1. When a person borrows money, he pays in return some extra money to the lender . This extra money is called-      Marks:   2+ 0.5-

    Principal Amount    Dividend    Interest    Bonus    None of the above. The Correct Answer is :     Interest    You did not answer the question. Explanation : 0This is due to the impact of certain tings and .......hope this will work wellExample Explanation Module : Module A Chapter : Chapter1 2. The rate of interest on a sum of money is 4% p.a .for the first 2 years, 6% p.a. for The next 4 years and 8% p.a. for the period beyond 6 years. If the simple interest accrued by the sum for a total period of 9 years is Rs, 1,120, what is the sum?      Marks:   2+ 0.5-

    Rs. 1,000    Rs. 1,500    Rs. 2,000    Rs. 2,500    Rs, 3,000 The Correct Answer is :     Rs. 2,000    You did not answer the question. Explanation : 1This is due to the impact of certain tings and .......hope this will work wellExample Explanation Module : Module A Chapter : Chapter1 3. 25. A money-lender finds that due to a fail in the rate of interest from 13% to 12.5%, His yearly income from interest falls by Rs. 208. His principal amount is-      Marks:   2+ 0.5-

    Rs. 42,800    Rs. 41,600    Rs. 44,600    Rs. 48,000    Rs. 50,000 The Correct Answer is :     Rs. 41,600    You did not answer the question. Explanation : 2This is due to the impact of certain tings and .......hope this will work wellExample Explanation Module : Module A Chapter : Chapter1 4. A sum of Rs. 25,400 is lent out into two parts, one at 12% p.a. and the other at 12.5% p.a. If the total annual income from interest is Rs. 3,1160. the money lent at 12% is-      Marks:   2+ 0.5-

    Rs. 10,000    Rs. 11,800    Rs. 12,400    Rs. 13,400    Rs. 13,600 The Correct Answer is :     Rs. 11,800    You did not answer the question. Explanation : 3This is due to the impact of certain tings and .......hope this will work wellExample Explanation

Module : Module A Chapter : Chapter1 5. 27. A sum of Rs. 26,000 is lent out in two parts in such a way that the interest on one Part @ 10% for 5 years is equal to the on another part @ 9% for 6 years. The sum lent out at 10% is- Marks:   2+ 0.5-

    Rs. 10,500    Rs. 11,500    Rs. 12,500    Rs. 13,500    Rs. 14,500 The Correct Answer is :     Rs. 13,500    You did not answer the question. Explanation : 4This is due to the impact of certain tings and .......hope this will work wellExample Explanation Module : Module A Chapter : Chapter1 6. 28. At a certain rate of simple interest, a sum doubles itself in 10 years. It will treble Itself in-      Marks:   2+ 0.5-

    12 Years    15 Years    18 Years    20 years    25 Years The Correct Answer is :     20 years    You did not answer the question. Explanation : 5This is due to the impact of certain tings and .......hope this will work wellExample Explanation Module : Module A Chapter : Chapter1 7. In how many years will a sum of money double itself at 12% per annum simple Interest? Marks:   2+ 0.5-

    6 Years    6 Years 6 months.    7 Years    8 Years    8 Years 6 months The Correct Answer is :     8 Years 6 months    You did not answer the question. Explanation : 6This is due to the impact of certain tings and .......hope this will work wellExample Explanation Module : Module A Chapter : Chapter1 8. The simple interest at x % for x years will be Rs. X on a sum of-      Marks:   2+ 0.5-

    Rs. X    Rs. 100 x    100    100    x The Correct Answer is :     100/x    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1

9. 1. When a person borrows money, he pays in return some extra money to the lender . This extra money is called-      Marks:   2+ 0.5-

    Principal Amount    Dividend    Interest    Bonus    None of the above The Correct Answer is :     Interest    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 10. The money borrowed from bank or any person is called-      Marks:   2+ 0.5-

    Principal Amount    Interest    Capital    Financial Assistance    None of the above. The Correct Answer is :     Principal Amount    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 11. The formula for finding simple interest is-      Marks:   2+ 0.5-

    I * 100    100    RT     (iv) Interest = A * R * T    P * R * T The Correct Answer is :     P * R * T    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 12. The simple interest on Rs. 10,000 at 6% p.a. for 3 years would be-      Marks:   2+ 0.5-

    Rs. 600    Rs. 1,200    Rs. 1,800    Rs. 2,000    None of the above. The Correct Answer is :     Rs. 1,800    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 13. What is the simple interest on Rs.1,200 at 5.5% p.a. for 5 years ? Find the amount also. Marks:   2+ 0.5-

    320 + 1,200 = Rs. 1,520    325 + 1,200 = Rs. 1,525    340 + 1,200 = Rs. 1,540    350 + 1,200 = Rs. 1,550    None of the above. The Correct Answer is :     None of the above.    You did not answer the question. Explanation : undefined

Module : Module A Chapter : Chapter1 14. A money lender lent some amount to a trader @ 8% p.a. After 18 months, the trader paid him Rs. 700 in full payment of interest and principal amount. Find out the sum lent by the money-lender.      Marks:   2+ 0.5-

    Rs. 600    Rs. 610    Rs. 625    Rs. 650    Rs. 700 The Correct Answer is :     Rs. 625    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 15. In how may years will the interest be Rs.150 on Rs. 1,250 @4% per annum?      Marks:   2+ 0.5-

    1 Year    2 Years    3 Years    4 Years    None of the above. The Correct Answer is :     3 Years    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 16. What annual rate of simple interest was paid if Rs. 500 earned Rs. 55 as interest in 2 Years and 9 months?      Marks:   2+ 0.5-

    2%    3%    3.5%    4%    4.5% The Correct Answer is :     4%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 17. A sum of money at simple interest amounts to Rs. 2,800 in 2 years and to Rs. 3,250 in 5 years. Find the sum and the rate of interest.      Marks:   2+ 0.5-

    Rs. 2,500 ; 4%    Rs. 2,500; 5%    Rs. 3,000 ; 4%    Rs. 3,000 ; 5%    Rs. 2,500 ; 6% The Correct Answer is :     Rs. 2,500 ; 6%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 18. Certain principal amount plus its 5 Year's simple interest makes an amount of Rs.500. If the interest is 1/4th of its principal, find out the rate of interest and the principal amount. Marks:   2+ 0.5-

    4% ; Rs. 400    5% ; Rs. 400    5.5% : Rs. 300

    6% : Rs. 250    8% ; 200 The Correct Answer is :     5% ; Rs. 400    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 19. A sum of money amount to Rs.2,240 @ 4% simple interest in 3 years. Find the interest on the same sum for 6 months @ 3.5% p.a.      Marks:   2+ 0.5-

    Rs. 35    Rs. 40    Rs. 45    Rs.50    None of the above. The Correct Answer is :     Rs. 35    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 20. The simple interest on a sum of money is 1/9th of the principal and the number of the years is equal to the rate per cent per annum. The rate percent per annum is -      Marks:   2+ 0.5-

    2%    1     3%    1    1 The Correct Answer is :     3%=3.33%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 21. What is the amount of Rs. 4,000 @ 4% simple interest p.a from 10th January 2004 to 11th April 2005, on the basis of number of days?      Marks:   2+ 0.5-

    Rs. 4,200    Rs. 4,300    Rs. 4,300.17    Rs. 4,200.17    Rs. 4,200.87 The Correct Answer is :     Rs. 4,200.17    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 22. The basis salary of a teacher is Rs. 7,000 p.m. He contributes 10% of his basic salary to his provident fund account. His employer also contributes the similar amount. If the interest credited to the provident fund account is 6% p.a., find the amount of interest after one year. Marks:   2+ 0.5-

    Rs. 5,040    Rs. 420    Rs. 840    Rs. 546    Rs. 273. The Correct Answer is :     Rs. 546    You did not answer the question. Explanation : undefined

Module : Module A Chapter : Chapter1 23. A person deposited a sum of money in a bank on 12th January 2005And received back his full principal with interest on 24th September 2005. If he got Rs. 1,570, what was his principal amount while the rate of interest is 5% per annum?      Marks:   2+ 0.5-

    Rs. 4,509 approx.    Rs. 45,088 approx    Rs. 50,000    Rs. 30,000    None of the above The Correct Answer is :     Rs. 45,088 approx    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 24. A sum of money doubles itself in 16 years at simple interest with yearly rate of-      Marks:   2+ 0.5-

    6.25%    8%    10%    16%    20% The Correct Answer is :     6.25%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 25. Rs. 800 amounts to Rs. 920 in 3 years at simple interest. If the interest rate is increased by 3%, it would amount to-      Marks:   2+ 0.5-

    Rs.992    Rs.1,056    Rs.1,112    Rs.1,182    Rs.1,200 The Correct Answer is :     Rs.992    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 26. A certain sum of money at simple interest amounts to Rs. 1,260 in 2 years and toYears and to Rs. 1,350 in 5 years. The rate per cent per annum is-      Marks:   2+ 0.5-

    2%    2.5%    3.75%    5%    7.5% The Correct Answer is :     2.5%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 27. A lent Rs. 6,000to B for 2 years and Rs. 1,500 to C for 4 years and received Altogether from both Rs.900 as simple interest. The rate of interest is-      Marks:   2+ 0.5-

    4%    5%    8%

    10%    12% The Correct Answer is :     5%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 28. The simple interest on a sum will be Rs. 60,000 after 10 years. If the principal is Trebled after 5 years, the total interest at the end of the tenth year will be-      Marks:   2+ 0.5-

    Rs. 60,000    Rs. 90,000    Rs. 1,20,000    Rs. 1,50,000    None of the above. The Correct Answer is :     Rs. 1,20,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 29. A person lends Rs. 10,000 in four parts. If he gets 8% on Rs. 2,000; 705% on Rs. 4,000 and 8.5% on Rs. 1,400; what per cent must he get for the remainder, if the average rate of interest is 8.13%?      Marks:   2+ 0.5-

    6%    7%    9%    10%    12% The Correct Answer is :     9%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 30. The simple interest on a sum of money @ 8% per annum for 6 years is half the sum. The sum is-      Marks:   2+ 0.5-

    Rs. 4,000    Rs. 4,800    Rs. 6,000    Rs. 8,000    Date inadequate The Correct Answer is :     Date inadequate    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter1 31. 1 23. A certain sum of money at simple interest amount to Rs. 1,012 in 2--- 2 years and to Rs. 1,067.20 in 4 years. The rate of interest per annum is-      Marks:   2+ 0.5-

    2%    2.5%    3%    4%    5% The Correct Answer is :     4%    You did not answer the question. Explanation : undefined

Module : Module A Chapter : Chapter1 32. The money which amounts to Rs. 9,261 in 3 years @ 5%p.a. compound interest is Marks:   2+ 0.5-

    Rs. 4,000    Rs. 6,000    Rs. 7,000    Rs. 8,000    Rs. 10,000 The Correct Answer is :     Rs. 8,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 33. The compound interest for 3 years @ 5% p.a. is Rs. 1,261 on a certain sum The principal is - Marks:   2+ 0.5-

    Rs. 8,000    Rs. 9,000    Rs. 10,000    Rs. 11,000    Rs. 12.000 The Correct Answer is :     Rs. 8,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 34. Simple interest on a sum at 4% p.a. for two years is Rs.800. The compound interest on the same sum for the same period is-      Marks:   2+ 0.5-

    Rs. 81.60    Rs. 816    Rs. 1,600    Rs. 1,816    Rs. None of the above. The Correct Answer is :     Rs. 816    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 35. A sum amounts to Rs. 2,916 in 2 years and to Rs. 3,149.28 in 3 years at Compound interest. The sum is-      Marks:   2+ 0.5-

    Rs. 1,000    Rs. 1,500    Rs. 2,000    Rs. 2,500    Rs. 3,000 The Correct Answer is :     Rs. 2,500    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 36. A sum of money at compound interest amount to Rs. 10,648 in 3 years and Rs. 9,680 in 2 years. The rate of interest is-      Marks:   2+ 0.5-

    5%    10%    15%

    20%    25%. The Correct Answer is :     10%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 37. Rs. 400 at 5% p.a. compound interest will amount to Rs. 441 in-      Marks:   2+ 0.5-

    1 year    2 years    3 years    4 years    5 years. The Correct Answer is :     2 years    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 38. 20. What is the principal amount which earns Rs. 264 as compound interest for the second year @ 10% p.a.?      Marks:   2+ 0.5-

    Rs. 2,000    Rs. 2,200    Rs. 2,400    Rs. 2,600    Rs. 2,800. The Correct Answer is :     Rs. 2,400    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 39. If Rs. 7,500 are borrowed at compound interest at the rate of 4% p.a. then after 2 years the amount to be paid is-      Marks:   2+ 0.5-

    Rs. 7,800    Rs. 8,082    Rs. 8,100    Rs. 8,112    Rs. 8,200 The Correct Answer is :     Rs. 8,112    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 40. If compound interest for 2 Years at the rate of 4% of some money is Rs. 102, find the simple interest at the same rate for 2 years.      Marks:   2+ 0.5-

    Rs. 108.16    Rs. 100    Rs. 110    Rs. 120    Rs. 130. The Correct Answer is :     Rs. 100    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2

41. What is the rate percent per annum if a sum doubles itself in 12 years at Compound rate of interest?      Marks:   2+ 0.5-

    5.2%    5.4%    5.5%    5.8%    5.9% The Correct Answer is :     5.9%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 42. If a sum of money trebles itself in 2 years at compound interest, then it will be 27 times of itself in-      Marks:   2+ 0.5-

    5 years    6 years    12 years    15 years    18 years The Correct Answer is :     6 years    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 43. The simple interest and compound interest of first year, are-      Marks:   2+ 0.5-

    equal    unequal.The Correct Answer is :     equal    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 44. When compound interest is calculated half yearly, then the period becomes-      Marks:   2+ 0.5-

    half    double    one fourth    one tenth    None to the above. The Correct Answer is :     double    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter2 45. If the true discount on a sum due 2 years hence @ 5% per annum be Rs. 300, then the sum due is -      Marks:   2+ 0.5-

    Rs. 3,000    Rs. 3,200    Rs. 3,300    Rs. 3,500    Rs. 3,600 The Correct Answer is :     Rs. 3,300    You did not answer the question. Explanation : undefined

Module : Module A Chapter : Chapter3 46. The present worth of Rs. 7,020 due in two equal half-yearly instalments @ 8%p.a. simple interest is -      Marks:   2+ 0.5-

    Rs 6,500    Rs. 6,625    Rs. 6,750    Rs. 7,000    Rs. 7,100 The Correct Answer is :     Rs. 6,625    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 47. The simple interest and the true discount on a certain sum for a given time and at a given rate are Rs. 1000 and Rs. 80, respectively. The sum is -      Marks:   2+ 0.5-

    Rs. 400    Rs. 800    Rs.1,00    Rs.2,000    None of the above. The Correct Answer is :     Rs. 400    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 48. 4. A person buys a watch for Rs. 1,950 in cash and sells it for Rs. 2,200 on credit of 1 year. If the rate of interes Is 10% he -      Marks:   2+ 0.5-

    loses Rs. 50.    Loses Rs.30    Gains Rs.30    Gains Rs.50    Gains Rs.150. The Correct Answer is :     Gains Rs.50    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 49. A has to pay Rs. 22,000 to B after 1 year. B asks A to pay Rs. 11,000 in cash Immediately and defer the payment of Rs. 11,000 for 2 years. A agrees to it. Counting the rate of interest at 10% p.a. in this new mode of payment -      Marks:   2+ 0.5-

    there is no gain or loss to any one    A gains Rs. 734    A loses Rs. 734    A gain Rs. 1,100    B gains Rs. 1,100. The Correct Answer is :     A gains Rs. 734    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 50. A owes B Rs. 1,802 due 1 year hence. However, a wants to settle the account after 3 months. How much cash should he pay, if rate is 8% p.a.?      Marks:   2+ 0.5-

    Rs. 1,700    Rs. 1,740

    Rs. 1,750    Rs. 1,760    None of the above. The Correct Answer is :     Rs. 1,700    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 51. You want to sell your fridge. There are two offers, one at cash payment of Rs. 16,200 and another at a credit of Rs. 16,500 to be paid after 6 months. If money being worth 6.25% per annum simple interest, which offer is better?      Marks:   2+ 0.5-

    Both are equally good.    Rs. 16,200 in cash.    Rs 16,500 due 6 months hence.The Correct Answer is :     Rs. 16,200 in cash.    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 52. A person purchased a watch for Rs. 3,000 and sold it the same day for Rs,3,600 allowing the buyer a credit of 9 years. If the rate of interest be 7.5% p.a. he has a gain of -      Marks:   2+ 0.5-

    4.5%    5%    5.5%    6%    6.5% The Correct Answer is :     5%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 53. Goods were bought for Rs. 2,400 and sold the same day for Rs. 2,601 at credit of 9 months and still there was a gain of 2%. The rate per cent is -      Marks:   2+ 0.5-

    1    1    1    1    1 The Correct Answer is :     1    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 54. The true discount on Rs. 9,300 due after a certain period at 5% p.a. is Rs. 300. The time after which it is due, is -      Marks:   2+ 0.5-

    4 months    6 months    8 months    9 months    10 months The Correct Answer is :     8 months    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3

55. The true discount on Rs. 5,150 due 4 months hence is Rs. 150. The rate per cent is - Marks:   2+ 0.5-

    5%    6%    7%    8%    9% The Correct Answer is :     9%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 56. 12. The true discount on a bill due 10 months hence @ 6% p.a is Rs. 2,625. TheAmount of the bill is -      Marks:   2+ 0.5-

    Rs. 50,000    Rs. 55,125    Rs. 65,000    Rs, 65,125    None of the above The Correct Answer is :     Rs. 55,125    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 57. 13. Rs. 2,000 is the true discount on Rs. 26,000 due after a certain time. What will be the true discount on the same sum due after half of the former time, the rate of interest being the same?      Marks:   2+ 0.5-

    Rs. 1,000    Rs. 1,040    Rs. 1,300    Rs. 1,400    Rs. 1,540 The Correct Answer is :     Rs. 1,040    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 58. 14. If Rs. 100 be allowed as true discount on a bill of Rs. 1,100 due at the end of a Certain period, then the discount allowed on the same sum due at the end of double the time is - Marks:   2+ 0.5-

    Rs. 183.30    Rs. 200.00    Rs. 218.10    Rs. 222.00    Rs. 225.00 The Correct Answer is :     Rs. 183.30    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 59. A trader paid Rs. 700 to a lender due after 18 months at the rate of 8% p.a. simple interest. The true discount is -      Marks:   2+ 0.5-

    Rs.60    Rs.65    Rs.70

    Rs. 75    Rs. 80 The Correct Answer is :     Rs. 75    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 60. Which expression does not represent true discount?      Marks:   2+ 0.5-

    A-P    ART    PRT    ART    None of the above. The Correct Answer is :     ART    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 61. True discount is equivalent to -      Marks:   2+ 0.5-

    Interest    Principal amount    Amount    All of the above    None of the above. The Correct Answer is :     Interest    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 62. Present value is equivalent to -      Marks:   2+ 0.5-

    Interest    Principal amount    Amount    All of the above    None of the above. The Correct Answer is :     Principal amount    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 63. If the true discount on Rs. 14,500 due after 5 years is Rs. 4,500 then the rate of true discount will be -      Marks:   2+ 0.5-

    5%    6%    7%    8%t    9% The Correct Answer is :     9%    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 64. Write true of false - In case of simple interest, A * R * T True Discount = ----------------- 100 + (R * T)      Marks:   2+ 0.5-

    True    FalseThe Correct Answer is :     True    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 65. 21Banker's discount is calculated on -      Marks:   2+ 0.5-

    Present value    Sum due    True discount    All of the aboveThe Correct Answer is :     Sum due    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 66. Banker's gain is -      Marks:   2+ 0.5-

    Amount + Banker's Discount    Amount - Banker's Discount    Amount - Present Value    True Discount + Banker's Discount.    Banker's Discount - True Discount. The Correct Answer is :     Banker's Discount - True Discount.    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 67. 23. A bill of Rs. 2,000 id due 10 years hence at simple interest rate 5% p.a. Find Banker's discount.      Marks:   2+ 0.5-

    Rs. 200    Rs. 225    Rs. 300    Rs. 333.33    Rs. 1,000 The Correct Answer is :     Rs. 1,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 68. The banker's discount on a bill due 6 months hence at 6% p.a. is Rs. 370.80. The true discount is -      Marks:   2+ 0.5-

    Rs. 61.80    Rs. 123.60    Rs. 220.00    Rs. 360.00    Rs. 480.00 The Correct Answer is :     Rs. 360.00    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 69. The difference between banker's discount and true discount of a bill which is due after 6 months, is Rs. 75 at the rate of 5% p.a. Find out the-(a) True discount (b) banker's discount and (c) value of the bill.      Marks:   2+ 0.5-

    Rs. 3,075; Rs. 3,000; Rs.1,23,000    Rs. 2,075; Rs. 3,000; Rs. 2,13,000    Rs. 3,000; Rs. 3,075; Rs. 1,23,000    Rs. 2,500; Rs. 3,075; Rs. 3,12,000.    None of the above. The Correct Answer is :     Rs. 3,000; Rs. 3,075; Rs. 1,23,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 70. The true discount on a bill of Rs. 5,400 is Rs. 900. The banker's discount will      Marks:   2+ 0.5-

    Rs. 600    Rs. 1,110    Rs. 1,500    Rs. 1,800    Rs. 2,000. The Correct Answer is :     Rs. 1,800    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 71. The present worth of a certain bill due sometime hence is Rs. 1,600 and the true discount is Rs. 27. The banker's discount will      Marks:   2+ 0.5-

    Rs. 68.76    Rs. 74    Rs. 75.24    Rs. 76    Rs. 77. The Correct Answer is :     Rs. 75.24    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 72. The banker's gain on a sum due 3 years hence at 5% is Rs. 900. The banker's discount is - Marks:   2+ 0.5-

    Rs. 1,500    Rs. 6,900    Rs.7,20    Rs. 8,100    Rs. 8,200 The Correct Answer is :     Rs. 6,900    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 73. The banker's discount on a certain sum due 2 years hence is 11/10 of the true discount. The rate per cent is -      Marks:   2+ 0.5-

    5%    5.33%    6%    10%    11% The Correct Answer is :     5%    You did not answer the question. Explanation : undefined

Module : Module A Chapter : Chapter3 74. The present worth of a sum due sometime hence is Rs.5,760 and the banker's gain is Rs. 10. The true discount is -      Marks:   2+ 0.5-

    Rs. 160    Rs. 180    Rs. 240    Rs. 320    Rs. 400. The Correct Answer is :     Rs. 240    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 75. The present worth of a certain sum due sometime hence is Rs. 16,000 and the true discount is 1,600. The banker's gain is -      Marks:   2+ 0.5-

    Rs. 100    Rs. 160    Rs. 200    Rs. 240The Correct Answer is :     Rs. 160    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 76. The banker's gain of a certain sum due 2 years hence at 5% p.a. is Rs. 40. The Present worth is -      Marks:   2+ 0.5-

    Rs. 4,000    Rs. 4,400    Rs. 6,000    Rs. 8,000    Rs. 10,000 The Correct Answer is :     Rs. 4,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 77. A bill is discounted @ 5% p.a. If banker's discount be allowed, at what rate per cent must the proceeds be invested, so that nothing may be lost?      Marks:   2+ 0.5-

    4%    5%    5    6%    7%. The Correct Answer is :     5    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 78. The banker's discount on a sum of money for 1---- years is Rs. 600 and the true 2 discount on the same sum for 2 years is Rs. 750. The rate per cent is -      Marks:   2+ 0.5-

    3%    1    4%

    5%    1 The Correct Answer is :     1    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 79. The banker's gain of a certain sum of money is Rs. 72 and the true discount on the same sum for the same time and at the same rate is Rs. 60. The sum is -      Marks:   2+ 0.5-

    Rs. 280    Rs. 300    Rs. 320    Rs. 360    Rs. 600. The Correct Answer is :     Rs. 360    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 80. The banker's discount on a bill due 1 years 8 months hence is Rs. 100 and the true discount on the same sum at the same rate per cent is Rs. 90. the rate per cent is -      Marks:   2+ 0.5-

    5%    1    2    6%    2 The Correct Answer is :     2    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 81. The banker's discount on Rs. 800 at 6% is the same as the true discount for the same time and at the same rate. The time is -      Marks:   2+ 0.5-

    2 months    3 months    4 months    5 months    6 months The Correct Answer is :     3 months    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3 82. The banker's gain on a bill due 1 year hence at 5% is Re. 1 The true discount is -      Marks:   2+ 0.5-

    Rs. 5    Rs. 10    Rs. 15    Rs. 20    Rs. 25. The Correct Answer is :     Rs. 20    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter3

83. A person deposits Rs. 100 per month in a Recurring Deposit account carrying Simple interest @ 6.5% Find the amount at the end of one year.      Marks:   2+ 0.5-

    Rs. 1,200    Rs. 1,278    Rs.1,242.25    Rs. 1,300    None of the above. The Correct Answer is :     Rs.1,242.25    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 84. Mr. A borrowed Rs. 10,400. He wants to pay this in two annual equal instalmets. The rate of compound interest is 8% per annum. Find the amount of each instalment.      Marks:   2+ 0.5-

    Rs. 2,916    Rs. 5,832    Rs. 5,200    Rs. 5,000    None of the above. The Correct Answer is :     Rs. 5,832    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 85. A person wants to pay his loan of Rs. 2,522 payable in three equal annual Instalments. If the rate of compound interest is 5% p.a.; find out the amount of each instalment      Marks:   2+ 0.5-

    Rs 600    Rs. 650    Rs. 700    Rs. 750    Rs. 800. The Correct Answer is :     Rs. 800.    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 86. A lease of Rs.80,000 was taken on 1st January 2005 for 2 years. Calculate the Annuity (Annual Depreciation) if rate of increase is 10% p.a.      Marks:   2+ 0.5-

    Rs. 40,000    Rs.44,000    Rs. 46,000    Rs. 46,095.24    None of the above. The Correct Answer is :     Rs. 46,095.24    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 87. A lease was taken for 3 years for Rs. 6,620 on 2st January, 2005. Depreciation Fund method is used for depreciation. Calculate Annuity (Annual Depreciation) if annual rate of depreciation is 10% p.a.      Marks:   2+ 0.5-

    Rs. 1,900    Rs. 2,000    Rs. 2,100

    Rs. 2,200    Rs. 2,300 The Correct Answer is :     Rs. 2,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 88. Shradha borrowed some money from a money-lender. She returns this in two Annual equal instalments of Rs. 5,832 each. Find the sum, if the rate of compound interest is 8% p.a. Marks:   2+ 0.5-

    Rs. 5,832    Rs. 5,200    Rs. 11,664    Rs. 10,400    None of the above. The Correct Answer is :     Rs. 10,400    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 89. A sum of money was borrowed the paid back in 2 annual instalments of Rs. 1,864 and Rs1,740, respectively. If the rate of compound interest was 16% p.a. find out the sum borrowed.      Marks:   2+ 0.5-

