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All questions of Financial Accounting Part - 1 for Commerce Exam
Which of the following accounts can be classified as a real account?- a)Rent expenses account
- b)Rent income account
- c)insurance expenses account
- d)Asset accounts
Correct answer is option 'D'. Can you explain this answer?
Which of the following accounts can be classified as a real account?
a)
Rent expenses account
b)
Rent income account
c)
insurance expenses account
d)
Asset accounts
|
Kiran Mehta answered |
A real account is an account that retains and rolls forward its ending balance from period to period. The areas in the balance sheet in which real accounts are found are assets, liabilities, and equity.
The real accounts are the balance sheet accounts which include the following: Asset accounts (cash, accounts receivable, buildings, etc.) Liability accounts (notes payable, accounts payable, wages payable, etc.) Stockholders' equity accounts (common stock, retained earnings, etc.)
What accounting method is followed for the recording of transactions?- a)Double Entry System
- b)Single entry system
- c)Cash Basis System
- d)None of them
Correct answer is option 'A'. Can you explain this answer?
What accounting method is followed for the recording of transactions?
a)
Double Entry System
b)
Single entry system
c)
Cash Basis System
d)
None of them
|
Anshu Joshi answered |
The double-entry system of accounting or bookkeeping means that for every business transaction, amounts must be recorded in a minimum of two accounts. The double-entry system also requires that for all transactions, the amounts entered as debits must be equal to the amounts entered as credits.
Unexpired expenses is ______account. - a)Real
- b)Nominal
- c)Personal
- d)Representative Personal
Correct answer is 'D'. Can you explain this answer?
Unexpired expenses is ______account.
a)
Real
b)
Nominal
c)
Personal
d)
Representative Personal
|
Priya Patel answered |
Unexpired expense is a representative personal account. These accounts are not in the name of any person or organisation but are represented as personal accounts.
Can you explain the answer of this question below: Bank overdraft account is a :
- A:
Personal account
- B:
Real account
- C:
Nominal account
- D:
Representative personal account
The answer is a.
Bank overdraft account is a :
Personal account
Real account
Nominal account
Representative personal account
|
Anu Sen answered |
Bank Overdraft is an artificial Personal account, so will be classified as Personal Account.
If wages are paid for construction of business premises, ________ A/c is credited and ____ A/c is debited.
- a)Wages, Cash
- b)Premises, Cash
- c)Cash, Wages
- d)Cash, Premises
Correct answer is option 'D'. Can you explain this answer?
If wages are paid for construction of business premises, ________ A/c is credited and ____ A/c is debited.
a)
Wages, Cash
b)
Premises, Cash
c)
Cash, Wages
d)
Cash, Premises
|
Freedom Institute answered |
If wages are paid for construction of business premises the amount of wages will be debited to the premises account because, according to IFRS, any expense that brings the asset to use or brings the asset in existence should be added to the cost of that machinery.
Cash account is credited because cash is being paid for incurring the wages.
The LCM of two co-prime numbers is
- a)their sum
- b)their difference
- c)their product
- d)none of these
Correct answer is option 'C'. Can you explain this answer?
The LCM of two co-prime numbers is
a)
their sum
b)
their difference
c)
their product
d)
none of these
|
EduRev Class 6 answered |
The LCM of two coprime numbers is the product of the numbers.
Which is the evidence of business transaction- a)Balance sheet
- b)Voucher
- c)Journal
- d)Ledger
Correct answer is option 'B'. Can you explain this answer?
Which is the evidence of business transaction
a)
Balance sheet
b)
Voucher
c)
Journal
d)
Ledger
|
Ishan Choudhury answered |
You can watch fun with accounting videos this is just an example for ledger
https://www.youtube.com/watch?v=RQo1UMtRzR4
Items owned by a business that have monetary value are ____- a)Debentures
- b)Assets
- c)Liabilities
- d)Capital
Correct answer is 'B'. Can you explain this answer?
Items owned by a business that have monetary value are ____
a)
Debentures
b)
Assets
c)
Liabilities
d)
Capital
|
Om Desai answered |
Items owned by a business that have monetary value are called as an assets...... assets may be classified as current assets ,fixed assets ,ficitious assets..... assets have a depreciation value after its use.
In Journal proper, only_______ discount is recorded.- a)Total
- b)Cash
- c)Credit
- d)Trade
Correct answer is 'B'. Can you explain this answer?
In Journal proper, only_______ discount is recorded.
a)
Total
b)
Cash
c)
Credit
d)
Trade
|
Mahi Ashta. answered |
Yaa... becuzz trade....discount is ... always silent in...any transaction...and main focus is always...on cash discount...hope u understand....
Can you explain the answer of this question below:On January 1, Sohan paid rent Rs. 5,000. This can be classified as
- A:
An event
- B:
A transaction.
- C:
A transaction as well as an event.
- D:
Neither a transaction nor an event.
The answer is b.
On January 1, Sohan paid rent Rs. 5,000. This can be classified as
An event
A transaction.
A transaction as well as an event.
Neither a transaction nor an event.
|
Anand Dasgupta answered |
Explanation:
A transaction is an exchange of goods, services, or money between two or more parties. In this case, Sohan paid rent of Rs. 5,000 which involves an exchange of money between Sohan and his landlord. Hence, it is a transaction.
An event, on the other hand, is a happening or occurrence that may or may not involve an exchange of goods, services, or money. In this case, if Sohan had received the rent payment from his landlord, it would have been an event. However, since he paid the rent, it is not just an event.
Therefore, the correct answer is option 'B' - A transaction.
A transaction is an exchange of goods, services, or money between two or more parties. In this case, Sohan paid rent of Rs. 5,000 which involves an exchange of money between Sohan and his landlord. Hence, it is a transaction.
