Financial 2y44q

F.Y.B.Com Sem 1 Financial ing – 1 Multiple Choice Questions:Unit – 1 ing Concepts, Conventions Principles & ing Standards 1

ing for Intangible Assets are related to – (a) AS-10 (b) AS-12 (c) AS-24 (d) AS-26

2

Indian ing Standard – 28 is related to (a) ing for taxes on income (b) Financial Reporting of Interests in t Venture (c) Impairment of Assets (d) Provisions, Contingent Liabilities and Continengent Assets

3

Why are ing Standard important ? (a) For making financial statements (b) For correct valuation of inventories (c) For correct treatment of depreciation and lease and investment. (d) All of above

4

ing standards in India are issued by(a) Central Government (b) State Government (c) The institute of Chartered ants of India (d) Reserve Bank of India

5

ing Standards(a) Harmonise ing policies (b) Eliminate the non-comparability of financial statements (c) Improve the reliability of financial statement (d) All of the above

6

ing for Fixed Assets are related to – (a) AS-10 (b) AS-12 (c) AS-24 (d) AS-26

7

Disclosure of ing policies are related to – (a) AS-1 (b) AS-2 (c) AS-3

(d) AS-4 8

ing for Amalgamation are related to – (a) AS-1 (b) AS-12 (c) AS-13 (d) AS-14

9

ing for Investments are related to(a) AS-1 (b) AS-12 (c) AS-13 (d) AS-14

10

ing for revenue recognition are related to – (a) AS-8 (b) AS-9 (c) AS-23 (d) AS-10

11

When an owner withdraw goods, it is debited to his drawing because of (a) Continuity concept (b) Conservatism (c) Entity concept (d) None of the above

12

Sale income is said to be realized when(a) Goods are sold (b) Cash is received (c) Production is completed (d) None of the above

13

Work in Progress is valued on the basis of cost incurred because of principle of – (a) Conservatism (b) Realisation (c) Going Concern (d) None of the above

14

Fees not received is not treated as income in case of Chartered ants because of – (a) Concept of objectivity (b) Realisation (c) Cost Concept (d) All of the above

15

Fixed Assets are not shown at their realizable value in s because of –

(a) (b) (c) (d)

Concept of Objectivity Matching cost Going Concern None of the above

16

Why are the total of two sides of the balance sheet equal ? (a) Cost Concept (b) Dual aspect concept (c) Entity concept (d) All of the above

17

Pre-received income is deducted from income in the current year’s P&L , the underlying assumption being(a) Matching cost against revenue (b) Conservatism (c) Realisation (d) None of the above

18

In business purchase should not be recorded without its voucher because it is violative of the principle of – (a) Cost (b) Consistency (c) Objectivity (d) None of the above

19

Bank credits income of doubtful interest to Interest Suspense because of – (a) Concept of Conservatism (b) Objectivity (c) Consistency (d) None of the above

20

The revenue from gold is recorded in the books, as soon as its production is complete, because of principle of – (a) Conservatism (b) Realisation (c) Objectivity (d) None of the above

21

The concept of be made is:(a) Realisation (b) Periodicity (c) Conservatism (d) All of the above

suggests that provision for loss against claim accepted must

22

Change in the value of Fixed Assets are not recorded in s because of principle of – (a) Conservatism (b) Objectivity (c) Going Concern (d) None of the above

23

Entries are made in s on the basis of ing vouchers(a) Realisation Concept (b) Objecctivity (c) Conservatism (d) None of the above

24

Commission on sale is debited to Profit and Loss in the year in which sale is effected because of – (a) Concept of conservatism (b) Matching cost with revenue (c) Realisation concept (d) None of the above

25

In the trading , sales is written on credit side and on the opposite side purchases and purchase expenses are shown. What is the principle involved(a) Concept of conservatism (b) Matching cost with revenue (c) Realisation concept (d) None of the above

SEM – 1 FINANCIAL S MULTIPLE CHOICE QUESTIONS CONSIGNMENT S

1. In relation to consignment s – (A) Consignor sends ‘ Sale’ to consignee; (B) Debtors sends ‘ Sale’ to consignor; (C) Consignee sends ‘ Sale’ to consignor; (D) Consignee sends ‘ Sale’ to consignor. 2. Which of the following items is not included in the ‘ Sale?’ (A) Goods sold by consignee (B) Expenses of consignment incurred by consignee (C) Claim paid by insurance company (D) Advance against consignment paid to consignee

