F.Y B.COM
SEMESTER - 2
FINANCIAL ACCOUNTING
(FA)
MCQS - UNIT II
1. Which of the following is true? ___
(a) Assets = Capital + Liabilities
(b) Capital – Liabilities = Assets
(c) Liabilities + Assets = Capital
(d) None of the above
2. On 31/3/2014, the Assets of Sahukar & Co. 1,50,000 and Liabilities 40,000. The capital of the firm as on 31/3/2014 is _________.
(a) 1,90,000
(b) 1,50,000
(c) 1,10,000
(d) 40,000
3. Which of the following is not a financial statement in case of trading concern?
(a) Manufacturing Account
(b) Trading Account
3. Which of the following is not a financial statement in case of trading concern?
(a) Manufacturing Account
(b) Trading Account
(c) Balance Sheet
(d) Profit & Loss Account
4. In preparation of Financial Statements, outstanding wages & salaries appearing in the Trial Balance will be shown in ___________.
(a) Debit side of Trading Account
(b) Debit side of Manufacturing Account
(c) Liabilities side of Balance Sheet
(d) Assets side of Balance Sheet
5. Return inward appearing in the Trial Balance is to be deducted from :
(a) Sales
(d) Profit & Loss Account
4. In preparation of Financial Statements, outstanding wages & salaries appearing in the Trial Balance will be shown in ___________.
(a) Debit side of Trading Account
(b) Debit side of Manufacturing Account
(c) Liabilities side of Balance Sheet
(d) Assets side of Balance Sheet
5. Return inward appearing in the Trial Balance is to be deducted from :
(a) Sales
(b) Purchases
(c) Closing stock
(d) Opening stock
6. Interest on drawing shows debit effect on:
(a) Profit & Loss A/c
(b) Profit & Loss Appropriation A/c
(c) Assets side
(d) Partner’s Capital A/c
7. Interest on drawing is _________.
(a) Expenditure for the business
(b) Loss for the business
(c) Gain for the business
(d) None of the above
8. Mr. Ankit, a partner in a firm withdraws Rs. 300 on first day of every month. If the firm charges interest on drawings at 14% p.a., the amount of interest on drawings is ________.
(a) 273
6. Interest on drawing shows debit effect on:
(a) Profit & Loss A/c
(b) Profit & Loss Appropriation A/c
(c) Assets side
(d) Partner’s Capital A/c
7. Interest on drawing is _________.
(a) Expenditure for the business
(b) Loss for the business
(c) Gain for the business
(d) None of the above
8. Mr. Ankit, a partner in a firm withdraws Rs. 300 on first day of every month. If the firm charges interest on drawings at 14% p.a., the amount of interest on drawings is ________.
(a) 273
(b) 504
(c) 42
(d) None of these
9. Mr. A one of the partner in the partnership firm who withdraws Rs. 500 at the end of every month. Find out amount of interest on drawing @ 12% p.a.
(a) 390
(b) 360
(c) 330
(d) 600
10. Anil and Biren are partners in a firm. Anil had withdrawn Rs. 300 p.m. at the beginning of each month and Biren had withdrawn Rs. 500 p.m. at the end of each month. What will be the amount of interest on drawing if the rate of interest on drawing is 10 % p.a.?
(a) Anil - 180 and Biren - 275
(b) Anil - 195 and Biren - 300
(c) Anil - 180 and Biren - 300
(d) Anil - 195 and Biren - 275
11. If closing capital of a partner is Rs. 60,000, which includes Rs. 20,000 Drawings and Rs. 25,000 share from profit. Calculate amount of interest on capital @ 6% p.a.
9. Mr. A one of the partner in the partnership firm who withdraws Rs. 500 at the end of every month. Find out amount of interest on drawing @ 12% p.a.
