Class/Course - CA - CPC

Subject - Fundamentals of Accounting

Total Number of Question/s - 4416


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  • 1. Meaning and Scope of Accounting - Quiz

    1. At the end of the financial year after sale of goods worth Rs. 2,00,000 there was a closing stock of Rs. 10,000. This is:
    a) An event
    b) A transaction
    c) Both event as well as transactions
    d) None of these
    2. At the end of the financial year, Mr. X earns a profit of Rs.57,000 in his business. This is
    a) A transaction
    b) An event
    c) A transaction as well as an event
    d) Neither a transaction nor an event
  • 2. Accounting Concepts, Principles and Conventions - Quiz

    1. Omission of paise and showing the round figures in financial statements is based on :
    a) Conservatism concept
    b) Consistency concept
    c) Materiality concept
    d) Realization concept
    2. A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:

    (i). The cost of an assets Rs. 25,000 has been taken as en expense.
    (ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.
    (iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.
    (iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.

    Which concept should be followed in the statement (ii)?
    a) Conservatism
    b) Materiality
    c) Historical cost
    d) Accrual
  • 3. Accounting as a Measurment Discipline - Quiz

    1. Measurement discipline deals with:
    a) Identification of objects and events.
    b) Selection of scale.
    c) Evaluation of dimension of measurement scale.
    d) All of the above.
    2. Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2001. On 31st March, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.

    The present value of machinery is 
    a) Rs. 10,00,000.
    b) Rs.20,00,000.
    c) Rs.15,00,000.
    d) Rs.12,00,000.
  • 4. Accounting Policies - Quiz

    1. Accounting principles and policies are to be standardised to achieve:
    a) Transparency
    b) Consistency
    c) Comparability
    d) All of theses
    2. Accounting policies:
    a) Are prescribed by AS 1
    b) Are laid down by Law
    c) Are same for all concerns
    d) Changing from concern to concern
  • 5. Accounting Standards - Quiz

    1. It is essential to standardize the accounting principles and policies in order to ensure
    a) Transparency.
    b) Consistency.
    c) Comparability.
    d) All of the above.
    2. IASB stands for:
    a) Indian Accounting Standards Board
    b) Indian accounting Standards Bulletin
    c) International Accounting Standards Bulletin
    d) International Accounting standards Boards
  • 6. Journal Entries - Quiz

    1. Journal records the transactions of the firm in a :
    a) Analytical manner
    b) Chronological manner
    c) Periodical manner
    d) Summarized manner
    2. Discount is allowed by Arun to Varun. Which of the following should be the course of action in the books of Arun?
    a) Credit Varun A/c and debit Discount Allowed A/c
    b) Debit Varun A/c and credit Discount Received A/c
    c) Credit Arun A/c and debit discount Allowed A/c
    d) Debit Arun A/c and credit discount Received A/c
  • 7. Ledgers - Quiz

    1. Which of the following statement is correct?
    a) All Entries except cash transactions can be recorded through journal.
    b) Ledger is a part of subsidiary book.
    c) Purchase book records all the purchases whether cash or credit.
    d) Bank column of cash book always has debit balance.
    2. Which of these Account is Debited:
    a) Income received in advance
    b) Bank Loan
    c) Prepaid Insurance Premium
    d) Reserve for doubtful debts
  • 8. Trial Balance - Quiz

    1. Bhandari’s trial balance was showing difference of Rs. 5,000 (debit side exceeds). While checking of total sales register, he found that the total is overcast by Rs. 2,000. After correction in sales register what would be the difference in his trial balance.
    a) Debit side exceeds by Rs. 7,000
    b) Debit side exceeds by Rs. 5,000
    c) Debit side exceeds by Rs. 3,000
    d) Credit side exceeds by Rs. 3,000
    2. A list which contains balances of accounts to know whether the debit and credit balances are matched.
    a) Balance sheet
    b) Day Book
    c) Journal
    d) Trial balance
  • 9. Subsidiary Books - Quiz

    1. Total of the Purchase Return Book is posted to the ______ side of Purchase Return Account in the ledger:
    a) Debit
    b) Credit
    c) No where
    d) None of these.
    2. Total of Sales Book will be posted :
    a) In Debit side of Sales Account
    b) In Credit side of purchases account
    c) In Credit side of Sales Account
    d) In Debit side of Sales return account
  • 10. Capital and Revenue Expenditures and Receipts - Quiz

