Accounting MCQ Past Paper 2021-22 PDF

# Fundamentals of Accounting Theory & Practice ## MCQ - Unit: I & II ### 2021-22 **Mid Sem. (CBCS) : 16-10-2019** **Book Code: C** 1. "Employed Mr. Niraj at a salary of Rs. 40,000". This is - (a) an event - (b) an economic transaction - (c) a transaction - (d) none of these 2. Whi...

# Fundamentals of Accounting Theory & Practice ## MCQ - Unit: I & II ### 2021-22 **Mid Sem. (CBCS) : 16-10-2019** **Book Code: C** 1. "Employed Mr. Niraj at a salary of Rs. 40,000". This is - (a) an event - (b) an economic transaction - (c) a transaction - (d) none of these 2. Which of the following is an example of personal account? - (a) Machinery - (b) Rent - (c) Cash - (d) Creditors 3. Match the following: - (i) real account - (ii) personal account - (iii) nominal account - a) rent - b) patent - c) prepaid salary - (a) i-b, ii-c, iii-a - (b) i-a, ii-b, iii-c - (c) i-a, ii-c, iii-b - (d) i-b, ii-a, iii-c 4. BSNL is an example of which account? - (a) Representative Personal Account - (b) Natural Personal Account - (c) Artificial Perrsonal Account - (d) None of these 5. Which of the following statement is incorrect as per accounting equation approach? - (a) Increase in capital will be credited - (b) Decrease in revenue will be debited - (c) Increase in liabilities will be debited - (d) Decrease in expenses will be credited 6. All expenses incurred before commencement of business would be treated as: - (a) Revenue Expenditure - (b) Capital Loss - (c) Capital Expenditure - (d) Deferred Revenue Expenditure 7. Find out which of the following statements is/are correct? - Statement (a) : Under cash basis of accounting there may be prepaid/outstanding expenses and accrued/unrealised incomes in the balance sheet. - Statement (b): Under accrual basis of accounting there is no prepaid/outstanding expenses and accrued/unrealised incomes in the balance sheet. - (a) Only statement (a) is correct - (b) Only statement (b) is correct - (c) Both the statements are correct - (d) Both the statements are incorrect 8. Match the following correctly and choose the correct option given after table: - a. Drawback of accounting - i. Contribution of Luca Pacioli - b. Advantage of accounting - ii. Ignore time value of money - c. Single entry system - iii. Incomplete records - d. Double entry system - iv. Facilitates the preparation of Financial Statements - (a) a- iv, b- ii, c- iii, d- i - (b) a- ii, b- iv, c- i, d- iii - (c) a-ii,b- iii, c- iv, d- i - (d) a-ii, b-iv, c-iii, d- i 9. Suspense Account can be classified into: - (a) Real Account - (b) Nominal Account - (c) Personal Account - (d) None of these ## First in first out (FIFO) **MAA** **2** **10.** Which of the following statement is incorrect? - (a) Accounting is a language of business. - (b) Scope of accounting includes budgetary control. - (c) All transactions can be event but all events can't be transaction. - (d) Provision for Depreciation A/c can't be classified into any account. **11.** In modem accounting, which method of book-keeping is used? - (a) Single Entry System - (b) Double Entry System - (c) Bahikhata System - (d) None of these **12.** When there is purchase return, - (a) Journal Voucher - (b) Credit Note - (c) Debit Note - (d) None of these is prepared by the buyer of goods. **13.** In FIFO method, old stocks are issued - (a) first, afterwards - (b) afterwards, first - (c) at cost price, at market price - (d) None of these and new stocks are issued **14.** Any expenditure which increases the earning capacity of the business will be referred as: - (a) Revenue Expenditure - (b) Deferred Revenue Expenditure - (c) Capital Expenditure - (d) None of these **15.** Mr. X withdraws ₹300 p.m. at the beginning of each month and Mr. Y withdraws 600 p.m. at the end of each month. Rate of interest on drawing is 10% p.a. The interest on drawing is: - (a) For Mr. X Rs.390 & Mr. Y Rs.330 - (b) For Mr. X Rs.330 & Mr. Y Rs.390 - (c) For Mr. X Rs.195 & Mr. Y Rs.330 - (d) None of these **16.