    Rs.3,604    Rs.3,202    Rs. 2,900    Rs.2,700    Rs.2,000 The Correct Answer is :     Rs. 2,900    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 90. Calculate the amount of an annuity of Rs. 12,000 fir 15 years. Rate of interest is 1 4 --- p.a. 2      Marks:   2+ 0.5-

    Rs. 2,49,912    Rs. 1,24,956    Rs. 1,00,000    Rs. 1,12,000    Rs. 1,60,000 The Correct Answer is :     Rs. 2,49,912    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 91. Calculate the present value of an annuity of Rs. 12,000 for 15 years. The rate 1of compound interest is 4 - p.a. 2      Marks:   2+ 0.5-

    Rs. 1,00,000    Rs. 1,20,000    Rs. 1,28,880    Rs. 2,57,760    Rs. 64,440. The Correct Answer is :     Rs. 1,28,880    You did not answer the question. Explanation : undefined

Module : Module A Chapter : Chapter4 92. A woman retire at the age of 60 years and her employer gives her a pension of Rs. 12,000 a year paid on half-yearly instalments for the rest of her life. Supposing her expectation of life to be 13 years more and that interest is @ 4% p.a. payable half-yearly, what single sum is equivalent to this pension?      Marks:   2+ 0.5-

    Rs. 3,00,000    Rs. 2,50,000    Rs. 2,41,500    Rs. 1,20,750    None of the above. The Correct Answer is :     Rs. 1,20,750    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 93. A man deposits Rs. 500 every six months into a bank which allows him 1 interest payable quarterly at the rate of 2 ---% p.a. Find the sum which will 2 stand to his credit and the end of 10 years from his first payment.      Marks:   2+ 0.5-

    Rs. 10,000 approx    Rs. 11,000 approx.    Rs. 12,000 approx.    Rs. 13,000 approx.    Rs. 14,000 approx. The Correct Answer is :     Rs. 11,000 approx.    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 94. A farmer could not pay annual instalments worth Rs. 800 each for four years. If a simple rate of interest is calculated at the rate of 5% p.a., how much has he to pay now?      Marks:   2+ 0.5-

    Rs. 3,200    Rs. 3,440    Rs. 3,640    Rs. 3,840    Rs. 4,040 The Correct Answer is :     Rs. 3,440    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 95. A person desires to create a endowment fund to provide for a prize of Rs.3,000 every pear. If the fund can be invested at 10% per annum compound interest, find the amount of the endowment.      Marks:   2+ 0.5-

    Rs. 3,000    Rs. 6,000    Rs. 15,000    Rs. 20,000    Rs. 30,000 The Correct Answer is :     Rs. 30,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 96. My daughter is 5 years old. In order to provide a sum Rs. 1,00,000 when she Completes 21 years, I have decided to invest a fixed sum of money every year beginning immediately and

the last payment will be when she completes 21 years. Find the fixed sum of money assuming the money earns compound interest at the rate of 8%p.a.      Marks:   2+ 0.5-

    Rs 1,483 approx.    Rs.1,400 approx.    Rs.1,500 approx.    Rs. 2,966 approx.    Rs. 3,500 approx. The Correct Answer is :     Rs. 2,966 approx.    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 97. The rate of interest in a bank is 5% compounded annually. What should I invest per year to get Rs. 6,00,00 at the end of 20 years?      Marks:   2+ 0.5-

    Rs. 8,000 approx.    Rs. 9,073 approx.    Rs. 18,146 approx    Rs. 36,292 approx    Rs. 40,000 approx. The Correct Answer is :     Rs. 18,146 approx    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 98. A firm has leased a leasehold property for 3 years on 1st January, 2005 for Rs.1,00,000 and his decided to replace it by creating a depreciation fund. The rate of compound interest on investments is 55 p.a. Calculate the annual depreciation (i.e. the amount to be invested). Marks:   2+ 0.5-

    Between Rs. 30,000 and Rs. 31,000    Between Rs. 31,000 and Rs. 32,000    Between Rs. 32,000 and Rs. 33,000    Between Rs. 33,000 and Rs. 34,000    Between Rs. 34,000 and Rs. 35,000 The Correct Answer is :     Between Rs. 31,000 and Rs. 32,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 99. A machine costs Rs. 5,00,000 and its effective life estimated to be 10 years Its scrap value is Rs. 50,000. What amount should be retained out of profits at the and of each year to accumulate at 5% p.a. with compound interest for 10 years to replace the machine by another one costing Rs. 5,00,000?      Marks:   2+ 0.5-

    Rs. 33,771    Rs. 34,771    Rs. 35,771    Rs. 36,771    Rs. 37,771 The Correct Answer is :     Rs. 35,771    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 100. what annual instalment will discharge a debt of Rs. 92,400 due in years at 5% simple interest?      Marks:   2+ 0.5-

    Rs. 20,000    Rs. 21,000

    Rs. 22,000    Rs. 23,000    None of the above The Correct Answer is :     Rs. 21,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 101. A certain sum @4% simple interest per annum becomes Rs.31,360 in 3 years.What will be the amount of instalment per year to repay the loan in 3 years?      Marks:   2+ 0.5-

    Rs.10,051 approx.    Rs.11,000 approx.    Rs.11,120 approx.    Rs.11,215 approx.    Rs.11,300 approx. The Correct Answer is :     Rs.10,051 approx.    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 102. A person borrowed Rs. 6,560 at 5% compound interest to repay in two equal Annual instalments. Find the amount of each instalment.      Marks:   2+ 0.5-

    Rs. 2,835    Rs., 3,285    Rs, 3,320    Rs. 3,528    Rs. 5,328. The Correct Answer is :     Rs. 3,528    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 103. Neeta, Anita and Sunita are equal partners in a firm. They have agreed that in case of death of anyone of them, an annuity in 10 annual equal instalments will be paid to he husband carrying compound interest @ 10% p.a. Calculate the annuity to be paid to Sunitas husband after her death if her capital is Rs. 6,00,000.      Marks:   2+ 0.5-

    Rs. 79,406 approx    Rs. 97,640 approx    Rs. 64,697 approx    Rs. 97,460 approx    Rs. 60,497 approx. The Correct Answer is :     Rs. 97,640 approx    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 104. Mr. A purchased a machinery from Mr. B on hire-purchase system, the cash price of which is Rs. 1,00,000. Payment is to be made in 3 equal annual instalments including interest on the unpaid balance @10% per annum. Each instalment is to be paid at the end of each year. Calculate the amount of annual instalment.      Marks:   2+ 0.5-

    Rs.33,333.33    Rs. 45,000    Rs. 66,666.67    Rs. 40,211.50    None of the above. The Correct Answer is :     Rs. 40,211.50

    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 105. A Washing machine worth Rs. 10,000 is purchased on instalment payment system under which 10 equal annual instalments including interest at 10% p.a. are payable. Find the amount of annual instalment.      Marks:   2+ 0.5-

    Rs. 1,627.43    Rs. 1,000.00    Rs. 1,333.00    Rs. 1,225.00    Rs. 1,250.00 The Correct Answer is :     Rs. 1,627.43    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 106. A shopkeeper advertises the case price of a colour. T.V. as Rs. 8,500. The same T.V. can also be purchased by paying Rs. 1,600 immediately and the balance in equal 8 instalments monthly of Rs. 900 each. Find the rate of interest.      Marks:   2+ 0.5-

    5% p.a.    6%p.a.    8%p.a.    10%p.a.    12%p.a. The Correct Answer is :     12%p.a.    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 107. 25. A company has issued debentures for Rs. 1,000,00 on 1st January 2005 which are redeemable on 31st December, 2008. The company has created Debenture Redemption fund for the redemption of debentures at the end of the year. 10% annual interest will be received on the investment. Calculate the annuity amount.      Marks:   2+ 0.5-

    Rs. 17,547 approx.    Rs. 18,547 approx.    Rs. 21,547 approx.    Rs. 25,000 approx.    Rs. 25,200 approx. The Correct Answer is :     Rs. 21,547 approx.    You did not answer the question. Explanation : undefined Module : Module A Chapter : Chapter4 108. The cost price of a Rs. 100 bond at a discount of 5%, when brokerage is --- %, will be - Marks:   2+ 0.5-

    Rs. 95    Rs. 100    Rs. 95 + --- = Rs. 95.25    Rs. 95 - -- = Rs. 94.75    Rs. None of the above. 1 The Correct Answer is :     Rs. 95 + --- = Rs. 95.25    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined

109. The income derived from a 6 --- % bond at Rs. 95 is - 2      Marks:   2+ 0.5-

    Rs. 1.50    Rs. 6.30    Rs. 6.50    Rs. 11.50    None of the above. The Correct Answer is :     Rs. 6.50    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 110. 1 1 1 3. The case realized by selling a 5 --- % stock at 106 ---, brokerage being --- % is 2 4 4      Marks:   2+ 0.5-

    Rs, 105.25    Rs. 105.75    Rs. 106.00    Rs. 106.25    None of the above. The Correct Answer is :     Rs. 106.00    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 111. How much stock at Rs. 85 can be purchased for Rs. 1,360?      Marks:   2+ 0.5-

    Rs. 1,360 stock    Rs. 1,400 stock    Rs. 1,560 stock    Rs. 1,600 stock    Rs. 1,660 stock. The Correct Answer is :     Rs. 1,600 stock    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 112. The income from a 6% stock of Rs 18,360 is Rs. 720. Find the price stock of Rs. 100 Marks:   2+ 0.5-

    Rs. 125    Rs. 130    Rs. 135    Rs. 150    Rs. 153. The Correct Answer is :     Rs. 153.    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 113. What income will be derived from Rs. 75,000 of 4 --- stock? 2      Marks:   2+ 0.5-

    Rs. 3,357    Rs. 3,537    Rs. 3,573    Rs. 3,750    Rs. 3,375. The Correct Answer is :     Rs. 3,375.    You did not answer the question. Explanation : undefined

Module : Module A Chapter : undefined 114. What income can be be derived from an investment of Rs. 11,628 in the 6 --- % stock at Rs. 153?      Marks:   2+ 0.5-

    Rs. 722    Rs. 756    Rs. 345    Rs. 543    Rs. None of the above. The Correct Answer is :     Rs. 722    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 115. By investing in 6% stock at 96, an income of Rs. 100 will be derived by making An investment of -      Marks:   2+ 0.5-

    Rs. 1,504    Rs. 1,600    Rs. 1,667    Rs. 3,200    Rs. 5,760. The Correct Answer is :     Rs. 1,600    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 116. An investment of Rs. 12,000 in a stock quoted at 120 produces an income of Rs. 780. Find 780. Find the rate of interest.      Marks:   2+ 0.5-

    6.5%    7.8%    8.0%    8.3%    9% The Correct Answer is :     7.8%    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 117. To produce an annual income of Rs. 1,000 in a 4% stock at 90, the amount of stock needed is -      Marks:   2+ 0.5-

    Rs.22,500    Rs.25,000    Rs.27,500    Rs 36,000    Rs.40,000 The Correct Answer is :     Rs.25,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 118. A man invests in a 4.5% stock at 96. The interest obtained by him is -      Marks:   2+ 0.5-

    0.5%    1%    4%

    4.5%    4.69% The Correct Answer is :     4.69%    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 119. By investing Rs. 3,300 in a 5.5% stock, a man earns Rs. 231. The stock is then quoted at - Marks:   2+ 0.5-

    Rs. 78    4    Rs. 93    3    Rs. 99 The Correct Answer is :     4    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 120. A invested some money in 4% stock at 96. B wants to invest in equally good 5% stock. B must buy a stock worth -      Marks:   2+ 0.5-

    rs. 77    Rs. 80    Rs. 100    Rs. 120    Rs. 125 The Correct Answer is :     Rs. 120    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 121. Shradha wants to purchase a 6% stock which must yield 5% on her capita. AtWhat price must she buy the stock?      Marks:   2+ 0.5-

    Rs. 100    Rs. 105    Rs. 110    Rs. 115    Rs. 120. The Correct Answer is :     Rs. 120.    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 122. Which is better investment - 3% stock at 81 or 4% stock at 135?      Marks:   2+ 0.5-

    3% stock at 81    4% stock at 135    Both ate equally goodThe Correct Answer is :     4% stock at 135    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 123. Which is better stock - 5% at 286 or 3.5% at 186?      Marks:   2+ 0.5-

    5% at 286

    3.5% at 186    Both are equally good.The Correct Answer is :     3.5% at 186    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 124. 17. Which is better investment - 4% stock at par with an income-tax at 5% or 4.5% stock at 110 free from income-tax.?      Marks:   2+ 0.5-

    4% stock at par    4.5% stock at 110    Both are equally good.The Correct Answer is :     4.5% stock at 110    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 125. By investing in 3.75% stock at 96, Shubhra earns Rs. 1,000. The investment made is. Marks:   2+ 0.5-

    Rs. 9,600    Rs. 10,000    Rs. 25,600    Rs. 30,000    Rs. 48,000 The Correct Answer is :     Rs. 25,600    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 126. A man purchased 9,500 shares at Rs.12 per share in the open market; the face Value of shares being Rs. 10. The company declared a dividend of 8%. What amount of dividend will he receive?      Marks:   2+ 0.5-

    Rs. 7,600    Rs. 9,120    Rs.10,000    Rs. 9,500    None of the above. The Correct Answer is :     Rs. 7,600    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 127. A person purchased 40 shares of Rs. 50 each at a discount of 5%, the rate of dividend being 4.75%. The rate of income on invested amount is -      Marks:   2+ 0.5-

    3.25%    4.25%    4.50%    4.75%    None of the above. The Correct Answer is :     None of the above.    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 128. A man wants to buy Rs. 20 shares, the dividend being 9%. He wants to have an income of 12% on his investment. At what market price should he purchase each share.      Marks:   2+ 0.5-

    Rs. 12    Rs.15    Rs. 18    Rs. 20    Rs.21. The Correct Answer is :     Rs.15    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 129. A man invested Rs. 3,880 in a stock at 97 to obtain an income of Rs. 220. The rate of dividend on stock is -      Marks:   2+ 0.5-

    25%    22.5%    15%    12%    5.5% The Correct Answer is :     5.5%    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 130. Maya invested Rs. 8,910 in Rs. 10 shares quoted at Rs. 8.25. If the rate of Dividend is 6%, her annual income is -      Marks:   2+ 0.5-

    Rs. 208    Rs. 534    Rs. 648    Rs. 656    Rs. 700. The Correct Answer is :     Rs. 648    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 131. A woman invests some money partly in 4% stock at 120 an partly in 3% stock at 96. To get equal dividends from both, she must invest the money in the ratio-      Marks:   2+ 0.5-

    1:2    2:3    3:4    4:5    15:16. The Correct Answer is :     15:16.    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 132. Cash flow each year is equal to -      Marks:   2+ 0.5-

    Accounting profit only    Accounting profit minus tax    Accounting profit minus tax plus depreciation    All of the above    None of the above. The Correct Answer is :     Accounting profit minus tax plus depreciation    You did not answer the question.

Explanation : undefined Module : Module A Chapter : undefined 133. Capital budgeting involves      Marks:   2+ 0.5-

    Selection of projects for implementation    Estimation of cost benefit of projects    Generation of investment ideas    All of the above    None of the above. The Correct Answer is :     All of the above    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 134. Capital budgeting involves      Marks:   2+ 0.5-

    Selection of projects for implementation    Estimation of cost benefit of projects    Generation of investment ideas    All of the above    None of the above. The Correct Answer is :     All of the above    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 135. Capital expenditure decisions involve those generating benefits for a period -      Marks:   2+ 0.5-

    Exceeding one year    Exceeding two years    Exceeding five years    Exceeding ten years    None of the above. The Correct Answer is :     Exceeding one year    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 136. Payback period is a applicable      Marks:   2+ 0.5-

    In evaluating a single project    In evaluating mutually exclusive projects    In evaluating term loan proposals    In evaluating single project or mutually exclusive projects    None of the above. The Correct Answer is :     In evaluating single project or mutually exclusive projects    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 137. While evaluating capital investment proposals, the time value of money is Considered in case of -      Marks:   2+ 0.5-

    Payback period method    Discounted cash flow method    Accounting rate of return method    All of the above    None of the above

The Correct Answer is :     Discounted cash flow method    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 138. Depreciation is included in costs in case of -      Marks:   2+ 0.5-

    Payback period method    Present value index method    Accounting rate of return method    All of the above.    None of the above. The Correct Answer is :     Accounting rate of return method    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 139. The return after the pay-off period is not considered in case of -      Marks:   2+ 0.5-

    Payback method    Internal rate of return method    Present value index method    All of the above    None of the above The Correct Answer is :     Payback method    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 140. The cash inflows on account o operations are presumed to have been re-invested at the cut-off rate in case of -      Marks:   2+ 0.5-

    Payback method    Accounting rate of return method    Discounted cash flow method    All of the above.    None of the above. The Correct Answer is :     Discounted cash flow method    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 141. Time value of money is considered under -      Marks:   2+ 0.5-

    Payback method    Accounting rate of return method    Internal rate of return method    All of the above    None of the above. The Correct Answer is :     Internal rate of return method    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 142. The method of appraisal based on accounting projects rather than cash flows is - Marks:   2+ 0.5-

    Payback period    Average rate of return    Discounted payback period

    Benefit-cost-ratio.    None of the above The Correct Answer is :     Average rate of return    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 143. Ranking of projects under NPV and IRR may differ if -      Marks:   2+ 0.5-

    the period of life of the projects is different    the timing of the cash flows is different    either (i) or (ii) is present    both (i) and (ii) are present    None of the above. The Correct Answer is :     either (i) or (ii) is present    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 144. Internal rate of return is the rate at which -      Marks:   2+ 0.5-

    the net present value is nil    the net present value is positive    the discount rate equals the firm's net profit rate    the income generated by the project meets the cost of the funds    None of the above The Correct Answer is :     the net present value is nil    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 145. Which one of the following statement is true?      Marks:   2+ 0.5-

    The working capital released on the termination of a project is not cash    Depreciation on asset is included in cost in computing discounted cash    Increase in working capital due to investment proposal is included in    Cost of investment in the new plant is the cost of new plant plus the    Between two mutually exclusive projects, that one should be preferred The Correct Answer is :     Increase in working capital due to investment proposal is included in    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 146. Which one of the following statement is true?      Marks:   2+ 0.5-

    The internal rate of return and net present value are synonymous terms.    Cash flows from a project can be estimated accurately.    The inflation and deflation factors need not be taken into account while estimating future cash inflows since it is difficult to predict future price changes.    Cash flows from a project can be worked out only on the basics of certain probabilities    No additional working capital is required in case of an expansion of an existing project. The Correct Answer is :     Cash flows from a project can be worked out only on the basics of certain probabilities    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 147. Which one of the following statements is false?      Marks:   2+ 0.5-

    Discounted cash flow technique takes into account the time value of money.    Depreciation is considered while calculating the return on a project according to the Accounting Rate of Return Method.    Internal Rate of Return determines the maximum rate of interest that a firm can afford to pay on the borrowings for the particular project.    Tax concessions have no role to play in estimating the cash flows from a project    All of the above. The Correct Answer is :     Tax concessions have no role to play in estimating the cash flows from a project    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 148. Which one of the following statements is false?      Marks:   2+ 0.5-

    NPV and profitability index always yield identical results.    Profitability index is also known as benefit-cost ratio.    Payback method disregards cash flows after the payback period    Mathematical techniques and available for dealing with risk and uncertainty factors involved in determining future cash inflows from a project.    Depreciation is not a source of cash inflow. The Correct Answer is :     NPV and profitability index always yield identical results.    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 149. Profitability Index is also known as-      Marks:   2+ 0.5-

    Benefit-cost-ratio    Desirability fact or    Both (i) and (ii)    All of the above    None of the above. The Correct Answer is :     Both (i) and (ii)    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 150. A machine costs Rs. 5,00,000 and would fetch Rs. 2,50,000 in the first year; Rs.1,50,000 in second year and Rs. 1,00,000 in third year. Payback period would be-      Marks:   2+ 0.5-

    1 year    2 years    1    3 years    1 The Correct Answer is :     3 years    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 151. The economic life of a plant is 8 years and its cost is Rs. 10,00,000. Annual savings (cash inflow) is Rs.2,00,000. Post payback profit would be -      Marks:   2+ 0.5-

    Rs. 2,00,000    Rs. 3,00,000    Rs.4,00,000    Rs. 6,00,000    Rs. 8,00,000 The Correct Answer is :     Rs. 6,00,000

    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 152. The total flows of a plant after tax but before depreciation for 5 years are Rs. 45,800 and total depreciation amounts to Rs.32,000.Initial investment in the plant is Rs. 30,000. The average rate of return would be -      Marks:   2+ 0.5-

    6.3%    9.2%    18.4%    20%    22% The Correct Answer is :     18.4%    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 153. Which one of the following is a 'false' statement?      Marks:   2+ 0.5-

    Depreciation is a part of the operating cost.    Depreciation is provided to know the correct profit    Depreciation is a fall in the value of fixed assets.    Fall in the market price is the main cause of depreciation.    Depreciation is shown in debit side of Profit & Loss a/c. The Correct Answer is :     Fall in the market price is the main cause of depreciation.    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 154. Depreciation arises because of -      Marks:   2+ 0.5-

    Fall in the value of money.    Fall in the market value of a fixed asset.    Fall in the utility of a fixed asset.    Fall in the value of a fixed asset owing to wear and tear    None of the above. The Correct Answer is :     Fall in the value of a fixed asset owing to wear and tear    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 155. The main objective of providing depreciation is-      Marks:   2+ 0.5-

    to reduce tax burden    To calculate true profits    To show true financial position    To provide funds of replacement of fixed assets.    All of the above. The Correct Answer is :     All of the above.    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 156. Depreciation is the process of -      Marks:   2+ 0.5-

    Valuation of a fixed asset    Apportionment of the cost of the fixed asset over its useful life    Maintenance of asset in a state of efficiency

    All of the above    None of the above. The Correct Answer is :     Apportionment of the cost of the fixed asset over its useful life    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 157. Under the straight line method of depreciation, amount of depreciation -      Marks:   2+ 0.5-

    increases every year    decreases every year    is constant every year    increases for some years    None of the above. The Correct Answer is :     is constant every year    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 158. Under the diminishing balance method, depreciation is calculated on -      Marks:   2+ 0.5-

    the original cost.    The written down value    The scrap value    The market value    None of the above. The Correct Answer is :     The written down value    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 159. Under the diminishing balance method of depreciation-      Marks:   2+ 0.5-

    The amount on which depreciation is calculated, is reduced from year to year    the rate % declines from year to year    the rate % as well as amount reduces every year    All of the above.    None of the above The Correct Answer is :     The amount on which depreciation is calculated, is reduced from year to year    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 160. The amount of depreciation charged on machinery will be credited to -      Marks:   2+ 0.5-

    Machinery a/c    Depreciation a/c    Cash a/c    P & L a/c    None of the above. The Correct Answer is :     Machinery a/c    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 161. Machine Hour Rate Method of providing depreciation is useful when -      Marks:   2+ 0.5-

    output can be effectively measured

    utility of the machine can be directly related to its productive use    use of the machine can be measured in terms of time    All of the above    None of the above The Correct Answer is :     use of the machine can be measured in terms of time    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 162. In case of Annuity Method of depreciation -      Marks:   2+ 0.5-

    increases every year    decreases every year    remains constant every year    All of the above    None of the above The Correct Answer is :     remains constant every year    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 163. For providing depreciation on leasehold property, the appropriate method of depreciation is -      Marks:   2+ 0.5-

    Fixed Instalment Method    Written Down Value Method    Revaluation Method    Replacement Method    None of the above. The Correct Answer is :     Fixed Instalment Method    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 164. Depletion Method of depreciation is used in -      Marks:   2+ 0.5-

    Machinery, Building, Furniture, etc.    Cattle    Loose tools, etc.    Mines, Quarries, etc.    None of the above. The Correct Answer is :     Mines, Quarries, etc.    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 165. Depreciation is charged by allocating depreciable cost in proportion of the annual output to the probable life-time output under the -      Marks:   2+ 0.5-

    Working Hours Method    Production Units Method    Valuation Method    All of the above    None of the above The Correct Answer is :     Production Units Method    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined

166. 14. A machinery worth Rs. One lakh with expected life of 10 years is purchased. The depreciation on it is charged equally every year. The method of depreciation is -      Marks:   2+ 0.5-

    Straight Line Method    Written Down Value Method    Sinking Fund Method    Annuity Method    Insurance Policy Method The Correct Answer is :     Straight Line Method    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 167. The interest lost on the acquisition of an asset is taken into account in calculating the amount of depreciation in -      Marks:   2+ 0.5-

    Straight Line Method    Revaluation Method    Diminishing Balance Method    Depletion Method    Annuity Method The Correct Answer is :     Diminishing Balance Method    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 168. On a machinery, depreciation @ 10% is Rs. 30,000 for the first year, Rs. 27,000 for the second year. What will be amount of depreciation for the third year?      Marks:   2+ 0.5-

    Rs. 30,000    Rs. 24,300    Rs. 20,400    Rs. 22,600    Rs. 27,000. The Correct Answer is :     Rs. 24,300    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 169. Mr. A purchased a second hand machinery for Rs. 80,000 on 1st April 2001 and spent Rs. 35,000 on its over-hauling and installation. Depreciation is charged @ 10% on original cost. On 30th June 2004, the machinery was sold off for Rs. 65,000. What is the amount of loss to the written of, presuming the accounting ear ends on 31st March every year?      Marks:   2+ 0.5-

    Rs. 15,500    Rs. 12,625    Rs. 13,095    Rs. 13,505    None of the above The Correct Answer is :     Rs. 12,625    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 170. Mr. X purchased a machine worth Rs. 2,00,000 on 1st January 2002. The machine is depreciated at 10% p.a.; on original cost. One 1st July 2004, the machinery was sold for Rs. 1,20,000. What is the amount of loss to be written off, assuming that the books are closed on 31st December.      Marks:   2+ 0.5-

    Rs. 25,000

    Rs. 30,000    Rs. 35,000    Rs. 40,000    Rs. 45,000 The Correct Answer is :     Rs. 30,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 171. A company purchased a car for Rs. 2,00,000 on 1st January 2003. Depreciation is charged at 20% p.a. under written down value method. The car was sold on 1st July 2004 for Rs. 1,60,000. calculated the amount Profit/loss on the sale of the car.      Marks:   2+ 0.5-

    (-) Rs. 10,000    (-) Rs. 12,000    Rs. 14,000    Rs. 16,000    Rs. 18,000 The Correct Answer is :     Rs. 16,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 172. On 1st January 2002, Mr. X purchased a plant costing Rs. 82,000 and spent Rs. 8,000 in its erection. The estimated effective life of the plant is 10 years, its scrap value being Rs. 10,000. What will be the depreciation value at the end of the 3rd year, under straight line method? Accounts are closed on 31st December each year;      Marks:   2+ 0.5-

