Chapter: 2 FINANCIAL ACCOUNT
Chapter: 2 FINANCIAL ACCOUNT
MCQ’S:
- Debit balance of trading account means….
(A) Gross profit (B) Net profit (C) Gross loss (D) Net loss
- If there is no provision in partnership agreement, interest at ——–% is to be given on partner’s loan. (A) 5 (B) 6 (C ) 7 (D ) 8
- Loan borrowed from bank has —— balance
(A) Debit (B) Credit (C) Debit or credit (D) None of the given
- Where would you show debit balance of profit and loss account given in the trial balance ? (A)Trading A/c (B) Profit – loss appropriation (C) Capital A/c (D) Current A/c
- Balance sheet shows ——– of the business (A) Financial position (B) Economic position (C) Reputation (D) Quality
- Which one of the following is the current asset ? (A)Goodwill (B) Stock of goods (C) Machines (D) Building
- Where would you recorded interest on partners current account ? (A)Profit & loss A/c (B) Profit & loss appropriation A/c (C) Fixed capital A/c (D) None f the given
- If closing stock of goods is given in the trial balance only, then it would be recorded ——– (A)Trading A/c (B) Profit – loss A/c (C) On the asset side of balance sheet (D) None of the given
- If depreciation fund is given in the trial balance, then in the balance sheet, depreciable asset is shown at ——-(A)Book value (B) Cost price (C) Market value (D) None of the given
- Book value of closing stock is Rs 80,000. Out of which market value of 10% and 20% goods is less by 20% and 30% respectively. While remaining stock is valued at 75%. Then closing stock value is ——- (A) 65900 (B) 65900 (C) 59600 (D) 59060
- Closing stock value is as follows,
Cost price Market price
Rs 20,000 Rs 18,000
Rs 30,000 Rs 36,000
Goods of Rs. 1000 required repairing. Then closing stock value ——-
(A)Rs 5,000 (B) Rs 47,000 (C) 48,000 (D) Rs 49,000
- Credit balance of trading account means ——– (A)Gross profit (B) Net profit (C) Gross loss (D) Net loss
- Interest on debit balance and credit balance of partners current account is recorded in ——- account. (A)Profit – loss A/c (B) Profit – loss appropriation A/c (C) Fixed capital A/c (D) None of the given
- Find out amount to be written off for lease hold building for the following information,
Trial balance as on date – 31/12/2016
| Particular | Debit | Credit |
| Leasehold Building
(For 5 year from Dt. 1/7/2014) |
70,000 |
(A) 20,000 (B) Rs. 10,000 (C) Rs. 7000 (D) Rs. 14,000
- From the following —— is not permanent asset (A) Vehicles (B) Machines (C) Building (D) Cash balance
- In the trial balance ,deprecation on machines (factory) is given. Where would you show it in the final accounts ?
(A) Trading A/c – Debit side (B)Trading A/c – Credit side (C)Profit – loss A/c – Debit side
(D)Profit – loss A/c – Debit side
- Accounting year for the firm ends on 21/3/2016. Apprentice premium Rs. 20,000 received on 1/10/2015 for 2.5 years. Determine apprentice premium to be recorded on capital – liabilities of balance sheet.
(A)10,000 (B) Rs. 20,000 (C) Rs. 16,000 (D) Rs. 8000
- Carriage charges paid is Rs. 1800 and unpaid carriage charges 1/3 . If ratio for carriage inward and carriage outward is 4:6 then amount for carriage inward——
(A) 1080 (B) Rs. 1000 (C) Rs. 800 (D) Rs. 810
Answer the following questions ::
- According to which principle closing stock is valued ?
Answer :: Closing stock is valued at market price or cost price whichever is less as per conservation concept principle
- Which balance the suspense account has ?
Answer :: Suspense account has debit or credit balance
- Where will you show the technical directors fees given in the trial balance ?
Answer :: On debit side of trading A/c, Technical directors fees is to be shown
- Which kind/types of company/firm do not prepare Trading Account ?
Answer :: The firm engaged in giving only services or selling their skill or firm not having the transaction of purchasing the goods and by adding profit to sale out that goods etc. do not prepare Trading Account.
- Why firm prepares balance sheet ?
Answer :: To know the financial position of the business, the firm prepares balance sheet
- Debit balance and credit balance of profit and loss appropriation account means
Answer :: Debit balance of profit and loss appropriation account means net divisible loss and credit balance of profit and loss appropriation account means net divisible profit
- State the effects of interest on capital and interest on drawings of a partner on partners capital and profit of the business
Answer :: Due to interest on capital, profit of business decreases and capital of partner increases and due to interest on drawings, profit of business increases and capital of partner decreases
- What is adjusted purchase ?
Answer :: Adjusted purchase= Opening stock of goods+ Purcahses- Purcahse return- Closing stock of goods
- Where will you, show income tax given in the trial balance, in the final accounts of partnership firm?
Answer :: Income tax will be shown on the debit side of profit and loss account as business expense
- In India partnership Act enforced in the year —-
Answer :: Partnership Act enforced in India in the year 1932
- Interest on partners loan is recorded —-
Answer :: Interest on partners loan is recorded on debit side of profit and loss account
- On which balance, bad debts reserve is calculated?
Answer :: Bad debts reserve is calculated on the balance of doubtful debts
CHAPTER : 1 INTRODUCTION TO PARTNERSHIP