3. In case of ‘del-credere’ commission being allowed to consignee, any bad-debt in consignment business, following entry will be ed; (A) Consignor’s shall be debited (B) Debtor’s shall be debited (C) Commission shall be debited (D) Consignor’s shall be credited 4. When Consignment is prepared at Invoice price, the profit element included in the closing stock valued at invoice price shall be – (A) Debited to ‘Goods sent on consignment ’ (B) Debited to ‘Consignee ’ (C) Credited to’Consignment Stock Reserve ’ (D) Debited to ‘Consignment Stock Reserve ’ 5. If market price of closing stock is also known while preparing Consignment – (A) Closing stock will be valued at cost (B) Closing stock will be valued at market price (C) Closing stock is to be valued at cost or market price, whichever is lower (D) Closing stock is to be valued at cost or market price, whichever is higher 6. A of Ahmedabad consigned goods of Rs. 20,000 to B of Baroda and pays Rs. 2,000 for expenses. Goods worth Rs. 4,000 was burnt in transit and the insurance company accepted a claim of Rs. 3,000, then abnormal loss is; (A) Rs 1400 (B) Rs 1000 (C) Rs 4000 (D) Nothing 7. A of Anand consigned goods of Rs 40,000 to G of Gondal and paid Rs 2,000 for expenses. The consignee paid Rs 400 for freight and Rs 200 for octroi, 80% of goods was sold and commission of Rs 2,000 was paid, then the value of closing stock is Rs….. (A) Rs 8400 (B) Rs 8,520 (C) Rs 8,000 (D) Rs 10,400 8. The abnormal loss of Rs 80,000 occurred in consignment business, the insurance company accepted 60% claim. The abnormal loss is – (A) Rs 80,000 (B) Rs 40,000 (C) Rs 32,000 (D) Nothing 9. The abnormal loss is debited to following s; (A) Consigment (B) General Profit and Loss A/c (C) Consignee (D) Insurance company 10. Consignee received del credere commission, sold goods worth Rs 40,000 on credit. Out of it one debtor of Rs 1,000 became bankrupt, 25 paisa in a rupee is received from him. Then in the books of consignee bad debts is recorded as – (A) 750 (B) 250 (C) 1100 (D) Nothng 11. Babu consigned 3,000 litres of oil to Mamu at the rate of Rs 50 per litre, and paid expenses of Rs 21,000. Due to evaporation there was a loss of 150 litres. Consignee sold 2550 litres at the rate of Rs 75 per litre. What will be the value of Closing stock? (A) Rs 15000 (B) Rs 15600 (C) Rs 17100 (D) Rs 18000

SEM 1 B.COM Financial ing-1

Objective Questions Unit 2 t Venture s 1. Which of the following s is not to be opened in case of separate books for t venture business are kept? (a) t Venture (b) t Bank (c) Partner’s Capital (d) Memorandum t Venture 2. Which of the following s is not opened under t Venture s:(a) Stock Reserve (b) t Bank (c) Other Partner’s (d) t Venture 3. Closing Stock of t Venture business:(a) Shall be valued at cost (b) Shall be valued at its original price (c) Shall be valued at lower of cost or original price (d) None of these 4. Bonds of Rs. 3,00,000 are received against work done in t venture business and they are sold for Rs. 2,70,000, then Rs………… is recorded on debit side of t Venture A/c. (a) Nothing (b) Rs. 3,00,000 (c) Rs. 30,000 (d) Rs. 2,70,000 5. P and Q are partners sharing profit and loss in the proportion 2:1 in the t Venture. P keeps s of t venture. Q gave Rs. 5,000 to P for t venture business. P Prepared s and showed profit of Rs. 2,250. P settled Q’s . In the books of Q, Rs. …………. Profit is credited. (a) Rs. 2,250 (b) Rs. 750 (c) Rs. 1,500 (d) Rs. 5,750 6. Following activities are appropriate for t venture business: (a) Construction of a river bridge (b) Cloth Shop