    Rs. 81,000    Rs. 72,000    Rs. 56,000    Rs. 70,000    Rs. 60,000 The Correct Answer is :     Rs. 56,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 173. A firm purchased a machine for Rs. 5,00,000 on 1st April 2004, Its estimated effective life is 5 years at the end of which it will have a scrap value of Rs. 1,40,000. What will be the amount of depreciation each year if charged under straight line method/      Marks:   2+ 0.5-

    Rs. 60000    Rs. 72,000    Rs. 80,000    Rs. 1,00,000    Rs. 1,20,000. The Correct Answer is :     Rs. 72,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 174. On 1st January 2002, a firm purchased machinery worth Rs., 1 lakh, and on 1st July 2004, it buys additional machinery worth Rs. 20,000 and spends Rs. 2,000 and spends Rs. 2,000 on its erection. Annual depreciation is 10% on straight line method. What will be written down value at the end of 5th year?      Marks:   2+ 0.5-

    Rs. 66,000    Rs. 66,500    Rs. 90,000

    Rs. 50,000    Rs. 1,00,000 The Correct Answer is :     Rs. 66,500    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 175. Mr. X Purchased a machinery for Rs. 1 lakh, its effective life being 5 years and scrap value at the end of 5 years Rs. 10,000. The machinery is sold at the end of 3rd year for Rs. 45,000. If depreciation is charged on straight line method, what is the profit/loss on this sale?      Marks:   2+ 0.5-

    Profit Rs. 36,000    Profit Rs. 18,000    Profit Rs. 1,000    Loss Rs. 1,000    Loss Rs. 18,000 The Correct Answer is :     Loss Rs. 1,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 176. A firm purchased a machinery worth Rs. 2,05,000 and spent Rs. 20,000 on its installation. Its effective useful life is estimated at 10 years and scrap value Rs. 25,000. What will be the depreciated value at the end of 3rd year under straight line method?      Marks:   2+ 0.5-

    Rs. 2,25,000    Rs. 60,000    Rs. 1,65,000    Rs. 45,000    Rs. 55,000 The Correct Answer is :     Rs. 1,65,000    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 177. ............... is maintained for known liabilities.      Marks:   2+ 0.5-

    Provision    Reserve    Reserve Fund    Capital Reserve    All of the above. The Correct Answer is :     Provision    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 178. Provision is also known as -      Marks:   2+ 0.5-

    Capital Reserve    Contingency Reserve    Reserve Fund    Specific Reserv    None of the above. The Correct Answer is :     Specific Reserv    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined

179. ..................... is created for unknown liability.      Marks:   2+ 0.5-

    Provision for depreciation    Provision for bad and doubtful debts.    Provision for taxation    General Reserve    None of the above The Correct Answer is :     General Reserve    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 180. Profit or Loss on Depreciation fund Investment is transferred to -      Marks:   2+ 0.5-

    Profit & Loss a/c    Fixed Asset a/c    Depreciation Fund a/c    General Reserve    Capital Reserve. The Correct Answer is :     Depreciation Fund a/c    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 181. The profit on depreciation policy is transferred to -      Marks:   2+ 0.5-

    Profit & Loss a/c    Fixed Asset a/c    Insurance Policy a/c    Depreciation Reserve    Capital Reserve. The Correct Answer is :     Depreciation Reserve    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 182. Depreciable assets are the assets which -      Marks:   2+ 0.5-

    Have a limited useful life    are held by the enterprise for use in the production or supply of goods an services    are expected to be used during more than one accounting period    All of the above    None of the above. The Correct Answer is :     All of the above    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 183. The appropriate method of depreciation in the case of livestock is -      Marks:   2+ 0.5-

    Straight Line Method    Diminishing Balance Method    Depletion Method    Appraisal Method    Retirement Method The Correct Answer is :     Appraisal Method    You did not answer the question. Explanation : undefined

Module : Module A Chapter : undefined 184. Which of the following factors has a bearing on the useful life a fixed asset?      Marks:   2+ 0.5-

    Physical wear and tear    Obsolescence    Legal or other limits on the use of the asset    (i) & (ii)    All of the above. The Correct Answer is :     All of the above.    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 185. The economic factors causing depreciation, are -      Marks:   2+ 0.5-

    depletion    wear and tear    effluxion of time    obsolescence and inadequacy    All of the above. The Correct Answer is :     obsolescence and inadequacy    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 186. Which one of the following assets does not require provision for depreciation      Marks:   2+ 0.5-

    Land    Leased assets    Livestock    Loose tools    All of the above. The Correct Answer is :     Land    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 187. Accountants prefer to use the historic cost rather then any other cost for computing depreciation, because of the accounting convention of -      Marks:   2+ 0.5-

    Consistency    Conservatism    Cost    Disclosure    Matching. The Correct Answer is :     Cost    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 188. accelerated methods of depreciation are favoured because of -      Marks:   2+ 0.5-

    the provisions in the Companies Act    considerable, saving in taxes    the possibility of raising more resources for replacement of assets    the fact that assets are more productive in earlier years rather than in the later years.    None of the above The Correct Answer is :     the fact that assets are more productive in earlier years rather than in the later years.

    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined 189. Which one of the following statements is 'true'      Marks:   2+ 0.5-

    the term 'depreciation', 'depletion' and 'amortization' refer to one and the same thing.    No method of depreciation accurately calculates the charge to be made in respect of the asset.    Depreciation base refers to the amount on which the rate of depreciation is applied for computing the amount of depreciation.    The total amount of depreciation to be allocated over the useful like of the asset is the difference between the total acquisition cost and the replacement value.    The total amount of depreciation to be written off over the life of an asset is equal to the cost of the asset plus its depreciation. The Correct Answer is :     No method of depreciation accurately calculates the charge to be made in respect of the asset.    You did not answer the question. Explanation : undefined Module : Module A Chapter : undefined =================190. Accounting is the language of      Marks:   2+ 0.5-

    Business    Statistics    Investment    Industry    None of the above The Correct Answer is :     Business    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 191. The word book keeping denotes      Marks:   2+ 0.5-

    Art of recording business dealings in books    Keeping of books of account    Maintaining stock of books for sale purchase    All of the above    None of the above The Correct Answer is :     Art of recording business dealings in books    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 192. The objective of book Keeping is      Marks:   2+ 0.5-

    To know the profit and loss in the business    To know the assets and liabilities in the business    To know the deptors and creditors in the business    All of the above    None of the above The Correct Answer is :     All of the above    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1

193. The prime function of Accounting is to      Marks:   2+ 0.5-

    Record business transactions    Record qualities of the business man    Record and classify business transaction    Provide the informational basis for action    None of the apve The Correct Answer is :     Record and classify business transaction    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 194. Kautilya wrote book on      Marks:   2+ 0.5-

    Accounting    Economics    Statistics    Palmistry    None of the above The Correct Answer is :     Economics    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 195. The modern concept of book-keeping and accounting was given by      Marks:   2+ 0.5-

    Bhaskaracharya    Luca De Bargo Pacioli    Shukla& Grewal    Pickle    None of the books The Correct Answer is :     Luca De Bargo Pacioli    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 196. Management Accounting provides services to the management in performing      Marks:   2+ 0.5-

    Co _ Ordinating management funtions    Controlling funtions    All management function    Communication functions    None of the above The Correct Answer is :     All management function    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 197. In India accounting provides services to the management in performing      Marks:   2+ 0.5-

    Government of India    Board of direct Taxes    Accounting Association    Accounting standards Board    All of the above The Correct Answer is :     Accounting standards Board    You did not answer the question. Explanation : undefined

Module : Module B Chapter : Chapter1 198. Accounting standard 6 deals with      Marks:   2+ 0.5-

    Constucture cortract    Revenue Recorgnition    Fixed Assets    Depreication    Government grant The Correct Answer is :     Depreication    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 199. The Accounting standatd for dislosure of Accounting policeis is      Marks:   2+ 0.5-

    No.1    No.2    No.3    No.4    No.5 The Correct Answer is :     No.1    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 200. Compliance with accounting standards is the duty of the      Marks:   2+ 0.5-

    Employees    Board of directors    Accountant    Cashier    Auditor The Correct Answer is :     Auditor    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 201. The abbroviation GAAB stands for      Marks:   2+ 0.5-

    Generally Accepted Accountiong Policies    Generally Accepted Accountiong practice    Generally Accepted Accountiong principles    Generally Accected and audio procedures    None of the above The Correct Answer is :     Generally Accepted Accountiong principles    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 202. Prior Period income should be      Marks:   2+ 0.5-

    inclusive determination of current profits    excluded for determination of current profits    shown in P&Lo a/c ofthe current year    (i)of (ii) above    (i) ( iiiO above The Correct Answer is :     (i) ( iiiO above    You did not answer the question.

Explanation : undefined Module : Module B Chapter : Chapter1 203. Accounting principles are generally based on      Marks:   2+ 0.5-

    Subjectivity    Practicability    Convenience in recording    Imagination    None of the above The Correct Answer is :     Practicability    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 204. The sustem of recording business transactuibs based on dual aspect concept is called Marks:   2+ 0.5-

    Single entry sustem    Double entry system    Double accout system    All of the abvoe    none of the abvoe The Correct Answer is :     Double entry system    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 205. The concvention of conservatio is applicatble      Marks:   2+ 0.5-

    In provioding for depreciation    In providing for discount on debtors    In providing for discount on deptors    In making provision for bad and doubtful depts    In provididng for taxation The Correct Answer is :     In making provision for bad and doubtful depts    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 206. Under the money measurement concept the following will be recorded in the books of account of the busuiness -      Marks:   2+ 0.5-

    Vawlue of furniture    Quality of companys goods    Bad heaslth of managing director    All of the above    None of the abvoe The Correct Answer is :     Vawlue of furniture    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 207. Compliance of accounting standartds is the duty of      Marks:   2+ 0.5-

    Board of Directors    Auditor    Company secretary    Central Government    None of the abvoe

The Correct Answer is :     Auditor    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 208. the concept of conservations when applied to Balance sheet results in      Marks:   2+ 0.5-

    Understatement of assets    Overstandment of liabilities    Underestatement of liability    Overstatement of assets    Overstatement of cpital The Correct Answer is :     Understatement of assets    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 209. The practie of appendintg neptes regarding contingent liabilitaeis in accounting statements is in pursuance to      Marks:   2+ 0.5-

    Convention of disclosure    Convention of conservatism    Concept of money measurement    Concept of mone    Concern of accouting period The Correct Answer is :     Convention of disclosure    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 210. Recoding business transactions on the basis of documents is to opserve the accountion assumption of      Marks:   2+ 0.5-

    Accouting cquity    Going concern    Money ,measurement    Verifiable pbjective    Accounting period The Correct Answer is :     Verifiable pbjective    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 211. Treatment of capital as liability opserves the accounting assumpting of      Marks:   2+ 0.5-

    busuness    Revenue realisation    full disclosure    historical cost principle    materality The Correct Answer is :     busuness    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 212. Accounting period consists oif      Marks:   2+ 0.5-

    12months    24months

    36months    48months    60months The Correct Answer is :     12months    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 213. In construction work revenue is identified on the basis of      Marks:   2+ 0.5-

    sales    cash received    balanced due    work completed    none of the abvoe The Correct Answer is :     work completed    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 214. Accounting to the principles of matching cost and revenur income of a business can sbe ascertaineed by      Marks:   2+ 0.5-

    Total recreiveed    Total. pauments    matching total sales and purchases    matching revenue dwith the cost of the business    all of the books The Correct Answer is :     matching revenue dwith the cost of the business    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 215. According to the concept of conservatism the stock in trade is valued at      Marks:   2+ 0.5-

    cost price    market price    cost of market price whicheverr is lower cost or markert price whichevert islower    cost of market price whicheverr is lower cost or markert price whichevert is higher    none of the above The Correct Answer is :     cost of market price whicheverr is lower cost or markert price whichevert islower    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 216. The following convention cosiders the qualities and disqualitie s of genetal menager Marks:   2+ 0.5-

    conven tion of coservatism    convention of feasibility    convention of materialit    all of the above    none of the above The Correct Answer is :     conven tion of coservatism    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1

217. he concept of conservatism takes into account      Marks:   2+ 0.5-

    all future lossed but leaves all future profits    all future proits but leaves all future losseS    all future profits and all future lossed    all of he above    none of the above The Correct Answer is :     none of the above    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 218. The policy of anticipate no profit and provide for the possible lossed arises due to Marks:   2+ 0.5-

    convention disclosure    convention of materialism    convention of consistecy    convention of feasibility    convention of conservation The Correct Answer is :     convention of feasibility    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 219. Non financial information is not recorded in accounts to      Marks:   1+ 0.25-

    accural concept    entity concept    dual aspect concept    meoney measurement concept    none of the above The Correct Answer is :     meoney measurement concept    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 220. According to the concept of money meaurement the following will not be recording in the ooks of accounts      Marks:   2+ 0.5-

    simplicity of the general management    deathe of the general manager    (i) and (ii) both    gratuaitay paid to hte general managers wife after his dearth    pension paid to the general managers wife after his death The Correct Answer is :     (i) and (ii) both    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 221. According to the concept of going concern a business is presumed to have      Marks:   2+ 0.5-

    a limited life    a long life    a definite life    an indefinite life    none of the above The Correct Answer is :     a long life    You did not answer the question. Explanation : undefined

Module : Module B Chapter : Chapter1 222. Realisation concept miplies realisation of revenure at      Marks:   2+ 0.5-

    the reciept of the order    the delivery of goods    the reciept of cash from the customert    the cancellation of an ofder    all of the abvoe The Correct Answer is :     the delivery of goods    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 223. The concern concept according to which a fact or happining which canot be expressed in terms of money is not recorded in the accounting books is callled      Marks:   2+ 0.5-

    cost concept    matching concept    realisation concept    money measurement concept    accounting period concept The Correct Answer is :     money measurement concept    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 224. Profit represents excess of receipts over expenditure in      Marks:   2+ 0.5-

    mercantile system of accounting    cash system of accounting    hybrid system of accounting    all tof the above    none of the above The Correct Answer is :     cash system of accounting    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 225. income and expenses are recognised as and when they are due irrestective of their actual reciept payment in      Marks:   2+ 0.5-

    mercantile system of accounting    cash system of accounting    hybrid system of accounting    all of the above    none or the above The Correct Answer is :     mercantile system of accounting    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 226. Point out the correct accounting equation      Marks:   2+ 0.5-

    capital =Assets+Liabilities    Assets =Capital +liabilities    Assets= Capital _liabililties    Liabilities =Assets +capital    Capital =caprtal -Assets The Correct Answer is :     Assets =Capital +liabilities

    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 227. Ponit out the incorrect accounting equation      Marks:   2+ 0.5-

    capital =assets -liabilities    assets =capital +liabiliteis    liabilities =assets +capital    assets = liabilities +capital    all of the abvoe The Correct Answer is :     liabilities =assets +capital    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 228. Purchase of a T.V set for the propreitor will      Marks:   2+ 0.5-

    increase assets and decrease capital    increase capital and decrease assets    increase assets and increas capital    decrease assets and decrease capital    none of the above The Correct Answer is :     decrease assets and decrease capital    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 229. calculate groes income from the following information sales Rs 2,00,000sales Rs 4,000opening stock Rs 20,000pruchases 1,20,000purchase retures 2,000wages 14,000frieght 6,000salaries 40,000closing stock 24,000      Marks:   2+ 0.5-

    Rs 60,000    Rs 78,000    Rs 1,34,000    Rs 62,000    Rs 1,96,000 The Correct Answer is :     Rs 62,000    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 230. calculate -(a) cost of goods sosd (b) gross profit and (c) bet profit frim the following igures opening Rs 40,000purchases Rs 2,00,000purchases returns Rs 20,000direct expenses Rs 30,000]closing stock Rs 20,000indirect expenses RS 20,000sales Rs 2,50,000sales returns 10,000      Marks:   2+ 0.5-

    Rs 2, 30,000 Rs 10,000 Rs 5,000    Rs 2,30,000 Rs 5,000: Rs 10,000    Rs 2,30,000 Rs 10,000 (-) Rs 10,000    Rs 2,10,000 Rs 10,000 Rs 5,000    Rs 2,10,000 Rs 5,000 Rs 10,000 The Correct Answer is :     Rs 2,30,000 Rs 10,000 (-) Rs 10,000    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 231. sales during the year is Rs 1,00,000 grosss profits is 25% on cost find out the amount of gross profit      Marks:   2+ 0.5-

    Rs 20,000    Rs 25000    Rs 30,000    Rs 33,000    Rs 40,000 The Correct Answer is :     Rs 20,000    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 232. calculate sales if cost of sales is Rs 1,60,000 and the gross loss is Rs 68,00      Marks:   2+ 0.5-

    Rs 2,28,000    Rs 92,000    Rs 2,52,00    RS 1,42,000    none of the abvoe The Correct Answer is :     Rs 92,000    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 233. find out net profit from the following figares cash sale = Rs 70,000credit sales =RS 80,000cost of goods =Rs 1,04,000selling expenses =Rs 13,400      Marks:   2+ 0.5-

    (-) ?Rs .34,000    (-) rs 24,000    Rs 32,600    RS 46,000    none of the books The Correct Answer is :     Rs 32,600    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 234. what will be the capital of the propeitor if his her assets are Rs 1,90,00 and liabilities Rs 1,25,000      Marks:   2+ 0.5-

    Rs 0,000    Rs 65,000    RS 75,000    Rs 1,90,000    none of the books The Correct Answer is :     Rs 65,000    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 235. Revenue is said to be realised      Marks:   2+ 0.5-

    when sales are made    when goods are manufacturd    when order is recieved    when cash is recieved    when tenders are invited The Correct Answer is :     when sales are made    You did not answer the question. Explanation : undefined

Module : Module B Chapter : Chapter1 236. The term Expense;denotes      Marks:   2+ 0.5-

    cost of services and things used for generating revenue    payment or the icurings of a dept for an asset    cost which fails to proece revenue    all of the above    none of theabove The Correct Answer is :     cost of services and things used for generating revenue    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 237. in case of traditional approach the expense to be matched with revenue is based on Marks:   2+ 0.5-

    original cost    cast cost    replacement cost    all of the abvoe    none of the abvoe The Correct Answer is :     original cost    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 238. In case of gold and silver revenue is recognised in the accounting period in which it is Marks:   2+ 0.5-

    sold    deliverred    mined    all of the above    none of the abvoe The Correct Answer is :     mined    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 239. in long term contracsts revenur is generall y recognised      Marks:   2+ 0.5-

    only onm full compleetion of the contract    even when a part of the contract has been colmpleted    only when full cash is receivced    when contract is signed    none of the above The Correct Answer is :     even when a part of the contract has been colmpleted    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 240. which one of the following statement is true?      Marks:   2+ 0.5-

    matching concept requires that revenur should always be equal to the expenditure    the mercanntile system of accoucting is acceptable only for trader    hybrid system of accounting is not permitted as per income tax law in india    going concern concept assumes that the firm is making    the cost of self constructed fixed assets should be treated as revenue expenditure The Correct Answer is :     hybrid system of accounting is not permitted as per income tax law in india

    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 241. which one of the following statement is false?      Marks:   2+ 0.5-

    the accounting principle followed for financiall accounting are not applicaable for manbagement accounting    the selection of a specific accounting policy is left to the discretion of the firm, concerned    according to AS 4 cintingeney profits should not e recognised in financial stqatement    AS 1 is regarding disclosing disclosure of accounting pllicies    As 10 is regarding according accounting for fixed asseerts The Correct Answer is :     the accounting principle followed for financiall accounting are not applicaable for manbagement accounting    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 242. the accounting period concept states that      Marks:   2+ 0.5-

    accounting year should be the same as financial years    the accounting period can be only one year    the accounting period should be the calender year    the accounting period should be different from the calender year    none of the above The Correct Answer is :     none of the above    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter1 243. In book-keeping , the transactions are recorded under .....types of accounts      Marks:   2+ 0.5-

    Two    Three    Four    Five    Six The Correct Answer is :     Three    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 244. Sales book is maintained to record -      Marks:   2+ 0.5-

    all sales (cahs and credit)    all cash sales of goods only    all credit sales of goods only    All of the above    None of the above The Correct Answer is :     all credit sales of goods only    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 245. The periodic total of the sales book is posted to the      Marks:   2+ 0.5-

    Debit of Sales Account    Credit of Sales Account    Debit of Cash Account

    Credit of Cash Account    None of the above The Correct Answer is :     Credit of Sales Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 246. Sales Account in ledger records-      Marks:   2+ 0.5-

    Only cash sales of merchandise    Only credit sales of merchandise    Both cash and credit sales of merchandise    Only credit sale of old assets    All of the above. The Correct Answer is :     Both cash and credit sales of merchandise    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 247. Withdrawals by propritor would -      Marks:   2+ 0.5-

    reduce liabilities and increase assets    reduce assets and increase liabilities    reduce both the assets and owner's equity    reduce owner's equity and increase laibilities    None of the above. The Correct Answer is :     reduce both the assets and owner's equity    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 248. Returns Inward Book is maintained to record -      Marks:   2+ 0.5-

    Return of goods purchased    Return of goods sold    Return of old assets sold    Return of anything purchased    Return of anything sold. The Correct Answer is :     Return of goods sold    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 249. Returns Outward Book is maintained to record -      Marks:   2+ 0.5-

    Return of goos pruchases    Return of goods sold    Return of old assets sold    Return of anything purchased    Return of anything sold The Correct Answer is :     Return of goos pruchases    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 250. Returns Outward Book is mainteained to record-      Marks:   2+ 0.5-

    Return of goods purchased    Return of goods sold

    Return of old assets purchased    Return of anything purchased    Return of anything sold. The Correct Answer is :     Return of goods purchased    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 251. Salary Outstanding Account is a personal account      Marks:   2+ 0.5-

    True    False    Incomplete statement    All of the above    None of the above. The Correct Answer is :     True    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 252. The amount of Rs. 5,000 paid to a transport company to carry a machine should be debited to -      Marks:   2+ 0.5-

    Cash a/c    Machinery a/c    The Transport Caompany's a/c    Freight a/c    None of the above The Correct Answer is :     Freight a/c    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 253. Closing stock of office stationery is written in the -      Marks:   2+ 0.5-

    credit side on Trading a/c    credit side of P & L a/c    assets side of Balance Sheet    liabilities side of Balance sheet    None of the above The Correct Answer is :     assets side of Balance Sheet    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 254. Provision for discount on creditors will always show a debit balance.      Marks:   2+ 0.5-

    Tru    False    Incomplete statement    All of the above    None of the above The Correct Answer is :     Tru    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 255. Sale of an old aset on credit at a price higher than written down value of the asset, would -      Marks:   2+ 0.5-

    leave owner's equity unaffected    increae owner's equity to the extent of less vlaue    decrease owner's equity by the amount of sale    increase owner's equity to the extent of profit on sale    None of the above. The Correct Answer is :     increase owner's equity to the extent of profit on sale    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 256. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    Only a limited number of transactions affect the accounting equation.    The basic unit of accounting is a journal entry    Transaction analysis analyses the effect of transactions on the variables of the accounting equation.    When the balance of an asset is to be reduced, the Asset a/c is to be debited.    Decreae in one asset with no change in capital will result in decreae in another asset. The Correct Answer is :     Transaction analysis analyses the effect of transactions on the variables of the accounting equation.    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 257. The discount column of a triple-column cash Book records-      Marks:   2+ 0.5-

    cahs discount    trade discount    bank discount    seasonal discount    quantity discount. The Correct Answer is :     cahs discount    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 258. The appropriate book to record credit purchase of furniture is -      Marks:   2+ 0.5-

    Journal    Purchases Book    Cash Book    Petty Cash Book    Sales Book. The Correct Answer is :     Journal    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 259. Sales a/c Dr. To Trading a/cisan example of -      Marks:   2+ 0.5-

    Opening entry    Closing entry    Transaction entry    Adjustment entry    Rectification entry The Correct Answer is :     Closing entry    You did not answer the question. Explanation : undefined

Module : Module B Chapter : Chapter2 260. Posting is donw from      Marks:   2+ 0.5-

    ledger to ledger    one subsidiary book to another    ledger to subsidiary book    subsidiary book to ledger    None of the above The Correct Answer is :     subsidiary book to ledger    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 261. Ledger is a principle book in which -      Marks:   2+ 0.5-

    only real accounts are kept    only personal accounts are kept    only representative personal accounts are kept    only nominal accounts are kept    All account are kept The Correct Answer is :     All account are kept    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 262. Bills Receivable Book and Bills Payable book are-      Marks:   2+ 0.5-

    Principal Books    Ledger    Subsidiary Books    Memorandum Books    None of the above The Correct Answer is :     Subsidiary Books    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 263. The balance of Cash Account indicates      Marks:   2+ 0.5-

    Net loss for the period    Net profit for the period    Net cash on hand    Net worth of the business    Net amount due from debtors. The Correct Answer is :     Net cash on hand    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 264. Transferring the debit and creidt items from journal to their respective accounts in the ledger is called -      Marks:   2+ 0.5-

    single entry    double entry    posting    balancing    invoicing The Correct Answer is :     posting    You did not answer the question.

