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Xii Acc 1 To 3 Ques Creative
Xii Acc 1 To 3 Ques Creative
CYCLE TEST
Date : 10-Feb-22
12th Standard
Accountancy Reg.No. :
Exam Time : 03:00:00 Hrs Total Marks : 193
I.Choose the best answer 193 x 1 = 193
1) An advance receipt of subscription from a member of the non - profit organization is considered
as alan
(a) Expense (b) Liability (c) Equity (d) Asset
2) Income and Expenditure account is based on
(a) Cash accounting (b) Government accounting (c) Management accounting
(d) Accrual accounting
3) Which of the following is to be recorded in an income and expenditure account?
(a) Prchase of a fixed asset (b) Capital expenditure incurred on a fixed asset
(c) Profit on the sale of a fixed asset (d) Sale of a fixed a
4) Subscription received but not yet earned is considered as a /an
(a) Asset (b) Liability (c) Income (d) Expenditure
5) Rs.10,000 received as to annual membership subscription. Out of this Rs.2,000 is pertaining to
the previous accounting period whereas Rs.1000 is receivable at the end of the current
accounting period. Calculate the amount of subscription that will be shown in the income and
expenditure account for this accounting.
(a) Rs.10,000 (b) Rs.9,000 (c) Rs.12,000 (d) Rs.8,000
6) Income and Expenditure accounts show
(a) cash available to an organization (b) dosing capital of an organization
(c) cash available in the bank account
(d) surplus or deficit for the current accounting period.
7) On what basis the receipts and payments account is prepared?
(a) Cash basis (b) Credit basis (c) Both (d) None of these
8) The amount or property received by a non - profit organization as stated by the will of a decreased
person is commonly referred to as
(a) Donation (b) Honorarium (c) Legacy (d) Endowment
9) In non - profit organization, the sale of old newspapers is generally considered as an
(a) Revenue receipt (b) Expenditure (c) Income (d) Capital receipt
10) Some organisations are established for the purpose of rending services to the public without
(a) any profit motive (b) any service motive (c) both (d) none of these
11) Charitable institutions and educational institutions are the examples of
(a) profit organisation (b) not-for-profit organisation (c) both (d) none of these
12) If the donation is received without any specific condition, then it is a
(a) general donation (b) specific donation (c) donation fund (d) none of these
13) Capital fund also called as
(a) accumulated fund (b) special fund (c) donation fund (d) none of these
14) Which of the following is generally considered as a non profit organisation?
(a) Charitable organisation (b) Corporation (c) Audit firms (d) Insurance companies
15) The receipts and payments account of a nonprofit organisation is a
(a) Nominal account (b) Real account (c) Income statement account
(d) Financial statement
16) Non- profit organizations prepare all of the following accounts except the
(a) Receipts and Payments accounts (b) Income and Expenditure accounts
(c) Balance sheet (d) Income statement
17) Expenditures greater than incomes of a nonprofit organization give rise to a
(a) Loss (b) Profit (c) Surplus (d) Deficit
18) Rent expenses of a non-profit organization paid in advance. Which of the following is the correct
classification of rent
(a) Expense (b) Liabilities (c) Equity (d) Asset
19) Receipts and Payment accounts is a_________ account in nature.
(a) real (b) personal (c) nominal (d) all of these
20) _______items will be recorded in income and expenditure account
(a) Capital (b) Nominal (c) Expense (d) Revenue
21) _______Items will be recorded in the balance sheet
(a) Revenue (b) Capital (c) Expense (d) None of these
22) _______are the amounts received by not for- profit organisations as a gift
(a) Legacy (b) Donations (c) Subscription (d) Entrance fee
23) A gift made to a not-for-profit organization by a will, is called________
(a) Subscription (b) Life membership fee (c) Legacy (d) Donations
24) ______is a fee collection from every member only once at the time of his or her admission into the
organisation.
(a) Entrance fee (b) Legacy (c) Donations (d) None of these
25) _______is the remuneration paid to a person who is not a regular employee of the organization
(a) Purchase of sports materials (b) Purchase of sports equipment (c) Honararium
(d) Legacy
26) ________is a revenue expenditure
(a) Specific donation (b) Honararium (c) Legacy (d) Interest on investment
27) _______is prepared to find out the surplus or deficit pertaining to a particular year.
(a) Income and Expenditure account (b) Receipts and Payment account
(c) Trading and Profit and loss account (d) Balance sheet
28) The different between the total of assets and total of liabilities is taken as
(a) drawings (b) capital (c) profit (d) loss
29) The total assets of a proprietor are Rs.5,00,000. His liabilities Rs.3,50,000. Then his capital in
the business is
(a) Rs.8,50,000 (b) Rs.1,50,000 (c) Rs.3,50,000 (d) Rs.4,25,000
30) A firm has assets worth Rs.60,000 and capital Rs.45,000.Then it's liabilities is
(a) Rs.45,000 (b) Rs.1,05,000 (c) Rs.60,000 (d) Rs.15,000
31) Under the net worth method, the basis for ascertaining the profit is
(a) the difference between the capital on two dates
(b) the difference between the liabilities on two dates
(c) the different between the gross assets on two dates
(d) the difference between the gross profit on two dates
32) Credit sale is obtained from
(a) Bills receivable account (b) Bills payable account (c) Total debtors account
(d) Total creditors account
33) The capital of a business is ascertained by preparing
(a) Trading account (b) Statement of profit or loss (c) Balance sheet
(d) Statement of affairs
34) Credit purchase is obtained from
(a) Bills receivable account (b) Bills payable account (c) Total debtors account
(d) Total creditors account
35) Debtors on 1.4.2018 was Rs.1,00,000 and on 31.3.2019 was Rs.80,000 cash received from
debtors during the year is Rs.1,60,000. Then the credit sales during the year is
(a) Rs.3,40,000 (b) Rs.2,40,000 (c) Rs.1,40,000 (d) Rs.1,60,000
36) A firms total sales is Rs.80,000 and its credit sales is Rs.60,000 Then its cash sales is
(a) Rs.1,40,000 (b) Rs.70,000 (c) Rs.20,000 (d) Rs.80,000
37) A firm has assets worth Rs.47,500 and liabilities Rs.17,700. Then its capital is
(a) Rs.29,800 (b) Rs.65,200 (c) Rs.35,400 (d) Rs.17,700
38) Companies cannot keep books on single entry system because of
(a) tax properties (b) legal provisions (c) both (a) and (b) (d) None of these
39) Match List I with List II and Select the Correct Answer using the Codes given below.
