PGT Commerce Trend Analysis
| KVS – 2018 | KVS – 2017 | KVS – 2016 | NVS – 2019 | NVS – 2016 | NVS – 2014 | DSSSB – 2018 Male | DSSSB – 2018 Female | DSSSB Tire II – 2015 | DSSSB Tire I – 2014 |
| 10 | 16 | 11 | 13 | 16 | 12 | 23 | 20 | 16 | 13 |
| Army School – 2012 | H-TET-2016 | H-TET-2019 | UP PGT – 2015 | Jharkhand PGT- 2017 | |||||
| 24 | 18 | 2 | 28 | 2 |
KVS – 2018
- Voucher prepared for the transaction with multiple debits and multiple credits is known as :
(a) Complex Voucher
(b) Debit Voucher
(c) Credit Voucher
(d) Compound Voucher - Reshma has return goods worth Rs. 10,000 to Rajesh as she found them defective. Which document is to be prepared by Rajesh for the same
(a) Debit Note
(b) Credit Note
(c) Invoice
(d) Cash Memo of Rs. 10,000 - Trade discount is allowed at the time of :
(a) Sale of goods
(b) Receiving the payment for sale of goods
(c) Receiving the payment before due date
(d) Making payment for purchase of goods - Which one is false?
(a) Sub-fields of accounting are book-keeping, financial accounting and management accounting.
(b) There exists a wide gulf between accounting and economics
(c) Accounting means recording transactions and events, not their interpretation
(d) Materiality principle is an exception to the full disclosure principle - Which one is true?
(a) Accounting involves only the recording of business transactions
(b) A transaction which increases the capital is called ‘Income’
(c) The value of human resource is shown as an asset in the balance sheet
(d) Accounting is a service function - Which one is true?
(a) Accounting is a social science.
(b) Economic life of an enterprise is artificially split into periodic intervals in accordance with the Going Concern Assumption.
(c) The assets are classified as current assets and fixed assets in accordance with Accounting Period Assumption.
(d) Revenue is generally recognised at the point of sale in accordance with the matching principle. - Which one of the following statements is not appropriate for ‘Provision’?
(a) Creation of provision satisfies the principle of conservatism
(b) Provision is a charge against profits
(c) Provision is created for known liability
(d) Provision is created for strengthening the financial position of the business. -
Rs. Opening stock 85,000 Purchases 3,07,000 Wages 48,000 Interest on loan 28,000 Closing stock 90,000 Cost of goods sold will be——————-
(a) Rs. 4,00,000
(b) Rs. 3,00,000
(c) Rs. 3,20,000
(d) Rs. 3,50,000 - A machine was purchased on April 1, 2017 for Rs. 10,00,000 and on October 1,2017, a new machine was added for Rs. 4,00,000. Calculate the balance of ‘Machine Account’ as on March 31, 2018, if depreciation is charged @ 20% p.a. on Diminishing Balance method.
(a) Rs. 11,20,000
(b) Rs. 13,20,000
(c) Rs. 11,60,000
(d) Rs. 12,00,000 - A machine is purchased for Rs. 3,00,000 and its salvage value, after its useful life of 9 years, will be Rs. 30,000. Repairing expenses of the machine at the end of 4th year will be Rs. 20,000. What will be the rate of depreciation per annum under straight line method?
(a) 11.11%
(b) 10 %
(c) 9.37%
(d) 10.34%
KVS – 2017
- Luca pacioli, who gave origin to modern accounting got published his book on principles of double entry system in
(a) 1944
(b) 1864
(c) 1494
(d) 1649 - If total assets of the business are Rs 4,50,000 outside liabilities are Rs 2,00,000. Calculate owner equity
(a) Rs. 2,00,000
(b) Rs. 2,50,000
(c) Rs. 3,00,000
(d) Rs. 6,50,000 - Which one of the following is not a part of accounting process?
(a) Recording
(b) Classification
(c) Distribution
(d) Interpretation - The main object of ledger is to ascertain
(a) Total sales
(b) Total purchases
(c) Profit or loss of the business
(d) Net effect of all the similar nature transactions - If a trial balance does not agree, then accountant opens
(a) Drawing account
(b) Suspense account
(c) Capital account
(d) Nominal account - The object of preparing trial balance is
(a) To check the arithmetical accuracy of accounts
(b) To check the accounting book completely and in total nature
(c) To find the economic conditions of business
(d) To get the information of assets and liabilities - Which one is true?
(a) Balance sheet is the best tools to show the financial health of a business.
(b) Profit and loss accounts considered as the tool to measure net worth of business.
(c) Dual aspect concept assume indefinite life of the entity.
(d) None of the above. - The accounting principles can be classified into
(a) Accounting concepts
(b) Accounting conventions
(c) Both (a) and (b)
(d) None of the above - The excess of debit in trading account is called
(a) Net loss
(b) Net profit
(c) Gross loss
(d) Gross profit - Which of the following statements is correct?
(a) Accounting involves only the recording of business transactions
(b) Amount owed to outsiders (other than proprietor) is called capital
(c) Debit means decrease in assets
(d) Accounting is the language of business - The net profit shown by profit and loss account is transferred to
(a) Profit and loss appropriation account
(b) Trading account
(c) Balance sheet
(d) Income statement - What is the amount of gross profit when opening stock is Rs 1,200, closing stock is Rs 750, sales is Rs 30,000, cost of goods sold is Rs 22,750?
(a) Rs 6,500
(b) Rs 7,700
(c) Rs 7,250
(d) Rs 5,300 - Net profit or net loss is shown by
(a) Trading account
(b) Balance sheet
(c) Profit and loss account
(d) All of the above - Original cost = Rs 100000, life = 5 years, expected salvage value = Rs 5000, rate of depreciation per annum = ?
(a) 20.0 %
(b) 19.5 %
(c) 19 %
(d) 19.4 % - Amortisation refers to writing-off
(a) Depleting assets
(b) Wasting assets
(c) Intangible assets
(d) Fictitious assets - X and Y share profits and losses in the ratio of 3: 2. The admit Z for 1/6th share in profit. The new ratio of distribution of profit will be
(a) 3 : 2 : 1
(b) 3 : 2 : 2
(c) 4 : 1 : 1
(d) 3 : 2 : 3
KVS – 2016
- The ending balance of owner’s equity is Rs. 1,02,000. During the year the owner contributed Rs. 15,000 and withdrew Rs. 6,000. If the firm had a net income of Rs. 13,000 for the year, what was the beginning owner’s, what was the beginning owner’s equity?
(a) Rs. 80,000
(b) Rs. 93,000
(c) Rs 96,000
(d) Rs. 89,000 - Which one of the following errors is disclosed by Trial Balance?
(a) Omission of the recording of a transaction
(b) Partial omission of an entry
(c) Compensating error
(d) Error of principle - The practice of appending notes regarding contingent liabilities in accounting statements is in pursuant to :
(a) Money measurement concept
(b) Convention of disclosure
(c) Convention of conservatism
(d) Convention of consistency - Accounting Period Postulate:
(a) Suggest the companies to prepare financial statements on the basis of a systematic time interval, even though the operating cycle (s) of the entity may be incomplete
(b) Refers to the fact that adjusting entries must be made before financial statements are prepared periodically
(c) Suggest companies to prepare financial statements on a periodic basis – when all operating cycles are complete
(d) Refers to the limited life of a joint venture - A machinery was purchased and installed on 1st April, 2015 by X Ltd. Costing Rs. 5,00,000 with projected useful life of 10 years and estimated salvage value of Rs. 50,000. If the company charges depreciation @ 20% by diminishing balance method, amount of depreciation to be charged in 2nd year, i.e., on 31st March 2017 shall be:
(a) Rs. 72,000
(b) Rs. 90,000
(c) Rs. 80,000
(d) Rs. 1,00,000 - A transport company purchased a delivery truck for Rs. 60,00,000. The company estimates that the truck will be driven 1,00,000 km over it’s 10 years useful life. The estimated salvage value is Rs. 12,00,000. The truck was driven 15,000 km in 2015. Which method results in the highest depreciation expenditure for 2015?
