F.Y B.COM
SEMESTER - 1
MID SEMESTER EXAMINATION
FUNDAMENTALS OF ACCOUNT
OCTOBER - 2019 MCQS
(1) ABC & Co. has 10% investment with private bank of Rs. 1,00,000 as on 01/04/2018. During the year interest received on this invesment is Rs. 8,000. What amount of interest to be credited to profit and loss A/C on 31st March, 2019?
(A) Rs. 10,000
(B) Rs. 9,000
(C) Rs. 8,000
(D) None of these
(2) Opening balance of Capital of Mr. A is Rs. 10,000, during the year he receives interest on Capital Rs. 1,000, there is drawing of Rs.2,500, interest on drawing is Rs. 250 and his share in profit is Rs. 4000. What would be the amount of closing capital ?
(A) Rs. 10,250
(B) Rs. 12,250
(C) Rs. 12,750
(D) None of these
(3) Value of fixed asset as on 01/04/2018 is Rs.20,000, which was purchased for Rs. 30,000 (purchase value) and the same asset is sold for Rs. 35,000 on 01/04/2019. How much profit to be credited to P & L A/c ?
(A) Rs. 10,000
(B) Rs. 15,000
(C) Rs. 5,000
(D) None of these
(4) A firm has paid insurance premium of Rs. 12,000 for the year 2018 - 19, out of which Rs. 3000 is related to the next year 2019-20. What amount of insurance premium to be debited to profit and loss A/C for the year 2018-19?
(A) Rs. 12,000
(B) Rs. 9,000
(C) Rs. 15,000
(D) None of these
(5) Stock costing Rs. 20,000 at the end of the year, out of which 25% of the goods, its market value is decreased by 10% and 35% of the goods, its market value is Rs. 6,500. Calculate the value of costing stock.
(A) Rs. 21,000
(B) Rs. 20,000
(C) Rs. 19,000
(D) None of the above
(6) In absence of partnership deed, interest to be paid on drawing by partner to firm is .....
(A) 6% p.a
(B) 10% p.a
(C) 12% p.a
(D) None of these
(7) "Employed Mr. Niraj at a salary of Rs. 40,000." This is .........
(A) An event
(B) An economic transaction
(C) A transaction
(D) None of these
(8) Which of the following is an example of personal account ?
(A) Machinery
(B) Rent
(C) Cash
(D) Creditors
(9) Match the following:
(i) Real account | (a) Rent |
(ii) Personal account | (b) Patent |
(iii) Nominal account | (c) Prepaid salary |
(A) i-b, ii-c, iii-a
(B) i-a, ii-b, iii-c
(C) i-a, ii-c, iii-b
(D) i-b, ii-a, iii-c
(10) BSNL is an example of which account?
(A) Representative Personal Account
(B) Natural Personal Account
(C) Artificial Personal Account
(D) None of these
(11) Which of the following statement is incorrect as per accounting equation approach?
(A) Increase in capital will be credited
(B) Increase in liabilities will be debited
(C) Decrease in revenue will be debited
(D) Decrease in expenses will be credited
(12) In modern accounting, which method of book - keeping is used ?
(A) Single entry system
(B) Double entry system
(C) Bahikhata system
(D) None of these
(13) When there is purchase return, .........
is Prepared by the buyer of goods.
(A) Journal voucher
(B) Credit note
(C) Debit note
(D) None of these
(14) In FIFO method, old stocks are issued ......... and new stocks are issued........
(A) Afterwards, first
(B) First, afterwards
(C) At cost price, at market price
(D) None of these
(15) Any expenditure which Increases the earning capacity of the business will be referred as:
(A) Revenue expenditure
(B) Capital expenditure
(C) Deferred revenue expenditure
(D) None of these
(16) Mr.X withdraws Rs.300 p.m. at the beginning of each month and Mr.Y withdraws Rs.600 p.m. at the end of each month. Rate of interest on drawing is 10% p.a. The interest on drawing is:
(A) For Mr.X Rs.390 & Mr. Y Rs.330
(B) For Mr.X Rs.330 &Mr.Y Rs.390
(C) For Mr.X Rs.195 & Mr. Y Rs.330
(D) None of these
(17) The manager is entitled to receive commission of 5% on net profit before charging such commission and net profit at the end of year is Rs.1,05,000. The commission payable to manager is:
(A) Rs.5526
(B) Rs.5520
(C) Rs.5250
(D) Rs.5000
(18) Wages paid Rs.5,000 on purchase of furniture is............