Explanation : undefined Module : Module B Chapter : Chapter2 265. the amount and goods brought in by the proprietor in the business should be credited to - Marks:   2+ 0.5-

    Drawings Account    Cash account    Capital Account    Purchases Account    None of the above The Correct Answer is :     Capital Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 266. In case of debt becoming bad, the amount should be credited to -      Marks:   2+ 0.5-

    Provision of Bad Debts a/c    Bad Debts a/c    Sales a/c    Creditor's a/c    Debtor's a/c The Correct Answer is :     Debtor's a/c    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 267. The amount of salary paid to Mr. A should be debited to -      Marks:   2+ 0.5-

    Cash a/c    Salaries a/c    Mr. A's a/c    Outstanding Salaries a/c    None of the above The Correct Answer is :     Salaries a/c    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 268. Cash discount allowed to a debtor should be credited to -      Marks:   2+ 0.5-

    Sales a/c    Discount a/c    Cash a/c    Customer's a/c    None of the above The Correct Answer is :     Customer's a/c    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 269. The return of goods by a customer should be debited to-      Marks:   2+ 0.5-

    Goods a/c    Sales Returns a/c    Customer's a/c    Purchase Returns a/c    None of the above The Correct Answer is :     Sales Returns a/c

    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 270. Sales made of Mr. X for should be debited to -      Marks:   2+ 0.5-

    Mr. X's a/c    Sales a/c    Cash a/c    Purchases a/c    None of the above. The Correct Answer is :     Cash a/c    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 271. Prepaid Expenditure a/c is      Marks:   2+ 0.5-

    Real Account    Natural Personal Account    Representative Personal Account    Nominal Account    None of the above The Correct Answer is :     Representative Personal Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 272. Loan taken from Khushboo should be credited to -      Marks:   2+ 0.5-

    Cash a/c    Bank a/c    Loan from Khushboo a/c    Khushboo's a/c    None of the above The Correct Answer is :     Loan from Khushboo a/c    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 273. Select the true statement from the follwing      Marks:   2+ 0.5-

    Every transaction is recorded first in the cash Book    Bank account is not a personal account    Narration is necessary    Drawing Accounts is a real acocunt    Journal is a book of original entry. The Correct Answer is :     Journal is a book of original entry.    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 274. Interest paid on borrowings is an example of -      Marks:   2+ 0.5-

    Real Account    Personal account    Nominal Account    All of the above.    None of the above

The Correct Answer is :     Nominal Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 275. Interest received in advance is an example of -      Marks:   2+ 0.5-

    Real Account    Personal Account    Nominal Account    All of the above    None of the above The Correct Answer is :     Personal Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 276. Goodwill Account is an example of -      Marks:   2+ 0.5-

    Real (tangible)account    Real (intangible) account    Personal account    Nominal account    None of the above The Correct Answer is :     Real (intangible) account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 277. The debit balance is cash Account indicates-      Marks:   2+ 0.5-

    Total csh received    Total cash paid    Net income    Cash in hand    None of the above The Correct Answer is :     Cash in hand    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 278. Cash Account is a -      Marks:   2+ 0.5-

    Nominal Account    Real Account    Personal account    All of the above    None of the above The Correct Answer is :     Real Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 279. Debit entries will increaes the balance of -      Marks:   2+ 0.5-

    Purchaes Accounts    Plant & Machinery Accounts    (i) and (ii) both

    Sales Accounts    Purchase Returns Accounts The Correct Answer is :     (i) and (ii) both    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 280. Debit entries will decrease the balance of -      Marks:   2+ 0.5-

    Salaries Accounts    Furniture Account    Bank Account    Cash Account    Capital Account The Correct Answer is :     Cash Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 281. Debit entires will decrease the balance of -      Marks:   2+ 0.5-

    Salaries Account    Furniture Account    Bank Account    Cash Account    Capital Account The Correct Answer is :     Capital Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 282. Debit entries will decrease the balance of -      Marks:   2+ 0.5-

    Salaries Account    Furniture Account    Bank Account    Cash Account    Capital Account The Correct Answer is :     Capital Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 283. Credit entries will increase the balance of -      Marks:   2+ 0.5-

    Goodwill Account    Purchases Account    Sales Returns Account    Bank Overdraft    None of the above. The Correct Answer is :     Bank Overdraft    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 284. Credit entries will decrease the balance of-      Marks:   2+ 0.5-

    Capital Account    Cash Account

    Purchases Return Account    (i) and (ii) both    (i) and (iii) both. The Correct Answer is :     Cash Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 285. Cash discount is allowed on -      Marks:   2+ 0.5-

    Purchases    sales    as a commission for sales    prompt payment    All of the above The Correct Answer is :     prompt payment    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 286. Cash Books is a -      Marks:   2+ 0.5-

    subsidiary journal    subsidiary journal and ledger account    ledger account    All of the above    None of the above. The Correct Answer is :     ledger account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 287. Purchase Book is maintained to record -      Marks:   2+ 0.5-

    all cahs purchases    all credit purchases    all purchases of goods    all credit purchases of goods    All of the above. The Correct Answer is :     all credit purchases of goods    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 288. The periodic totoal of purchases of goods is posted to -      Marks:   2+ 0.5-

    debit of Cash Acocunt    debit of Purchase Account    credit of Cash Account    credit of Purchase Account    None of the above. The Correct Answer is :     debit of Purchase Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 289. The debit balance of Petty Cash Book is-      Marks:   2+ 0.5-

    an expense

    an asset    a liability    a gain    an income The Correct Answer is :     an asset    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 290. The term 'Imprest System' is used in relation to -      Marks:   2+ 0.5-

    Purchases Book    Sales Book    Cash Book    Petty Cash Book    All of the above. The Correct Answer is :     Petty Cash Book    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 291. Mr. A sold some old machinery not in use having book value as zero, for Rs. 10,000. It will be credited to -      Marks:   2+ 0.5-

    Sales Account    Trading Account    Profit on sale of fixed assets    All of the above    None of the above. The Correct Answer is :     Profit on sale of fixed assets    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 292. Mr. A purchased fixed assets with the available cash. This transaction would -      Marks:   2+ 0.5-

    reduce current assets and current liabilities    reduce current assets and increase fixed assets    reduce current assets and reduce fixed assets    reduce current assets and increase current liabilities    keep current assets and fixed assets unchanged. The Correct Answer is :     reduce current assets and increase fixed assets    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 293. The system of double entry is based on the principle thate-      Marks:   2+ 0.5-

    Double voucher is prepared to record the transaction    Head of one account is debited or credited twice    Every transaction has two-fold effect and it affects two accounts in opposite direction    All of the above    None of the above The Correct Answer is :     Every transaction has two-fold effect and it affects two accounts in opposite direction    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2

294. Double entry system of book-keeping refers to a system where -      Marks:   2+ 0.5-

    Each trasaction is recorded in two sets of account books.    The number of accounts with a debit balance must agree with the number of accounts with credit balance.    Each transaction is recorded twice-once in journal and then in ledger    Each debit and credit entries are passed for each transaction .    All of the above. The Correct Answer is :     Each debit and credit entries are passed for each transaction .    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 295. Debit signifies -      Marks:   2+ 0.5-

    Increase in assets accounts    Decrease in capital account    Decrease in liabilities accounts    All of the above    None of the above The Correct Answer is :     All of the above    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 296. Credit signifies -      Marks:   2+ 0.5-

    Increase in assets accounts    Decrease in capital account    Increase in liabilities accounts    All of the above    None of the above The Correct Answer is :     Increase in liabilities accounts    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 297. In double entry sytstem of book-keeping, every business transaction affects -      Marks:   2+ 0.5-

    One account    Two accout    Debit and credit side of the same account    All of the above    None of the above. The Correct Answer is :     Two accout    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 298. In book-keeping, posting means -      Marks:   2+ 0.5-

    To record the transactionw with the help of a voucher    To record the transactionw with the help of other records    To record the transactionw in the books of original entry    To record the transactionw from the books of original entry to the ledger    All of the above The Correct Answer is :     To record the transactionw from the books of original entry to the ledger    You did not answer the question.

Explanation : undefined Module : Module B Chapter : Chapter2 299. Real account srelate to -      Marks:   2+ 0.5-

    Expenses    Incomes    Assets    Liabilities    Debtors and Creditors. The Correct Answer is :     Assets    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 300. Personal accounts relate to -      Marks:   2+ 0.5-

    Expenses and Incomes    Assets and Liabilities    Debtors and creditors    All of the above    None of the above The Correct Answer is :     Debtors and creditors    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 301. The basic rule of Book-keeping-debit and expenses/Losses and credit the income/gains is applicable to -      Marks:   2+ 0.5-

    Real Accounts    Personal Accounts    Nominal Accounts    All of the above    None of the above. The Correct Answer is :     Nominal Accounts    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 302. Which of the following events is not a business transaction?      Marks:   2+ 0.5-

    Withdrawas of goods by the proprietor for domestic use    Purchase of goods on credit    Making promise to supply goods    Loss of goods by theft    Sale of goods for cash The Correct Answer is :     Making promise to supply goods    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 303. Wages owing is -      Marks:   2+ 0.5-

    Real Account    Personal Account    Nominal Account    All of the above    None of the above

The Correct Answer is :     Personal Account    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 304. goods drawn by the proprietor from the business fro personal use -      Marks:   2+ 0.5-

    Increase assets andecreases expenses    Increases assets and decreases liabilities    Increases capital and decreases assets    Increases liabilities and decreases assets    None of the above. The Correct Answer is :     None of the above.    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 305. Interest on drawings -      Marks:   2+ 0.5-

    Increases expenses and decreases liabilit    Increases liability and decreaes capital    Increases assets and decreases capital    Increases revenues and decreases capital    All of the above The Correct Answer is :     Increases revenues and decreases capital    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 306. Recovery of bad debts previously written off      Marks:   2+ 0.5-

    Increases revenue and assets    Increases expenses and assets    Increaes assets and capital    Decreaes assets and excpenses    Decreases revenue and assets The Correct Answer is :     Increases revenue and assets    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 307. Rs. 5,000 received from Ramesh, whose account was previously written off as bad debts, should be credited to -      Marks:   2+ 0.5-

    Bad Debts a/c    Bad Debts Recovered a/c    Bad Debts Provision a/c    Ramesh a/c    None of the above The Correct Answer is :     Bad Debts Recovered a/c    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 308. A balance sheet discloses -      Marks:   2+ 0.5-

    Cash position of the business    Financial position of the business    Profit earning capacity of the busiess

    Risk taking capacity of the business    All of the above The Correct Answer is :     Financial position of the business    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 309. Cost of sales is Rs. 40,000 net sales amount to Rs. 60,000 and Closing stock is valued at Rs. 10,000. The gross profit will be -      Marks:   2+ 0.5-

    Rs. 10,000    Rs. 20,000    Rs. 30,000    Rs. 40,000    Rs. 40,000 The Correct Answer is :     Rs. 20,000    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 310. If a receipt of rs. 20,000 from Manan (our debtor) has not been recorded in the books, the profit will show -      Marks:   2+ 0.5-

    An increase of Rs. 20,000    A decrease of rs. 20,000    Neither an increae nor a decrese    An increae of Rs. 10,000    A decreae of Rs. 10,000 The Correct Answer is :     Neither an increae nor a decrese    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 311. Cash Book records-      Marks:   2+ 0.5-

    all transactions    all cash transactions    all credit transactions    all non-cash transactions    None of the above The Correct Answer is :     all cash transactions    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 312. Discount column of Cash Book is -      Marks:   2+ 0.5-

    balanced    totalled    either balanced or totalled    neither balanced nor totalled    sometimes balanced, sometimes totalled The Correct Answer is :     totalled    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 313. Cash Book does not record-      Marks:   2+ 0.5-

    credit purchased    credit sales    outstanding expenses    accrued income    All of the above. The Correct Answer is :     All of the above.    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 314. Cash column of the Cash Book always has a -      Marks:   2+ 0.5-

    debit balance    credit balance    either debit or credit balance    neither debit nor credit balance    None of the above. The Correct Answer is :     debit balance    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 315. Bank column of the Cahs Book has -      Marks:   2+ 0.5-

    debit balance    credit balance    either debit or credit balance    neither debit or credit balance    None of the above. The Correct Answer is :     either debit or credit balance    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 316. All credit transactions are recorded at ....side of the cash Book.      Marks:   2+ 0.5-

    debit    credit    either debit or credit    neither debit nor credit    Noen of the above. The Correct Answer is :     neither debit nor credit    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 317. Which of the following is a contra entry?      Marks:   2+ 0.5-

    Selling goods for cash    Receiving cash from Suresh and allowing him discount    Depositing cheque into the bank which was received the same day    Depositing cheque into the bank which was received the proviious day    All of the above. The Correct Answer is :     Depositing cheque into the bank which was received the proviious day    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2

318. Petty Cash Book records-      Marks:   2+ 0.5-

    Petty expenses    Petty expenses paid in cash    all expenses    outstanding expenses    All of the above. The Correct Answer is :     Petty expenses paid in cash    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 319. Which of the following accounts will invariably have a debit balance?      Marks:   2+ 0.5-

    Bank Account    Current Account of a Partner    Accounts Receivables    Accounts Payable    None of the above. The Correct Answer is :     Accounts Receivables    You did not answer the question. Explanation : undefined Module : Module B Chapter : Chapter2 320. Errors detected before the preparation of trial balance will be rectified-      Marks:   2+ 0.5-

    by opening suspense a/c    without opening Suspense a/c    by tranferring to Trading a/c    by transferring to p&L a/c    None of the above The Correct Answer is :     without opening Suspense a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 321. Suspense a/c in the trial balance will be entered in the-      Marks:   2+ 0.5-

    Trading a/c    P & L a/c    Manufacturing a/c    Balance sheet    None of the above The Correct Answer is :     Balance sheet    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 322. Which one of the following is a true statement ?      Marks:   2+ 0.5-

    Errors of principle affect the agreement of the trial balance    If the two sides of trial balance tally, the books of accounts can be taken as absolutely accurate    Errors of commission are commited in those case where proper distinction between revenue and capital items is not made    All errors affect the agreement of the trial balance    Errors of omission do not affect the agreement of the trial balance The Correct Answer is :     Errors of omission do not affect the agreement of the trial balance    You did not answer the question.

Explanation : undefined Module : Module C Chapter : Chapter1 323. Which one of the following is a false statement ?      Marks:   2+ 0.5-

    In case of compensating error, one error neutralises the effect of the other error.    Undercasting the purchases book is the error of commission    Errors of principle cannot be detected by trial balance    Errors of complete omission cannot be detected by trial balance    All errors affect the agreement of the trial balance The Correct Answer is :     All errors affect the agreement of the trial balance    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 324. A trial balance is a-      Marks:   2+ 0.5-

    real account    personal account    nominal account    list of balance of all account    list of assets and liablities The Correct Answer is :     list of balance of all account    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 325. A trial balance checks-      Marks:   2+ 0.5-

    honesty of the accountant    honesty of the owners    arithmethic accuracy of books    All of the above    None of the above The Correct Answer is :     arithmethic accuracy of books    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 326. The following can be detected by preparing a trial balance-      Marks:   2+ 0.5-

    errors of principle    errors of omission    errors of commision    errors of compensation    None of the above The Correct Answer is :     None of the above    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 327. In trial balance, an outstanding expenditure account will show a-      Marks:   2+ 0.5-

    debit balance    credit balance    sometimes debit and sometimes credit balance    only nil balance    None of the above The Correct Answer is :     credit balance

    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 328. Wrong balancing of account is-      Marks:   2+ 0.5-

    error of principle    error of omission    error of commission    error of compensation    None of the above The Correct Answer is :     error of commission    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 329. Bills Receviable a/c and Bills Payable a/c are a part of-      Marks:   2+ 0.5-

    Journal    Ledger    Trading a/c    P & L    Balance sheet The Correct Answer is :     Ledger    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 330. Bills Receivable Book and bills payable Book are-      Marks:   2+ 0.5-

    principle Books    Subsidiary Books    Books containing names and addresses of debtors and creditors    Books containing blank forms of bills of exchang    None of the above The Correct Answer is :     Subsidiary Books    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 331. Retiring a bill under a rebate means-      Marks:   2+ 0.5-

    paying the bill on due date    paying the bill before due date    paying the bill after due date    dishonouring the bill    accepting a new bill The Correct Answer is :     paying the bill before due date    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 332. Rent paid to landlord amounting to Rs.700 was credited to Rent a/c with Rs.7000. In the rectification entry, Rent a/c will be debited with-      Marks:   2+ 0.5-

    Rs.700    Rs.7000    Rs.6300

    Rs.7700    None of the above The Correct Answer is :     Rs.7700    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 333. A watch purchased for Rs.3,000 for the son of a partner, was debited to trade expenses account with Rs.300. The partners drawing account should be debited in the rectifying entry with-      Marks:   2+ 0.5-

    Rs.300    Rs.2700    Rs.3300    Rs.5700    Rs. 3000 The Correct Answer is :     Rs. 3000    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 334. wages paid for repairs to plant should be debited to-      Marks:   2+ 0.5-

    wages a/c    Repairs a/c    plant a/C    Cash a/c    None of the above The Correct Answer is :     Repairs a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 335. Asha's a/c, instead of being debited with Rs. 5,000 has wrongly been credited with Rs.5,000. it should be debited in the rectifying entry with-      Marks:   2+ 0.5-

    half amount    same amount    double amount    triple amount    None of the above The Correct Answer is :     double amount    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 336. A firm dealing in furniture debits Furniture a/c on purchasing furniture for cash or on credit. It is an error of-      Marks:   2+ 0.5-

    principle    omission    commission    compensation    None of the above The Correct Answer is :     principle    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1

337. Sales to Mohan Rs. 445 posted to his account as Rs.544, would affect-      Marks:   2+ 0.5-

    Cash a/c    Sales a/c    Mohan a/c    All of the above    None of the above The Correct Answer is :     Mohan a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 338. sales to sohan Rs. 5000 not recorded in the books would affect-      Marks:   2+ 0.5-

    cash a/c    sales a/c    sohan a/c    Both Cash a/c and Sales a/c    Both sales a/c and Sohan's a/c The Correct Answer is :     Both sales a/c and Sohan's a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 339. Goods purchased from Mr.X for Rs.10,000 was passed through the sales Books . The rectification of error will      Marks:   2+ 0.5-

    increase in gross profit    decrease in gross profit    no effect on gross profit    decrease in balance of Purchases a/c    None of the above The Correct Answer is :     decrease in gross profit    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 340. A sumof Rs.3,000 written off as bad debts now received, cedited to the debtor oul;d result in-      Marks:   2+ 0.5-

    increase the net profit by Rs. 3000    decrease the net profit by Rs. 3000    no effect on net profit    increase in the balance of debtor's account    None of the above The Correct Answer is :     decrease the net profit by Rs. 3000    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 341. Carriage charges paid for a new plant purchased, if debited to carriage a/c would affect- Marks:   2+ 0.5-

    cash a/c    carriage a/c    Plant a/c    cash a/c and Carriage a/c    carriage a/c and plant a/c The Correct Answer is :     carriage a/c and plant a/c    You did not answer the question.

Explanation : undefined Module : Module C Chapter : Chapter1 342. An amount of Rs. 1000 receivedfrom Mr. Sanjay credited to sanjeev's a/c would affect- Marks:   2+ 0.5-

    sanjay's a/c    sanjeev's a/c    Cash a/c    Both sanjay's a/c and sanjeev's a/c    None of the above The Correct Answer is :     Both sanjay's a/c and sanjeev's a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 343. A sale of Rs. 2000 to Mr. X recorded in the Purchases Book would affect-      Marks:   2+ 0.5-

    Purchases a/c    sales a/c    Purchases a/c and Cash a/c    sales a/c and Cash a/c    Purchases a/c, Sales a/c and Mr.X's a/c The Correct Answer is :     Purchases a/c, Sales a/c and Mr.X's a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 344. Thye different in the debit and credit side of trial balance is transferred to-      Marks:   2+ 0.5-

    Difference a/c    suspense a/c    Capital a/c    Profit & loss a/c    None of the above The Correct Answer is :     suspense a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 345. Bank Reconciliation Statement is -      Marks:   2+ 0.5-

    A ledger account    A Part of cash book with bank column    A statement showing the causes of difference between the cash book and the Pass book balances    All of the above    None of the above. The Correct Answer is :     A statement showing the causes of difference between the cash book and the Pass book balances    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 346. Bank Reconciliation Statement may be Prepared with the balance of      Marks:   2+ 0.5-

    Cash Book    Pass Book    Either Cash Book or Pass Book

    Neither Cash Book nor Pass Book    None of the above. The Correct Answer is :     Either Cash Book or Pass Book    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 347. The debit balance of Pass Book shows-      Marks:   2+ 0.5-

    deposit (Plus) balance    overdraft (minus) balance    either deposit or overdraft balance    neither deposit nor overdraft balance    None of the above. The Correct Answer is :     overdraft (minus) balance    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 348. Pass Book is      Marks:   2+ 0.5-

    a copy of receipts and Payments of the firm    a copy of the firm's ledger account maintained by the bank    a copy of the banking transactions entered in the Cash Book    a record of all transactions    a record of withdrawals from the bank. The Correct Answer is :     a copy of the firm's ledger account maintained by the bank    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 349. Overdraft facility is available only in-      Marks:   2+ 0.5-

    Savings Bank Account    Current Account    Recurring Deposit Account    Fixed Deposit Account    All of the above. The Correct Answer is :     Current Account    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 350. The bank balance is treated as plus (dposit) balance if it is a-      Marks:   2+ 0.5-

    debit balance of Cash Boook    credit balance of Pass Book    both (i) and (ii)    credit balance of Cash Book    debit balance of pass Book. The Correct Answer is :     both (i) and (ii)    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 351. Bank column in Cash Book shows a credit balance, What does it mean?      Marks:   2+ 0.5-

    there must be un-deposited cash    There is overdraft balance

    There must be some crror in recording    Cashier has embezzled cash    None of the above. The Correct Answer is :     There is overdraft balance    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 352. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    The balance as shown by the Bank Pass Book and the balance as shown by the bank column of Cash Book are always equal.    Cheques issued but no presented will reduce the balance as per Pass Bank.    Pass Book is the statement of account maintained by the customer of the bank    Favourable balance as per Cash Book means credit balance in the bank column of Cash Book    When money is withdrawn from the bank, the Bank debits the Customer's Account. The Correct Answer is :     When money is withdrawn from the bank, the Bank debits the Customer's Account.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 353. Which one of the following statements is 'false'      Marks:   2+ 0.5-

    Pass Book is the statement of Account of the customer maintained by the bank    Cheques sent for collection but not yet collected will result in increasing the balance of the Cash Book    The Bank Reconciliation Statement is Prepared to reconcile the balance as shown by Cash Book and the balance as shown by Pass Book    Direct collections received by the bank on half of its customer will decrease the balance as per the Cash Book    Cheques issued but not presented for payment will increase the balance as Per Pass Book The Correct Answer is :     Direct collections received by the bank on half of its customer will decrease the balance as per the Cash Book    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 354. A bank reconciliation statement is prepared to know the causes for the difference between-      Marks:   2+ 0.5-

    the balance as per cash column of the Cash Book and Pass Book    the balance as per bank column of the Cash Book and Pass Book    both (i) and (ii)    neither (i) nor (ii)    None of the above. The Correct Answer is :     the balance as per bank column of the Cash Book and Pass Book    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 355. A bank reconcilitation statement is      Marks:   2+ 0.5-

    Part of Cash Book    Part of Bank Book Account    A separate statement    a separate statement attached to Cash Book    None of the above. The Correct Answer is :     A separate statement    You did not answer the question.

Explanation : undefined Module : Module C Chapter : Chapter1 356. A bank reconciliation statement is prepared by-      Marks:   2+ 0.5-

    bank    customer of the bank    creditors    government    All of the above. The Correct Answer is :     customer of the bank    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 357. A bank reconciliation statement is prepared with the help of-      Marks:   2+ 0.5-

    bank pass book and bank column of cash book    bank pass book cash coumn of cash book    bank pass book and petty cash book    All of the above    None of the above. The Correct Answer is :     bank pass book and bank column of cash book    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 358. If you start with the cash book deposit balance in a bank reconciliation statement, which items will you add ?      Marks:   2+ 0.5-

    Cheques issued but not yet Presented for Payment    Accounts directly deposited by a customer into bank    Interest allowed by the bank    Inerest charged by the bank    (i), (ii), and (iii). The Correct Answer is :     (i), (ii), and (iii).    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 359. If you start with cash book deposit balance in a bank reconciliation statement, which item/items will you deduct?      Marks:   2+ 0.5-

    Dishonoured cheques    Discounted bills dishonoured    Dividend on shares collected by bank    (i) and (ii)    (i) and (ii) The Correct Answer is :     (i) and (ii)    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 360. Which one of the following statement is true?      Marks:   2+ 0.5-

    Normally if Cash Book shows a debit balance, Pass Book also shows a debit balance    A credit entry in Pass Book means a credit entry in Cash Book    For a dishonoured cheque, bank account is debited.