An event, on the other hand, is a happening or occurrence that may or may not involve an exchange of goods, services, or money. In this case, if Sohan had received the rent payment from his landlord, it would have been an event. However, since he paid the rent, it is not just an event.
Therefore, the correct answer is option 'B' - A transaction.
Net Profit or Loss will be derived at _______ stage of accounting- a)Classifying
- b)Interpretation
- c)Recording
- d)Summarising
Correct answer is 'D'. Can you explain this answer?
Net Profit or Loss will be derived at _______ stage of accounting
a)
Classifying
b)
Interpretation
c)
Recording
d)
Summarising
|
Alok Mehta answered |
The answer is D.Summarising stage is concerned with the preparation and presentation of the classified data in a manner useful to the internal as well as external users of financial statements. This process leads to the preparation of the following financial statements. Therefore, Net Profit or Loss is derived at the summarising stage.
Amount paid in advance for a particulars expenses is known as_____- a)Outstanding expense
- b)Prepaid expense
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
Amount paid in advance for a particulars expenses is known as_____
a)
Outstanding expense
b)
Prepaid expense
c)
Both
d)
None
|
|
Aryan Khanna answered |
Prepaid expenses are when a company gives an employee money in advance to pay for a known cost. Instead of asking that employee to pay out of their own pocket, you give them the money before they need it.
Goods worth Rs. 10,000 were withdrawn by the proprietor for his personal use. The account to be credited is - a)Sales A/c
- b)Drawing A/c
- c)Purchases A/c
- d)Expenses A/c
Correct answer is 'C'. Can you explain this answer?
Goods worth Rs. 10,000 were withdrawn by the proprietor for his personal use. The account to be credited is
a)
Sales A/c
b)
Drawing A/c
c)
Purchases A/c
d)
Expenses A/c
|
|
Freedom Institute answered |
When the proprietor withdraws goods for personal use of Rs 10,000 it should be credited/deducted from the stock while calculating cost of goods sold and hence are deducted from purchases.
Which of the following does not represents a business transactions?- a)Goods are sold on credit
- b)Efficiency of Management
- c)Assets sold and money introduced in business
- d)Capital introduced in the business
Correct answer is option 'B'. Can you explain this answer?
Which of the following does not represents a business transactions?
a)
Goods are sold on credit
b)
Efficiency of Management
c)
Assets sold and money introduced in business
d)
Capital introduced in the business
|
Tanya Mishra answered |
B as efficiency of mgmt. can't expressed in monetary terms
Q The Basic accounting equation is- a)Assets= Cash + Capital
- b)Assets = Expenses + Capital
- c)Assets = Equity + Liabilities
- d)Asset = Expense + Income
Correct answer is option 'C'. Can you explain this answer?
Q The Basic accounting equation is
a)
Assets= Cash + Capital
b)
Assets = Expenses + Capital
c)
Assets = Equity + Liabilities
d)
Asset = Expense + Income
|
Naina Sharma answered |
Assets = Capital + Liabilitiess is the basic accounting equation. The fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a person or business. It is the foundation for the double-entry bookkeeping system.
In case of bad debts, which account is credited?- a)Bad debts Account
- b)Creditors Account
- c)Debtors Account
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
In case of bad debts, which account is credited?
a)
Bad debts Account
b)
Creditors Account
c)
Debtors Account
d)
None of these
|
Isha Chopra answered |
The correct answer is option C: Debtors Account.
Explanation:
When a debtor fails to make a payment on time or defaults on their debt, it becomes a bad debt for the company. In accounting, bad debts are considered as losses for the company and need to be accounted for properly.
To account for bad debts, the company uses the allowance method. Under this method, a provision for bad debts is created by estimating the amount of bad debts that are likely to occur in the future. This provision is recorded as an expense in the profit and loss account and a corresponding amount is debited to the bad debts account.
The bad debts account is a nominal account and is classified as an expense. It is used to record the amount of debts that are considered uncollectible and are written off from the debtor's account. By debiting the bad debts account, the company recognizes the loss incurred due to non-payment by the debtor.
On the other hand, when a debtor fails to make a payment, their account remains outstanding in the books of the company. The outstanding amount is recorded as a receivable in the debtor's account. When the bad debt is confirmed, the debtor's account is credited with the amount of the bad debt. This reduces the outstanding balance of the debtor and reflects the loss incurred by the company.
Therefore, in case of bad debts, the debtor's account is credited, as it represents the reduction in the amount receivable from the debtor. This allows the company to accurately reflect the financial impact of the bad debt and adjust its accounts accordingly.
Explanation:
When a debtor fails to make a payment on time or defaults on their debt, it becomes a bad debt for the company. In accounting, bad debts are considered as losses for the company and need to be accounted for properly.
To account for bad debts, the company uses the allowance method. Under this method, a provision for bad debts is created by estimating the amount of bad debts that are likely to occur in the future. This provision is recorded as an expense in the profit and loss account and a corresponding amount is debited to the bad debts account.
The bad debts account is a nominal account and is classified as an expense. It is used to record the amount of debts that are considered uncollectible and are written off from the debtor's account. By debiting the bad debts account, the company recognizes the loss incurred due to non-payment by the debtor.
On the other hand, when a debtor fails to make a payment, their account remains outstanding in the books of the company. The outstanding amount is recorded as a receivable in the debtor's account. When the bad debt is confirmed, the debtor's account is credited with the amount of the bad debt. This reduces the outstanding balance of the debtor and reflects the loss incurred by the company.
Therefore, in case of bad debts, the debtor's account is credited, as it represents the reduction in the amount receivable from the debtor. This allows the company to accurately reflect the financial impact of the bad debt and adjust its accounts accordingly.
