Thirty questions for thirty minutes only.

Maintain the time.

1. Which of the following is not the main objective of the accounting?
a. Do record the financial transaction as and when they occur
b. Do proper planning to execute the decision
c. Use the resources for personal need whenever it required
d. Measure the performance time to time
e. Check the position of the business from your competitor.
2. Which of the following/s Concept/s fall under the balance sheet?
I. The Cost Concept
II. The Matching Concept
III. The Dual-Aspect Concept
IV. The Consistency Concept
V. The Conservatism Concept
a. I
b. I & III
c. All the above
d. I,III and IV
e. Only V
3. Which of the following/s Concept/s fall under the profit and loss account?
I. The Accounting Period Concept
II. Accrual Principle
III. The Materiality Concept
IV. Full disclosure principle t
V. The Conservatism Concept
a. I
b. I & III
c. All the above
d. I,III and IV
e. Only V
4. Which of the following statement is correct for “The Money Measurement?”
a. Every transaction has dual aspect and explains that Capital + Outside liability = Assets.
b. All transactions are generally recorded at cost and not at market value.
c. All the revenues must be matched with the expenses.
d. It explains that in financial accountancy, a record is made only of information that can be
expressed in monetary terms and ignores other events, however significant they may be.
e. Accounting policies are consistent from one period to another.
5. Which of the following statement is correct for “The Realization Concept?”
a. All financial transactions need to be recorded in the books of accounts and the insignificant
events need not be recorded.
b. It explains that the resources of the concern would continue to be used for the purposes for
which they are meant to be used.
c. Accounting is a historical record of transactions and unless money has been realized – either
cash has been received or a legal obligation to pay has been assumed by the customer – no
sale can be said to have taken place and no profit can be said to have arisen.
d. It gives all additional information attached to the financial statements of a business, usually as
explanation for activities which have significantly influenced its financial results.
e. It anticipates no profit and provide for all possible losses.
6. Mohan is a manager of an office and he purchased furniture for office use for cash amount of INR
2000. You send the bill to accountant to make the entry. Which one of the entry is correct?
a. Debit Office account and credit Furniture Account (for amount INR 2000)
b. Debit Furniture Account and credit Office account (for amount INR 2000)
c. Debit Furniture Account and credit cash account (for amount INR 2000)
d. Debit Mohan Account and credit cash account (for amount INR 2000)
e. Debit Furniture Account and credit Mohan account (for amount INR 2000)
7. Which of the following is not nominal account:
a. Wages paid
b. Postages and telegrams amount paid
c. Salaries paid
d. Rent paid
e. Sum amount paid to Mr. Rama
8. You are required to post a journal entry: Goods sold to Kamal for INR 10000
9. You are required to post a journal entry: INR 2000 deposited into bank
10. You are required to complete the balance of the following ledger entries and which is not correct:
a. AAA = INR 20000
b. BBB = INR 32000
c. CCC = INR 20000
d. DDD = INR 32000
e. CCC = INR 32000

Dr. Cr.
Date Particulars JF No. INR Date Particulars JF No. INR
Jan. 2 To XYZ a/c 30,000 Jan.13 By ABC 12,000
Jan. 3 To Cash a/c 1,000 Jan.31 By Balance c/d AAA
Jan.22 To Cash a/c 1,000
BBB CCC
Feb. 1 To Balance b/d DDD
11. See the following table and prepare a trial balance:

Particulars INR Dr. Cr.