    When a customer directly pays into bank, bank Account is debilted.    None of the above The Correct Answer is :     When a customer directly pays into bank, bank Account is debilted.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 361. Which one of the following statements is false?      Marks:   2+ 0.5-

    Debit balance in Pass Book means overdraft.    bank Pass Book is a copy of customer's account in the books of bank    For a dishonoured cheque, bank account is debited.    A debit entry in Pass Book means a credit entry in Cash Book    A bank reconciliation statement is prepared to find out the causes of difference between the balance of Cash Book and Pass Book The Correct Answer is :     For a dishonoured cheque, bank account is debited.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 362. The main purpose of preparing a Bank Reconciliation on Statement is-      Marks:   2+ 0.5-

    to know the Cash Book Balance    to know the Pass Book Balance    to compare the transactions in the Cash Book and Pass Book    to correct the Cash Book    to reconcile Balance as Per Cash Book with the Pass Book Balance The Correct Answer is :     to reconcile Balance as Per Cash Book with the Pass Book Balance    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 363. Bank Reconciliation Statement is a-      Marks:   2+ 0.5-

    separate statement    ledger account    sub-division of journal    Part of Cash Book    compulsory statement under law The Correct Answer is :     separate statement    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 364. Unfavourable bank balance means-      Marks:   2+ 0.5-

    debit balance in Cash Book    debit balance in Pass Book    credit balance in Cash Book    credit balance in Pass Book    both (ii) and (iii) The Correct Answer is :     both (ii) and (iii)    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 365. A cheque received and deposited in the book on the same day is recorded in the Marks:   2+ 0.5-

    bank column of Cash Book

    cash column of Cash Book    both (i) and (II)    discount column of Cash Book    all the three column of Cash Book The Correct Answer is :     bank column of Cash Book    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 366. An amount of Rs. 5,000 is debited twice in the Pass Book. When overdraft balance as Per the Cash Book is the starting Point-      Marks:   2+ 0.5-

    Rs. 5,000 will be added    Rs. 5,000 will be added    Rs. 10,000 will be added    Rs. 10,000 will be added    Rs. 15,000 will be added The Correct Answer is :     Rs. 5,000 will be added    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 367. Which one of the following statement is 'true'?      Marks:   2+ 0.5-

    Pass Book overdraft will be less than Cash Book overdraft if there are cheques deposited but not collected by the bank    If the Payment side of the Cash Book is undercast, Cash Book overdraft will be more than the Pass Book overdraft    When there are cheques unpresented, favourable balances Per Cash Book will be less than that of the Pass Book    When a banker collectes bills and credits the account, Pass Book overdraft shows higher balance than the Cash Book overdrft balance    Pass Book is a copy of Cash Book as Prepared by the customer of the bank The Correct Answer is :     When there are cheques unpresented, favourable balances Per Cash Book will be less than that of the Pass Book    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 368. Which one of the following statements is 'false'?      Marks:   2+ 0.5-

    pass book is a copy of customer's account in the ledger of the bank    Normally, if the Pass Book shows credit balance, the Cash Book shows debit balance    Unfavourable bank balacne means debit balance in Pass Book and credit balance in Cash Book    Unfavouable bank balance means credit balane in Pass Book and debit balance in Cash Book    Favourable bank balance means credit balance in Pass Book and debit balance in Cash Book The Correct Answer is :     Unfavouable bank balance means credit balane in Pass Book and debit balance in Cash Book    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter1 369. Goods of Rs. 2,000 returned to Mr. Y, entered in the Sales Book would affect -      Marks:   2+ 0.5-

    Y's a/c    Purchases a/c    (Purchase Returns a/c    Sales a/c    Purchase Returns a/c and Sales a/c

The Correct Answer is :     Purchase Returns a/c and Sales a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 370. Debiting Wages a/c for wages paid for the construction of building is -      Marks:   2+ 0.5-

    error of principle    error of omission    error of commission    compensation error    None of the above. The Correct Answer is :     error of principle    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 371. a fixed asset purchased on credit has been wrongly recorded in the purchases book. The following rectification entry will be passed -      Marks:   2+ 0.5-

    debit Purchases a/c / credit Fixed Asset a/c    debit Fixed Asset a/c / credit Purchases a/c    debit Fixed Asset a/c / credit Supplier's a/c    debit Supplier's a/c / credit Fixed Asset a/c    debit Purchase a/c / credit Supplier's a/c. The Correct Answer is :     debit Fixed Asset a/c / credit Purchases a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 372. An amount spent on the repairs of the building has been debited to building a/c. The following rectification entry will be passed-      Marks:   2+ 0.5-

    debit building a/c credit Cash a/c    debit Building a/c credit Repairs a/c    debit Repairs a/c / credit Building a/c    debit Repairs a/c / credit Cash a/c    debit Cash a/c / credit Repairs a/c The Correct Answer is :     debit Repairs a/c / credit Building a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 373. Rs. 5,000 paid as salary to Mr. X- a clerk has been debited to his personal account. The rectification entry will be -      Marks:   2+ 0.5-

    debit Cash a/c / credit Salary a/c    debit Salary a/c / credit Cash a/c    debit Mr. X's a/c / credit Cash a/c    debit Salary a/c / credit Mr. X's a/c    None of the above. The Correct Answer is :     debit Salary a/c / credit Mr. X's a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 374. A sales of old car amounting to Rs. 20,000 has been credited to Sales a/c Pass the rectification entry-      Marks:   2+ 0.5-

    debit cash and credit car    debit car and credit cash    debit car and credit sales    debit sales and credit car    debit slaes and credit cash. The Correct Answer is :     debit sales and credit car    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 375. Rs. 5,000 received from A but wrongly credited to B's account. The entry can be corrected as -      Marks:   2+ 0.5-

    debit cash and credit A    debit cash and credit B    debit A and credit B    debit B and credit A    None of the above. The Correct Answer is :     debit B and credit A    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 376. Rs. 1,000 was posted to Depreciation a/c as depreciation on furniture but was not posted to Furniture a/c. If total of debit side of the trial balance is Rs. 13,000, what should it be after rectification of error?      Marks:   2+ 0.5-

    Rs. 12,000    Rs. 13,000    Rs. 14,000    Rs. 15,000    None of the above. The Correct Answer is :     None of the above.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 377. Purchases boo is overcast by Rs. 10,000. The present gross profit is Rs. 90,000. What would be the correct amount of gross profit after rectification of the error?      Marks:   2+ 0.5-

    Rs. 80,000    Rs. 90,000    Rs. 1,00,000    Rs. 1,10,000    None of the above. The Correct Answer is :     Rs. 1,00,000    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 378. A sales of Rs. 3,000 to Mr. X has been omitted from recording in the Sales Book. The existing total of debit side of the trial balance is Rs. 2,00,00. What will be the total of credit side, presently?      Marks:   2+ 0.5-

    Rs 2,03,000    Rs. 1,97,000    Rs. 2,06,000    Rs. 1,94,000    None of the above. The Correct Answer is :     Rs. 1,97,000

    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 379. No adjustment entry was passed for an amount of Rs. 500 relating to outstanding salary. The gross profit which is presently Rs. 18,500 will now be-      Marks:   2+ 0.5-

    Rs. 19,000    Rs. 17,500    Rs. 19,500    Rs. 18,000    No change. The Correct Answer is :     No change.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 380. Discount amounting to Rs. 100 allowed by the creditors has been posted to the debit to Discount a/c. By how much amount will the total of credit side of trial balance increase after rectification?      Marks:   1+ 0.25-

    Nil    Rs. 100    Rs. 200    - Rs. 100    _ Rs. 200. The Correct Answer is :     Rs. 200    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 381. Rs. 140 discount allowed to a customer wrongly credited to Discount a/c, Total of debit side of the trial balance is Rs. 39,280. What should it be after rectification?      Marks:   2+ 0.5-

    Rs. 39,340    Rs. 39,420    Rs. 39,560    Rs. 39,400    None of the above. The Correct Answer is :     Rs. 39,560    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 382. Which account is generally prepared for rectification of errors?      Marks:   2+ 0.5-

    Adjustment a/c    Memorandum a/c    Profit & Loss a/c    Rectification a/c    Suspense a/c The Correct Answer is :     Suspense a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 383. Errors of principle arise when-      Marks:   2+ 0.5-

    there is an omission of transaction

    there is a commission of transaction    wrong amounts are entered in the books    transactions are entered in wrong subsidiary books.    Proper distinction is not made between capital and revenue items. The Correct Answer is :     Proper distinction is not made between capital and revenue items.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 384. Preparation of trial balance helps in detecting the -      Marks:   2+ 0.5-

    errors of principle    errors of omission    errors of commission    compensation errors    clerical errors. The Correct Answer is :     clerical errors.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 385. Which one of the following errors will affect the agreement of the trial balance? Marks:   2+ 0.5-

    Cash sale of furniture credited to Sales a/c.    A sale of Rs. 500 to Mr. Entered in sale Book as Rs. 5,000.    Purchase of Rs. 5,000 credited to Charat instead of Bharat.    A sales return of Rs. 2,000 correctly entered in the sales Returns Book but posted to the debit side of Seema.    None of the above. The Correct Answer is :     A sales return of Rs. 2,000 correctly entered in the sales Returns Book but posted to the debit side of Seema.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 386. Goods worth Rs. 1,000 returned by Bhanu were taken into stock, but on entry was passed. This is an error of-      Marks:   2+ 0.5-

    calculation    compensation    commission    omission    principle The Correct Answer is :     omission    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 387. Which one of the following is an error of principle?      Marks:   2+ 0.5-

    cash sale of Rs. 200 wrongly entered in Sales Book.    Sales of Rs. 200 entered in the books as Rs. 2,000    Purchase of Rs. 2,000 entered in the books as Rs. 200    Purchase transaction entered in Purchases Return Book.    Debiting Repairs a/c instead of Furniture a/c The Correct Answer is :     Debiting Repairs a/c instead of Furniture a/c    You did not answer the question. Explanation : undefined

Module : Module C Chapter : Chapter2 388. Which one of the following statements is 'true' ?      Marks:   2+ 0.5-

    Revenue expenditure treated as capital expenditure or vice-versa, is an example of error of commission.    In Book-Keeping, error are rectified by striking off the wrong figure and replacing it with the correct figure.    Entering the wrong amount in the subsidiary books affects the agreement of the trial balance.    Every type of error affects the agreement of the trial balance    Over-casting and Under-casting of a subsidiary books are the examples of errors of commission. The Correct Answer is :     Over-casting and Under-casting of a subsidiary books are the examples of errors of commission.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 389. Which one of the following statements is 'false'?      Marks:   2+ 0.5-

    Short debit to an account increases the credit side of the trial balance.    Excess debit to an account is rectified by debiting by debiting the amount to the account.    Some errors affect the agreement of trial balance while other do not.    An error of omission arises due to not writing the transaction in the books.    A transaction relating to sale of an asset being entered in Sales Book is an The Correct Answer is :     Excess debit to an account is rectified by debiting by debiting the amount to the account.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter2 390. Select the capital expenditure-      Marks:   2+ 0.5-

    Carriage paid on goods purchased    Legal expenses incurred for abuse of trade mark    Payment of compensation to a discharged employee    Repairs to motor-car    Expenditure incurred on issue of equity shares. The Correct Answer is :     Expenditure incurred on issue of equity shares.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 391. An expenditure is a capital expenditure because-      Marks:   2+ 0.5-

    the amount is very large    the amount is paid in lump-sum    it is intended to benefit in the current period    it is intended to benefit in the future period    None of the above. The Correct Answer is :     it is intended to benefit in the future period    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 392. An expenditure is a revenue expenditure because-      Marks:   2+ 0.5-

    the amount is very small    the amount is paid in instalments

    it is intended to benefit in the current period    it is intended to benefit in the current period    None of the above. The Correct Answer is :     it is intended to benefit in the current period    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 393. A loss is treated as a capital loss because-      Marks:   2+ 0.5-

    it relates to current assets    it relates to fixed assets    it arises due to abnormal reasons    it reduces profit    None of the above. The Correct Answer is :     it arises due to abnormal reasons    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 394. Acquisition of fixed assets is an example of-      Marks:   2+ 0.5-

    revenue expenditure    capital expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     capital expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 395. Maintenance of fixed assets is an example of-      Marks:   2+ 0.5-

    revenue expenditure    capital expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     revenue expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 396. An expenditure charged to P & L a/c over a period of 3 to 5 years is an example of Marks:   2+ 0.5-

    revenue expenditure    capital expenditure    deferred revenue expenditure    all of the above    None of the above. The Correct Answer is :     deferred revenue expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 397. An expenditure which helps in increasing the earning capacity of the firm is-      Marks:   2+ 0.5-

    revenue expenditure

    capital expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     revenue expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 398. Construction of building is an example of-      Marks:   2+ 0.5-

    revenue expenditure    capital expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     capital expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 399. A loss is treated as capital loss because-      Marks:   2+ 0.5-

    it arises due to normal reasons    it arises due to abnormal reasons    it relates to fixed assets    it relates to current assets    it relates to liabilities. The Correct Answer is :     it arises due to abnormal reasons    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 400. Cost of goods purchase for resale is an example of-      Marks:   2+ 0.5-

    Capital expenditure    revenue expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     revenue expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 401. Which one of the following is a capital item?      Marks:   2+ 0.5-

    Depreciation on fixed assets    Painting of building    Advertisement expenses    Legal expenses incurred in defending a suit for breach of contract to supply goods.    Acquisition of new asset. The Correct Answer is :     Acquisition of new asset.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 402. Which one of the following is a revenue item?      Marks:   2+ 0.5-

    Expenditure incurred on issue of equity shares    Cost of formation of a new company    Money raised by issue of preference shares    Expenditure incurred for replacing an asset.    Depreciation on fixed assets. The Correct Answer is :     Depreciation on fixed assets.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 403. An expenditure incurred on shifting the stock to a new site is an example of-      Marks:   2+ 0.5-

    revenue expenditure    capital expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     revenue expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 404. An expenditure on advertisement for furtherance of market for products is an example of- Marks:   2+ 0.5-

    revenue expenditure    capital expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     deferred revenue expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 405. Expenditure incurred on research and development is an example of-      Marks:   2+ 0.5-

    revenue expenditure    capital expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     deferred revenue expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 406. Outstanding expenditure on wages and salaries is an example of-      Marks:   2+ 0.5-

    revenue expenditure    capital expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     revenue expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3

407. A Loss is a revenue loss because-      Marks:   2+ 0.5-

    it arises due to normal operations of business    it decreases tax liability    It is related to current assets    It is related to fixed assets    None of the above. The Correct Answer is :     it arises due to normal operations of business    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 408. Expenditure incurred as cost of raw-material purchased and meant for processing and re-sale is an example of-      Marks:   2+ 0.5-

    revenue expenditure    capital expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     revenue expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 409. Amount paid for acquiring good will is an example of-      Marks:   2+ 0.5-

    revenue expenditure    capital expenditure    deferred revenue expenditure    All of the above    None of the above. The Correct Answer is :     capital expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 410. A receipt is revenue receipt because-      Marks:   2+ 0.5-

    it is received in the accounting year    the amount is small    it relates to routine activity of the business    it is received from debtors    None of the above. The Correct Answer is :     it relates to routine activity of the business    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 411. A receipt is a capital receipt because-      Marks:   2+ 0.5-

    It is received in the accounting year    The amount is heavy    It is not credited to Capital a/c    It relates to availability of long period    None of the above The Correct Answer is :     It relates to availability of long period    You did not answer the question. Explanation : undefined

Module : Module C Chapter : Chapter3 412. Incorrect treatment of capital expenditure as revenue expenditure would result in - Marks:   2+ 0.5-

    Increase in capital and reserves    Decrease in capital and reserves    Decrease in loss    Increase in profits    Decrease in profit or increase in losses. The Correct Answer is :     Decrease in profit or increase in losses.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 413. Incorrect treatment of revenue expenditure as capital expenditure would result in- Marks:   2+ 0.5-

    increase in liability    increase in losses    decrease in profit or increase in losses    increase in profit or decrease in losses    None of the above. The Correct Answer is :     increase in profit or decrease in losses    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 414. a revenue expenditure is intended to benefit-      Marks:   2+ 0.5-

    past period    current period    future period    both (i) and (ii)    both (ii) and (iii) The Correct Answer is :     current period    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 415. The distinction between capital and revenue is necessary for the preparation of- Marks:   2+ 0.5-

    Receipts & Payment a/ only    Profit & Loss a/c only    Final Account.    Cash Flow Statement    Funds Flow Statement The Correct Answer is :     Final Account.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 416. Premium received on issue of shares is a-      Marks:   2+ 0.5-

    revenue receipt    capital receipt    deferred revenue receipt    deferred capital receipt    None of the above. The Correct Answer is :     capital receipt

    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 417. Wages paid for erection of machinery must be debited to-      Marks:   2+ 0.5-

    Wages a/c    Machinery a/c    Deferred wages a/c    Repairs a/c    Profit & Loss a/c. The Correct Answer is :     Machinery a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 418. An expenses incurred in order to reduce the operating costs, is -      Marks:   2+ 0.5-

    revenue expenditure    Capital expenditure    Promotional expenditure    Deferred revenue expenditure    None of the above. The Correct Answer is :     Capital expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 419. Amount spent on advertisement campaign, the benefit of which is likely to last for 5 years, is-      Marks:   2+ 0.5-

    revenue expenditure    Capital expenditure    Deferred revenue expenditure    Deferred capital expenditure    None of the above. The Correct Answer is :     Deferred revenue expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 420. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    Loss on sale of fixed assets being capital in nature, should not be debited to P &L a/c    An expenditure intended to benefit the current period is capital expenditure.    The distinction between capital and revenue items is necessary for the preparation of final accounts.    An amount obtained on sale of fixed assets is an example of revenue receipt.    An amount spent on re-conditioning of an old vehicle should be debited to repairs a/c. The Correct Answer is :     The distinction between capital and revenue items is necessary for the preparation of final accounts.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 421. Which one of the following statements is 'false'?      Marks:   2+ 0.5-

    Any expenditure incurred to maintain the assets in the same state of efficiency is revenue expenditure.

    Heavy expenditure of revenue nature the impact of which is expected to last for more than a year is termed as 'Deferred revenue Expenditure'.    Any expenditure which is unreasonably large, is capital expenditure.     An amount obtained on sale of fixed assets is an example of revenue receipt.    An amount spent on re-conditioning of an old vehicle should be debited to repairs a/c. The Correct Answer is :     Any expenditure which is unreasonably large, is capital expenditure.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 422. Which one of the following statements is 'false'?      Marks:   2+ 0.5-

    Any expenditure incurred to maintain the assets in the same state of efficiency is revenue expenditure.    Heavy expenditure of revenue nature the impact of which is expected to last for more than a year is termed as 'Deferred revenue Expenditure'.    Any expenditure which is unreasonably large, is capital expenditure.    Loss on sale of fixed assets being capital in nature, should be debited to P & L a/c.    Carriage paid on purchase of machinery is an example of capital expenditure. The Correct Answer is :     Any expenditure which is unreasonably large, is capital expenditure.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter3 423. The ascertainment of value of stocks from accounting records is known as-      Marks:   2+ 0.5-

    Periodic inventory    Scientific inventory    Perpetual inventory    Continuous stock    None of the above. The Correct Answer is :     Perpetual inventory    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 424. The system which gives a continues information regarding quantity and value of Inventory, is known as-      Marks:   2+ 0.5-

    periodic inventory    perpetual inventory    continuous stock taking    FIFO system    None of the above. The Correct Answer is :     perpetual inventory    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 425. Inventory is valued at cost or net realizable value on account of the accounting principle of -      Marks:   2+ 0.5-

    Consistency    Conservatism    Realisation    Going concern    Accounting period The Correct Answer is :     Conservatism    You did not answer the question.

Explanation : undefined Module : Module C Chapter : Chapter4 426. The test of 'Objectivity' and 'Verifiability' is satisfied by valuing inventory at-      Marks:   2+ 0.5-

    historical cost    net realizable value    current replacement price    price adjustment of completion    All of the above. The Correct Answer is :     historical cost    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 427. Selling expenses are included in inventory valuation by-      Marks:   2+ 0.5-

    trading concerns.    Process industries    Job order industries    Public utilities    Manufacturing industries. The Correct Answer is :     Job order industries    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 428. The value of inventory will be the least in case of-      Marks:   2+ 0.5-

    Item by item method    Aggregate or total inventory method    Group or category method    All of the above.    None of the above. The Correct Answer is :     Item by item method    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 429. Historical inventory costs are reduced to net realizable value because of the a accounting principle of-      Marks:   2+ 0.5-

    consistency    conservatism    going concern    matching    realization. The Correct Answer is :     conservatism    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 430. AS-2 recommends the application of lower of cost or net realizable value by taking - Marks:   2+ 0.5-

    each item    group of several items    aggregate of all items

    either (i) or (ii)    either (ii) or (iii) The Correct Answer is :     either (i) or (ii)    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 431. The cost formula recommended by IAS-2 for valuation of inventories is -      Marks:   2+ 0.5-

    FIFO or Weighted Average    LIFO    NIFO or Latest purchase price    Standard cost    (i) and (ii) The Correct Answer is :     FIFO or Weighted Average    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 432. Plantation and farm production is valued at net realizable value because of -      Marks:   2+ 0.5-

    administrative price    the government regulation    the absence of cost particulars    the difficulty in ascertaining the cost    All of the above. The Correct Answer is :     the difficulty in ascertaining the cost    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 433. Which one of the following statement id 'true'?      Marks:   2+ 0.5-

    Perpetual inventory and continuons stock taking mean one and the same.    Inventory valuation affects only the income statement.    Inventories should be valued at the lower of historical cost and current replacement cost.    The reduction of historical cost to net realizable value is due to the application of the accounting convention of conservatism.    An enterprise is at full liberty to change its policy of stock valuation from time to time to suit its convenience. The Correct Answer is :     The reduction of historical cost to net realizable value is due to the application of the accounting convention of conservatism.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter4 434. Which one of the following statements is 'false'?      Marks:   2+ 0.5-

    LIFO method is suitable fro items which are of non-perishable and bulky type.    Periodic inventory gives a continuous balance of stock in hand.    FIFO method does not correlate the ascertained from accounting records is known as perpetual inventory.    The system whereby stock valuation can be ascertained from accounting records is known as perpetual inventory.    A major objective of accounting for inventories is the proper determination of inventories of the purpose of financial statements. The Correct Answer is :     Periodic inventory gives a continuous balance of stock in hand.    You did not answer the question. Explanation : undefined

Module : Module C Chapter : Chapter4 435. A bill of exchange has      Marks:   2+ 0.5-

    2 parties    3 parties    4 parties    5 parties    any number of parties. The Correct Answer is :     3 parties    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 436. A bill of exchange is drawn by-      Marks:   2+ 0.5-

    debtor    creditor    bank    (i) or (ii)    None of the above. The Correct Answer is :     creditor    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 437. Bills Receivable Book and Bills Payable Book are a part of-      Marks:   2+ 0.5-

    Journal    Ledger    Profit & Loss Account    Balance Sheet    None of the above. The Correct Answer is :     Journal    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 438. Bills Receivable Book and Bills Payable Book are-      Marks:   2+ 0.5-

    Principal books    Subsidiary books    Books containing blank forms for writing bills of exchange    All of the above    None of the above. The Correct Answer is :     Principal books    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 439. A bill drawn on 1st January 2005 for 4 months, will mature for payment on-      Marks:   1+ 0.25-

    30th April 2005    1st May 2005    4th May 2005    3rd May 2005    5th May 2005. The Correct Answer is :     4th May 2005    You did not answer the question.

Explanation : undefined Module : Module C Chapter : Chapter5 440. A bill of exchange contains-      Marks:   2+ 0.5-

    a promise to deliver goods    a promise to pay money    a request to deliver goods    a request to make payment    an unconditional order. The Correct Answer is :     an unconditional order.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 441. Bills Receivable Account and Bills Payable Account are-      Marks:   2+ 0.5-

    real accounts    Personal accounts    Nominal accounts    Representative personal accounts    Both (ii) and (iii) The Correct Answer is :     real accounts    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 442. a promissory note is prepared by-      Marks:   2+ 0.5-

    Buyer    Seller    Commission Agent    Bank    Endorsee. The Correct Answer is :     Buyer    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 443. On the acceptance of a bill, the acceptor debits-      Marks:   2+ 0.5-

    Payee's a/c    Creditor's a/c    Bills payable a/c    Bills receivable a/c    Bank's a/c The Correct Answer is :     Creditor's a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 444. When a bill discounted is dishonoured, the drawer credits-      Marks:   2+ 0.5-

    Bank a/c    Discount a/c    Acceptor's a/c    Bills Receivable a/c    None of the above. The Correct Answer is :     Bank a/c

    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 445. Noting Charges a/c is debited by-      Marks:   2+ 0.5-

    the acceptor    the drawer    the endorser    the presenter    the discounting banker. The Correct Answer is :     the acceptor    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 446. When a bill is endorsed, credit is given to-      Marks:   2+ 0.5-

    Bank's    Acceptor's a/c    Endorser's a/c    Bills Receivable a/c    None of the above. The Correct Answer is :     Bills Receivable a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 447. When a bill endorsed is dishonoured, the drawer credits-      Marks:   2+ 0.5-

    Bills Receivable a/c    Bank a/c    Endorser's (Creditor's)a/c    Acceptors' a/c    Bills Payable a/c. The Correct Answer is :     Endorser's (Creditor's)a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 448. On the dishonour of the bill received through endorsement, debit is given to-      Marks:   2+ 0.5-

    Payee's a/c    Acceptor's a/c    Endorser's a/c    Bills Receivable a/c    Bank a/c The Correct Answer is :     Endorser's a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 449. Retiring a bill under rebate means-      Marks:   2+ 0.5-

    dishonouring the bill    making payment of the bill after the due date    making payment of the bill before the due date    making payment of the bill on the due date    discounting the bill.

The Correct Answer is :     making payment of the bill before the due date    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 450. In case of renewal of the bill, interest is calculated for the period of-      Marks:   2+ 0.5-

    original    fresh bill    original + fresh bill    3 months    4 months. The Correct Answer is :     fresh bill    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 451. In case of renewal of the bill, interest is calculated for the period of-      Marks:   2+ 0.5-

    Drawing and discounting the bill    Discounting and due date    Drawing and due date    3 months    All of the above. The Correct Answer is :     Discounting and due date    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 452. The entry regarding payment of the bill will be passed in the books of the drawer if the bill is-      Marks:   2+ 0.5-

    retained    endorsed    discounted    retained or sent to bank for collection    retained or endorsed. The Correct Answer is :     retained or sent to bank for collection    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 453. Nothing charges are paid to the notary public by-      Marks:   2+ 0.5-

    drawer of the bill    endorsee    bank    either of the above three parties    acceptor of the bill The Correct Answer is :     either of the above three parties    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 454. For payment of noting charges to the notary public-      Marks:   2+ 0.5-

    Noting charges a/c is debited    Bank a/c is debited    Noting charges a/c is credited

    Acceptors a/c is credited    Cash a/c is credited. The Correct Answer is :     Cash a/c is credited.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 455. The payment of Promissory Note is made by its-      Marks:   2+ 0.5-

    maker    payee    bank    Any of above    None of above The Correct Answer is :     maker    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 456. A bill was drawn on 1st January 2005 for six months. The drawee cleared the bill on 4th March 2005. The drawee should be allowed a rebate for-      Marks:   2+ 0.5-

    2 months    3 months    4 months    5 months    6 months. The Correct Answer is :     4 months    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 457. 23. A bill for Rs. 10,000 was dishonoured with Rs. 150 as noting charges. It was renewed with interest of Rs. 250. The amount of the new bill will be -      Marks:   2+ 0.5-

    Rs. 10,000    Rs. 10,150    Rs. 10,250    Rs. 10,400    Rs. 10,100. The Correct Answer is :     Rs. 10,400    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 458. 24. A is drawer and B is acceptor of the bill. A endorses the bill to C. The bill is dishonoured on due date. A will debit-      Marks:   2+ 0.5-

    B's a/c    C's a/c    Bills Receivable a/c    Cash a/c    None of the above. The Correct Answer is :     B's a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5

459. A pays Rs. 10,000 to B on maturity of the bill he bad accepted. A will debit-      Marks:   2+ 0.5-

    B's a/c    Cash a/c    Bills Receivable a/c    Bills Payable a/c    None of the above. The Correct Answer is :     Bills Payable a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 460. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    Bills Receivable a/c is a personal account.    Noting charge is an item of expense for the party paying it.    An accommodation bill is one which is drawn and accepted without any consideration.    In the case of an accommodation bill, discount is to be borne by the drawer as he discounts the bill.    No entry is needed in the case of a bill which is endorsed in favour of a creditor. The Correct Answer is :     An accommodation bill is one which is drawn and accepted without any consideration.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 461. Which one of the following statements is 'false'      Marks:   2+ 0.5-

    Retiring of a bill is different from dishonour of a bill    The journal entries in respect of bills receivable discounted form a bank and of bills receivable sent to the bank for collection, are the same.    An accommodation bill is one which is drawn and accepted without any consideration.    In the case of an accommodation bill, discount is to be borne by the drawer as he discounts the bill.    No entry is needed in the case of a bill which is endorsed in favour of a creditor. The Correct Answer is :     The journal entries in respect of bills receivable discounted form a bank and of bills receivable sent to the bank for collection, are the same.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 462. Which one of the following statements is 'false'?      Marks:   2+ 0.5-

    Retiring of a bill is different from dishonour of a bill    The journal entries in respect of bills receivable discounted form a bank and of bills receivable sent to the bank for collection, are the same.    A bill of exchange contains an unconditional order to a certain person to pay a certain sum of money.    A bill of exchange payable otherwise than on demand can be made payable to the bearer.    No accounting entry is passed in the books of the drawee when a bill receivable is either discounted from the bank or endorsed to some oth The Correct Answer is :     The journal entries in respect of bills receivable discounted form a bank and of bills receivable sent to the bank for collection, are the same.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 463. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    A bill received from a debtors is called Bills Receivable.

