The machinery is recorded in the books of a firm at the price paid to the supplier + the expenses of bringing and installing the machinery. This is due to application of:
money measurement concept
cost concept
business entity concept
realization concept
When the promoter of a business withdraws certain goods from the business for his personal use, his drawing account is debited. This is done due to application of :
going concern concept
cost concept
business entity concept
realization concept
Which of the following is not part of accounting cycle:
analyzing
recording
classifying
summarizing
The accounts of things that cannot be touched but can be measured in money terms are called:
nominal accounts
tangible real accounts
intangible real accounts
representative personal accounts
A debit in a real account implies (which is not correct):
the value of the asset has increased
the business has disposed the existing assets
the business has acquired more of that asset
none of the above
It is observed by the firm that the bank has debited Rs.200 as service charges and an amount not related to the firm Rs.2000, has been credited by the bank. Firm had issued a cheque of Rs.3000 which has been debited to the account of partner. The balance in the overdraft account at bank is Rs.34500. What will be balance in the cash book.
32900
33300
39300
30900
A cheque of Rs.3300 was deposited with the bank by the firm which has been collected by the bank and credited to account of another party. A cheque of Rs.1200 issued by the firm has been debited by the bank to account of another party. The balance as per cash book is Rs.12000 overdraft. What is the balance as per pass book.
14100
15300
9900
8700
The name given to which of the following explanations does not match:
account book where the transaction is entered first – book of secondary entry
total of credit side is greater than the total of debit side of account – credit balance
discount that is recorded in the books of account – cash discount
ledger is the principal book of accounts - True
Which of the following is not a type of clerical error:
error of omission
error of commission
error of principle
compensating error
Which of the following error will affect not the trial balance:
an amount of Rs.900 has been posted in a wrong account
an amount of Rs.900 has been posted on the wrong side of an account
Total of debit side of the account not done correctly
posting of wrong amount in the account.
The firm has been able to recover amount from a debtor which was written off. The amount is credited to personal account of the debtor. How the error shall be removed.
by crediting the amount to sundry debtor account
by crediting the amount to cash account
by debiting the debtor account and crediting the profit and loss account
by debiting the debtor account and crediting the provisions account
The expenditure for which payment has been made or a liability has been incurred. But it is carried forward on the assumption that benefit will be available for a no. of years, is called:
recurring expenditure
deferred revenue expenditure
revenue expenditure
capital expenditure
Which of the following is not part of revenue receipts:
interest on bank term deposit
commission on sales
capital contributed by the partner
none of the above
The drawer of a bill of exchange cannot take legal action in case of:
demand bill
usance bill
foreign bill
accomodation bill
In a consignment, if there is abnormal loss of stock after adjusting the recovery and insurance claim, it is transferred to:
capital account
trading account
stock account
profit and loss account
Which of the following is a correct statement:
In a joint venture the association is of a short term nature
the persons participating in a joint venture are called partners
the co-venturers contribute capital to the business
all the above
Depreciation is calculated on the book value (diminishing value) in case of:
straight line method
written down value method
sinking fund method
depletion method
A machinery is purchased on June 12, 2006 for Rs.60000. Another machinery is purchased on January 22, 2007 for Rs.40000. The depreciation rate is 10% SLM. What is the book value as at Mar 31, 2009 (it is annual closing period).
79000
76000
73000
69000
Under the fixed capital method, the following types of accounts are maintained (which is not correct):
capital account of the partner
current account of the partner
in capital account, the partner contributes the capital
in the current account, contributed capital, interest on capital and drawings etc. are recorded.
The actual normal profit of a firm are Rs.25000 with a capital of Rs.1 lac. Normal return in the business is 10%. What is amount of goodwill as per capitalization of profit method.
100000
150000
250000
300000