Acknowledgment

We gratefully acknowledge all the students of CMA Foundation for their dedication
and commitment to learning. This book MCQ is a testament to your pursuit of
knowledge and your determination to excel in your studies. We hope this resource
serves you well in your preparation and helps you achieve success in your
examinations.

Message for Students

Dear Students,

Congratulations on embarking on your journey towards becoming Cost

Accountants with the CMA Foundation. We are delighted to present to you this
comprehensive guide of MCQs, tailored specifically to aid your preparation. This
book aims to equip you with the latest updates and insights crucial for your
examination success and professional growth.
Remember, each page you read and comprehend brings you closer to your goal.
Stay focused, remain diligent, and approach your studies with enthusiasm. Your
dedication today will shape your achievements tomorrow.

Best wishes for your studies and future endeavors!

Warm regards,
Unique Academy for Commerce
 INDEX
Sr No. Chapter Name Page Number No of
MCQ’s

1) Accounting Basics 2-34 350

2) Depreciation Accounting 35-39 50

3) Rectification of Errors 40-45 50

4) Bills of Exchange 46-51 50

5) Bank Reconciliation Statement 52-58 50

6) Joint Venture Accounting 59-65 50

7) Consignment Accounting 66-70 50

8) Final Accounts (PO) 71-80 100

9) Final Accounts (NPO) 81-85 50

1|UNIQUE ACADEMY FOR COMMERCE

 CHAPTER 1. ACCOUNTING BASICS
1) What is the method of summarizing and classifying the record of financial transaction in monetary
terms?
(a) Book Keeping (b) Auditing (c) Accountancy (d) Cost Accountancy
2) The obligation of an enterprise other than owner’s fund are known as:
(a) Assets (b) Liabilities (c) Capital (d) None
3) On January 1, Shyam paid rent of Rs. 5,000. This can be classified as:
(a) An Event (b) A transaction
(c) A transaction as well as an Event (d) Neither a transaction as well as an Event
4) Accounting is concerned with -
(a) Monetary transactions (b)non-monetary transactions
(c) Monetary and non-Monetary transactions (d) Illegal transactions
5) Function of accounting include:
(a) Keeping systematic record of all business transactions
(b) To know the financial position of the company
(c) Ascertains the profit & loss
(d) All
6) Financial position of the business is ascertained on the basis of:
(a) Record prepared under book keeping process (b) Trial balance
(c) Balance Sheet (d) Profit & Loss A/c
7) Basic function of financial accounting is to:
(a) Record all business transactions
(b) Interprets the financial data
(c) Assist the management in performing their function effectively
(d) All
8) Financial statements only consider: -
(a) Assets expressed in monetary terms
(b) Liabilities expressed in monetary terms
(c) Assets expressed in non-monetary terms
(d) Assets and Liabilities expressed in monetary terms
9) Tick the wrong statement –
(a) Accounting is the language of business
(b) Transactions are recorded in quantitative terms only
(c) Accounting is the art of recording, classifying and summarizing
(d) Transactions and events of financial character are subject –matter of accounting
10) An Economic event that involves transfer of money or money’s worth:
(a) Barter (b) Credit transaction
(c) Cash Transaction (d) Financial transaction
11) Exchange of financial benefit (goods, property etc) for cash receivable or payable in future:
(a) Financial cash transaction (b) Financial credit transaction
(c) Barter transaction (d) Not a transaction
12) An exchange of goods between two parties:
(a) Barter (b) Transaction
(c) Sale (d) Transfer

2|UNIQUE ACADEMY FOR COMMERCE

13) _____is the end result of Transaction?
(a) Book Keeping (b) Transaction
(c) Accounting (d) Event
14) On March 31st,2020 Narnia Enterprises purchased a vehicle from Hyundai. For Rs. 1,75,000. This
is:
(a) An event. (b) A transaction.
(c) A transaction as well as an event. (d) Neither a transaction nor an event
15) Which of this transaction would cause Increase in owner’s equity?
(a) Profit from a successful business operation
(b) Fresh investment made by the owner
(c) Bringing in new asset in the business (d) All
16) Unpaid expenses are:
(a) Outstanding liabilities (b) Prepaid expenses
(c) Unaccrued expenses (d) All of these
17) Money owed from an Outsider is a:
(a) Asset (b) Liability (c) Expense (d) Capital
18) Accounting is defined as:
(a) An art of recording, classifying and summarizing in a significant manner and in terms of money,
transactions and events which are in part at least of a financial character, and interpreting the
result thereof
(b) A systematic and regular record of events affecting a firm with a view to obtaining a clear
financial picture
(c) A method of ascertaining profit & Losses
(d) Nothing but Book Keeping
19) ___is the business performance of trading activities?
(a) Book Keeping (b) Transaction (c) Accounting (d) Event
20) Fixed assets are assets which are:
(a) Long term assets where benefits from it is likely to extend beyond one accounting period
(b) Assets, which a business firm gets in the beginning of the year
(c) Assets, which are financed by bank loan
(d) Immovable assets like Land, Building etc.
21) On 31stMarch ,2020 a Trader, after sale of goods, is left with the closing stock of Rs.10,000. This
closing stock is termed as:
(a) An event. (b) A transaction.
(c) A transaction as well as an event. (d) Neither a transaction nor an event
22) Which of the following event is subject matter of accounting?
(a) Death of key executive of the business /Company
(b) Strike of workers
(c) Payment of Rs. 10,000 to bank in discharge of outstanding loan
(d) Marriage of the daughter of the managing Director of the Company
23) Tick the true statement –
(a) Keeping systematic recording of business transaction is not the function of financial
accounting
(b) Accounting is concerned with monetary transactions
(c) Accounting is concerned with past as well as future events
(d) Business and businessmen are one and the same from accounting point of view

3|UNIQUE ACADEMY FOR COMMERCE

24) Which of the following transaction would cause decrease in owner’s equity?
(a) Withdrawal of cash for self-use by the proprietor
(b) Withdrawal of goods for self-use by the owner
(c) Payment of personal expenses of the proprietor
(d) All
25) On 31st Dec 2020 Ashok Ltd. purchased a Machine from Mohan Ltd. for Rs.1,75,000. This is (year-
end 31st December)
(a) A transaction (b) An event
(c) None of these (d) Both Transaction as well as Event
26) Which of the following event is not a subject matter of accounting?
(a) Quarrel between the production manager and sales manager
(b) Loss of goods worth Rs. 50,000 in fire
(c) Realization of old bad debts amounting to Rs. 10,000
(d) Payment of interest Rs. 5,000 on loan
27) Accounting is basically concerned with:
(a) Forecasting (b) Measurement (c) Management (d) None
28) Objectives of Accounting is /are:
(i) Systematic recording of transactions
(ii) Ascertainment of result of recorded transactions
(iii) Ascertainment of the financial position of the business
(iv) To know the solvency position
Which combination is correct?
(a) only (i) and (ii) (b) Only (ii) and (iii) (c) only (ii), (iii) and (iv) (d) All
29) Book keeping includes of the financial transactions and events of business:
(a) Analysis (b) Elimination
(c) Reading (d) Recording and classification
30) Financial Statements are a part of:
(a) Accounting (b) Book-keeping (c) Both (d) None
31) Which of the following is not a function of financial accounting?
(a) Keeping systematic recording (b) Meeting Legal Requirements
(c) Forecasting (d) Communicating Business result
32) Which of the following is a sub-field of accounting?
(a) Management Accounting (b) Cost Accounting
(c) Financial Accounting (d) All
33) Maintaining record of various assets is –
(a) To ascertain profit or loss of the business.
(b) To ensure that there is no unauthorized use or disposal of any asset or property of the
business.
(c) To fulfil statutory obligation.
(d) To have a professionally managed company.
34) Financial statements are used by:
(a) Creditors (b) Debtors (c) Investors (d) All
35) Which of one of the following types of information a long-term creditor would be interested to
gather while reading annual reports of an Enterprise?
(a) Profitability (b) Liquidity (c) Continuity (d) Solvency

4|UNIQUE ACADEMY FOR COMMERCE

36) Generally Accepted Accounting principles can be applied to the financial statements of which of
the following –
(a) Sole proprietor (b) Partnership firm (c) Corporate body (d) All
37) Refers to the general usage & practices in day-to-day social or economic life.
(a) Accounting Assumptions (b) Accounting Conventions
(c) Accounting policies (d) Accounting principles (GAAP)
38) All the following items are classified as fundamental accounting assumptions except:
(a) Consistency (b) Business entity (c) Going concern (d) Accrual
39) Fundamental accounting assumptions are:
(a) Going concern (b) Accrual (c) Consistency (d) All
40) Which of the following is not an accounting concept?
(a) Consistency (b) Accrual
(c) Realization (d) Going concern
41) Depreciation is charged on fixed assets due to which concept?
(a) Convention of Disclosure (b) Convention of Materiality
(c) Convention of Conservation (d) Going concern concept
42) Going concern concept assumes that:
(a) The business entity would continue to operate independent of the proprietor/owner
(b) Duration of the business is limited to the life span of the owner /proprietor
(c) Life of the business is defined by the contractual agreement
(d) Business is uncertain life
43) If Going concern concept is no longer valid, which of the following is true.
(a) All prepaid assets would be completely written off immediately
(b) The allowance for uncollectible accounts would be eliminated
(c) Intangible assets would continue to be carried at net amortised historical cost
(d) Land held as an investment would be valued at its realizable value
44) Fixed assets & current assets are categorized as per concept of:
(a) Separate entity (b) Going Concern (c) Consistency (d) Time period
45) “Advance received from customers is not taken as sale “is based on:
(a) Money measurement concept (b) Accrual concept
(c) Consistency concept (d) Conservative
46) ABC Co. whose accounting year begins on 1 April, has invested Rs. 50,000 with a bank on 1-10-
st

2020 for 1 year. The interest @ 12% p.a. will be paid on maturity on 01-10-2021. ABC Co. shows
Rs. 3,000 as interest receivable on the credit (income) side in the Profit & Loss A/c for the year
1st April 2020 to 31st March 2021-
(a) Interest measurement (b) Accrual (c) Dual aspect (d) Cost
47) Kanika Enterprises follows the written down value method of depreciating Machinery year after
year due to:
(a) Comparability (b) Convenience (c) Consistency (d) All
48) The capital contributed by the proprietor is treated as a liability according to –
(a) Cost Concept (b) Business Entity Concept
(c) Going concern Concept (d) Materiality Concept
49) Which of the following is an example of business entity concept?
(a) Provision for doubtful debts
(b) Treating cash withdrawn by the proprietor for personal use or goods taken for self-
consumption as drawing

5|UNIQUE ACADEMY FOR COMMERCE

 (c) Valuation of stock at cost or market prices whichever is less
(d) All
50) Select the wrong statement:
(a) Profit or loss belongs to the business only.
(b) Only business transaction rather than personal transaction of the owner/proprietor is subject
matter of accounting.
(c) Personal property /asset of the businessmen are not recorded as business property
(d) Business entity concept is applicable to corporate bodies only.
51) If a radio seller proprietor buys a radio for his personal use from out of business funds, the
amount paid for the Radio will be treated as “drawings” of the proprietor because of the.
(a) Dual aspect Concept (b) Going Concern Concept
(c) Business Entity Concept (d) Matching Concept
52) According to money measurement concept, currency transactions and events are recorded in
the books of accounts.
(a) In the ruling currency of the country in which transaction takes place
(b) In the ruling currency of the country in which books of accounts are prepared
(c) in the currency set by ministry of finance
(d) in the currency set by Government
53) Transactions and events not capable of being expressed in terms of money are not to be recorded
in accounting due to:
(a) Cost concept (b) Materiality Concept
(c) Realization Concept (d) Money Measurement concept
54) Money Measurement Concept lacks on the ground that:
(a) Any transaction /event in spite of being very important cannot be recorded in the books of
account, if it cannot be expressed in money.
(b) As per this concept, a transaction is recorded at its money value on the date of occurrence
a subsequent change in the money value is conveniently ignored.
(c) Both (a) and (b)
(d) Neither (a) nor (b)
55) The determination of expenses for an accounting period is based on the concept of:
(a) Objectivity (b) Materiality (c) Matching (d) Periodicity
56) The accounting convention of Matching means:
(a) Profit for the period to be matched with the sales revenue
(b) Profit for the period to be matched with the Investment
(c) Expenses of one period to be matched against the expenses of another period
(d) Expenses of one period to be matched against the revenue of the same period
57) The underlying accounting principle(s) necessitating amortization of intangible asset(s) is/are:
(a) Cost concept (b) Realization Concept (c) Matching concept (d) All
58) M purchased goods for Rs. 15,00,000 and sold 4/5 of the goods amounting Rs. 18,00,000 and met
th

expenses amounting Rs. 2,50,000 during the year 2022. He counted net profit as Rs. 3,50,000.
Which of the accounting concept was followed by him?
(a) Entity (b) Periodicity (c) Matching (d) Conservatism
59) Assets in the Balance Sheet are shown at cost rather than their market value because of the
accounting concept
(a) Cost (b) Disclosure (c) Realization (d) Money Measurement
60) Ignore the market value of Long-Term Assets-
(a) Going concern (b) Realization (c) Conservation (d) Cost

6|UNIQUE ACADEMY FOR COMMERCE

61) MR. A purchased a machinery costing Rs. 1,00,000 on 1st October ,2020. transportation and
installation charges were incurred amounting Rs. 10,000 and Rs. 4,000 respectively. Dismantling
charges of the old machine in place of which new machine was purchased amounted Rs. 10,000.
Market value of the machine was estimated at Rs. 1,20,000 on 31st March 2021. while finalizing the
annual accounts, A values the machinery at Rs. 1,20,000 in his books. which of the following
concepts was violated by which of the following concept was violated by A?
(a) Cost Concept (b) Matching Concept
(c) Realization concept (d) Periodicity concept
62) Assets acquired are recorded in the books:
(a) At historical Cost i.e., the acquisition cost (b) At market value
(c) At net Resizable value (d) Either (a), (b) or (c)
63) Revenue is generally recognized when earning process is virtually complete and significant risks
and rewards have been exchanged. What principle is described herein –
(a) Consistency (b) Matching (c) Realization (d) Conservation
64) Capital invested in by the proprietor is an example of:
(a) Increase in Assets and Increase in Liability
(b) Increase in Liability and decrease in Asset
(c) Increase in Assets and decrease in Liability
(d) Increase in one Asset and decrease in another asset
65) The Accounting Equation that ‘Assets = Capital + Liability’ is based on which of the following
concept:
(a) Dual Aspect concept (b) Going Concern Concept
(c) Money Measurement concept (d) Accounting policy
66) A purchased a car for Rs. 5,00,000 making a down payment of Rs. 1,00,000 and signing a Rs.
4,00,000 bill payable due in 60 days. As a result of this transaction –
(a) Total assets increased by Rs. 5,00,000
(b) Total liabilities increased by Rs. 4,00,000
(c) Total assets increased by Rs. 4,00,000
(d) Total assets increased by Rs. 4,00,000 with corresponding increase in liabilities by Rs.
4,00,000
67) When fixed assets are sold:
(a) Total assets will increase (b) Total liabilities will increase
(c) Total assets will decrease (d) There is no change in total assets
68) Double entry Principle means:
(a) Writing twice the same entry
(b) Writing all the entries twice in the book
(c) Having debit for every credit and credit for each debit
(d) All
69) Ram starts business with Rs 90,000 and then buys goods from Shyam on credit for Rs 23,000. The
accounting equation based on Assets Capital + Liabilities will be:
(a) 1,13,000 = 90,000+23,000 (b) 1,13,000 = 1,13,000+0
(c) 90,000 = 67,000+23,000 (d) 67,000 = 90,000-23,000
70) Which financial statement represents the accounting equation: ASSETS=LIABILITIES+OWNER’S
EQUITY
(a) Income statement (b) Cash flow statement
(c) Balance sheet (d) Funds flow statement
71) An asset was purchased for Rs.6,60,000. Cash was paid Rs. 1,20,000 and for the balance a bill
was drawn for 60 days. What will be the effect on Fixed Assets?

7|UNIQUE ACADEMY FOR COMMERCE

 (a) Rs. 1,20,000 (b) Rs. 5,40,000 (c) Rs. 6,60,000 (d) Nil
72) A businessman purchased goods for Rs. 25,00,000 and sold 70% of the such goods during the
accounting year ended 31st March, 2020. The market value of the remaining goods was Rs. 5,00,
000. He valued the closing stock at Rs. 5,00,000 and not Rs. 7,50,000 due to –
(a) Money measurement (b) Cost (c) Conservatism (d) Periodicity
73) Stock is valued at cost or market value whichever is less, is based on:
(a) Entity concept (b) Money Measurement concept
(c) Accrual concept (d) Conservation
74) Accounting to the Convention of Conservatism assessment of the stock of the business is done:
(a) On cost value
(b) On market value
(c) Cost value of Net Realizable value (NRV) whichever is lower
(d) Cost value of market value whichever is higher
75) Which of the following statements is correct?
(a) Conservatism concept demands that anticipated income should not be taken in to account
(b) Consistency demands that same amount of profit and loss be reported every year
(c) Disclosure concept requires that only immaterial information should be disclosed
(d) Business profit always increase cash in hand
76) When applied to the balance-sheet, the convention of conservatism results in:
(a) Understatement of assets (b) Understatement of liabilities and provisions
(c) Overstatement of capital (d) All
77) The verifiable objective evidence concept envisages the recording of all accounting transactions.
(a) Supported by verification by auditors
(b) Supported by object perception
(c) Supported by the object clause in the memorandum of association
(d) Supported by invoices, correspondence, vouchers and business documents
78) A proprietor. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking
into consideration the following amount:
(a) The cost of an asset of Rs. 25,000 has been taken as an expense
(b) Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his
books
(c) Salary of Rs. 7,000 payable in the financial year has not been taken in to account
(d) Mr. A purchased-on 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
On the basis of the above facts answer the following question from the given choices. What is
the correct amount of profit to be reported in the books?
(a) Rs. 1,25,000 (b) Rs. 1,35,000 (c) Rs. 1,50,000 (d) Rs. 1,33,000
79) What is the Amount of profit added to the Capital?
Capital as on 1-4-20 Rs 90,000
Capital introduced Rs 25,000
Drawings made Rs 35,000
Capital as on 31-3-21 Rs 1,25,000
What is the amount of profit added to the Capital?
(a) Rs 50,000 (b) Rs 60,000 (c) Rs 75,000 (d) Rs. 45.000
80) Calculate the closing capital from following details –
1. Suresh commenced business with cash Rs. 36,000
2. Paid rent in advance Rs. 300
3. Purchased for cash Rs. 18,000 & Credit Rs. 12,000
8| UNIQUE ACADEMY FOR COMMERCE
 4. Sold goods for cash Rs. 18,000 costing Rs. 12,000
5. Paid salary Rs. 300 and salary outstanding Rs. 60
6. Bought motorcycle for personal use Rs. 3,000
(a) Rs. 50,700 (b) Rs. 12,060
(c) Rs. 38,640 (d) Rs. 62,760
81) Calculate the total assets from the following details –
1. X invested Rs. 9,000 in cash.
2. Purchased securities for Rs. 4,500 in cash.
3. Purchased a home for staff Members Rs. 9,000 giving Rs. 3,000 in cash and balance through
a loan.
4. Sold securities costing Rs 600 for 900.
5. Purchased an old car for 1,680 in cash.
6. Received cash as salary Rs. 2,160.
7. Paid Rs. 300 for loan and Rs. 180 for interest.
8. Paid cash for household expenses Rs. 180.
9. Received cash for dividend on securities Rs. 120.
(a) Rs. 16,920 (b) Rs. 11,220 (c) Rs. 5,700 (d) Rs. 22,620
82) Capital of business is Rs. 75,000 and Liability is Rs. 25,000 then total assets of business would be
–
(a) Rs. 1,00,000 (b) Rs. 15,000 (c) Rs. 75,000 (d) Rs. 25,000
83) If assets –Rs. 36,000, Liabilities -Rs. 15,000, Capital is:
(a) Rs. 20,000 (b) Rs. 21,000
84) If Capital is –Rs. 15,000 & Liabilities are -Rs. 18,000 then the Total Assets are
(a) Rs. (-) 3,000 (b) Rs. 33,000
85) If total assets are –Rs. 42,000 & capital is Rs. 27,000, then Liabilities are
(a) Rs. 15,000 (b) Rs. 69,000
86) Opening Capital –Rs. 6,000; Profit –Rs. 3,000 Drawings Rs. 1,200; Fresh Capital Rs. 600 Closing
Capital?
(a) Rs. 4,800 (b) Rs. 8,400 (c) Rs. 10,800 (d) Rs. 6,600
87) If the capital on the last day of the year is Rs. 12,000; Loss during the year Rs. 600; drawings
during the year are Rs. 1,800 & fresh capital introduced during the year is Rs. 2,400 then what
is the amount of capital on the first day of the year.
(a) Rs. 12,000 (b) Rs. 14,400 (c) Rs. 13,200 (d) Rs. 16,800
88) If Capital on 1-1-20 =Rs. 12,000 Capital on 31-12-20=Rs. 6,000
Profit (loss) during the year = Rs. 3,000 Fresh capitals introduced =Rs. 600
Then the amount of drawings -
(a) Rs. 3,600 (b) Rs. 6,000 (c) Rs. 12,600 (d) Rs. 9,600
89) If the capital of M/s XYZ & Co. on the first & last day of the accounting year is Rs. 18,000 & Rs.
9,000 respectively. Profit/(Loss) for the year is (Rs. 4,800) & goods or cash withdrawn by
partners from business were Rs. 4,200. Then the amount of fresh capital introduced by partners
is –
(a) Nil (b) Rs. 9,000 (c) Rs. 4,800 (d) Rs. 27,000
90) Mr. X commenced chocolates business on 1 Jan 2009 with a capital of Rs. 18,000. On 31st
st

December 2009 her assets were worth Rs. 30,000 & liabilities of Rs. 6,000 Find out her closing
capital A/c balance at the end of the year-
(a) Rs. 24,000 (b) Rs. 6,000 (c) Rs. 30,000 (d) Rs. 12,000
91) T Hari Krishna started a business on 1.1.2021 with a capital of Rs. 10,00,000 & a loan of Rs.
5,00,000 borrowed from Balakrishna. On 31st December his assets were Rs. 30,00,000. Apart