Sale is also known as ________
- a)Revenue from operations
- b)Profit
- c)Cost of goods sold
- d)Income
Correct answer is option 'A'. Can you explain this answer?
Sale is also known as ________
a)
Revenue from operations
b)
Profit
c)
Cost of goods sold
d)
Income
|
Saumya Ahuja answered |
Revenue=Cost + profit. So,sale include both Cost as well as Profit. so,that's why sale is also known as Revenue from operations.
Bill payable account.
- a)Personal
- b)Real
- c)Nominal
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
Bill payable account.
a)
Personal
b)
Real
c)
Nominal
d)
None of the above
|
Shereen Shaik answered |
It is a personal account because it is related to proprietor
Capital of business is Rs. 75,000 and liability is Rs. 25,000 then total assets of business would be: - a)Rs. 1,00,000
- b)Rs. 15,000
- c)Rs. 75,000
- d)Rs. 50,000
Correct answer is option 'A'. Can you explain this answer?
Capital of business is Rs. 75,000 and liability is Rs. 25,000 then total assets of business would be:
a)
Rs. 1,00,000
b)
Rs. 15,000
c)
Rs. 75,000
d)
Rs. 50,000
|
|
Arjun Singhania answered |
Description: Assets= Capital+ Liabilities
1,00,00= 75,000+ 25,000
Therefore, the total assets would be Rs.1,00,000
The person who makes the investment and bears all the risks connected with the business is called- a)Proprietor
- b)Debtor
- c)Debenture holder
- d)Creditor
Correct answer is option 'A'. Can you explain this answer?
The person who makes the investment and bears all the risks connected with the business is called
a)
Proprietor
b)
Debtor
c)
Debenture holder
d)
Creditor
|
|
Arun Yadav answered |
Proprietor is the person who invested capital in the business and bear all the risks,and also known as the owner of the business.
Posting of entries in the ledger is done from _____- a)Vouchers
- b)Journal
- c)Balance sheet
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Posting of entries in the ledger is done from _____
a)
Vouchers
b)
Journal
c)
Balance sheet
d)
None of these
|
Maheshwar Chawla answered |
After the transactions are recorded in the journal, it is then posted in the principal book called as 'Ledger'. The process of transferring the entries from journal to respective ledger accounts is called ledger posting. Balancing of ledgers is carried to find out differences at the end of the year.
On 31st December, 2005, Ashok Ltd. purchased a machine from Mohan Ltd. for Rs. 1,75,000. This is : (year end : 31st December)
- a)A transaction
- b)An event
- c)Both transaction as well as event
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
On 31st December, 2005, Ashok Ltd. purchased a machine from Mohan Ltd. for Rs. 1,75,000. This is : (year end : 31st December)
a)
A transaction
b)
An event
c)
Both transaction as well as event
d)
None of these
|
|
Alok Mehta answered |
The purchase of a machine by Ashok Ltd. from Mohan Ltd. for Rs. 1,75,000 on 31st December, 2005, is both a transaction as well as an event.
A transaction is an exchange of goods or services for something of value. In this case, Ashok Ltd. exchanged Rs. 1,75,000 for a machine from Mohan Ltd., which qualifies as a transaction.
An event, on the other hand, is a happening or occurrence that has significance or consequences. The purchase of a machine by Ashok Ltd. from Mohan Ltd. on 31st December, 2005, can be considered an event as it is a significant happening that has financial implications for both companies.
Therefore, the purchase of the machine is both a transaction and an event.
Can you explain the answer of this question below:Expenditure on purchase of machinery is a
- A:
Revenue expenditure
- B:
Deferred revenue expenditure
- C:
Capital expenditure
- D:
None of these
The answer is C.
Expenditure on purchase of machinery is a
Revenue expenditure
Deferred revenue expenditure
Capital expenditure
None of these
|
Madhurima Dasgupta answered |
Capital expenditure. Machinery is a permanent asset of the business and can be used for many years but it will benefit to the business until it is installed and erected at a proper place. So amount spent on purchase of machinery, on its installation and erection is capital expenditure.
In all circumstances Assets will be always equal to _____ + ______- a)Capital, Liabilities
- b)Cash, Liabilities
- c)Capital, Cash
- d)All of these
Correct answer is option 'A'. Can you explain this answer?
In all circumstances Assets will be always equal to _____ + ______
a)
Capital, Liabilities
b)
Cash, Liabilities
c)
Capital, Cash
d)
All of these
|
Jayant Mishra answered |
Yes, a balance sheet should always balance. The name "balance sheet" is based on the fact that assets will equal liabilities and shareholer's equity every time. ... For the balance sheet to balance, total assets should equal the total of liabilities and shareholders' equity.
Sales of office furniture should be credited to
- a)Furniture Account.
- b)Sales Account
- c)Purchase Account.
- d)Cash Account
Correct answer is option 'A'. Can you explain this answer?
Sales of office furniture should be credited to
a)
Furniture Account.
b)
Sales Account
c)
Purchase Account.
d)
Cash Account
|
|
Freedom Institute answered |
The sale of furniture is credited to the furniture account.
Can you explain the answer of this question below:Which of the following statement is correct?
- A:
All Entries except cash transactions can be recorded through journal.
- B:
Ledger is a part of subsidiary book.
- C:
Purchase book records all the purchases whether cash or credit.
- D:
Bank column of cash book always has debit balance.
The answer is a.
Which of the following statement is correct?
All Entries except cash transactions can be recorded through journal.
Ledger is a part of subsidiary book.
Purchase book records all the purchases whether cash or credit.