(a) Written down value method
(b) Double decline balance
(c) Straight line method
(d) Sum of the years digits - Which one is false?
(a) Depreciation is an amortised expenditure
(b) Reducing Balance Method of Depreciation is followed to have a uniform charge for depreciation and Repairs and Maintenance together
(c) Straight Line Method of Depreciation is followed to have a uniform charge for depreciation and Repairs and Maintenance together
(d) Providing depreciation in the accounts reduces the amount of profits available for dividend. - X and Y are partners sharing profits and losses in the ration of 3:1. They admit Z as a partner who pays Rs. 4,000 as his share of goodwill. The new profit sharing will be 2:1:1. The amount of goodwill will be credited to :
(a) X and Y as Rs. 3,000 and Rs. 1,000 respectively
(b) X only
(c) X and Y as Rs. 1,000 and Rs 3,000 respectively
(d) Y only - Which one is true?
(a) When goodwill does not appear in the books, goodwill is raised by crediting continuing partners in the gaining ratio unless agreed otherwise
(b) In the event of retirement of a partner, if the Joint Life Policy already appears at its surrender value, no further adjustment is required.
(c) Joint Life Policy becomes due in the event of death of any of the partners or on the maturity of policy, whichever is later.
(d) When goodwill appears at an amount which is more than its agreed value, the difference will be credited to all partners’ capital accounts in the case of retirement of a partner. - Which one is true?
(a) In case Memorandum Revaluation account is opened, the assets and liabilities appear in the New Balance Sheet at their revised values
(b) The retiring partner may claim a share in the profits of the firm even after his retirement if his accounts are not settled
(c) All accumulated profits and reserves are to be transferred to the Profit and Loss Adjustment Account on admission of a new partner.
(d) A dormant partner has to give public notice of his retirement - Which of the following rights usually not available to a partner consequent to the dissolution of a firm ?
(a) Right to restrain any partner or his representatives from the use of firm name or property
(b) Right to return of premium on premature winding up
(c) Right of equitable distribution of firm’s property
(d) Right to be consulted
NVS – 2019
- A business borrowed Rs. 60,000 from its bank and used the cash to buy a new computer. How is accounting equation affected by these transactions?
(a) Assets increased; liabilities decreased
(b) Assets unchanged; liabilities increased
(c) Assets increased; liabilities increased
(d) Assets unchanged; liabilities decreased - On a particular date, the assets of a business are worth Rs.2,00,000 and its capital is Rs.70,000. Its liabilities on that date shall be:
(a) Rs. 1,30,000
(b) Rs. 70,000
(c) Rs. 2,70,000
(d) Rs. 1,10,000 - A nominal account having debit balance represents:
(a) Assets
(b) Income or gain
(c) Liabilities
(d) Expense or loss - The process of transferring the transactions relating to changes in a particular item at one place in the form of a account is called:
(a) Posting
(b) Balancing
(c) Journalising
(d) Casting - On checking the list of balances on the creditors’ ledger accounts, it was found that the total is Rs. 2,250 more than the balance on the creditors control A/c in the general ledger.
Which of the following errors could, by itself, account for this difference?
(a) Total of contra entries against debtor A/c is overstated by Rs. 1,125
(b) A creditors ledger A/c with a debit balance of Rs. 1,125 has been treated as a credit balance
(c) Purchases day book overcast by Rs. 2,250
(d) A credit note to the value of Rs. 1,125 omitted from a creditors ledger A/c - Suspense account having debit balance will be shown in the:
(a) Assets side of the balance sheet
(b) Debit side of the profit and loss account
(c) Credit side of the profit and loss account
(d) Liabilities side of the balance sheet - On 1st January 2009, Rs. 1,750 was given to a petty cashier. The amount spent by him was Rs. 1,250. on 1st February, the cashier under the imprest system will receive:
(a) Rs. 1,250
(b) Rs. 1,750
(c) Rs. 500
(d) Rs. 3,000 - After calculating the firm’s profit, the accountant discovered the following:
(i) A fixed asset costing Rs. 50,000 has been included in the Purchases A/c
(ii) Stationary costing Rs.10,000 has been included as closing stock of raw materials, instead of stationary
These two errors would have the effect of:
(a) Overstating both gross and net profit by Rs. 50,000
(b) Understating gross profit by Rs. 40,000 and Understating Net Profit by Rs. 50,000
(c) Understating Gross profit by Rs. 60,000 and Understating Net Profit by Rs. 50,000
(d) Understating both gross and net profit by Rs. 40,000 - If the merchandise inventory at the end of the year is overstated by Rs.7,500, the error will cause:
(a) Understatement of net income for the year by Rs.7,500
(b) Overstatement of cost of merchandise sold for the year by Rs.7,500
(c) Understatement of gross profit for the year by Rs. 7,500
(d) Overstatement of net income for the year by Rs. 7,500 - A sole proprietor decided to use the same bank account for his personal affairs as for his business. Which of the following accounting principles is violated?
(a) Entity
(b) Objectivity
(c) Measuring unit
(d) Going concern - If the value of gross profit and indirect expenses of a concern are Rs. 4,00,000 and Rs. 1,00,000 respectively, the value of net profit will be:
(a) Rs. 6,00,000
(b) Rs. 3,00,000
(c) Rs. 4,00,000
(d) Rs. 5,00,000 - Opening stock + purchases + direct expense ‒ closing stock =?
(a) Net purchases
(b) Stock consumed
(c) Gross profit
(d) Cost of goods sold - If a company has liabilities of Rs. 19,000 and the owner’s equity is Rs. 57,000, the assets of the company are:
(a) Rs. 57,000
(b) Rs. 67,000
(c) Rs. 38,000
(d) Rs. 76,000
NVS – 2016
- When interest is allowed on capital which of the following is true with respect to accounting equation?
(a) Both assets and capital will increase with the same amount
(b) Liabilities will decrease and capital will increase with the same amount
(c) Capital will increase and decrease with the same amount
(d) Liabilities will increase and capital will decrease with the same amount - Jain’s opening capital was Rs. 2,80,000 and closing capital was Rs. 4,00,000. During the year, the introduced Rs. 1,00,000 as additional capital and he made a profit of Rs. 80,000. His drawings during the year were:
(a) Rs. 60,000
(b)Rs. 80,000
(c) Rs. 1,00,000
(d) Rs. 1,20,000 - A document which provides evidence of the transaction is called:
(a) Source document
(b)Accounting voucher
(c) Debit voucher
(d) Credit voucher - While preparing ‘Bank Reconciliation Statements; with adjusted Cash Book, which of the following will be recorded in the Cash Book to find out adjusted Cash Book balance?
(a) Cheques issued but not yet presented for payment
(b) Cheques deposited but not yet collected
(c) Interest allowed by the bank
(d) An error in the pass book - The accounting concept based on the policy of ‘Playing safe’ is known as:
(a) Full disclosure concept
(b)Consistency concept
(c) Revenue recognition concept
(d) Conservatism concept - Which of the following is not an attribute of reliability of accounting information ?
(a) Nutrality
(b) Timeliness
(c) Verifiability
(d) Faithfulness - Which of the following is correct ?
