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Finance Test on Practical questions on Accountancy and Accounting

Anu purchased a running business having Land INR 1000000, Cash INR 50000, Furniture INR 30000, Stock INR 5000, Creditors INR 10000 and Bank Overdraft INR 12000. The journal entry for this transaction is:
Land A/c Dr. 1000000 Cash A/c Dr. 50000 Furniture A/c Dr. 30000 Stock A/c Dr. 5000 To Creditors A/c 10000 To Bank Overdraft A/c 12000
Land A/c Dr. 1000000 Cash A/c Dr. 50000 Furniture A/c Dr. 30000 To Stock A/c 5000 To Creditors A/c 10000 To Bank Overdraft A/c 12000 To Capital A/c 1063000
Land A/c Dr. 1000000 Cash A/c Dr. 50000 Furniture A/c Dr. 30000 Stock A/c Dr. 5000 Bank Overdraft A/c Dr. 12000 To Creditors A/c 10000 To Capital A/c 1087000
Land A/c Dr. 1000000 Cash A/c Dr. 50000 Furniture A/c Dr. 30000 Stock A/c Dr. 5000 To Creditors A/c 10000 To Bank Overdraft A/c 12000 To Capital A/c 1063000
P and Q are partners in the ratio 1:2. They admit R for ¼ share who contributes INR 50000 for his share of Goodwill. The total value of the firm’s goodwill in INR is:
150000
200000
75000
25000
Fill in the blanks for the given Accounting Equation: /
(1) 0, (2) 0, (3) 3000, (4) 3000
(1) 10000, (2) 0, (3) 8000, (4) 5000
(1) 0, (2) 10000, (3) 5000, (4) 8000
(1) 10000, (2) 10000, (3) 8000, (4) 3000
Complete the table showing the Accounting Equation: /
(1) 500000, (2)500000, (3)30000, (4)30000
(1)0, (2)500000, (3)30000, (4)0
(1)500000, (2)0, (3)0, (4) 30000
(1)0, (2)0, (3)500000, (4) 30000
Partners P and Q share profit and losses in the ratio 3:4. R is admitted to the partnership and it is decided to distribute the Goodwill he brings between P and Q. The share of R in future Profit or Loss is to be ¼. The new profit sharing ratio of P, Q and R is:
3:4:1
9:12:7
3:3:4
12:16:1
If the Net Profit is INR 50000 after writing off Preliminary Expenses of INR 2000, Goodwill INR 4000 and Loss on Sale of Plant INR 3000, Funds from Operation in INR will be:
59000
50000
41000
53000
Calculate Sales figure if the following figures have been given: Purchases = INR 150000 Opening Stock = INR 35000 Closing Stock = INR 45000 Administration & Selling Expenses = INR 60000 The operating Ratio is 50%
120000
240000
280000
300000
The ABC firm’s figures are: Purchases = INR 80000 Opening Stock = INR 15000 Closing Stock = INR 5000 Sales = INR 200000 Administration & Selling Expenses = INR 30000 The operating Ratio is:
50%
55%
35%
60%
The Ratios for a firm for a year are: Current Ratio = 1.5 Acid Test Ratio = 1.0 Net Working Capital = INR 50000 The value of Current Liabilities in INR is:
50000
10000
100000
500000
Following are the figures of a company P Ltd. for a specific year: Net Profit for the year = INR 125000 Equity Share Capital = INR 2000000 Reserves and Surplus= INR 500000 The Rate of return on owner’s fund is:
5%
20%
62.5%
16%
The Accounting figures of a firm are: Sales INR 600000, Purchases INR 400000, Closing Stock INR 80000 and the Gross Loss is 25% on cost. The Opening stock in INR is:
430000
400000
480000
500000
Gross Sales = INR 1000000 Sales Tax = 10% on Gross Sales Income Tax = 50% Profit before Tax = INR 90000 The Net Profit before tax ratio is:
10%
5%
15%
20%
Complete the following table for journalizing the following entries: /
(1) Anand, (2) Discount
(1) Cash (2) Discount
(1) Anand (2) Profit
(1) Cash (2) Profit
A firm’s ratios and other figures are: Fixed Assets = 55000 Current Ratio = 1.5:1 Proprietary Ratio = 0.80 Proprietary Fund = INR 80000 The Working Capital is:
31250
15000
20833
30000
A company’s accounting data for the year is: Credit Sales = INR 150000 Debtors = INR 30000 Bills Receivable =INR 15000 The Average Collection Period is:
1.8 months
2.4 months
1 month
3.6 months
Complete the following table for journalizing the following entry: /
37500, 1875
50000, 14375
50000, 1875
37500, 14375
Complete the following table for journalizing the following entry: /
Goods A/c, Loss in transit, Claim
Sham, Loss in transit, Loss in transit
Cash A/c, Sham, Loss in transit
Cash A/c, Loss in transit, Loss in transit
The journal entry for the given transaction is: Bought 1000 shares in Maya Ltd. at INR 15 per share, brokerage paid INR 50.
Shares A/c Dr. 15000 Brokerage A/c Dr. 50 To Maya Ltd. 15050
Shares A/c Dr. 15000 Brokerage A/c Dr. 50 To Cash A/c 15050
Shares A/c Dr. 15000 Brokerage A/c Dr. 50 To Investment A/c 15050
Investment in Shares A/c Dr. 15050 To Cash A/c 15050
P owes to Q INR 10000. he accepts a three month’s bill for INR 9750 in full settlement. On the due date, the bill gets dishonoured. What Journal entries would be made in the books of P?
Q Dr. 9750 To Bills Payable A/c 9750 (Being acceptance of Bills Payable) Bills Payable A/c 9750 To Q 9750 (Being Dishonor of Bills Payable)
Q Dr. 10000 To Bills Receivable A/c 9750 To Discount A/c 250 (Being acceptance of Bills Payable) Bills Receivable A/c 9750 Discount A/c 250 To Q 10000 (Being Dishonor of Bills Payable)
Q Dr. 10000 To Bills Payable A/c 9750 To Discount A/c 250 (Being acceptance of Bills Payable) Bills Payable A/c 9750 Discount A/c 250 To Q 10000 (Being Dishonor of Bills Payable)
Q Dr. 9750 To Bills Receivable A/c 9750 (Being acceptance of Bills Payable) Bills Receivable A/c 9750 To Q 9750 (Being Dishonor of Bills Payable)
The Trial shows Sundry Debtors at INR 50000 and Bad Debts at 10000. After preparing the Trial Balance, it was found that a Debtor S has become insolvent and the full amount of INR 2500 became irrecoverable. It is also decided to create a 10% Provision for Bad and Doubtful debts. The adjustment entries are:
Bad Debts A/c Dr. 2500 To S 2500 (Being Bad Debts of the amount due from S) Profit and Loss A/c Dr. 1000 To Provision for Bad Debts 1000 (Being Bad Debts Provision created)
Bad Debts A/c Dr. 2500 To S 2500 (Being Bad Debts of the amount due from S) Profit and Loss A/c Dr. 5000 To Provision for Bad Debts 5000 (Being Bad Debts Provision created)
Bad Debts A/c Dr. 2500 To S 2500 (Being Bad Debts of the amount due from S) Profit and Loss A/c Dr. 250 To Provision for Bad Debts 250 (Being Bad Debts Provision created)
Bad Debts A/c Dr. 2500 To S 2500 (Being Bad Debts of the amount due from S) Profit and Loss A/c Dr. 4750 To Provision for Bad Debts 4750 (Being Bad Debts Provision created)
Description:

Finance Test on Financial Management checks the extent of clarity you have on the practical questions, formulas and calculations of Short Answer Questions on Accounts, These basic concepts come handy not just after the 10th Grade, but at all stages from Graduation (B.COM) to Post Graduation (MBA, M.COM) and other entrance and finance related Exams like ICWA, Company Secretary, Chartered Financial Analyst and Chartered Accountancy. Here is an objective type Test on the short answer questions of Accounting and Accountancy that covers topics including Working Capital, Ratios, Financial Statements, Profit and Loss Account, Balance Sheet, Cash Flow Statement, Fund Flow Statement, Partnership Accounts, Accounting Equation, Journal, Ledger, Trial Balance, Negotiable Instruments and Bills of Exchange.

Comments
mohd
By: mohd
851 days 23 hours 44 minutes ago

this improves accounting capability ,

DHARAMRAJ
By: DHARAMRAJ
782 days 3 hours 32 minutes ago

if we purchase furniture, it will increase Assets figure.

Meghna jaiswal
By: Meghna jaiswal
777 days 33 minutes ago

thanks alot! it helped me alot to judge my weak areas in accounting.

Englishteacher Namrata Arora
By: Englishteacher Namrata Arora
770 days 23 hours 19 minutes ago

Thank you for commenting everyone. For further help, you may contact me on namrata_arora@rediffmail.com

Mohammed Ahmed
By: Mohammed Ahmed
749 days 18 hours 30 minutes ago

It Helps Me to Know My Weakness Thanks

Aneth
By: Aneth
692 days 4 hours 5 minutes ago

What is financial management? Why we study financial management? what is important to study financial management?

Englishteacher Namrata Arora
By: Englishteacher Namrata Arora
633 days 16 hours 7 minutes ago

For a detailed discussion of this test, you can book your classes by contacting me on this Website or by mailing me directly on namrataaro@gmail.com

Englishteacher Namrata Arora
By: Englishteacher Namrata Arora
608 days 22 hours 7 minutes ago

All students of Finance and Accounting you are invited to attend my class on I Speak You Speak English: Conversations in Banks today.

Englishteacher Namrata Arora
By: Englishteacher Namrata Arora
604 days 22 hours 10 minutes ago

Everyone attempting this test is eligible for the online Test Discussion class; irrespective of your score. Book your time slot for the Test Solutions classes starting from June 21, 2010. Mail Namrata on namrataaro@gmail.com

ashish harbola
By: ashish harbola
508 days 18 hours 19 minutes ago

HI PLZ SOLVED MY WEEKNESS FOR ACCOUNTING........

stef
By: stef
320 days 9 hours 39 minutes ago

what is inr?

Usman Saleem
By: Usman Saleem
189 days 15 hours 15 minutes ago

Can you please clear my point on INR? Thanks

Usman Saleem
By: Usman Saleem
189 days 15 hours 15 minutes ago

Can you please clear my point on INR? Thanks

Englishteacher Namrata Arora
By: Englishteacher Namrata Arora
189 days 8 hours 24 minutes ago

For all those who got puzzled about the INR, it is the Indian Rupee, the currency of India. For further clarification, just mail me on namrataaro@gmail.com

Sam Thomas
By: Sam Thomas
135 days 3 hours 21 minutes ago

that accounting equation question 3 is vague

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