List I List II
(i) Incomplete records 1. Net worth method
(ii) Single entry system 2. Double entry
(iii)Statement of affairs method3. Small traders
(iv) Nominal account 4. Incomplete double system
(a) (b) (c) (d)
(i) (ii) (iii)(iv) (i) (ii) (iii)(iv) (i) (ii) (iii)(iv) (i) (ii) (iii)(iv)
12 3 4 43 1 2 23 1 4 34 1 2
40) Match List I with List II and Select the Correct Answer using the Codes given below.
List I List II
(i) Nature 1. Needs and conveniences
(ii) Types of accounts 2. No legal obligations
(iii)Lack of uniformity 3. Real account and nominal accounts
(iv) Suitability 4. Unsystematic way of transactions
(a) (b) (c) (d)
(i) (ii) (iii)(iv) (i) (ii) (iii)(iv) (i) (ii) (iii)(iv) (i) (ii) (iii)(iv)
12 3 4 23 4 1 43 1 2 34 2 1
41) Incomplete records are those records which are not kept under ____ system
(a) Single entry (b) Double entry (c) Book keeping (d) none of these
42) _____ is an unscientific and unsystematic way of recording transactions.
(a) Incomplete records (b) Complete records (c) Single entry system
(d) Double entry system
43) Statement of affairs method is also called as _____ method.
(a) Net profit (b) Net loss (c) Net worth/capital comparison (d) None of these
44) _____ is a statement showing the balances of assets and liabilities on a particular date.
(a) Statement of affairs (b) Trading account (c) Profit and loss account
(d) Balance sheet
45) _____ capital can be found by preparing a statement of affairs at the beginning of the year.
(a) Opening capital (b) Closing capital (c) Both (a) and (b) (d) None of these
46) A statement of affairs resembles a _____
(a) Trading account (b) Profit and loss account (c) Balance sheet (d) Trial balance
47) Closing capital can be found by preparing a statement affairs at the _____ of the year.
(a) opening (b) end (c) centre (d) none of these
48) In _____ system, only personal and cash accounts are opened.
(a) Single entry (b) Double entry (c) Trial balance (d) Balance Sheet
49) Creditors on 1.4.2016 was Rs.80,000 and on 31.3.2017 was Rs.65,000 cash paid to creditors
during the year is Rs.10,000. Then the credit purchases during the year is
(a) Rs.95,000 (b) Rs.1,75,000 (c) Rs.1,95,000 (d) Rs.1,50,000
50) _____ maintains only personal and cash accounts.
(a) Single entry system (b) Double entry system (c) Both (a) and (b) (d) None of these
51) _____ is suitable only for sole traders and partnership firms.
(a) Double entry system (b) Single entry system (c) Both (a) and (b) (d) None of these
52) Single entry system keeps one cash book which mixes up business as well as ____ transactions.
(a) Private (b) Own (c) Public (d) Capital
53) True financial position cannot be ascertained as _____ is not prepared due to the absence
of nominal and real accounts.
(a) Trading accounts (b) Profit and loss account (c) Balance sheet (d) Trail balance
54) If it is desired to calculate profit by preparing trading and profit and loss account under single
entry then it is called ______ method.
(a) Networth (b) Statement of affairs (c) Conversion (d) None of these
55) The name under which the business of a firm is carried on is called the
(a) Company name (b) Firm name (c) Partnership firm (d) Partner's name
56) The profit or loss arising from the partnership business is shared by the partners in the
(a) old ratio (b) new ratio (c) agreed ratio (d) sacrifice ratio
57) In India, partnership firms are governed by the Indian partnership Act.
(a) 1932 (b) 1930 (c) 1992 (d) 1986
58) The maximum number of partners in a partnership firm is
(a) 25 (b) 10 (c) 30 (d) 50
59) In sole proprietorship, the profit or loss in the profit and loss account is transferred directly to
the sole proprietor's
(a) drawings account (b) capital account (c) loan account (d) salary account
60) The balance in the appropriation account is transferred to the partner's capital account in the
(a) agree ratio (b) sacrifice ratio (c) profit sharing ratio (d) old ratio
61) Capital account balance of the sole proprietor alone as shown in the balance sheet of
(a) Sole proprietorship (b) Partnership (c) Joint Hindu family (d) Company
62) Amount invested by partners in the partnership business is called
(a) Owner's capital (b) Partner's capital (c) Profit and loss appropriation
(d) None of these
63) Which of the following method, the capital of the partners is not altered and it remains generally
fixed?
