Practice Test

Q1) The balance of the petty cash is Show Answer

Q2) Fixed assets are Show Answer

Q3) Goodwill is Show Answer

Q4) Stock is Show Answer

Q5) A new firm commenced business on 1st Jan , 2006 and purchased goods costings Rs.90,000 during the year .A sum of Rs.6,000 was spent on freight inwards . At the end of the year the cost of goods still unsold was Rs.12,000.Sales during the year Rs.1,20,000.what is the gross profit earned by the firm ? Show Answer

Q6) From the following figures ascertain the gross profit :Opening stock (1.1.2006) Rs.25,000 , Goods purchased during 2006 Rs.1,30,000 , Freight and packing on above Rs.5,000 , Closing stock (31.12.2006) Rs.15,000 , Sales Rs.1,90,000 , Selling expenses on Sales Rs.9,000 Show Answer

Q7) A prepayment of insurance premium will appear in the Balance Sheet and in the insurance account respectively as; Show Answer

Q8) If Sales revenues are Rs.4,00,000;cost of goods sold is Rs.3,10,000 and operating expenses are Rs.60,000 , the gross profit is Show Answer

Q9) Sales are equal to Show Answer

Q10) A company wishes to earn a 20%profit margin on selling price .Which of the following is the profit mark up on cost , which will achieve the required profit margin Show Answer

Q11) Sales for the year ended 31 st march ,2005 amounted to Rs.10,00,000. Sales included goods sold to Mr.A for Rs.50,000 at a profit of 20% on cost.Such goods are still lying in the godown at the buyer's risk.Therefore , such goods should be treated as part of Show Answer

Q12) Rent paid on 1st October ,2004 for the year to 30th September , 2005 was Rs.1,200 and Rent paid on 1st October ,2005 for the year to 30th September , 2006 was Rs.1,600 . Rent payable , as shown in the profit and loss account for the year ended 31st December 2005, would be ; Show Answer

Q13) A decrease in the provision for doubtful debts would result in: Show Answer

Q14) Sales Rs.15,000 , Opening stock Rs.6,000 , Purchases Rs.10,000 , Closing stock Rs.? , Cost of goods sold Rs.9,000 , Show Answer

Q15) Sales Rs.15,000 , Opening stock Rs.6,000 , Purchases Rs.10,000 , Closing stock Rs.? , Cost of goods sold Rs.9,000 , Gross profit Rs.? , Trading Expenses Rs.4,000 , Net profit Rs.? ; The Gross profit will be Show Answer

Q16) Sales Rs.15,000 , Opening stock Rs.6,000 , Purchases Rs.10,000 , Closing stock Rs.? , Cost of goods sold Rs.9,000 , Gross profit Rs.? , Trading Expenses Rs.4,000 , Net profit Rs.? ; The Net profit will be Show Answer

Q17) Opening Capital Rs.16,000 , Investment By Proprietor Rs.Nil , Drawing Rs.3,000 , Capital at the end of the year Rs.13,500 , Net Profit (loss) Rs. ? . The Net profit will be Show Answer

Q18) Opening Capital Rs.16,000 , Investment By Proprietor Rs.Nil , Drawing Rs.3,000 , Capital at the end of the year Rs.13,500 , Net Profit (loss) Rs. ? . If given information , net loss is Rs.1,000, then the investments made by the proprietor during the year will be Show Answer

Q19) Sales Rs.1,40,700 , Opening stock Rs.20,000 , Purchases Rs.85,800 , Closing stock Rs.18,000 , Carriage on Purchases Rs.2,300 , Carriage on Sales Rs.3,000, Rent of office Rs.5,000 , The Net profit will be Show Answer

Q20) Sales Rs.1,40,700 , Opening stock Rs.20,000 , Purchases Rs.85,800 , Closing stock Rs.18,000 , Carriage on Purchases Rs.2,300 , Carriage on Sales Rs.3,000, Rent of office Rs.5,000 , The Gross profit will be Show Answer

Q21) The Zed Company , a whole seller estimates the following Sales for the indicated months: June 2006 : Opening stock Rs.4,08,000, Credit Sales Rs.15,00,000 , Cash Sales Rs.2,00,000 , Total Sales Rs.17,00,000 , July 2006 :Opening stock Rs.4,34,400, Credit Sales Rs.16,00,000 , Cash Sales Rs.2,10,000 , Total Sales Rs.18,10,000 , August 2006 :Opening stock Rs.4,60,800, Credit Sales Rs.17,00,000 , Cash Sales Rs.2,20,000 , Total Sales Rs.19,20,000 . Selling price is 125% of the purchase price. The cost of goods sold for the month of June ,2006 is: Show Answer