(a) Operating Profit = Net Profit − Non-Operating Expenses + Operating Incomes
(b)Operating Profit = Net Profit − Non-Operating Expenses − Operating Incomes
(c) Operating Profit = Gross Profit + Non-Operating Incomes
(d) Operating Profit = Net Profit + Non- Operating Expenses − Non-Operating Incomes - While preparing financial statements if, closing stock is given in the trial balance then it will be:
(a) Debited to trading Account.
(b)Presented in the balance sheet as an asset
(c) Credited to Trading Account
(d) Credited to Trading Account as well will be presented in the balance sheet as an asset - A partner withdrew Rs. 20,000 at the end of each half year. Interest on his total drawings will be calculated for how many months?
(a) 6
(b) 3
(c) 1.5
(d) 4.5 - Interest allowed on partner’s loan will be debited to :
(a) Partner’s Loan Account
(b)Partner’s Capital Account
(c) Profit & Loss Account
(d) Profit & Loss Appropriation Account - Ravi and Mohan were partners in a firm with capitals of Rs 3,00,000 and Rs. 5,00,000 respectively. Kumar was admitted as a new partner for 1/4th share in profits. Kumar brought Rs. 4,00,000 as his capital. The value of goodwill of the firm will be:
(a) Rs. 4,00,000
(b) Rs. 3,00,000
(c) Rs. 5,00,000
(d) Rs. 6,00,000 - Q, a partner in the firm of P,Q and R, died on the Balance Sheet date His share in the profit of the firm, in the year of death, will be debited to :
(a) Profit & Loss Suspense Account
(b) Profit & Loss Appropriation Account
(c) Profit & Loss Account
(d) Profit & Loss Adjustment Account - In case of dissolution of partnership firm, which of the following sections of the ‘Indian Partnership Act, 1932’ provides for the settlement of assets between the partners?
(a) 45
(b) 47
(c) 46
(d) 48 - X and Y were partners in a firm sharing profits in 3:2 ratio. Their capitals were Rs. 3,00,000 and Rs. 5,00,000 respectively. Z was admitted as a new partner for 1/4th share in the profits. Z brought Rs. 3,00,000 as his capital. The amount of goodwill Premium brought by Z will be:
(a) Rs. 30,000
(b) Rs. 1,00,000
(c) Rs. 50,000
(d) Rs. 25,000 - The trial Balance of ‘Vinay Traders’ as on 31-3-2016 showed the following balances:
Debtors Rs. 3,00,000
Provision for Bad Debts Rs. 20,000
Bad Debts Rs. 10,000
You are required to write off further bad debts Rs. 5,000 and create a provision of 5 % on debtors for bad & doubtful debts. The amount of new provision for bad & doubtful debts will be:
(a) Rs. 15,000
(b) Rs. 9,750
(c) Rs. 14,750
(d) Rs. 5,250 - The original cost of a machine is Rs. 5,00,000 and its useful life is 10 years. The net residual value is estimated at Rs. 1,00,000. The rate of depreciation according to straight line method will be:
(a) 10%
(b) 8%
(c) 15%
(d) 12%
NVS – 2014
- Which of the following comes first in accounting cycle ?
(a) Recording in subsidiary books
(b) Preparing trading account
(c) Posting in ledger accounts
(d) Entering in trial balance - Goods withdrawn by owner for his personal use will be-
(a) Debited to goods account
(b) Debited to drawings account
(c) Debited to capital account
(d) Debited to cash account - Which of the following error can be detected by trial balance ?
(a) Error of omission
(b) Error of principle
(c) Error in casting of subsidiary books
(d) Error of commission - If overdraft balance as per cash book is Rs. 10,000 and bank charges not recorded in cash book amount to Rs. 1,000, the-balance as per pass book, will be–
(a) 11,000 Credit
(b) 11,000 Debit
(c) 9,000 Credit
(d) 9,000 Debit - Overcasting of sales books, could be rectified by-
(a) Debiting suspense account and crediting sales account
(b) Debiting sales account and crediting suspense account
(c) Debiting cash account and crediting sales account
(d) Debiting sales account and crediting cash account - According to ………personal expenses paid by owner from his own pocket should not be recorded in accounting-books.
(a) Going Concern Concept
(b) Cost Concept
(c) Business Entity Concept
(d) Conservatism - Outstanding expenses shown in trial balance should be shown on-
(a) Debit ‘side of Profit arid Loss A/c
(b) Credit side of Profit and Loss A/c
(c) Assets side
(d) Liability side - Under fluctuation method interest on partner’s capital is-
(a) Credited to partner’s current account
(b) Credited to partner’s capital account
(c) Debited to ‘partner’s current account
(d) Debited to partner’s capital account - A and B contributed capital of Rs. 90,000 and 85,000 respectively and agreed to share profit and loss in the ratio of 3 : 2 What will be the balance of A’s capital after revaluation if machinery worth Rs. 1,20,000 valued at Rs. 90,000 and creditors worth Rs. 45,000 revalued at Rs. 35,000?
(a) 1,02,000
(b) 97,000
(c) 78,000
(d) 73,000 - Partnership firm, will not be compulsorily dissolved by court in case of–
(a) Persistent breach of agreement by partners
(b) Business become illegal due to change in law
(c) Continuous huge -losses of business
(d) Retirement of one partner out of three partners - Which of the following is not based upon expectations?
(a) Useful life
(b) Residual Value
(c) Historical Value
(d) Salvage Value - If the depreciated value of asset costing Rs. 1,00,000 after 3 years comes at Rs. 76,000 under straight line depreciation, rate of depreciation will be–
(a) 8%
(b) 24%
(c) 16%
(d) 55.33%
DSSSB – 2018 Male
- Who among the following is considered as the ‘Father of Accounting’?
(a) Henry Dunant
(b) Robert Stephenson
(c) Luca Pacioli
(d) Elton Mayo - Which of the following is treated as per the principles of Nominal Account?
(a) Bad Debts Recovery Account
(b) Drawings Account
(c) Commission Received in Advance
(d) Bills Payable Account - “Debit all Expenses & Loss, Credit all Gains & Incomes” is a rule that is applicable for:
(a) Natural Personal Accounts
(b) Representative Personal Accounts
(c) Nominal Accounts
(d) Intangible Real Accounts - Which one among the following is NOT a subsidiary book in Accounting
(a) Cash Book
(b) Sales Book
(c) Journal Book
(d) Sales Return Book - Which of the following errors CANNOT be detected through Trial Balance?
(a) Posting wrong amount
(b) Treating an expense as an asset
(c) Posting an amount on the wrong side
(d) Wrong Totaling - Which of the following options best explains a Bank Reconciliation Statement?
(a) It is a part of Cash Book
(b) It is a separate statement
(c) It is a sub-division of a journal entry
(d) It is a ledger account - Which of the following transactions may NOT be categorised as ‘error of principle’ as far as Accounting is concerned?
(a) Treating an income as liability
(b) Treating a liability as income
(c) Treating an asset as expense
(d) Omitting the entire amount to record after transaction - Which one of the following is NOT a transaction as per Accounting Principles?
(a) Mr. X started a business with capital (brought in cash) of Rs.40,000
(b) Mr. X paid salaries worth Rs.5,000 to staff
(c) Mr. X purchased machinery worth Rs.20,000 in cash
(d) Mr. X placed an order with D’Souza & Co. for goods worth Rs.10,000 - Which of the following Depreciation Accounting policies is usually suitable for mining companies under normal circumstances?
(a) Annuity Method
(b) Insurance Policy Method
(c) Depletion Method
(d) Written Down Value Method - During an inflationary period————method of material issue would help to ensure that the cost of production determined is approximately the current prevailing price level.
(a) FIFO
(b) Specific Price Method
(c) Base Stock Method
(d) LIFO - A Secret Reserve can be created through:
(a) Undervaluation of assets and liabilities
(b) Undervaluation of current assets and undervaluation of current liabilities
(c) Over valuation of assets and liabilities
(d) Over valuation of assets and undervaluation of liabilities - As per————-accounting concept, a business is treated as separate from its owner’s personal affairs.