9|UNIQUE ACADEMY FOR COMMERCE

 from loan, Hari Krishna owes Rs. 2,50,000 to Balkrishna (supplier of goods) find out his capital
on 31.12.21.
(a) Rs. 22,50,000 (b) Rs. 25,00,000 (c) Rs. 30,00,000 (d) Rs. 32,50,000
92) Chang started a business on 1-1-2021 with a capital of Rs. 6,000 & a loan of Rs. 13,000 borrowed
from Yang. During the year made a profit of Rs. 3,000. His capital on 31-12-21:
(a) Rs. 9,000 (b) Rs. 22,000 (c) Rs. 19,000 (d) Rs. 12,000
93) Shyam started a business on 1-1-2021 with a capital of Rs. 60,000 & a loan of Rs. 30,000 borrowed
from Mohan. He introduced additional capital of Rs. 30,000. Drawing made by him were Rs.
18,000. He made a profit of Rs. 30,000. Total Capital on 31-12-2021 would be:
(a) Rs. 1,02,000 (b) Rs. 1,32,000 (c) Rs. 1,20,000 (d) Rs. 1,42,000
94) As per AS-1, the fact must be disclosed with reasons in the financial statements if the following
concept is not followed:
(a) Matching (b) Going Concern Assumption (c) Conservatism (d) Realization
95) On 31-12-2022 total Assets & capital were Rs. 50,000 & Rs. 35,000 respectively Find out the
amount of liabilities as on 31-12-2022:
(a) Rs. 85,000 (b) Rs. 15,000 (c) Rs. 35,000 (d) Rs. 50,000
96) On 1-1-2020 Tulsa started a business with a capital of Rs. 10,000 & loan of Rs. 5,000 borrowed
from her husband Mihir. During 2020, she earned a profit of Rs. 5,000. On 31-12-2020 the total
Assets were Rs. 50,000. Find out liabilities on 31-12-2020-
(a) Rs. 35,000 (b) Rs. 30,000 (c) Rs. 40,000 (d) Rs. 50,000
97) On 1-1-2020 Manoj started a business with a capital of Rs. 10,000 & loan of Rs. 5,000 borrowed
from Kiran. During the year he earned a profit of Rs. 5,000. Introduced further capital of Rs.
6,000 & withdrawn Rs. 3,000 personal uses. On 31-12-2020 the total Assets were Rs. 50,000. Find
out liabilities on 31-12-2020-
(a) Rs. 32,000 (b) Rs. 27,000 (c) Rs. 50,000 (d) Rs. 35,000
98) Complete the missing amount for the following individuals
Particulars Tall Maal Baal
A/c Payable ? 5,000 2,000
A/c receivable 15,500 30,000 13,000
Loans given 2,700 5,000 2,500
Cash 5,970 5,500 8,000
Capital 49,000 57,500 ?
Office equipment 30,000 ? 12,000
Land 14,000 2,500 10,000
A/c payable of Tall:
(a) 19,170 (b) 13,770 (c) 21,870 (d) 34,670
99) Office equipment of Maal:
(a) 19,500 (b) 29,500 (c) 22,000 (d) 25,000
100) Capital of Baal:
(a) 38,500 (b) 43,500 (c) 41,500 (d) 33,500

ANSWERS:

1) (c) 4) (a) 7) (a) 10) (d)

2) (b) 5) (d) 8) (d) 11) (b)
3) (b) 6) (c) 9) (b) 12) (a)

10 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 13) (d) 35) (d) 57) (c) 79) (d)
14) (c) 36) (d) 58) (c) 80) (c)
15) (d) 37) (b) 59) (a) 81) (a)
16) (a) 38) (b) 60) (d) 82) (a)
17) (a) 39) (d) 61) (a) 83) (b)
18) (a) 40) (d) 62) (a) 84) (b)
19) (b) 41) (d) 63) (c) 85) (a)
20) (a) 42) (a) 64) (a) 86) (b)
21) (a) 43) (d) 65) (a) 87) (a)
22) (c) 44) (b) 66) (d) 88) (d)
23) (b) 45) (b) 67) (d) 89) (a)
24) (d) 46) (b) 68) (c) 90) (a)
25) (d) 47) (c) 69) (a) 91) (a)
26) (a) 48) (b) 70) (c) 92) (a)
27) (b) 49) (b) 71) (c) 93) (a)
28) (d) 50) (d) 72) (c) 94) (b)
29) (d) 51) (c) 73) (d) 95) (b)
30) (a) 52) (b) 74) (c) 96) (a)
31) (b) 53) (d) 75) (a) 97) (a)
32) (d) 54) (c) 76) (a) 98) (a)
33) (b) 55) (c) 77) (d) 99) (a)
34) (d) 56) (d) 78) (d) 100) (b)

1) An expenditure is capital in nature when:

(a) The receiver of the amount is going to treat it for the purchases of fixed assets
(b) It increases the quantity of Fixed Assets
(c) It is paid as interests on loans for the business
(d) It maintains a fixed asset
2) An expenditure is called capital expenditure when:
(a) The amount is paid in lump-sum (b) The amount is large
(c) It is intended to benefit in the current period
(d) It is intended to benefit in the future period
3) The term Capital Expenditure is generally used to signify that expenditure which:
(a) Increases quality of Fixed Asset (b) Increases quantity of Fixed Asset
(c) Results in Improvement of Fixed Asset (d) All
4) Which of the following is a Capital Expenditure?
(a) Cost of a standby equipment (b) Cost of purchase of goods for resale
(c) Repair of a second-hand equipment (d) Annual maintenance of computer systems
5) Capital expenditures are recorded in the_______.
(a) Balance Sheet (b) Profit & Loss A/c
(c) Trading A/c (d) Manufacturing A/c
6) Money spent Rs. 20,000 as traveling expenses of directors on trips abroad for purchase of
Capital Assets is:
(a) Capital expenditures (b) Revenue expenditures
(c) Deferred revenue expenditures (d) None
7) Amount spent, for construction of temporary huts, necessary for construction of the cinema
house & demolished when the cinema house was ready is a:

11 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
8) Rs. 25,000 spent on structural alterations to existing asset whereby revenue earning capacity is
increased is:
(a) Capital Expenditure (b) Deferred Revenue Expenditure
(c) Revenue Expenditure (d) None
9) Rs.1500 spent on repairs before using a second-hand car purchased recently is a _______.
(a) Capital Expenditure (b) Revenue Expenditure
(c) Deferred Revenue Expenditure (d) None
10) Rings & pistons of an engine were changed at a cost of Rs.5000 to increase fuel efficiency is:
(a) Capital Expenditure (b) Revenue Expenditure
(c) Deferred Revenue Expenditure (d) Name of the above
11) The expired portion of capital expenditure is shown in the financial statements as:
(a) As an income (b) As an expense (c) As an asset (d) As a liability
12) Insurance claim received on account of loss of machinery by fire is:
(a) Capital Receipt (b) Revenue Receipt
(c) Capital Expenditures (d) Revenue Expenditures.
13) Which one of the following is a capital expenditure?
(a) Compensation paid to Directors on termination of their services
(b) Expenditure incurred in connection with the renewal of a Trade Mark fee
(c) Gratuities aid to employees on their retirement
(d) Royalty paid in lump sum for the purchases of rights to manufacture & sell patent medicines
14) Which of the following is NOT a capital expenditure?
(a) Legal expenses incurred in raising a debenture loan
(b) Compensation paid to a dismissed employee
(c) Brokerage paid to the broker at the time of purchase of land
(d) Expenses for pulling down an old structure
15) Expenditure incurred in preparing a project report:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
16) Premium paid in connection with acquisition of leasehold premises:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
17) Invested Rs.2 Lakhs on the purchase of 2,000 equity shares of Rs. 100 each of a subsidiary
company:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
18) Office rent in advance for 3 years (Similar to deposit):
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
19) Rs. 50,000 invested in a government bond:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
20) Cost of Goodwill:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
21) Spent towards additions to machinery in order to double the production, Rs. 40,000:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None

12 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 22) Rs. 15,000 customs duty was paid on import of a machinery for modernization of factory in the
current year & Rs. 5,000 paid as import duty on raw materials:
(a) Revenue Expenditure, Revenue Expenditure
(b) Capital Expenditure, Revenue Expenditure
(c) Capital Expenditure, Capital Expenditure
(d) Revenue Expenditure, Capital Expenditure
23) Demolition of old building, book value Rs. 10,000 & constructing new building at its site for
Rs.1,50,000:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
24) A sum of Rs. 10,000 spent for alteration of existing plant incorporating thereby new devices which
could affect substantial reduction in power consumption:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
25) A petrol engine of a passenger bus was replaced by a diesel engine:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (c) None
26) Installed freezer container in place of ordinary container in a truck to enable transport of milk:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
27) Payment for acquiring rights for a sole-selling agency:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
28) Payment made to partners of another firm for acquiring the business of that firm:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
29) Purchased 4% Government Securities of Rs. 40,000 at Rs. 39,000:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
30) Received from Jairam & Co., a bill for Rs. 15,000 for erection of additional Factory Sheds:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
31) Inauguration expenses of Rs.25 Lakhs for opening of new manufacturing unit in existing business:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
32) Materials purchased but used for the erection of new office block for the firm's use:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
33) A machine with a written down value of Rs. 10,000 has been sold for Rs. 13,000. The amount
realized is a:
(a) Capital receipt & profit involved should be transferred to capital reserve
(b) Revenue receipt
(c) Capital receipt & profit involved should be transferred to General reserve
(d) Capital receipt & profit involved should be transferred to profit & loss A/c
34) Amount received from landlord as compensation for surrender of tenancy rights to shop of the
concern:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) Capital Receipt
35) Gift received from father of proprietor deposited in bank account of concern:
(a) Revenue expenditure (b) Capital expenditure

13 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Deferred revenue expenditure (d) Capital receipt
36) An expenditure is revenue in nature, when:
(a) It benefits the current period (b) It benefits the future period
(c) It belongs to the previous period (d) None
37) Which of the following is revenue expenditure?
(a) Freight paid on purchase of Plant & Machinery
(b) Legal expenses paid to acquire a property
(c) Expenses to reduce working capital requirement
(d) Annual White wash of the factory building
38) Cost of Goods purchased for resale is an example of:
(a) Capital Expenditure (b) Revenue Expenditure
(c) Deferred Revenue Expenditure (d) None
39) Amount of Rs. 10,000 spent as lawyers' fee to defend a suit claiming the firm's factory site is:
(a) Capital Expenditures (b) Revenue Expenditures
(c) Deferred Revenue Expenditures (d) None
40) Rs. 10,000 spent on the replacement of worn-out parts of an electronic machinery is:
(a) Capital Expenditure (b) Revenue Expenditure
(c) Deferred Revenue Expenditure (d) Capital Loss
41) Which one of the following will be treated as revenue expenditure?
(a) Cost incurred for a new exit in a cinema hall as required under the local bodies bye laws
(b) Interest paid on loan during construction of factory
(c) Cost of pulling down old building & also payment made to the architect for plan of a new
building
(d) Payment to Contractor for construction of building
42) Expenses incurred in manufacturing products is a:
(a) Revenue expenses (b) Deferred revenue expenses
(c) Capital expenses (d) Either (b) or (c)
43) Expenditure to train employees for better running of machinery:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
44) Expenditure incurred for repairing cinema screen:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
45) All expenditures & receipts of revenue nature go to:
(a) Trading A/c (b) Profit & Loss A/c
(c) Balance Sheet (d) Either to (a) or (b)
46) Amount spent on uniform of workers:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
47) Import duty on raw material purchased:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
48) Fees paid for renewal of licence for factory:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
49) Goods worth Rs. 27,000 distributed free amongst the workers on Diwali Pooja day:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
50) Spent Rs. 39,600 on research, but subsequently project was abandoned by the management:

14 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
51) If repair cost is Rs. 25,000, whitewash expenses are Rs. 5,000, cost of extension of building is
Rs.2,50,000 & cost of improvement in electrical wiring system is Rs. 19,000; the amount to be
expensed is:
(a) Rs.2,99,000 (b) Rs.44,000 (c) Rs.30,000 (d) Rs.49,000
52) Taxes paid:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
53) Rs. 5,000 spent on maintenance of plant & machinery is:
(a) Capital expenditure. (b) Revenue expenditure.
(c) Deferred capital expenditure. (d) None
54) Purchase of machinery for sale:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
55) Stock of Rs. 25,000 was destroyed by fire of which Rs. 15,000 was received from Insurance
Company:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
56) Compensation paid to a retrenched employee for loss of employment:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
57) Rs. 2,000 was paid in connection with carriage on goods purchased:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
58) Wages paid to workers for converting raw materials into finished products:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
59) Rs. 10,000 paid for removal of Stock to a new site:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
60) Visit of a safes manager abroad, total cost Rs. 16,000 for promoting export sales; visit was quite
successful:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
61) Imported goods worth Rs. 25,000 confiscated by custom authority for non-disclosure of material
facts:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
62) Expenses on celebration of annual day/staff picnic/sports day:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
63) Gratuity & pension paid to employees after retirement:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
64) Cost of rain coats & umbrellas for employees who are given the same every 2 years:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
65) Paid Audit Fees Rs. 10,000:
(a) Revenue expenditure (b) Capital expenditure

15 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Deferred revenue expenditure (d) None
66) Purchased a Drill Machine for Rs. 5,000 with useful life of 1 year is:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
67) Received from Joy Electricals Co., a bill for Rs. 6,000 for cost of replacing old electrical
installation in Factory:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
68) Labour welfare expenses:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
69) Employees State Insurance premium Rs.600 paid:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
70) Cost of hiring a Motor Van:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
71) Payment for heavy inaugural expenses:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
72) Bad debts recovered during the year is a:
(a) Capital Expenditures (b) Revenue Expenditures
(c) Capital Receipt or Gain (d) Revenue Receipt
73) Claim amount received from Insurance company for loss of profit under Loss of Profit Policy when
business was suspended due to fire in the premises:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) Revenue Receipt
74) Interest received on loans given:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) Revenue receipt
75) Amount received from a Sundry Debtor:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) Revenue Receipt
76) Commission received on Sales:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) Revenue receipt
77) Which is deferred revenue expenditure?
(a) High legal expenses incurred by the company to defend legal suit of Rs.10 Lakhs
(b) Sales promotion expenses amounting to Rs. 50,000
(c) Rs. 10,000 spent on dismantling of Plant & Machinery
(d) All
78) A sum of Rs. 50,000 was spent by factory, overhauling its existing plant & machinery. It has
enhanced its working life by 5 years. The aforesaid expenditure is:
(a) Revenue Expenditure (b) Deferred revenue Expenditure
(c) Capital Expenditure (d) Partly Capital & Partly Revenue
Expenditure
79) Preliminary expenses are an example of:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) All
80) Discount allowed on issue of shares is an example of:

16 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Capital Expenditure (b) Revenue Expenditure
(c) Deferred Revenue Expenditure. (d) General Expenses
81) Amount spent on an advertisement campaign, the benefit of which is likely to last for three years
is a:
(a) Capital Expenditure (b) Revenue Expenditure
(c) Deferred Revenue Expenditure (d) Contingent Expenditure
82) Legal expenses in connection with issue of capital:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
83) Brokerage paid in connection with issue of debentures repayable after 6 years:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
84) Contribution to co-operative society managing the industrial estate in which factory is located,
for construction of internal roads in the estate:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
85) Repainting of building done every 3 years:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred revenue Expenditure (d) None
86) Paid fees Rs. 6,000 to the Association for 3 Years:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
87) Cost of carrying out experiment to modify a product:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
88) Compensation of Rs.2.50 Crores paid to workers, who opted for voluntary retirement:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Deferred Revenue Expenditure (d) None
89) Which of the following is capital profit?
(a) Premium paid on redemption of debentures
(b) Profit on sale of shares held as stock in trade
(c) Premium received on issue of shares
(d) Dividend received on shares held as permanent investment
90) Money embezzled by an employee of a trader is:
(a) Capital Expenditure (b) Revenue Expenditure
(c) Capital Loss (d) Revenue Loss
91) One time entrance fee of Rs.20,000 received by a Club is a:
(a) Capital Receipt (b) Revenue Receipt
(c) Capital Expenditure (d) Revenue Expenditure
92) Rs. 20,000 received from an issue of further shares, the expenses of issue being Rs. 2,500.
(a) Capital Expenditure Rs. 20,000 & Revenue Expenditure Rs. 2,500
(b) Capital Receipt Rs. 20,000 & Deferred Revenue Expenditure Rs.2,500
93) Rs. 75,000 being cost of land purchased for agricultural farm & Rs.450 paid for land & revenue.
(a) Revenue Expenditure Rs.450 & Capita! Expenditure Rs. 75,000
(b) Capital Loss Rs. 75,000 & Deferred Revenue Expenditure Rs.450
94) Mr. Alok runs a shop of cosmetics. During the year, he incurred Rs. 23,000 for advertisement in
newspapers & Rs. 50,000 for neon-sign board at airport. How would you treat such expenses?
(a) Capital Expenditure Rs. 50,000 & Revenue Expenditure Rs. 23,000
(b) Revenue Loss Rs.50,000 & Capital Loss Rs.23,000

17 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 95) A Second Hand Car is purchased for Rs. 10,000, Rs. 1,000 is spent on repairs, Rs.500 incurred to
get the car registered in owner's name & Rs. 1,200 paid as dealer's commission. Amount debited
to car account will be:
(a) Rs.10,000 (b) Rs.10,500 (c) Rs.11,500 (d) Rs.12,700
96) A Motor Car which was purchased for Rs. 20,000 had its book value Rs. 12,000 was sold for Rs.
25,000 the capital profits will be:
(a) Rs.5,000 (b) Rs.8,000 (c) Rs.13,000 (d) Rs.25,000
97) If repair cost is Rs. 20,000, whitewash expenses are Rs. 10,000, cost of extension of building is
Rs.2,50,000 & cost of improvement in electrical wiring system is Rs. 20,000 the amount of revenue
expenses will be:
(a) Rs.2,70,000 (b) Rs.3,00,000 (c) Rs.30,000 (d) Rs.50,000
98) The cash price of a machine is Rs.1,20,000 & its hire purchased price is Rs.1,50,000 to be paid in
five equal yearly instalments. If a company purchases the machine on hire purchase basis, the
amount of capital expenditure will be:
(a) Rs.1,20,000 (b) Rs.1,35,000 (c) Rs.1,50,000 (d) Rs.1,60,000
99) Rs. 99,500 was spent for dismantling, removing & reinstalling of Plant, Machinery & Fixtures:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None
100) The removal of stock from the old factory to the new at a cost Rs. 1,000:
(a) Revenue expenditure (b) Capital expenditure
(c) Deferred revenue expenditure (d) None

ANSWERS:

1) (b) 25) (b) 49) (a) 73) (d)

2) (d) 26) (b) 50) (a) 74) (d)
3) (d) 27) (b) 51) (c) 75) (d)
4) (a) 28) (b) 52) (a) 76) (d)
5) (a) 29) (b) 53) (b) 77) (a)
6) (a) 30) (b) 54) (a) 78) (b)
7) (b) 31) (b) 55) (a) 79) (c)
8) (a) 32) (b) 56) (a) 80) (c)
9) (a) 33) (d) 57) (a) 81) (c)
10) (a) 34) (d) 58) (a) 82) (c)
11) (b) 35) (d) 59) (a) 83) (c)
12) (a) 36) (a) 60) (a) 84) (c)
13) (d) 37) (d) 61) (a) 85) (c)
14) (b) 38) (b) 62) (a) 86) (c)
15) (b) 39) (b) 63) (a) 87) (c)
16) (b) 40) (b) 64) (a) 88) (c)
17) (b) 41) (a) 65) (a) 89) (c)
18) (d) 42) (a) 66) (a) 90) (d)
19) (b) 43) (a) 67) (a) 91) (a)
20) (b) 44) (a) 68) (a) 92) (b)
21) (b) 45) (d) 69) (a) 93) (a)
22) (b) 46) (a) 70) (a) 94) (a)
23) (b) 47) (a) 71) (a) 95) (d)
24) (b) 48) (a) 72) (d) 96) (a)

18 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 97) (c) 98) (a) 99) (b) 100) (a)

1) Recording of a transaction in a journal is called -

(a) Posting (b) Entry (c) Transfer (d) Ruling
2) What is the order in which the accounting transactions & events are recorded in the books?
(a) Journal, Subsidiary books, Ledger, Balance Sheet, Profit & Loss Account (P&L Account)
(b) Ledger, Journal, Ledger, Balance Sheet, P&L A/c
(c) Journal, Ledger, Profit & Loss A/c, Balance Sheet
(d) Profit & Loss A/c, Ledger, Balance Sheet, Journal
3) Personal Accounts are related to -
(a) Assets & Liabilities (b) Expenses, Losses & Incomes
(c) Debtors, Creditors etc (d) All
4) Real accounts are related to -
(a) Assets (b) Expenses, losses & incomes
(c) Debtors, Creditors etc. (d) All
5) Nominal Accounts are related to -
(a) Assets & Liabilities (b) Expenses, losses & incomes, gains
(c) Debtors, Creditors etc. (d) All
6) Narrations are given at the end of -
(a) Final Accounts (b) Trial Balance
(c) Each Ledger Account (d) Each Journal Entry
7) Which of the following statement is true-
(a) Building account is a nominal account
(b) Outstanding rent a/c is a non-personal account
(c) Every debit has a corresponding credit
(d) Incomes are debited
8) Which of the account is debited -
(a) Income received in advance (b) Bank loan
(c) Prepaid insurance premium (d) Reserve for doubtful debts.
9) Income earned & collected results in -
(a) Increase of assets & increase in Capital
(b) Decrease in assets & increase in Capital
(c) Increase in assets & decrease in Liability
(d) Decrease in assets & increase in Liability
10) Payment received from debtor -
(a) Decreases the Total Assets (b) Increases the Total Assets
(c) Results in no change in the total assets (d) Increase the total liabilities
11) Debit means -
(a) An increase in Asset (b) An increase in Liability
(c) (a) decrease in Asset (d) An increase in Proprietor's Equity.
12) Credit means -
(a) An increase in Asset (b) An increase in Liability
(c) A decrease in Liability (d) A decrease in Proprietor's Equity.
13) Which of the following is a credit transaction?
(a) Sold goods (b) Sold goods for cash
(c) Sod goods to a customer for cash (d) Sold goods to a customer
14) Purchase of furniture for cash would -
(a) Increase fixed assets & reduce current assets
(b) Reduce fixed assets & increase current assets
(c) Increase total assets (d) Both (a) & (b)
15) Which of the following is a Fictitious Asset?
(a) Goodwill (b) Depreciation Reserve
(c) Preliminary expenses A/c (d) Claims receivable
16) Basic rule of book-keeping "Debit what comes in & Credit what gods out" is applicable to -

