Practice Test

Q1) The main objectives of book- keeping are: Show Answer

Q2) At the end of the finanacial year after sale of goods worth Rs.2,00,000 there was a closing stock of Rs.10,000. This is: Show Answer

Q3) Recording of Fixed Assets at cost ensures adherence of : Show Answer

Q4) Fundamental Accounting Assumptions are Show Answer

Q5) When Fixed assets are sold : Show Answer

Q6) The Accounting Standards are mandatory for : Show Answer

Q7) A change in Accounting Policy is justified to : Show Answer

Q8) Accounting Policies Show Answer

Q9) In accounting money is the Show Answer

Q10) Capital of business is Rs.75,000 and liability is Rs.25,000 then total assets of business would be : Show Answer

Q11) Journal records is the transaction of the firm in a : Show Answer

Q12) Ledger Book is popularly known as : Show Answer

Q13) Methods of preparation of Trial Balance are : Show Answer

Q14) The total of the purchase Day book is posted periodically to the : Show Answer

Q15) The Balance of Petty Cash is : Show Answer

Q16) Rs. 2,500, spent on the overhauling on purchase of second hand machinery : Show Answer

Q17) Which of the following is a revenue expenditure : Show Answer

Q18) Loss caused by theft of cash by cashier after business hours is a : Show Answer

Q19) Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation, is termed as : Show Answer

Q20) The goods sold for Rs. 900 but the amount was entered in the Sales Account as Rs. 1080. On Rectification, suspense account will be : Show Answer

Q21) Rs. 25,000 received form Aditi, is credited in the account of Prerna. It is an error of : Show Answer

Q22) Debit balance as per cash book Rs. 2000, Cheques deposited but not cleared Rs. 100, Cheques issued but not presented Rs.150, Bank Allowed interest Rs. 50, Bank collected dividend Rs. 50
Balance as per pass book will be : Show Answer

Q23) Unfavourable bank balance means : Show Answer

Q24) Under inflationary conditions, LIFO will lead to : Show Answer

Q25) Physical inventory system is also known as : Show Answer

Q26) Closing stock is generally valued at : Show Answer

Q27) Original cost of a machine = Rs. 1,30,000, Salvage value = Rs. 4,000, Useful life = 6 years, Depreciation for the 1st year under sum of year's digit method will be : Show Answer

Q28) Under annuity method, the amount of depreciation is : Show Answer

Q29) An asset was purchased for Rs. 12,500 and was depreciated under Reducing Balance Method at the rate of 20% p.a. What is the value of the assets at the end of three years? Show Answer

Q30) Calculate gross profit if rate of gross profit is 20% on sales and cost of goods is Rs. 1,20,000 : Show Answer

Q31) Prepaid Rent is shown as : Show Answer

Q32) A invoice certain goods so as to show a profit of 20% on invoice price 1/10th of the goods were lost in transit. The cost price of goods lost is Rs.40000. the invoice value of goods sent out is: Show Answer

Q33) X sent out 400 bags to Y costing Rs.200 each, consignor expenses were Rs.4000. Y's non selling expenses Rs.2000. and selling expenses of Rs.1000. 300 bags were sold by Y, value of consignment stock will be: Show Answer

Q34) M and N enter into a joint venture where M supplies goods worth Rs. 6,000 and spends Rs. 300 on expenses. N sells the entire lot for Rs. 7,800 meeting selling expenses amounting to Rs. 300. Profit sharing ratio equal. N remits to M the amount due. The amount of remittance will be : Show Answer

Q35) What is the nature of joint venture with co-venture's A/c : Show Answer

Q36) When unsold stock is taken away by a co-venture, then ________ account is debited : Show Answer

Q37) If due date of a bill is a public holiday then it's due date will be : Show Answer

Q38) On 1.1.05 X draws a bill on Y for Rs. 20,000. At maturity, Y requests X to renew the bill for 2 months @ 12% p.a. interest. Amount of interest will be : Show Answer

Q39) On 1.8.05 X draws a bill on Y "For 30 days after sight". The date of acceptance is 8.8.05. The due date of the bill will be : Show Answer

Q40) When a large number of articles are sent on a sale or return basis, it is necessary to maintain : Show Answer

Q41) Sale or return day book is a : Show Answer

Q42) A draws Rs. 1,000 per month on the last day of every month. If the rate of interest is 5% p.a. then the total interest on drawings will be : Show Answer

Q43) The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase : Show Answer

Q44) Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill as per capitalization method will be : Show Answer

Q45) X and Y are sharing profits and losses in the ratio of 3 : 2. Z is admitted with 1/5th share in profits of the firm which he gets from X. Find out the New profit sharing ratio? Show Answer

Q46) A and B are partners sharing profits and losses in the ratio of 3 : 2. A's Capital is Rs. 60,000 and B's Capital is Rs. 30,000. They admit C for 1/5th share of profits. How much C should bring in towards his capital? Show Answer

Q47) A and B are partner sharing profits and losses in the ratio 5 : 3. On admission, C brings Rs. 70,000 cash and Rs. 48,000 against goodwill. New profit sharing ratio between A, B, C is 7 : 5 : 4. The sacrificing ratio among A and B is : Show Answer

Q48) B, C, D are partners sharing profits in the ratio 7 : 5 : 4. D died on 30th June, 2006 and profits for the year 2005-06 were Rs. 12,000. How much share in profits for the period 1st April, 2006 to 30th June, 2006 will be credited to D's Account? Show Answer

Q49) The part of share capital which can be called up only on the winding up of a company is called : Show Answer

Q50) A company forfeited 2,000 shares of Rs. 10 each (which were issued at par ) held by A for non payment of allotment money of Rs. 4 per share. The called up value per share was Rs. 9. On forfeiture the amount debited to share capital is : Show Answer