** The manager is entitled to receive commission of 5% on net profit before charging such commission and net profit at the end of year is₹ 1,05,000. The commission payable to manager is: - (a) Rs.5250 - (b) Rs.5000 - (c) Rs.5526 - (d) Rs.5520 **17.** Wages paid Rs.5,000 on purchase of furniture is - (a) added to wages A/c - (b) added to machinery A/c - (c) added to direct expenses A/c - (d) none of these **18.** Machinery costing Rs.2,00,000 purchased on 01.04.2017 for which installation charges paid Rs. 10,000. Additional machinery costing Rs.61,000 purchased on 01.07.2017. Calculate the amount of depreciation @ 15% p.a. for the year ended on 31.03.2018. - (a) Rs. 23,475 - (b) Rs.31,500 - (c) Rs.22,575 - (d) None of these **19.** Cost of material consumed is the result of - (a) Opening Stock + Sales - Closing Stock - (b) Opening Stock + Purchase + Purchase Expense - Closing Stock - (c) Opening Stock - Purchase + Closing Stock - (d) None of these **20.** Choose appropriate option from the following which suits the most in the absence of partnership deed: - (a) 12% interest will be paid on loan given by partner.X - (b) Salary and Commission would be given to partner. > - (c) Interest on Capital shall be paid @ 6% p.a. - (d) No salary, commission and interest on capital would be given to the partner. **21.** Under which convention of accounting, the contingent liabilities are shown as a footnote or explanatory notes in the balance sheet of a firm? - (a) Convention of Full Disclosure - (b) Convention of Materiality - (c) Convention of Conservatism/Prudence - (d) Convention of Consistency **22.** Instead of preparing separate accounts for items like pen, erasers, rough writing pads, pencil and other stationery items, they all are grouped under one stationery expense account based on - (a) Dual Aspect - (b) Consistency - (c) Materiality - (d) Business entity concept/convention. **23.** Based on concept/convention, no accounting entry is made in the books of employees with the firm. accounts for advantage of having a team of sincere, honest, hard working and efficient - (a) Materiality - (b) Money Measurement - (c) Full Disclosure - (d) Dual Aspect **24.** Based on concept, outstanding salary is shown while finalizing the accounts even though the salary is not yet paid. - (a) Accrual - (b) Money Measurement - (c) Historical Cost - (d) Dual Aspect **25.** ABC & Co. has 10% investment with private bank of Rs.1,00,000 as on 01/04/2018. During the year interest received on this investment is Rs.8,000. What amount of interest to be credited to Profit and Loss A/c on 31st March, 2019 ? - (a) Rs 10,000 - (b) Rs 8,000 - (c) Rs 9,000 - (d) None ofthese **26.** Opening balance of capital of Mr. A is Rs.10,000, during the year he receives interest on capital Rs. 1000, there is drawing of Rs.2,500, interest on arawings is Rs.250 and his share in profit is Rs.4,000. What would be the amount of closing capital? - (a) Rs 10,250 - (b) Rs.12,250 - (c) Rs 12,750 - (d) None of these **27.** Value of fixed asset as on 01/04/2018 is Rs.20,000, which was purchased for Rs.30,000 (purchase value) and same asset is sold for Rs.35,000 on 01/04/2019. How much profit to be credited to P & L A/c? - (a) Rs 10,000 - (b) Rs 15,000 - (c) Rs.5,000 - (d) None of these **28.** A finn has paid insurance premium of Rs.12,000 for the year 2018-19, out of which Rs.3,000 is related to the next year 2019-20. What amount of insurance premium to be debited to profit and loss A/c for the year 2018-19? - (a) Rs 12,000 - (b) Rs 9,000 - (c) Rs 15,000 - (d) None of these **29.** Stock costing Rs.20,000 at the end of the year, out of which 25% of the goods, its market value is decreased by 10% and 35% of the goods, its market value is Rs.6,500. Calculate the value of closing stock. - (a) Rs.21,000 - (b) Rs.20,000 - (c) Rs.19,000 - (d) None of these **30.