Capital 2,50,000
Inventory (on April 1, 2019) 60,000
Accounts receivable 1,00,000
Accounts payable 70,000
Sales 6,00,000
Purchases 3,70,000
Sales returns 20,000
Purchase returns 10,000
Discount received 10,000
Bills payable 40,000
Rent received 10,000
Insurance 30,000
Land and Buildings 1,50,000
Freehold property 50,000
Plant and Machinery 50,000
Petty expenses 6,000
Cash at bank 20,000
Furniture 30,000
Freight 20,000
Wages 15,000
Salaries 15,000
Advertising 10,000
Postage and Telephones 10,000
General expenses 34,000
Total 19,80,000 9,90,000 9,90,000
 Questions for Practice for section G
Note: One question one minute
1. Which of the following is not a fixed asset?
a. Building.
b. Bank balance.
c. Plant.
d. Patents.
e. Goodwill.
2. Recording of capital contributed by the owner as liability ensures the adherence of principle
of
a. Double entry
b. Going concern
c. Separate entity
d. Materiality
e. Consistency.
3. As per the double entry concept
a. Assets + Liabilities = Capital
b. Capital = Assets – Liabilities
c. Capital – Liabilities = Assets
d. Capital + Assets = Liabilities
e. None of the above.
4. P&L account is prepared for a period of one year by following
a. Consistency concept
b. Conservatism concept
c. Time period concept
d. Cost concept
e. None of the above.
5. Accounting does not record non-financial transactions because of
a. Entity concept
b. Accrual concept
c. Cost concept
d. Money Measurement concept
e. Continuity concept.
6. Provision for bad debt is made as per the
a. Entity concept
b. Conservatism concept
c. Cost concept
d. Going concern concept
e. Time period concept.
7. Fixed assets and current assets are categorized as per concept of
a. Separate entity
b. Going concern
c. Contingency
d. Consistency
e. Time period.
8. Capital is shown under liabilities because of the
a. Conservatism concept
b. Accrual concept
c. Entity concept
d. Revenue recognition concept
e. Matching concept.
9. Which of the following is an example of capital expenditure?
a. Insurance premium.
b. Taxes and legal expenses.
c. Depreciation on machinery.
d. Discount allowed.
e. Customs duty on import of machinery.
10. Which of the following is an example of personal account?
a. Machinery.
b. Rent.
c. Cash.
d. Creditor.
e. Salary.
11. Payment received from debtor
a. Decreases the total assets
b. Increases the total assets
c. Results in no change in the total assets
d. Increases the total liabilities
e. Decreases the total liabilities.
12. Cash purchases
a. Increases assets
b. Results in no change in the total assets
c. Decreases assets
d. Increases liability
e. Decrease liability.
13. Journal is a
a. Book of original entry
b. Classified summary of all transactions
c. Permanent record
d. Both (a) and (b) above
e. None of the above.
14. Goods returned from X is entered as
a. Debit X a/c; Credit purchase returns a/c
b. Debit X a/c; Credit cash a/c
c. Debit sales return a/c; Credit X a/c
d. Debit X a/c; Credit sales a/c
e. Debit sales a/c; Credit X’s a/c.
15. When fixed assets are sold
a. The total assets will increase
b. The total liabilities will increase
c. The total assets will decrease
d. There is no change in the total assets
e. The liabilities will decrease.
16. Purchase of goods for cash from Rasheed is to be recorded by:
a. Debiting purchases account and crediting Rasheed Account
b. Debiting cash account and crediting Rasheed account
c. Debiting purchases account and crediting cash account
d. Debiting Rasheed account and crediting cash account
e. Debiting cash account and crediting purchases account.
17. Purchase of goods on credit
a. Increases liabilities
b. Increases assets
c. Increases both assets and liabilities
d. Decreases assets
e. Decreases liabilities.
18. Which of the following is not an asset?
a. Stock of stationery
b. Goodwill
c. Profit and loss account (credit balance)
d. Accounts Receivable
e. Cash at bank.
19. The entry to record the collection of cash from sundry debtors would involve a
i. Debit to sundry debtors
ii. Debit to cash account
iii. Credit to sundry debtors
iv. Credit to cash account.
a. Only (i) above
b. Only (ii) above
c. Only (iii) above
d. Both (ii) and (iii) above
e. Both (i) and (iv) above.
20. Double entry bookkeeping involves
a. Two accounts being affected for each transaction which are equal and opposite to
one another
b. Two sets of books being kept for the business
c. Business bookkeeping being kept by more than one person
d. Every entry in the business books being checked twice
e. Every transaction is recorded once in the journal and again in the ledger.