Q51) The rate of interest paid on calls in advance as per table A is : Show Answer

Q52) The directors of a company forfeited 1000 shares of Rs. 10 each , Rs. 7.50 paid up for non payment of final call money of Rs. 2.50 per share. 700 of these shares are re-issued @ Rs. 7/- per share. The amount transferred to capital reserve A/c would be : Show Answer

Q53) A Ltd. acquired assets worth Rs. 15,00,000 from H Ltd. by issued of shares of Rs. 100 @ premium of 25 % .The number of shares issued to settle the purchase consideration will be : Show Answer

Q54) Preference shares can be redeemed Show Answer

Q55) The underwriting commission in case of issue of debentures can't exceed: Show Answer

Q56) F Ltd Purchased machinery for a book value of Rs.4,00,000. The consideration was paid by issue of 10% debenture of Rs.100 each @ discount of 20%. The debenture account will be credited by: Show Answer

Q57) P agrees to pay a certain sum to Q, if Q brings on earth a star from sky. This is a: Show Answer

Q58) Indian Contract Act,1872 is passed by: Show Answer

Q59) In an auction sale, 'X' is the highest bidder. The auctioneer accepts the offer by not speaking but striking the hammer on the table. This amounts to: Show Answer

Q60) A enquires from B, "will you purchase my cow for $ 100?" B replies, " I shall purchase your cow for $ 100 provided you purchase my parrot for $ 120." in this case: Show Answer

Q61) Agreement without consideration is valid when made? Show Answer

Q62) Consideration must move at the desire of: Show Answer

Q63) S, a seller of imitation jewellery, sells his business to B and promises, not to carry on business in imitation jewellery and real jewellery. The agreement is: Show Answer

Q64) S, a minor by fradulently representing himself to be a major, induced L to lend him Rs.4 lacs. He refused to repay it and L sued him for the money. The contract is: Show Answer

Q65) Mistake as to foreign law is treated in the same manner as: Show Answer

Q66) Atul contracted to make and deliver 350 pairs of shoes to Bansi by 1st January. A strike of Atul's employees prevented him from fulfilling his contract. In a suit by Bansi for breach of contract, Atul claimed that the contract was terminated by impossibility of performance. was his defence good? Show Answer

Q67) A lets out a theatre to B for a series of drama for certain days. The theatre was completely destroyed by fire before the scheduled dates. In the case: Show Answer

Q68) A, B and C jointly promise to pay D a sum of Rs.90,000. C is compelled to pay the whole of the amount to D. can he recover anything from A and B when both A and B were solvent? Show Answer

Q69) A servant is employed for one year on a monthly salary of Rs.1,800, the whole salary to be paid at the end of the year. The servant wrongfully leaves the service after six months. Is he entitled to any salary? Show Answer

Q70) R contracts to sell his car to S for Rs.7 Lacs and S agrees to pay on delivery. Once the car is delivered to S and S pays Rs.7 lacs, contract comes to an end. This is called: Show Answer

Q71) Which one of the following is relevant in normal circumtances in determining the amount of damages from breach of contract? Show Answer

Q72) A party who does not suffer any loss in case of breach of contract is entitled to: Show Answer

Q73) The basis of 'quasi contractual' relations is the: Show Answer

Q74) Goods means every kind of movable property including: Show Answer

Q75) In case of an agreement to sell, subsequent loss or destruction of the goods is the liability of ________. Show Answer

Q76) X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. can X return the goods to Y? Show Answer

Q77) Breach of warranty gives a right to: Show Answer

Q78) Implied conditions include: Show Answer

Q79) In case of sale on approval, the ownership is transferred to the buyer when he: Show Answer

Q80) When the sale is made, goods should be: Show Answer

Q81) A of Mumbai writes to B of Delhi to send him a book by post parcel. The parcel is lost on the way. Can B recover the price? Show Answer

Q82) Where the buyer wrongfully neglects or refuses to accept and pay for the goods, he will have to compensate the seller in a suit by him for: Show Answer

Q83) Unpaid seller has which rights against the buyer personally: Show Answer

Q84) In case of partnership maximum number of members of banking company are: Show Answer

Q85) Raj and Ram, two friends buy hundred mobile sets agreeing to share the same between them. It is a: Show Answer

Q86) A partner may retire from an existing firm _______. Show Answer

Q87) Every partner is bound to attend ______ to his duties in the conduct of the business: Show Answer

Q88) A third party deals with the firm without knowledge that Mr.X has been expelled from the firm. In such a case, Mr.X _______. Show Answer

Q89) The estate of a partner who dies, is not liable u/s 45 for acts done after the date on which he ceases to be a partner. This statement is ______: Show Answer

Q90) In case of transfer of partner's interest u/s 29, the transferee is entitled to interfere with the conduct of the business: Show Answer

Q91) A partnership may be dissolved: Show Answer

Q92) The accounting rule in respect of loss arising due to insolvency of a partner is dealt within ______. Show Answer

Q93) Registrar of firms under Section 57 of the Indian Partnership Act is appointed by: Show Answer

Q94) How unrecorded assets are treated at the time of retirement of a partner?
Show Answer

Q95) Which one of the following promises is enforceable?
Show Answer

Q96) The rule of caveat emptor does not apply in the case of:
Show Answer

Q97) If the goods are rejected by the buyer, and the carrier or other bailee continues in possession of them, then the transit _______ even if the seller has refused to receive them back:
Show Answer

Q98) If the transaction is illegal collateral transactions are: Show Answer

Q99) A sent a proposal for sale of goods to B through a letter.However letter was still in transit A sent the letter of revocation of offer to B which was received by B before the first letter reached B. Show Answer

Q100) If mistake is unilateral then the contract is: Show Answer