    No cancellation entry is required when a bill is renewed.    An accommodation bill can be drawn for the benefit of drawer only.    Rebate at the time of retirement of a bill is a gain for the drawee.    A promissory note can be made payable to the bearer. The Correct Answer is :     Rebate at the time of retirement of a bill is a gain for the drawee.    You did not answer the question. Explanation : undefined Module : Module C Chapter : Chapter5 464. The relationship between the Consignor and Consignee is that of-      Marks:   2+ 0.5-

    Principal and agent    Seller and buyer    Bailor and bailee    Creditor and debtor    None of the above. The Correct Answer is :     Principal and agent    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 465. Consignment Account is of the nature of a-      Marks:   2+ 0.5-

    Real Account    Personal Account    Representative Personal Account    Nominal Account    None of the above The Correct Answer is :     Nominal Account    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 466. Goods sent on Consignment Account is a-      Marks:   2+ 0.5-

    Real Account    Personal Account    Representative Personal Account    Nominal Account    None of the above. The Correct Answer is :     Real Account    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 467. Consignee's Account is a      Marks:   2+ 0.5-

    Real Account    Personal Account    Representative Personal Account    Nominal Account    None of the above. The Correct Answer is :     Personal Account    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 468. When goods are sent on consignment, credit is given to-      Marks:   2+ 0.5-

    Purchase a/c    Consignment a/c    (Consignee's a/c    Sales a/c    Goods sent on Consignment a/c The Correct Answer is :     Goods sent on Consignment a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 469. Del Credere Commission is allowed to the consignee to bear-      Marks:   2+ 0.5-

    normal loss    abnormal loss    (loss on account of bad debts    Loss on account of discount allowed to buyers    All of the above. The Correct Answer is :     (loss on account of bad debts    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 470. Del credere Commission is calculated on -      Marks:   2+ 0.5-

    cash sales    credit sales    total sales    credit sales minus cash sales    cash sales minus credit sales. The Correct Answer is :     total sales    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 471. The normal loss on consignment is credited to-      Marks:   2+ 0.5-

    Consignor's a/c    Consignee's a/c    Consignment a/c    Profit & Loss a/c    None of the above. The Correct Answer is :     Consignment a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 472. Abnormal loss of stock after adjusting for recovery from insurance claim, is debited to - Marks:   2+ 0.5-

    Trading a/c    P & L a/c    Capital a/c    Consignment a/c    Consignee's a/c. The Correct Answer is :     P & L a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined

473. Over-riding commission is calculated on-      Marks:   2+ 0.5-

    cash sales    credit sales    total sales    credit sales minus cash sales    cash sales minus credit sales. The Correct Answer is :     total sales    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 474. Account Sales' indicates -      Marks:   2+ 0.5-

    the net sales effected by the consignee    the net amount due by consignee to consignor    the net commission due by consignor to consignee    All of the above    None of the above. The Correct Answer is :     the net amount due by consignee to consignor    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 475. On sales being made by the consignee of the goods received by him on consignment, the amount is credited by him to-      Marks:   2+ 0.5-

    Goods Received on Consignment a/c    Purchased a/c    Sales a/c    Trading a/c    Consignor's a/c. The Correct Answer is :     Consignor's a/c.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 476. Shradha sends 100 watches to Shubhra at an invoice price of Rs. 1,200 which is cost + 20%. 10 watches are lost in transit and an amount of Rs. 8,000 is received from the insurance company in full settlement. The amount to be credited to Consignment a/c being abnormal loss, is -      Marks:   2+ 0.5-

    Rs. 2,000    Rs. 8,000    Rs. 10,000    Rs. 12,000    None of the above. The Correct Answer is :     Rs. 10,000    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 477. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    'Sales Account' and 'Account Sales' are synonymous terms.    Despatch of goods on consignment amounts to sale of goods by the consignor.    Abnormal loss of stock arises on account of natural and inherent characteristics of goods.    A consignee is paid over-riding commission or bearing the risk of bad debts on amount of credit sales made by him.

    The consignee passes no entry in his books for unsold stock of the consignor, lying with him. The Correct Answer is :     The consignee passes no entry in his books for unsold stock of the consignor, lying with him.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 478. Which one of the following statement is 'false'?      Marks:   2+ 0.5-

    The relationship between the consignor and consignee is similar to the one between the seller and the buyer.    Over-riding commissions is usually paid to the consignee by the consignor for pushing a new product in the market    Del Credere Commission is paid to the consignee by the consignor to bear the risk of bad debts.    The Consignment Account is in the nature of a nominal account.    The cost price of the closing stock is arrived at after including proportionate non-recurring expenses incurred by the consignor and the consignee. The Correct Answer is :     The relationship between the consignor and consignee is similar to the one between the seller and the buyer.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 479. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    for calculating the value of abnormal loss of stock, proportionate non-recurring expenses are not considered.    Account Sales is the Sales Account in the books of the consignor.    Account Sales is a periodical statement rendered by the consignee to the consignor.    When goods are sent on consignment, the Consignee's a/c is debited.    Abnormal loss arises due to natural causes such as evaporation, drying breaking in bulk, etc. The Correct Answer is :     Account Sales is a periodical statement rendered by the consignee to the consignor.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 480. Joint Venture Account is an example of-      Marks:   2+ 0.5-

    Real Account    Personal Account    Representative Personal Account    Nominal Account    None of the above. The Correct Answer is :     Nominal Account    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 481. When goods are purchased for the joint venture, the amount is debited to -      Marks:   2+ 0.5-

    Purchases a/c    Trading a/c    Joint venture a/c    Joint Venture's Capital a/c    None of the above The Correct Answer is :     Joint venture a/c

    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 482. Joint Venture Account with B' is an example of-      Marks:   2+ 0.5-

    Real Account    Personal Account    Representative Personal Account    Nominal Account    None of the above. The Correct Answer is :     Personal Account    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 483. When A advances money to B in the course of joint venture, then A debits such money to- Marks:   2+ 0.5-

    Joint Venture a/c    (Joint Bank a/c    B's Personal a/c    Expenses a/c    Cash a/c. The Correct Answer is :     Joint Venture a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 484. Joint Bank a/c is opened-      Marks:   2+ 0.5-

    When no separate books for the joint venture are maintained    When separate books for the joint venture are maintained.    When only one joint venturer maintains the account.    When all joint venturers maintain the accounts    None of the above. The Correct Answer is :     When separate books for the joint venture are maintained.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 485. In case of Memorandum Method, when there are three co-venturer, each co-venturer w will open in his books for the venuture-      Marks:   2+ 0.5-

    one account    two account    three accounts    four accounts    five accounts. The Correct Answer is :     one account    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 486. Which one of the following statements is true?      Marks:   2+ 0.5-

    A joint venture business has an indefinite life.    Joint venture and partnership are synonymous terms.    Principle of 'mutual agency' is applicable in a joint venture.

    A co-venturer works on commission basis.    A joint venture is an example of 'profit seeking terminable venuture'. The Correct Answer is :     Principle of 'mutual agency' is applicable in a joint venture.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 487. Which one of the following statements is 'false'?      Marks:   2+ 0.5-

    Joint Venture a/c is a nominal account.    The opening of a Joint Bank a/c is an indication that separate books are kept for the joint    There is no difference between the legal character of partnership and that of joint    No accounting entry is passed when the goods are transferred from one venturer to the    Persons agreeing to participate in joint venture business are termed as co-venturers. The Correct Answer is :     There is no difference between the legal character of partnership and that of joint    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 488. In a lease agreement, there are …….. parties.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as co-venturers.Persons agreeing to participate in joint venture business are termed as co-venturers.      Marks:   1+ 0.25-

    two    three    four    five    ten The Correct Answer is :     two    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 489. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    Under leasing agreement, risk of obsolescence is borne by the lessee    Lease rent paid by the lessee is not an expense.    In an operating lease, period of lease is much less as compared to the economic life of the asset.    Lessor connot claim depreciation on leased asset.    Leasing is not a tool of tax planning. The Correct Answer is :     In an operating lease, period of lease is much less as compared to the economic life of the asset.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 490. Which one of the following statement is 'false'?      Marks:   2+ 0.5-

    Depreciation on asset acquired under hire-purchase system is calculated on the cash price    If the hire-buyer fails to pay any instalment, the vendor has a right to seize the goods.    'Here-purchase /stock' and 'Instalments Not Yet Due' are synonymous terms.    'Hire-purchase Trading Account' is prepared in case the goods of small value are the    On seizure of the goods by hire-vendor, the hire-buyer transfers the balance of the

The Correct Answer is :     On seizure of the goods by hire-vendor, the hire-buyer transfers the balance of the    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 491. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    The ownership of property in goods passes to the hire-buyer as soon as the hire-vendor    Interest is calculated on the hire-purchases price at given rate of interest.    In hire-purchase system, if rate of interest is not give, the amount of interest is divided equally over all the hire-purchase instalments.    Depreciation on asset acquired under hire-Purchase system is calculated on the cash price of the asset.    The buyer cannot dispose off goods purchased under Instalment The Correct Answer is :     Depreciation on asset acquired under hire-Purchase system is calculated on the cash price of the asset.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 492. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    The buyer can dispose off goods purchased on instalment basis.    On default of payment of a an instalment, the seller cannon take back the possession of g good s in hire-purchase system.    The buyer has right to terminate the contract in instalment system.    Ownership does not pass to the buyer immediately in instalment sale.    Hire-Purchase System' and 'Instalment Payment System' are synonymous terms. The Correct Answer is :     The buyer can dispose off goods purchased on instalment basis.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 493. In case of hire-purchase, Asset Account is debited with-      Marks:   1+ 0.25-

    Hire-Purchase price    Cost price to the seller    Cash price    Cost price + interest    Cash price - interest. The Correct Answer is :     Cash price    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 494. The hire-buyer charges depreciation an-      Marks:   2+ 0.5-

    Cash price of the asset    Hire-Purchase price of the asset    Higher of the two.    Lower of the tow.    Non of the above. The Correct Answer is :     Cash price of the asset    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined

495. The amount of interest is credited by the hire-buyer to-      Marks:   2+ 0.5-

    Assets a/c    Interest a/c    Vendor's a/c    P & L a/c    None of the above. The Correct Answer is :     Vendor's a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 496. One seizure of the goods by the hire-vendor, the hire-buyer transfers the balance of the asset account to -      Marks:   2+ 0.5-

    Goods Returned a/c    Profit & Loss a/c    Hire Vendor's a/c    Trading a/c    None of the above. The Correct Answer is :     Hire Vendor's a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 497. The cost of goods sold is transferred by the hire-vendor to-      Marks:   2+ 0.5-

    Purchases a/c    Sales a/c    Hire-Purchases trading a/c    P & L a/c    None of the above. The Correct Answer is :     Purchases a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 498. In case of sale under the Instalment Payment System, total interest receivable by the s seller is credited to -      Marks:   1+ 0.25-

    Interest a/c    Interest Suspense a/c    Sales a/c    Trading a/c    None of the above. The Correct Answer is :     Interest Suspense a/c    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 499. Maintenance Suspense Account for free repairs of asset is opened by-      Marks:   2+ 0.5-

    Buyer    Seller    Both of them    As agreed between the two    None of the above. The Correct Answer is :     Seller    You did not answer the question.

Explanation : undefined Module : Module C Chapter : undefined 500. Under hire-purchase system, the asset can be got insured by -      Marks:   2+ 0.5-

    Buyer    Seller    Both of them    As agreed between the two.    None of the above. The Correct Answer is :     Seller    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 501. In hire-purchase system, hire-buyer can maintain his accounts under-      Marks:   2+ 0.5-

    Asset Accrued Method    Total Cash Price Method    Any of the two methods    As required by the seller    None of the above. The Correct Answer is :     Any of the two methods    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 502. If rate of the interest is not given, but amount of instalments are equal and periods of instalments are also equal, the amount of interest included in the instalments is calculated by- Marks:   2+ 0.5-

    Inverse Reatio Method    Products Method    Annuity Method    All of the above    None of the above The Correct Answer is :     Inverse Reatio Method    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 503. Under the Hire-Purchase System, the buyer becomes the owner of goods-      Marks:   2+ 0.5-

    immediately after the delivery of goods.    Immediately after the down payment    Immediately after the signing of the agreement    Immediately after the payment of the first instalment    Immediately after the payment of the last instalment. The Correct Answer is :     Immediately after the payment of the last instalment.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 504. 17. Under the Instalment Payment System of Purchase, Interest Suspense a/c in the books of the buyer is -      Marks:   2+ 0.5-

    debited with the interest payable in respect of instalments due.    Debited with the interest payable in respect of instalments not due.    Debited with the difference between total instalment price and cash price.

    Credited with the difference between the total instlament price and cash price.    None of the above. The Correct Answer is :     Debited with the difference between total instalment price and cash price.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 505. Stock out on the hire at cost price is ascertained by-      Marks:   2+ 0.5-

    taking the cost in the proportion of paid instalments to total intalments    taking the cost in the proportion of value of unpaid instalments to hire-purchase price    deducting the gross profit margin from instalment not due the unpaid.    All of the above    None of the above. The Correct Answer is :     deducting the gross profit margin from instalment not due the unpaid.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 506. Which one of the following statements is 'true'?      Marks:   2+ 0.5-

    The Income & Expenditure Account does not make a difference between capital and r    A heavy cash balance in the Receipts and Payments Account at the end of the    Income & Expenditure Account records all incomes and expenses received or paid during    Receipts & Payment account is a nominal account.    Income & Expenditure Account is a real account. The Correct Answer is :     A heavy cash balance in the Receipts and Payments Account at the end of the    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 507. Which one of the following statements is 'false'?      Marks:   2+ 0.5-

    Receipts & Payments Account starts with an opening balance.    Receipts & Payment Account is a real Account.    Income & Expenditure Account is a nominal account    Receipts & Payment Account is a personal account.    A non-trading institution also prepares its final accounts. The Correct Answer is :     Receipts & Payment Account is a personal account.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 508. Amount received from the sale of scrap by a club is treated as-      Marks:   2+ 0.5-

    an income    an expense    an asset    a liability    None of the above. The Correct Answer is :     an income    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined

509. Subscription received in advance during the current year is-      Marks:   2+ 0.5-

    an expense    an income    an outstanding expenditure    an accrued income    a liability. The Correct Answer is :     a liability.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 510. Life membership fee received by a non-trading institution is-      Marks:   2+ 0.5-

    an expense    an income    an asset    an accrued income    a liability. The Correct Answer is :     a liability.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 511. Tournament expenses of the sports club are-      Marks:   2+ 0.5-

    recorded as assets    recorded as deferred revenue expenditure    posted as expenditure    recorded as liability    deducted from tournament fund at the liabilities side a balance sheet. The Correct Answer is :     deducted from tournament fund at the liabilities side a balance sheet.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 512. Receipts & Payment Accounts is a-      Marks:   2+ 0.5-

    Personal account    Real account    Nominal account    Either Real Account or Personal Account    Either Real Account or Nominal Account The Correct Answer is :     Real account    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 513. Income & Expenditure account is a -      Marks:   2+ 0.5-

    Real account    Personal account    Nominal account    Either Real Account or Personal Account    Either Real Account or Nominal Account. The Correct Answer is :     Nominal account    You did not answer the question. Explanation : undefined

Module : Module C Chapter : undefined 514. Income & Expenditure Account is prepared by-      Marks:   2+ 0.5-

    trading institutions    manufacturing industry    banks    non-trading institution    all institutions. The Correct Answer is :     non-trading institution    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 515. Subscription outstanding of a club during the previous year was Rs. 20,000 and received During the current year Rs. 2,40,000. Subscription shown in the credit side of income & Expenditure a/c will be-      Marks:   2+ 0.5-

    Rs. 20,000    Rs. 2,20,000    Rs. 1,80,000    Rs. 2,40,000    Rs. 2,60,000 The Correct Answer is :     Rs. 2,20,000    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 516. The Credit balance in an income & Expenditure a/c indicates -      Marks:   2+ 0.5-

    the excess of expenditure over income    the excess of income over expenditure    the excess of cash receipts over cash payments    the excess of cash payments over cash receipts    None of the above. The Correct Answer is :     the excess of income over expenditure    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 517. Which one of the following items should not be entered in Receipts and Payment a/c of a Non-trading organization?      Marks:   2+ 0.5-

    Sales of old newspapers and magazines    Expenses paid for the previous year    Loss on sale of old furniture.    Subscriptions received in advance    Donation received for the current year. The Correct Answer is :     Loss on sale of old furniture.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 518. Which one of the following items will not appear in the Balance Sheet of non-trading Organization.      Marks:   2+ 0.5-

    Donations received during the year    Subscription received in advance    Entrance fee paid by the new members

    Subscriptions relating to previous years received during the year    All of the above. The Correct Answer is :     Entrance fee paid by the new members    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 519. An income arising from special fund of a club will be shown in the-      Marks:   2+ 0.5-

    Special fund in the Balance Sheet    Credit side of Income & Expenditure a/c    Special fund in the Balance Sheet    (i) and (iii)    (i) and (iii) The Correct Answer is :     Special fund in the Balance Sheet    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 520. The Income & Expenditure a/c of a club shows subscriptions of Rs. 50,000. Subscriptions Accrued at the beginning of the year are Rs. 5,000 and subscriptions accrued at the end of the year are Rs. 7,500. The amount that figures in Receipts & Payment a/c under the head 'Subscriptions' will be-      Marks:   2+ 0.5-

    Rs. 42,500    Rs. 47,500.    Rs. 50,000.    Rs. 55,000.    Rs. 57,500. The Correct Answer is :     Rs. 47,500.    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 521. In a club, amount received fro special fund is Rs. 17,000 and expenditure incurred from The fund is Rs. 9,000. the amount to be credited to Income & Expenditure a/c would be Marks:   2+ 0.5-

    Nil    Rs. 8,000    Rs. 9,000    Rs. 17,000    Rs. 26,000. The Correct Answer is :     Nil    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 522. The Receipts & Payment a/c of a cricket club shows the following details -Subscriptions : Current received Rs. 21,000 Arrears received Rs. 1,000 Advance received Rs. 1,600There are 12,000 members each of them paying an annual subscription of Rs. 20. The amount to be credited to Income & Expenditure a/c will be-      Marks:   2+ 0.5-

    Rs. 21,600    Rs. 22,600    Rs. 23,600    Rs. 24,000    Rs. 25,000 The Correct Answer is :     Rs. 24,000    You did not answer the question.

Explanation : undefined Module : Module C Chapter : undefined 523. Stock of stationery of a club on 1st January 2005 Rs. 3,000; Creditors for stationery on 31st December 2005 Rs. 2,000; Opening balance of creditors for stationery Rs. 3,000; Payment for stationery during the year 2005 Rs.14,000; Stock of stationery on 31st December 2005 Rs. 2,000. The amount to be charged for stationery to the income & Expen      Marks:   2+ 0.5-

    Rs. 13,000    Rs. 14,000    Rs. 15,000    Rs. 16,000    Rs. 17,000. The Correct Answer is :     Rs. 14,000    You did not answer the question. Explanation : undefined Module : Module C Chapter : undefined 524. Discount on issue of shares is a-      Marks:   2+ 0.5-

    revenue loss    capital loss    deferred revenue expenditure.    revenue and capital loss both.    Non of the above. The Correct Answer is :     capital loss    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 525. call paid in Advance Account is shown separately in-      Marks:   2+ 0.5-

    assets side of Balance sheet    liabilities side of balance sheet    debit side of P&L a/c    credit side p&L a/c    debit side of Trading a/c The Correct Answer is :     liabilities side of balance sheet    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 526. Interest @ ... is charged on calls in arrear according to Table 'a' of the Companies Act. Marks:   2+ 0.5-

    3%    5%    6%    9%    12% The Correct Answer is :     6%    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 527. The rate of discount on share cannot execeed-      Marks:   2+ 0.5-

    3%    5%    6%

    10%    12% The Correct Answer is :     10%    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 528. Capital Reserve is formed if shares are-      Marks:   2+ 0.5-

    P & L a/c    Share Capital a/c    Capital Reserve.    Goodwill a/c    General Reserve The Correct Answer is :     Capital Reserve.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 529. Capital Resrve is formed ifshares are-      Marks:   2+ 0.5-

    issued    forfeited    forfeited and re-issued    All of the above    None of the above The Correct Answer is :     forfeited and re-issued    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 530. Discount on re-issue of forfeited shares should not exceed-      Marks:   2+ 0.5-

    6% of the subscribed capital    12% of the re-issued capital.    10% of the authorised capital    9% of the paid up capital    the amount received so far on forfeited shares. The Correct Answer is :     the amount received so far on forfeited shares.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 531. Preference Shareholders have a prefrence as regards-      Marks:   2+ 0.5-

    dividend    intrest    commision    refund of capital    divident and refund of capital . The Correct Answer is :     divident and refund of capital .    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 532. Calls money on shares should not exceed .....of the face value of the share.      Marks:   2+ 0.5-

    1/2    1/3

    1/4    1/5    1/6 The Correct Answer is :     1/4    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 533. A company had issued and received share capital of shares (face value RS.10) and called application@ Rs5/- and allotment money Rs 5-/ Holders of 200 shares failed to pay the allotment money.What amont will the company forfeit?      Marks:   2+ 0.5-

    Rs.500    Rs1,000    Rs2,000    Rs 10.000    Rs20,000 The Correct Answer is :     Rs1,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 534. A company issues 3,00,000 share of Rs10 each at discount of Rs1 per share.what will be the amount of paid up capital?      Marks:   2+ 0.5-

    Rs3,00,000    Rs.2,70,000    Rs.30,00,000    Rs. 27,00,000    None of the above. The Correct Answer is :     Rs.30,00,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 535. A company issues3,00,000 share of Rs. 10 each at a prmium of Rs. 2 per share. What will be the amount of paid up capital?      Marks:   2+ 0.5-

    Rs. 30,00,000    Rs. 6,00,000    Rs. 36,00,000    Rs. 24,00,000    None of the above The Correct Answer is :     Rs. 30,00,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 536. A company came out with a public issue of 1,00,00 shares of Rs. 10 each and called Rs. 4 on allotment . What will be the balance in shares Forfeited a/c?      Marks:   2+ 0.5-

    Rs.10,000    Rs.15,000    Rs.20,000    Rs.25,000    Non of the above The Correct Answer is :     Rs.10,000    You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 537. Which one of the following statements is true?      Marks:   2+ 0.5-

    Share Premium amount can distributes as dividend amongst the shareholders.    In the very first year of working of the company shares can be issued at a discount.    Capital Redemption Reserve can be utilise for payment of dividend.    Court permission is not required for isssur of shares at a discount.    If calls on shares are not received, company can forfeit these shares. The Correct Answer is :     If calls on shares are not received, company can forfeit these shares.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 538. Which one of the following statements is false?      Marks:   2+ 0.5-

    Shares of a limited company can be classified into preference and equity shares.    prefrence shares enjoy prefrence as to divided and repayment of capital over equity shares.    Paid up capital is the amount with which the company is formed .    Capital subscribeed by the public is called subscriberd capital.    Issue of non-voting shares must be authorised by Articales of Association of the company. The Correct Answer is :     Paid up capital is the amount with which the company is formed .    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 539. The main object of permitting the company to issue non-voting equity shares is-- Marks:   2+ 0.5-

    to give higher dividend    to give perference on re-payment    to raise resources without losing management control    All of the above    Non of the above. The Correct Answer is :     to raise resources without losing management control    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 540. Which one of the following conditions is 'fase' reference to issue of non-voting equity share?      Marks:   2+ 0.5-

    For issue of non- voting shares, a special resolution must be passed at the general body meeting .    Holders of non-voting equity share are entitled to all right including bonus shares but do not enjoy voting rights.    Only public company limited by share can issues non-voting equity shares    Only public company limited by shares can issue non-voting equity shares.    No company will be permitted to convert shares with voting rights into the shares withought voting right.. The Correct Answer is :     Only public company limited by share can issues non-voting equity shares    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 541. If a share of Rs 100 ,on which Rs 60 have been paid ,is forefeited , it can be re-issued at the minimum price of-      Marks:   2+ 0.5-

    Rs 40

    Rs.60    Rs.100    Rs.140    Rs.160 The Correct Answer is :     Rs 40    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 542. If the preference share capital of Rs1,00,000 is to be redeemed, and for this 5.000 equity share of Rs . 10 each have been issued at discount of10%,the amount to be transferred to capital redemtion /Reserve will beIf the preference share capital of Rs1,00,000 is to be redeemed, and for this 5,000 equity shares of rs. 10 each have been issued at a discount of 10% , the amount to be transferred to Capital Redemption Reserve will be.-      Marks:   2+ 0.5-

    Rs.45,000.    Rs.50,000.    Rs.55,000    Rs.60,000    Rs.5,000 The Correct Answer is :     Rs.55,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 543. Which one of the following is a 'false ' circumstance with reference to issue of bonuse shares?      Marks:   2+ 0.5-

    A company can issue shares if its articals of association so provide    Sanction of Controller of Capital Issues is Not required for issue of bonus shares.    Bonus shares can be isued when the company has good profits but does not have sufficient cash resources to pay.    Bonus shares can be issuied when the company wishes to builed up reserves for expantion or for repayment of long -term liabilities.    Bonus shares can be issued when the company whishes to utilise certain reserves ,like share premium,Capital Reserve, etc. The Correct Answer is :     Sanction of Controller of Capital Issues is Not required for issue of bonus shares.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 544. The difference between subscribed capital and called -up capital is called.-      Marks:   2+ 0.5-

    paid up capital    uncalled capital.    calls in advance    calls in arrear    authorised capital. The Correct Answer is :     uncalled capital.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 545. When shares are forfeited, the Share Capital a/c is debited by-      Marks:   2+ 0.5-

    called up amount    paid up amount    call in arrear

    calls received in advance    nominal value of such shares The Correct Answer is :     called up amount    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 546. Premium received on issue of shares can be used for-      Marks:   2+ 0.5-

    Redemption of debentures    paying fees for auditors    paying fees for directors    writing off preliminary expenses    All ofthe above. The Correct Answer is :     writing off preliminary expenses    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 547. The profit on re-issue of forfeited shares is transferred to -      Marks:   2+ 0.5-

    Capital Redemption Reserve    Devlopment Fund    Profit & Loss a/c    Capital Reserve    General Reserve The Correct Answer is :     Capital Reserve    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 548. Rights shares mean the shares which are -      Marks:   2+ 0.5-

    issued to directors of the company    issuied for a consideration other than cash    offered to the exiting shareholders    issuied to holders of convertible debentures    issuied to promoters of the company for thier services. The Correct Answer is :     offered to the exiting shareholders    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 549. Unless otherwise stand,a preference shre is alway deemed to be-      Marks:   2+ 0.5-

    Cumulative, participating and non-convertible    Non-cumulative, participating and non-convertible    cumulative, non-participating and non-convertible    Non-cumulative, non participating and non-nonconvertible    cumulative, participating and convertible. The Correct Answer is :     cumulative, non-participating and non-convertible    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 550. A company issuied shares of Rs 100 each on which Rs 80 per share is called up.Ashareholder has not paid the call Rs . 20 per share on 100 shares .The amount credited to share capital in respect of him will be.-      Marks:   2+ 0.5-

    Rs,2,000    Rs.6,000    Rs.8,000    Rs.10,000    Rs.12,000 The Correct Answer is :     Rs.8,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 551. An equity share of Rs 100 on Which Rs. 100 on which Rs. 80 is called up, is forfeited for non-payment of the first call of Rs,20 per share . If the share is to be re-issuied as fully paid up , the minimum amount to be collected will be -      Marks:   2+ 0.5-

    Rs.20    Rs.40    Rs.60    Rs.80    Rs.100 The Correct Answer is :     Rs.40    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 552. 100 shares of Rs10 each of which Rs 8 per share is called up, are forfeited for non payment of first call of Rs2 per Share. Of these shares, 60 were re- issued at Rs. per share. The amount to be transferred to Capital Reserve, will be.-      Marks:   2+ 0.5-

    Rs.120    Rs.240    Rs.360    Rs.480`    Rs.600 The Correct Answer is :     Rs.240    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 553. ...Is called the Charter of the company.      Marks:   2+ 0.5-

    Memoradum of Association    Articles of Association    prospectus    List of members    All of the above. The Correct Answer is :     Memoradum of Association    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 554. A. private company has to provide in its Articals ofassociation-      Marks:   2+ 0.5-

    for permitting free transfer of its shares    for prohibiting transfer of its shares    for restring transfer of its shares    for all of the above.    for non of the above The Correct Answer is :     for restring transfer of its shares    You did not answer the question.