Bank column of cash book always has debit balance.
|
Tejas Chaudhary answered |
First listen the reason behind all 3 incorrect options.
b).. ledger is not a part of subsidiary books, it is a part of principal or main books since a business man can find the final information relating to different accounts from it.
c) purchase book records only credit records.
d) bank column of cash books could have a credit balance in case of overdraft.
now ultimately the option a is correct as we can record all transactions through journal except cash transactions,
b).. ledger is not a part of subsidiary books, it is a part of principal or main books since a business man can find the final information relating to different accounts from it.
c) purchase book records only credit records.
d) bank column of cash books could have a credit balance in case of overdraft.
now ultimately the option a is correct as we can record all transactions through journal except cash transactions,
The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point: - a)Rs. 2,000 will be deducted
- b)Rs. 2,000 will be added
- c)Rs. 4,000 will be deducted
- d)Rs. 4,000 will be added
Correct answer is option 'C'. Can you explain this answer?
The credit balance of Rs. 2,000 in the bank column of the cash book was carried forwarded as its debit balance. When overdraft as per pass book is starting point:
a)
Rs. 2,000 will be deducted
b)
Rs. 2,000 will be added
c)
Rs. 4,000 will be deducted
d)
Rs. 4,000 will be added
|
|
Sonal Patel answered |
Explanation:
When the credit balance of Rs. 2,000 in the bank column of the cash book was carried forward as its debit balance, it means that the cash book shows an overdraft balance of Rs. 2,000 instead of a credit balance.
Now, we need to compare this balance with the balance as per pass book. If the pass book shows an overdraft balance, then we need to deduct it from the cash book balance. If the pass book shows a credit balance, then we need to add it to the cash book balance.
In this question, the starting point is given as the pass book showing an overdraft balance. Therefore, we need to deduct this balance from the cash book balance.
So, the calculation would be:
Cash book balance (overdraft) = Rs. 2,000 (debit balance)
Pass book balance (overdraft) = Given
Overdraft as per pass book = Pass book balance - Cash book balance
Since the pass book balance is an overdraft balance, it would be higher than the cash book balance (overdraft). Therefore, we need to deduct the cash book balance from the pass book balance.
Overdraft as per pass book = Pass book balance - Cash book balance
Overdraft as per pass book = (Given) - Rs. 2,000
Overdraft as per pass book = Rs. (Given - 2,000)
Hence, option C. Rs. 4,000 will be deducted is the correct answer.
When the credit balance of Rs. 2,000 in the bank column of the cash book was carried forward as its debit balance, it means that the cash book shows an overdraft balance of Rs. 2,000 instead of a credit balance.
Now, we need to compare this balance with the balance as per pass book. If the pass book shows an overdraft balance, then we need to deduct it from the cash book balance. If the pass book shows a credit balance, then we need to add it to the cash book balance.
In this question, the starting point is given as the pass book showing an overdraft balance. Therefore, we need to deduct this balance from the cash book balance.
So, the calculation would be:
Cash book balance (overdraft) = Rs. 2,000 (debit balance)
Pass book balance (overdraft) = Given
Overdraft as per pass book = Pass book balance - Cash book balance
Since the pass book balance is an overdraft balance, it would be higher than the cash book balance (overdraft). Therefore, we need to deduct the cash book balance from the pass book balance.
Overdraft as per pass book = Pass book balance - Cash book balance
Overdraft as per pass book = (Given) - Rs. 2,000
Overdraft as per pass book = Rs. (Given - 2,000)
Hence, option C. Rs. 4,000 will be deducted is the correct answer.
This a MCQ (Multiple Choice Question) based practice test of Chapter 4 - Preparation of Journal Ledger Account etc of Accountancy of Class XI (11) for the quick revision/preparation of School Board examinationsQ Goods purchased on cash are recorded in the :- a)Purchases (journal) book
- b)Sales (journal) book
- c)Cash book
- d)Purchases return (journal)book
Correct answer is option 'C'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 4 - Preparation of Journal Ledger Account etc of Accountancy of Class XI (11) for the quick revision/preparation of School Board examinations
Q Goods purchased on cash are recorded in the :
a)
Purchases (journal) book
b)
Sales (journal) book
c)
Cash book
d)
Purchases return (journal)book
|
|
Priyanka Ravichandran answered |
Because cash book is where only the cash transactions are recorded........ so it is an example of cash purchase
Which of the following is a limitation of accounting?- a)Facilitates loan
- b)Replacing Memory
- c)Window Dressing
- d)Evidence in court
Correct answer is option 'C'. Can you explain this answer?
Which of the following is a limitation of accounting?
a)
Facilitates loan
b)
Replacing Memory
c)
Window Dressing
d)
Evidence in court
|
Gowri Nambiar answered |
Window dressing refers to actions taken or not taken prior to issuing financial statements in order to improve the appearance of the financial statements.
Goods/Assets or Cash used for personal use by a businessman is called______- a)Investment
- b)Capital
- c)Drawings
- d)Profit
Correct answer is option 'C'. Can you explain this answer?
Goods/Assets or Cash used for personal use by a businessman is called______
a)
Investment
b)
Capital
c)
Drawings
d)
Profit
|
Maitri Sharma answered |
Drawings in Business
Drawings are the goods/assets or cash used for personal use by a businessman. It is the amount of cash or goods withdrawn from the business by the owner or partner for personal use. These withdrawals reduce the capital of the business and are not treated as an expense.
Example: If the owner of a business withdraws $5000 cash from the business for personal use, it is known as drawings.
Drawings are not considered as an expense because they are not incurred to generate revenue. It is a personal withdrawal of capital from the business for personal use.
Importance of Drawings in Business
Drawings are important for the following reasons:
1. Helps in determining the net profit of the business.
2. Helps in determining the capital of the business.
3. Helps in determining the financial position of the business.
4. Helps in determining the tax liability of the business.
Conclusion
Drawings are the goods/assets or cash used for personal use by a businessman. It is a personal withdrawal of capital from the business for personal use. Drawings are not considered as an expense because they are not incurred to generate revenue. It helps in determining the net profit, capital, financial position, and tax liability of the business.