** In absence of partnership deed, interest to be paid on drawing by partner to firm is - (a) 6% p.a. - (b) 10% p.a. - (c) 12% p.a. - (d) None of these **Arrear Mid (CBCS) : Tuesday, 19-11-2019** **Booklet Code: A Subject Code ACF1103** **1.** Which of the following is not an external user of accounting information? - (a) Researcher - (b) Government - (c) Supplier - (d) Manager **2.** Which of the following is recorded in Purchase Book? - (a) Cash purchase of raw materials - (b) Credit purchase of fixed assets - (c) Credit purchase of tradable goods - (d) None of these **3.** consists of accounting concepts, conventions, policies and standards. - (a) Accounting Cycle - (b) GAAP - (c) Accounting Framework - (d) None of these **4.** "The proprietor withdraws goods from the business for his personal use ₹ 50,000." This is - (a) an event - (b) a transaction - (c) a non-monetary transaction - (d) None of these **5.** Which of the following is not a source document for identification of business transaction? - (a) Profit & Loss Account - (b) sale invoices - (c) Purchase invoices - (d) Vouchers **6.** Which of the following is known as “Principle Book of Account"? - (a) Journal - (b) Ledger - (c) Profit and Loss Account - (d) Balance Sheet **7.** Copyright is - (a) Personal Account - (b) Expenses Account - (c) Nominal Account - (d) Real Account **8.** Machinery costing ₹5,00,000 purchased on 01.04.2019 for which installation charges paid 10,000. Additional machinery costing 80,000 purchased on 01.07.2019. Calculate the amount of depreciation @ 15% p.a. for the year ended on 31.03.2020. - (a) * 76,500 - (b) ₹ 84,000 - (c) 85,000 - (d) 85,500 **MAA** **9.** Match the following: - i. general reserve - ii. carriage outward - iii. plant and machinery - iv. dividend on shares received - a. Assets - b. Liability - c. Income - d. Expenses - (a) i-d, ii-c, iii-b, iv-a - (b) i-c, ii-a, iii-b, iv-d - (c) i-b, ii-d, iii-a, iv-c - (d) i-a, ii-b, iii-c, iv-d **10.** Mr. A is a partner in the partnership firm, withdraws 300 at the beginning of each month for the year 2019-20. Calculate interest on drawing at 12% p.a. for the year 2019-20. - (a) 243 - (b) 234 - (c) 216 - (d) 432 **11.** Capital of Mr. K is 1,00,000 and Mr. S is 2,00,000. In partnership deed no provision is made in pertaining to interest on capital. What will be the amount of interest on capital? - (a) For Mr. K 6,000 and Mr. S₹ 12,000 - (b) For Mr. K12,000 and Mr. S₹24,000 - (c) For Mr. K₹9,000 and Mr. S₹18,000 - (d) No Interest for Mr. K and Mr.S **12.** Mr. Vijay is a partner in Bhide & Associates with capital of 2,00,000. If interest is payable on partners capital @ 6% p.a. then will be the amount of interest on capital and it is for Mr. Vijay. - (a) 6,000; an expenses - (b) 6,000; an income - (c) 12,000; an expenses - (b) 12,000; an income **13.** Trial Balance shows amount of salary as on 31-03-2020 is ₹10,000. Outstanding salary of current year is 1,500; Outstanding salary of last year was 2,000; Prepaid salary of current year is 1,000; Prepaid salary of last year was₹2,500. What will be the amount of salary in Profit & Loss A/c for the year ended on 31-03-2020? - (a) ₹11,000 - (b) ₹ 8,000 - (c) ₹ 9,500 - (d) None of these **14.** The matching concept matches which of the following - (a) Asset with Liabilities - (b) Capital with Income - (c) Cost with Revenue - (d) Expenses with Capital **15.** The going concern concept assumes that - - (a) The entity will continue running for foreseeable future - (b) The entity will continue running until the end of accounting period. - (c) The entity will close its operating in 10 years. - (d) The entity cannot be liquidated **16.** "Anticipate no profits and provide for all possible losses”. This is essence of which of the following accounting concept/convention – - (a) Conservatism Convention - (b) Dual Aspect Concept - (c) Consistency Convention - (d) None of these **17.