(a) Business Entity
(b) Dual Aspect
(c) Historical Cost
d) Perpetual Succession - Suppose these are two partners A and B. A brings Rs.2,00,000 while B brings in Rs.1,00,000 capital for the firm. A is actively involved in the business, while B is not at all contributing to it. The profit and Loss account reveals a profit of Rs.30,000 for the year. How will the profit be distributed among A and B respectively in the absence of a Partnership deed?
(a) Rs. 30,000 and Rs. 0
(b) Rs. 10,000 and Rs. 20,000
(c) Rs. 15,000 and Rs. 15,000
(d) Rs. 20,000 and Rs. 10,000 - What is the person who, without being a real partner, so behaves as to lead others to believe him to be a partner called?
(a) Partner By Estoppel
(b) Dormant Partner
(c) Sub Partner
(d) Sleeping Partner - Rajan and Sajan started a business on 1st January 2017 with capital of Rs.30,000 and Rs.20,000 respectively. According to the partnership deed, Sajan is entitled to a salary of Rs.500 per month while interest to be allowed on capital is @ 6% for both the partners the remaining profit must be distributed in the ratio of 5:(c) After 31st December 2017 the firm earned a gross profit of Rs.25,000. During the year Rajan and Sajan withdrew Rs.8,000 and Rs.10,000 respectively. Calculate the closing balance of Rajan and Sajan respectively assuming profits were credited in their respective capital accounts.
(a) Rs. 33,800, Rs. 23,200
(b) Rs. 32,500, Rs. 21,500
(c) Rs. 31,800, Rs. 22,200
(d) Rs. 31,600, Rs. 22,400 - Accounting for taxes on income is dealt with in :
(a) Accounting Standard 22
(b) Accounting Standard 13
(c) Accounting Standard 20
(d) Accounting Standard 9 - Which treating funds, ———— recognises revenue at the point of sale and expenses when they are incurred
(a) Realisation Method
(b) Revenue Generation Method
(c) Accrual Method
(d) Recognition Method - Which one of the following is generally NOT a characteristic of a Traditional Accounting System?
(a) It is historical in nature
(b) It matches current revenues with historical costs
(c) It considers inflation
(d) Profit and Loss account does not consider increase in net asset value - Which of the following is NOT a feature of Bookkeeping?
(a) A person responsible for bookkeeping is called a Bookkeeper
(b) It is the recording phase of an accounting system
(c) Bookkeeping does not require any special skills
(d) It compiles clerical activities not analytical in nature - Find the odd one out with regard to branches of Accounting
(a) Corporate Accounting
(b) Management Accounting
(c) Financial Accounting
(d) Cost Accounting - The appearance of a contingent liability in the footnote of a company’s balance sheet is a result of ——–accounting principle.
(a) Conservatism
(b) Disclosure
(c) Consistency
(d) Materiality - The value of assets are usually shown in the balance sheet on the basis of :
(a) Unexpired Cost Value
(b) Replacement Cost Value
(c) Market Value
(d) Revaluated Cost - The Subject matter of Accounting Standard 20 is :
(a) Accounting for Amalgamation
(b) Earnings per share
(c) Consolidated Balance Sheet of Holding Company
(d) Employee Stock Option Plan
DSSSB – 2018 Female
- Which of the following is an example of long term liability?
(a) Mortgage
(b) Creditors
(c) Bank Overdraft
(d) Accounts payable - Owner’s equity (Capital) can be calculated as:
(a) Current assets – Current liabilities
(b) Fixed assets – Current liabilities
(c) Fixed assets – Fixed liabilities
(d) Total assets – Total liabilities - An organization has furniture of Rs.90,000, Cash Rs.1,00,000, Debtors Rs.10,000, Other assets Rs.1,000 and Owner’s equity Rs.90,000. What is the liability on the organization?
(a) Rs.2,90,000
(b) Rs.2,91,000
(c) Rs.2,01,000
(d) Rs.1,11,000 - A firm had a capital balance of Rs.1,00,000 at the beginning of a year. At the end of the year, the firm had total assets of Rs.1,50,000 and total liabilities of Rs.70,000. If the total withdrawals during the period were Rs.30,000, what was the amount of Net profit/Net loss for the year?
(a) Rs.10,000 loss
(b) Rs.50,000 loss
(c) Rs.10,000 profit
(d) Rs.20,000 loss - A debit will cause the balance in a liability account to:
(a) Accumulate
(b) Increase
(c) Decrease
(d) Write off - Which of the following statements concerning the three-column cash book is true?
(a) The bank column can have either a debit or a credit balance
(b) The discounting column totals should be the same to enable balancing of
(c) The folio column represents the third column of cash book
(d) It is allowable for the cash column to have a credit balance at the end of the period - A contra entry in the cashbook would include:
(a) Totaling up the bank and cash columns at the end of each month
(b) Withdrawing cash from the bank account
(c) Transferring cash into the petty cash book
(d) Transferring the discounts to the accounts in the general ledger - A Bank Reconciliation Statement is prepared to know the causes for difference between:
(a) Balance as per bank column of the cash book and the pass book
(b) Balance as per bank column of the cash book and cash column of the cash book
(c) Balances as per cash column of the cash book and pass book
(d) Both the balances as per cash column of the cash book and the pass book and Balance as per bank column of the cash book and pass book - An error wherein an invoice from a supplier of electrical equipment has been debited to electricity account is known as:
(a) A compensating error
(b) An error of principle
(c) An error of commission
(d) An error of original entry - A sale of Rs.25,000 to A was entered as a sale to B. This is an example of:
(a) Error of ommission
(b) Error of principle
(c) Compensating error
(d) Error of commission - Which one of the following errors is an error of Principle?
(a) Purchase transaction entered in Purchase returns book
(b) Cash sale of Rs.300 wrongly entered in sales book
(c) Debiting repairs account instead of furniture account
(d) Sale of Rs.200 entered in the books as Rs.2000 - Who among the following is an internal user of accounting information?
(a) Government
(b) Manager
(c) Stockholder
(d) Supplier - Which of the following is not the characteristic of accounting information?
(a) Understandability
(b) Relevance
(c) Proficiency
(d) Reliability - GAAP is the acronym for:
(a) Grossly Accepted Accounted Principles
(b) General Annual Accounting Principles
(c) Globally Accepted Accounted Principles
(d) Generally Accepted Accounting Principles - A concept that business enterprise will not be liquidated or sold out in the near future is known as:
(a) Business Entity
(b) Going concern
(c) Matching concept
(d) None of these - A company uses straight line method of depreciation for an equipment that costs Rs.28,000, has salvage value of Rs.3,000 and has a five years’ useful life. What will be the book value of the asset at the end of third year?
(a) Rs,10,000
(b) Rs.15,000
(c) Rs.18,000
(d) Rs.13,000 - If opening stock of 50 units of finished goods are valued at Rs.10 each and the average unit cost of 500 units produced during the period is Rs.8.90, which method of stock valuation gives a closing stock value of Rs.9 per unit?
(a) Marginal cost
(b) Weighted average
(c) FIFO
(d) Absorption cost based on normal activity - Cost of goods sold can be calculated as:
(a) Opening stock + Purchase + Direct expenses – Closing stock
(b) Opening stock + Purchase + Direct expenses + Closing stock
(c) Purchase + Direct expenses
(d) Purchase + Direct expenses + Closing stock - A and B are partners sharing profits and losses in the ratio of 2:5. They admit C for 1/4th share in future profits. New ratio between A, B and C will be:
(a) 6 : 7 : 15
(b) 7 : 6 : 15
(c) 15 : 6 : 7
(d) 6 : 15 : 7 - A and B are partners sharing profits in the ratio of 3:2 (A’s Capital is Rs.30,000 and B’s Capital is Rs.15,000). They admitted C and agreed to five 1/5th share of profits to him. How much C should bring in towards his capital?