19 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Personal Account (b) Nominal Account (c) Real account (d) None
17) Basic rule of book-keeping "Debit all expenses & Credit all Incomes / Gains" applicable to -
(a) Real account (b) Nominal account (c) Personal (d) None
18) Basic rule of book-keeping "Debit the Receiver & Credit the Giver" applicable to-
(a) Personal Account (b) Real Account (c) Nominal Account (d) None
19) Payment of salary is recorded by -
(a) Debiting salary a/c crediting cash a/c
(b) Debiting cash a/c crediting salary a/c
(c) Debiting employee a/c crediting cash a/c
(d) Debiting employee a/c crediting salary a/c
20) Purchase of Goods on credit from (a) is recorded as -
(a) Debit purchases A/c; Credit cash A/c (b) Debit (a) A/c; Credit purchase A/c
(c) Debit purchases A/c; Credit (a)'s A/c (d) Debit stock A/c; Credit purchases A/c
21) Goods returned by x is entered as -
(a) Debit X a/c; Credit purchase return 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
22) On purchase of a machine, Rs.200 was paid to workers as wages for installing the machine-
(a)Wages A/c be debited (b) Installation charges A/c debited
(c) Machinery A/c be debited (d) Cash A/c debited
23) The cash discount allowed to a debtor should be credited to -
(a) Discount Account (b) Customer's Account (c) Sales Account (d) None
24) The rent paid to landlord is credited to -
(a) Landlord's account (b) Rent account (c) Cash account (d) None
25) In case of a debt becoming bad, the amount should be credited to -
(a) Debtors account (b) Bad debts account
(c) Cash account (d) Sales account
26) Which account is not a Fixed Asset?
(a) Office Furniture & Equipment (b) Freehold land & buildings
(c) Stock of Materials (d) Plant & Machinery
27) Debts written off as bad, if recovered subsequently are -
(a) Credited to Bad Debts Recovered Account (b) Credited to Debtors Account
(c) Debited to profit & Loss Account (d) None
28) (a) withdrawal of cash from business by the proprietor of the firm should be credited to -
(a) Capital account (b) Cash account
(c) Drawing account (d) Proprietor's account
29) Consider the following adjusting entries –
1. Outstanding expenses Expense A/c Dr.
To O/s Expense A/c
2. Prepaid expenses Expense A/c Dr.
To Prepaid Expenses A/c
3. Income earned & not received Income A/c Dr.
To O/s Income A/c
4. Income received in advance Income A/c Dr.
To Pre-Earned Income A/c
Which of the adjusting entries given is / are correct?
(a) 1 Only (b) 2 & 3 (c) 1 & 4 (d) 1, 2, 3, & 4
30) We will debit Mr. A's account when
(a) A gets goods, services or assets on credit from us
(b) We get money from Mr. A on loan
(c) We get goods, services or assets on credit from Mr. A
(d) We get money from Mr. A "on account"
31) Journal entry for Rs.6,000 stolen from the safe of the firm will be

20 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Dr. P & L A/c & Cr. Cash embezzlement a/c Rs. 6,000.
(b) Dr. Cash embezzlement a/c & Cr. Cash a/c Rs. 6,000.
(c) Dr. Cash a/c & Cr. P& L a/c Rs. 6,000
(d) None
32) Goods purchased from Rekha on credit. In this transaction the names of two accounts affected
are -
(a) One Personal & one Nominal (b) Both Personal
(c) Both Real accounts (d) One Personal & one Real
33) Kiran used the amount in business by selling his old personal car to Surya. The entry of this
transaction in Journal will be -
(a) Cash a/c Dr. To Car a/c (b) Car a/c Dr. To Capital a/c
(c) Car a/c Dr. To Sonu a/c (d) Cash a/c Dr. To Capital a/c
34) The owner of the business took goods worth Rs.15,600 for his personal use. In this transaction
which account will be credited -
(a) Sales a/c (b) Drawings a/c
(c) Purchases a/c (d) Capital a/c
35) Interest earned but not received, adjustment entry is -
(a) Accrued Interest Dr. To Customer (b) Accrued interest Dr. To Interest
(c) Cash a/c Dr. To Interest (d) None
36) Goods worth Rs.1,600 sold to Neeraj, its recording in Journal would be-
(a) Debit the Sales Account, credit Neeraj Account
(b) Credit the Sales Account, debit the cash Account
(c) Debit Neeraj Account, credit the sales Account
(d) Debit Sales Account & Neeraj Account
37) Stock worth Rs.10,000 (cost price Rs.7,500) taken by Mohan-Office Clerk. Amount to be deducted
from his salary in the subsequent month. Journal entry will be -
(a) Dr Salary & Cr Purchases A/c Rs.10,000 (b) Dr Mohan & Cr Sales Rs.10,000
(c) Dr Salary & Cr Purchases Rs.7,500 (d) Dr Salary & Cr Sales Rs.10,000
38) Insured goods were lost due to theft & the Insurance Company accepted the claim. In this
transaction -
(a) Loss Dr. to Stock A/c (b) Loss Dr. to Insurance Claim Receivable A/c
(c) Loss Dr. to Cash A/c (d) Loss Dr. to Trading A/c
39) Ganesh's salary is Rs. 10,000 per month. During a month, he withdrew goods worth Rs. 2,500 for
personal use & also got salary Rs. 9,500 in cash. The excess payment of Rs. 2,000 will be debited
to -
(a) Sales a/c (b) Goods a/c (c) Salary a/c (d) Salary in advance a/c
40) Income-tax of the sole trader paid is shown -
(a) Debited to profit & Loss A/c (b) Debited to Trading A/c
(c) Debited to his capital A/c (d) None
41) Which of the following A/c has a debit balance?
(a) Debtors A/c (b) Sales A/c (c) Creditors A/c (d) Bank overdraft A/c
42) Which of the following A/c has a credit balance?
(a) Purchase A/c (b) Sales A/c (c) Goodwill A/c (d) Cash in hand A/c
43) Debit balance in a personal A/c means -
(a) Amount due from him (b) Amount due to him
(c) Discount allowed to him (d) Goods sold to him
44) Expenses A/c will always have -
(a) Debit balance (b) Credit balance
(c) Nil balance (d) Debit or credit balance
45) Journal entry for wages paid Rs.2,000 for installation of machinery will be _____.
(a) Dr. Wages A/c & Cr. Cash A/c Rs.2,000
(b) Dr. Machinery A/c & Cr, Cash A/c Rs.2,000
(c) Dr. Machinery repairs A/c & Cr. Cash A/c Rs.2,000
(d) None

21 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 46) Income tax liability of the proprietor Rs.1,200 was paid out of petty cash. Journal entry will be
—
(a) Dr. drawings & Cr. Cash A/c Rs.1,200 (b) Dr. drawings & Cr. Petty Cash Rs.1,200
(c) Dr Income tax & Cr Cash A/c Rs.1,200 (d) None
47) B started business by bringing in cash Rs. 3,000, goods worth Rs. 4,000 & vehicle worth Rs 5,000

(a) Assets A/c Dr. 12,000

To B's Capital A/c 12,000
(b) Cash A/c Dr. 3,000
Stock A/c Dr. 4,000
Vehicle A/c Dr. 5,000
To B's Capital A/c 12,000
(c) B’ Capital A/c Dr. 12,000
To Cash A/c 3,000
To Purchase A/c 4,000
To Vehicle A/c 5,000
(d) None of the above
48) B purchased goods worth Rs. 8,000 from X & paid him Rs. 2,000 –
(a) Cash A/c Dr. 2,000
X’ s A/c Dr. 6,000
To Goods A/c 8,000
(b) Purchase A/c Dr. 8,000
To Cash A/c 6,000
To X's A/c 2,000
(c) Purchase A/c Dr. 8,000
To Cash A/c 6,000
To Discount A/c 2,000
(d) Purchase A/c Dr. 8,000
To Cash A/c 2,900
To X's A/c 6,000
49) B sold goods worth Rs. 3,000 to A who paid him Rs. 1,000 immediately –
(a) Cash A/c Dr. 1,000
A's A/c Dr. 2,000
To B's A/c 3,000
(b) Cash A/c Dr. 3,000
To Sales A/c 3,000
(c) Sales A/c Dr. 3,000
To A's A/c 2,000
To Cash A/c 1,000
(d) Cash A/c Dr. 1,000
A's A/c Dr. 2,000
To Sales A/c 3,000
50) B took goods worth Rs. 1,000 & cash Rs. 2,500 for his own use-

(a) B's Drawings A/c Dr. 3,500

To Purchases A/c 1,000
To Cash A/c 2,500
(b) B's Drawings A/c Dr. 3,500
To Sales A/c 1,000
To Cash A/c 2,500

22 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) B's Capital A/c Dr. 3,500
To Goods Taken by B A/c 1,000
To B's Drawings A/c 2,500
(d) Goods Taken by B A/c Dr. 1,000
Cash A/c Dr. 2,500
To B's Drawings A/c 3,500

ANSWERS:

1) (b) 14) (a) 27) (a) 40) (c)

2) (c) 15) (c) 28) (a) 41) (a)
3) (c) 16) (c) 29) (c) 42) (b)
4) (a) 17) (b) 30) (a) 43) (a)
5) (b) 18) (a) 31) (b) 44) (a)
6) (d) 19) (a) 32) (d) 45) (b)
7) (c) 20) (c) 33) (d) 46) (b)
8) (c) 21) (c) 34) (c) 47) (b)
9) (a) 22) (c) 35) (b) 48) (d)
10) (c) 23) (b) 36) (c) 49) (d)
11) (a) 24) (c) 37) (c) 50) (a)
12) (b) 25) (a) 38) (b)
13) (d) 26) (c) 39) (d)

1) Purchases book is used to record -

(a) All purchases of Goods (b) All Credit Purchases
(c) All Credit purchases of Goods (d) All Credit purchases of assets other than Goods
2) Goods bought from Mr. P, the payment for which is due after a month -
(a) Cash Book (b) Purchase Book (c) Sales Book (d) Purchase Return Book
3) A periodic total of the Purchases Book is -
(a) Posted to the debit of the Purchases Account
(b) Posted to the debit of the Sales Account
(c) Posted to the credit of the Purchases Account
(d) Posted to the credit of Sales A/c
4) Sales Book is used to record -
(a) All sales of goods (b) All credit sales
(c) All credit sales of assets other than goods (d) All credit sales of goods
5) Transactions recorded in sales book are posted to -
(a) On the debit side of customer's accounts (b) On the credit side of sales returns A/c
(c) Nowhere (d) Either (a) or (b).
6) Purchases Returns Book is used to record -
(a) Returns of goods purchased for cash
(b) Returns of fixed assets purchased on credit
(c) Returns of good purchased on credit
(d) Purchase of goods.
7) Total of Purchases Returns Book is posted to the ledger -
(a) On the credit sale of purchases
(b) On the credit side of the Purchases Returns A/c
(c) On the debit side of purchases returns A/c
(d) Either (b) or (c)

23 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 8) A debit note issued to a creditor for goods returned by us is to be recorded in the -
(a) Bills Receivable Book (b) Purchases Book
(c) Journal proper (General Journal) (d) Purchases Return Book
9) When the goods are returned to a supplier -
(a) An invoice is sent to him (b) A debit note is sent to him
(c) A credit note is sent to him (d) A receipt is sent to him
10) Goods Outward Journal is meant for recording all returns of goods -
(a) Sold on credit (b) Purchased on credit (c) Purchased on cash (d) None
11) Sales returns book is used to record -
(a) Returns of fixed assets sold on credit (b) Returns of goods sold for cash
(c) Returns of good sold on credit (d) Sales of goods.
12) Total Sales Returns Book is posted to the ledger -
(a) On the debit side of sales return A/c (b) On the credit side of sales returns A/c
(c) On the debit of sales A/c (d) Nowhere.
13) When a customer returns the goods -
(a) An invoice is sent to him (b) A debit note is sent to him
(c) A credit note is sent to him (d) A receipt is sent to him.
14) Total of Bills Receivable Book is posted to the ledger -
(a) On the Credit side of Bills Payable A/c (b) On the Debit side of Bills Receivable A/c
(c) Nowhere (d) Either (a) or (b)
15) Total of Bills Payable Book posted to the ledger -
(a) On the debit side of Bills Payable A/c (b) On the credit side of Bills Payable A/c
(c) Nowhere (d) Either (a) or (b),
16) Closing entries are recorded in -
(a) Cash Book (b) Ledger (c) Journal proper (d) Balance sheet
17) The following is entered in the Journal Proper -
(a) Purchase of an asset for cash (b) Purchase of an asset on credit
(c) Purchase of goods for cash (d) Purchase of goods on credit
18) Rectifying the error of a credit purchase of goods recorded as credit sale discovered two
months later, the entry with be in -
(a) Journal Proper (General Journal) (b) Sales Book
(c) Cash Book (d) Purchase Book
19) A bills receivable received from a debtor is dishonoured on due date will be recorded in -
(a) Purchases Return Book (b) Bills receivable Book
(c) Purchases Book (d) Journal Proper (General Journal)
20) Journal proper is used to record -
(a) All cash purchases of assets other than goods
(b) All cash sales of assets purchased on credit
(c) Returns of fixed assets purchased on credit
(d) Recovery of amount already written off as bad debts
21) Goods received from the manufacturer for distribution among the customers as free samples -
(a) Expense Book (b) Purchase Book (c) Cash Book (d) Journal Proper
22) Credit purchase of stationery worth Rs. 5,000 by a stationery dealer -
(a) Purchase Book (b) Sales Book
(c) Cash Book (d) Journal Proper (General Journal)
23) A bills receivable of Rs. 1,000, which was received from a debtor in full settlement for a claim
of Rs. 1,000, is dishonoured -
(a) Purchases Return Book (b) Bills Receivable Book
(c) Purchases Book (d) Journal Proper (General Journal)
24) Credit purchase of Goods -
(a) Cash Memo, Purchase Book (b) Purchase Invoice, Cash Book
(c) Expense Voucher, Purchase Book (d) Purchase Invoice & Purchase Book
25) Return of goods purchased -
(a) Return Note, Purchase Book

24 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (b) Debit Note, Purchase Returns Book
(c) Debit Note, Purchase Book
(d) Credit Note, Purchase Book
26) Credit sale of Goods -
(a) Sale Invoice, Cash Memo (b) Credit Note, Sales Book
(c) Sale Invoice & Sales Book (d) Sale Invoice, Journal Proper
27) Return of goods sold -
(a) Credit Note (CN.) & Sales Returns Book (b) Credit Note, Sales Book
(c) Debit Note, Journal Proper (d) Debit Note, Sales Return Book
28) Bad Debt Written Off-
(a) Journal voucher, Sale Book (b) Journal Voucher & Journal Proper
(c) Debit Note, Journal Proper (d) Credit Note, Journal Proper
29) Credit Sale is debited to the account of -
(a) Customer (b) Supplier (c) Sales (d) None
30) Credit Purchase is credited to the account of -
(a) Purchase (b) Supplier (c) Customer (d) None
31) Debit Note is sent by the -
(a) Seller (b) Buyer (c) Banker (d) None
32) Invoice is sent by the -
(a) Seller (b) Buyer (c) Lender (d) None
33) Parties' Accounts are debited for ____ sale of goods.
(a) Cash (b) Credit (c) Retail (d) None
34) Credit Sales are recorded in Sales Book after_____ trade discount from catalogue price -
(a) Adding (b) Deducting (c) Ignoring (d) None
35) Excise duty is _____ while ascertaining the price to be recorded in Day Book -
(a) Added (b) Deducted (c) Ignored (d) None
36) Credit Note is sent by -
(a) Buyer (b) Seller (c) Banker (d) None
37) Loss of Goods due to theft is recorded in -
(a) Journal Proper (b) Cash Book
(c) Purchase Return Books (d) Purchase Book
38) Due to damage of goods Ravi was sent credit note of Rs.200. It will be recorded in-
(a) Journal proper (b) Sales Books
(c) Sales Return Book (d) Purchases Return Book
39) The recording of the transaction related to sending of debit note to the Seller by the Purchaser
is done in -
(a) Purchases Book (b) Sales Book
(c) Sales Return Book (d) Purchase Return Book
40) Businessman draws goods from business for domestic purpose. The entry of this transaction will
be made in -
(a) Purchases Books (b) Cash Book (c) Sales Book (d) Journal Proper
41) Out of the following which transaction will be written in the Sales Account of Kamal Book Dealers?
(a) Books destroyed due to Fire
(b) One typewriter worth Rs.800 sold to Modem Store on credit
(c) Books worth Rs.200 donated to school
(d) Stationery & books worth Rs.400 sold to Jaipur Stationery Mart
42) Which one will be written in the Purchases Book of Vamsi Cloth Store from the following -
(a) Cloth worth Rs.500 purchased from Jain Bro.
(b) Cloth worth Rs.600 purchased from Gupta for cash
(c) Scissors worth Rs.100 purchased from Aligarh
(d) Table worth Rs.400 purchased from Bharat
43) From the following details for Jan, 2011 calculate amount to be posted to Purchase A/c in Mohit's
books -
1 Purchased goods of Rs.5,000 from Devan

25 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 5 Purchased goods of Rs.5,000 from Dhiren @ 10% trade discount
10 Purchased goods of Rs.8,000 for cash
15 Placed a purchase order on Hiten for Rs.9,000
25 Purchased machinery for factory from Roman for Rs.10,000
26 Purchased goods of Rs, 10,000 from Nimish on credit @ 10% trade discount
27 Sold goods to Rajesh for Rs.10,000
31 Purchased goods for Rs.12,000 @ 10% trade discount from Mitesh
(a) Rs.29,300 (b) Rs.47,300 (c) Rs.30,300 (d) Rs.50,000
44) Calculate Amount posted to Sales A/c from Sonia's Sales Book & amount posted to Sales return
A/c from her Sales Return Book [Select the Right Combination] from the following details for
January 2009 & post the entries into her Ledger
1 Sold goods of Rs.5,000 to Monica
2 Monica returned goods of Rs. 1,000
5 Sold goods of Rs.5,000 to Radhika @ 10 % trade discount
7 Radhika returned goods having list price of R. 1,000
16 Sold goods of Rs.10,000 to Namita on credit @ 10% trade discount
26 Namita returned half the goods
31 Sold goods for Rs. 12,000 @ 5% trade discount to Ruchika
(a) Rs.15,900, Rs.6,000 (b) Rs.29,900 &Rs.6,400
(c) Rs. 16,500, Rs.7,400 (d) Rs.30,900, Rs.10,000
45) Goods worth Rs.5,000 sold to Varsha @ 10% trade discount & 5% sales tax was charged extra.
By this transaction the Sales account will be credited with:
(a) Rs.5,000 (b) Rs.5,500 (c) Rs.4,500 (d) Rs.4,275
46) Goods worth Rs. 5,000 sold to Bharath @ 10% trade discount & @ 1% cash discount on payment
within 10 days. Bharath made payment within 7 days. At time of receiving payment entry in the
Journal would be:
(a) Cash a/c Dr. 4,450
Discount a/c Dr. 50
To Lakshman 4,500
(b) Cash a/c Dr. 4,455
Discount a/c Dr. 45
To Lakshman 4,500
(c) Cash a/c Dr. 4,450
Discount a/c Dr. 50
To Sales a/c 4,500
(d) Cash a/c Dr. 4,455
Discount a/c Dr. 45
To Lakshman 4,545

RAMAN PRAKASHAN - 123, HIREN ROAD, RAMA NAGAR, MUMAI 400 008
M/S Rohit Booksellers, Princess Street, Mumbai - 400 001.
S. No. Particulars No. Rate Amount
1. FYJC Book - keeping 100 50.00 5,000.00
2. SYJC Accounting 100 50.00 5,000.00
3. FYB.Com Accounting 200 50.00 10,000.00
20,000.00
Less - 20 % Trade Discount 4,000.00
Total 400 16,000,00
(Rupees Sixteen Thousand Only)
• E.&O.E. SD./-
Manager - Raman Prakash

26 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 47) In the books of Raman Prakash, this document will be treated as a ______ & entered in _________
for _______.
(a) Debit Note, Purchase Returns Book, Rs. 4,000
(b) Sales invoice, Sales Book, Rs. 16,000
(c) Purchase Invoice, Purchases Book, Rs. 12,000
(d) Delivery Challan, Journal Proper, Rs. 16,000 & Rs. 4,000
48) In the books of Rohit Booksellers, this document will be treated as a _____ & entered in ______
for ______.
(a) Cash Memo, Cash Book, Rs. 4,000
(b) Credit Memo, Sales Book, Rs. 20,000
(c) Purchase Invoice, Purchases Book, Rs. 16,000
(d) Purchase Invoice, Purchases Book, Rs. 16,000 & Rs.4,000
49) From the subsidiary books of Raman Prakash, the amount(s) shown against the entry will be
posted -
(a) To Dr. of Rohit Booksellers & Credit of Sales A/c
(b) To Dr. of Sales & Credit of Rohit Booksellers A/c
(c) To Cr. of Rohit Booksellers & Credit of sales A/c
(d) To Dr. of Purchase & Credit of Rohit Booksellers A/c
50) From the subsidiary books of Rohit Booksellers, the amount(s) shown against the entry will be
posted -
(a) To Dr. of Raman Prakash & Credit of Sales A/c
(b) To Dr. of Sales & Credit of Raman Prakash A/c
(c) To Dr. of Raman Prakash & Credit Sales of A/c
(d) To Dr. of Purchase & Credit of Raman Prakash A/c

ANSWERS:

1) (c) 14) (b) 27) (a) 40) (d)

2) (b) 15) (b) 28) (b) 41) (d)
3) (a) 16) (c) 29) (a) 42) (a)
4) (d) 17) (b) 30) (b) 43) (a)
5) (a) 18) (a) 31) (b) 44) (b)
6) (c) 19) (d) 32) (a) 45) (c)
7) (b) 20) (c) 33) (b) 46) (b)
8) (d) 21) (d) 34) (b) 47) (b)
9) (b) 22) (a) 35) (a) 48) (c)
10) (b) 23) (d) 36) (b) 49) (a)
11) (c) 24) (d) 37) (a) 50) (d)
12) (a) 25) (b) 38) (a)
13) (c) 26) (c) 39) (d)

1) The process of transferring debit & credit items from a journal to their respective accounts in
ledger is ________.
(a) Posting (b) Purchase
(c) Balance of an account (d) Arithmetical accuracy test
2) L.F. (i.e., Ledger Folio) in journal is field at the time of -
(a) Journaling (b) Balancing
(c) Posting (d) Casting
3) In case of debit balance, the words ______are written on the debit side -
(a) To Balance b/d (b) To Balance c/d

27 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) By Balance b/d (d) By balance c/d
4) In case of credit balance, the words ______are written on the credit side -
(a) To Balance b/d (b) To Balance c/d
(c) By Balance b/d (d) By balance c/d
5) Left side of an A/c is ________ & right side is ________.
(a) Debit, Credit (b) Credit, Debit
(c) Liability, asset (d) None of the three
6) The technique of finding the net balance of an account after considering the totals of both
debits & credits appearing in the account is known as
(a) Posting (b) Purchase
(c) Balancing of an account (d) None
7) The words To Balance b/f or By Balance b/f are recorded in the ‘particulars column’ of accounts
as -
(a) All compounded entries (b) An opening entry
(c)(a) transfer entry (d) An adjusting entry
8) In ledger -
(a) Only personal accounts are maintained (b) Only real accounts are maintained
(c) Only nominal accounts are maintained (d) All the three are maintained
9) Normally the following accounts are balanced -
(a) Personal accounts & nominal accounts (b) Real accounts & nominal accounts
(c) Personal accounts & real accounts (d) All accounts
10) At the end of accounting year all the nominal accounts of the ledger books are -
(a) Balance but not transferred to P & L A/c
(b) Not balanced & also the balance is the not transferred to the profit & loss account
(c) Balanced & balance is transferred to balance sheet
(d) Not balanced the balance transferred to the profit & loss account
11) The concerned account debited in journal should be -
(a) Debited in the ledger but reference should be of the respective credit account
(b) credited in the ledger but reference should be of the respective debit account
(c) credited in the ledger & reference should also be of the respective credit account
(d) Debited in the ledger & reference should also be of the respective debit account
12) If the total debit side of an account exceeds the total of its credit side it indicates -
(a) Debit balance (b) Credit balance
(c) Either debit or credit (d) Neither debit nor credit
13) If the total credit side of an account exceeds the total of its debit side it indicates -
(a) Debit balance (b) Income
(c) Losses (d) Credit balance
14) Credit balance of a personal account indicates -
(a) Cash balance (b) Amount payable
(c) Amount receivable (d) None
15) Personal A/c credit balance indicates -
(a) Assets (b) Expense
(c) Debtor (d) Creditor
16) Personal A/c debit balance indicates -
(a) Profit (b) Debtors
(c) Creditor (d) Loss
17) Real A/c debit balance indicates -
(a) Expenses (b) Income
(c) Assets (d) Loss
18) Nominal A/c credit balance indicates -
(a) Liability (b) Assets
(c) Income (d) Expense
19) Nominal A/c debit balance indicates -
(a) Assets (b) Liability

28 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Income (d) Expense
20) Credit balance of nominal accounts shows -
(a) Expenses in the business (b) Loss in the business
(c) Income in the business (d) Assets of the business
21) Cash account will show -
(a) Debit or credit balance (b) A credit balance
(c) A debit balance (d) None
22) The balance of bank account is -
(a) Credit (b) Credit or debit
(c) Debit (d) Zero balance
23) The following account has a credit balance -
(a) Carriage inward (b) Carriage outward
(c) Return inward (d) Return outward
24) Generally, the balance of capital accounts is -
(a) Debit balance (b) Credit balance
(c) Debit or credit balance (d) Zero balance
ADDITIONAL CASE STUDY FOR PRACTISE

Dr. Sudhir Account Cr.