(A) Added to machinery Alc
(B) Added to wages Alc
(C) Added to direct expenses Alc
(D) None of these
(19) Machinery costing Rs.2,00,000 purchased on 01.04.2017 for which installation charges paid Rs.10,000. Additional machinery costing Rs.61,000 purchased on 01.07.2017. Calculate the amount of depreciation @15% p.a. for the year ended on 31.03.2018.
(A) Rs.31,500
(B) Rs.23,475
(C) Rs.22,575
(D) None of these
(20) Cost of material consumed is the result of .......
(A) Opening Stock+ Sales-Closing stock
(B) Opening Stock+ Purchase + Purchase expense- Closing Stock
(C)Opening Stock-Purchase + Closing Stock
(D) None of these
(21) Choose appropriate option from the following which suits the most in the absence of partnershiip deed:
(A) 12% interest will be paid on loan given by partner
(B) Salary and Commission would be given to partner
(C) Interest on Capital shall be paid @ 6% p.a.
(D) No salary, commission and interest on capital would be given to the partner
(22) Under which convention of accounting, the contingent liabilities are shown as a footnote or explanatory notes in the balance sheet of a firm?
(A) Convetion of Full Disclosure
(B) Convention of Materiality
(C) Convention of Conservatism/ Prudence
(D) Convention of Consistency
(23) Instead of preparing separate accounts for items like pen, erasers, rough writing pads, pencil and other stationery items, they all are grouped under one stationery Expense account based on ............... Concept/ convention.
(A) Dual Aspect
(B) Consistency
(C) Materiality
(D) Business entity
(24) Based on .......... concept/ convention, no accounting entry is made in the books of accounts for advantage of having a team of sincere, honest, hard working and efficient employees with the firm.
(A) Materiality
(B) Money Measurement
(C) Full Disclosure
(D) Dual Aspet
(25) Based on ............ Concept, outstanding salary is shown while finalizing the accounts even though the salary is not yet paid.
(A) Accrual
(B) Money Measurement
(C) Historical Cost
(D) Dual Aspect
(26) All expenses incurred before commencement of business would be treated as:
(A) Revenue Expenditure
(B) Capital Loss
(C) Capital Expenditure
(D) Deferred Revenue Expenditure
(27) Find out which of the following statements is/ are correct ?
Statement (a): Under cash basis of accounting there may be prepaid / outstanding expenses and accrued/ unrealised incomes in the balance sheet.
Statement (b): Under accrual basis of accounting there is no prepaid/ outstanding expenses and accrued/ unrealised incomes in the balance sheet.
(A) Only statement (a) is corect
(B) Only statement (b) is correct
(C) Both the statements are incorrect
(D) Both the statements are correct
(28) Match the following correctly and choose the correct option given after table:
(a) Drawback of accounting | (i) Contribution of Luca pacioli |
(b) Advantage of accounting | (ii) Ignore time value of money |
(c) Single entry system | (iii) Incomplete records |
(d) Double entry system | (iv) Facilitates the preparation of financial statements |
(A) a-iv, b-ii, c-iii, d-i
(B) a-ii, b-iv, c-i, d-iii
(C) a-ii, b-iii, c-iv, d-i
(D) a-ii, b-iv, c-iii, d-i
(29) Suspense Account can be classified into:
(A) Real Account
(B) Nominal Account
(C) Personal Account
(D) None of these
(30) Which of the following statement is incorrect?
(A) Accounting is a language of business.
(B) Scope of accounting includes budgetary control.
(C) All transactions can be event but all events can't be transaction.
(D) Provision for Depreciation A/c can't be classified into any account.
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