(c) Medical Shop (d) ACC Cement Agency 7. Abnormal loss of t Venture is debited to the following : (a) t Venture (b) Insurance Company (c) General Profit And Loss (d) No 8. In t venture of selling old cars, if one car is given as a gift to a customer, the following is debited: (a) t Venture (b) Profit and Loss (c) Abnormal Loss (d) No 9. C and D entered into t venture. D gives Rs. 50,000 to C. To which this transaction will be recorded in the books of D ? (a) No Entry (b) Expense (c) t Venture (d) C’s 10. A and B entered into t Venture. A gives Rs.60,000 to B. To which this transaction will be recoreded in the books of A ? (a) t Venture (b) B’s (c) Expense A/c (d) None of these 11. Normal loss of goods in t Venture is debited to :(a) General P&L A/c (b) t Venture A/c (c) Not debit to any A/c (d) None of the above 12. Sale of t Venture goods by an agent is debited to :(a) t Venture A/c (b) Agent’s A/c (c) t Bank A/c (d) None of the above 13. t Venture is a ………

(a) Personal A/c (b) Nominal A/c (c) Real A/c (d) Memorandum A/c 14. Which of this is not a feature of a t Venture:(a) Continuing Business (b) No Firm Name (c) Partners called co-venturer (d) Partnership for limited purpose 15. Which of the following statement is correct:(a) A minor cannot be a co- venturer as he is incompetent to contract (b) A minor can be a co- venturer as he is competent to contract (c) Both of the above (d) None of the above

BRANCH S 1. When Branch pays expenses for H.O. the following is debited in the books of the branch – (A) Expenses is debited (B) H.O. a/c is debited (C) Branch is debited(D) None 2. Under the stock and debtor system, Branch A/c is treated as – (A) t a/c (B) Nominal a/c (C) Personal a/c (D) Real a/c 3. When Branch assets a/c is kept in the books of H.O.,the H.O. will debit following a/c for its depreciation(A) Branch P & L a/c (B) Depreciation a/c (C) Branch a/c (D) None 4. Goods are sent to branch at cost plus 20% .If closing stock of the branch is Rs 60,000 at invoice price , Rs will be credited to stock reserve a/c. (A) Rs 10000 (B) Rs 12000 (C) Rs 6000 (D) Rs 12600 5. HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profit on cost comes to – (A) 15% (B) 25% (C) 33.33% (D) 20% 6. HO sends goods to branch at invoice price after adding 25% on cost price, so profit would be % of invoice price (A) 33.33% (B) 40% (C) 20% (D) 25% 7. For finding the amount of sundry expenses paid by the branch, the following a/c should be prepared. (A) Computer a/c (B) Creditors (C) Petty cash a/c (D) Debtors

8. If the opening balance of petty cash is Rs 1000 , closing balance is Rs 500 and the petty cash received from HO is Rs 700 , then what will be the amount of sundry expenses(A) Rs 1200 (B) Rs 800 (C) Rs 700 (D) Rs 500 9. HO sent Rs 5000 as petty cash to branch during the year. Opening and closing balances of petty cash was Rs 1400 and Rs 400 respectively. Then petty expenses of the branch during the year will be(A) Rs 5000 (B) Rs 6400 (C) Rs 4600 (D) Rs 6000 10. The balance of an assets a/c on 1-4-16 was Rs 1,90,000 which was sent to the branch on 1-10-15. On 31-3-2017 depreciation was charged on this asset at 10% p.a on SLM. On 31-3-17 the written down value of this asset in the books of the branch would be(A) Rs 170000 (B) Rs 190000 (C) Rs 175000 (D) Rs 185000 Hint : Suppose price of asset on 1-10-15 after depreciation is Rs 100- 6 months dep Rs 5 = Rs 95 value of asset after dep on 31-3-16; Cost price of asset is Rs 200000 ( 95:190000 : 100) Value on 1-4-16 , 190000 – dep 20000 (SLM) Rs 170000 after depreciation. 11. Which of the following branches, taking into consideration the scope of authority and responsibility, prepares its own independent final s? (A) Independent Branch (B) Foreign Branch (C) Dependent branch (D) Independent and Foreign branch both. 12. Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closing balance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors? (A) Rs 10,24,000 (B) Rs 8,84,000 (C) Rs 11, 52,000 (D) Rs 8,42,000 13. Goods in transit are shown in the balance sheet at – (A) Head office (B) Branch (C) Both (D) None of above 14. HO has sent goods on invoice price worth Rs 2,40,000 which are 25% above cost price. What is the loading element? (A) Rs 60000 (B) Rs 240000 (C) Rs 48000 (D) Rs 160000 15. If the opening and closing balance of debtors a/c is Rs 50,000 and Rs 40,000 respectively, cash received from debtors Rs 1,10,000 and bad debts are Rs 4,000 then what will be the amount of credit sales? (A) Rs 110000 (B) Rs 100000 (C) Rs 102000 (D) Rs 104000 16. During the year branch has incurred petty cash expenses of Rs 20,000. In the beginning of the year balance of petty cash was Rs 6,000 and at the end of the year balance is Rs 600. How much amount HO had send to branch for petty cash? (A) Rs 13800 (B) Rs 14600 (C) Rs 15300 (D) Rs 12900 17. Which of the following is correct? (A) Dependent branch prepares complete set of books of s (B) Dependent branch prepares its own balance sheet (C) An independent branch maintains all books of s and prepares its final s (D) None of the above