(a) 390
(b) 360
(c) 330
(d) 600
10. Anil and Biren are partners in a firm. Anil had withdrawn Rs. 300 p.m. at the beginning of each month and Biren had withdrawn Rs. 500 p.m. at the end of each month. What will be the amount of interest on drawing if the rate of interest on drawing is 10 % p.a.?
(a) Anil - 180 and Biren - 275
(b) Anil - 195 and Biren - 300
(c) Anil - 180 and Biren - 300
(d) Anil - 195 and Biren - 275
11. If closing capital of a partner is Rs. 60,000, which includes Rs. 20,000 Drawings and Rs. 25,000 share from profit. Calculate amount of interest on capital @ 6% p.a.
(a) 2,400
(b) 3,300
(c) 3,600
(d) 3,900
12. Mrs. Beena, wife of a Mr. Been who is a partner in Benam partnership firm gives loan to the firm. Partnership deed has not prepared so Interest will be charged on loan @ ___
(a) 6%
(b) No interest
(c) 5%
(d) 8%
13. Mr. Ashish, a manager is entitled to a commission @ 10% p.a. on Net Profit after charging his commission. If the Net profit is Rs. 1,10,000, his commission amounts to _______.
(a) 10,000
(b) 11,000
(c) 12,222
(d) None of these
14. Mr. Pranav, a manager is entitled to a commission @ 10% p.a. on net profit after charging his commission. If the net profit is Rs.2,20,000, his commission amounts to _______.
(a) 2,000
14. Mr. Pranav, a manager is entitled to a commission @ 10% p.a. on net profit after charging his commission. If the net profit is Rs.2,20,000, his commission amounts to _______.
(a) 2,000
(b) 22,000
(c) 2,200
(d) 20,000
15.Income tax paid by business on behalf of the proprietor should be ______.
(a) Debited to the Trading A/c
15.Income tax paid by business on behalf of the proprietor should be ______.
(a) Debited to the Trading A/c
(b) Deducted from the Capital A/c. in the balance sheet
(c) Debited to the Profit & Loss A/c
(c) Debited to the Profit & Loss A/c
(d) Added to the Capital A/c. in the balance sheet
16. Advertisement expenses of Rs. 80,000 for the year 2016-17 include promotional expenditure to the extent of Rs. 40,000 of which the benefit will be available for 4 years. The amount of Advertisement expenses to be debited to the Profit and Loss A/c. is _______.
(a) 40,000
16. Advertisement expenses of Rs. 80,000 for the year 2016-17 include promotional expenditure to the extent of Rs. 40,000 of which the benefit will be available for 4 years. The amount of Advertisement expenses to be debited to the Profit and Loss A/c. is _______.
(a) 40,000
(b) 70,000
(c) 50,000
(d) 80,000
17. Advertisement expenses incurred for Rs. 45,000 during the year 2015-16. It includes a cost of sales promotion scheme run during the year to the extent of Rs. 22,500. It is expected that the effect of this scheme will be felt for at least 3 years. Advertisement expenses is to be debited to the Profit & Loss A/c.
(a) 67,500
(b) 30,000
17. Advertisement expenses incurred for Rs. 45,000 during the year 2015-16. It includes a cost of sales promotion scheme run during the year to the extent of Rs. 22,500. It is expected that the effect of this scheme will be felt for at least 3 years. Advertisement expenses is to be debited to the Profit & Loss A/c.
(a) 67,500
(b) 30,000
(c) 22,500
(d) 45,000
18. The balance of Machinery a/c as on 1/4/14 was Rs. 2,00,000. The firm purchased a machine costing Rs. 5,00,000 on 1/10/14 another machine costing Rs. 3,00,000 on 1/1/2015. The firm provides depreciation @ 10% p.a. under Written down value method. The depreciation for the year ended on 31/3/15. will be ____
(a) 53,500
(b) 1,00,000
(c) 52,500
(d) none of these
19. Calculate amount of depreciation @10 % p.a. based on following information of Machinery for the year ended 31st March, 2017.