Q22) The Zed Company , a whole seller estimates the following Sales for the indicated months: June 2006 : Opening stock Rs.4,08,000, Credit Sales Rs.15,00,000 , Cash Sales Rs.2,00,000 , Total Sales Rs.17,00,000 , July 2006 :Opening stock Rs.4,34,400, Credit Sales Rs.16,00,000 , Cash Sales Rs.2,10,000 , Total Sales Rs.18,10,000 , August 2006 :Opening stock Rs.4,60,800, Credit Sales Rs.17,00,000 , Cash Sales Rs.2,20,000 , Total Sales Rs.19,20,000 . Selling price is 125% of the purchase price. Stock purchased in July ,2006 is: Show Answer

Q23) MATCH THE PAIRS :- Capital is the difference between Show Answer

Q24) Gross profit is ascertained by deducting Show Answer

Q25) Wages paid for erecting machines are Show Answer

Q26) Gross profit is equal to Show Answer

Q27) Cost of good sold is equal to Show Answer

Q28) operating cost is equal to Show Answer

Q29) Net Profit is equal to Show Answer

Q30) Trading account is prepared to ascertain Show Answer

Q31) Profit & Loss account is prepared to ascertain Show Answer

Q32) the sequence of preparation of 1. Balance sheet , 2 . Trial balance , 3. Income statement is Show Answer

Q33) trading account is closed by transferring its balance to the Show Answer

Q34) Profit & Loss account is closed by transferring its balance to the Show Answer

Q35) Trading & Profit & Loss account is the result of posting of Show Answer

Q36) Trading & profit & loss account is based on Show Answer

Q37) Fixed asset are disclosed in the balance sheet at Show Answer

Q38) current asset are disclosed in the balance sheet at Show Answer

Q39) contingent liability is Show Answer

Q40) provision is Show Answer

Q41) if the amount of any known liability can be determined with substantial accuracy Show Answer

Q42) under the liquidity approach Show Answer

Q43) under permanence approach Show Answer

Q44) Patents rights is in the nature of Show Answer

Q45) provision is Show Answer

Q46) Profit & Loss shows Show Answer

Q47) Balance sheet shows Show Answer

Q48) if the opening entry is not passed Show Answer

Q49) closing entries are required to be passed before the preparation of Show Answer

Q50) the effect of opening entries is the opening of Show Answer

Q51) the effect of closing entries is the closure of Show Answer

Q52) If the adjustment entries are not passed Show Answer

Q53) if the closing stock is zero , it means Show Answer

Q54) Closing stock appearing in the trail balance is shown Show Answer

Q55) Income tax paid by a proprietor Rs.3,000 appearing in the trial balance Show Answer

Q56) Which reserve has debit balance Show Answer

Q57) Return outwards appearing in trial balance are deducted from Show Answer

Q58) Return inwards appearing in trial balance are deducted from Show Answer

Q59) salaries & wages appearing in the trail balance are shown in Show Answer

Q60) Wages & salaries appearing in the trial balance are shown in Show Answer

Q61) outstanding wages appearing in the trail balance are shown in Show Answer

Q62) freight inwards appearing in trial balance are shown Show Answer

Q63) Carriage outwards appearing in trial balance are shown Show Answer

Q64) Advance salaries appearing in the trail balance are shown in Show Answer

Q65) apprenticeship premium received appearing in the trial balance are shown Show Answer

Q66) Discount allowed appearing in the trial balance are shown Show Answer

Q67) closing stock appearing in the trail balance is shown Show Answer

Q68) Prepaid insurance appearing in the trail balance are shown in Show Answer

Q69) Patents is Show Answer

Q70) trade mark is Show Answer

Q71) Furniture is Show Answer

Q72) capital work - in -progress Show Answer

Q73) Bill Receivable is Show Answer

Q74) Drawings are deducted from Show Answer

Q75) Which of the following is correct ? Show Answer

Q76) Which of the following is correct ? Show Answer

Q77) the provision for discount on debtors is calculated Show Answer

Q78) The provision for discount on debtors is Show Answer

Q79) the provision for doubtful debts is Show Answer

Q80) The debit balance in the profit & loss account is Show Answer

Q81) The credit balance in the profit & loss account is Show Answer

Q82) the gain from sale of capital asset need not be added to revenue to ascertain the Show Answer

Q83) the gain from sale of capital asset is added to revenue to ascertain the Show Answer

Q84) Freight & cartage expenses paid on purchase of goods Show Answer

Q85) which of the following is True ? Show Answer

Q86) outstanding wages refer to those expenses which have been Show Answer

Q87) prepaid expenses refer to those expenses which have been Show Answer

Q88) outstanding expenses are shown Show Answer

Q89) Prepaid expenses are shown Show Answer

Q90) accrued income refers to that income which has been Show Answer

Q91) unaccrued income refers to that income which has been Show Answer

Q92) accrued income is shown Show Answer

Q93) unaccrued income is Show Answer

Q94) which of the following is True ? Show Answer

Q95) prepaid wages Rs.2,500 , appear in A's Trial balance. These will appear in Show Answer