18. The adjusting entry for difference between the invoice price and cost price of goods are shown in(A) Balance sheet (B) P & L a/c (C) Branch adjustment a/c (D) None of above 19. Stock and debtors system is generally used when goods are sent to the branch at – (A) Cost price (B) Invoice price (C) Both (D) None 20. Furniture of Rs 2,00,000 was sent to branch on 1-7-15. What will be the Depreciation on Furniture in the books of branch at 15% p.a. by SLM as on 31-3-16? (A) Rs 22500 (B) Rs 20500 (C) Rs 21500 (D) Rs 23500 21. HO sent goods to branch at invoice price 50% plus on original price. How many percentage of profit will be on Invoice price? (A) 20% (B) 25% (C) 33.33% (D) 16.67% 22. Goods sent by HO but not received by branch before the end of the year, by debiting it to goods in transit, which should be credited? (A) Cash a/c (B) HO a/c (C) Trading a/c (D) Branch a/c 23. HO sent Rs 12,000 of petty cash to branch during the year. Opening and closing balance s of Petty cash a/c was Rs 3,400 and Rs 2,400 respectively. Them petty cash expenses of the branch during the year will be – (A) Rs 12000 (B) Rs 13000 (C) Rs 11000 (D) Rs 14000 24. The balance of Furniture a/c on 1-4-16 was Rs 36,000, which was sent to the branch on110-15. On 31-3-17 depreciation was charged on furniture at 12% on SLM. On 31-3-17 the written down value of this furniture in books of branch would be(A) Rs 32800 (B) Rs 30900 (C) Rs 31750 (D) Rs 33900 25. If the opening balance of debtors is Rs 16,000 and closing balance is Rs 80,000, cash received from debtors is Rs 35,000 and bad debts is Rs 1,000, then what will be the amount of credit sales? (A) Rs 95000 (B) Rs 105000 (C) Rs 100000 (D) Rs 110000 F.Y.B.Com Sem 1 Financial ing Multiple Choice Questions:Unit-4 s from Incomplete Records 1. Debtors is prepared to find out(a) The amount of B/R accepted by the Debtors (b) The amount paid against the Bills Payable (c) The amount of B/P accepted (d) Amount of Bills receivable dishonoured 2. When B/R endorsed to creditors is dishonoured(a) Debtors A/c is debited and Creditors A/c is credited (b) Creditor A/c is debited and Debtors A/c is credited (c) B/R A/c is debited and Creditors A/c is credited