Drawings are the goods/assets or cash used for personal use by a businessman. It is the amount of cash or goods withdrawn from the business by the owner or partner for personal use. These withdrawals reduce the capital of the business and are not treated as an expense.
Example: If the owner of a business withdraws $5000 cash from the business for personal use, it is known as drawings.
Drawings are not considered as an expense because they are not incurred to generate revenue. It is a personal withdrawal of capital from the business for personal use.
Importance of Drawings in Business
Drawings are important for the following reasons:
1. Helps in determining the net profit of the business.
2. Helps in determining the capital of the business.
3. Helps in determining the financial position of the business.
4. Helps in determining the tax liability of the business.
Conclusion
Drawings are the goods/assets or cash used for personal use by a businessman. It is a personal withdrawal of capital from the business for personal use. Drawings are not considered as an expense because they are not incurred to generate revenue. It helps in determining the net profit, capital, financial position, and tax liability of the business.
To find the net income we deduct _________ from total revenue.- a)Capital expenditure
- b)Expenses
- c)Depreciation
- d)Gains
Correct answer is option 'B'. Can you explain this answer?
To find the net income we deduct _________ from total revenue.
a)
Capital expenditure
b)
Expenses
c)
Depreciation
d)
Gains
|
|
Arjun Singhania answered |
To calculate net income for a business, start with a company's total revenue. From this figure, subtract the businesses expenses and operating costs to calculate the business's earnings before tax. Deduct tax from this amount to find the business's net income.
Amit Ltd. purchased a machine on 01.01.2003 for Rs 1,20,000. Installation expenses were Rs 10,000. Residual value after 5 years Rs 5,000. On 01.07.2003, expenses for repairs were incurred to the extent of Rs 2,000. Depreciation is provided @ 10% p.a. under written down value method. Depreciation for the 4th year = ________.- a)25,000
- b)10530
- c)9,477
- d)13,000
Correct answer is option 'D'. Can you explain this answer?
Amit Ltd. purchased a machine on 01.01.2003 for Rs 1,20,000. Installation expenses were Rs 10,000. Residual value after 5 years Rs 5,000. On 01.07.2003, expenses for repairs were incurred to the extent of Rs 2,000. Depreciation is provided @ 10% p.a. under written down value method. Depreciation for the 4th year = ________.
a)
25,000
b)
10530
c)
9,477
d)
13,000
|
KP Classes answered |
To calculate the depreciation for the 4th year using the Written Down Value (WDV) method, we follow these structured steps:
- Determine the initial cost of the machinery. The purchase price is Rs. 1,20,000, and the installation expenses are Rs. 10,000. Therefore, the total value of the machinery is calculated as follows:
Total Value = Purchase Price + Installation Expenses = 1,20,000 + 10,000 = 1,30,000 - Calculate the depreciation for the first year. The rate of depreciation is 10% on the WDV. Thus, the first-year depreciation is:
- Calculate the WDV at the beginning of the second year:
WDV after 1st Year = Total Value − 1st Year Depreciation = 1,30,000 − 13,000 = 1,17,000 - Calculate the depreciation for the second year:
- Calculate the WDV at the beginning of the third year:
WDV after 2nd Year = WDV after 1st Year − 2nd Year Depreciation = 1,17,000 − 11,700 = 1,05,300 - Calculate the depreciation for the third year:
- Calculate the WDV at the beginning of the fourth year:
WDV after 3rd Year = WDV after 2nd Year − 3rd Year Depreciation = 1,05,300 − 10,530 = 94,770 - Finally, calculate the depreciation for the fourth year:
What is depreciation?- a)Cost of using a fixed asset
- b)The value of asset
- c)Portion of a fixed assets cost consumed during the current accounting
- d)Cost of fixed asset’s repair
Correct answer is option 'A'. Can you explain this answer?
What is depreciation?
a)
Cost of using a fixed asset
b)
The value of asset
c)
Portion of a fixed assets cost consumed during the current accounting
d)
Cost of fixed asset’s repair
|
|
Kavita Joshi answered |
Depreciation: Depreciation is the systematic reduction of the recorded cost of a fixed asset. Examples of fixed assets that can be depreciated are buildings, furniture, leasehold improvements, and office equipment.
Sales is also known as _________- a)Revenue from operations
- b)Profit
- c)Income
- d)Cost of goods sold
Correct answer is option 'A'. Can you explain this answer?
Sales is also known as _________
a)
Revenue from operations
b)
Profit
c)
Income
d)
Cost of goods sold
|
Nipuns Institute answered |
Sales, in the context of a business's financial statements, is often referred to as "Revenue from operations." This term highlights that the income generated is specifically from the core business activities of selling goods or services, as opposed to other sources of income like investments or incidental gains. This classification helps in clearly understanding the main revenue-generating activities of a business.
Payment of Bank loan will effect_____- a)Assets: Increase, Liabilities: Decrease
- b)Assets: Decrease, Liabilities: Increase
- c)Assets: Decrease, Liabilities: Decrease
- d)Assets: Increase, Liabilities: Increase
Correct answer is option 'C'. Can you explain this answer?
Payment of Bank loan will effect_____
a)
Assets: Increase, Liabilities: Decrease
b)
Assets: Decrease, Liabilities: Increase
c)
Assets: Decrease, Liabilities: Decrease
d)
Assets: Increase, Liabilities: Increase
|
|
Nandni Kumari answered |
C is the correct option because in payment of bank loan the asset will decrease means you have to pay the cash to the bank which is A variable asset and you are giving the cash and also it decreases liability because by paying your bank loan you are making yourself free from loss of your any assets which you have kept on mortgage
Goods given as charity credited to :- a)Charity A/c
- b)Purchase A/c
- c)Drawings A/c
- d)Sales A/c
Correct answer is option 'B'. Can you explain this answer?