Date Particular Rs. Date Particulars Rs.
Jan 1 To Balance b/d 2,000 19 By Cash a/c 9,000
4 Invoice No 2 10,000 19 Discount a/c 1,000
22 Invoice No 24 5,000 21 Cash a/c 2,000
23 Credit note no 5 1,000
31 Balance c/d 4,000
17,000 Total 17,000
25) The opening balance -
(a) Is settled on 21st January
(b) Is settled on 19th January
(c) Is not yet settled
(d) Rs. 1000 is still outstanding after adjusting discount of Rs. 1000 on 19 th January
26) Invoice no 2 is -
(a) Raised by us on Sudhir & not yet settled till month-end
(b) Raised by us on Sudhir & settled on 19th January
(c) Raised by Sudhir on us & is not yet settled
(d) Raised by Sudhir on us &settled on 19th January
27) Invoice no 24 is -
(a) Raised by us on Sudhir & is adjusted against discount of Rs. 1000 on 19 th + cash 2,000 on 21st
credit Note Rs. 1000 on 23rd
(b) Raised by Sudhir on us & is not yet settled
(c) Raised by us on Sudhir & Rs. 4,000 against this invoice is outstanding after adjusting credit
note of Rs. 1000
(d) Raised by Sudhir on us &Rs. 4,000 against this invoice is outstanding after adjusting credit
note of Rs. 1000
28) After the preparation of ledgers, the next step is the preparation of -
(a) Trading accounts (b) Trial balance
(c) Profit & loss account (d) None
29) Trial Balance is a -
(a) Statement (b) Subsidiary Book
(c) List (d) Final Account

29 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 30) A Trial Balance contains the balances of -
(a) Only personal & real accounts (b) Only real & nominal accounts
(c) Only nominal & personal accounts (d) All accounts
31) Trial balance is a statement which shows __________or the _________of all the accounts.
(a) Balances, Totals. (b) Opening balances, Closing balances.
(c) Posted balances, Total of balances, (d) Debit balance, Credit balance.
32) Which of the following lists the balance & the title of accounts in the ledger on a given date?
(a) P & L Account (b) Balance sheet
(c) Earnings Statement (d) Trial balance
33) Which of the following is the objective of Trial Balance?
(a) Serves as the summary of all the Ledger accounts
(b) Helps in the preparation of the Trial Balance
(c) Examines mathematical accuracy of account books
(d) All
34) A Trial Balance shows -
(a) Honesty of accountants (b) Accuracy of Account
(c) Only Arithmetical accuracy of accounts (d) None
35) The preparation of a Trial Balance is for -
(a) Locating errors of commission (b) Locating errors of principle
(c) Locating clerical errors (d) Both (a) & (c) above
36) The balance of ____ account will be shown in the debit column of trial balance -
(a) Cash (b) Creditors account
(c) Bank overdraft account (d) Capital account
37) Choose the correct statement from below -
(a) Trial Balance can be prepared before passing transfer entries
(b) Trial Balance can be prepared before passing adjusting entries
(c) Trial Balance can be prepared before passing closing entries
(d) All
38) A Trial Balance will not balance if -
(a) Correct journal entry is posted twice.
(b) The purchase on credit basis is debited to purchases & credited to cash.
(c) Rs.500 cash payment to creditors is debited to creditors for Rs.50 & credited to cash as
Rs.500.
(d) None
39) The difference in the following Trial Balance is due to –
No. Account heads Debit Credit
1 Sales 15,000
2 Purchases 10,000
3 Miscellaneous expenses 2,500
4 Salaries 2,500
Total 12,500 17,500
(a) Wrong placing of sales account (b) Wrong placing of salaries account
(c) Wrong placing of miscellaneous expenses account (d) Wrong placing of all accounts
40) Rs.1,500 received from sub-tenant for rent & entered correctly in the cash book is posted to the
debit of the rent account. In the Trial Balance,
(a) The debit total > by Rs.3000 than the credit total
(b) The debit total >by Rs.1500 than the credit total
(c) Subject to other entries being correct, total will agree
(d) None

30 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 41) Find out the total of Debit side of the Trial Balance from the following list of balances extracted
as on 31-3-2011 -

Particulars Rs. Particulars Rs.

Purchases 21,665 Traveling exp. 550
Machinery 15,000 Building 25,000
Capital 50,000 Drawings 4,800
Debtors 12,700 Creditors 4,255
Purchase Returns 1,333 Bank Balance 8,000
Salaries 1,350 Discount Reed. 1,600
Loans Payable 1,360 Carriage 448
Wages 450 Insurance 420
Bank Loan 1,800 Office Expenses 790
Cash 820 Commission Received 2,745
Furniture 2,500 Opening Stock 3,600
Sales 35,000
(a) Rs. 91,090 (b) Rs.1,00,093 (c) Rs.98,093 (d) Rs.96,093
42) From the following Trial Balance containing errors, find out correct total of the credit side of the
Trial Balance -
Particulars Debit Credit
Purchases 60,000
Advances received 20,000
Sales 1,00,000
Purchase returns 1,000
Sales returns 1,000
Opening stock 30,000
Bank O/(d) (Pass book) 40,000
Expenses 20,000
Bank O/(d) (Cash book) 2,000
Cash balance 5,000
Assets 50,000
Debtors 80,000
Creditors 30,000
Capital 94,000
Difference in books 10,000
2,72,000 2,72,000
(a) Rs.2,72,000 (b) Rs.2,47,000 (c) Rs.3,72,000 (d) Rs.2,82,000
43) From following list, find out total of Trial Balance -
Particulars Rs Particulars Rs
Capital A/c 100 Op. stock A/c 15
Debtors A/c 20 Creditors A/c 20

31 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 Fixed Assets A/c 92 Purchases A/c 70
Sales A/c 110 Returns Inward 2
Returns Outward 1 Wages & Salaries 30
Bills Payable A/c 8 Bills Receivable 15
Bank Overdraft 11 Rent A/c 6
(a) Rs.270 (b) Rs.340 (c) Rs.345 (d) Rs.250
44) Find out the total of Trial Balance as at 31-12-2021 from the following Ledger balances -
Capital Rs. 40,000, Purchases Rs. 36,000, Discount Rs. 1,200, Carriage Inwards Rs. 8,700, Carriage
Outwards Rs. 2,300, Sales Rs. 60,000, Return Inwards Rs. 300, Returns Outwards Rs. 700, Rent &
Taxes Rs. 1,200, Plant & Machinery Rs. 10,700, Stock on 1-1-2021 Rs. 15,500, Sundry Debtors Rs.
20,200; Sundry Creditors Rs. 12,000; Commission Rs. 1,800, Cash in hand Rs.100, Cash at Bank Rs.
10,100, Motor Cycle Rs. 4,600.
(a) Rs.1,12,700 (b) Rs.1,10,900 (c) Rs.1,15,800 (d) Rs.1,13,700
45) Given below are ledger balances - Capital Rs. 4,00,000, Computer Rs. 25,000, Air conditioner &
furniture Rs. 1,00,000, Fixed Deposits Rs. 2,00,000, Salaries Rs. 8,00,000, Fees received Rs.
12,00,000, Travelling expenses Rs. 1,50,000, Rent & office expenses Rs. 2,40,000, Cash - Rs.
1,80,000. Bank overdraft Rs. 95,000. The total of trial balance will be:
(a) Rs.16,00,000 (b) Rs.16,95,000 (c) Rs.14,50,000 (d) Rs.15,00,000
46)

Particulars Rs. Particulars Rs.

Debtors 48,000 Cash at Bank 25,000
Creditors 98,000 Cash 400
Plant 40,000 Salaries 55,000
Carriage Outward 1,200 Wages 20,000
Bad debts 1,200 Printing 527
Purchases 51,900 Office Expenses 1,212
Capital A/c 35,000 Sales 1,50,680
Freehold premises 25,000 Opening Stock 21,325
Bad debt (Provision) 625 Commission received 6,459
Deposit with EB 10,000 Deposit received 10,000
From the following balances find out total of Trial Balance of S.(a). Associates for year ended
31.03.2021 -
(a) Rs.3,00,139 (b) Rs.3,20,764 (c) Rs.3,00,764 (d) Rs.2,99,764
47) Mr. Nirala, has balanced the ledger accounts as on 31-3-2021; & extracted the following ledger
balances. Find out total of Trial Balance as on 31-3-2021 -
Account head Rs. Account head Rs.
Capital 50,500 Machinery 5,000
Purchase 12,000 Furniture 6,000
Sales 25,000 Bank Loan 6,000
Debtors 10,000 Cash & Bank 10,000
Creditors 12,000 Bills Receivable 2,500
Op. Stock 9,000 Bills Payable 12,000
Insurance 1,500 Discount Received 3,000

32 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 Office Exp. 2,500 Dis. Allowed 500
Interest paid 3,000 Salaries 45,000
Commission reed. 2,000 Carriage 3,500
(a) Rs. 1,22,500 (b) Rs.1,00,500 (c) Rs.1,04,500 (d) Rs.1,10,500
48) The following Trial Balance has been prepared wrongly. Find out total of the Trial balance
correctly
Particulars Debit (Rs.) Credit (Rs.)
Capital 22,000
Stock 10,000
Debtors 8,000
Creditors 12,000
Machinery 20,000
Cash in Hand 2,000
Bank Overdraft 14,000
Sales Returns 8,000
Purchases Returns 4,000
Misc Expenses 12,000
Sales 44,000
Purchases 26,000
Wages 10,000
Salaries 12,000
Prepaid Insurance 200
Outstanding Expenses 12,200
Total 1,08,200 1,08,200
(a) Rs.1,08,200 (b) Rs.1,08,000 (c) Rs.1,12,200 (d) Rs.1,20,200
49) The Accountant of M/s. S&M prepared the following Trial Balance which does not agree. You have
to locate the mistakes. Find out the correct Trial Balance total -
Account head Debit (Rs.) Credit (Rs.)
Capital A/c 1,78,000
Plant & Machinery 2,00,000
Furniture 2,000
Sales 1,27,000
Purchases 60,000
Return Inward 10,000
Returns Outward 750
Discount Allowed 425
Discount Received 800
Sundry Debtors 45,000
Sundry Creditors 34,000
Salaries 7,550

33 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 Manufacturing Wages 10,000
Opening Stock 30,000
Carriage Outward 1,200
Provision for Bad Debts (1-4-2011) 525
Rent, Rates & Taxes 10,000
Advertisement 2,000
Cash 2,000
Bank O/(d) 39,100
Total 3,48,625 4,11,725
(a) Rs.3,48,625 (b) Rs.3,28,075 (c) Rs.3,80,175 (d) Rs.3,53,075
50) A started business with Rs. 20,000 cash & Rs. 11,000 stocks. Cash sales & cash purchases were
Rs. 10,000 &Rs. 5,000. Total sales & purchases amounted to Rs. 70,000 & Rs. 50,000. Outstanding
creditors were Rs. 15,000 & Debtors Rs. 25,000. Expenses paid Rs. 17,000. Machine was purchased
for Rs. 10,000 out of which Rs.8000 is paid. Trial Balance total will be —
(a) Rs.1,18,000 (b) Rs.1,20,000 (c) Rs.1,25,000 (d) Rs.1,40,000
(Note: In the above question, the student has to identify the double impact of each transaction.
Then determine the balance under each head.)

ANSWERS:

1) (a) 14) (b) 27) (c) 40) (a)

2) (c) 15) (d) 28) (b) 41) (c)
3) (a) 16) (b) 29) (a) 42) (b)
4) (c) 17) (c) 30) (d) 43) (d)
5) (a) 18) (c) 31) (a) 44) (a)
6) (c) 19) (d) 32) (d) 45) (b)
7) (b) 20) (c) 33) (d) 46) (c)
8) (d) 21) (c) 34) (c) 47) (d)
9) (c) 22) (b) 35) (d) 48) (a)
10) (d) 23) (d) 36) (a) 49) (c)
11) (a) 24) (b) 37) (d) 50) (a)
12) (a) 25) (a) 38) (c)
13) (d) 26) (b) 39) (b)

34 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 CHAPTER 2. DEPRECIATION ACCOUNTING
1) Original cost = Rs. 12,60,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first
year under sum of years digits method will be:
(a)3,60,000 (b)1,20,000 (c)1,80,000
2) Obsolescence of a depreciable asset may be caused by:
1) Technological changes.
2) Improvement in production method.
3) Change in market demand for the product or service output.
4) Legal or other restrictions.
(a) Only 1) above (b) Both 1) and 2) above (c) All 1), 2), 3) and 4) above
3) The number of productions of similar units expected to be obtained from the use of an asset by
an enterprise is called as:
(a) Unit life (b) Useful life (c) Production Life
4) If a concern proposes to discontinue its business from March 2015 and decides to dispose of all
its plants within a period of 4 months, the Balance Sheet as on March 31, 2015 should indicate the
plants at their:
(a) Historical cost (b) Net realizable value (c) Cost less depreciation
5) In the case of downward revaluation of a plant which is for the first time revalued, the account
to be debited is:
(a) Plant account (b) Revaluation Reserve (c) Profit & Loss A/c
6) The portion of the acquisition cost of the tangible asset, yet to be allocated is known as:
(a) Written down value (b) Accumulated value (c) Realizable value
7) The main objective of providing depreciation is to:
(a) Create Secret Reserve (b) Reduce the book value of assets (c) Allocate cost of the assets
8) Original cost of a machine was Rs. 25,20,000 salvage value was Rs. 1,20,000, useful life was 6
years. Annual depreciation under Straight Line Method:
(a) Rs. 4,20,000 (b) Rs. 4,00,000 (c) Rs. 3,00,000
9) The cost of a machine is Rs. 20,00,000. Two years later the book value is Rs. 10,00,000. The
Straight-line percentage depreciation is:
(a) 50% (b) 33 /
% (c) 25%
10) A machinery with original cost of Rs. 10,00,000 and Nil Salvage value acquired on 1st April 2017
with 4 years useful life was depreciated using Straight Line Method. It was decided to sell the
machinery on 1st October 2020 for Rs. 1,20,000. What shall be the gain or (loss) on the sale of
Machinery?
(a) Loss of Rs. 1,30,000 (b) Gain of Rs. 1,20,000
(c) Gain of Rs. 5,000 (d) Loss of Rs. 5,000
11) Which of the following assets does not depreciate?
(a) Machinery and equipment (b) Patents (c) Land
12) A company purchased a machinery on April 01, 2014, for Rs. 15,00,000. It is estimated that the
machinery will have a useful life of 5 years after which it will have no salvage value. The
depreciation charged during the year 2018-19 was:
(a) 5,00,000 (b) 4,00,000 (c) 3,00,000
13) If the equipment account has a balance of Rs. 22,50,000 and the accumulated depreciation
account has a balance of Rs. 14,00,000, the book value of the equipment is:
(a) 36,50,000 (b) 8,50,000 (c) 14,00,000

35 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 14) A plant with original cost of Rs. 50,00,000 was revalued after 2 years resulting in credit to
Revaluation Surplus account of Rs. 4,00,000. Towards the year end of 2019-20, due to COVID-19
the plan value had gone down by Rs. 5,00,000 and accordingly management decided to revalue
the same. What shall be the impact of this downwards revaluation on the Profit & Loss Account?
(a) Debit of Rs. 5,00,000 (b) Debit of Rs. 1,00,000
(c) Credit of Rs. 5,00,000 (d) Credit of Rs. 1,00,000
15) Depreciation refers to the process of –
(a) Asset valuation
(b) Allocation of cost of the assets over the period of its life
(c) Verification of assets
(d) Increasing or decreasing the value of asset
16) In case the depreciable assets are revalued, the provision for depreciation is based on -
(a) Market value of the assets
(b) Historical cost of assets
(b) Depreciated value of the assets
(d) The revalued amount over the estimate of the remaining useful life of such asset
17) Which of the following is the internal causes for depreciation?
(a) Wear and tear (b) Depletion or exhaustion (c) Both A & B
18) Which are the methods of depreciation prescribed by the Income Tax Act-
(a) Straight line and annuity method
(b) Sinking fund and Double declining method
(c) Equal installment and written down value method
(d) Production hour and sum of year’s digit method
19) Depreciation is not provided for which of the following asset?
(a) Goodwill (b) Land (c) Inventory of goods (d) Both B & C
20) Obsolescence means decline in the value due to:
(a) Physical wear and tear (b) Efflux of time
(c) fall in market price (d) Innovations and inventions
21) The depreciation account is closed at the end of the year by transfer to the:-
(a) General Reserve A/c (b) Profit and loss A/c
(c) Provision for depreciation A/c (d) Fixed asset A/c
22) Which of the following is an external cause for depreciation?
(a) Obsolescence (b) Time Element
(c) Abnormal Occurrences (d) All of the above
23) Accumulated depreciation is an example of:
(a) A liability (b) An expense
(c) An income (d) An unrecorded revenue
24) Purchase price of machine 8,90,000, freight and cartage 7000, installation charges 30,000,
Insurance charges 20,000, residual value is 40,000, estimated useful life 5 years. Calculate the
amount of annual depreciation under straight line method?
(a) 1,77,400 (b) 1,81,400 (c) 1,97,400 (d) 1,77,900
25) Depreciation of a ten-year lease is best done on the method:
(a) WDV (b) SLM (c) Annuity method (d) both a & b
26) Original cost is Rs. 1,50,000 residual value is 10,000, depreciation for 3rd year @ 10% p.a. under
WDV method_____.
(a) 14,000 (b) 12,150 (c) 11,340 (d) 12,240

36 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 27) For charging depreciation, on which of the following assets, the depletion method is adopted?
(a) Plant & machinery (b) Land & building
(c) Goodwill (d) Wasting assets like mines and quarries
28) The value of an asset after deducting depreciation from the historical cost is known as:
(a) Fair value (b) Market Value (c) Net Realizable Value (d) Book Value
29) If the original cost of the machine = 1,00,000, life = 5 years residual value = 2,000. If the
depreciation for 4th year as per SLM is 19,600, then the rate of depreciation p.a. is:
(a) 10% (b) 15% (c) 20% (d) 5%
30) On purchase of second hand car for Rs. 10,000, the amount of Rs. 1,000 is spent on its repairs, Rs.
500 is incurred to get the car registered in own name and Rs. 1,200 is given as dealer's commission.
The amount debited to car account should be –
(a) Rs.10,000 (b) Rs.10,500 (c) Rs.11,500 (d) Rs.12,700
31) A machine was purchased on 1-1-2006. It was delivered on 1-4-2006. The installation was
completed on 1-7-2006. The trial run was completed on 30-9-2006 and was made available for use
on 1-10-2006. The actual utilization started from 1-12-2006. The effective period -for calculation
of depreciation for the calendar year 2006 is –
(a) 10 months (b) 9 months (c) 1 month (d) 3 months
32) Kanda Trading Co. Bhindi Bazaar purchased a machinery for Rs.55,000 on 1st January 2005 and
spent Rs.5,000 for its erection, Rs.2,000 have to be paid for freight charges but Kanda Trading
Company made the settlement in Rs.1,800 only. What is the Cost of machinery –
(a) 60,000 (b) 61,800 (c) Rs.62,000 (d) Rs.55,000
33) Rohit sold his old Car for Rs.1,15,000 incurring a loss of 2,50,000. What is the net book value of
Machinery sold –
(a) Rs.3,65,000 (b) Rs.2,50,000 (c) Rs.1,15,000 (d)Rs.1,35,000
34) If the machinery costing Rs.18,000 is sold after 2 years for Rs.16,000 and the depreciation rate
is 10% per annum on straight line method, then the profit or loss from the sale of machine is –
(a) Rs.3,600 (profit) (b) Rs.1,600 (loss) (c) Rs.1,600 (profit) (d) No profit & loss
35) Depreciated value after 2 years of an asset costing Rs.10,000 depreciated at 10% on fixed
installment method is Rs.— and on reducing balance method is Rs.—
(a) Rs. 8,100 and Rs. 8,000 (b) Rs. 9,000 and Rs. 8,000
(c) Rs. 8,000 and Rs. 8,100 (d) None
36) Purchase price of Scooter Rs.17,000, Expenses to be capitalized Rs.3,000. The rate of
depreciation on SLM basis is 9%, estimated useful life is 10 years. The Estimated Residual Value
will be-
(a) Rs. 2,000 (b) Rs. 5,000 (c) Nil (d) Rs. 20,000
37) Sangam Trading Co. purchased one Machinery on 1st Jan. 2005 costing Rs.88,000 and spent
Rs.2,000 on its erection. On 30th June 2005, an additional Machinery was purchased. Company
provides depreciation every year ending on 30th June @ 10%p.a. and the depreciation amounts
to Rs.4500. What is the cost of additional Machinery purchased?
(a) Rs.8,000 (b) Rs.10,000 (c) Rs.5,000 (d)Not Ascertainable
38) Payment to vendor for machinery Rs.1,00,000. Transportation Cost - Rs.1,000. Installation cost-
Rs.9,000. Estimated gross scrap value- Rs.12,000, estimated cost of disposal of asset Rs.2,000.
Estimated life-10 years. Annual depreciation is-
(a) Rs.9,800 (b) Rs.10,000 (c) Rs.10,200 (d) Rs. 9,600
39) Cost of a machine is Rs.1,05,000. residual value is Rs.5,000. Useful life is estimated to be 10 years.
Depreciation is charged on straight line basis. The machine was revalued at Rs.80,000 at the end
of the 8th year. On Revaluation.
(a) There is Revaluation Profit of Rs.60,000 (b) There is Revaluation Profit of Rs.55,000
(c) There is Revaluation Profit of Rs.65,000 (d) There is Revaluation Profit of Rs.50,000
37 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 40) On Revaluation, Depreciation for the 9th year shall be:
(a) Rs.10,000 (b) Rs.10,500 (c) Rs.40,000 (d) Rs.8,000
With the help of information given below; solve Q41- Q43.
On 31st December every year, depreciation is charged at 10% p.a. on cost price.
Dr. Machinery Amount Cr.
Date Particulars Rs. Date Particulars Rs.
1-1-05 To Balance b/d [M1] 15,000 1-10-05 By Depreciation [M1] 1,500
1-1-05 To Bank A/c [M2] 45,000 1-10-05 By Bank A/c[M1] 12,250
1-4-05 To Bank A/c[M3] 16,000 1-10-05 By Profit & Loss A/c [M1] Q
31-12-05 By Depreciation Q
31-12-05 By balance c/d Q
TOTAL 76,000 76,000
41) On sale of Machine M1 on 01/10/2005, the entry against profit & Loss a/c will show:
(a) Loss of Rs.1,250 (b) Profit of Rs.13,500
(c) Profit of Rs.1,250 (d) Profit of Rs.2,750
42) The amount of depreciation provided on 31-12-2005 is:
(a) Rs.7,600 (b) Rs.5,700 (c) Rs.6,100 (d) Rs.7,500
43) The balance c/d on 31/12/2005 is:
(a) Rs.55,300 (b) Rs.55,500 (c) Rs.54,750 (d) Rs.56,750
44) With respect to WDV method of depreciation which of the following is true:-
(a) The amount of depreciation and the rate of depredation decrease every year.
(b) The amount of depreciation and the rate of depreciation increases every year.
(c) The amount of depreciation keeps increasing while rate of depreciation keeps decreasing.
(d) The amount of depreciation decreases while the rate of depreciation remains the same.
45) If depreciation is charged on an asset by Straight line and Reducing balance methods, what will
be the respective amount of depreciation in subsequent years?
(a) Equal in all years
(b) Lower in the first year but equal in subsequent years
(c) Equal in the first year but lower in subsequent years
(d) Equal in the first year but higher in subsequent years in WDV compared to SLM
46) Machinery is purchased on 1-7-03 for Rs.2,00,000 and put to use on that date by company. It is
the policy of the company to provide depreciation for full year whether it is used or not used at
any part of the year on cost basis. If the account is closed on 31st December every year and
depreciation is charged at the rate of 13% per annum what is the amount of depreciation for first
two years.
(a) Rs.52,000 (b) Rs.39,000 (c) Rs.26,000 (d) Rs.19,500
Depreciation is charged @ 10% p.a. under straight line method on 31st December, every year.
Date No. Particulars Dr Amt. Cr Amt.
1-4-03 1. Machinary A/c Dr. 12,000
To Bank A/c 12,000
1-4-03 2. Depreciation A/c Dr. 125
To Machinary A/c 125
3. Bank A/c Dr. 3,000
To Machinary A/c 3,000
1-4-03 4. Profit & Loss A/c Dr.