(a) Fixed capital method (b) Fluctuating capital method (c) Both 'a' and 'b'
(d) None of these
64) All the transactions between the partner and the firm are recorded in the
(a) capital account (b) drawings account (c) profit and loss account
(d) revaluation account
65) The rate of interest on capital is generally agreed by the partners and is mentioned in the
(a) capital account (b) profit and loss account (c) partnership deed (d) none of these
66) Interest on capital is to be calculated on the capitals at the beginning for the
(a) particular period (b) relevant period (c) average period (d) all of these
67) Period of interest refers to the period from the date of drawings to the closing date of the
(a) opening year (b) closing year (c) previous year (d) accounting year
68) Product method can be used in all situations as an alternative to
(a) average period (b) direct method (c) both 'a' and 'b' (d) none of these
69) The persons who entered into partnership are collectively known as
(a) Partners (b) Owners (c) Firm (d) Organisation
70) In a partnership business, agreement is
(a) compulsory (b) optional (c) not necessary (d) none of these
71) Interest on capital is calculated on the
(a) Opening capital (b) Closing capital (c) Average capital (d) None of these
72) Current accounts for partners will be opened under,
(a) Fixed capital method (b) Fluctuating capital method
(c) Either fixed capital method or fluctuating capital method (d) None of these
73) X and Yare partners sharing the profits and losses in the ratio of 2:3 with capitals of Rs.1,20,000
and Rs.60,000 respectively. Profits for the year are Rs.9,000. If the partnership deed is silent as
to interest on capital. Show how profit is shared among X and Y
(a) Profit X - Rs. 6,000; Y - Rs.3,000 (b) Profit X - Rs.3,600; Y - Rs.5,400
(c) Profit X - Rs.3,000; Y - Rs.6,000 (d) Profit X - Rs.2,000; Y - Rs.2,600
74) Under fixed capital method salary payable to a partner is recorded
(a) in current account (b) in capital account
(c) either in current account or capital account (d) none of these
75) If a firm is maintaining both 'capital accounts' and 'current accounts' of the partners A and B.
Additional capital introduced by B will be recorded in
(a) B's Current Account (b) B's Capital Account (c) A'sCapital Account
(d) A'sCurrent Account
76) Amount is drawn regularly at the middle of every month during the year. Interest calculated for
(a) (b) (c) (d)
13 11 12 10
24 24 24 24
77) In the absence of any specific agreement partner's loan to the firm will carry an interest of
(a) 6% (b) 10% (c) 12% (d) 10%
78) Amount is drawn regularly at the end of every month during the year, interest is calculated for
(a)
11
24
months (b)
12
24
months (c)
13
24
months (d)
6
24
months
79) When a fixed amount is withdrawn in the beginning of every month the period calculated for
interest on drawings is
(a) (b) (c) (d)
11 12 13 10
24 24 24 24
80) Match List I with List II and Select the Correct Answer using the Codes given below
List I List II
(i) Partnership Act 1. 2013
(ii) Agreement 2. 50
(iii)Indian companies Act3. Oral or written
(iv) Maximum Number 4. 1932
(a) (b) (c) (d)
(i) (ii) (iii)(iv) (i) (ii) (iii)(iv) (i) (ii) (iii)(iv) (i) (ii) (iii)(iv)
23 1 4 12 3 4 43 1 2 34 2 1
81) Match List I with List II and Select the Correct Answer using the Codes given below
List I List II
(i) Remuneration to partners1. Section 13(c)
(ii) Profit Sharing ratio 2. Section 13(d)
(iii)Interest on capital 3. Section 13(b)
(iv) Interest on loan 4. Section 13(a)
(a) (b) (c) (d)
(i) (ii) (iii)(iv) (i) (ii) (iii)(iv) (i) (ii) (iii)(iv) (i) (ii) (iii)(iv)
12 3 4 43 2 1 34 2 1 21 4 3
82) __________ is a form of organization where two or more persons carryon some business acting on
the basis of agreement among them.
(a) Partnership firm (b) Sole proprietorship (c) Joint Hindu Family (d) Company
83) ___________ is a document in writing that contains the terms of the agreement among the
partners.
(a) Partnership deed (b) Partnership at will (c) Both 'a' and 'b' (d) None of these
84) Capital account will always show credit balance under ________ method.
(a) Partner's current account (b) Partner's capital account (c) Both 'a' and 'b'
(d) None of these
85) __________ method, only capital account is maintained for each partner
(a) Fixed capital (b) Fluctuating capital (c) Both 'a' and 'b' (d) None of these
86) ________________ is the interest allowed on capital of the partners.
(a) Interest on drawings (b) Interest on capital (c) Both 'a' and 'b' (d) None of these
87) __________ can be computed by direct method or product method.
(a) Interest on drawings (b) Interest on capital (c) Partners salary
(d) Partner's commission
88) ___________ intervals refers to withdrawal made monthly, quarterly, half-yearly, once in 2 months
and once in 4 months.
(a) Fixed time (b) Current time (c) Average time (d) None of these
89) Profit and loss appropriation account is _____________ account in nature.
(a) real (b) nominal (c) personal (d) none of these
90) ______________ is a type of partnership in which the liability of the partners is limited to the
entent of their capital contribution.
(a) Limited liability partnership (b) Limited assets (c) Partnership deed
(d) None of these
91) Under fluctuating capital method, profit or loss in a year, will be transferred to the respective
_____________ accounts.
(a) capital (b) profit and loss (c) drawings (d) none of these
92) Under ____________ capital arrangement, current accounts will not be maintained.
(a) Fixed (b) Fluctuating (c) Both 'a' and 'b' (d) None of these
93) The debit balance of the current account, will be shown in the ____________ side of the balance
sheet.
(a) liabilities (b) assets (c) debit (d) credits
94) Interest on partner's capital is allowed, only when the _______________ specifically provides for i
(a) partnership Act (b) partnership agreement (c) both 'a' and 'b' (d) none of these
95) __________ can be formed only for a legal business.