** Based on concept, provision for outstanding salary for the month of March is made in the month of March while inalizing the accounts even though the salary for that month of March is actually paid in month of April in the next year. - (a) Accrual - (b) Money Measurement - (c) Revenue Realisation - (d) Dual Aspect Concept **18.** It is essential to standardize the accounting principles and policies in order to ensure - (a) Consistency - (b) Transparency - (c) Comparability - (d) All of these **19.** PRIME cost is the aggregate of : - (a) Direct Materials + Direct Labour - (b) Direct Labour + Administrative Expenses + Direct Expenses - (c) Direct Material + Direct Labour + Direct Expenses - (d) None of above **20.** ₹10,000 paid on brokerage and stamp duty on purchase of investments is consider as - (a) Capital Expenditure - (b) Differed Revenue Expenditure - (c) Revenue Expenditure - (d) None of these **21.** Following transactions are the features of capital nature except – - (a) Petrol engine of truck replace with the diesel engine 1,20,000. - (b) Legal expenses incurred to increase the loan₹ 50,000. - (c) Transportation cost paid at the time of acquisition of machinery 20,000. - (d) Carriage paid on goods purchase 80,000. **MAA** **M.C.Q. : Unit I & II** **22.** Accounting refers to the process of collecting, recording, summarizing and communicating information. - (a) Social - (b) non-economic - (c) non-monetary - (d) financial **23.** In accounting, which type of data is adopted as the basis in value and reporting all assets and liabilities? - (a) Current price data - (b) Market price data - (c) Historical data - (d) None of these **24.** Which of the following is/are the advantage of accounting? - (i) Facts recorded in financial statements are greatly influenced by accounting conventions. - (ii) Accounting provides control over assets. - (iii) It is difficult to conceal theft of fraud because of periodic balancing of books of accounts. - (iv) Non financial character transactions are not recorded. - (a) (i) & (iii) - (b) (i) & (ii) - (c) (ii) & (iii) - (d) only (i) **25.** Stock statement is also known as - (a) Bank Stock Statement - (b) Inventory statement - (c) Both (a) & (b) - (d) None of these **26.** is a commercial document and first official offer issued by purchaser to a seller. - (a) Purchase Bill - (b) Purchase Order - (c) Debit Note - (d) Credit Note **27.** Find out which of the following statements is/are correct? - Statement (a): Debit note sent to the supplier of the goods when the goods are returned. - Statement (b): Office equipment purchased on credit will be recorded in the purchase book. - (a) Only statement (a) is correct - (b) Only statement (b) is correct - (c) Both the statements are correct - (d) Both the statements are incorrect **28.** Management Accounting is primarily meant for – - (a) Internal users - (b) External users - (c) Both (a) & (b) - (d) None of these **29.** Going concern concept deals with: - (a) Business has indefinite life unless and until it is liquidated. - (b) The cost of fixed asset is allocable over its useful life and hence depreciation is charged. - (c) Enterprise will continue in operations long enough to charge against income. - (d) All of the above. **30.** Which of the following is not an original book of entry? - (a) Journal - (b) Cash Book - (c) Sales Book - (d) Trail Balance **Mid Sem. (CBCS) : 06/10/2018** **SET: D** **1.** Accounting cycle begins with: - A. Recording of business transactions. - B Rs.8,000 - C. Rs.5,600 - Rs.2,400 **2.** From the following information ascertain the amount of insurance for the year 2017-18 to be debited to Profit & Loss Account. Insurance (including Rs.4,800 for a year ended 30.09.2018) - A Recording of business transactions. - B Preparation of Ledger book. - .Identification of business transactions - D Preparation of Final Accounts. **3.