38 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 To Machinery A/c
47) The above is actually a:
(a) Cash Book (b) Journal (c) Ledger Account (d) Trial Balance
48) Entry No. 1 Shows:
(a) Sale of Machinery (b) Return Inwards
(c) Purchase of Machinery (d) Repairs of Machinery
49) Entry No.2 Shows:
(a) Depreciation at the year-end (b) Depreciation on New Machinery Purchased
(c) Depreciation on machinery sold (d) None of the above
50) The amount in Entry 4 will indicate:
(a) Loss (b) Profit
(c) Depreciation (d) Written down value

ANSWERS:

1) (a) 14) (b) 27) (d) 40) (c)

2) (c) 15) (b) 28) (d) 41) (a)
3) (b) 16) (d) 29) (c) 42) (b)
4) (b) 17) (c) 30) (d) 43) (a)
5) (c) 18) (c) 31) (d) 44) (d)
6) (a) 19) (d) 32) (b) 45) (c)
7) (c) 20) (d) 33) (a) 46) (b)
8) (b) 21) (b) 34) (c) 47) (b)
9) (c) 22) (a) 35) (c) 48) (c)
10) (d) 23) (a) 36) (a) 49) (a)
11) (c) 24) (a) 37) (d) 50) (a)
12) (c) 25) (b) 38) (b)
13) (b) 26) (b) 39) (b)

39 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 CHAPTER 3. RECTIFICATION OF ERRORS
1) Goods purchased from A for Rs.10,000 passed through the sales book. The error will result in:
(a) Increase in gross profit
(b) Decrease in gross profit
(c)No effect on gross profit
2) If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account,
but has been correctly entered in the suppliers’ account, the total of the:
(a) Trial balance would show the debit side to be Rs.1,000 more than the credit
(b) Trial balance would show the credit side to be ₹ 1,000 more than the debit.
(c) The debit side of the trial balance will be ₹ 2,000 more than the credit side.
3) If the amount is posted in the wrong account or it is written on the wrong side , it is called:
(a) Error of omission (b) Error of Commission (c) Error of Principle
4) ₹ 200 Paid as wages for erecting a machine should be debited to:
(a) Repair A/c (b) Machine A/c (c) Capital A/c
5) On purchase of old furniture, the amount of Rs.1,000 spent on its repair should be debited to:
(a) Repair A/c (b) Furniture A/c (c) Cash A/c
6) Goods worth Rs.50 given as charity should be credited to:
(a) Charity A/c (b) Sales A/c (c) Purchase A/c
7) Goods worth Rs.100 taken by proprietor for domestic use should be credited to:
(a) Sales A/c (b) Proprietor’s personal expenses (c) Purchases account
8) Sales of office furniture should be credited to:
(a) Sales A/c (b) Furniture A/c (c) Purchase A/c
9) The preparation of a trial balance is for:
(a) Locating errors of commission
(b) Locating errors of principle
(c) Locating clerical errors
10) 200 received from Smith whose account, was written off as a bad debt should be credited to:
(a) Bad Debts Recovered account (b) Smith’s account (c) Cash account
11) Purchase of office furniture Rs.1,200 has been debited to General Expense Account. It is:
(a) A clerical error (b) An error of principle (c) An error of omission
12) Discount allowed Rs.93 to Mohan has been credited to his account by Rs.39. The error will be
rectified by:
(a) Crediting Mohan by Rs.54
(b) Debiting Mohan by Rs.54
(c) Debiting discount by Rs.54
13) A Bill Receivable of Rs.500 was dishonoured and credited as Rs.50. The error will be rectified by:
(a) Crediting debtor by Rs.450 (b) Crediting bill receivable by Rs.450
(c) Debiting bills receivable by Rs.450 (d) Debiting debtors A/c by Rs.550
14) Which of the following errors will affect Trial Balance?
(a) Repairs to buildings have been debited to buildings
(b) The total of purchases journal is Rs.2,000 short
(c) Freight paid on new machinery has been debited to the Freight Account
(d) None of these
15) Salary paid for the Month of June, Rs.21,000 by issue of a cheque was recorded in the Journal but
not posted at all. The rectification will be done by:

40 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Passing a rectification entry (b) Creating a Suspense A/c
(c) Making the posting in the Ledger (d) None of the above
16) Which of the following is not an error of principle?
(a) Rs.10,000 paid for erection and commissioning of Plant debited to Repairs A/c
(b) Rs.1,000 Paid to Shyam, credited to his A/c
(c) Rs.1,000 paid as cartage for office furniture debited to Cartage A/c
(d) Rs.5,000 paid to Gopal as salary, debited to his A/c
17) Suspense A/c is:
(a) Nominal A/c (b) Personal A/c (c) Real A/c (c) Can be of any type
18) Rent paid to landlord amounting to Rs.500 was credited to Rent A/c with Rs.5,000. In the rectifying
entry, the amount to be debited to Rent Account is:
(a) ₹ 5,000 (b) ₹ 500 (c) ₹ 5,500 (c) ₹ 4,500
19) Sohan returned goods to us amounting Rs.4,200 but was recorded as Rs.2,400 in his account. In
the rectifying entry. Sohan's A/c will be credited with:
(a) ₹ 1,800 (b) ₹ 4,200 (c) ₹ 2,400 (c) ₹ 6,600
20) Commission paid to Mr. Dixit Rs.225 was posted twice to Commission account. The rectification is
done by:
(a) Writing 'Error in Posting' ₹ 225 on credit side of Mr. Dixit A/c in Ledger
(b) Passing a rectification entry in Journal Proper crediting Commission A/c by ₹ 225
(c) Writing 'Error in Posting' ₹ 225 on credit side of Commission A/c in Ledger
(d) Passing a rectification entry in Journal Proper debiting Commission A/c by ₹ 225
21) Goods purchased from A for ₹ 2,000 passed through sales book. The rectification of this error
results in:
(a) Decrease in Gross Profit (b) No effect on Gross Profit
(c) Increase in Gross Profit (d) Increase in Sundry Debtors
22) A credit sale of goods to Amir, worth ₹ 600 was recorded in Purchase Book. In the rectification
entry:
(a) Amir will be debited by Rs.600 (b) Purchase will be debited by Rs.600
(c) Amir will be debited by Rs.1,200 (d) Sales will be credited by Rs.1,200
23) Salary to A Rs.1,000 debited to A's A/c. Rectification entry is:
No. Particulars Dr Amt. Cr Amt.
a) Salary A/c Dr. 2,000
To A A/c 2,000
b) Salary A/c Dr. 1,000
To A A/c 1,000
c) A A/c Dr. 1,000
To Salary A/c 1,000
c) No Entry

24) Cheque for ₹ 1,000 from D was recorded in cash received column. The rectification entry is:
(a) Enter Rs.1,000 in bank column (Dr.) in cash book & enter Rs.1,000 in cash column (Cr.)
(b) In Cash Book, Dr. Bank column with Rs.2,000 & Cr. Cash column with Rs.2,000
(c) In Cash Book, Cr. Bank column with Rs.1,000 & Dr. cash column with Rs.1,000
(d) In Cash Book, Credit Cash Column with Rs.1,000
The following errors were discovered after concerned final accounts were prepared - i.e. discovered
in the next year. (Two Sided Errors). Indicate the correct rectification entry
25) Purchases from A for Rs.10,000 not recorded. The rectification entry is:

41 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 No. Particulars Dr Amt. Cr Amt.
a) A A/c Dr. 10,000
To P&L Adjustment A/c 10,000
b) Purcahse A/c Dr. 10,000
To A A/c 10,000
c) P&L Adjustment A/c Dr. 10,000
To A A/c 10,000
c) No Entry will be passed

26) Salary paid to A Rs.1,000 debited to A's A/c. The rectification entry is:
No. Particulars Dr Amt. Cr Amt.
a) Salary A/c Dr. 1,000
To A A/c 1,000
b) Prepaid Salary A/c Dr. 1,000
To A A/c 1,000
c) A A/c Dr. 1,000
To P&L Adjustement A/c 1,000
d) P&L Adjustement A/c Dr. 1,000
To A A/c 1,000

27) Credit sales to A of Rs.500 recorded in Purchase Book. The rectification entry is:
No. Particulars Dr Amt. Cr Amt.
a) A A/c Dr. 500
To Sales A/c 500
b) A A/c Dr. 1,000
To P&L Adjustment A/c 1,000
c) Purcahse A/c Dr. 500
To Sales A/c 500
d) A A/c Dr. 500
To P&L Adjustement A/c 500

28) Sale to B of ₹ 1,000 were recorded twice in Sales Book. The rectification entry, after final
accounts is:
No. Particulars Dr Amt. Cr Amt.
a) P&L Adjustment A/c Dr. 1,000
To B A/c 1,000
b) A A/c Dr. 2,000
To P&L Adjustment A/c 2,000
c) Sales A/c Dr. 1,000
To B A/c 1,000
d) B A/c Dr. 2,000
To P&L Adjustement A/c 2,000

29) Purchase from C of Rs.1,950 was recorded as Rs.1,590. The rectification entry is:
No. Particulars Dr Amt. Cr Amt.
a) C A/c Dr. 360

42 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 To P&L Adjsutement A/c 360
b) P&L Adjustemnt A/c Dr. 360
To C A/c 360
c) Purcahse A/c Dr. 360
To C A/c 360
d) P&L Adjustment A/c Dr. 1,950
To Purchase A/c 360
To C A/c 1,590

30) Purchase from D of Rs.1,590 was recorded as Rs.1,950. The rectification entry is:
No. Particulars Dr Amt. Cr Amt.
a) P&L Adjsutment A/c Dr. 360
To D A/c 360
b) D A/c Dr. 360
To Purchase A/c 360
c) D A/c Dr. 360
To P&L Adjustment A/c 360
d) D A/c Dr. 1,950
Purchase A/c Dr. 360
To P&L Adjustment A/c 1,590

31) A suspense account facilitates the preparation of _even when the ____ has not tallied.
(a) Ledgers; Trial balance (b) Financial statements; Trial Balance.
(c) Trial balance; Financial statements (d) Journal; Trial balance
32) A Trial Balance will not tally if:
(a) Correct journal entry is posted twice
(b) Credit Purchase debited to purchases & credited to cash
(c) Rs.5,000 cash paid to creditors is debited to creditors for Rs.500 and credited to cash as
Rs.5,000
(d) None of the above
33) Closing stock in Trial Balance will be taken to:
(a) Trading Account only (b) Balance Sheet only
(c) Profit & Loss Account only (d) Trading Account and Balance Sheet
34) Errors of carry forward from one year to another affects:
(a) Personal A/c (b) Real A/c (c) Nominal A/c (d) Both (a) & (b)
35) Which of the following is not a true of a trial balance?
(a) It proves that total debits = total credits, if it balances
(b) It facilities preparation of financial statements
(c) It proves that no errors have been made in recording transactions, if it balances
(d) It will not detect an error where the accounts debited and credited are reversed to recording
a particular transaction
36) Unintentional omission or commission of amounts and accounts in the process of recording
transactions are known as:
(a) Frauds (b) Misinterpretation (c) Errors (d) None of the above
37) Whenever errors are noticed in the accounting records, they should be rectified:
(a) At the time of preparation of the trial balance
(b) Without waiting the accounting year to end
(c) After the preparation of final accounts

43 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (d) In the next accounting year
38) Rs.3,000 received from sub-tenant for rent and entered correctly in the cash book is posted to
the debit of the rent account. In the Trial Balance:
(a) Debit total > by Rs.6,000 than the credit total
(b) Debit total > by Rs.3,000 than the credit total
(c) Subject to other entries being correct, total will agree
(d) None of the above
39) Which of the following errors are not revealed by the Trial Balance:
(a) Compensating errors (b) Errors of commission
(c) Wrong balancing of an account (d) Wrong totaling of an account
40) Cartage paid for newly purchased machinery, posted to Cartage Account:
(a) Errors of Omission (b) Errors of Commission (c) Errors of Principle (d) None
41) Goods taken away by the Proprietor for personal use not recorded anywhere:
(a) Errors of Omission (b) Errors of Commission (c) Errors of Principle (d) None
42) The total of Sales Book was not posted to the ledger:
(a) Will affect the trial balance (b) Will not affect the trial balance
43) Goods of the value of Rs.376 were returned by Ram and were taken into stock on the same date
but no entry was made in the books:
(a) Will affect the trial balance (b) Will not affect the trial balance
44) A credit sale wrongly passed through purchases book:
(a) Will affect the trial balance (b) Will not affect the trial balance
45) Repairs of newly purchased second-hand machinery debited to Repairs Expenses Account:
(a) Will affect the trial balance (b) Will not affect the trial balance
46) Repairs to Machinery charged to Machinery A/c:
(a) Will affect the trial balance (b) Will not affect the trial balance
47) Cartage paid for newly purchased machinery, posted to Cartage Account:
(a) Will affect the trial balance (b) Will not affect the trial balance
48) Recording a transaction in a wrong book of original entry with wrong amount:
(a) Will affect the trial balance (b) Will not affect the trial balance
49) Recording a transaction in a correct book of original entry but not posted in the ledger:
(a) Will affect the trial balance (b) Will not affect the trial balance
50) Sales book was overcast by Rs.100. The rectification is:
(a) Writing "By Error of Casting in Sales Book." Rs.100 on the credit side of the Sales A/c in Ledger
(b) Passing a rectification entry in Journal Proper debiting Sales A/c by Rs.100
(c) Writing "To Error Casting in Sales Book." - Rs.100 on the debit side of the Sales A/c in Ledger
(d) Passing a rectification entry in Journal Proper Debiting Suspense A/c by Rs.100

ANSWERS:

1) (a) 7) (c) 13) (b) 19) (a)

2) (c) 8) (b) 14) (b) 20) (c)
3) (b) 9) (c) 15) (c) 21) (a)
4) (b) 10) (a) 16) (b) 22) (c)
5) (b) 11) (b) 17) (d) 23) (b)
6) (c) 12) (a) 18) (c) 24) (a)

44 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 25) (c) 32) (c) 39) (a) 46) (b)
26) (d) 33) (b) 40) (c) 47) (b)
27) (b) 34) (d) 41) (a) 48) (b)
28) (a) 35) (c) 42) (a) 49) (a)
29) (b) 36) (c) 43) (b) 50) (c)
30) (c) 37) (b) 44) (b)
31) (b) 38) (a) 45) (b)

45 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 CHAPTER 4. BILLS OF EXCHANGE
1) A Bill of exchange is called a by one who is liable to pay it on the due date.
(a) Bills Receivable (b) Bills Payable
(c) Draft (d) Promissory Note
2) On acceptance of the bill the drawee debit which of these accounts.
(a) Drawer’s A/c (b) Bills Receivable A/c
(c) Bills Payable A/c (d) Endorsee A/c
3) The person, other than the original creditor, to whom the amount in the bill is made payable is
known as the_______of the bill.
(a) Holder (b) Payee
(c) Drawer (d) Endorsee
4) In which of these ways a bill of exchange cannot be disposed off?
(a) Discounting with bank (b) Retain till maturity
(c) Endorsement to creditors (d) Destroying
5) A sold goods to B for Rs. 20,000. A will grant 5% discounted to B. B requested A to draw a bill. The
amount of bills will be:
(a) Rs. 20,000 (b) Rs. 19,000
(c) Rs. 19,200 (d) Rs. 18,000
6) X draws a bill on Y. X endorsed the bill to Z. The payee of the bill will be:
(a) X (b) Y
(c) Z (d) None
7) On 1.1.22 X draws a bill on Y for Rs.20,000 for 3 months due date of the bill will be:
(a) 01.04.2022 (b) 03.04.2022
(c) 04.04.2022 (d) 04.05.2022
8) On 1.8.22 X draw a bill on Y “for 30 days after sight”. The date of acceptance is 8.8.22. The due
date of the bill will be:
(a) 08.09.2022 (b) 10.09.2022
(c) 11.09.2022 (d) 09.09.2022
9) On 16.06.22 X draws a bill on Y for Rs. 25,000 for 30 days. 19th July is public holiday, due date of
the bill will be:
(a) 19th July (b) 18th July
(c) 17th July (d) 20th July
10) On 15.8.22 X draws a bill on Y for 3 months for Rs.50,000. 18th Nov was a sudden holiday, due date
of the bill will be:
(a) 17th November (b) 18th November
(c) 19th November (d) 15th November
11) A draws a bill on B for Rs. 50,000. A endorsed it to C in full settlement of Rs. 50,500 Noting charges
of Rs. 200 as the bill returned dishonoured. A want to pay the amount to C at 2% discount. The
amount to be paid by A to C will be:
(a) Rs. 49,000 (b) Rs. 49,490
(c) Rs. 49,686 (d) Rs. 50,500
12) Ram sells goods for Rs. 1,00,000 to Hari on 1st January 2006 and on the same day draws a bill on
Hari at three months for the amount. Hari accepts it and returns it to Ram, who discounts it on 4th
January ,2006 with his bank at 12% per annum. the discounting charges are:
(a) Rs. 12,000 (b) Rs. 4,000
(c) Rs. 3,000 (d) Rs. 6,000
46 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 13) On 01.06.22 X draw a bill on Y for Rs. 15,000 for 3 months. At maturity Y request X to accept Rs.
5000 in cash and for the balance to draw a fresh bill for 2 months together with 12% p.a.
Interest, amount of interest will be:
(a) Rs. 200 (b) Rs. 300
(c) Rs. 240 (d) Rs. 380
14) Who bears the interest charges on renewal of a bill of exchange on dishonour?
(a) Drawer (b) Payee
(c) Drawee (d)Endorsee
15) A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned
dishonored, noting charges Rs. 20. How much amount will the bank deduct from A’s bank balance at
the time of such dishonor?
(a) Rs. 12,000 (b) Rs. 11,880
(c) Rs. 12,020 (d) Rs. 11,900
16) Which of the following statements is true?
Noting charge is an expense to be borne by drawer
Noting charge is an expense to be borne by drawee
Noting charge is an expense to be borne by payee
Noting charge is an expense to be borne by bank
17) On 1.1.22 X draw a bill on Y for Rs.50,000. on maturity, the bill returned dishonoured as Y become
insolvent and 40 paise per rupee is recovered from estate. The amount recovered is:
(a) Rs. 20,000 (b) Rs. 30,000
(c) Rs. 50,000 (d) Nil
18) A draws a bill on B for Rs.50,000 for 3 months. At maturity, the bill returned dishonoured, noting
charges Rs.500, 40 paise in a rupee is recovered from B’s estate. The amount of deficiency to be
recorded on insolvency in the books of B will be:
(a) Rs. 20,200 (b) Rs. 30,300
(c) Rs. 19,800 (d) Rs. 19,000
19) Retirement of bill means:
(a) Making payment before the due date
(b) Cancellation of the bill
(c) Sending the bill for collection
(d) Endorsing the bill in favour of third party
20) Bills receivable book is a part of the:
(a) Ledger (b) Balance Sheet
(c) Journal (d) Profit & Loss A/c
21) A bill before acceptance is:
(a) Promissory Note (b) Credit Note
(c) Draft (d) Negotiable Instrument
22) Under which circumstances drawer and payee is same:
(a) When Drawer discounted the bill with banker
(b) When Drawer endorses the bill to the third party
(c) When Drawer had the bill till maturity
(d) When Drawee rejects to accept the bill
23) At the time of discharge of bill, the acceptor debits:
(a) Bills Receivable A/c (b) Bills payable A/c
(c) Discount A/c (d) Drawee A/c
24) Which of the following statement is true:
(a) Creditors can draw a bill on Debtors

47 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (b) Debtors can draw a bill on Creditors
(c) Bank will draw a bill on customer at the time of overdraft
(d) One can draw the bill on another under any circumstances
25) On dishonour of a bill received through endorsement, debit is given to which of these accounts:
(a) Endorser’s Account (b) Payee’s A/c
(c) Acceptor’s A/c (d) Bills payable A/c
26) X draws a bill on Y for Rs.30,000 on 1.1.22. X accepts the same on 4.1.22. Period of the bill 3 months
after date. What will be the due date of the bill:
(a) 4.4.22 (b) 3.4.22
(c) 7.4.22 (d) 8.4.22
27) On 15.8.22 X draws a bill on Y for 3 months for Rs.50,000. 18th Nov was a sudden holiday, due date
of the bill will be:
(a) 17th November (b) 18th November
(c) 19th November (d) 15th November
28) The cash allowance provided by the drawer to the drawee for the pre-payment of the bill is known
as:
(a) Discount (b) Rebate
(c) Commission (d) Bad Debts
29) On 1.1.22 Vikas draws a bill of exchange for Rs.10,000 due for payment after 3 months on Ekta. Ekta
accepts to this bill of exchange. On 4.3.22, Ekta retires the bill of exchange at a discount of 12%
p.a. Which of the discount is correct for premature payment in the books of Ekta?
(a) Rs. 120 (b) Rs. 100
(c) Rs. 140 (d) Rs. 160
30) On 1.1.22 X draws a bill on Y for Rs.30,000. At maturity Y request X to draw a fresh bill for 2 months
together with 12% p.a. interest. Nothing charges Rs.100. The amount of interest will be:
(a) Rs. 600 (b) Rs. 602
(c) Rs. 500 (d) Rs. 550
31) The renewal of a bill before dishonour implies that the ___ must be first cancelled.
(a) Cheque (b) Original Sales Bill
(c) Credit Note (d) Old Bill
32) On 1.1.22 X draw a bill on Y Rs.50,000 for 3 months. X got the bill discounted 4.1.22 at 12% rate. The
amount of discount will be:
(a) Rs. 1,500 (b) Rs. 1,600
(c) Rs. 1,800 (d) Rs. 1,450
33) A drew a bill on B for Rs. 50,000 for 3 months. Proceeds will be shared equally. A got the bill
discounted at 12% p.a. and remits required proceeds to B. The amount of such remittance will be:
(a) Rs. 24,250 (b) Rs. 25,000
(c) Rs. 16,167 (d) Rs. 32,333
34) Mr. Bobby sold goods worth Rs.25,000 to Mr. Bonny. Bonny immediately accepted a bill on 1.11.22,
payable after 2 months. Bobby discounted this bill @ 18% p.a. on 15.11.22. On the due date Bonny
failed to discharge the bill. Later on, Bonny became insolvent and 50 paise is recovered from Bonny’s
estate. How much amount of bad debt will be recorded in the books of Bobby:
(a) Rs. 12,500 (b) Rs. 9,437
(c) Rs. 11,687 (d) Rs. 13,650
35) Mr. X accepted a bill of exchange of Rs.15000 drawn by Y and payable in 3 months. He got it
discounted from bank at 2% discount. On the due date X failed to pay the bill as he was adjudged
insolvent. A final dividend of 0.25 in a rupee was received from his estate. What would be discounting
charges?