Explanation : undefined Module : Module D Chapter : Chapter1 555. Rgisterred Company are formed under-      Marks:   2+ 0.5-

    for Partenership Act    the Companies Act    an act passed by the parliament    international law    Non of the above. The Correct Answer is :     the Companies Act    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 556. A company comes into existence when it gets the certificate of      Marks:   2+ 0.5-

    incorporation    commencomg the business    Pollution department    income-tax department    non of the above The Correct Answer is :     incorporation    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 557. A document inviting deposit from the or inviting offers from the public to subscribe for the shares and debentures of a company is termed as-      Marks:   2+ 0.5-

    Memorandum of Association    Articles of Association    Minutes Book    Register of charges    prespectus The Correct Answer is :     prespectus    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 558. Which one of the following statements is false      Marks:   2+ 0.5-

    A private company restricts the right of its members to tranfers shares    A private company limits the number of members to fifty    A private company prohibits any invitation to the public to subscribe for its share or debentures    A private company may be registered with only two members    A private company is required to write only Ltd at the end of its name The Correct Answer is :     A private company is required to write only Ltd at the end of its name    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 559. A government company is one whose ....of the paid up share capital is held by the Central Govt. or by ttwo or more of them together.      Marks:   2+ 0.5-

    50%    51%

    not less than 51%    75%    100% The Correct Answer is :     not less than 51%    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 560. A company which is incorporated out side India but which has a place of business in india , is termed as/an-      Marks:   2+ 0.5-

    Statutory Company    Indian Company    Foreign Company    Holding Company    Subsidiary Company The Correct Answer is :     Foreign Company    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 561. Which one of the following statments is true      Marks:   2+ 0.5-

    Partnership is are relationship between two persons only    Liability of partners is always limited .    A company does not have a perpectual succe sion.    The common scal is affixed on all important documents and contracts of the company    The maximum number of members of is 50 in case ofa public company . The Correct Answer is :     The common scal is affixed on all important documents and contracts of the company    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 562. which oneof the following statements is false?      Marks:   2+ 0.5-

    shareholders liability is limited in case of a public company .    shares are not freely transferable in a private limited company .    The minimum number of members is 7 and maximum unlimited in caseof a public company .    A company incorporated by a special Act of Parliament is called a statutory company.    Minimum number of directors in private company is three. The Correct Answer is :     Minimum number of directors in private company is three.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 563. Shareholders get-      Marks:   2+ 0.5-

    fees    commission    interest    dividend    royalty The Correct Answer is :     dividend    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

564. share Allotment Account is -      Marks:   2+ 0.5-

    Real Account    Personal Account    Nominal Account    Asset Account    None of the above. The Correct Answer is :     Personal Account    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 565. Premium received on issue of shares is shown in-      Marks:   2+ 0.5-

    assets side of Balance Sheet    liabilities side of balance sheet    debit side of P & L a/c    credit side of P & L a/c    credit side of cash Account The Correct Answer is :     liabilities side of balance sheet    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 566. Disccount allowed on issue of shares is shown in -      Marks:   2+ 0.5-

    assects side of Balance sheet    liabilities side of Balance sheet    credit side of P & L a/c    credit side of p&L a/c.    debit side of share capital a/c. The Correct Answer is :     assects side of Balance sheet    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 567. Overdraft facility is given by the bank only to such customer who already has------- Marks:   2+ 0.5-

    Saving bank a/c    Fixed Deposit a/c    Recurring a/c    Current a/c    Any of the above The Correct Answer is :     Current a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 568. In the new formats of final accounts of a bank, Balance Sheet consist of Schedule No1 to------- and profit &loss a/c from Schedule No. 13 to----------      Marks:   2+ 0.5-

    5:16    7:16    12:16    10;14    6:12 The Correct Answer is :     12:16    You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 569. Claims against the bank not acknowledged debt is a contingent liability and is shown in Schedule No-------- of the balance sheet.      Marks:   2+ 0.5-

    5    7    12    15    16 The Correct Answer is :     12    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 570. Non -banking asset acquired in satisfaction of claims are shown under Schedule No 11 bearing the heading------      Marks:   2+ 0.5-

    Other Asset    Non banking Asset    Advances    Investments    Money at Call and Short Notice. The Correct Answer is :     Other Asset    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 571. When the report of bad financial position of a customer is recived , the bank for the interest due, debits Customer's a/c and credits      Marks:   2+ 0.5-

    Interest a/c    Interest Suspense a/c    Oustanding Interest a/c    Accrued Interest a/c    None of the above The Correct Answer is :     Interest Suspense a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 572. Which one of the following statements is ' true'      Marks:   2+ 0.5-

    State Bank of India is not a nationalised bank    Schedule No.9 10 11 and 12 are shown in profit & loss Account of a bank.    Rebate on bills discounted is the discount recived by bank in the previous year.    Two or more persons cannot take a joint loan from a bank.    Bank's advanced include loans,cash credits, overdrafts,and discounting and purchase of bills. The Correct Answer is :     Bank's advanced include loans,cash credits, overdrafts,and discounting and purchase of bills.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 573. Which one of the following statements is 'false'      Marks:   2+ 0.5-

    A bank must at least 20% of net profits of the year prior to declaration of dividend to statutory reserve , unless the central government condones this binding.    slip system in a bank is not a diffrent accounting system but a method of rapid posting it.

the books of account.    Schedule 6 deals with ' Other liabilities and Provision' of a bank .    State Bank of india is a nationalised bank.    Non -banking assets are the tangible assetes which a bank recovers as a claim against non-payment of its advances. The Correct Answer is :     Schedule 6 deals with ' Other liabilities and Provision' of a bank .    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 574. Banks prepare their accounts for the      Marks:   2+ 0.5-

    Calender Year    Financial Year    Assessment Year    Diwali Year    Co-operative Year. The Correct Answer is :     Financial Year    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 575. For a bank, Rebate on bills discounted is an item of----      Marks:   2+ 0.5-

    an income    an expenditure    an accrued income    an income recived in Advance    an asset The Correct Answer is :     an income recived in Advance    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 576. The heading 'Other Assets'does not include.      Marks:   2+ 0.5-

    Gold    Silver    Interest accured    inter- branch adjustments (Dr)    All of the above The Correct Answer is :     Gold    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 577. A non - banking asset is      Marks:   2+ 0.5-

    Furniture, Fixture and Fittings    Office equipment    money at call and short notice    an asset acquired from the debtors in satisfaction of claims against them    None of the above The Correct Answer is :     an asset acquired from the debtors in satisfaction of claims against them    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

578. When income of a bank is to be recognised on cash basis, a distinction must be made between.      Marks:   2+ 0.5-

    Current and non -current assets    Banking and non banking assets    Monetary and non monetary assets    Performing and non- performing assets    Tangible and intengible assets The Correct Answer is :     Performing and non- performing assets    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 579. A non - performing asset of a bank is      Marks:   2+ 0.5-

    cash balance    cash balance with RBI    Monetary at call and short notice    An asset which cases to generate income    none of the above The Correct Answer is :     An asset which cases to generate income    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 580. Banks show the provision for Income tax under the head      Marks:   2+ 0.5-

    deposit    Borrowings    Contigent liability    Contigency Accounts    Other Liabilities and provision The Correct Answer is :     Other Liabilities and provision    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 581. ......... is Peculiar of banking company accounts.      Marks:   2+ 0.5-

    A.T.M.    Bank Draft.    Cheque Book.    Fixed Deposit.The Correct Answer is :     Cheque Book.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 582. The various item of assets in the Balance Sheet of banking company are arranged in order of----------      Marks:   2+ 0.5-

    liquidity    permanency    tangibility    floating    any order, The Correct Answer is :     liquidity    You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 583. bills Recivables being Bills for collection appear on -------- side of Balance sheet of banking company.      Marks:   2+ 0.5-

    only asset side    only liabilities side    both sides    sometimes on asset side and sometimes on liability side.    in one year on asset side and next year liabilities side. The Correct Answer is :     both sides    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 584. Rebate on bills discounted for a banking company is----      Marks:   2+ 0.5-

    an expense    an income    a banking asset    a liability    a non -banking asset. The Correct Answer is :     a liability    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 585. A non -banking asset must be disposed of by the banking company within -------- Marks:   2+ 0.5-

    two years    five years    seven years    one years    ten years The Correct Answer is :     seven years    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 586. The formats of the profit & loss Account and balance sheet in the case of a banking company have been revised w.e.f.      Marks:   2+ 0.5-

    1st April 1949    1st April 1991    1st April 1992    1st April 2000    1st April 2004 The Correct Answer is :     1st April 1991    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 587. This item is not included in schedule 13 of profit & loss Account of a bank.      Marks:   2+ 0.5-

    income on investment    interest on advances    intrest on borrowings from R.B.I    all of the above    None of the above The Correct Answer is :     interest on advances

    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 588. The regulation of banks in india before 1936 was done      Marks:   2+ 0.5-

    under indian Banking Companies Act    Under Banking Regulation Act    Under Companies act    All of the above    None of the Above. The Correct Answer is :     Under Companies act    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 589. Fourteen major banks were nationalised in the year --------      Marks:   2+ 0.5-

    1969    1971    1973    1993    2000 The Correct Answer is :     1969    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 590. in the amended formats of final accounts of a bank, the number of total schedules prescribed are-----------      Marks:   2+ 0.5-

    8    10    12    16    20 The Correct Answer is :     16    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 591. Indian Banking companies Act 1949 was changed in 1966 with the new name of -------------- Marks:   2+ 0.5-

    Indian banking Regulation Act, 1949    Indian banking Regulation Act, 1966    Indian banking companies Act, 1966    Indian Banking Act , 1966    Banking in india Act , 1966 The Correct Answer is :     Indian banking Regulation Act, 1949    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 592. The rate as percentage of net profits of Statutory Reserve to be maintained by a bank under Sec.17 of Indian Banking Regulation Act , 1949, is---------      Marks:   2+ 0.5-

    10%    15%    20%

    25%    30% The Correct Answer is :     20%    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 593. In a banking company, intrest on doubtful debts is credited to---------      Marks:   2+ 0.5-

    customer's a/c    Interest Suspense a/c.    Interest a/c.    Accrued Interest a/c    Oustanding Interest a/c. The Correct Answer is :     Interest Suspense a/c.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 594. When Customer get a bill discounted, the bank debits Bills Discounted a/c and credits-------      Marks:   2+ 0.5-

    customer a/c    Interest Suspense a/c    Interest a/c    accrued Interest a/c    Oustanding Interest a/c. The Correct Answer is :     customer a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 595. A and B are partners in the ratio of 5 : 3. They admit C for 1/4th share which he acquires 3/4th from A and 1/4th from B. C pays Rs. 20,000 for his share of goodwill. A and B will be credited by Rs...... and Rs...... , respectively-      Marks:   2+ 0.5-

    Rs. 5,000: Rs; 15,000    Rs. 10,000; Rs. 10,000    Rs. 15,000; Rs. 5,000    Rs. 12,000; Rs. 8,000    Rs. 8,000; Rs. 12,000 The Correct Answer is :     Rs. 15,000; Rs. 5,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 596. A and B are partners sharing profits in 6 : 3. C is admitted for 1/4th and ratio of A and I will be .... and the new ratio of all the partners will be....      Marks:   2+ 0.5-

    2 : 3; 15 : 8 : 9    3 : 5; 15 : 8 : 9    5 : 3; 9 : 8 : 15    5 : 3; 15 : 9 : 8    3: 5; 15 : 9 : 8 The Correct Answer is :     5 : 3; 15 : 9 : 8    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

597. On the incoming of new partner, assetsand liabilities of the firm are revalued for the- Marks:   2+ 0.5-

    benefit of the new partner    benefit of the old patners    benefit of the old partners who are sacrificing    benefit of the of new and the old partners    All of the above The Correct Answer is :     benefit of the of new and the old partners    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 598. Revaluation of goodwill must be effected through-      Marks:   2+ 0.5-

    Revaluation a/c    Realisation a/c    Partners' Capital a/cs    P & L a/c    P & L Appropriation a/c. The Correct Answer is :     Partners' Capital a/cs    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 599. On the admission of a new partner, the balances of reserves abd accumulated profits transferred to-      Marks:   2+ 0.5-

    old partners in th old ratio    old partnersin the new ratio    old partners in the sacrificing ratio    old partners in the capital ratio    old and new partners in the new ratio The Correct Answer is :     old partners in th old ratio    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 600. A is admitted as a new partner and agress to pay Rs. 12,000 as premium/goodwill, but brings only Rs. 10,000 in cash. The balance of Rs. 2,000 must be debited to-      Marks:   2+ 0.5-

    A's Capital a/c    A's Current a/c    A's Loan a/c    Revaluation a/c    Goodwill a/c. The Correct Answer is :     A's Current a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 601. The sum of the shares sacrificed by old partners in favour of the new partner, is equal to- Marks:   2+ 0.5-

    the total share of the firm    the share given to the new partner    the share retained by the old partners    the share given to new partner less the share gained by the old partners    None of the above. The Correct Answer is :     the share given to the new partner    You did not answer the question.

Explanation : undefined Module : Module D Chapter : Chapter1 602. A and B are partners sharing profits and losses in the ratio of 2 : 3. They admit C into the firm giving him 25% share. If C brings in Rs 30,000 as his share of capital and capitals are to be kept in the profit sharing ratio, B's capital should be-      Marks:   2+ 0.5-

    Rs. 36,000    Rs. 45,000    Rs. 48,000    Rs. 54,000    Rs. 60,000 The Correct Answer is :     Rs. 54,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 603. A and B are partners in th ratio of 4 : 3. They admit C who brings in Rs. 35,000 towards goodwil . The new profit sharing ratio is 3 : 3 : 2. A will get-      Marks:   2+ 0.5-

    Rs. 15,000    Rs. 20,000    Rs. 27,000    Rs. 30,000    Rs. 35,000 The Correct Answer is :     Rs. 27,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 604. A and B are partners in the ratio of 4 : 1. They admit C into partnership and decid to share the profit equally in the new firm. C pays for premium/goodwill Rs. 30,000. In the connection-      Marks:   2+ 0.5-

    A and B will receive Rs. 15,000 eacg.    A will receive Rs. 24,000 and B RS. 6,000.    A will receive the entire Rs. 30,000.    B will receive the entire Rs. 30,000    A will receive Rs. 42,000 and B will pay Rs. 1: 000. Hint. Sacrifice Ratio = Old Ratio-New Ratio Gaining Ratio = New Ratio -Old Ratio A's scrifice =4/5-1/3=7/15 P's gain =1/3 /5=2/15 C pay for goodwill for 1/3 ratio = Rs. 30,000 Therefore, for 1 it will be 30,000 X 3/1 therefor, for/15th gain, it will be 30,000 X 3/1X2/15= Rs. 12,000 Thus, B wil pay Rs. 12,000, C will pay Rs. 30,000 and A will receive 12,00+30,000=Rs. 42,000 The Correct Answer is :     A will receive Rs. 42,000 and B will pay Rs. 1: 000. Hint. Sacrifice Ratio = Old Ratio-New Ratio Gaining Ratio = New Ratio -Old Ratio A's scrifice =4/5-1/3=7/15 P's gain =1/3 /5=2/15 C pay for goodwill for 1/3 ratio = Rs. 30,000 Therefore, for 1 it will be 30,000 X 3/1 therefor, for/15th gain, it will be 30,000 X 3/1X2/15= Rs. 12,000 Thus, B wil pay Rs. 12,000, C will pay Rs. 30,000 and A will receive 12,00+30,000=Rs. 42,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 605. A and B are partners sharing profits in the ratio 2 : 1. They adnut C as a partner for one-third share which he receives equally from A and B. The newprofit sharing ratio will be- Marks:   2+ 0.5-

    2 : 3 : 4    3 : 2 : 4    4 : 2 : 3    4 : 3 : 2    2 : 4 : 3.

The Correct Answer is :     4 : 2 : 3    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 606. Which one of the following statements is true ?      Marks:   2+ 0.5-

    When a new partner is admitted, he gets a part of the acumulated profits of the firm according to his profit sharing ratio.    On admission of a new partner, profit or loss on revaluation is transferred to the old partner's capital accounts in their new ratio.    Recaluation a/c' is also known as 'P & L Adjustment a/c'.    When, on incoming of a new partner goodwill is inreased under revaluation method, the goodwill is distrubuted among old partners in their new ratio.    New and sacfifice ratios are the same. The Correct Answer is :     Recaluation a/c' is also known as 'P & L Adjustment a/c'.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 607. Which one of the following statements is false ?      Marks:   2+ 0.5-

    The amount of goodwill brought in by the new partner is distrubuted amongst the old partners in their sacrifice ratio.    When Goodwill a/c appears in the books at proper value, the new partner has to pay proportionate amount by way of goodwill, to the old partners.    In case Memorandum Revaluation Account is opened, the assest and liabilities appear the new Balance Sheet at their old values.    The amount of goodwill credited to the old partner on admission of a new partner, may be withdrawn by them in any proportion.    On admission of a new partner, profit or loss on revaluation is transferred to th old partners' capital accounts in their old ratio. The Correct Answer is :     When Goodwill a/c appears in the books at proper value, the new partner has to pay proportionate amount by way of goodwill, to the old partners.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 608. A, B and C are partners sharing profits and lossed in the ratio of 4: 3: 2. D is admitted for 1/10 share. The new ratio will be-      Marks:   2+ 0.5-

    4 : 4 : 3 : 2    4 : 3 : 2 : 1    5 : 4 : 3 : 2    1 : 2 : 3 : 4    None of the above. The Correct Answer is :     4 : 3 : 2 : 1    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 609. Profit or loss on revaluation is transferred to Capital Account of      Marks:   2+ 0.5-

    old partners    new partners    all partners    None of the aboveThe Correct Answer is :     old partners    You did not answer the question.

Explanation : undefined Module : Module D Chapter : Chapter1 610. The sacrifies of an old partners is equal to-      Marks:   2+ 0.5-

    new share-old share    old share-new share    None of the above.The Correct Answer is :     old share-new share    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 611. If new partners brings the amount of goodwill in capital, goodwill is transffered to the old partners in-      Marks:   2+ 0.5-

    old ratio    new ratio    sacrifice ratio    gaining ratio    None of the above The Correct Answer is :     sacrifice ratio    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 612. If Goodwill a/c is raised after the admission of a new partner, it will be credited to- Marks:   2+ 0.5-

    New Partner's Capital a/c    Old Partner's Capital a/cs    All Partner's Capital a/cs    New Partner's Drawings a/cs    All Partner's Drawings a/cs. The Correct Answer is :     All Partner's Capital a/cs    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 613. Goodwill brought in cash by new partner is called-      Marks:   2+ 0.5-

    Capital    Loan    Premium    Drawing    None of the above. The Correct Answer is :     Premium    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 614. If nothing otherwise metioned, on admission of a new patner, th e old ratio is itself- Marks:   2+ 0.5-

    new ratio    sacrifies ratio    gaining ratio    All of the above    None of the above. The Correct Answer is :     sacrifies ratio

    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 615. On the admission ofa new partner, an increase on the value of an asset is debited to - Marks:   2+ 0.5-

    Revaluation a/c    Old Partner's Capital a/cs    Asset a/c    New Partner'a Capital a/c    None of the above. The Correct Answer is :     Asset a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 616. A and B shared profit in the ratio of 3 : 2. C was admitted asa partner for1/5th share. He acquirs 3/20th from B. The new profit sharing ratio would be-      Marks:   2+ 0.5-

    10 : 6 : 4    6 : 10 : 4    8 : 8 : 4    9 : 7 : 4    12 : 4 : 4 The Correct Answer is :     9 : 7 : 4    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 617. Goodwill of a firm of A and B is valued at Rs. 60,000. Goodwill appears in th books at Rs. 24,000. C is admitted for 1/4th share. He will be required to bring for goodwill-      Marks:   2+ 0.5-

    Rs. 21,000    Rs. 9,000    Rs. 15,000    Rs. 6,000    Rs. 36,000. The Correct Answer is :     Rs. 9,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 618. A and B are partners sharing profits in the ratio of 3 : 1. C is admitted for 1/4th share. The profit sharing ratio will be-      Marks:   2+ 0.5-

    9 : 3 : 4    3 : 4 : 9    4 : 9 : 3    3 : 9 : 4    9 : 4 : 3 The Correct Answer is :     9 : 3 : 4    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 619. A and B share profits in the ratio of 4/5th and 1/5th. C is admitted for 1/2 share. The profit sharing ratio will be-      Marks:   2+ 0.5-

    1 : 5 : 4

    4 : 1 : 5    5 : 1 : 4    5 : 4 : 1    1 : 4 : 5 The Correct Answer is :     4 : 1 : 5    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 620. Computerised Accounting means accounting performed by-      Marks:   2+ 0.5-

    clerk    accountant    director    computer    top management The Correct Answer is :     computer    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 621. regular back-up of data is required to guard against-      Marks:   2+ 0.5-

    Theft of the computer    Theft of the software    Loss of data    loss of printer    None of the above The Correct Answer is :     Loss of data    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 622. Computerised accounting software may be-      Marks:   2+ 0.5-

    single user type software    double user type software    triple user type software    multiple user type software    all of the above The Correct Answer is :     all of the above    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 623. The set of instructions written by programmer for a computer is called-      Marks:   2+ 0.5-

    software    hardware    Computer program    software program    Computer program- software program The Correct Answer is :     Computer program- software program    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 624. The central processing unit in a computer coprises the following-      Marks:   2+ 0.5-

    Control unit and logical unit    Storage unit, control unit and output unit    Input unit, output unit and control unit    input unit, logical unit and output unit    Control unit, logical unit and storage unit The Correct Answer is :     Control unit and logical unit    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 625. A small enterprise generally uses-      Marks:   2+ 0.5-

    Bespoken system    Customised software    system software    off the shelf software    None of the above The Correct Answer is :     off the shelf software    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 626. Internet storage in a computer is known as-      Marks:   2+ 0.5-

    Back storage    Primary storage    secondary storage    Tertiary storage    none of the above The Correct Answer is :     Primary storage    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 627. In a computer system, the formula that is worked in different ways to ensure that the same results will follow, is called-      Marks:   2+ 0.5-

    Layout cheek    Limit ckeck    Redundant check    Cross check    Comparability check The Correct Answer is :     Cross check    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 628. Application software is concerned with-      Marks:   2+ 0.5-

    the programming used to control input unit    the programming used to control output unit    the programming to execute specific functions    the programming used to control the operations of the control unit    None of the above The Correct Answer is :     the programming to execute specific functions    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

629. Debugging is done by-      Marks:   2+ 0.5-

    programme coding    programme design    programme maintenance    programme varification    None of the above The Correct Answer is :     programme varification    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 630. Which one of the following statement is 'true' ?      Marks:   2+ 0.5-

    primary storage is a part of CPU    a set of programmes intended to control the computer is called application software    A spread sheet6 is an electronic Worksheet with columns and rows for manipulation of accounting and statistical data    MICR is device that helps to position the cursor    Input is not the bridge between data and the processing The Correct Answer is :     A spread sheet6 is an electronic Worksheet with columns and rows for manipulation of accounting and statistical data    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 631. Which one of the following statement is 'false'?      Marks:   2+ 0.5-

    Personal computer is a micro-computer which is intended to process the individual needs of an individual    Software which is tailor-made to meet the requirements of a big enterprise is called 'Bespoken'    speed and accuracy distinguish the manual accounting and computerised accounting    Primary storage is a part of CPU    parity cheek ensures that information is not lost5 or garbled The Correct Answer is :     Primary storage is a part of CPU    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 632. Wthich one of the following statement is ture?      Marks:   2+ 0.5-

    If premium on joint life policy of partners is treated as a business expenditure, it is shown in the assets side of the balance sheet of the firm.    the Premium on joint life policy of the partners is always treated as an investment.    If Goodwill a/c is raised at full value and written off, the capital a/cs of the continuing partners will be debited in gaining ratio while writing off goodwill.    the executors of a deceased partner are cntitled to receive a share in the Profit for the period between the last financial statements to the date of the death.    New and gaining ratios among the continuing parthers are always the same. The Correct Answer is :     the executors of a deceased partner are cntitled to receive a share in the Profit for the period between the last financial statements to the date of the death.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 633. which one of the following statements is false?      Marks:   2+ 0.5-

    Retirement of a partner means that a partner breaks off all his relations as partner with all ofther partners and withdraws himself from the firm.

    The entire share of the retiring partner may sometimes be acquired or purchased by one or some partners.    Profit or loss on revaluation is transferred only to continuing partners' capital accounts.    New and gaining ratios among continuing partners may be the same or different.    A dormant or sleeping partner need not give a public notice of his retirement. The Correct Answer is :     Profit or loss on revaluation is transferred only to continuing partners' capital accounts.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 634. In the event of death of a partner, the accumulated profits and losses are shared by the partner in      Marks:   2+ 0.5-

    capital ratio    new ratio    old ratio    sacrifice ratio    gaining ratio The Correct Answer is :     old ratio    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 635. On the death of a Partner, the amount received from join life policy should be credited to the capital accoundts of -      Marks:   2+ 0.5-

    all Partners including the deceased Partner`    only continuing Partners    only the deceased Partner    All of the above.    None of the above. The Correct Answer is :     all Partners including the deceased Partner`    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 636. A, B and C are Parnters sharing the Profit in the ratio of 2 : 2 : 1. C retired. The new profit sharing ratio between A and B will be-      Marks:   2+ 0.5-

    1 : 1    2 : 1    3 : 1    1 : 1    1 : 2 The Correct Answer is :     1 : 1    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 637. X, Y, Z are partners sharing profits equally. Y retires, Goodwill appearing in the books is Rs. 60,000. It is valued ar Rs. 1,20,000 Y will be credited with-      Marks:   2+ 0.5-

    Rs. 60,000    Rs. 40,000    Rs. 20,000    Rs. 1,20,000    None of the above. The Correct Answer is :     Rs. 20,000    You did not answer the question.