(a) 1,07,000
(b) 86,625
18. The balance of Machinery a/c as on 1/4/14 was Rs. 2,00,000. The firm purchased a machine costing Rs. 5,00,000 on 1/10/14 another machine costing Rs. 3,00,000 on 1/1/2015. The firm provides depreciation @ 10% p.a. under Written down value method. The depreciation for the year ended on 31/3/15. will be ____
(a) 53,500
(b) 1,00,000
(c) 52,500
(d) none of these
19. Calculate amount of depreciation @10 % p.a. based on following information of Machinery for the year ended 31st March, 2017.
|
Date |
Particulars |
Amt (Rs.) |
|
1/4/2016 |
Opening Balance |
7,00,000 |
|
1/4/2016 |
Sale |
1,75,000 |
|
1/7/2016 |
Purchase in cash |
2,75,000 |
|
1/10/2016 |
Purchase from USR Co. Ltd |
2,70,000 |
(a) 1,07,000
(b) 86,625
(c) 1,42,000
(d) None of these
20. From the following find out amount of Lease to be written off in the year 2016- 2017 :
(a) Rs. 9,000
(b) Rs. 10,000
(c) Rs. 11,250
(d) Rs. 11,000
21. Expected selling price of goods is Rs. 40,000 and expected selling expense on it Rs. 1,500 and Commission payable to Agent is Rs 2,100. What will be net realizable value of goods?
(d) None of these
20. From the following find out amount of Lease to be written off in the year 2016- 2017 :
|
Particulars |
Amount (Rs.) |
|
Lease assets (From
1/10/2015 for 5 years) |
45,000 |
(a) Rs. 9,000
(b) Rs. 10,000
(c) Rs. 11,250
(d) Rs. 11,000
21. Expected selling price of goods is Rs. 40,000 and expected selling expense on it Rs. 1,500 and Commission payable to Agent is Rs 2,100. What will be net realizable value of goods?
(a) 40,000
(b) 38,500
(c) 36,400
(d) None of these
22. SURE Ltd. deals in 3 products A, B and C, which are neither similar nor interchangeable. At the time of closing its books of Accounts for the year 2017-18, the historical cost and Net realizable value of the closing stock are as follows:
|
ITEM |
HISTORICAL COST |
NET REALISABLE VALUE |
|
A |
Rs.10,00,000 |
Rs.11,00,000 |
|
B |
Rs.12,00.000 |
Rs.10,00,000 |
|
C |
Rs.17,00.000 |
Rs.19,00,000 |
What will be the value of closing stock?
(a) Rs. 42,00,000
(b) Rs. 40,00,000
(c) Rs. 39,00,000
(d) Rs. 37,00,000
Using the following Information Answer question No .23 & 24 :
(1) Sales for the year Rs. 1,50,000
Using the following Information Answer question No .23 & 24 :
(1) Sales for the year Rs. 1,50,000
(2) Opening stock of Finished Goods Rs. 60,000
(3) Purchases during the year Rs. 1,00,000
(3) Purchases during the year Rs. 1,00,000
(4) Cost of Goods sold Rs. 90,000
(5) Selling and Distribution expenses Rs. 20,000
(5) Selling and Distribution expenses Rs. 20,000
(6) Administration Expenses Rs. 15,000
23. The value of closing stock of Finished Goods is Rs _____.
(a) 60,000
23. The value of closing stock of Finished Goods is Rs _____.
(a) 60,000
(b) 70,000
(c) 40,000
(d) None of these
24.The Net Profit for the year is Rs. _________.
(a) 25,000
24.The Net Profit for the year is Rs. _________.
(a) 25,000
(b) 40,000
(c) 35,000
(d) None of these
25. An asset is subject to depreciation at 10% p.a. on Reducing Balance Method. If the book value of the assets as on 1st April 2014 is Rs. 45,000, the annual depreciation for the year 2015-16 will be _______.