(a) Sole trader (b) Co-operative societies (c) Partnership (d) None of these
96) Indian partnership Act was enacted in the year ___________
(a) 1932 (b) 1956 (c) 1991 (d) 1992
97) List I List II
(i) Subscription 1. Balls, bats
(ii) Investments 2. Time of admission
(iii)Old sports materials3. Receive interest
(iv) Admission fee 4. Tennis or billiards
(a) (b) (c) (d)
(i) (ii) (iii)(iv) (i) (ii) (iii)(iv) (i) (ii) (iii)(iv) (i) (ii) (iii)(iv)
12 3 4 43 1 2 23 4 1 23 4 1
98) List I List II
(i) Subscription 1. Revenue expenditure
(ii) Life membership fee 2. Capital expenditure
(iii)Honorarium 3. Capital receipts
(iv) Purchase of sports equipment 4. Revenue receipts
(a) (b) (c) (d)
(i)(ii)(iii)(iv) (i)(ii)(iii)(iv) (i)(ii)(iii)(iv) (i)(ii)(iii)(iv)
1 2 3 4 2 3 4 1 1 4 2 1 4 3 1 2
99) In single entry system of accounting
(a) Duel aspects of a transaction is recorded (b) Single aspect of transaction is recorded
(c) Important transaction are recorded (d) All of them
100) Statement of financial position from incomplete accounting record is commonly known as
(a) Balance sheet (b) Cash flow statement (c) Statement of affairs
(d) Statement of financial operations
101) In which of the following system of recording the financial statements reflect true and fair view
of an entity and accounting records are considered to be more accurate?
(a) Single entry system (b) Double entry system (c) Cash based system (d) All of them
102) Identify the correct formula used to ascertain the closing capital
(a) Opening capital + Net income - Drawings - Assets = Closing capital
(b) Closing capital = Opening capital + Net loss - Drawings
(c) Closing capital = Opening capital + Assets + Income - Expenses
(d) Closing capital = Opening capital + Net income - Drawings
103) Which of the following formulas is used to calculated the net income for an accounting period?
(a) Net income = Opening capital + Drwings + Ending capital
(b) Net income = - Opening capital + Drawings - Ending capital
(c) Nwt income = - Opening capital + Drawings + Ending capital
(d) Net income = Opening capital - Total assets
104) If opening capital Rs. 1,000 and closing capital Rs. 2000. Assuming no drawings during the
accounting period, calculated the net income or loss for the period
(a) Rs.1,000 net income (b) Rs.1,000 net loss (c) Rs.2,000 net income
(d) Rs.2,000 net loss
105) Total opening balances of assets and liabilities are Rs. 10,000 and Rs. 5,000 respectively. Find
out the opening capital of the business
(a) Rs 10,000 (b) Rs 5,000 (c) Rs 15,000 (d) Rs 50,00,000
106) Which one of the following accounts is supposed to be used to get the figure of credit purchase
made during the current accounting period?
(a) Debtors account (b) Revenue account (c) Creditors account (d) Expenses account
107) A method wherein omitted information is determined in the first place and by using this
information net income or net loss is ascertained is known as
(a) Nominal method (b) Cash method (c) Conversion method (d) Net profit method
108) If creditors balance eas Rs. 1,000 at 1st Jan. 2017, ending balance of creditors was Rs. 2,000 on
31st Dec. 2017 and a payment of Rs.500 was made to creditors, which of the following is the
amount of purchase made during the year 2017?
(a) Rs. 2,500 (b) Rs 500 (c) Rs 1,500 (d) Rs 2,000
109) If debtors balance was Rs. 2.000 at 1st Jan.2017, credit sales made during the year were
Rs.1,000 and Rs.1,500 were received from debtors, which of the following is the debtors account
balance at 31st Dec. 2017?
(a) Rs.1,000 (b) Rs 2,000 (c) Rs 1,500 (d) Rs 500
110) Calculate the amount of net income or loss if the capital has been increased by Rs.1,000 during
this accounting period drawings Rs.5,000 and Rs.1,000 fresh capital was introduced in the
business
(a) Rs. 5,000 net loss (b) Rs.5,000 net profit (c) Rs.6,000 net loss
(d) Rs.6,000 net profit
111) Single entry system has effect
(a) One effect (b) Two effect (c) Three effect (d) None of the above
112) In single entry system, is not possible to prepare
(a) Receipts and payments Account (b) Trial Balance (c) Balance Sheet
(d) Account sales
113) In single entry system must suited where:
(a) Cash transactions are many (b) Cash transactions are many
(c) Cash & Credit transactions are many (d) None of the above
114) Capital can be obtained by preparing
(a) Cash Book (b) Statement of Affairs (c) Debtors Account (d) Creditors account
115) In single entry system only accounts are opened:
(a) Personal & cash A/c (b) Real A/c (c) Nominal A/c (d) Real & Nominal A/c
116) In single entry system profit is calculated as follows:
(a) Opening capital + Drawings + Fresh Capital + Ending capital
(b) Capital at the end - Drawings - Fresh capital - Opening capital
(c) Capital at the end + Drawings - Fresh capital - Opening capital (d) None of the above
117) A statement of assets and liabilities prepared under the single entry system is called
(a) Balance sheet (b) Financial statement (c) Cash Statement (d) Statement of Affairs
118) Net worth of an organization means the excess of its total assets over total
(a) Expenses (b) Incomes (c) Liabilities (d) Both (a) & (b)
119) Statement of assets & liabilities prepared under Single entry system is called:
(a) Balance sheet (b) Profit & Loss Statement (c) Statement of affairs
(d) Income Statement
120) Statement of assets & liabilities prepared under double entry system is called:
(a) Balance sheet (b) Profit & Loss Statement (c) Statement of affairs
(d) Income Statement
121) More accurate profit and loss account can be prepared in
(a) Modern accounting system (b) Single entry system (c) Double entry system
(d) None of these
122) Opening capital is obtained by preparing
(a) Debtors A/c (b) Creditors A/c (c) Opening Statement of Affairs (d) Cash A/c
123) If opening capital is Rs.10,000 & Closing capital is Rs.15,000 then profit or loss
(a) Loss of Rs.5,000 (b) Profit of Rs.2,500 (c) Profit of Rs.5,000 (d) None of these
124) If building (Closing) Rs.1,00,000, Land (Opening) Rs.1,00,000, Creditors (Opening) Rs.10,000
the opening capital:
(a) Rs.1,90,000 (b) Rs.2,10,000 (c) Rs.90,000 (d) None of these
125) Trial balance is not obtained in:
(a) Double entry system (b) Modern entry system (c) Single entry system
(d) None of these
126) In single entry two-fold aspects of transaction are not recorded, so it is
(a) Complete & Scientific (b) Incomplete & Unscientific (c) Complete & Unscientific
(d) Incomplete & Scientific
127) Single entry system is not possible for:
(a) Sole Trader (b) Partnership (c) Joint Stock Company (d) None of these
128) Balance sheet is prepared under
(a) Single entry system (b) Double entry system (c) Both (a) & (b) (d) None of these
129) In net worth method of single entry, net profit or net loss is ascertained by
(a) Preparing trading and profit and loss account
(b) Comparing opening and closing balance of capital (c) Adopting any other method
(d) None of these
130) Generally, depreciation on fixed assets is calculated on which balance?