    1. Revenue Expenditure wrongly recorded as Capital Expenditure will result in:
    a) Overstatement of net profit and understatement of assets
    b) Overstatement of net profit and overstatement of assets
    c) Understatement of net profit and overstatement of assets
    d) Understatement of net profit and understatement of assets
    2. Medium term loan obtained from bank for augmenting working capital is:
    a) Revenue Expenditure
    b) Capital Expenditure
    c) Revenue Receipt
    d) Capital Receipt
  • 11. Cash Book - Quiz

    1. Which of the following is the kind of a cash book?
    a) Simple column cash book
    b) Double-column cash book
    c) Three-column cash book
    d) All of the above
    2. Cash book is a form of :
    a) Trial Balance
    b) Ledger
    c) Journal
    d) All of the above
  • 12. Contingent Assets and Contingent Liabilities - Quiz

    1. In the financial statement, contingent liability is
    a) Recognised
    b) Not recognised
    c) Adjusted.
    d) None of the above
    2. If an inflow of economic benefits is probable then a contingent asset is disclosed
    a) In the financial statements.
    b) In the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).
    c) In the cash flow statement.
    d) None of the above.
  • 13. Sale of Goods on Approval or Return Basis - Quiz

    1. A sent some goods costing Rs. 3500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs. 800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at:
    a) Rs. 2,000
    b) Rs. 2,700
    c) Rs. 2,700 less 25% of 2,700
    d) Rs. 3,500
    2. On 31st December, 2011 goods sold at a sale price of Rs. 30,000 were lying with customer, Mohan to whom these goods were sold on ‘approval or return basis’ and recorded as actual sales. Since no consent was received from Mohan, the adjustment entry was made presuming goods were sent on approval at a profit of cost plus 20%. In the balance sheet, the Inventories with customer account will be shown at Rs.
    a) 30,000.
    b) 24,000.
    c) 20,000.
    d) 25,000.
  • 14. Rectification of Errors - Quiz

    1. Sale of old furniture is wrongly transferred to Sales Account. Which type of error is this ?
    a) Error of Principle
    b) Compensating Error
    c) Error of Omission
    d) Error of Commission
    2. If a purchase return of Rs. 84 has been wrongly posted to the debit of the sales return account, but had been correctly entered in the suppliers account, the total of the trial balance would show:
    a) The credit side to be Rs. 84 more than debit side.
    b) The debit side to be Rs. 84 more than credit side.
    c) The credit side to be Rs. 168 more than debit side.
    d) The debit side to be Rs. 168 more than credit side.
  • 15. Bank Recouncilation Statement - Quiz

    1. When balance as per Cash Book is the starting point, uncollected cheques are:
    a) Added in the bank reconciliation statement
    b) Subtracted in the bank reconciliation statement
    c) Not required to be adjusted in the bank reconciliation statement
    d) Neither of the above.
    2. When the balance as per Pass Book is the starting point, uncollected cheques are:
    a) Added in the bank reconciliation statement
    b) Subtracted in the bank reconciliation statement
    c) Not required to be adjusted in the bank reconciliation statement.
    d) Neither of the above.
  • 16. Inventories - Quiz

    1.

    		As on 1st March As on 31st March 
    Stock Rs. 1,80,000Rs. 1,00,000

    The company made purchase of Rs. 3,40,000 on credit. During March, the company paid Rs. 3,50,000 to suppliers. The goods are sold at 25% above cost. The Sales for the month of March were:
    a) Rs. 4,12,500
    b) Rs. 90,000
    c) Rs. 5,25,000
    d) Rs. 3,15,000
    2. Which of the following is an exception to Non-historical cost method of valuation?
    a) Standard Cost
    b) Adjusted Selling Price
    c) Latest Purchased price
    d) Weighted Average price
  • 17. Depreciation Accounting - Quiz