Goods given as charity credited to :
a)
Charity A/c
b)
Purchase A/c
c)
Drawings A/c
d)
Sales A/c
|
Neha Choudhury answered |
Explanation:
When goods are given as charity, it means that the business entity is giving away its products without expecting any payment in return. In such cases, the goods should be credited to the Purchase Account.
Reasons why goods given as charity should be credited to Purchase Account:
1. Charity is not a part of the normal business operations.
2. The cost of goods given as charity is a direct expense and should be charged to the Profit and Loss Account.
3. The Purchase Account represents the cost of goods purchased or acquired by the business, and it is used to calculate the cost of goods sold.
4. By crediting the Purchase Account, the cost of goods given as charity is deducted from the total cost of goods purchased, which results in a lower cost of goods sold and a higher gross profit.
Conclusion:
When goods are given as charity, they should be credited to the Purchase Account. This will ensure that the cost of goods given as charity is properly accounted for and deducted from the total cost of goods purchased.
When goods are given as charity, it means that the business entity is giving away its products without expecting any payment in return. In such cases, the goods should be credited to the Purchase Account.
Reasons why goods given as charity should be credited to Purchase Account:
1. Charity is not a part of the normal business operations.
2. The cost of goods given as charity is a direct expense and should be charged to the Profit and Loss Account.
3. The Purchase Account represents the cost of goods purchased or acquired by the business, and it is used to calculate the cost of goods sold.
4. By crediting the Purchase Account, the cost of goods given as charity is deducted from the total cost of goods purchased, which results in a lower cost of goods sold and a higher gross profit.
Conclusion:
When goods are given as charity, they should be credited to the Purchase Account. This will ensure that the cost of goods given as charity is properly accounted for and deducted from the total cost of goods purchased.
Can you explain the answer of this question below:Which is the last step of accounting as a process of information
- A:
Preparation of financial transaction
- B:
Analysis of information
- C:
Communication of information
- D:
Recording the transaction
The answer is C.
Which is the last step of accounting as a process of information
Preparation of financial transaction
Analysis of information
Communication of information
Recording the transaction
|
Praveen Kumar answered |
Communication of information is the last step of accounting as process of accounting information. Communicating the information is very necessary for the outsiders so they can look over the affairs and working efficiency of the business.
What will be journal entry when cash is withdrawn from bank for personal use ?- a)Drawings A/C debit, Bank A/C credit
- b)Cash A/C debit, Bank A/C credit
- c)Bank A/C debit. Drawings A/C credit
- d)Bank A/C debit, Capital A/C credit
Correct answer is option 'A'. Can you explain this answer?
What will be journal entry when cash is withdrawn from bank for personal use ?
a)
Drawings A/C debit, Bank A/C credit
b)
Cash A/C debit, Bank A/C credit
c)
Bank A/C debit. Drawings A/C credit
d)
Bank A/C debit, Capital A/C credit
|
|
Priya Patel answered |
Journal entry for cash withdrawn for personal use is
Drawings a/c dr
To Bank a/c
The above entire depends upon two principals of accounting i.e
Personal account:- Debit the receiver, credit the giver
Real account :- Debit what comes in, credit what goes out.
From the following details find out credit sales during the financial year 2010-2011:
1. Opening balance of sundry debtors on 1.4.10 Rs. 12,000.
2. Bills receivable accepted by customer Rs. 13,000
3. Closing balance of Sundry Debtors on 31.3.11 Rs. 14,000.
4. Cash received from debtors during the year Rs. 38,400
- a)Rs. 39,400
- b)Rs. 27,000
- c)Rs. 65,400
- d)Rs. 53,400
Correct answer is option 'D'. Can you explain this answer?
From the following details find out credit sales during the financial year 2010-2011:
1. Opening balance of sundry debtors on 1.4.10 Rs. 12,000.
2. Bills receivable accepted by customer Rs. 13,000
3. Closing balance of Sundry Debtors on 31.3.11 Rs. 14,000.
4. Cash received from debtors during the year Rs. 38,400
1. Opening balance of sundry debtors on 1.4.10 Rs. 12,000.
2. Bills receivable accepted by customer Rs. 13,000
3. Closing balance of Sundry Debtors on 31.3.11 Rs. 14,000.
4. Cash received from debtors during the year Rs. 38,400
a)
Rs. 39,400
b)
Rs. 27,000
c)
Rs. 65,400
d)
Rs. 53,400
|
Srsps answered |
Credit Sales=Closing Debtors+Cash Received from Debtors+Bills Receivable−Opening Debtors
Given:
- Opening balance of Sundry Debtors on 1.4.10 = Rs. 12,000
- Bills Receivable accepted by customers = Rs. 13,000
- Closing balance of Sundry Debtors on 31.3.11 = Rs. 14,000
- Cash received from Debtors during the year = Rs. 38,400
Now, let's calculate:
Credit Sales=14,000+38,400+13,000−12,000
Credit Sales=53,400
So, the correct answer is:
Option 4: Rs. 53,400
The Cash book showed an overdraft of Rs.1,500 but the pass book made up to same date should that cheques of Rs. 100, Rs. 50 and Rs. 125 had not been presented for payment and a cheque of Rs. 400 had not been cleared. The balance as per the Cash Book will be:
- a)Rs. 1,100
- b)Rs. 1,625
- c)Rs. 2,175
- d)Rs. 1,375
Correct answer is option 'B'. Can you explain this answer?