Explanation : undefined Module : Module D Chapter : Chapter1 638. A, B and C are partners sharing profits and losses in the ratio of 5 : 3 : 2. B retires. His share was taken up by A and C in the ratio of 2 : 1. The new share between A and C will be- Marks:   2+ 0.5-

    3 : 7    5 : 2    7 : 3    2 : 5    5 : 7. The Correct Answer is :     7 : 3    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 639. Old profit sharing ratio minus new profit sharing ratio is equal to-      Marks:   2+ 0.5-

    sacrificing ratio    gaining ratio    capital ratio    old ratio    None of the above. The Correct Answer is :     sacrificing ratio    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 640. A retiring Partner continues to be liable for obligation incurred after his retirement, if- Marks:   2+ 0.5-

    he does not give Public notice    he starts a similar business    unpaid amount is transferred to his loan a/c    he gives a public notice    None of the above. The Correct Answer is :     he does not give Public notice    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 641. Premium paid on Joint Life Policy of Partners is-      Marks:   2+ 0.5-

    debited to P & L a/c    credited to P & L a/c    debited to Partners' Capital a/cs    credited to Partners' Capital a/cs    None of the above. The Correct Answer is :     debited to P & L a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 642. On the retirement or death of a partner, Profit or loss on revaluation is transferred to Partners' Capital a/cs/ Current a/cs in-      Marks:   2+ 0.5-

    old Profit sharing ratio    sacrificing ratio    gaining ratio

    capital ratio    new ratio of the remaining partners. The Correct Answer is :     old Profit sharing ratio    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 643. If goodwill is raised at full value in the books of the firm on retirement of a partner, and is to be written off completely, then the capital accounts of the remaining partners will be debited in-      Marks:   2+ 0.5-

    old Profit sharing ratio    new profit sharing ratio    sacrificing ratio    gaining ratio    capital ratio The Correct Answer is :     new profit sharing ratio    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 644. Joint Life Policy Reserve a/c is transfered to-      Marks:   2+ 0.5-

    the Capital a/c of the retiring Partner    all Partners in the old Profit sharing ratio    remaining Partners in their new ratio    retiring Partner and remaining Partner who sacrifices his ratio    None of the above. The Correct Answer is :     all Partners in the old Profit sharing ratio    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 645. Sec. 37 of the Indian Partnership Act.,1932 Provides interest on the amount left by the retiring or deceased Partner at      Marks:   2+ 0.5-

    4%    5%    6%    Bank rate    Prime lending rate. The Correct Answer is :     6%    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 646. Which one of the following statement is ' false '?      Marks:   2+ 0.5-

    Creating a reserve for discount on creditors is not srictly according to the principal of conservatism .    ' Salary paid in advance ' is not an expence because neither decreases assets nor increases liailities .    Stock at the end appearing in trial balance is taken only to Balance sheet .    The terms 'Accured Income 'and ' Income received in advance 'are the same thing    Trading a/c shows gross profit / gross loss while P & L a/c shows net profit / net loss . The Correct Answer is :     The terms 'Accured Income 'and ' Income received in advance 'are the same thing    You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 647. Stock appearing outside the Trial balance will be shown in -      Marks:   2+ 0.5-

    Trading a/c    P & L a/c    Balance sheet    Trading a/c and Balance sheet    P & L a/c and Balance sheet The Correct Answer is :     Trading a/c and Balance sheet    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 648. The balance of petty cash is -      Marks:   2+ 0.5-

    an expence    an income    an asset    a liability    None of the above The Correct Answer is :     an asset    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 649. An asset has -      Marks:   2+ 0.5-

    debit balance    credit balance    somatimes debit and sometimes credit balance    debit balance in the beginning and credit balance at the end    None of the balance The Correct Answer is :     debit balance    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 650. A liabilities has -      Marks:   2+ 0.5-

    debit balance    credit balance    sometimes debit and sometimes credit balance    credit balance in the beggining debit balanceat the end    None of the above The Correct Answer is :     credit balance    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 651. Net profit is........ of the firm.      Marks:   2+ 0.5-

    an asset    a liability    an expenditure    an extra ordinary income    None of the above The Correct Answer is :     a liability    You did not answer the question.

Explanation : undefined Module : Module D Chapter : Chapter1 652. Net loss is ............. 0f the firm .      Marks:   2+ 0.5-

    an asset    a liability    an income    an extra ordinary expenditure    None of the above The Correct Answer is :     an asset    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 653. Which of the following is a contigent liability ?      Marks:   2+ 0.5-

    Bank overdraft    Short-term loans    Long- terms loans    Outstanding salaries    Liabilities on bills discounted. The Correct Answer is :     Liabilities on bills discounted.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 654. Goods costing Rs. 8,000 were damaged by fire . insurance company admitted a claim of Rs. 6,500. Profit & Loss a/c will be debited with -      Marks:   2+ 0.5-

    Rs. 8,000    Rs. 6,500    Rs. 4,500    Rs. 1,500    None of the above The Correct Answer is :     Rs. 1,500    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 655. A manager is entitled to receive a commission @ 5 % on net profit after charging such commission . Gross profit of the firm is Rs. 2,00,000 and selling and administrative expence amount to Rs .1,47,000. His commission will be -      Marks:   2+ 0.5-

    Rs.5,250    Rs.2,625    Rs.2,500    Rs.10,000    Rs. 52,500 The Correct Answer is :     Rs.2,500    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 656. The output of financial accounting is -      Marks:   2+ 0.5-

    the measurment of accounting income    the measurment of taxable income    the preparation of financial statements

    the preparation of financial position    All the above The Correct Answer is :     the preparation of financial statements    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 657. Income of a business concern -      Marks:   2+ 0.5-

    is measured as per the requirment of tax authorities.    is measured as per the articles of association .    is subjectives and influenced by the wishes of the accountant .    can never be measured objectivly to give an accurate figure .    None of these . The Correct Answer is :     is subjectives and influenced by the wishes of the accountant .    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 658. The basic objective of accounting is to -      Marks:   2+ 0.5-

    satisfy the legle requirments.    satisfy the listing requirments of stock exchange.    report to the shareholder.    provide quantitative information to the users of financial statement.    None of the above The Correct Answer is :     provide quantitative information to the users of financial statement.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 659. Information about the performance of a business enterprise is disclosed by -      Marks:   2+ 0.5-

    Trading a/c    Trading and P&L a/c    Balance sheet    Cash Flow Statement    Both ( 3) and ( 4 ). The Correct Answer is :     Trading and P&L a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 660. External reporting is the result of -      Marks:   2+ 0.5-

    Financial Accounting    Management Accounting    Cost Accounting    Human Resource Accounting    Inflation Accounting The Correct Answer is :     Financial Accounting    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 661. Special purpose financial statement are prepared by -      Marks:   2+ 0.5-

    Financial Accountant    Management Accountant

    Cost Accountant    Both (1) and (2)    Both (3) and (4) The Correct Answer is :     Management Accountant    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 662. Assets are usually shown in the balance sheet at -      Marks:   2+ 0.5-

    revalud cost    replacement cost    net realisable cost    unexpired cost    None of the above The Correct Answer is :     unexpired cost    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 663. The most acceptable way of measuring income is -      Marks:   2+ 0.5-

    to match the costs with revenue    to apply normal rate of return on capital invested    to apply the average rate of return in industry on capital employed    to find out the difference in net worth as on two dates    None of the above . The Correct Answer is :     to match the costs with revenue    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 664. During a period of rising prices , higher profits can be shown by valuing stick at - Marks:   2+ 0.5-

    FIFOP Method    LIFO Method    NIFO Method    Simple Average Price Method    Weight Average Price Method The Correct Answer is :     FIFOP Method    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 665. Balance Sheet is prepared primarily with the following group in view -      Marks:   2+ 0.5-

    owners    debtors    creditors    management    government. The Correct Answer is :     owners    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 666. Goodwill is an example of -      Marks:   2+ 0.5-

    fixed asset

    fictitious asset    current asset    tangible asset    intangible asset. The Correct Answer is :     intangible asset.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 667. Which one of the following is an example of an intangible asset ?      Marks:   2+ 0.5-

    Building    Investment    Discount on issue of shares and debentures    Copyright    Preliminary expences. The Correct Answer is :     Copyright    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 668. Which one of the following is an example of current asset ?      Marks:   2+ 0.5-

    Machinery    Vehicles    Patents    Prepaid expences    Goodwill. The Correct Answer is :     Prepaid expences    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 669. Which one of the following is an example of current liability ?      Marks:   2+ 0.5-

    Share Premium    Workmen's composation Fund    10% Debenture    Bank Overdraft    Bank Loan taken for two years . The Correct Answer is :     Bank Overdraft    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 670. Balance sheet is -      Marks:   2+ 0.5-

    a statement showing flows of fund    a statement is of position    a statement showing income    a statement showing only current assets    a statement showing only fixed asset The Correct Answer is :     a statement is of position    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 671. The excess of current assets over current liabilities is called -      Marks:   2+ 0.5-

    Gross Working Capital    Net Working Capital    Gross tangible worth    Net tangible worth    Net worth. The Correct Answer is :     Net Working Capital    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 672. Unexpired income as on the date of Balance Sheet, is shown as -      Marks:   2+ 0.5-

    an expenditure    a revenue    an asset    a liability    None of the above . The Correct Answer is :     a liability    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 673. Both assets and owners' eqity would be increased by -      Marks:   2+ 0.5-

    Proprietor' drawing    Payment from debtors    Payment to creditors    Purchase of fixed asset on credit    Capital brought in by the proprietors. The Correct Answer is :     Capital brought in by the proprietors.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 674. The net worth of a limited company ia equal to -      Marks:   2+ 0.5-

    Fixed asset - fixed liabilities    Current asset - Current liabilities    Fixed Asset - Current Liabilities    Fixed Liabilities - Current Liabilities    The total of shareholder' funds. The Correct Answer is :     The total of shareholder' funds.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 675. An outstanding expence can best be described as an amount -      Marks:   2+ 0.5-

    not paid and not currently matched with revenue    not paid and currently matched with revenue    paid and not currently matched with revenue    paid and currently matched with revenue    All of the above The Correct Answer is :     not paid and currently matched with revenue    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

676. The terms ' Reserve ' in financial statement signifies-      Marks:   2+ 0.5-

    the amount of provision for bad debts    the amount of provision taxation    the amount set apart for contigent liabilities    the amount of provision for depreciation    the amount of profits set a part for general or specific purpose . The Correct Answer is :     the amount of profits set a part for general or specific purpose .    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 677. In the total assets increased by Rs.1,50,000 and the total liabilities increased by Rs. 60,000 in the same accounting period , the capital is that period would -      Marks:   2+ 0.5-

    decreased by Rs. 60,000    decreased by Rs. 90,000    increased by Rs. 60,000    increased by Rs 90,000    increased by Rs 2,10,000. The Correct Answer is :     increased by Rs 90,000    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 678. Outstanding expences appering in the trial balance are shown in -      Marks:   2+ 0.5-

    Debit side of P& L a/c only    Credit side of P&L a/c only    Assets side of Balance Sheet only    Liabilities side of Balance Sheet only    Debit side of P& L a/c and asset side of Balance Sheet The Correct Answer is :     Liabilities side of Balance Sheet only    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 679. Which one of the following statement is 'true ' ?      Marks:   2+ 0.5-

    The accounting policies do not differ from enterprise to enterprise    Reserve of a business enterprise alway represent the amount which can spend readily    The figures as shown in the balance sheet , are the future estimated values of assets and liabilities .    Balance Sheet is a statement of assets and liabilities as on a given date .    Total capital employed by a company is the sum of shareholder' funds plus current liabilities . The Correct Answer is :     Balance Sheet is a statement of assets and liabilities as on a given date .    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 680. Which one of the following statement is ' false '?      Marks:   2+ 0.5-

    A Balance Sheet can only indicate the items that can be expressed in terms of money.    Security , capable of being realised and not held with the intention of retaini9ng it for more than one year , is a current asset .    An iron safe is a fixed asset for a medical shop and current asset for a shop dealing in iron safes.

    Liquidity is the ability of an organisationto meet current liabilities out of its current assets .    The closing stock of office stationary is credited to Trading a/c The Correct Answer is :     The closing stock of office stationary is credited to Trading a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 681. The purpose of finacial statement / final accounts is to as certain      Marks:   2+ 0.5-

    profit    profit or loss    value of assets    value of liabilities    profit or loss and financial position The Correct Answer is :     profit or loss and financial position    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 682. Financial statement are prepared      Marks:   2+ 0.5-

    at the end of calender year    at end of accounting year    at the end of assessment year    on every diwali    on every christmas The Correct Answer is :     at end of accounting year    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 683. Gross profit is ascertained by preparing -      Marks:   2+ 0.5-

    Trial balance    trading a/c    profit & loss a/c    balance sheet    all of the above The Correct Answer is :     trading a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 684. Suspence a/c appering in the trial balance is shown in the -      Marks:   2+ 0.5-

    Ledger    Trading a/c    P & L A/C    Balance sheet    All of the above The Correct Answer is :     Balance sheet    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 685. Balance sheet is prepared to know -      Marks:   2+ 0.5-

    Gross profit    Net profit

    Balance of accounts    Errors    Financial position The Correct Answer is :     Financial position    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 686. The statement showing assets and liabilities is -      Marks:   2+ 0.5-

    Trial balance    Trading a/c    P & l a/c    Balace sheet    None of these The Correct Answer is :     Balace sheet    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 687. Working capital is -      Marks:   2+ 0.5-

    Proprietor own capital    Borrowed capital    Amount of of sale    all assets - all libilities    Current assets - current libilities The Correct Answer is :     Current assets - current libilities    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 688. Which one of the following statement is ' false '?      Marks:   2+ 0.5-

    Capital = Assests - Liabilities    Balance sheet is an account    Balance sheet may be prepared by half- yearly or annually    Cash will be the first item is assets side of balance sheet if assets are arranged in the order of liqidity    Capital will be the last item in the liabilities side if liabilities are arranged in the order of liqidity. The Correct Answer is :     Balance sheet is an account    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 689. Sales are equals -      Marks:   2+ 0.5-

    Gross profit - Cost of goods sold    Gross profit + Cost of goods sold    Cost of goods sold - Gross profit    Gross profit - Net profit    Gross profit + Net profit The Correct Answer is :     Gross profit + Cost of goods sold    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

690. Goods distributed as samples should be credited to -      Marks:   2+ 0.5-

    Purchase a/c    Sales a/c    Advertisement a/c    P & L a/c    None of these above The Correct Answer is :     Purchase a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 691. Intrest on Drawing is -      Marks:   2+ 0.5-

    Expenditure for the business    Income for the business    Asset for the business    Liabilities for the business    None of the above The Correct Answer is :     Income for the business    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 692. Outstanding salaries are shown as -      Marks:   2+ 0.5-

    Expenditure    Income    Asset    Liabilities    None of the above The Correct Answer is :     Liabilities    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 693. Which one of the following statement is 'true' ?      Marks:   2+ 0.5-

    Stock at the end appering in the trial balance is taken only to the Balance sheet    All intangible assets are fictitious assets    Goods taken out by the proprietor from the business for personal use are credited to sales a/c .    The current liabilities mean the liabilities which are payable after a year .    Premium paid on the life policy of the proprietor is debited to P & L a/c . The Correct Answer is :     Stock at the end appering in the trial balance is taken only to the Balance sheet    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 694. Dividened can be paid out of-      Marks:   2+ 0.5-

    General Reserve    Capital Reserve    Share Premium    Pre-incorporation Profits    All of the above The Correct Answer is :     General Reserve    You did not answer the question.

Explanation : undefined Module : Module D Chapter : Chapter1 695. Share Premium Account is shown in the liabilities side of the Balance Sheet under the heading -      Marks:   2+ 0.5-

    Share Capital    Reserves and Surplus    Current Liabiliities and Provisions    Contigent Liabilities    Secured Loans The Correct Answer is :     Reserves and Surplus    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 696. Claims against the company nnot acknowledged as debts is a-      Marks:   2+ 0.5-

    current liability    secured loan    unsecured loan    provision    Contingent The Correct Answer is :     Contingent    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 697. Indicate the item that figures in P&L a/c below the line-      Marks:   2+ 0.5-

    Provision for doubtful debts    provision for taxation    Provision for gratuity payable to employees    Contribution to Provident Fund    Transfer to Sinking Fund The Correct Answer is :     Transfer to Sinking Fund    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 698. Advance payment of tax is in the nature of -      Marks:   2+ 0.5-

    Prepaid Expenditure,    Revenue Expenditure    Asset    Liability    Contingent Liability The Correct Answer is :     Prepaid Expenditure,    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 699. Provision for taxation on current profits iis shown-      Marks:   2+ 0.5-

    above the line in P&L a/c    below the linne in P & L a/c    above the line in P & L a/c and on the liabilities side of Balance Sheet    below the line in P & L a/c and on the liabilities side of Balance Sheet    below the line in P & L a/c and on assets side of Balance Sheet

The Correct Answer is :     above the line in P & L a/c and on the liabilities side of Balance Sheet    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 700. Divisible profits do not include-      Marks:   2+ 0.5-

    Revalution Reserve    General Reserve    Revenue Reserve    Balance of Profit & Loss a/c    Subsidies provided by government in pursurance of guarantee for dividend The Correct Answer is :     Revalution Reserve    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 701. Amount set aside to meet losses due to bed debts is-      Marks:   2+ 0.5-

    an asset    a liability    a contingent liability    a provision    a reserve The Correct Answer is :     a provision    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 702. Tax assessed in pprevious year was Rs.30,000 while the provision for taxation in that year was Rs,40,000. The adjustment for this in the current year would be-      Marks:   2+ 0.5-

    a debit of Rs,10,000 above the line P & L a/c    a debit of Rs. 10,000 below the line in P & L a/c    a credit of Rs. 10,000 above the line in P&L a/c    a credit of Rs. 10,000 below the line in P&L a/c    a credit of Rs. 30,000 above the line in P&L a/c The Correct Answer is :     a credit of Rs. 10,000 below the line in P&L a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 703. Preliminary expense is an example of-      Marks:   2+ 0.5-

    Current assets    Fixed assets    Fictitious assets    Tangible assets    Prepaid expenditure The Correct Answer is :     Fictitious assets    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 704. which one of the following statements is ;true;?      Marks:   2+ 0.5-

    Provision is maintained for unknown liabilities    Livestock is a current asset.

    Preliminary expenses are current liabilities.    Contingent liabilities are shown as a footnote.    Public deposits with the company are shown in the assets side of the Balance Sheet. The Correct Answer is :     Contingent liabilities are shown as a footnote.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 705. Which one of the following statements is :false ?      Marks:   2+ 0.5-

    Discount on issue of shares and debentures is misccellancous expendiure    Bills receivables are shown under the heaing loans and advances.    Unclaimed dividend is currrent liabilities    Proposed dividend is shown under the heading R serves and Surplus    Goodwill of the company is shown under the heading :Fixed Assets. The Correct Answer is :     Proposed dividend is shown under the heading R serves and Surplus    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 706. which one of the following statements is true?      Marks:   2+ 0.5-

    final dividend ccan be declared by directors.    arrers of cumulative preference dividend is a current liability    loose tools: appears as a fixed asset in the Balance Sheet of a company.    a dividend can be paid on callls in advance.    Managerial remuncratiojn is calculated before providing for taxation The Correct Answer is :     Managerial remuncratiojn is calculated before providing for taxation    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 707. The prescribed form of Balance Sheet for the Companies has been given in the Schedule. Marks:   2+ 0.5-

    VI Part I    VI Part II    VI Part III    VI Part IV    VI Part V The Correct Answer is :     VI Part IV    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 708. .....is shown under the heading :Fised Assetrs?      Marks:   2+ 0.5-

    Patents and Trademarks    Livestock    Goodwill    All of the above    None of the above. The Correct Answer is :     All of the above    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 709. Share Capital is shown in the Balance Sheet as -      Marks:   2+ 0.5-

    Autnorised

    Issued    Subscribed and Paid up    All of the above    None of the above. The Correct Answer is :     All of the above    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 710. Current liabilities are the liabilities which are to be paid at the most within.....months. Marks:   2+ 0.5-

    3    6    9    12    24 The Correct Answer is :     12    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 711. Lons as per the Schedule VI are classified as _      Marks:   2+ 0.5-

    Secured and unsecured    Cumulative and non-cumulative    Redeemable and irredeemable    Fixed and current    All of the aboive, The Correct Answer is :     Secured and unsecured    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 712. According to the prescribed order of assets under Schedule VI Part I ...... assets should be shown first of all.      Marks:   2+ 0.5-

    loans and advances    currents    fixed investments    investments    None of the above. The Correct Answer is :     fixed investments    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 713. Workmen's Compensation Fund is a -      Marks:   2+ 0.5-

    provision    reserve    surplus    current liability    loan. The Correct Answer is :     provision    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1

714. Preparation of final accounts of a company is governed by the Section of the Companies Act.      Marks:   2+ 0.5-

    203    209    210    211    212 The Correct Answer is :     210    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 715. Section..... of the Companies Act requires the Balance Sheet to be prepared in the precribed form.      Marks:   2+ 0.5-

    208    209    210    211    212 The Correct Answer is :     211    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 716. Section..... of the Companies Act makes compulsory for every company to keep certain books of accounts.      Marks:   2+ 0.5-

    208    209    210    211    212 The Correct Answer is :     209    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 717. Dividends are usually paid on -      Marks:   2+ 0.5-

    Authorised Share Capital    Issued Share Capital    Subscribed Share Capital    Paid up Share Capital    Called up Share Capital. The Correct Answer is :     Paid up Share Capital    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 718. Interest on capital allowed to partners should be treated as      Marks:   2+ 0.5-

    an appropriation of profits    a charge against profits    a charge when profits are not available    an appropriation when profits are not available    an appropriation when profits are available The Correct Answer is :     an appropriation of profits    You did not answer the question.

Explanation : undefined Module : Module D Chapter : Chapter1 719. A partner's capital balance at the end of the year is Rs. 1,00,000 after adjusting for drawings Rs. 20,000 and his share in the profits Rs. 10.000. Interest payable to him at 5% p.a. on the opening capital balance, would be      Marks:   2+ 0.5-

    Rs. 3,500    Rs. 4,000    RS. 4,500    RS. 5,000    Rs. 5,500 The Correct Answer is :     Rs. 5,500    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 720. Which one of the following statements is true?      Marks:   2+ 0.5-

    A partner who sleeps for 12 hours a day, is called 'sleeping partner'.    A Quasi partnership protects the third parties who may make a nonpartner liable.    Law makes a difference to liabilities towards third parties    Under the Indian Partnership Act, 1932, all the partners jointly and severally have limited liabilities towards third parties    Under the Indian Partnership Act, 1932, limited partnership is permitted The Correct Answer is :     A Quasi partnership protects the third parties who may make a nonpartner liable.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 721. Which one of the followiing statements is false?      Marks:   2+ 0.5-

    A sleeping or dormant partner is normally not interested in the day-to-day working of the partnership    Law makes no difference between a working partner and sleeping partner in reference to liabilities towards third parities    Under the Indian Partnership Act, 1932, all the partners, working or sleeping, jointly and severally have unlimited liabilities towards third parties    Limited partnership means partnership for a limited period of time.    A quasi or nominal partner is in fact not a partner in the firm, but it estops him from disclaiming his status as a partner vis-a-vis third parties if he keeps quiet The Correct Answer is :     Limited partnership means partnership for a limited period of time.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 722. Which one of the following is true?      Marks:   2+ 0.5-

    There can be minimum three and maximum thirty partners in a partnership firm.    A partnership firm enjoys a separate legal entity apart from its partners.    Partnership deed is not in writing.    Partners' Current Accounts are maintained in case of Fluctuating Capital System.    No limit regarding maximum number of partners in a firm has been prescribed by the Indian Partnership Act, 1932. The Correct Answer is :     No limit regarding maximum number of partners in a firm has been prescribed by the Indian Partnership Act, 1932.    You did not answer the question. Explanation : undefined

Module : Module D Chapter : Chapter1 723. Which one of the following statements is false?      Marks:   2+ 0.5-

    In the absence of any contract of the contrary, partners are required to share profits and losses equally.    If it is proved that there has been definite loss to the firm owing to negligence of a partner, that partner will make good such loss.    If the partnership deed is silent on certain points, the relevant provisions of the Partnership Act, 1932 will apply    Partners are mutual agents for each other.    Partners are not mutual agents for each other. The Correct Answer is :     Partners are not mutual agents for each other.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 724. An ordinary partnership firm can have maximum      Marks:   2+ 0.5-

    10 partners    20 partners    50 partners    100 partners    any number of partners. The Correct Answer is :     20 partners    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 725. A partnership firm engaged in banking business can have maximum      Marks:   2+ 0.5-

    5 partners    10 partners    20 partners    50 partners    any number of partners The Correct Answer is :     10 partners    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 726. Partners' Current Accounts are opened when their captial accounts are      Marks:   2+ 0.5-

    fixed    fluctuating    in both of the above    having zero balances    None of the above The Correct Answer is :     fixed    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 727. In absence of an agreement to the contrary, the partners shall      Marks:   2+ 0.5-

    be paid salaries    not be paid salaries    be paid salaries upto Rs 1,000 p.m.    be paid salaries if they are working partner.    be paid salaries if they are sleeping partners

The Correct Answer is :     not be paid salaries    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 728. Suppose, the partnership deed provides for a salary of Rs. 5,000 p.m. to partner X. If X withdraws only Rs. 3,000 in a month, the remaining Rs. 2,000 will be      Marks:   2+ 0.5-

    debited to his Capital a/c    credited to his Drawing a/c    credited to his Current a/c    credited to P & L Adjustment a/c    None of the above The Correct Answer is :     credited to his Current a/c    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 729. In the absence of an agreement to the contrary, If partners sleeping or working share profits and losses      Marks:   2+ 0.5-

    in the ratio of their orginal captial    in the ratio of their latest captial    in the ratio of average captial    in equal ratio    None of the above The Correct Answer is :     in equal ratio    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 730. In abscence of any provisions in the partnership agreement, partners can charge on the loans given by them to the firm      Marks:   2+ 0.5-

    interest at 6% p.a.    interest at 12% p.a.    interest at 15% p..a.    interest at 10% p.a.    no interest The Correct Answer is :     interest at 6% p.a.    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 731. The current account of a partner      Marks:   2+ 0.5-

    will always have a debit balance    will always have a credit balance    will never have a balance    may have a debit or a credit balance    None of the above The Correct Answer is :     may have a debit or a credit balance    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 732. Goodwill in a partnership firm can be valued or revalued on the occasion of      Marks:   2+ 0.5-

    only on incoming of a partner

    only on outgoing of a partner    only on dissolution of a firm    on all the above    None of the above The Correct Answer is :     on all the above    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 733. The balance of a partner's captial account will get reduced wish this amount      Marks:   2+ 0.5-

    Partner's salary    Interest on partner's capital    Interest on partner's drawings    Interest on partner's loan    All of the above The Correct Answer is :     Interest on partner's drawings    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1 734. In the absence of any provision in the partnership deed, the partnership Act provides for Marks:   2+ 0.5-

    Interest on drawings    Interest on captials    Interest on advances given by partners    Interest on loans given by creditors    Interest on loans given by banks The Correct Answer is :     Interest on advances given by partners    You did not answer the question. Explanation : undefined Module : Module D Chapter : Chapter1