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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)

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)

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.

Finance Financial Management B.COM (Bachelors of Commerce) MBA (Finance) Company Secretary Chartered Financial Analyst Chartered Accountancy ICWA M.COM 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 Bills of Exchange Accountancy

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

1863 days 16 hours 2 minutes ago

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

2155 days 18 hours 20 minutes ago

dude the answer is 480,000, if we will be squeezing our solution, the cost of sales will be 800,000 and the gross loss will be 200,000, which in effect, 200,000/800,000=25%

2033 days 8 hours 38 minutes ago

Why should we will squeezing our solution. I've got other things in mind.

1764 days 3 hours 15 minutes ago

That's a historical question. You are supposed to ask only accounts Q's here -jerk!

1764 days 3 hours 18 minutes ago

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

2247 days 22 hours 18 minutes ago

yeah that's also my answer, i'm just wondering how did the author got 240,000.? Give Justice

2033 days 8 hours 36 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.

2344 days 7 hours 18 minutes ago

(sales+cl stock+gross loss)-purchase = op stock ..... gross loss = (600000/75)x25=200000

680 days 22 hours 36 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.

2440 days 18 hours 57 minutes ago

yes, i agree that some error in ques #7... please rectify that

1839 days 5 hours 36 minutes ago

For all those who are liking my tests on Facebook; do add me on FB https://www.facebook.com/namrataaro

2473 days 17 hours 29 minutes ago

You are an English teacher and this your english writing. LOL. India is Mahaan.

1764 days 2 hours 43 minutes ago

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Arlohani(50000-2500)*10%=4750

1588 days 10 hours 51 minutes ago

Allan SalvadorItem 7 : COS 140,000 + Exp. 60,000 = 200,000 / 50% Answer 300,000

1489 days 2 hours 11 minutes ago

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