(a) Opening Balance (b) Closing Balance (c) Only on additional
(d) Amount realized on asset sole
131) When B/R dishonoured is shown in the ________________ A/Cs
(a) Debtors A/c is debited and Creditors A/c is credited
(b) Creditors A/c is debited and Debtors A/c is credited
(c) B/R account is debited and Creditors A/c is credited
(d) Debtors A/c is debited and B/R A/c is credited
132) Effects of dishonour of B/R is given -
(a) Only in the B/R account (b) Only in the debtors A/c (c) In debtor A/c and B/R A/c
(d) Only in the B/P account
133) Interest on capital is calculate on which capital
(a) Opening capital (b) Closing capital (c) Opening Stock (d) Closing Stock
134) Closing capital can be found by preparing a statement of affairs at the __________ of the year
(a) Opening (b) End (c) Centre (d) All of these
135) A firm has liabilities is Rs.50,000 and Capital is Rs.25,000. Then its assets is ______________
(a) Rs.1,00,000 (b) Rs.25,000 (c) Rs.50,000 (d) Rs.75,000
136) Single entry system keeps one cash book which which mixes up business as well as
_______________ transactions
(a) Private (b) Public (c) Own (d) All of these
137) ______________ is not based on dual aspect concept
(a) Single entry system (b) Double entry system (c) Balance Sheet
(d) Statement of Affairs
138) Trial balance shows machinery of Rs.2,00,000. Depreciation is provided at 10%. The
depreciation on machinery will be____________
(a) Rs.20,000 (b) Rs.1,80,000 (c) Rs.2,20,000 (d) Rs.1,50,000
139) Which of the following equation(s) is (are) true
(a) Assets = Liabilities + Capital (b) Assets - Capital = Liabilities (c) Both (a) & (b)
(d) None of these
140) Which one is correct
(a) Adjusting Closing Capital = Closing capital + Drawings - Additional Capital
(b) Adjusting Closing Capital = Closing capital - Drawings - Additional Capital
(c) Adjusting Closing Capital = Additional Capital + Drawings - Closing Capital
(d) None of these
141) A firm's total sales is Rs.80,000 and its credit sales id Rs.60,000 then its cash sales is -
(a) Rs.20,000 (b) Rs.1,40,000 (c) Rs.70,000 (d) Rs.25,000
142) Debtors on 31.12.2014 is Rs.2,00,000. Cash received from debtors during the year is
Rs.3,00,000. Then the credit sales during the year is __________
(a) Rs.1,00,000 (b) Rs.2,00,000 (c) Rs.3,00,000 (d) Rs.5,00,000
143) Creditors on 1.1.2014 is Rs.1,21,000 and on 31.12.2014 Rs.1,30,000. Cash paid to creditors
during the year is Rs.2,09,000. Then the credit purchase during the year is -
(a) Rs.2,00,000 (b) Rs.2,09,000 (c) Rs.2,18,000 (d) Rs.2,08,000
144) If adjusted closing capital is more than the opening capital, it denotes ____________
(a) Profit (b) Loss (c) Opening Capital (d) Expenses
145) Companies cannot keep books on single entry system because of ______________
(a) Tax Properties (b) Legal Provisions (c) Both (a) & (b) (d) None of these
146) Following are the limitations of incomplete records except _________________
(a) Lack of proper maintenance of records (b) Difficulty in preparing trial balance
(c) Difficulty in ascertaining true profitability of the business (d) Suitability
147) Capital at the end - net profit + drawings =
(a) Capital in Beginning (b) Gross profit (c) Interest on capital (d) Interest on drawings
148) A business is said is to be used _____________ system. It is not following the complete the
principles of bookkeeping of ___________ system.
(a) Double Entry - Single Entry (b) Single Entry - Double Entry
(c) Double Entry - Double Entry (d) Single Entry - Single Entry
149) Single Entry System is_________
(a) A scientific Method (b) An incomplete double entry system (c) None of those
(d) All the above
150) Single Entry System will not be accepted by_________.
(a) Proprietor (b) partners (c) Tax authoriries (d) All the above
151) Single Entry System capital is calculated_________.
(a) Capital = Assets - liabilities (b) Assets = Capital - liabilities
(c) Capital = Asset + liabilities (d) Asset = liabilities - Capitals
152) Credit purchase is obtained from__________.
(a) Total Debtors Account (b) Total creditors Account (c) Statement of affairs
(d) All the above
153) Statement of affair is like a_________
(a) Tiading of account (b) profit and loss Account (c) Balance sheet (d) Cash All
154) Capital in the beginning of the accounting year is ascertained by preparing__________
(a) Debtors Account (b) cash Account (c) opening statement of Affairs (d) Balance sheet
155) In case of networks method of Single Entry System Proftt is ascertained by
(a) Comparing the capital in the beginning of the accounting period and the capital at the end
of the accounting period.