(a) Rs.9,000
(b) Rs.11,500
(c) Rs.12,000
(d) Rs.14,500
DSSSB 2015 Tire II
- Owing of the business are called
(a) Liabilities
(b) Capital
(c) Net worth
(d) Assets - Which of the following transactions would cause a change in ‘Owners’ equity?
(a) Repayment of Bank loan
(b) Payment of dividends and unprofitable operations
(c) Sale of land on credit
(d) Purchase of assets and incurrence of liabilities - The Receipts and Payments Account of a non-profit organization is a
(a) Nominal Account
(b) Real Account
(c) Income Statement Account
(d) Financial Account - A customer returning the goods purchased on credit, may inform the seller by sending
(a) Debit Note
(b) Credit Note
(c) Court Notice
(d) Return Invoice - Cash sales will be recorded in
(a) Sales Day book
(b) Cash Book
(c) Purchase Book
(d) Return inward Book - General reserve is created from
(a) Capital Profit
(b) Revenue Profit
(c) Only Profits
(d) By sales of assets - Accounting Standard 14 is related with
(a) Amalgamation
(b) Valuation of stock
(c) Depreciation accounting
(d) Valuation of assets - Which one of the following items should be taken as of a capital nature?
(a) Rs. 2,000 spent on dismantling plant and machinery to more convenient site
(b) Rs. 1,000 paid for removal of stock to a new site
(c) Rs, 5,000 paid for erection of a new machine
(d) A sum Rs, 5,000 was expended on reinstalling plant and machinery - Depreciation of fixed assets is an example of
(a) Revenue expenditure
(b) Capital expenditure
(c) Deferred revenue expenditure
(d) All of the above - Which of the following is non-trading charges
(a) Preliminary expenses written off
(b) Discount on issue written off
(c) Provision for taxation
(d) All of the above - Cost of goods sold excludes
(a) Opening stock
(b) Closing Stock
(c) Wages and Salary
(d) Salesmen Commission - In case of rise in price levels, the most suitable method for valuing materials issued is
(a) LIFO
(b) FIFO
(c) Simple average
(d) Weighted average - Which of the following is not depreciated?
(a) Building
(b) Land
(c) Plant and Machinery
(d) Office equipment - Public notice is required to be given in the case
(a) Admission of minor
(b) Death of a partner
(c) Retirement by sleeping partner
(d) Exercising option to continue of not, on attainment of majority by the minor - Property of the firm does not include
(a) Trademark owned by the firm
(b) Property acquired by or for the firm
(c) Goodwill of the business
(d) Property belonging to the partners - Profit = Total revenue – _________?
Choose the suitable answer for blank.
(a) Total cost
(b) Total price
(c) Total sale
(d) None of these
DSSSB 2014 Tire I
- Rebate on bills discounted is
(a) An item of income
(b) A liability
(c) Income received in advance
(d) None of the above - A sole trader purchased goods for home use and paid cash from office this transaction is recorded in
(a) Cash book
(b) Purchase Day Book
(c) Journal Proper
(d) No need of recording anywhere in books - Bank Reconciliation is a statement prepared to reconcile
(a) Trial Balance
(b) Cash Bank
(c) Bank A/c
(d) Cash as per cash book with bank balance as per bank pass book - Suspense A/c is generally opened to rectify
(a) Errors of principle
(b) One sided errors
(c) Compensating errors
(d) All types of errors - Find the cost of goods sold if goods are sold for Rs. 2,000 at 25% profit on cost:
(a) Rs. 1,600
(b) Rs. 1,500
(c) Rs. 1,000
(d) Rs. 1,800 - Bad debts recovered is
(a) Credited to P and L A/c
(b) Debited to P and L A/c
(c) Reduced from debtors in Balance Sheet
(d) Added to debtors in Balance Sheet - Closing stock is generally valued at
(a) Cash price
(b) Market price
(c) Cost price or market price whichever is higher
(d) Cost price or market price whichever is lower - Which among the following statement is correct in relation with difference between a Trail Balance and Balance Sheet?
(a) Both are statements not accounts
(b) Trial Balance is the Balance of all ledger account while Balance Sheet is statement of financial position
(c) Trial Balance can be prepared at any time, but balance Sheet is prepared once in a financial year
(d) Trial Balance ensures arithmetical accuracy while Balance Sheet provide accounting accuracy - If opening stock is Rs. 10,000 net purchase Rs. 70,000 wages Rs. 2,500 carriage inward Rs. 500 and closing stock Rs. 15,000. what is the manufacturing cost
(a) Rs. 65,000
(b) Rs. 83,000
(c) Rs. 68,000
(d) Rs. 73,000 - What is the correct sequence of the following actions required for the preparation of financial accounts?
(a) Trading account
(b) Making adjusting Entries
(c) Balance Sheet
(d) Profit and Loss A/c
Select the correct answer from the codes given below :
Codes :
(a) 4, 2, 1, 3
(b) 2, 4, 3, 1
(c) 2, 1, 4, 3
(d) 4, 2, 3, 1 - X and Y are partners in a firm sharing profits in the ratio of 2:1. Z is admitted with a 1/3 profit sharing. What will be the new profit sharing ratio of x, y and z?
(a) 3 : 3 : 3
(b) 4 : 3 : 2
(c) 4 : 2 : 3
(d) 2 : 3 : 4 - Provision for bad debt is made as per the
(a) Entity concept
(b) Conservatism concept
(c) Cost concept
(d) Going concern concept - Total profit means
(a) Cost – Profit
(b) Total Revenue – Total cost
(c) Price – Sales
(d) All of these
Army School 2012
- Term “current asset” does not include
(a) Cash
(b) Stock-in-trade
(c) Furniture
(d) Advance payment - Life insurance premiums received by an insurance company should be classified as
(a) Accrued asset
(b) Accrued liability
(c) Prepaid expense
(d) Unearned revenue - Owners equity stands for
(a) Fixed assets –fixed liabilities
(b) Fixed assets – current liabilities
(c) Current assets –fixed liabilities
(d) Total assets – total liabilities - Which of the following transaction result in increase of assets and increase in owner’s equity ?
(a) Bonus shares issued
(b) Shares issued for cash
(c) A dividend is declared
(d) All of the above - Identify the transaction that will result in decrease in owner’s equity and increase in liabilities.
(a) Issue of bonus shares
(b) Shares issued in payment of bills payable
(c) Shares issued for purchase of land and building
(d) None of the above - Investment by the owner would result in ____________ in capital and increase in __________.
(a) Increase; liability
(b) Decrease; liability
(c) Increase; asset
(d) Decrease; asset - Insurance unexpired account is a ___________ account
(a) Personal
(b) Nominal
(c) Real
(d) Fictitious - If Mr. Gul a debtor of Rs. 4,000 has become insolvent and a dividend of 50% is declared, the entry is
(a) Dr. Bad Debts 2,000
To Profit & Loss A/c 2,000
(b) Dr. Cash 2,000
To Bad Debts 2,000
(c) Dr.Cash 2,000
Dr. Bad Debts 2,000
To Debtors 4,000
(d) Dr. Bad Debts 2,000
To Debtors 2,000 - If stock worth Rs.10,000 (that has not been insured) is destroyed by fire, the accounting entry is
(a) Dr. Profit & Loss A/c 10,000
Trading A/c 10,000
(b) Dr. Stock A/c 10,000
Cr. Trading A/c 10,000
(c) Dr. Trading A/c 10,000
Cr. Stock A/c 10,000
(d) None of the above - Adjustment Entry for rent received in advance would be-
(a) Cash A/c
To Rent Received in Advance A/c
(b) Cash A/c Dr.