(a) 4,050
25. An asset is subject to depreciation at 10% p.a. on Reducing Balance Method. If the book value of the assets as on 1st April 2014 is Rs. 45,000, the annual depreciation for the year 2015-16 will be _______.
(a) 4,050
(b) 4,500
(c) 8,550
(d) None of these
26. X and Y are partners sharing profit and losses in the ratio of 3 : 2. The net profit of the firm is Rs. 5,000. Interest on Capital and Interest on Drawings amounted to Rs. 5,000 and Rs. 2,500 respectively. The share in the divisible profit of X and Y will amount to ______ & ______ respectively.
(a) 3,000 & 2,000
26. X and Y are partners sharing profit and losses in the ratio of 3 : 2. The net profit of the firm is Rs. 5,000. Interest on Capital and Interest on Drawings amounted to Rs. 5,000 and Rs. 2,500 respectively. The share in the divisible profit of X and Y will amount to ______ & ______ respectively.
(a) 3,000 & 2,000
(b) 1,500 & 1,000
(c) 4,500 & 3,000
(d) None of these
27. Hena and Ena are partners in M/s HE & Co. Their profit sharing ratio is 3:2. Their opening balance of Capital Account are Rs. 1,60,000 and Rs. 1,20,000 respectively. Hena is given commission of Rs. 5,000 from the profit of the firm. In partnership deed, it is decided to give salary of Rs. 1,000 p.m. to both partners on 31st March, 2018. Firm incurred net divisible profit of Rs. 50,000 during the year. Interest on capital is paid Rs. 10,000 and Rs. 15,000. Drawings made during the year of Rs. 3,000 and Rs. 4,000 by Hena and Ena respectively. What will be the final balance of both partners to be shown in the Balance Sheet will be :
(a) 2,14,000 and 1,63,000
(b) 1,73,000 and 1,43,000
(c) 2,10,000 and 1,50,000
(d) 1,65,000 and 1,43,000
28. From the following information ascertain the amount of insurance for the year 2017-18 to be debited to profit & Loss Account. Insurance (including Rs. 4,800 for a year ended 30/9/2018) - Rs. 8,000.
(a) 2,400
27. Hena and Ena are partners in M/s HE & Co. Their profit sharing ratio is 3:2. Their opening balance of Capital Account are Rs. 1,60,000 and Rs. 1,20,000 respectively. Hena is given commission of Rs. 5,000 from the profit of the firm. In partnership deed, it is decided to give salary of Rs. 1,000 p.m. to both partners on 31st March, 2018. Firm incurred net divisible profit of Rs. 50,000 during the year. Interest on capital is paid Rs. 10,000 and Rs. 15,000. Drawings made during the year of Rs. 3,000 and Rs. 4,000 by Hena and Ena respectively. What will be the final balance of both partners to be shown in the Balance Sheet will be :
(a) 2,14,000 and 1,63,000
(b) 1,73,000 and 1,43,000
(c) 2,10,000 and 1,50,000
(d) 1,65,000 and 1,43,000
28. From the following information ascertain the amount of insurance for the year 2017-18 to be debited to profit & Loss Account. Insurance (including Rs. 4,800 for a year ended 30/9/2018) - Rs. 8,000.
(a) 2,400
(b) 8,000
(c) 5,600
(d) 3,200
29. Information abstracted from the Current Capital Account of Mr. Amey : Opening Balance of Current Account Rs. 5,000 (Debit balance) Interest on Drawings is Rs. 1,000 Interest on Fixed Capital Account is Rs. 2,000 Drawings during the year is Rs. 5,000. His share in profit of the firm is Rs. 25,000. What will the amount of Current Capital Account at the end of the year?
(a) 36,000
29. Information abstracted from the Current Capital Account of Mr. Amey : Opening Balance of Current Account Rs. 5,000 (Debit balance) Interest on Drawings is Rs. 1,000 Interest on Fixed Capital Account is Rs. 2,000 Drawings during the year is Rs. 5,000. His share in profit of the firm is Rs. 25,000. What will the amount of Current Capital Account at the end of the year?