The Cash book showed an overdraft of Rs.1,500 but the pass book made up to same date should that cheques of Rs. 100, Rs. 50 and Rs. 125 had not been presented for payment and a cheque of Rs. 400 had not been cleared. The balance as per the Cash Book will be:
a)
Rs. 1,100
b)
Rs. 1,625
c)
Rs. 2,175
d)
Rs. 1,375
|
|
Rithika Nair answered |
Given:
Overdraft in Cash Book = Rs. 1,500
Cheques not presented for payment = Rs. 100 + Rs. 50 + Rs. 125 = Rs. 275
Cheque not cleared = Rs. 400
To find: Balance as per Cash Book
Solution:
Step 1: Adjust the cheques not presented for payment
Cash Book balance = Overdraft - Cheques not presented for payment
Cash Book balance = Rs. 1,500 - Rs. 275 = Rs. 1,225
Step 2: Adjust the cheque not cleared
Cash Book balance = Cash Book balance - Cheque not cleared
Cash Book balance = Rs. 1,225 - Rs. 400 = Rs. 825
Step 3: Compare with Pass Book balance
As per the Pass Book, there are no transactions that have not been recorded in the Cash Book. Therefore, the balance as per Pass Book is the actual balance.
Pass Book balance = Cash Book balance + Overdraft
Pass Book balance = Rs. 825 + Rs. 1,500 = Rs. 2,325
Therefore, the balance as per Cash Book is Rs. 825 and the correct option is (b) Rs. 1,625.
Overdraft in Cash Book = Rs. 1,500
Cheques not presented for payment = Rs. 100 + Rs. 50 + Rs. 125 = Rs. 275
Cheque not cleared = Rs. 400
To find: Balance as per Cash Book
Solution:
Step 1: Adjust the cheques not presented for payment
Cash Book balance = Overdraft - Cheques not presented for payment
Cash Book balance = Rs. 1,500 - Rs. 275 = Rs. 1,225
Step 2: Adjust the cheque not cleared
Cash Book balance = Cash Book balance - Cheque not cleared
Cash Book balance = Rs. 1,225 - Rs. 400 = Rs. 825
Step 3: Compare with Pass Book balance
As per the Pass Book, there are no transactions that have not been recorded in the Cash Book. Therefore, the balance as per Pass Book is the actual balance.
Pass Book balance = Cash Book balance + Overdraft
Pass Book balance = Rs. 825 + Rs. 1,500 = Rs. 2,325
Therefore, the balance as per Cash Book is Rs. 825 and the correct option is (b) Rs. 1,625.
“Debit the receiver and credit the giver” is the golden rule for which type of account?- a)Real A/c
- b)Personal A/c
- c)Nominal A/c
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
“Debit the receiver and credit the giver” is the golden rule for which type of account?
a)
Real A/c
b)
Personal A/c
c)
Nominal A/c
d)
None of these
|
|
Miss U Jaan answered |
It's B Personal Account
Personal Account ka rule h Debit the receiver and credit the giver.
Personal Account ka rule h Debit the receiver and credit the giver.
This a MCQ (Multiple Choice Question) based practice test of Chapter 2- Theory Base of Accounting of Accountancy of Class XI (11) for the quick revision/preparation of School Board examinationsQ According to which accounting principle personal expenses of proprietor are recorded in drawings account.
a)Money measurement
b)Matching
c)Prudence
d)Business Entity Concept
Correct answer is option 'D'. Can you explain this answer?
|
|
Ishan Choudhury answered |
According to business entity concept business is different from owners and it is treated as a separate unit or entity apart from owners. Personal expenses of proprietor will be recorded in drawings because it may be an expenses which relate to business entity .So the correct answer is d
Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom. In the books of X, the cost of air conditioner would be debited in:
- A:
Drawings Account
- B:
Capital Account
- C:
Fixed asset account
- D:
Purchase account
The answer is c.
X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom. In the books of X, the cost of air conditioner would be debited in:
Drawings Account
Capital Account
Fixed asset account
Purchase account
|
Tejas Joshi answered |
Explanation:
When X purchased two air conditioners and installed them in his showroom, the cost of the air conditioners would be debited in the Fixed Asset Account. Here's why:
1. Fixed Asset Account:
Fixed assets are long-term tangible assets that are used to produce goods or services, and are not intended for sale to customers. Examples of fixed assets include land, buildings, machinery, and equipment. Since the air conditioners purchased by X are not intended for sale to customers, they would be classified as fixed assets.
2. Cost of Air Conditioners:
The cost of the air conditioners includes the purchase price, transportation costs, installation costs, and any other expenses incurred to bring the asset into its present condition and location. As such, the cost of the air conditioners would be debited in the Fixed Asset Account.
3. Purpose of Fixed Asset Account:
The purpose of the Fixed Asset Account is to track the cost of fixed assets over their useful life, and to record any depreciation or impairment of the assets as they are used in the business. By debiting the cost of the air conditioners in the Fixed Asset Account, X can track the value of the air conditioners over time and record any depreciation or impairment as necessary.
In conclusion, the correct answer is option 'C' Fixed Asset Account, as it is the appropriate account to record the cost of the air conditioners as fixed assets.
When X purchased two air conditioners and installed them in his showroom, the cost of the air conditioners would be debited in the Fixed Asset Account. Here's why:
1. Fixed Asset Account:
Fixed assets are long-term tangible assets that are used to produce goods or services, and are not intended for sale to customers. Examples of fixed assets include land, buildings, machinery, and equipment. Since the air conditioners purchased by X are not intended for sale to customers, they would be classified as fixed assets.
2. Cost of Air Conditioners:
The cost of the air conditioners includes the purchase price, transportation costs, installation costs, and any other expenses incurred to bring the asset into its present condition and location. As such, the cost of the air conditioners would be debited in the Fixed Asset Account.