To Rent A/c
(c) Rent A/c Dr.
To Rent Received in Advance A/c
(d) Advance Rent A/c Dr.
To Rent A/c - An entry of Rs 840 being debited to Surbhi’s A/c as Rs 480 would be an error of
(a) Principle
(b) Commission
(c) Omission
(d) Negligible significance - According to the _________concept, the proprietor is treated as a creditor to the extent of his capital.
(a) Cost
(b) Entity
(c) Money measurement
(d) Dual aspect - Heavy initial expenditure on advertising the launch of a new product should be classified as
(a) Capital expenditure
(b) Revenue expenditure
(c) A loss
(d) Deferred revenue expenditure - Which of the following is/are member (s) of the International Accounting Standards Committee?
(a) The ICAI
(b) The ICWAI
(c) Both (a) and (b)
(d) Neither (a) nor (b) - Mark out which is not a capital expenditure.
(a) Cost of issuing shares and debenture
(b) Wages paid for construction of a new office
(c) Purchase of a new spark plug for Rs.9.75
(d) Repair on a secondhand vehicle newly purchased - If Rs.15,000 is spent on the repair of a secondhand machinery and Rs.2,500 on freight in connection with its acquisition, what is the amount of capital expenditure ?
(a) Rs 15,000
(b) Rs 17,500
(c) Rs 12,500
(d) Rs 2,500 - Window dressing is prohibited owing to
(a) Convention of disclosure
(b) Convention of materiality
(c) Convention of conservatism
(d) Accrual concept - In the absence of an agreement to the contrary, the partners are entitled to________ interest on loans to the firm,________.
(a) 6%; only when there are profits
(b) 9%; only when there are profits
(c) 6%; whether or not there are profits
(d) 9%; whether or not there are profits - X and Y are partners sharing profits in ratio of 3:2. A is admitted as a partner entitled to 1/3 Share of the profit. Tick the new profit sharing of X ,Y and A.
(a) 3:2:1
(b) 1:2:3
(c) 5:4:6
(d) 6:4:5 - A, B and C are partners in the ratio of 1/5 : 1/3 : 7/15 . C retires and his share is taken up by A and B in the ratio of 3 : 2. The new profit-sharing ratio will be
(a) 13 : 12
(b) 14 : 15
(c) 15 : 14
(d) 12 : 13 - What would be the accounting entry for a partner’s withdrawal of cash in lieu of salary ?
(a) Dr. Salary A/c
To Cash A/c
(b) Dr. Cash A/c
To Partner’s Current A/c
(c) Dr. Cash A/c
To Salary A/c
(d) Dr. Partner’s Current A/c
To Cash A/c - Given: Machinery cost Rs 30,000. Scrap value Rs 10,000. Life 5 years. Rate of interest 5%. Reference to sinking fund table 0.180975. The depreciation per year will be
(a) Rs. 4,000
(b) Rs. 3,619.50
(c) Rs. 8,000
(d) Rs. 5,429.25 - When FIFO method is in use, the closing inventory is valued at
(a) Prevailing market price
(b) Recent cost paid
(c) Oldest price paid
(d) Price furthest from actual cost - Capital employed in a business is Rs. 1,50,000, profits are Rs. 50,000 and the normal rate of profits is 20%. The amount of goodwill as per capitalization method would be
(a) Rs. 1,00,000
(b) Rs. 1,50,000
(c) Rs. 2,00,000
(d) Rs. 3,00,000
H-TET 2016
- Prepaid expense is
(a) Expense
(b) Income
(c) Asset
(d) Liability - Prepaid Insurance Premium is shown as
(a) An asset
(b) An expense
(c) A liability
(d) No adjustment is required - ………….. are the obligations or debts that an enterprise has to pay at some time in the future.
(a) Debenture
(b) Capital
(c) Liabilities
(d) Share - Consider the following items:
(i) Debenture
(ii) Prepaid rent
(iii) Interest accrued
(iv) Bank overdraft
Which of the are current liabilities?
(a) (i), (ii), (iii) and (iv)
(b) (iv)
(c) (ii), (iii) and (iv)
(d) (i), (ii) and (iii) - If opening capital is Rs. 60,000, drawings Rs. 5,000, capital introduced during the period Rs. 10,000, closing capital Rs. 90,000. The value of profit earned during the period will be
(a) Rs. 20,000
(b) Rs. 25,000
(c) Rs. 30,000
(d) Rs. 40,000 - Commission received is
(a) Real account
(b) Nominal account
(c) Personal account
(d) Liability - On receiving the returned goods from the buyer, the seller sends
(a) Debit note
(b) Promissory note
(c) Bills of exchange
(d) Credit note - ……………… is a process of entering in the ledger the information given in the journal.
(a) Journalizing
(b) Double entry
(c) Posting
(d) Narration - When a firm maintains a cash book, it need not maintain
(a) Journal proper
(b) Purchase (journal) book
(c) Sales (journal) book
(d) Bank and cash account in the ledger - Which of the following errors will be rectified through suspense account?
(a) Sales return book under cast by Rs. 1,000
(b) Sales return Rs. 1,000 not recorded
(c) Sales return Rs. 1,000 recorded as Rs. 100
(d) Sales return Rs. 1,000 recorded through purchase return book - Which one is not the objective of Book Keeping?
(a) To know the number of workers
(b) To ascertain profit and loss
(c) To ascertain financial position
(d) To ascertain cash position - Debtors are Rs. 80,000; bad debts Rs. 2,000 & provision for bad debts is Rs. 4,000. It is decided to maintain a provision for bad debts of Rs. 1,000. State the amount to be debited/credited in profit and loss account
(a) Rs. 5,000 (debit)
(b) Rs. 3,000 (debit)
(c) Rs. 1,000 (credit)
(d) Rs. 5,000 (credit) - On admission of a new partner increase in the values of assets is debited to
(a) Profit and Loss adjustment account
(b) Assets account
(c) Old partner’s capital account
(d) New partner’s capital account - Cost price of a machine Rs. 1,00,000 accumulated depreciation Rs. 45,000 sale price Rs. 40,000. How much is the loss or profit?
(a) Gain of Rs. 15,000
(b) Loss of Rs. 15,000
(c) Gain of Rs. 60,000
(d) Loss of Rs. 60,000 - X and Y shares profits in the ratio of 3 : 2. Z was admitted as partner who gets 1/5 share. New profit sharing ratio, if Z acquires 3/20 from X and 1/20 from Y would be
(a) 9 : 7 : 4
(b) 8 : 8 : 4
(c) 6: 10 : 4
(d) 10 : 6: 4 - When preparing a bank reconciliation statement, if you start with an overdraft as per passbook, then “cheques deposited but not yet cleared” are
(a) Added
(b) Deducted
(c) Not required to be adjusted
(d) Carry forward - Which of the following is correct?
(a) Operating profit = net profit – non operating expense – non operating incomes
(b) Operating profit = net profit + non operating expenses + non operating incomes
(c) Operating profit = net profit + non operating expenses – non operating incomes
(d) Operating profit = net profit – non operating expenses + non operating incomes - At the time of retirement of a partner, if goodwill appears in the balance sheet, it should be written off. For this capital account of all partners are
(a) Debited by the new profit sharing ratio
(b) Debited by the equal ratio
(c) Credited by the new profit sharing ratio
(d) Debited by the old profit sharing ratio
H-TET 2019
- Which of the following errors will cause the trial balance to be out of the order?
(a) Rs.550 the total of sales return book has been posted to the credit of the purchase returns accounts.