(a) 36,000
(b) 16,000
(c) 46,000
(d) 26,000
30. Mr. Deep is both Debtor and Creditor for Rs. 10,000. What will be the effect while preparing Final Account?
(a) Rs. 10,000 Deducted from Debtors
(b) Rs. 10,000 Deducted from Creditors
(c) Rs. 10,000 Deducted from both Debtors and Creditor
(d) No Effect
30. Mr. Deep is both Debtor and Creditor for Rs. 10,000. What will be the effect while preparing Final Account?
(a) Rs. 10,000 Deducted from Debtors
(b) Rs. 10,000 Deducted from Creditors
(c) Rs. 10,000 Deducted from both Debtors and Creditor
(d) No Effect
31. Mr. Puri is a debtor of Rs. 5,000 and creditor for Rs. 7,000 of Soham Traders. Which of the following is correct treatment in final account of Soham Traders?
(a) 7,000 deducted from creditors only
(b) 5,000 deducted from both debtors and creditors
(c) 5,000 deducted from debtors only
(d) 7,000 deducted from both debtors and creditors
32. Balaji wafers limited manufactures 4 types of varieties of wafers in their manufacturing unit, how many manufacturing account should firm prepares?
(a) 1
32. Balaji wafers limited manufactures 4 types of varieties of wafers in their manufacturing unit, how many manufacturing account should firm prepares?
(a) 1
(b) 4
(c) 3
(d) None of these
Extra :
33. Which one of the following combinations of accounting assumptions are fundamental as per AS – I ?
(a) Going concern, consistency, and accrual
Extra :
33. Which one of the following combinations of accounting assumptions are fundamental as per AS – I ?
(a) Going concern, consistency, and accrual
(b) Going concern, conservatism, and historic cost
(c) Historic cost, consistency and conservatism
(d) Conservatism, consistency and accrual
34. The ICAI set up the Accounting Standard Board in the year ______.
(a) 1947
34. The ICAI set up the Accounting Standard Board in the year ______.
(a) 1947
(b) 1977
(c) 1976
(d) 1999
35. First section of preface to Accounting Standards deals with :
(a) Procedure of issue AS
(b) Scope of AS
(c) Formation of AS
(d) General purpose financial statement
36. IFRS stands for :
(a) International Financial Reporting System
35. First section of preface to Accounting Standards deals with :
(a) Procedure of issue AS
(b) Scope of AS
(c) Formation of AS
(d) General purpose financial statement
36. IFRS stands for :
(a) International Financial Reporting System
(b) International Financial Reporting Standard
(c) Indian Financial Reporting System
(d) Indian Financial Reporting Standard
37. The main objectives of reading of ledger accounts ____
(a) For reconciliation of bank balance
37. The main objectives of reading of ledger accounts ____
(a) For reconciliation of bank balance
(b) To be produced as an evidence in the court
(c) To know progress of business
(c) To know progress of business
(d) All of the above
38. Mr. Suri is a debtor, he has credit opening balance of Rs.10,000 that gives analysis of -
(a) Adverse opening balance
(b) Got advance from him before sale
(c) Both A & B
(d) None of these
39. Under FIFO method :
(a) The material received last are issued first
38. Mr. Suri is a debtor, he has credit opening balance of Rs.10,000 that gives analysis of -
(a) Adverse opening balance
(b) Got advance from him before sale
(c) Both A & B
(d) None of these
39. Under FIFO method :
(a) The material received last are issued first
(b) The material received first are issued first
(c) The material received first are issued last
(d) The material received last are issued last
40. Historical cost of inventories should normally be determined by using
(a) FIFO or Weighted average cost formula
40. Historical cost of inventories should normally be determined by using
(a) FIFO or Weighted average cost formula
(b) FIFO, Base Stock, or Adjusted Selling price formula
(c) FIFO, LIFO or Latest Purchase Price formula
(d) LIFO, Base Stock or Adjusted Selling Price formula
41. A & B associates, a listed joint stock company has a net worth Rs. 450 crore, from when it has to prepare its financial statements mandatorily as per Ind AS.