(b) Preparing a Profit and loss account (c) Preparing a Balance sheet (d) None of these
156) profit = Capital at the end + _________ Capital introduced - Capital in the beginning
(a) Sales (b) Drawings (c) Net Purchase (d) Net sales
157) From incomplete records it is possible to prepare_________.
(a) Ledger Aciotrnts (b) Trial balance (c) Statiment of affairs (d) Balance sheet
158) Cash received from Debtors needed for the preparation of cash account can be held
from___________.
(a) Total debtors account (b) Balance sheet (c) Analysis of cash book
(d) Sundry creditors
159) Given the opening and closing balance of Debtors and the figure of credit sales the balancing
figure of total debtors account will give______
(a) Bills retained during the year (b) cash received from Debtors
(c) Closing balance of Uitts receivable (d) Cash paid to creditors
160) Statement of affairs is generally prepared to find out the_________of the business.
(a) Profit or loss (b) Financial position (c) Capital (d) Arithmetical accuracy
161) Closing CaPital + Drawings - Additionaf Capital = __________.
(a) Adjusted OPening Capital (b) Opening Capital (c) Profit or Loss
(d) Adjusted Closing Capital
162) Match the following:
(i) statement of affairs (1) calculate credit sales
(ii) Single Entry (2) Calculate credit purchase
(iii) Sundry Debtors (3) Calculate the capital
(iv) Sundry creditors (a) Unscientific System
(a) (b) (c)
(i) (ii) (iii) (iv) (i) (ii) (iii) (iv) (i) (ii) (iii) (iv)
3 4 1 2 1 2 3 4 3 4 2 1
(d)
(i) (ii) (iii) (iv)
4 3 2 1
163) Match the following
(i) Cash received (1) not entered in Single Entry System
(ii) Total sales (2) Assets - liabilities
(iii) Depreciation (3) Cash Account
(iv) Sundry creditors (4) Unscientific System
(a) (b) (c)
(i) (ii) (iii) (iv) (i) (ii) (iii) (iv) (i) (ii) (iii) (iv)
1 2 3 4 1 2 3 4 4 3 2 1
(d)
(i) (ii) (iii) (iv)
2 3 4 1
164) Assertion: Bill receivable enclosed are debited to Creditor Account.
i) Interest on capital
iv) Drawings
Drawings Rs.3,75,000
Receiptsi and Payments Account for the Year ended 31st March, 2019
Receipts Rs. Payments Rs.
By Rent and
To Balance b/d 21,000
Rates
Cash in hand 3,200 By Lecture fees 4,500
By Sundry
To Entrance fees 2,300 7,200
Expenses
To Subscriptions 46,000 By Fixed Deposit 40,000
To Life membership fees 2,500 By Balance c/d
To Interest received Cash in hand 4,300
on Fixed Deposit 500
To Sale of
22,500
furniture (1.4.2018)
.(Book value Rs.25,000)
77,000 77,000
Additional information:
(ii) At the beginning of th'e year, the club possessed books worth t 20,000 and furniture worth
Rs.20,000.
(iii) Subscription received in advance during the current ).ear anrgunted to T 1,000.
Prepare Income and Expenditure account of the Club for the year ending 31st,March,
Sundar and shanmugam are two partners equally Sundar drew regularly Rs.4,000 at end of every
month. Shanmugam drew is Rs.8,000 regularly.beginning of every month.Calculate interest as
their drawings @10%.
268) Priya and Kala are partners Priya draws Rs. 8,000 at end of each quarter. Interest on drawings
@ 6%. p.a. Kala draws Rs. 2,000 per month, end of the month.
269) Arun and Arora were partner's ratio 5:3. Their fixed capitals as 1.4.2016 were Arun Rs.60,000;
Arora Rs.80,000 Interest on capital @ two Interest as drawings 9 15 o/op.a. profit for the I'ear
ended 31.3.2017 before all above adjustment was Rs.12,600. Drawings: Arun Rs.2,000, Arora t
41000 during the year. prepare profit and Loss Appropriation Account.
270) Write up the capital accounts and current accounts of the partners Kaviya and Dhivya from the
following.
Particular Kaviya Dirrya
Capital as 1.4.04 50,000 40,000
Current A/c as 1.4.04 5,000 (Cr) 3,000(Dr)
Salary 15,000 4,000 .
Commlsslon 5.000 4,000
Interest as capital 8% 8%
Drawings 10,000 8,000
Interest as Drawings 6% 6%
Share of profit 20,000 20,000
IV.Answer the following questios 47 x 5 = 235
271) From the Receipt and Payment Account given below, prepare the Income and Expenditure
Account of clean Delhi club for the year ended March 31, 2017
Dr Receipt and Payment Account for the year ending March 31st,
2017 Cr
Receipts Rs Payments Rs
To Balance b/d By Salary 1,500
Cash in hand 3200 By Rent 800
To Subscriptions 22,500 By Electricity 3,500
To Entrance fees 1,250 By Taxes 1,700
To Donations 2,500 By Printing stationery 380
To Rent of hall 750 By Sundry expenses 920
To Sale of investment 3,000 By Books purchased 7,500
By Fixed deposit with bank 5,000
(on31-3-2014)
Receipts Rs Payments Rs
By Balance c/d
Cash in hand 400
Cash at bank 1,500 1,900
33,200 33,200
272) From the following Receipt and Payment Account for the year ending 31thMarch 2015 of
crickets club. Prepare Income and Expenditure Account for the same period:
Dr Receipt and Payment Account for the year ending March 31, 2015 Cr
Receipts Rs Payments Rs
To Balance c/d 25,000 By Purchase of furniture (1.7.14) 5,000
Bank 25,000 By Salaries 2,000
To Subscriptions By Electricity charges 600
2014 1,500 By Postage and stationery 150
2015 10,000 By Purchase of books 2,500
2016 500 12,000 By Entertainment expenses 900
To Donation 2,000 papers (1.7.14 8000
To Hall rent 300 By Miscellaneous expenses 600
To Interest on bank deposits 450 By Balance c/d
To Entrance fees 1,000 Cash 300
Bank 20,400
40,750 40,750
The following additional information is available:
Receipts Rs Payments Rs
Subscription:
2013-14 7,000
2014-15 30,000
2015-16 5,000 42,000
Additional Information:
Rs
(i) Subscription outstanding as on 31st March, 2015 were Rs. 2000 and on 31st March, 2016
Rs.2,500.