3. Purpose of Fixed Asset Account:
The purpose of the Fixed Asset Account is to track the cost of fixed assets over their useful life, and to record any depreciation or impairment of the assets as they are used in the business. By debiting the cost of the air conditioners in the Fixed Asset Account, X can track the value of the air conditioners over time and record any depreciation or impairment as necessary.
In conclusion, the correct answer is option 'C' Fixed Asset Account, as it is the appropriate account to record the cost of the air conditioners as fixed assets.
A withdrawal of cash from business by the proprietor of the firm should be debited to ___________.
- a)Cash account
- b)Capital account
- c)Drawing account
- d)Purchase account
Correct answer is option 'C'. Can you explain this answer?
A withdrawal of cash from business by the proprietor of the firm should be debited to ___________.
a)
Cash account
b)
Capital account
c)
Drawing account
d)
Purchase account
|
|
Arun Khanna answered |
C: Drawings Account
The transaction is based on the separate entity concept which signifies that business and its proprietor are treated two separate legal entity.
Withdrawal of cash by proprietor should be debited to drawing account in the books of the business. Same amount should be credited by the proprietor in cash account.
Accounting has universal application for recording _______ and events and presenting suitable information for decision making- a)Entries
- b)Transactions
- c)Data
- d)Figures.
Correct answer is option 'B'. Can you explain this answer?
Accounting has universal application for recording _______ and events and presenting suitable information for decision making
a)
Entries
b)
Transactions
c)
Data
d)
Figures.
|
|
Kavita Joshi answered |
Accounting has universal application for recording transactions and events and presenting suitable information to aid decision-making regarding any type of economic activity ranging from a family function to functions of the national government. But hereinafter we shall concentrate only on business activities and their accounting because the objective of this study material is to provide a basic understanding on accounting for business activities. Nevertheless, it will give adequate knowledge to think coherently of accounting as a field of study for universal application.
On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This is- a)An event
- b)A transaction.
- c)A transaction as well as an event.
- d)Neither a transaction nor an event
Correct answer is 'A'. Can you explain this answer?
On March 31, 2011 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This is
a)
An event
b)
A transaction.
c)
A transaction as well as an event.
d)
Neither a transaction nor an event
|
Neha Yadav answered |
Correct answer is option A
Goods destroyed by fire should be credited toa)Purchase accountb)Sales account.c)Goods lost by fire account;d)Cash accountCorrect answer is option 'A'. Can you explain this answer?
Correct answer is option 'A'. Can you explain this answer?
|
|
Freedom Institute answered |
The correct answer is A.
The goods destroyed by fire is a loss for the business and is a nominal account. Therefore, according to the rule of nominal account, all the expenses and losses are to be debited. Hence, "Loss by fire A/c" is debited when goods are destroyed by fire and "purchases A/c" is credited.
A Furniture dealer during the financial year 2010-11, sold furniture of Rs. 25,000 to Mr. Sunil on cash basis. In the books of dealer _____ account will be debited and _________ account will be credited. - a)Cash, Fixed Assets
- b)Cash, Furniture
- c)Cash, Sales
- d)Cash, Sunil’s
Correct answer is option 'C'. Can you explain this answer?
A Furniture dealer during the financial year 2010-11, sold furniture of Rs. 25,000 to Mr. Sunil on cash basis. In the books of dealer _____ account will be debited and _________ account will be credited.
a)
Cash, Fixed Assets
b)
Cash, Furniture
c)
Cash, Sales
d)
Cash, Sunil’s
|
Gowri Chavan answered |
C)Cash, Sales
Which of the following is correct? Owner’s Equity is : - a)(Current Asset + Fixed Asset) + (Current Liabilities + Long term Liabilities)
- b)(Current Asset + Fixed Asset) – (Current Liabilities + Long term Liabilities)
- c)(Current Asset – Fixed Asset) – (Current Liabilities + Long term Liabilities)
- d)None of the above.
Correct answer is option 'B'. Can you explain this answer?
Which of the following is correct? Owner’s Equity is :
a)
(Current Asset + Fixed Asset) + (Current Liabilities + Long term Liabilities)
b)
(Current Asset + Fixed Asset) – (Current Liabilities + Long term Liabilities)
c)
(Current Asset – Fixed Asset) – (Current Liabilities + Long term Liabilities)
d)
None of the above.
|
|
Deepika Desai answered |
Owner.
Balance as per pass book Rs. 20,000 Rs. 4,000 were directly deposited by a customer into the bank. Then the balance as per cash book is:
- a)Rs. 24,000
- b)Rs. 18,000
- c)Rs. 16,000
- d)Rs. 22,000
Correct answer is option 'C'. Can you explain this answer?
Balance as per pass book Rs. 20,000 Rs. 4,000 were directly deposited by a customer into the bank. Then the balance as per cash book is:
a)
Rs. 24,000
b)
Rs. 18,000
c)
Rs. 16,000
d)
Rs. 22,000
|
|
KP Classes answered |
Calculation:
- Balance as per pass book: Rs. 20,000
- Direct deposit by customer: Rs. 4,000
Calculation for balance as per cash book:
- Balance as per pass book: Rs. 20,000
- Direct deposit: Rs. 4,000
- Total balance: Rs. 20,000 (from pass book) + Rs. 4,000 (direct deposit) = Rs. 24,000
Therefore, the balance as per cash book is Rs. 24,000.
- Balance as per pass book: Rs. 20,000
- Direct deposit by customer: Rs. 4,000
Calculation for balance as per cash book:
- Balance as per pass book: Rs. 20,000
- Direct deposit: Rs. 4,000
- Total balance: Rs. 20,000 (from pass book) + Rs. 4,000 (direct deposit) = Rs. 24,000
Therefore, the balance as per cash book is Rs. 24,000.
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