** Which of the following is not a stage of an Accounting Cycle? - A. Verify the books of Accounts. - C. Preparation of Trial balance. - B Preparation of Ledger. - D Recording business transaction in Journal or Subsidiary Books. **4.** Goods of Rs.20,000 destroyed by fire is: - A. a transaction - B. an event - C. an asset - D. an equation **5.** Match the following : - Type of Account - i. PersonalAccount - ii. Real Account - iii. Nominal Account - Nature of expense/Asset - a. Salesman commission - b. Outstanding expense - c. Goodwill - A i-a, ii-b, iii-c - B. i-b, ii-c, iii-a - Ci-c, ii-a, iii-b - Di-a, ii-c, iii-b **6.** Which of the following is not a financial statement in case of trading concern? - A Trading Account - C. Manufacturing Account - B. Profit & Loss Account - D. Balance Sheet **MAA** **7.** Which of the following is/are considered as transaction/s? - i. Cash of Rs.50,000 brought by the owner and started business. - ii. Goods distroyed by fire Rs. 10,000 - iii. Received an order of Rs. 20,000 from the customer. - iv. Goods supplied to customer as per his order worth Rs.20,000 - A Only i - Bi, ii and iii - C. Both i and ii - D. i, ii, and iv **8.** Select the odd one out: - i. Price list sent to prospective customerevent (non-economic - ii. Goods supplied to the customer as per the order. Transaction - iii. Dismissed the Assistant from his job.event - iv. Took Rs.20 in coins in exchange for Rs. 20 note, event - A. i - B. iv - C. iii - D. event **9.** Mr. Pranav, a manager is entitled to a commission @ 10% p.a. on net profit after charging his Commission. If the net profit is Rs.2,20,000, his comnission amounts to Rs. - A. 2,200 - B. 20,000 - C. 22,000 - D. 2,000 **10.** Any written evidence in support of a business transaction is called - A. Trial Balance - B. Ledger - C. Voucher - D. Journal **11.** Under FIFO method: First in first out - A The material received first are issued last - C. The material received last are issued last - B. The material received first are Issued first. - D. The material received last are issued first. **12.** Which of the following statement is correct for finding out the Net works cost of production? - A. Prime cost + administration and selling Overheads + opening stock - closing stock - C. Prime cost + factory and selling Overheads + opening stock – closing stock - B. Prime cost + factory Overheads + opening stock - closing stock - D. Prime cost + administration overheads + opening stock - closing stock **13.** Provide for bad debts reserve at a 10% p.a. on debtors of Rs.50,000 after charging bad debts of Rs.5,000 is of what amount and that is provided as per which convetion? - A. Rs.4,500 and Conservatism Convetion - C. Rs.5,000 and Consistency - B. Rs.5,000 and Materiality - D. Rs.4,500 and Prudence Convention **14.** Information abstracted from the Current Capital Account of Mr.Amey Opening Balance of Current Account Rs.5,000 (Debit balance) Interest on Drawings is Rs.1,000, Interest on Fixed Capital Account is Rs.2,000, Drawings durint the year is Rs.5,000. His share in profit of the firm is Rs.25,000. What will the amount of Current Capital Account at the end of the year? - A. Rs.36,000 - B./Rs.16,000 - C. Rs.26,000 - D. Rs.46,000 **15.** The Assets acquired by the business with an intention to produce goods or provide services and are not held for resale is known as: - A. Current Assets - B. fixed Assets - C. Stock - D Merchandise **16.** The accounting for the unpaid salary and advanced receipt of rent for ascertaining the correct profit & loss is based on - A. Mercantile System of Accounting - C. Double Entry System of Accounting - B. Cash System of Accounting - D. Single Entry System of Accounting **17.** Which of the following is not an Example of Intangible Asset? - A. Goowill - B. Land - C. Patents - D. Trade Mark and Copy Right **18.