investments , (iii)Building , (iv) Interest Received , (v) Salary , (vi) Bank Overdraft , (vii) Debtors , (viii) Creditors , (ix) Bad debts , (x) Capital , (xi) Depreciation , (xii) Motor Vehicles , (xiii) Freight , (xiv) Wages , (xv) Goodwill , (xvi) Repairs .

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ANSWER :Assets- (i) ; (II) ; (iii) ; (vii) ; (xii) , (xv) ; LIABILITIES - (vi) , (viii) ; Capital- (x) ; Expenses - (v) ; (IX) ; (xi); (xiii) ; (xiv) ; (xvi) , Revenue - (iv).
Discussion
1987.

Classify the following into Assets , Liabilities , Capital , Revenue and Expenses : (i) Plant and Machinery , (ii) Bank Loan , (iii) Sales , (iv) Rent , (v) Discount Received , (vi) Carriage Inwards , (vii) Carriage Outwards , (viii) Purchases , (ix) Bills Payable , (x) Wages , (xi) Advance Income , (xii) Accrued Income , (xiii) Goodwill , (xiv) Furniture and Fixtures , (xv) Outstanding Expenses , (xvi) Capital .

Answer»


Answer :Assets- (i) , (xii) , (xiii) , (xiv) ; Liabilities- (ii) , (ix) , (XI) , (xv) ; CAPITAL - (xvi) ; REVENUE- (iii) , (v) ; Expenses- (iv) , (vi) , (vii) , (VIII) , (X).
Discussion
1988.

Classify the following accounts under personal, real or nominal accounts : {:((i),"Commission Paid",,(ii),"Commission Received"),((iii),"Commission Accrued",,(iv),"Prepaid Salaries"),((v),"Leasehold Property A/c",,(vi),"Discount Allowed"),((vii),"Carriage Inwards A/c",,(viii),"Life Insurance Corporation of India"),((ix),"Drawings A/c",,(x),"Rent Received in Advance"),((x i),"Debtors",,(x ii),"Sales A/c"),((x iii),"Rent Paid in Advance",,(x iv),"Bank Overdraft"):}

Answer»

SOLUTION :`{:("Personal Accounts",:,(iii)","(iv)","(vii)","(ix)","(X)","(x i)","(x II)","(x iv)),("REAL Accounts",:,(v)),("Nominal Accounts",:,(i)","(ii)","(vi)","(vii)","(x ii)):}`
Discussion
1989.

Classify the following as capital expenditure, revenue expenditure and deferred revenue expenditure for a cloth merchant: (i) Preliminary Expenses, (ii) Purchase of Furniture, (iii) Payment of Salary, (iv) Expenses paid for Construction of Building

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SOLUTION :(i) Deferred Revenue Expenditure, (II) Capital Expenditure,
(III) Revenue Expenditure, (IV) Capital Expenditure
Discussion
1990.

Classify the following accounts into Personal , Real and Nominal Accounts : (i) Cash (ii) Bank (iii) Outstanding Salaries (iv) Sales (v) Accrued Interest (vi) Leasehold Property (vii) Drawings (viii) Discount Received (ix) Bad Debts Written off (x) Purchases (xi) Bad Debts Recovered (xii) Plant and Machinery (xiii) Capital (xiv) Interest (Paid) (xv) Bank Overdraft (xvi) Prepaid Rent (xvii) Carriage Inwards (xviii) Goodwill

Answer»

Solution :
Each transaction involves TWO or more accounts . After ascertaining the accounts involved , it is DECIDED which ACCOUNT is to be DEBITED and which account is to be credited .
Discussion
1991.

Classify the following accounts into Personal, Real or Nominal accounts:- {:(I.,"Machinery",,VII.,"Drawings"),(II.,"Capital",,VII.,"Salary"),(III.,"Stock",,IX.,"Outstanding Salary"),(IV.,"Bad Debts",,X.,"Insurance"),(V.,"Goodwill",,XI.,"Prepaid Insurance"),(VI.,"Sales",,XII.,"Interest Received"):}

Answer»

Solution :`{:("Personal ACCOUNTS",II","VII","IX","XI"."),("Real Accounts",I","III","V),("Nominal Accounts",VI","VI","VII","X","XII"."):}`
Discussion
1992.

Choose the correct chronological order of ascertainment of the following profits fromthe profit and loss account :

Answer»

OPERATING PROFIT, NET Profit, GROSS Profit
Operating Profit, Gross Profit, Net Profit
Gross Profit, Operating Profit, Net Profit
Gross Profit, Net Profit, Operating Profit
Discussion
1993.

Cheques deposited by not yet cleared are ______ when Bank Reconciliation Statement is prepared starting with debit bank balance as per Cash Book .

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SOLUTION :DEDUCTED
Discussion
1994.

Cheques issued but not presented for payment will reduce the balance as per the passbook

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SOLUTION :F
Discussion
1995.

Cheque received but not deposited into Bank on the same day is debited to Cheques -in- Hand Account.

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SOLUTION : TRUE
Discussion
1996.

Cheques deposited but not collected will result in increasing the balance of the cash book when compared to passbook.

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SOLUTION :T
Discussion
1997.

Cheques issued but not presented for payment are resorded on not recorded in an amended cash book ? Give reason for your answer.

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Solution :Cheques ISSUED but not presented for PAYMENT are not RECORDED in an amended cash book because will be ULTIMATELY presented for payment in the bank.
Discussion
1998.

Cheque returned dishonoured, it is recordedin

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CASH Column on the credit side
Cash Column on the DEBIT side
BANK column on the credit side
Journal Proper.

SOLUTION : Bank column on the credit side
Discussion
1999.

Cheque receivedand endorsed is entered in Journal Proper.

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SOLUTION : TRUE
Discussion
2000.

Charles Ltd., made a profit of Rs 1,00,000 after charging depreciation of Rs 20,000 on assets and a transfer to general reserve of Rs 30,000. The goodwill amortised was Rs 7,000 and gain on sale of machinery was Rs 3,000. Other information available to you ( changes in the value of current assets and current liabilities) are trade receivables showed an increase of Rs 3,000, trade payables an increase of Rs 6,000, prepaid expenses an increase of Rs 200, and outstanding expenses a decrease of Rs 2,000. Ascertain cash flow from operating activities.

Answer»

Solution :
Working Notes :
Calculation of Net PROFIT before Taxation and Extraordinary items:
(1) Net Profit =RS 1,00,000
+ Transfer to General RESERVE =Rs 30,000
= Rs 1,30,000


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Discussion