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. Also, check out the best finance training for non-finance executives (C-cadre and business owners!) from Dr. Anil Lamba as well.

Discussion

question 20: The Profit and Loss is 4750? Where does this number come from?

2398 days 15 hours ago

question 11 : why the grossloss is 200,000 ?? 25 % of 600,000 is 150,000 no?

2690 days 17 hours 19 minutes ago

when was come double entry system in accounting system

2752 days 4 hours 38 minutes ago

finance

2756 days 19 hours 1 minutes ago

Dear Namrata, The answer for Question no. 7 is 400000.

2782 days 21 hours 16 minutes ago

Hello Namrata, Can you please explain me the working out for question number 11. As the answer what i have calculated comes up as Opening Stock = 4,30,000..Thanks in advance for your help.

2879 days 6 hours 16 minutes ago

I failed this exam so hard... @-@

2918 days 4 hours 16 minutes ago

i am unable to view this test plz help........

2923 days 23 hours 47 minutes ago

Dear Sir, there is problem with Question No.7. The sum of Operating Expenses, is wrong (according to your calculations, it is INR 120 000 , but it should be INR 200 000) and that's why, the answer is wrong and the right answer is not among the other alternatives you have given.For the rest, it is a very good test.

2975 days 17 hours 55 minutes ago

3008 days 16 hours 28 minutes ago

Englishteacher Namrata Arora
English, Oral and Written English, CAT, GRE, IELTS, TOEFL, Management
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