(b) The credit side total of Santosh’s Account overcast by Rs.100
(c) Sales book is undercast by Rs.50
(d) All of the above - A and B are sharing profits in the ratio 3:2. They admit C as a new partner with 1/5th share in the profits which he gets equally from A and B. Calculate the new profit-sharing ratio:
(a) 3:1:5
(b) 5:3:2
(c) 2:1:5
(d) 5:3:1
UP PGT Commerce- 2015
- Bank overdraft should be classified as–
(a) Current asset
(b) Current liability
(c) Fixed assets
(d) Fixed liability - The term fixed assets include–
(a) Bank balance
(b) Stock of finished goods
(c) Goodwill
(d) Loose tools - Which of the following are current liabilities?
(a) Outstanding wages
(b) Redeemable preference shares
(c) Provision for depreciation on machinery
(d) Share premium - Bill discounted with a bank is–
(a) Contingent liability
(b) Current liability
(c) Current assets
(d) None of the above - Which of the following is an equation?
(a) Assets = Capital
(b) Assets = Liabilities – Capital
(c) Assets = Liabilities + Capital
(d) None of the above - Given January 1 December 31
Assets 30,000
Liabilities 13,000
Capital 16,500
Withdrawals by owner during the year are Rs. 4000. What is the amount of capital on January 1 ?
(a) Rs. 12,500
(b) Rs. 16,500
(c) Rs. 17,000
(d) Rs. 43,000 - When capital in the beginning is Rs. 10,500, drawings during the year Rs. 6,500 and fresh capital introduced Rs. 3,500. What is the amount of capital at the end assuming no profit or loss.
(a) Rs. 7,500
(b) Rs. 13,500
(c) Rs. 20,500
(d) Rs. 5,000 - When capital at Jan. 01 Rs. 19,400, capital at December 31 Rs. 21,500, drawings Rs. 4,300. What is the amount of profit or loss?
(a) Rs. 2,200 (profit)
(b) Rs. 2,200 (loss)
(c) Rs. 6,400 (profit)
(d) Rs. 6,400 (loss) - Assets of a business are Rs. 21,315 and liabilities Rs. 4,120. What is the amount of owner’s equity?
(a) Rs. 21,315
(b) Rs. 17,195
(c) Rs. 25,435
(d) Rs. 4,120 - Investment by owner results in–
(a) Increase in capital and decrease in liability
(b) Increase in capital and increase in liability
(c) Increase in capital and decrease in assets
(d) Increase in capital and increase in asset - The net assets of a business on Jan. 1 and Jan. 31 are Rs. 39,000 and Rs. 38,000 respectively. Additional investment by owner and withdrawal by owner during Jan. amount to Rs. 2000 and Rs. 6000 respectively. What is the net income for Jan. ?
(a) Rs. 1000 (Loss)
(b) Rs. 3000
(c) Rs. 5000
(d) Rs. 4000 - Goodwill account is a–
(a) Personal account
(b) Real account
(c) Nominal account
(d) None of the above - An entry to Rs. 500 was wrongly posted to wages account instead of machinery account, as wages are to be capitalized it is an error of–
(a) Clerical error
(b) Error of omission
(c) Error of principle
(d) Error of commission - According to convention of conservation the stock in trade is valued at–
(a) Market price
(b) Cost price
(c) Market price or cost price whichever is less
(d) Market price or cost price whichever is more - Expenditure incurred by a publisher for acquiring copyrights is a–
(a) Capital expenditure
(b) Revenue expenditure
(c) Deferred revenue expenditure
(d) None of the above - Which of the following assets in usually not depreciated–
(a) Land
(b) Building
(c) Plant
(d) Furniture - Asset cost Rs. 21,000
Scrap value Rs. 1,000
Depreciation rate 10% p. a.
What is the amount of depreciation for the first year if straight line method is used ?
(a) Rs. 2,100
(b) Rs. 2,000
(c) Rs. 2,200
(d) Rs. 2,400 - During a period of rising prices, which inventory pricing method will result in lower total current assets–
(a) LIFO
(b) FIFO
(c) Simple average method
(d) None of the above - What is the amount of gross profit or loss when–
Cost of Goods sold = 7900
Sales = 11000
Purchases = 3000
(a) Rs. 8000
(b) Rs. 4900
(c) Rs. 3100
(d) Rs. 100 (loss) - Opening stock Rs. 15000
Purchases Rs. 40000
Cost of golds sold Rs. 52000
Sales Rs. 57000
What is the amount of gross profit or loss–
(a) Rs. 12000
(b) Rs. 5000
(c) Rs. 5000 (Loss)
(d) Rs. 7000 - The works manager gets commission of 10% on the profits after charging such commission. If the profit is Rs. 2,200 what is the amount of commission–
(a) Rs. 220
(b) Rs. 200
(c) Rs. 240
(d) Rs. 244.44 - If profits are 25% of selling price, what is the percentage of profit to cost?
(a) 20%
(b) 25%
(c) 30%
(d) 33 1/3 % - Closing stock Rs. 53,400 cost of Goods sold Rs. 75,000, Gross profit Rs. 5,000, Purchases Rs. 82,000 What is the amount of opening stock–
(a) Rs. 46,400
(b) Rs. 41,400
(c) Rs. 60,400
(d) Rs. 55,400 - If the cost of goods sold in Rs. 1,20,000 and the rate of gross is 1/4 on sales, the amount of sales is–
(a) Rs. 1,20,000
(b) Rs. 90,000
(c) Rs. 80,000
(d) Rs. 96,000 - If the cost of goods sold is Rs. 1,20;000 and the rate of gross loss is Rs. ¼ of sales the amount of sales is–
(a) Rs. 90,000
(b) Rs. 96,000
(c) Rs. 1,20,000
(d) Rs. 1,26,000 - Which of the following equation is correct?
(a) Opening stock + closing stock – purchases = cost of goods sold
(b) Opening stock + purchase – closing stock = cost of goods sold
(c) Purchases + closing stock – opening stock = cost of goods sold
(d) Closing stock – purchase – opening stock = cost of goods sold - Charging of capital expenditure to revenue results in–
(a) Secret reserve
(b) Revenue reserve
(c) Capital reserve
(d) None of the above - A partner in a firm–
(a) Can not transfer his share to an outsider
(b) Can transfer his share to an outsider with the consent of majority partners
(c) Can transfer his share to an outsider without the consent of any other partner
(d) Can transfer his share to an outsider with the consent of all other partners
UP PGT Commerce – 2016
- Capital account comes under which concept?
(a) Separate business entity
(b) Accounting period
(c) Accrual
(d) Realisation - According to which of the following methods of pricing, issues are close to current economic values?
(a) LIFO method
(b) FIFO method
(c) HIFO method
(d) Weighted average price method - If profit is 50% of sales, then it will be ____ percent of cost.
(a) 100%
(b) 75%
(c) 60%
(d) 40% - Balance Sheet shows financial position on a specific:
(a) Date
(b) Month
(c) Six month
(d) Year - What is the type of ‘Interest on Drawings’ for a business?
(a) Preliminary expenses
(b) Capital profit
(c) Profit
(d) Loss - X, Y and Z are partners in the ratio of 1/2 : 2/5 : 1/10. What will be the new ratio of the remaining partners if X retires:
(a) 2:1
(b) 4:1
(c) 5:1
(d) 3:1 - Dissolution of firm takes place:
(a) By the death or insolvency of any partner
(b) The retirement of any partner
(c) By the expiry of the term
(d) By the insolvency of all except one partner
UP PGT Commerce – 2019
- Earned but not yet received income is treated as
(a) Asset
(b) Liability
(c) Loss
(d) Capital - Advanced money received from a customer for supply of goods in future is a/an
(a) Income
(b) Expense
(c) Current liability
(d) Current asset - The system of recording transactions based on dual aspect concept is called:
(a) Double account system
(b) Double entry system
(c) Single entry system
(d) None of these - Which of the following account will be debited if purchase of goods are made on credit?