Q96) income tax paid by Mr.A amounts to Rs.3,000.The accounting treatment is Show Answer

Q97) A's trail balance shows the opening stock Rs.20,000 , it will be Show Answer

Q98) B's trial balance contains the following information :bad debt Rs.1,000 provision for doubtful debts Rs.1,500. It is desired to make a provision for doubtful debts Rs.2,000 at the end of the year .the amount to be debited to the profit & loss account is Show Answer

Q99) C's trial balance contains the following information :bad debt Rs.800 provision for doubtful debts Rs.2,000. It is desired to make a provision for doubtful debts Rs.1,000 at the end of the year. The accounting treatment of these adjustments is Show Answer

Q100) D's trial balance contains the following information :Discount allowed Rs.500 provision for discount on debtor Rs.1,100. It is desired to make a provision for discount on debtor Rs.1,800 at the end of the year `the amount to be debited to the profit & loss account is Show Answer

Q101) E's trial balance contains the following information :Discount received Rs.1,000 provision for discount on creditor Rs.1,600. It is desired to maintain a provision for discount on creditors at Rs.1,100. The amount to be credited to the profit & loss account is Show Answer

Q102) C's trial balance contains the following information :bad debt Rs.4,000 , provision for doubtful debts Rs.5,000 , sundry debtors Rs.25,000. . It is desired to make a provision for doubtful debts @ 10% on sundry debtors at the end of the year .sundry debtor will appear in the balance sheet at Show Answer

Q103) F's capital on Jan 01 ,2002 Rs.45,000 .Interest on drawing Rs.5,000.Interest on capital Rs.2,000, drawing Rs.14,000. Profit for the year Rs.15,000,his capital as on 31.12.2002 is Show Answer

Q104) H's Trail balance contains the following info.Bad debts Rs.3,000 , Discount allowed Rs.3,000 , Provision for discount on debtors Rs.3,200 , Provision for bad debts Rs.3,500. Sundry debtor Rs.50,000.At the end of the year , it is desired to maintain a provision for bad debts at Rs.4,000 & provision for discount on debtor at Rs.2,000.sundry debtor will appear in the balance sheet at Show Answer

Q105) I's trial balance as at 31.12.2002 contains the following info.12% bank loan Rs.40,000. Interest paid Rs.3,800. Interest debited to the Profit & loss account is Show Answer

Q106) opening stock Rs.1,00,000 .Sales Rs.5,00,000 , gross profit @ 25 % on sales ,purchase Rs.5,00,000 , closing stock is Show Answer

Q107) opening stock Rs.1,00,000 .Sales Rs.5,00,000 , gross profit @ 25 % on cost ,purchase Rs.6,00,000 , closing stock is Show Answer

Q108) Cost of goods sold Rs.6,69,600 , sales Rs.7,44,000.Closing stock Rs.50,400 . The gross profit for the year ending on 31.03.2002 is Show Answer

Q109) stock (1.4.2001) Rs.40,000 , purchase Rs.3,60,000 , stock (31.3.2002) Rs.1,30,000 ,sales Rs.3,80,000 ,carriage inwards Rs.6,000 , freight inwards Rs.6,000 ,wages & salaries Rs.50,000.return inward Rs.20,000 , return outward Rs.40,000 .The market value of stock as on 31.03.2002 was Rs.1,20,000 . the gross profit for the year ending on 31.03.2002 is Show Answer

Q110) Opening stock Rs.90,000 ,credit purchase Rs.6,00,000 ,cash purchase Rs.30,000 , credit sales Rs.7,20,000, cash sales Rs.36,000 ,carriage inwards Rs.1,200 , freight inwards Rs.1,800 ,wages & salaries Rs.2,400.return inward Rs.12,000 , return outward Rs.6,000, cartage inward Rs.600 , cost of closing stock as on 31st March Rs.54,000 . but The market value of stock as on 31.03.2002 was Rs.50,400,Freight outward Rs.600 . the gross profit for the year ending on 31.03.2002 is Show Answer

Q111) Adjusted purchase Rs.6,63,600, sales Rs.7,44,000, closing stock Rs.50,400, freight & cartage inward Rs.3,600, wages Rs.2,400, ,freight & cartage outward Rs.1,800,the gross profit for the year ended 31.3.2002 is Show Answer

Q112) Sales Rs.1,00,000 cost of goods sold Rs.80,000 , closing stock Rs.10,000, freight inwards Rs.1,000 ,freight outward Rs.3,000 , operating expenses Rs.5,000 .. the operating profit is Show Answer

Q113) Goodwill is Show Answer

Q114) A debit to an account may Show Answer

Q115) Gross profit is the difference between: Show Answer

Q116) Payment made to a creditor subject to cash discount will : Show Answer

Q117) A customer returns goods already charged to him. We should: Show Answer

Q118) Capital is the difference between Show Answer

Q119) The capital of a sole trader would change as a result of: Show Answer