    1. A new machine costing Rs. 1 lakh was purchased by a company to manufacture a special product. Its useful life is estimated to be 5 years and scarp value at Rs. 10,000. The production plan for the next 5 years using the above machine is as follows :
    Year 1  5000 units
    Year 2  10000 units
    Year 3  12000 units
    Year 3  12000 units
    Year 4  20000 units
    Year 5  25000 units
    The depreciation expenditure for the 2nd year under units of production method will be
    a) Rs. 6,250
    b) Rs. 12,500
    c) Rs. 15,000
    d) Rs. 25,000
    2. Cost of Machine Rs. 1, 00,000 scrap value Rs. 10,000 and life is 4 years. What will be amount of depreciation according to sum of years digits method in the 3rd year?
    a) Rs. 40,000
    b) Rs. 27,000
    c) Rs. 9,000
    d) Rs. 18,000
  • 18. Final Accounts - Quiz

    1. Fixed assets are
    a) Kept in the business for use over a long time for earning income
    b) Meant for resale
    c) Meant for conversion into cash as quickly as possible
    d) All of the above
    2. Opening balance of debtors is Rs. 35,000 Cash Received from Debtors is Rs. 30,000 Cash sales is Rs. 20,000 which is 20% of total sales. B/R Received for Rs. 40,000 and discount allowed is 1% of cash collection.
    Find the closing debtors.
    a) Rs. 15,300
    b) Rs. 44,700
    c) Rs. 64,700
    d) Rs. 35,700
  • 19. Consignment - Quiz

    1. 1,000 kg of apples are consigned to a wholesaler, the cost being Rs. 3 per kg plus Rs. 400 of freight, it is known that a loss of 15% is unavoidable. The cost per kg will be:
    a) Rs. 5
    b) Rs. 4
    c) Rs. 3.40
    d) Rs. 3
    2. Yojan Kumar consigned goods of Rs. 1,00,000 at an invoice price of 20% above the cost to Singham Kumar. Consignee is entitled for 5% commission on total sales up to invoice, 20% commission on sale proceeds in excess of invoice price and 2% del credere commission on credit sales. Singham Kumar sold 25% goods for cash at Rs. 40,000; 50% goods at Rs. 70,000 on credit and kept 10% goods at invoice price for himself. Calculate the commission payable to Singham Kumar.
    a) Rs. 10,500
    b) Rs. 9,900
    c) Rs. 10,200
    d) None of the above
  • 20. Joint Ventures - Quiz

    1. The minimum number of co-venture will be atleast ____________ in joint venture business.
    a) 2
    b) 5
    c) 7
    d) 4
    2. If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:
    a) The drawer of the bill
    b) The drawee of the bill
    c) The discounting charges will be recorded in memorandum joint venture account
    d) The discounting charges will be borne by bank
  • 21. Bills of Exchange and Promissory Notes - Quiz

    1. Which of the following is correct for presenting bill to notary public:
    a) To pay fees to notary public
    b) For “bill for collection”
    c) If the acceptor can prove that the bill was not properly presented to him for payment, he can escape the liability, hence for dishonour it is produced
    d) For drawing a fresh bill
    2. Liability for the bill discounted is a ________.
    a) Short term liability
    b) Long term liability
    c) Current liability
    d) Contingent liability
  • 22. Introduction to Partnership Accounts - Quiz

    1. When is Profit & Loss Appropriation Account prepared?
    a) For Proprietorship firm
    b) For partnership firm
    c) Both (a) and (b)
    d) None of the above
    2. X and Y are partners. Given below is detail of items appearing in the Appropriation Account .
    Particulars   X (Rs.)   Y (Rs.)
    Interest on capital
    Interest on drawing
    Remuneration to partners 2,000
    Share of profit after Appropriation    		   1,600
       500
      2,000
      8,000    		   1,800
      400
      3,000
      12,000

    What was the net profit before appropriation?
    a) Rs. 17,500
    b) Rs. 22,500
    c) Rs. 27,500
    d) Rs. 29,300
  • 23. Treatment of Goodwill in Partnership Accounts - Quiz

    1. Neeraj and Gopi are partners in a firm with capitals of Rs. 5,00,000 each. They admit Champak as a partner with 1/4th share in the profits of the firm. Champak brings Rs. 8,00,000. The Profit and Loss Account showed a credit balance of Rs. 4,00,000 as on the date of admission. The value of hidden goodwill is:
    a) Rs. 14,00,000
    b) Rs. 18,00,000
    c) Rs. 10,00,000
    d) Nil
    2. An asset which is not fictitious but intangible in nature, having realizable value ______
    a) Machinery
    b) Building
    c) Furniture
    d) Goodwill
  • 24. Admission of New Partner - Quiz