(ii) On 31st March, 2016 Salary outstanding was Rs. 600 and rent outstanding was Rs.1,200.
(iii) The dub owned furniture Rs. 15,000 and books Rs 7,000 on 1st April, 2015. Prepare income
and expenditure account of the dub for the year ended 31st March 2016 and as certain capital
fund on 31st March, 2015. Also prepare a balance sheet as on 31st March, 2016.
276) From the following particulars of Chennai educational society, prepare Receipts and Payments Z
account for the year ended 31st December, 2018
Particulars Rs Particulars Rs
Opening balance as on 1.1.2018 20,000 Lockers rent received 12,000
Investments made 80,000 Sale of furniture 5,000
Honorarium paid 3,000 General expenses 7,000
Donation received 80,000 Postage 1,000
Audit fees paid 2,000 Subscription receive 10,000
277) From the following Receipts and Payments Account of Trichy, Rotary dub, prepare Income and
Expenditure Account for the year ended 31.03.2019
Receipts Rs Paymenta Rs
To Opening Balance By Furniture Purchased 10,000
Cash in hand 11,000 By Rent 2,800
To Sale of old newspaper 3,600 By Postage 1,700
To Member's Subscription 31,000 By General expenses 4,350
To Locker rent 8,000 By Printing and stationery 45,000
To Interest on investments 1,250 By Audit fees 5,000
To Sale of furniture 5,000 By Closing balance
Cash in hand 3,000
278) How will the following items appear in the final accounts of sports club.
Particulars Rs
Stock of sports materials (1.4.2019) 3,000
Sports materials purchased during
current year 9,000
Sale of old sports materials during
current year 500
Stock of sports materials (31.3 .20 19) 4,000
279) How will the following appear in the final account of a club for the year 2017-2018?
Particulars Rs
Particulars Rs
Prize fund on 1.4.2017 50,000
Prize fund investment on 1.4.2017 50,000
Interest received on prize fund investment 5,000
Prizes distributed 6,000
Donation received for prize fund 10,000
280) What shall be the profits of the concern if:
Particulars Rs.
Opening capital 1,60,000
Closing capital 1,80,000
Drawings 36,000
Additional capital 10,000
281) Calculate the missing information:
Particulars Rs.
Closing capital 32,000
Drawings 4,800
Additional capital 8,000
Profit made during the year 9,600
282) Mrs. Geetha started business with Rs.1,20,000 as capital on 1.4.2018. During the year she has
withdrawn at the rate of Rs.1,000 per month. She introduced Rs.20,000 as additional capital. Her
position on 31.3.2019 was as follows.
Particulars Rs.
Bank balance 8,000
Stock 80,000
Sundry debtors 50,000
Furniture 2,500
Cash in hand 2,000
Sundry creditors 25,000
Expenses outstanding 1,000
She keeps her books under single entry system, determine for profit or loss for the year 2003-04.
283) Write up the capital and current accounts of the partners, Kannagi and vasugi from the
following details.
Particulars Kannagi Rs. Vasugi Rs.
Capital on 1.4.2018 1,00,000 60,000
Current Alc on 1.4.2018 3,000(Dr) 2,000(Cr)
Drawing during 2018-19 8,000 5,000
Interest on capital 5,000 3,000
Interest in drawings 240 150
Share of profit 2018-19 12,000 10,000
Partner's salary 4,000 -
284) From the following find out credit sales.
Particulars Rs.
Opening sundry debtors 50,000
Cash received from sundry debtors 80,000
Discount allowed to sundry debtors 2,000
Sales returns 5,000
Closing sundry debtors 75,000
285) From the following details, find out credit purchases:
Particulars Rs.
Opening sundry creditors 75,000
Closing sundry creditors 90,000
Cash paid to sundry creditors 22,500
Discount received 15,000
Purchase returns 7,500
286) M/s Saniya sport equipment does not keep proper records. From the following information, find
out profit or loss and also prepare balance sheet for the year ended 31st December 2017.
31.12.2016
31.12.2017
Particulars
Rs. Rs.
Cash in hand 6,000 24,000
Bank overdraft 30,000 -
Stock 50,000 80,000
Sundry creditors 26,000 40,000
Sundry debtors 60,000 1,40,000
Bills payable 6,000 12,000
Furniture 40,000 60,000
Bills receivable 8,000 28,000
Machinery 50,000 1,00,000
Investment 30,000 80,000
Drawings Rs.10,000 per month for personal use, additional capital introduced during the year
Rs.2,00,000. A bad debts Rs.2,000 and a provision of 5% it to be made on debtors. Outstanding
salary 2,400, prepaid insurance Rs.700, depreciation charged on furniture @10% per annum.
287) Compute the amount of total purchases and total sales of Mr. Amit from the following
information for the year ending on March 31, 2018.
Rs.