(a) Cash
(b) Debtor
(c) Creditor
(d) Purchases - Which one is the principle of ‘double entry system’?
(a) Purchase increases debit, Income decreases credit
(b) Expense increases debit, Income decreases credit
(c) Receiver is debit, Giver is credit
(d) Receiver is credit, Giver is debit - Stock appearing in Trial Balance is shown in:
(a) Trading Account
(b) Profit & Loss Account
(c) Balance Sheet
(d) Trading Account and Balance Sheet - The practice of appending notes regarding contingent liabilities in accounting statement is in pursuit of:
(a) Convention of consistency
(b) Money measurement concept
(c) Convention of conservatism
(d) Convention of disclosure - According to the money measurement concept which among the following will be recorded in the books of account of the business:
(a) Health of managing director of the company
(b) Quality of company’s goods
(c) Value of plant & machinery
(d) None of these - The convention of conservatism is applicable in:
(a) Providing for discount on creditors
(b) Making provision for bad and doubtful debts
(c) Creating reserve for financial stability
(d) None of these - The ‘going concern concept’ is the underlying basis for
(a) Depreciating fixed assets over their useful life
(b) Consolidating the accounts with their parent companies
(c) Disclosing the market value of securities
(d) Disclosing the sales and other operating information in the income statement - Accounting principles are based on
(a) Practicability
(b) Subjectivity
(c) Convenience in recording
(d) None of the above - Net profit before following adjustments is Rs.3,60,000.
Outstanding salary is Rs.20,000
Prepaid insurance is Rs.26,000
After adjustment, net profit is
(a) Rs.3,66,000
(b) Rs.3,80,000
(c) Rs.3,46,000
(d) Rs.3,86,000 - If goods worth Rs.10000 are sold on the basis of sale on approval, the adjustment of this transaction on the date of accounting is done in:
(a) Sales
(b) Stock
(c) Debtors
(d) All of the above - An adjustment entry for prepaid expenses affects
(a) Assets and Expenses
(b) Assets and Income
(c) Liabilities and Expenses
(d) Liabilities and Assets - Amount set aside to meet losses due to bad debts is a:
(a) Reserve
(b) Provision
(c) Liability
(d) None of these - On the admission of a new partner if the partners decide to record change in the value of assets and liabilities in books but not in the accounts, the firm prepares:
(a) Memorandum Revaluation Account
(b) Revaluation Account
(c) Profit & Loss Adjustment Account
(d) Profit & Loss Appropriation Account - On the admission of a new partner any increase in the value of Buildings is credited to
(a) Buildings Account
(b) Profit & Loss Account
(c) Revaluation Account
(d) All partners’ capital account - The profit sharing ratio of ABC is 1/2 : 2/5 : 1/10. After retirement of A, the remaining partners’ ratio will be:
(a) 4:1
(b) 5:1
(c) 3:1
(d) 2:1 - On the dissolution of firm, its assets are transferred to realization account at
(a) Book value
(b) Market value
(c) Book value or market value (whichever is less)
(d) Realisable value - On dissolution of a firm, an unrecorded liability is:
(a) Debited to Realisation Account
(b) Credited to Realisation Account
(c) Credited to Liability Account
(d) Debited to Revaluation Account - As per the rule of Garner Vs Murray, the deficiency of the insolvent partner is shared by the solvent partners in their:
(a) Profit sharing ratio
(b) Capital ratio
(c) Current Account ratio
(d) Equal ratio
PGT Commerce Jharkhand – 2017
- Under the head Business or profession, the method of accounting which an assessee can follow shall be:
(a) Hybrid system
(b) Mercantile system only
(c) Cash system only
(d) Cash or mercantile system - The following particulars are available in respect of the business carried on by Simran:
Capital employed Rs. 1,00,000
b. Trading profit (after tax) :
2013-14 Rs. 24,400
2014-15 Rs. 30,000
2015-16 Rs. 4,000 (loss)
c. Market rate of interest on investment – 8%
d. Rate of risk return on capital invested in business -2%
e. Remuneration from alternative employment of the proprietor (if not engaged in business) Rs. 7,200 per annum.
Calculate the value of goodwill based on 3 years purchase of super profits of the business calculated on the average profit of the last 4 years.
(a) Rs. 11,800
(b) Rs. 17,700
(c) Rs. 23,600
(d) Rs. 5,900
Answer Key
KVS – 2018
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (d) | (b) | (a) | (b) | (b) | (a) | (d) | (d) | (c) | (b) |
KVS – 2017
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (c) | (b) | (c) | (d) | (b) | (a) | (a) | (c) | (c) | (d) |
| 11 | 12 | 13 | 14 | 15 | 16 | ||||
| (a) | (c) | (b) | (c) | (c) | (a) |
KVS – 2016
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (a) | (b) | (b) | (a) | (c) | (b) | (c) | (b) | (b) | (b) |
| 11 | |||||||||
| (d) |
NVS – 2019
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (c) | (a) | (d) | (a) | (b) | (a) | (a) | (b) | (d) | (a) |
| 11 | 12 | 13 | |||||||
| (b) | (d) | (d) |
NVS – 2016
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (c) | (a) | (a) | (c) | (d) | (b) | (d) | (b) | (b) | (c) |
| 11 | 12 | 13 | 14 | 15 | 16 | ||||
| (a) | (a) | (d) | (d) | (c) | (b) |
NVS – 2014
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (a) | (b) | (c) | (b) | (b) | (c) | (d) | (b) | (c) | (d) |
| 11 | 12 | ||||||||
| (c) | (a) |
DSSSB – 2018 Male
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (c) | (a) | (c) | (c) | (b) | (b) | (d) | (d) | (c) | (d) |
| 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| (d) | (a) | (c) | (a) | (a) | (a) | (c) | (c) | (c) | (d) |
| 21 | 22 | 23 | |||||||
| (b) | (a) | (b) |
DSSSB – 2015 Tire II
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (a) | (b) | (b) | (a) | (b) | (b) | (a) | (c) | (a) | (d) |
| 11 | 12 | 13 | 14 | 15 | 16 | ||||
| (d) | (d) | (b) | (d) | (d) | (a) |
DSSSB – 2014 Tire I
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (c) | (a) | (d) | (b) | (a) | (a) | (d) | (b) | (c) | (c) |
| 11 | 12 | 13 | |||||||
| (c) | (b) | (b) |
Army School -2012
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (c) | (d) | (d) | (b) | (d) | (c) | (a) | (c) | (a) | (d) |
| 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| (b) | (b) | (d) | (a) | (c) | (b) | (a) | (c) | (d) | (d) |
| 21 | 22 | 23 | 24 | ||||||
| (a) | () | (a) | (a) |
HTET – 2016
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (c) | (a) | (c) | (b) | (b) | (b) | (d) | (c) | (d) | (a) |
| 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | ||
| (a) | (c) | (a) | (b) | (a) | (b) | (c) | (d) |
HTET – 2019
| 1 | 2 | ||||||||
| (c) | (a) |
UP PGT – 2015
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| (b) | (c) | (a) | (a) | (c) | (c) | (a) | (c) | (b) | (d) |
| 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| (b) | (b) | (c) | (c) | (a) | (a) | (b) | (a) | (c) | (b) |
| 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | ||
| (b) | (d) | (a) | (d) | (b) | (b) | (a) | (d) |
PGT Commerce Jharkhand – 2017
| 1 | 2 | ||||||||
| (d) | (b) |