** IFRS stands for: - A. International Financial Reporting System - B. Intemational Financial Reporting Standard - C. Indian Financial Reporting System - D. Indian Financial Reproting Standard **19.** Match the following: - Nature of Account - i. Prepaid expenses - ii. Bad debts - iii. Outstanding expenses - iv. Interest on investment - Type of Account - a Liability - b Income - c Asset - d. Expense - A. i-b, ii-d, iii-c, iv-a - C. i-b, ii-a, iii-b, iv-c - B. i-c ii-d, iii-a, iv-b - D. i-b, ii-d, iii-a, iv-c **MAA** **M.C.Q. : Unit I & II** **20.** Rerum inward appearing in the Trial Balance is to be deducted from: - A. Purchasese - B. Closing stock - C. Opening stock - D. Sales **21.** All revenue expenses are recorded in: - A. Profit & Loss Account - C. Director's Report - B. Annual Report - D. Balance sheet **22.** Anil and Biren are partners in a firm. Anil had withdrawn Rs.300 p.m. at the beginning of each month and Biren had withdrawn Rs.500 p.m. at the end of each month. What will be the amount of interest on drawing if the rate of interest drawing is 10% p.a.? - A. Anil - Rs. 180 and Biren - Rs.300 - B. Anil - Rs.180 and Biren- Rs.275 - C. Anil - Rs.195 and Biren - Rs.275 - D. Anil - Rs.195 and Biren- Rs.300 **23.** Goods return to customer worth Rs.30,000. In which of the following voucher it will be recorded? - A. Bank Payment voucher - B Debit Note - C. Cheque - D. Credit Notes. **24.** Mr. Swayam carrying on real estate business, sold a piece of land for Rs.40,00,000.(cost Rs.35,00,000) then the type of receipt is - A. Capital - C. Revenue - B. Deferred Revenue - C. None of the above **25.** On 15th February 2018, Mr.Sailesh purchased goods from M/s Mehta & Co. for Rs.1,00,000 of which paid Rs.50,000 by cash and Rs.50,000 by cheque of Bank of Baroda. From this available information identify which of following vouchers are to be prepared by the Mr. Sailesh for the Accounting purpose? - A. Cash Receipt voucher Rs.50,000 and Bank Receipt voucher Rs.50,000. - B. Cash Payment voucher Rs.50,000 and Bank Receipt voucher Rs.50,000. - C. Cash Payment voucher Rs.50,000 and Bank Receipt voucher Rs.50,000. - D. Cash Payment voucher Rs.50,000 and Bank Payment voucher Rs.50,000 . **26.** Hena and Ena are partners in M/s HE & Co. Their profit sharing ratio is 3: 2. Their opening balance of Capital Account are Rs.1,60,000 and Rs.1,20,000 respectively. Hena is given commission of Rs.5,000 from the profit of the firm. In partnership deed, it is decided to give salary of Rs.1,000 p.m. to both partners on 31st March, 2018. Firm incurred net divisible profit of Rs.50,000 during the year. Interest on capital is paid Rs.10,000 and Rs.15,000. Drawings made during the year of Rs.3,000 and Rs.4,000 by Hena and Ena respectively. What will be the final balance of both partners to be shown in the Balance Sheet will be : - A. Rs.2,10,000 and Rs.1,50,000 - C. Rs.1,73,000 and Rs. 1,43,000 - B Rs.1,65,000 and Rs.1,43,000 - D. Rs.2,14,000 and Rs.1,63,000 **27.** An amount received as Bank loan is considered as: - A. Capital Receipt - C. Revenue Receipt - B Revenue Loss - D. Revenue Expenditure **28.** Accounting policies should not be changed from one period to another, accodring to : - A. Consistancy - C. Prudence - B Materiality - D. Accounting period **29.** Introduction of fresh Capital into the business results into: - A. Decrease in Liabilities and Increase in Equity B. Increase in Assets and Increase in Equity - C. Decrease in Assets and Decrease in Liabilities - D. Decrease in Liabilities and Increase in Cash / Bank **30.** Mr.Puri is a debtor of Rs.5,000 and creditor for Rs.7,000 of Soham Trade ? Which of the following is correct treatment in final account of soham traders. - A. Rs.7,000 deducted from both debtors and creditors. - C. Rs.7,000 deducted from creditors only. - B. Rs.5,000 deducted from debtors only - D. Rs.5,000 deducted from both debtors and creditors. **MAA** **Mid Sem. (CBCS): 12-10-2017** **Subject Code Set A**