Total debtors as on April 01, 2017 40,000
Total creditors as on April 01,2017 50,000
Bills receivable as on April 01, 2017 30,000
Bills payable as on April 01, 2017 45,000
Discount received 5,000
Bad debts 2,000
Return inwards 4,000
Discount allowed 3,000
Cash sales 10,000
Cash purchases 8,000
Total debtors as on March 31, 2018 80,000
Cash received from debtors 1,00,000
Cash paid to creditors 80,000
Cash received against bills receivable 25,000
Payment made against bills receivable 40,000
Total creditors as on March 31, 2018 40,000
Bills payable as on March 31, 2018 50,000
Bills receivable as on March 31,2018 35,000
288) From the following details of vijay who maintains incomplete records, prepare trading and profit
and loss account for the year ended 31st March 2018 and a Balance sheet as on the date.
As on 1.4.2017
As on 31.3.2018
Particulars
Rs. Rs.
Sundry Creditors 37,500 43,750
Furniture 2,500 2,500
Cash 6,250 10,000
Sundry debtors 62,500 87,500
Stock 25,000 12,500
Other details:
Rs.
Drawings 10,000
Discount received 3,750
Discount allowed 2,500
Cash received from sundry debtors 1,35,000
Cash paid to creditors 1,12,500
Sales returns 3,750
Purchase returns 1,250
Sundry expenses paid 8,750
289) From the following information, prepare capital accounts of partners Manoj and Seran, when
their capitals are fluctuating
Manoj
Seran
Particulars
Rs. Rs.
st
Capital on 1 January 2018 ( Cr. balance) 1,00,000 87,500
Drawings during 2018 20,000 17,500
Interest on drawings 500 250
Share of profit for 2018 10,500 8,250
Interest on capital 6,000 5,250
Salary 9,000 Nil
Commission Nil 1250
290) Mala,Kala and Ratna share profits and losses in the ratio of 3: 2:1. The capital on 1st April 2017
was Rs.90,000 for Mala, 75,000 for Kala and Rs.60,000 for Ratna and their current accounts
show a credit balance of Rs.15,000,10,000 and Rs.5000 respectively. Calculate interest on capital
at 5% p.a for the year ending 31st march 2018 and show the journal entries.
291) From the following balance sheets of Subha and Sudha who share profits and losses equally.
Calculate interest on capital at 6% p.a for the year ending 31st December 2017.
Balance sheet as.on 31st December 2017
(a) Profits and losses to be shared in the ratio 3:2 as between Durga and Preethi.
(b) Partners to be entitled to interest on capital @ 5% p.a.
(e) Preethi to receive a commission of Rs.4,000 During the year, the firm made a profit of
Rs.40,000 before adjustment of interest, salary and commission prepare the profit and loss
appropriation account.
296) From the following balance sheets of Subha and Sudha who share profits and losses equally.
Calculate interest on capital at 6% p.a for the year ending 31st December 2017.
Balance sheet as.on 31st December 2017
Dr. ReceiPts and Payments account Cr
Receipts Rs. Payments Rs.
To Cash in hand 1,41,300By Rent and Rates 86,100
Tb Entrance fees 55,200By Salaries 1,09;000
To Strbscription 2,20,000By Electric charges 6,200'
To Donations 1,06,100By Genral exp. 12,500
To insert 4,100By Books 31,200
To Surplus 8,200By Office expenses 45,000
By Investments 1,40,000
By Cash at bank 61,900
By Cash in hand 43,000
5,34,900 5,34,900
Additional Information :
(i) ln the beginning of the year the club bad books worth Rs.3,00,000 and Furniture worth
Rs.58,000.
(iii) Rs.18,000 was due by of Rent in the beginning as well as at,the end of the year.
(iv) An it at 1 get a comrnissiun of 10% on the net profiile before charging such commission.
The profit for the year t Ott,OO0. Drawings were Arritha Rs. 12,000. Ranrita
Rs.8,000. Show Profit and Loss Appropriation Account and the Capital A/c.
312) Show how the following item will appear in the capital account of Mr C and S assuming that
their capitals are fluctuating.
Particulars C S
Capital as on 1.4.2014 80,000 60,000
Drawing during the year 20,000 8,000
Interest on Capital 4,800 3,600
Interest on Drawing 1,000 400
Share of profit 40,000 40,000
Salary to partner 10,000
313) prepare Capital Account of Babu and Gopu. Capitals are fluctuatilg.
Particulars Babu Gopu
Capital as on 1.4.13 60,000 40,000
Drawings 10,000 8,000
Interest on Drawing 1,000 800
Interest on Capital 5,000 4,000
Commission 8,000 -
Partners Salary - 6,000
Share of.Loss 20,000 10,000
314) A and R were partners sharing ratio of 7 : 3. Their Capitals wefe Rs.80,000 and Rs.60,000
respectively.
(iv) A to get a commission of 10% on net profit before charging such commission profit - before
making above adjustment was ( 00,000. Drawing of partner A ( 12,000 and Rs.8,000)
(iv) A to get a commission of 10% on net profit before charging such commission profit - before
making above adjustment was ( 00,000. Drawing of partner A ( 12,000 and R Rs.8,000.
(iv) S to get a commision of 10%.on the net profit and changing such commision.The profit of the
firm year ended.31.03.2015 before making the above adjustment was Rs.1,50,000.Drawings of
the parents during the year
(vi) Rs.30,000 and Mr.S Rs.20,000.Show the profit and loss Approprition A/c partners capitals
and fluctuating.
317) Dinesh and Sugumar entered into partnership agreement on 1st January 2018,
i) Profit and losses to be shared in the ratio 2 : 1lis between Dinesh and Sugumer.
v).Sugumar is to reccive a commission of 10% on the net profit after charging sttch commission
During the year ended on 31st Decembcr 2018, the firm made a profit of to 1,20,000 before
adjustment of interest, salary and commission Prepare the profit and loss appropriatiotr account
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