    1. The balance of memorandum revaluation account (second part), is transferred to the capital accounts of the partners in :
    a) Capital Ratio
    b) Old profit sharing Ratio
    c) New profit sharing Ratio
    d) Sacrificing Ratio
    2. A and B are partners sharing profits in the ratio 5:3, they admitted C giving him 3/10th share of profit. If C acquires 1/5th share from A and 1/10th from B, new profit sharing ratio will be:
    a) 5:6:3
    b) 2:4:6
    c) 18:24:38
    d) 17:11:12
  • 25. Retirement of a Partner - Quiz

    1. Joint Life Policy is taken by the firm on the life(s) of …………………..
    a) All the partners jointly
    b) All the partners severely
    c) On the life of all the partners and employees of the firm
    d) ‘a’ and ‘b’
    2. The capitals of A, B and C are Rs. 1,00,000; Rs. 75,000 and Rs. 50,000, profits are shared in the ratio of 3:2:1. B retires on the basis of his share purchased by other partners keeping the total capital intact. The new ratio between A and C is 3:1. Find the capital of A and C after purchasing B’s share.
    a) Rs. 1,50,000 and Rs. 1,00,000
    b) Rs. 1,46,250 and Rs. 42,000
    c) Rs. 1,56,250 and Rs. 68,750
    d) Rs. 86,250 and Rs. 46,250.
  • 26. Death of a Partner - Quiz

    1. A, B and C are the partners sharing profits and losses in the ratio 2:1:1. Firm has a joint life policy of Rs. 1,20,000 and in the balance sheet it is appearing at the surrender value i.e. Rs. 20,000. On the death of A, how this JLP will be shared among the partners.
    a) 50,000:25,000:25,000
    b) 60,000:30,000:30,000
    c) 40,000:35,000:25,000
    d) Whole of Rs. 1,20,000 will be paid to A
    2. After the death of a partners, amount payable is received by:
    a) Government
    b) Firm
    c) Executors of deceased partner
    d) None
  • 27. Issue, Forfeiture and Reissue of shares - Quiz

    1. Tee Limited forfeited 500 shares of Rs. 20 each issued at 5% discount for non-payment of allotment and final call money of Rs. 9 and Rs. 5 respectively. Amount credited to share forfeiture A/c will be ______.
    a) Rs. 3,500
    b) Rs. 2,500
    c) Rs. 3,000
    d) Rs. 4,000
    2. F Ltd. issued 10,000 equity shares of Rs. 10 each at a premium of 20% payable Rs. 4 on application (including premium), Rs. 5 on allotment and the balance on first and final call. The company received application for 15,000 shares and allotment was made pro-rata. G, to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to H at par. Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions =?
    a) Rs. 1,14,000
    b) Rs. 1,32,000
    c) Rs. 1,20,000
    d) Rs. 1,00,000
  • 28. Issue of Debentures - Quiz

    1. In case of a Balance Sheet of a company, debentures are shown under the head:
    a) Secured loans
    b) Share capital
    c) Reserves and Surplus
    d) Current liabilities.
    2. When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.
    a) Credit Debentures A/c. and debit cash A/c.
    b) Debit Debenture suspense A/c and credit cash A/c
    c) Debit Debenture suspense A/c and credit debentures A/c
    d) Debit cash A/c and credit the loan A/c for which security is given
  • 29. Redemption of Preference Shares - Quiz

    1. In case of redemption option of preference shares is out of the fresh issue of equity shares, which of the following account will be credited?
    a) Capital reserve account
    b) Equity share capital account
    c) Current liabilities and provisions account
    d) Capital redemption reserve account
    2. During the year 2000-2001, T Ltd. issued 20,000, 12% Preference Shares of Rs. 10 each at a premium of 5%, which are redeemable after 4 years at par. During the year 2005-2006, as the company did not have sufficient cash resources to redeem the preference shares, it issued 10,000,14% debentures of Rs. 10 each at a premium of 10%. At the time of redemption of 12% preference shares, the amount to be transferred to capital redemption reserve =?
    a) Rs. 90,000
    b) Rs. 1,00,000
    c) Rs. 2,00,000
    d) Rs. 1,10,000