48 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Rs. 300 (b) Rs. 250
(b) Rs. 230 (d) Rs. 220
36) On June 5, 2022 X he draws a bill three months on Y for Rs. 5,000 against sale of goods. Y accepts
the bill. In the Books of X, the entry will be:
(a) Y A/c 5,000
To Bills Receivable A/c 5,000
(b) Y A/c 5,000
To Bills Payable A/c 5,000
(c) Bills Receivable A/c 5,000
To Sales A/c 5,000
(d) Bills Receivable A/c 5,000
To Y A/c 5,000

37) Ayub informs Maharaj that Sadashiv’s acceptance for Rs. 2,000 endorsed to Ayub has been
dishonoured. Noting Charges amounted to Rs. 50. In the books of Maharaja, the entry will be:
(a) Sadashiv A/c Dr 2,000
To Ayub A/c 2,000
(b) Sadashiv A/c Dr 2,050
To Ayub A/c 2,000
To Noting Charges A/c 50
(c) Sadashiv A/c Dr 2,050
To Ayub A/c 2,050
(d) Sadashiv A/c Dr. 2,000
Noting Charges A/c Dr. 50
To Ayub A/c 2,050

38) Vaibhav’s acceptance to Maharaja Rs. 6,000 is retired one month before that due date at a
discount of 12% p.a. In the books of Maharaja, the entry will be:
(a) Cash A/c Dr 5,280
Discount A/c Dr 720
To Bills Receivable A/c 6,000
(b) Cash A/c Dr 5,940
Discount A/c Dr 60
To Bills Payable A/c 6,000

(c) Cash A/c Dr 5,940

Discount A/c Dr 60
To Bills Receivable A/c 6,000

(d) Vaibhav A/c Dr. 5,940

Discount A/c Dr. 60
To Bills Receivable A/c 6,000

39) Nanda informs Kamesh that Shanti’s acceptance for Rs. 4,000 endorsed to Nanda has been
dishonoured. Noting charges Rs. 100. In the books of Kamesh, the following entry will be passed.
(a) Naresh A/c Dr. 4,100
To Shanti A/c 4,100

49 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (b) Naresh A/c Dr. 4,100
To Shanti A/c 4,100
(c) Shanti A/c Dr 4,100
To Nanda A/c 4,100
(d) Shanti A/c Dr 4,000
Noting Charges, A/c Dr. 100
To Nanda A/c 4,100

40) Sonali has sent a bill of Rupali for Rs. 12,000 to bank for collection. But Bank informed that the
bill has been dishonoured by Rupali. In the books of Sonali on dishonour the following entry will be
passed:
(a) Rupali A/c Dr. 12,000
To Bills Receivable A/c 12,000
(b) Rupali A/c Dr. 12,000
To Bank A/c 12,000
(c) Bills Sent for Collection A/c Dr. 12,000
To Rupali A/c 12,000
(d) Rupali A/c Dr. 12,000
To Bills sent for collection A/c 12,000

41) A bill drawn in India and made payable in Japan.

(a) Foreign Bill (b) Inland Bill
(c) Bill at Sight (d) Demand Bill
42) At the time of endorsement of a bill the drawee debits:
(a) Bills Payable A/c (b) Other Parties A/c
(c) No Entry (d) Endorsee A/c
43) Find out who can draw the bill if Mr. A sold goods to B.
(a) A will draw a bill on B (b) B will draw a bill on A
(c) Third Party will draw a bill on A (d) None
44) Bills Receivable Account is a:
(a) Nominal A/c (b) Personal A/c
(c) Real A/c (d) None
45) How many days grace period is given for payment of a bill of exchange?
(a) 3 days (b) 7 days
(c) 15 days (d) 21 days
46) Payment of Bills of Exchange is received by:
(a) Drawer (b) Endorsee
(c) Holder in the course of due date (d) Bank
47) Acceptance of the bill is given by:
(a) Creditor (b) Bank
(c) Debtor (d) Seller
48) At the time of drawing a bill, the drawer credits:
(a) Debtors A/c (b) Creditor’s A/c
(c) Bills Receivable A/c (d) Bills Payable A/c
49) Which of these is not an essential requirement of a valid bill of exchange?
(a) Acceptance (b) Consideration

50 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Specific Sum Payable (d) Writing
50) A draws bill of Rs. 1,000 on Mr. B accepts .it and returns it to Mr. A. Mr. A discount the bill for Rs.
960 at a discount of Rs. 40. A remits half of the proceeds to Mr. B i.e.
(a) Rs. 480 (b) Rs. 500
(c) Rs. 20 (d) Rs. 1,000

ANSWERS:

1) (c) 14) (c) 27) (c) 40) (d)

2) (a) 15) (c) 28) (b) 41) (a)
3) (b) 16) (b) 29) (b) 42) (c)
4) (d) 17) (a) 30) (b) 43) (a)
5) (b) 18) (b) 31) (d) 44) (c)
6) (c) 19) (a) 32) (a) 45) (a)
7) (c) 20) (c) 33) (a) 46) (c)
8) (b) 21) (c) 34) (a) 47) (c)
9) (b) 22) (c) 35) (a) 48) (a)
10) (c) 23) (b) 36) (d) 49) (b)
11) (c) 24) (a) 37) (c) 50) (a)
12) (c) 25) (a) 38) (c)
13) (a) 26) (a) 39) (c)

51 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 CHAPTER 5. BANK RECONCILIATION STATEMENT
1) Payment done by the account holder through issuing a cheque is entered in the passbook:
(a) At the time of issuing the cheque
(b) At the time of presenting the cheque to the bank for payment
2) A Bank Reconciliation Statement is prepared to know the causes for the difference between:
(a) The balances as per cash column of Cash Book and the Pass Book
(b) The balance as per bank column of Cash Book and the Pass Book
(c) The balance as per bank column of Cash Book and balances as per cash column of Cash Book
(d) Neither of the above
3) Pass book balance will be equal to the cash book balance if:
(a) Cheques deposited in to bank are collected
(b) Cheques issued are not presented for payment
(c) Direct deposit by customers in the Bank, has not been intimated to the business man
(d) The business man has no information about interest credited by bank
4) If the cheque is not presented for the payment up to the date of the preparation of Bank
Reconciliation statement, then the balance as per pass book will be:
(a) Higher than the balance shown by the cashbook by the amount of unrepresented cheque
(b) Lower than the balance shown by the cashbook by the amount of unrepresented cheque
(c) same as shown by the cashbook
(d) None of the above
5) Under Bank Reconciliation Statement, while adjusting the cash book -
(a) All the errors and commission in the cash book are taken into consideration
(b) All the errors and commission in the pass book are taken into consideration
(c) Delays in recording in the passbook due to deference in timing are taken into consideration
(d) All of the above
6) The bank reconciliation statement is started with –
(a) Bank column balance of the cash book
(b) Cash column balance of the cash book
(c) Pass Book Balance
(d) Bank column balance of cash book or pass book balance
7) Credit balance in the cash book means -
(a) Overdraft (b) Favorable Balance
(c) Either (a) or (b) (d) Neither (a) or (b)
8) Favourable balance as per Cash book means -
(a) Debit balance in the Bank column of cash book
(b) Credit balance in the Bank column of cash book
(c) Overdraft as per cash book
(d) Debit balance in the pass book
9) While adjusting the cash balance which one of the following is not taken into account -
(a) Payment directly received by bank as per instructions
(b) Payment directly made by the bank as per standing instructions
(c) Mistake in the Cash Book
(d) Mistake in the Pass Book

52 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 10) Mr. X had two accounts one current account and another saving bank A/c in a nationalized
bank. He drew a cheque of Rs.5,000 on saving bank but credited to current A/c in his cash
book. Similarly, a cheque of Rs.2,000 deposited in current A/c was debited to Saving bank
A/c. What would be effect of these errors in Bank pass books/Bank statement of these two
A/c’s -
(a) Current A/c balance would be less by Rs.2000 and saving A/c balance more by Rs.5000
(b) Current A/c balance would be more by Rs.2000 and saving A/c balance less by Rs.5000
(c) Current A/c balance would be less by Rs.5000 and saving A/c balance more by Rs.2000
(d) Current A/c balance would be more by Rs.5000 and saving A/c balance less by Rs.2000
11) Unfavorable balance as per bank pass book means which of these -
(a) Bank Overdraft (b) Debit bal. in pass book
(c) Debit bal. in cash book (d) Both (a) & (b)
12) Entry in debit side of bank pass book implies -
(a) Cash withdrawn (b) Business receipts
(c) Cash/cheque deposited in bank (d) Personal receipts
13) There was difference in bank column of Cash book and pass book by Rs. 2,500 on security it
was found that interest of Rs. 500 charged directly by bank was not entered in cash book. The
same was adjusted in the cash book before reconciliation statement. Now in bank
reconciliation statement, interest of Rs. 500 is to be -
(a) Added to the cash book balance
(b) Subtracted from the cash book balance
(c) Ignored while preparing BRS
(d) None of the above
14) The total payment side of Cash book is Rs. 700 short, if Bank Reconciliation statement is started
with passbook (overdraft) balance then -
(a) Rs. 700 will be less (b) Rs. 700 will be added
(c) Rs. 900 will be less (d) None of the above
15) The cash book shows a balance of Rs. 11,000 which was difference from the pass book balance.
The difference is found to be due to a credit entry in pass book amounting to Rs. 2,000 for
direct payment by a customer and a debit of Rs. 250 for Bank charges on collection of outstation
cheques and other services. What would be the balance as per Bank Pass Book?
(a) Rs. 12,750 (b) Rs. 12,250
(c) Rs. 13,750 (d) Rs. 13,500
16) Mr. T issued cheques worth Rs.25,000 in March 2022 out of which cheques worth Rs.10,000 only
were presented for payment by 31st March 2022 balance as per pass book was Rs.45,000. What
would be balance as per Cash book?
(a) Rs. 30,000 (b) Rs. 20,000
(c) Rs. 25,000 (d) Rs. 15,000
17) Debit balance as per Cash Book of ABC Ent. as on 31.3.22 is Rs.1,500. Cheques deposited but not
cleared amounts to Rs.100 and Cheques issued but not presented of Rs.150. The bank allowed
interest amounting Rs.50 and collected dividend Rs.50. Balance as per pass book should be-
(a) Rs. 1,600 (b) Rs. 1,450
(c) Rs. 1,850 (d) Rs. 1,650
18) Balance as per cash book is Rs. 5,000. Cheques issued but not presented for payment Rs. 2,000
and cheque sent for collected Rs. 1,500. The bank was wrongly debited the account of firm by
Rs. 200 Balance as per passbook will be -

53 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Rs. 5,500 (b) Rs. 5,300
(c) Rs. 5,700 (d) Rs. 8,300
19) Bank overdraft as per Cash book Rs. 13,500.
Cheques deposited but not credited Rs. 3,000.
Cheque issued but not presented Rs. 6,000.
Overdraft as per Bank statement will be:
(a) Rs. 10,500 (b) Rs. 10,000
(c) Rs. 11,000 (d) None of the above
20) Overdraft as per Cash book on 31st December 2022 Rs. 10,500
Cheques sent for collection but not collected Rs. 8,250
Cheque issued but not presented for payment Rs.12,000
Overdraft as per Pass book overdraft will be:
(a) Rs. 6,750 (b) Rs. 6,500
(c) Rs. 6,000 (d) None of the above
21) Bank overdraft as per trial balance is Rs. 1,60,000. Bank has allowed the customer to overview
80% of the hypothecated value of the stock. Hypothecation of stock has been done by the
bank at 80% of the original closing stock value. The amount of closing stock is -
(a) Rs. 2,00,000 (b) Rs. 2,50,000
(c) Rs. 1,02,400 (d) Rs. 1,28,000
22) An amount of Rs.2,500 is debited twice in the bank column of cash book. When credit balance
as per pass book is the starting point which one of these adjustments would be done at the
time of reconciliation -
(a) Add Rs.2,500 is balance as per pass book
(b) Deduct Rs.2,500 to balance as per pass book
(c) Add Rs.5,000 to balance as per pass book
(d) Deduct Rs.5,000 to balance as per pass book
23) Rs. 27,000 was transferred from bank Account no II to Bank Account No I by the bank without
advice to Bharat. In the BRS as on 31-12-2009, starting with Cash book balance this item will be-
(a) Added to cash book balance of A/c I and deducted from the Cash book balance of A/c II
(b) Deducted from cash book balance of A/c I and II
(c) Ignored as Contra Entry
(d) Deducted from cash book balance of A/c I and added to cash book balance of A/c II
24) A cheque for Rs. 5,000 issued to Eshwar was recorded in the Cash book for Rs. 500. In the BRS,
starting with Cash book balance -
(a) Rs. 4,500 will be added to Cash book balance
(b) Rs. 4,500 will be deducted from Cash book balance
(c) Rs. 500 will be deducted from Cash book balance
(d) Rs. 5,000 will be added to Cash book balance
25) The receipts side of the Cash Book was overcast by Rs. 1,000. In the BRS, starting with Cash
book balance -
(a) Rs. 2,000 will be added to Cash book balance
(b) Rs. 1,000 will be deducted from Cash book balance
(c) This will be ignored
(d) Rs. 1,000 will be deducted from Cash book balance

54 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 26) A cheque deposited amounting to Rs. 1,000 is dishonored. Bank has debited the amount of the
cheque and Rs. 15 for its charges. In the BRS, starting with Cash book balance -
(a) Rs. 1,000 will be added to and Rs. 15 will be deducted from Cash book balance
(b) Rs. 1,015 will be deducted from Cash book balance
(c) Rs. 1,000 will be added to Cash book balance
(d) Rs. 1,000 will be deducted from and Rs. 15 will be added to Cash book balance
27) When balance as per Cash Book is the starting point and cheque issued for payment of Rs. 400
was wrongly credited by bank as Rs. 900. The Bank reconciliation statement cash balance will
be:
(a) Added by Rs. 1,300 (b) Subtracted by Rs. 1,300
(c) Added by Rs. 900 (d) Subtracted by Rs. 400
28) The debit side of the pass book was under cast by Rs. 7,000. In the BRS, starting with Cash
book balance -
(a) Rs. 14,000 will be added to Cash book balance
(b) Rs. 7,000 will be deducted from Cash book balance
(c) This will be ignored
(d) Rs. 7,000 will be added to Cash book balance
29) A cheque for Rs. 9,000 drawn in favor of Iran was recorded properly property in the Cash
book. But it was not sent to him by mistake. In the BRS, starting with Cash book balance -
(a) Rs. 9,000 will be added to Cash book balance
(b) Rs. 9,000 will be deducted from Cash book balance
(c) This will be ignored
(d) Rs. 18,000 will be added to Cash book balance
30) A cheque of Rs. 6,000 issued to Virat was recorded on the receipt side of the Cash book. In
the BRS, starting with Cash book balance -
(a) Rs. 12,000 will be deducted to Cash book balance
(b) Rs. 6,000 will be deducted from Cash book balance
(c) Rs. 6,000 will be added to Cash book balance
(d) This will be ignored
31) Bank has credited interest on investments Rs. 750, which is not recorded in cash book. In the
BRS starting with Cash Book Balance, this item will be -
(a) Added to Cash Book Balance
(b) Deducted from Cash Book Balance
(c) Ignored
(d) Deducted twice from Cash Book Balance
32) When credit balance as per pass book is the starting point, Bank charges are -
(a) Subtracted (b) Added
(c) Neither of the two (d) None
33) When the balance as per pass book is the starting point cheques sent for collection but not
collected are -
(a) Added in the Bank Reconciliation statement
(b) Deducted in the Bank Reconciliation statement
(c) Not required to be adjusted in BRS
(d) Neither of the above
34) Bank has credited interest Rs. 200 and debited Rs. 50 for commission in the Pass Book. In the
BRS starting with Cash Book Balance, this item will be -

55 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Rs. 200 will be added and Rs. 50 will be deducted from pass book balance
(b) Rs. 200 will be deducted from and Rs. 50 will be added from pass book balance
(c) Rs. 200 will be added to pass book balance
(d) Rs. 200 will be deducted from pass book balance
35) Pass book showed Rs. 1,500 as cheque dishonored and Rs. 15 as bank charges. In BRS starting with
pass book –
(a) Rs. 1,500 will be added and Rs. 15 will be deducted from pass book balance
(b) Rs. 1,500 will be deducted from and Rs. 15 will be added from pass book balance
(c) Rs. 1,515 will be added to pass book balance
(d) Rs. 1,515 will be deducted from pass book balance
36) Bank had directly paid insurance premium of Rs. 150. In the BRS starting with Pass Book
Balance-
(a) Rs. 150 will be added to pass book balance
(b) Rs. 300 will be added to pass book balance
(c) Rs. 150 will be added to cash book balance
(d) This will be ignored
37) Mr. Krishan prasad a doctor deposited Rs. 300 cash directly in the Bank account. In the BRS
starting with Pass Book Balance -
(a) Rs. 300 will be added to pass book balance
(b) Rs. 600 will be deducted from pass book balance
(c) This will be ignored as a contra entry
(d) Rs. 300 will be deducted from pass book balance
38) Of the cheques of Rs. 3,500 issued creditors, cheques amounting to only Rs. 2,500 were -
presented to the bank. In the BRS starting with Pass Book Balance
(a) Rs. 1,000 will be added to Pass book balance
(b) Rs. 3,500 will be deducted from Pass book balance
(c) Rs. 3,500 will be added to Pass book balance
(d) Rs. 1,000 will be deducted from Pass book balance
39) When overdraft balance as per cash book is the starting point wrong debit in the pass book
will-
(a) Remain same (b) Added
(c) Deducted (d) None of the above
40) When the overdraft as per cash book is the starting point, a cheque of Rs. 500 deposited in to
Bank but not recorded in cash book will be -
(a) Added by Rs. 500 (b) Deducted by Rs. 500
(c) Added by Rs. 1,000 (d) Deducted by Rs. 1,000
41) When favorable balance as per cash book is the starting point, wrong debit by the Bank to the
firm will be -
(a) Added (b) Subtracted
(c) Both (d) None
42) Overdraft as per cash book means -
(a) Credit balance is the cash book (b) Credit balance in the pass book
(c) Debit Balance as per pass book (d) Both (a) & (c)
43) If balance as per pass book is the starting point, then uncollected cheques are -
(a) Added in BRS (b) Subtracted in BRS
(c) Ignored while preparing BRS (d) None of the above
56 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 Compare the following books, and answer question below -
Cash book (Bank column only)
Date Particulars Amount Date Particulars Amount
April 1 To balance c/d 500 April 5 By Wages A/c 200
10 To Kasar A/c 100 15 By Salokhe A/c 200
15 To Interest A/c 50 20 By Power A/c 50
25 To sales 200 30 By Balance c/d 400
850 850
Pass Book
Date Particulars Amount Date Particulars Amount
May 1 To Salokhe 200 May1 By balance b/d 350
2 To Power 50 2 By Kasar 100
3 To charges 25 5 By sales 200
4 To Kulkarni 200 10 By Jamodar 100
31 To Balance c/d 275
750 750
44) In the BRS, starting with balance as per Cash book Wages 200:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
45) In the BRS, starting with balance as per Cash book cheque to Salokhe for Rs. 200:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
46) In the BRS, starting with balance as per Cash book, interest Rs. 50:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
47) In the BRS, starting with balance as per Cash book cheque for power for Rs. 50:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
48) In the BRS, starting with balance as per Cash book Cheque from Kasar for Rs. 100:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
49) In the BRS, starting with balance as per Cash book Cheque for sale for Rs 200.
(a) Will be ignored
(b) Will be deducted from Cash book balance

57 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice
50) In the BRS, starting with balance as per Cash book bank charges Rs. 25:
(a) Will be ignored
(b) Will be deducted from Cash book balance
(c) Will be added to Cash book balance
(d) Will be added to Cash book balance twice

ANSWERS:

1) (b) 14) (a) 27) (a) 40) (b)

2) (b) 15) (a) 28) (d) 41) (b)
3) (a) 16) (a) 29) (a) 42) (d)
4) (a) 17) (d) 30) (a) 43) (a)
5) (a) 18) (c) 31) (a) 44) (a)
6) (d) 19) (a) 32) (b) 45) (c)
7) (a) 20) (a) 33) (a) 46) (a)
8) (a) 21) (b) 34) (a) 47) (c)
9) (d) 22) (a) 35) (c) 48) (b)
10) (d) 23) (a) 36) (a) 49) (b)
11) (d) 24) (b) 37) (d) 50) (a)
12) (a) 25) (b) 38) (d)
13) (c) 26) (b) 39) (b)