(d) Creditors A/c is debited and B/R A/c is credited 3. In popular single entry, following books are kept(a) Only cash book (b) Purchase and Sale Book (c) All Ledger in Ledger (d) All Subsidiary books 4. Effects of dishnour of B/R is given – (a) Only in the B/R A/c (b) In debtor A/c and B/R (c) Only in the Debtor A/c (d) Only in the B/P A/c 5. Creditors is prepared to find out the(a) Amount of Bills Payable (b) Amount of Bills Receivable (c) Amount of B/R dishnoured (d) Amount received against B/R 6. Which equation is not correct from the following equation – (a) COGS= Opening Stock+Purchase-Closing Stock (b) Closing stock= Opening Stock+Purchase-Cost of goods sold (c) Opening Stock= Closing stock+Purchase- Cost of goods sold (d) Purchases= Closing stock + Cost of Goods sold – Opening stock 7. Cash purchases Rs. 60,000, Credit Sales Rs. 3,52,000, Cash Sales Rs. 80,000, Closing Stock is Rs. 30,000, Opening Stock is Rs. 50,000, Rate of gross profit on cost is 20%, then credit purchases are:(a) 2,54,400 (b) 2,80,000 (c) 3,52,000 (d) 2,65,800 8. Generally depreciation on fixed assets is calculated on which balance? (a) Opening (b) Closing (c) Only on additional (d) Amount realized on asset sold 9. Following particulars are obtained from the books of a firm:Opening Stock Rs.20,000, Purchases Rs. 1,20,000, Closing Stock Rs.60,000, Gross Profit on sales is 20% . Then the amount of sales is(a) Rs. 80,000 (b) Rs.1,00,000 (c) Rs.1,40,000

(d) Rs.1,80,000 10. Interest on capital is calculated on which capital(a) Opening Capital (b) Closing Capital (c) Closing Stock (d) Opening Stock 11. What does it mean if machinery closing amount is less than opening amount(a) Sale (b) Purchase (c) Fraud (d) Theft 12. To find out profit as per Single Entry System_ (a) Bills payable a/c is to be prepared (b) Bills receivable a/c is to be prepared (c) Profit and Loss a/c is to be prepared (d) Stock a/c or Trading a/c is to be prepared 13. Opening stock of Rs. 20,000, Purchaes Rs.1,20,000, Closing Stock rs, 60,000, Gross Profit on sales is 20%. Then the amount of sales is – (a) Rs. 80,000 (b) Rs. 1,40,000 (c) Rs. 1,80,000 (d) Rs. 1,00,000 14. Which is prepared to know cash purchase or cash sales ? (a) Trading (b) Debtor’s (c) Creditor’s (d) Cash A/c 15. For finding credit sales, Which is prepared? (a) Debtor’s A/c (b) P & L A/c (c) Creditors A/c (d) Receipt & Payment A/c 16. Find out credit purchases:Cash Purchase Rs.5,000 , Cash Sales Rs. 12,000, Credit Sale Rs, 18,000, Closing Stock Rs. 3,500, Opening Stock Rs. 2,750, Rate of Gross Profit is 20% on Cost. (a) Rs. 21,000 (b) Rs. 20,750 (c) Rs. 20,250 (d) Rs. 21,750

17. A Single Entry System is – (a) Complete and scientific system (b) Incomplete and unscientific (c) Incomplete and scientific (d) Complete and unscientific 18. If the rate of G.P. on sale is 20% and cost of goods sold is Rs. 2,00,000, then amount of G.P. will be equal to – (a) Rs. 40,000 (b) Rs. 50,000 (c) Rs. 70,000 (d) Rs. 30,000 19. Bad debts written off always affected the(a) Debtors A/c (b) Creditor A/c (c) Cash A/c (d) None of these 20. Single entry system of book keeping is generally followed by – (a) Small business (b) Non-trading (c) Large Business (d) None of these 21. Single entry system cannot be maintained by – (a) t Stock Company (b) Partnership A/c (c) Sole tradership A/c (d) All of these 22. What is the value of sundry debtor at the end of the yearSundry Debtor (1.4.2015) 17,425 Credit Sale 60,075 Cash received from Sundry Debtors 49,200 Sales Return 3,700 Discount Allowed 4,300 Cash Sales 12,000 (a) 24,000 (b) 17,400 (c) 20,300 (d) 25,000 23. What is the value of sundry creditor at the end of the yearOpening Sundry Creditor 19,000

Cash paid to Sundry creditors Discount received Return outwards Credit purchases (a) 24,400 (b) 25,400 (c) 23,400 (d) 30,200

40,000 1,000 4,800 51,200

24. Which is the odd from the following s in context to debit balance or credit balance? (a) Creditors (b) Bills Receivable (c) Cash (d) Debtors 25. Which is the odd from the following s in context to debit balance or credit balance? (a) Bills Payable (b) Creditors (c) Bills Receivable (d) Capital