(a) 01/04/2016
(b) 01/04/2017
(c) 01/04/2018
(d) 01/04/2019
42. Prime Cost + Factory Overheads is expressed as ___
(a) Total cost
(b) Gross Works Cost of production
(c) Cost of sales
(d) None of the above
43. Direct Materials + Direct Labour + Direct Expenses + Factory Overheads is expressed as
(a) Prime Cost
(b) Gross Works Cost of Production
(c) Net Works Cost of Production
(d) Total Cost
44. Prime Cost + Factory Overhead + Opening WIP – Closing WIP is expressed as _______.
(a) Total Purchase
41. A & B associates, a listed joint stock company has a net worth Rs. 450 crore, from when it has to prepare its financial statements mandatorily as per Ind AS.
(a) 01/04/2016
(b) 01/04/2017
(c) 01/04/2018
(d) 01/04/2019
42. Prime Cost + Factory Overheads is expressed as ___
(a) Total cost
(b) Gross Works Cost of production
(c) Cost of sales
(d) None of the above
43. Direct Materials + Direct Labour + Direct Expenses + Factory Overheads is expressed as
(a) Prime Cost
(b) Gross Works Cost of Production
(c) Net Works Cost of Production
(d) Total Cost
44. Prime Cost + Factory Overhead + Opening WIP – Closing WIP is expressed as _______.
(a) Total Purchase
(b) Net works cost of production
(c) Total Production
(d) Gross works cost of production
45. Which of the following statement is correct for finding out the Net works cost of production?
(a) Prime cost + factory overheads + opening stock – closing stock
(b) Prime cost + administration and selling overheads + opening stock – closing stock
(c) Prime cost + administration overheads + opening stock – closing stock
(d) Prime cost + factory and selling overheads + opening stock – closing stock
46. IFRS stands for ____
(a) Indian Financial Reporting Standards
45. Which of the following statement is correct for finding out the Net works cost of production?
(a) Prime cost + factory overheads + opening stock – closing stock
(b) Prime cost + administration and selling overheads + opening stock – closing stock
(c) Prime cost + administration overheads + opening stock – closing stock
(d) Prime cost + factory and selling overheads + opening stock – closing stock
46. IFRS stands for ____
(a) Indian Financial Reporting Standards
(b) International Financial Reporting Standard
(c) Indian Financial Reporting Structure
(c) Indian Financial Reporting Structure
(d) International Financial Reporting System
47.Accounting Standard Board (India) was constituted in the year ______.
(a) 1987
(b) 1977
(c) 1967
(d) None of the above
48. International Accounting Standard Board constituted in the year
(a) 2001
47.Accounting Standard Board (India) was constituted in the year ______.
(a) 1987
(b) 1977
(c) 1967
(d) None of the above
48. International Accounting Standard Board constituted in the year
(a) 2001
(b) 1977
(c) 1973
(d) 2011
49. Preparing Financial Statements in compliance with Ind AS is Mandatory from 1/4/2016 for the Companies having debt and equity securities listed or not or are in process of being listed on any of the recognized stock exchange in India or outside India having net worth of ___
(a) Rs. 500 Crore
(b) More than or equal to Rs. 500 Crore
(c) Less than Rs. 500 Crore
(d) Rs. 250 Crore
49. Preparing Financial Statements in compliance with Ind AS is Mandatory from 1/4/2016 for the Companies having debt and equity securities listed or not or are in process of being listed on any of the recognized stock exchange in India or outside India having net worth of ___
(a) Rs. 500 Crore
(b) More than or equal to Rs. 500 Crore
(c) Less than Rs. 500 Crore
(d) Rs. 250 Crore
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