58 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 CHAPTER 6. JOINT VENTURE ACCOUNTING
1) Credit balance of joint venture account represents:
(a) Loss (b) Due to coventurer
(c) Profit (d) Due to supplier
2) Joint venture is a ______ partnership.
(a) Permanent (b) Temporary
(c) Illegal (d) Registered
3) Which of these accounts are not opened in a Joint venture Accounts?
(a) Joint Bank A/c (b) Joint Venture A/c
(c) Co-venturer's personal A/c (d) Stock Reserve
4) Which of the following is not a difference between the joint venture and partnership.
(a) There is no specific act regarding joint venture
(b) The persons carrying on venture are known as Co-venturers
(c) Co-venturers share profit/loss of the venture at an agreed ratio
(d) Joint venture is limited to a specific purpose
5) When Co-Venturers initially contribute for a joint venture which account should be debited in
the case when separate set of books are maintained –
(a) Purchase A/c (b) Joint Venture A/c
(c) Venturer’s Capital A/c (d) Joint Bank A/c
6) Which of the following accounts are maintained in the joint venture when separate set of books
are maintained –
(a) Joint Bank A/c (b) Joint Venture A/c
(c) Co-venturer's A/c (d) All of these
7) For opening Joint Bank account, in case of separate sets of books:
(a) Venture A/c will be debited and Ventures A/c will be credited
(b) Joint Bank A/c is debited and Ventures Capital A/c is credited
(c) Joint Venture A/c is debited and Joint Bank A/c will be credited
(d) Joint Bank A/c will be debited and Joint Venture A/c will be credited
8) For purchase of plant from Joint Bank Account, in case separate sets of books are maintained,
the correct journal entry will be:
(a) Plant A/c will be debited and Joint Bank A/c will be credited
(b) Joint Venture A/c will be debited and Joint Bank A/c will be credited
(c) Plant A/c will be debited and Ventures Capital A/c will be credited
(d) Joint Venture A/c will be debited and Plant A/c will be credited
9) Which of the following statement is true when separate set of books is maintained?
(a) Expenses paid by venturer will be credited to joint bank account
(b) Expenses paid by venturer will be credited to venturer's capital account
(c) Expenses paid by venturer will be credited to Joint Venture account
(d) Expenses paid by venturer will be credited to Outstanding Expenses Account
10) In a joint venture for plots, between Ahuja and Saluja, where separate books are kept; The entry
for Land purchased for Rs.2,00,000 will be:
(a) Joint Bank A/c Dr. 2,00,000
To Joint Venture A/c 2,00,000
(b) Land A/c Dr. 2,00,000
To Saluja A/c 2,00,000

59 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Joint Venture A/c Dr. 2,00,000
To Joint Bank A/c 2,00,000
(d) Purchase A/c Dr. 2,00,000
To Joint Bank A/c 2,00,000

11) In a joint venture for plots, between Ahuja and Satuja, where separate books are kept; and where
the ratio of contribution was 3:2.
At the end of the venture, if there is a profit of Rs.95,000; in the absence of any specific profit-
sharing ratio, the following entry will be passed:
(a) Ahuja A/c Dr. 47,500
Saluja A/c Dr. 47,500
To Joint Venture A/c 95,000
(b) Joint Venture A/c Dr. 95,000
To Saluja A/c 57,000
To Ahuja A/c 38,000
(c) Joint Venture A/c Dr. 95,000
To Saluja A/c 47,500
To Ahuja A/c 47,500
(d) Profit & Loss A/c Dr. 95,000
To Saluja A/c 47,500
To Ahuja A/c 47,500

12) Shri Kedar of Nagpur and Shri Deshmukh of Karol undertook in April 2023 the construction of
Poonam Market Hall for Rs.6,00,000 to be completed within a year. On the same date Kedar
brought in Rs.1,00,000 and Deshmukh brought in Rs.50,000, to be deposited in a Joint Bank A/c.
They agreed to share the profit or loss in the ratio of 2:1 respectively. The following expenses
were paid from the Joint Bank A/c - Materials - Rs.2,25,000, Wages - Rs.1,95,000 and Plant
Rs.40,000. The construction was completed in time, but there was some defect in construction
work so the contract price was received after deducting Rs.15,000. At the end of the work, plant
was considered as having depreciated by 20%. Half of the plant was taken over by Kedar and
remaining half was sold for Rs.15,000.
(a) Profit Rs.1,56,000 (b) Loss Rs.1,56,000
(c) Profit Rs.52,000 (d) Profit Rs.1,04,000
13) Kamal and Shamal entered into Joint venture to purchase and sell plots. Kamal contributed
Rs.5,00,000 and Shamal Rs.2,50,000 and the amount deposited into Joint Bank account The
transactions of the venture were as follows Purchased land Rs.2,50,000 Incurred development
expenses Rs.1,00,000 Shamal paid registration fees Rs.12,500 3/4 land was sold at Rs.3,76,250.
The remaining land was taken over by Kamal for Rs.1,00,000.
(a) Rs.13,750 (b) Rs.56,875
(c) Rs.1,13,750 (d) Rs.1,26,250
14) A purchased goods costing 1,00,000. B sold the goods for Rs.1,50,000. Profit sharing ratio between
A and B equal. If same sets of books are maintained, what will be the final remittance?
(a) B will remit Rs.1,25,000 to A
(b) B will remit Rs.1,50,000 to A
(c) A will remit Rs.1,00,000 to B
(d) B will remit Rs.25,000 to A
15) A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses
equally. A provides biscuits from stock Rs.10,000. He pays expenses amounting to Rs.1,000. V incurs
further expenses on carriage Rs.1,000, He receives cash for sales Rs.15,000. He also takes over
goods to the value of Rs.2,000. The profit on joint venture is:

60 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Rs. 3,000 (b) Rs. 5,000
(c) Rs. 6,000 (d) Rs. 3,500
16) A and B enter into a joint venture for purchase and sale of Type-writer. A purchased typewriter
costing Rs.1,00,000. Repairing expenses Rs.10,000, printing expenses Rs.10,000. B sold it at 20%
margin on selling price. The sales value will be:
(a) Rs. 1,25,000 (b) Rs. 1,50,000
(c) Rs. 1,00,000 (d) Rs. 1,40,000
17) A and B enter into a joint venture to underwrite the shares of K Ltd. K Ltd make an equity issue
of 1,00,000 equity shares of Rs.10 each. 80% of the issue are subscribed by the party. The profit-
sharing ratio between A and B is 3:2. The balance shares not subscribed by the public, purchased
by A and B in profit sharing ratio. How many shares to be purchased by A?
(a) 80,000 shares (b) 72,000 shares
(c) 12,000 shares (d) 8,000 shares
18) A and B enter into a joint venture sharing profit and losses in the ratio 2:1. A purchased goods
costing Rs.2,00,000. B sold the goods for Rs.2,50,000. A is entitled to get 1% commission on
purchase and B is entitled to get 5% commission on sales. The profit on venture will be:
(a) Rs.35,500 (b) Rs.36,000
(c) Rs.34,000 (d) Rs.38,000
19) Ram in a joint venture with Shyam purchased goods costing Rs.20,000 and sends to Shyam for sale
incurring Rs.1,000 on freight. Shyam took the delivery and paid Rs.500 as carriage. He sold the
goods costing Rs.18,000 for Rs.25,000 and kept the remaining goods at cost price, sharing equal
profits of the venture, amount to be paid by Shyam to Ram will be:
(a) Rs. 25,000 (b) Rs. 22,250
(c) Rs. 23,750 (d) Rs. 24,500
20) X and Y enter into a joint venture. X supplied goods to Y from his own stock worth Rs.70,000. X
incurred expenses amounting to Rs.6000 on joint venture. The venture resulted in a total profit of
Rs.15,000 of which their ratio of distribution is 2:1. The entire sale proceeds were received by Y.
Amount received by X from Y in final settlement will be _____
(a) Rs. 85,000 (b) Rs. 86,000
(c) Rs. 80,000 (d) Rs. 75,000
21) In a joint venture between A and B, A spent Rs.3,000 on freight and also raised a loan from Bank
of Rs.50,000 at 18% p.a. repayable after one month B spend Rs.5,000 as selling expenses and he
also raised a loan from Bank of Rs.150,000 at 18% repayable after Two months. The total expenses
of Joint Venture will be –
(a) Rs. 8,000 (b) Rs. 8,500
(c) Rs. 9,500 (d) Rs. 13,250
22) M and N enter into a Joint venture where M supplies goods worth Rs.6,000 and spends Rs.100 on
various expenses. N sells the entire lot for Rs.7,500 meeting selling expenses amounting to Rs.200,
Profit sharing ratio equal. N remits to M the amount due. The amount of remittance will be:
(a) Rs. 6,700 (b) Rs. 7,300
(c) Rs. 6,400 (d) Rs. 6,100
23) A purchased goods costing 42,500. B sold goods costing Rs.40,000 at Rs.50,000. Balance goods
were taken over by A at same gross profit percentage as in case of sale. The amount of goods
taken over will be:
(a) Rs. 3,125 (b) Rs. 2,500
(c) Rs. 3,000 (d) None of the above
24) A and B enter into a joint venture sharing profit and losses in the ratio 2:1. A purchased goods
costing Rs.2,00,000. B sold the goods for Rs.2,50,000. A is entitled to get 1% commission on
purchase and B is entitled to get 5% commission on sales. The profit on venture will be:
(a) Rs. 35,500 (b) Rs. 36,000

61 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Rs. 34,000 (d) Rs. 38,000
25) A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a joint
venture, profits being divided equally. A draws a bill on B for an amount equivalent to 80% of cost
on consignment. The amount of bill will be:
(a) Rs.10,000 (b) Rs.8,000
(c) Rs. 6,000 (d) Rs.9,000
26) A and B were partners in a joint venture sharing profits and losses in the proportion 3/5th and
2/5th respectively. A supplies goods to the value of Rs.60,000 and incurs expenses amounting
Rs.6,000. B supplies goods to the value of Rs.16,000 and his expenses amount to Rs.3,000. B sells
goods on behalf of the joint venture and realizes Rs.1,20,000. B entitled to a commission of 5% on
sales. B settles his account by bank draft. How much amount, B will pay to A as final settlement?
(a) Rs.83,400 (b) Rs.93,200
(c) Rs.80,000 (d) Rs.66,000
27) A purchased 1000 kg of rice costing Rs.200 each. Carriage 2,000, insurance 3,000. 4/5th of the
boxes was sold by B at Rs.250 per boxes. Remaining stock were taken over by B at cost. The
amount of stock taken over will be –
(a) Rs.40,000 (b) Rs.41,000
(c) Rs.50,000 (d) Rs.50,200
28) Goods costing Rs.10,000 destroyed by an accident, insurance claim nil.
(a) Rs.10,000 will be credited to Joint Venture Account
(b) No Entry will be made in the books of Joint Venture
(c) Rs.10,000 will be debited in Joint Venture Account as Loss
(d) Rs.8,000 will be credited in Joint Venture Account
29) A and B enter into joint venture sharing profit and loss equally. A purchased 100kg of rice @
Rs.20/kg. Brokerage paid Rs.200, carriage paid Rs.300. B sold 90kg of rice @ 22/kg. Balance rice
were taken over by B at cost. The value of rice taken over to be recorded in joint venture will be:
(a) Rs.200 (b) Rs.250
(c) Rs.230 (d) Rs.220
30) A and B enter into a joint venture sharing profits and losses equally. A purchased 5,000 kg of rice
@ Rs.50/kg. B purchased 1,000 kg of wheat @ Rs.60/kg. A sold 1,000 kg of wheat @ Rs.70/kg and
B sold 5,000 kg of rice @ Rs.60/kg. What will be the final remittance?
(a) B will remit Rs.2,10,000 to A
(b) A will remit Rs.2,10,000 to B
(c) A will remit Rs.2,00,000 to B
(d) B will remit Rs.1,80,000 to A
31) A and B entered into a joint venture. They opened a joint bank account by contributing Rs.2,00,000
each. The expenses incurred on venture is exactly equal to Rs.2,00,000. Once the work is
completed, contract money received by cheque Rs.4,00,000 and in shares Rs.50,000. The shares
are sold for Rs.40,000. What will be the profit on venture?
(a) Rs.2,50,000 (b) Rs.2,40,000
(c) Rs.4,40,000 (d) Rs.4,50,000
32) In a Joint venture A contributes Rs.5,000 and B contributes Rs.10,000. Goods are purchased for
Rs.11,200. Expenses amount to Rs.800. Sales amount to Rs.14,000 the remaining goods were taken
by B at an agree price of Rs.400. A and B share Profit and losses in the ratio of 1:2 respectively.
As a final settlement, how much A will receive?
(a) Rs.5,800 (b) Rs.6,000
(c) Rs.5,000 (d) Rs.10,800
33) A and B enter into a joint venture sharing profits and losses equally. A provides goods from his
stock Rs.10,000. H pays expenses amounting to Rs. 1,000. B incurs further expenses on carriage

62 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 Rs.2,000. He receives cash for sales Rs.15,000. He also takes over goods to the value of Rs.3,000.
What will be the amount to be remitted by B to A?
(a) Rs.13,500 (b) Rs.15,000
(c) Rs.11,000 (d) Rs.10,000
34) In a Joint venture, A contributes Rs.8000 and B contributes Rs.10000. Goods are purchased for
Rs.11,000. Expenses amount to Rs.1,000. Sales amount to Rs.14,000 the remaining goods were taken
by B at an agreed price of Rs.400. A and B share profit and losses in the ratio of 1:2 respectively.
As a final settlement, how much A will receive?
(a) Rs.8,800 (b) Rs.9,000
(c) Rs.8,000 (d) Rs.13,800
35) A and B entered into a joint venture to purchase and sell a new item. They agreed to share the
profit and losses equally. A purchased goods worth Rs.90,000 and spent Rs. 25,000 in sending the
goods, B spent Rs. 5,000 as selling expenses and sold goods for 2,00,000. What will be the amount
to be remitted by B to A as final settlement?
(a) Rs.1,55,000 (b) Rs.1,50,000
(c) Rs.1,15,000 (d) Rs.80,000
36) A and B enter into a joint venture sharing profit and losses equally. A purchased 5000 kg of rice
@ Rs.25/kg. B purchased 1000 kg of wheat @ Rs.30/kg. A sold 1000 kg of wheat @ Rs.35/kg and B
sold 5000 kg of rice @ Rs.30/kg. The profit on venture will be:
(a) Rs.55,000 (b) Rs.50,000
(c) Rs.60,000 (d) Rs.30,000
37) A purchased goods costing 1,00,000. B sold the goods for Rs.1,60,000. Profit sharing ratio between
A and B equal, what will be the final remittance?
(a) B will remit Rs.1,30,000 to A
(b) B will remit Rs.1,55,000 to A
(c) A will remit Rs.1,05,000 to B
(d) B will remit Rs.30,000 to A
38) A and B enter into a joint venture to underwrite the shares of a company which make an equity
issue of 100000 shares of Rs.10 each. 80% of the issue was subscribed by the public. The profit-
sharing ratio between A and B is 3:2. The balance shares not subscribed by the public, were
purchased by A and B in profit sharing ratio. How many shares to be purchased by B.
(a) 80,000 shares (b) 72,000 shares
(c) 12,000 shares (d) 8,000 shares
39) Which of these is not a point of difference between consignment and Joint venture?
(a) Principal agent relationship vs. Equal ownership
(b) Commission vs. Profit sharing
(c) No Capital contribution vs. Capital contribution
(d) None of these
40) Under Joint Bank Account method which of these accounts are not opened:
(a) Joint Bank A/c (b) Memorandum A/c
(c) Joint Venture A/c (d) Co-Venturer personal A/c
41) For material supplied from own stock by any of the venturer, the correct journal entry will be:
(In case of separate sets of books of a Joint Venturers)
(a) Joint Venture A/c debited and Venturers Capital A/c credited
(b) Joint Venture A/c debited and Joint Bank A/c credited
(c) Joint Venture A/c debited and Material A/c credited
(d) Joint Bank A/c debited and Joint Venture A/c credited
42) Which of these accounts is not a part of double entry system?
(a) Memorandum A/c (b) Joint Bank A/c
63 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Joint Venture A/c (d) Co-Venturer A/c
43) What does the balance in Memorandum Joint Venture A/c Shows?
(a) Closing stock (b) Profit and loss
(c) Balance due to other co-venture (d) Un-reconciled balance
44) X a co-venture returns goods to other co-venture Y. in whose books the transaction would be
recorded under Memorandum Joint Venture Method:
(a) Y (b) X
(c) X and Y (d) None of them
45) 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 account
(d) The discounting charges will be borne by bank
46) Generally, when the size of the venture is ____, the co-venturers keep separate set of books of
account for the joint venture.
(a) Small (b) Medium
(c) Big (d) All of the above
47) Joint venture account is:
(a) Personal A/c (b) Real A/c
(c) Nominal A/c (d) None of above
48) A purchased goods costing Rs.42,500. B sold goods costing Rs.40,000 at Rs.50,000. Balance
goods were taken over by A at Rs.4,000. The profit on joint venture is –
(a) Rs. 1,500 (b) Rs. 7,500
(c) Rs. 3,500 (d) None of above
49) A and B enter into a Joint Venture by opening a joint bank account contributing Rs.10,00,000.
The profit-sharing ratio between A and B is 3:2. How much amount to be contributed by A?
(a) Rs. 6,00,000 (b) Rs. 4,00,000
(c) Rs. 3,00,000 (d) Rs. 5,00,000
50) If unsold goods costing Rs.20,000 is taken over by Venture at Rs.15,000, the Joint Venture A/c
will be credited by:
(a) Rs. 20,000 (b) Rs. 15,000
(c) Rs. 5,000 (d) NIL

ANSWERS:

1) (c) 11) (c) 21) (d) 31) (b)

2) (b) 12) (a) 22) (a) 32) (a)
3) (d) 13) (c) 23) (a) 33) (a)
4) (c) 14) (a) 24) (a) 34) (a)
5) (d) 15) (b) 25) (b) 35) (a)
6) (d) 16) (b) 26) (a) 36) (d)
7) (b) 17) (c) 27) (b) 37) (a)
8) (b) 18) (a) 28) (b) 38) (d)
9) (b) 19) (c) 29) (b) 39) (d)
10) (c) 20) (b) 30) (a) 40) (a)

64 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 41) (a) 44) (d) 47) (c) 50) (b)
42) (a) 45) (c) 48) (a)
43) (b) 46) (c) 49) (a)

65 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 CHAPTER 7. CONSIGNMENT ACCOUNTING
1) The owner of consignment stock is:
(a) Consignor (b) Consignee
(c) Debtors (d) None
2) The consignee is a/an:
(a) Agent (b) Buyer
(c) Bailee (d) Creditor
3) When the Consignor sends goods to consignee, he prepares a ________.
(a) Account Sale (b) Cash Memo
(c) Proforma Invoice (d) Credit Memo
4) A periodic statement furnished by the consignee to consignor is ________.
(a) Proforma Invoice (b) Debit Note
(c) Account Sales (d) None of the above
5) Which of these accounts are not opened in the books of consignor.
(a) Consignment A/c (b) Commission A/c
(c) Goods sent on consignment A/c (d) Consignee Personal A/c
6) If del-credere commission is not allowed then in case of bad debts which account should be
credited in the books of Consignor:
(a) Consignee A/c (b) Profit & Loss A/c
(c) Bad Debts A/c (d) Bank A/c
7) In the Books of Consignor, the Profit of Consignment will be transferred to:
(a) General Trading A/c (b) General P&L A/c
(c) Capital A/c (d) None of the above
8) Closing Stock with consignee is shown in the Balance sheet of ________.
(a) Consignee (b) Consignor
(c) Agency (d) None of the above
9) If consignor drawn a bill on consignee and discounted it with the banker the discounting charges
will be debited in:
(a) General P&L A/c (b) Consignment A/c
(c) Consignee A/c (d) Debtors A/c
10) The unsold stock on consignment is valued at:
(a) Original cost of goods
(b) Original cost-plus non-recurring (direct expenses) incurred by both consignor and consignee
(c) Original cost-plus non-recurring (direct expenses) incurred only by the consignor
(d) Original cost plus all expenses
11) X of Kolkata sends out 100 boxes to Y of Delhi costing Rs 200 each. Consignor’s expenses Rs 4,000.
Consignee’s non-recurring expenses Rs 900 & recurring Rs 500. 1/10th of the boxes was lost in
transit. 2/3rd of the boxes received by consignee were sold. The amount of consignment stock
will be:
(a) Rs 7,200 (b) Rs 7,500
(c) Rs 7,000 (d) Rs 6,000
12) PARIKH & CO. of Nagpur consigned D of Delhi 1000 kgs of Oil @ 13 per Kg. Consignor spent Rs.
750 on cartage, insurance and freight. On the way due to leakage 50 kg. of oil was spoiled (normal
loss). D spent Rs. 500 on Octroi and carriage. His selling expenses were Rs. 400 on 800 kg. of oil
sold. Value of consignment stock will be:

66 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Rs 2,250 (b) Rs 2,000
(c) Rs 2,200 (d) None of the above.
13) X of Kolkata sends out 400 bags to Y on Delhi costing Rs.200 each. Consignor expenses Rs.2,000.
Y expenses non selling Rs.2,000, selling Rs.1,000. 300 bags were sold by Y. Value of consignment
stock will be:
(a) Rs 20,400 (b) Rs 20,200
(c) Rs 20,000 (d) Rs 21,000
14) A of Ahmedabad consigned goods of Rs. 10,000 to M of Madras and paid Rs. 500 for expenses.
The consignee paid Rs. 100 for freight and Rs. 50 godown rent 80% of goods were sold and
commission of Rs. 500 was paid. Find the value of closing stock.
(a) Rs 2,000 (b) Rs 2,120
(c) Rs 2,100 (d) Rs 2,030
15) Main objective of sending goods at invoice price is to____
(a) Reduce Profit (b) Reduce Income Tax
(c) Keep the real profit a secret (d) None of the above
16) Consignment stock will be recorded in the balance sheet of consignor on asset side at:
(a) Invoice Price less stock reserve (b) Invoice Price
(c) At lower than cost price (d) 10% less than invoice price
17) Stock reserve is credited to adjust ____
(a) Gross Profit
(b) Valuation of closing stock to cost
(c) Valuation of opening stock to cost
(d) 10% less than invoice price
18) Goods sent to consignment at cost + 33 /
. The percentage of loading on invoice price will be:
(a) 25% (b) 33.33%
(c) 20% (d) None of the above
19) X send out of costing Rs. 80,000 to Y of Mumbai so as to show 20% profit on invoice value. 3/5th
of the goods received by consignee is sold at 10% above invoice price. The amount of sale value
will be:
(a) Rs. 66,000 (b) Rs. 60,000
(c) Rs. 50,400 (d) Rs. 52,800
20) Ram of Kolkata sends out goods costing 100,000 to Y of Mumbai at 20% profit on invoice price.
1/10th of the goods was lost in transit. 1/2 of the balance goods were sold. The amount of stock
reserve on consignment stock will be:
(a) Rs. 4,500 (b) Rs. 9,000
(c) Rs. 11,250 (d) None
21) X sends out 500 bags to Y, costing Rs. 400 each at an invoice price of Rs. 450 each. Consignor’s
expenses Rs. 4,000; consignee’s expenses freight Rs. 1000, selling Rs. 2000. 400 bags were sold.
The amount of Consignment Stock reserve will be:
(a) Rs. 5,000 (b) Nil
(c) Rs. 10,000 (d) Rs. 10,200
22) P of Delhi sends out 100 boxes of toothpaste costing Rs.200 each. Each box consists of 12 packets.
60 boxes were sold by consignee at Rs.20 per packet. Amount of sale value will be:
(a) Rs. 14,400 (b) Rs. 12,000
(c) Rs. 13,200 (d) Rs. 14,200
23) Balance in consignment account shows:
(a) Stock lying with consignee
(b) Profit or Loss on consignment

67 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Amount due from consignee
(d) Amount due to consignee
24) Goods sent on consignment Rs. 7,60,000. Opening consignment stock Rs. 48,000. Cash sales Rs.
7,00,000. Consignor’s expenses Rs. 20,000. Consignee’s expenses Rs. 12,000. Commission Rs.
20,000. Closing consignment stock Rs. 3,00,000. The profit on consignment is:
(a) Rs. 1,50,000 (b) Rs. 1,40,000
(c) Rs. 92,000 (d) Rs. 84,000
25) Mohan consigned 50 cases at Rs. 350 each to B of Varanasi to sell it on consignment basis.
Consignor paid 1,800 for freight and insurance. all the cases were sold for Rs. 28,000. Selling
expenses paid by agent Rs. 900 and their commission to Rs. 1,000. Consignment profit will be:
(a) Rs. 7,000 (b) Rs. 6,800
(c) Rs. 8,000 (d) None of the above
26) Suresh of Delhi consigned 600 fans to Naresh of Agra to be sold at his risk. The cost of each fan
is Rs 300. Suresh paid Rs 6,000 as freight. Naresh paid Rs 1,500 for octroi; Rs 3,500 for godown
rent. 500 fans were sold for Rs 1,80,000. Naresh was entitled to 4% commission on sale @ Rs 350
per fan and 20% of any surplus price realized. Profit on consignment will be:
(a) Rs. 12,250 (b) Rs. 12,000
(c) Rs. 14,000 (d) Rs. 15,000
27) Abnormal loss is valued like:
(a) Normal Loss (b) Stock in hand
(c) Purchase (d) Sales
28) X of Kolkata send out 1,000 bags to Y of Delhi costing Rs. 200 each. Consignor’s expenses Rs.
2,000. Y’s expenses non-selling Rs. 1,000 & selling Rs. 2,000. 100 bags were lost in transit. Value
of lost in transit will be:
(a) Rs. 20,200 (b) Rs. 20,300
(c) Rs. 20,000 (d) Rs. 23,000
29) Mahindra of Madras sent goods to Jaya of Delhi at an invoice price of Rs. 29,675. He paid freight
Rs. 762; cartage Rs. 231 and insurance Rs. 700. On the way one-fourth of the goods was lost by
fire and claim of Rs. 5,000 was recovered from the insurance company. Calculate abnormal loss.
(a) Rs. 5,000 (b) Rs. 7,842
(c) Rs. 7,419 (d) Rs. 2,842
30) If no del credere commission is paid to the consignee ________ account should be debited for
credit sale in the books of consignee.
(a) Consignee A/c (b) Consignment A/c
(c) Consignment Debtors A/c (d) Consignor A/c
31) X of Kolkata sends out certain goods at cost + 25%. Invoice value of goods sends out Rs. 2,00,000.
4/5th of the goods were sold by the consignee at Rs. 1,76,000. Commission 2% upto invoice value
and 10% of any surplus above invoice value. The amount of commission will be:
(a) Rs. 4,800 (b) Rs. 5,200
(c) Rs. 3,200 (d) Rs. 1,600
32) A sends goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price.
Commission is 10% on sales at Invoice Price and 25% of any surplus realized above IP. 10% of the
goods sent out on consignment, invoice value of which is Rs. 12,500 were destroyed. 75% of the
total consignment is sold by B at Rs. 1,00,000. What will be the commission payable to B?
(a) Rs. 10,937.50 (b) Rs. 16,250
(c) Rs. 10,000 (d) Rs. 9,700
33) Which of the following details are contained in an account sales:
(a) Expenses incurred on behalf of consignor (b) Sales made
(c) Unsold stock left with consignee (d) All of the above

68 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 34) Which of the following statement is correct:
(a) Consignee will pass a journal entry in his books at the time of receiving goods from consignor.
(b) Consignee will not pass any journal entry in his books at the time of receiving goods from
consignor.
(c) The ownership of goods will be transferred to consignee at the time of receiving the goods.
(d) Consignee will treat consignor as creditor at the time of receiving goods.
35) If both normal loss and abnormal loss occur at the same stage. Which of them will be assumed to
have occurred before for calculation purpose:
(a) Normal Loss (b) Abnormal Loss
(b) Both of the above (d) None of the above
Mr. X sent 250 units costing Rs. 10,000 each to Mr. Y. The goods were to be sold so as to yield a
gross profit on 20% on sales. Mr. Y sold 150 units @ Rs. 14,200 per unit on credit and 75 units @
Rs. 14,000 for cash. Calculate the commission due to Mr. Y, if:
36) Mr. Y was entitled to a commission of Rs. 500 per unit.
(a) Rs. 1,12,500 (b) Rs. 75,000
(b) Rs. 37,500 (d) None of the above
37) Mr. Y was entitled to an ordinary commission of 5% and del-credere commission of 2%.
(a) Rs. 1,59,000 (b) Rs. 63,600
(b) Rs. 2,22,600 (d) None of the above
38) Which commission is given by the consignor to protect itself from the bad debts:
(a) Ordinary Commission (b) Del-Credere Commission
(b) Overriding Commission (d) None of these
39) 100 tins of oil at Rs. 130 per tin of 15 Kg. each were sent to Bhavnagar by Ahmedabad to be sold
on consignment. He pays Rs. 625 for expenses. Normal loss is considered to be 5%. Calculate the
value of closing stock if the quantity left in 285 kgs.
(a) Rs. 2,600 (b) Rs. 2,470
(b) Rs. 2,725 (d) None of these
40) Loss of stock is said to be normal when –
(a) It is because of bad packing
(b) It is unavoidable and natural
(c) The stock is destroyed in fire
(d) It is loss by theft
41) Panna Lal sends 100 sewing machines on consignment to Ram Lal. The cost of each machine is Rs.
150. Panna Lal spends Rs. 500 on packing and dispatch. Ram Ji Lal received the consignment and
informed that 90 machine have been sold at 180 each. Expenses paid by Ram Ji Lal are freight
Rs. 500, carriage and octroi Rs. 200. Godown rent Rs. 100 and insurance Rs. 150. Ram Ji Lal
entitled to commission of 7 ½ % on sales. Profit on consignment will be—
(a) Rs. 150 (b) Rs. 155
(b) Rs. 200 (d) Rs. 160
42) Goods of the invoice value of Rs. 1,20,000 sent out to consignee at 20% profit on cost. The
loading amount will be –
(a) Rs. 20,000 (b) Rs. 24,000
(b) Rs. 25,000 (d) None
43) X of Kanpur send out 1000 boxes to Y of Delhi, costing Rs. 200 each. at an invoice price of Rs.
220 each. Goods send out on consignment to be credited in general trading A/c will be:
(a) Rs. 2,20,000 (b) Rs. 2,40,000
(b) Rs. 40,000 (d) Rs. 2,00,000

69 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 44) On 1st July Krishnan of Chennai consigned 100 bales of cotton to Dheeraj of Hyderabad (Cost
Prize 7,500) at a proforma invoice price of 25% profit on sales, consignment accounted would be
credited for loading by ---
(a) Rs. 2,000 (b) Rs. 1,500
(b) Rs. 2,500 (d) Rs. 3,300
45) Goods costing Rs.1,80,000 sent out to consignee to show a profit of 20% on Invoice Price.
Invoice price of the goods will be-
(a) Rs. 2,16,000 (b) Rs. 2,25,000
(b) Rs. 2,10,000 (d) None of the above
46) Stock reserve account is credited, when ___
(a) Reserve is credited for abnormal loss
(b) Goods are invoiced above cost
(c) Some stock is Kept reserved with the consignor
(d) None of these
47) Bharti consigned to Bhawana 1500 Kg. of flour costing 4500.She spent Rs. 307 as forwarding
charges 5% of the consignment was lost in weighting and handling. Bhawana sold 1350 kg of flour
at Rs. 4 kg. Her selling expenses being Rs. 550 and commission at 12 ½ on sales valuation of
closing stock will be—
(a) Rs. 253 (b) Rs. 250
(b) Rs. 350 (d) Rs. 275
48) Consignment stock A/c is a ____
(a) Representative Personal A/c (b) Real A/c
(c) Nominal A/c (d) Personal A/c
49) In Consignment Accounting, consignee account is ________
(a) Real A/c (b) Personal A/c
(c) Nominal A/c (d) None of them
50) In Consignment Accounting, consignment is ________
(a) Real A/c (b) Personal A/c
(c) Nominal A/c (d) None of them

ANSWERS:

1) (a) 14) (b) 27) (b) 40) (b)

2) (a) 15) (c) 28) (a) 41) (b)
3) (c) 16) (a) 29) (d) 42) (a)
4) (c) 17) (b) 30) (c) 43) (a)
5) (b) 18) (a) 31) (a) 44) (c)
6) (a) 19) (a) 32) (a) 45) (b)
7) (b) 20) (c) 33) (d) 46) (b)
8) (b) 21) (a) 34) (b) 47) (a)
9) (b) 22) (a) 35) (a) 48) (b)
10) (b) 23) (b) 36) (a) 49) (b)
11) (b) 24) (b) 37) (c) 50) (c)
12) (a) 25) (b) 38) (b)
13) (d) 26) (a) 39) (c)
70 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 CHAPTER 8. FINAL ACCOUNTS (PROFIT ORIENTED
ORGANIZATION)
1) The purpose of preparing the final accounts is to ascertain:
(a) Profit or loss (b) Capital
(c) Profit or loss and financial position (d) Value of assets
2) What is the correct sequence of the following actions required for the preparation of Final
Accounts?
1. Preparation of Trail Balance
2. Balancing of Accounts
3. Preparation of Annual Financial Statements
4. Making Adjusting Entries
Select the correct answer from the codes given below –
(a) 4,2,1,3 (b) 2,4,3,1
(c) 2,1,4,3 (d) 4,2,3,1
3) In the case of a manufacturer, opening stock of finished goods is shown:
(a) On the debit side of manufacturing account
(b) On the credit side of trading account
(c) On the debit side of trading account
(d) On the assets side of the balance sheet
4) Interest on loan appearing in the Trial Balance should be:
(a) Debited to P & L a/c
(b) Shown as liability in Balance Sheet
(c) Added to the related liability in Balance Sheet
(d) None of these
5) Which of the following entries is correct in respect of reserve for discounts on accounts payable?
(a) Debit P&L a/c and credit reserve for discount on account payable a/c
(b) Debit P&L a/c and credit accounts payable a/c
(c) Debit accounts payable a/c and credit P&L a/c
(d) None of the above
6) Goods distributed as free sample would be:
(a) Credit to Trading A/c & Debit to Profit & loss A/c
(b) Debited to Trading A/c & credited to Profit & loss A/c
(c) Credited to Sales A/c & Debit to purchase A /c
(d) Credited to Trading A/c & Debit to Drawing A/c
7) Bad debts are written off by:
(a) Debiting the debtors account and crediting bad debts account
(b) Crediting the debtor’s account and debiting bad debts account
(c) Debiting the provision for bad debts account and crediting the debtor’s account
(d) Credited the provision for bad debts account and debiting the debtor’s account
8) A buyer returning goods on the ground of poor quality send a note along with the goods stating
that no payment would be made in respect goods returned, the return note is called:
(a) Debit Note (b) Credit note
(c) Refund note (d) Return note
9) Manufacturing account is prepared to-
(a) Ascertain the profit on the goods produced
(b) Ascertain the cost of the manufactured goods
(c) Show the sale proceeds from the goods produced during the year
(d) both (b) and (c)
10) Sales- 7,500 units, opening stock- 3,000 units and Closing stock 2,400 units. Calculated the
number of units produced:
(a) 6,900 (b) 4,800

71 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) 12,900 (d) 8,100
11) Sales Rs. 2,40,000, opening stock 200 units and closing stock 2,200 units, selling price Rs. 30 per
unit. Calculated the number of units produced:
(a) 2,42,000 (b) 5,600
(c) 10,000 (d) 10,400
12) Sales Rs. 15,00,000, Opening stock valued at Rs. 3,60,000 @ As 120 per unit, closing stock 20%
less than the opening stock, selling price Rs. 200 per units:
(a) 11,42,400 (b) 2,100
(c) 12,900 (d) 6,900
13) The opening stock of finished goods is Rs. 50,000; closing stock of finished goods is Rs. 1,00,000
and the cost goods manufactured is Rs. 2,00,000. What is cost of goods sold?
(a) Rs. 2,50,000 (b) Rs. 1,00,000
(c) Rs. 3,50,000 (d) Rs. 1,50,000
14) From the following details, calculate cost of goods sold:
Particulars Rs.
Increase in Raw material stock 15,000
Decrease in finished goods stock 35,000
Raw materials purchased 4,30,000
Direct labour 2,00,000
Factory overheads 3,00,000
Freight outward 45,000
The was no work-in-progress.
(a) Rs. 9,05,000 (b) Rs. 9,10,000
(c) Rs. 9,50,000 (d) Rs. 9,45,000
15) Compute opening stock from the following details: Purchase - Rs. 20,000; Closing stock - Rs. 13,000;
Cost of goods sold - Rs. 28,000.
(a) Rs. 61,000 (b) Rs. 21,000
(c) Rs. 35,000 (d) None of the above.
16) The adjustment to be made for interest on capital is –
(a) Debit profit and loss account and deduct interest from capital
(b) Credit profit and loss account and deduct interest from capital
(c) Debit profit and loss account and add interest to capital
(d) Credit profit and loss account and add interest from capital
17) Wages and salaries appearing in Trial Balance are shown –
(a) On the debit side of Profit and Loss Account
(b) On the debit side of Trading Account
(c) On the liabilities side of the Balance Sheet
18) Trade discount allowed on the sales, if appearing in the trial balance, is shown in the final
accounts:
(a) On the debit side of trading is account
(b) On the debit side of profit and loss account
(c) By way of deduction from the sales in the trading account
(d) Credit of P&LA/c
19) Goods given as charity should be credited to:
(a) Purchase A/c (b) Charity A/c
(c) Sales A/c (d) Drawings A/c
20) Purchases in Trading a/c includes:
(a) Only cash purchases (b) Only credit purchases
(c) Both cash and credit purchases (d) Purchases of Fixed Assets
21) Opening stock of the year is Rs. 20,000, Goods purchased during the year is Rs. 1,00,000, Carriage
Rs. 2,000 and Selling expenses Rs. 2,000. Sales during the year is Rs. 1,50,000 and closing stock is
Rs. 25,000. The gross profit will be:
(a) Rs. 53,000 (b) Rs. 55,000
(c) Rs. 80,000 (d) Rs. 51,000

72 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 22) Mr Prakash sells goods at 20% above cost. His sales were Rs. 10,20,000 during the year. However,
he sold damages goods for Rs. 20,000 costing Rs. 30,000. This sale is included in Rs. 10,20,000.
The amount of gross profit is:
(a) Rs. 1,56,667 (b) Rs. 2,50,000
(c) Rs. 2,40,000 (d) Rs. 2,00,000
23) Consider the following data pertaining to a company for the month of March 2023 -
Particulars Rs.
Opening Stock 22,000
Closing stock 25,000
Purchases less returns 1,10,000
Gross profit margin (on sales) 20%
The sales of the company during the month are:
(a) Rs. 1,41,250 (b) Rs. 1,35,000
(c) Rs. 1,33,750 (d) Rs. 1,28,400
24) Following figures have been taken from the books of trader
Purchases 60,000
Purchase returns 10,000
Sales 80,000
Sales Return 10,000
Carriage out 1,000
Office Rent 1,000
Amount of Gross Profit will be:
(a) Rs. 20,000 (b) Rs. 10,000
(c) Rs. 15,000 (d) None of these
25) The balances in the books of X, a sole proprietor was: Opening stock Rs. 17,000; Purchases Rs.
52,000; Wages Rs. 46,500; Fuel Rs. 15,000; Sale Rs. 1,45,000 and Closing stock on hand Rs. 25,000
whose net realizable value was Rs. 28,000. Find Gross Profit:
(a) Rs. 39,500 (b) Rs. 42,500
(c) Rs. 54,500 (d) Rs. 57,000
26) If sales revenues are Rs. 4,00,000; cost of goods sold is Rs. 3,10,000 and operating expenses are
Rs. 60,000, the gross profit is:
(a) Rs. 30,000 (b) Rs. 90,000
(c) Rs. 3,40,000 (d) Rs. 60,000
27) Which of the following would appear as an operating expense in the P&L A/c of trading firm:
(a) Freight Inward
(b) Freight Outward
(c) Sales returns and allowances
(d) Purchases returns and allowances
28) A club paid subscription fees of Rs. 1,400, out of which Rs. 200 is prepaid. In such case:
(a) P&L A/c is debited with Rs. 1,400
(b) P&L A/c is debited with Rs. 1,200
(c) Rs. 200 is shown as current asset
(d) Both (b) and (c) above
29) Which of the following is a Factory overhead?
(a) Salary of accountant (b) Advertisement expenses
(c) Storekeeper’s salary (d) All of these
30) Profit on sale of old furniture is shown on:
(a) Credit side of trading A/c (b) Credit side of P&L A/c
(c) Directly added to capital A/c (d) non-operating item ignored
31) Carriage on goods sold is shown in:
(a) Profit and Loss A/c (b) Trading A/c
(c) Balance Sheet (d) Suspense A/c
32) A Trial Balance contains he following information:
I. 15% Bank Loan Rs. 40,000
73 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 II. Interest Paid Rs. 4,500
Interest debited to P&L A/c will be?
(a) Rs. 6,000 (b) Rs. 3,000
(c) Rs. 4,500 (d) Rs. 1,500
33) If Sales are Rs. 14,900 Gross Profit Rs. 3,300 Net Loss Rs. 500. The operating expenses will be:
(a) Rs. 2,800 (b) Rs. 3,800
(c) Rs. 11,100 (d) Rs. 11,600
34) Trial Balance contains the following information: Bad debts Rs. 2,000, Provision for Doubtful debts
Rs. 1,500. It is desired to make a Provision for Doubtful Debts of Rs. 2,000 at the end of the year.
The amount to be debited to the P&L A/c is:
(a) Rs. 5,500 (b) Rs. 6,000
(c) Rs. 2,500 (d) Rs. 4,500
35) Rekha purchased a machinery for Rs. 50,000 on 1.4.2023. She paid electricity and salary amounting
Rs. 1,000 and Rs. 2,000 respectively. Telephone bill amounting Rs. 200 was outstanding on
31.3.2023. The amount of expenses for the year ended 31st March, 2023 will be:
(a) Rs. 53,200 (b) Rs. 3,000
(c) Rs. 53,000 (d) Rs. 3,200
36) Rent paid on 1 Oct’21 for the year 30 Sep’22 was Rs. 1,200 and rent paid on 1 Oct’22 for the year
to 30th Sep’23 was Rs, 1,600. Rent shown in the P & L for the year ended 31st Dec’22 would be –
(a) Rs. 1,200 (b) Rs. 1,600
(c) Rs. 1,300 (d) Rs. 1,500
37) Only personal and real accounts are shown in:
(a) Trial Balance (b) Balance Sheet
(c) Profit & Loss A/c (d) Trading A/c
38) If unexpired insurance appears in the Trial Balance, it should be:
(a) Debited to the trading account
(b) Credited on the Profit & Loss account
(c) Debited to the Profit & Loss account
(d) Shown on the assets side of the Balance Sheet
39) Advance tax A/c appearing in the Trial Balance is:
(a) Shown on the liability side of Balance Sheet
(b) Shown on the Assets side of the Balance Sheet
(c) Shown on debit side of Profit and Loss A/c
(d) Credited to Profit and Loss A/c
40) Sales include goods worth Rs. 36,000 sent on sales on approval basis @ 20% profit on cost. At the
close of the financial year the goods were still pending with the customer pending approval. The
Accounting adjustment would be:
(a) Debit sale A/c by Rs. 36,000, Credit Debtors A/c by Rs. 36,000, Credit trading A/c by Rs.
30,000, Debit stock A/c by Rs. 30,000
(b) Debit sale A/c by Rs. 30,000, Credit Debtors A/c by Rs. 30,000, Credit trading A/c by Rs.
30,000, Debit stock A/c by Rs. 30,000
(c) Credit sale A/c by Rs. 36,000, Debit Debtors A/c by Rs. 36,000, Debit trading A/c by Rs.
30,000, Credit stock A/c by Rs. 30,000
(d) Debit sale A/c by Rs. 6,000, Credit Debtors A/c by Rs. 36,000, Credit trading A/c by Rs.
30,000, Debit stock A/c by Rs. 36,000
41) Closing entry for transfer of Net profit Rs. 6,300 to capital A/c will be:
(a) Capital A/c Dr 6,300; To P&L A/c 6300
(b) P&L A/c Dr. 6300; To Capital A/c 6300
(c) Trading A/c Dr 6300; To P&L A/c 6300
(d) None of the three
42) If Closing Stock A/c already appears in the trial balance, the amount is shown only on the____.
(a) Trading A/c (b) Balance Sheet
(c) Capital A/c (d) Profit & Loss A/c
43) The withdrawal of goods from the business by the proprietor should be debited to-
(a) Drawings A/c (b) Purchase A/c

74 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Capital A/c (d) Profit & Loss A/c
44) In a sole trade, income tax is recorded as:
(a) Drawings (b) Liabilities
(c) Expenses (d) None of these
45) Mr. A had a beginning credit balance of Rs. 21,000 in his capital account. At the close of the
period his drawing account had a debit balance of Rs. 2,200. On the end-of-period balance sheet,
his capital balance is Rs. 32,000. If he contributed an additional Rs. 2,000 to the firm during the
period, the period's net income is:
(a) Rs. 12,400 (b) Rs. 11,200
(c) Rs. 9,000 (d) Rs. 10,800
46) A firm had a capital balance of Rs. 1,00,000 at the beginning of a year. At the end of the year,
the firm has total assets of Rs. 1,50,000 and total liabilities of Rs. 70,000. If the total withdrawals
during the period were Rs. 30,000, what was the amount of net profit/net loss for the year:
(a) Rs. 10,000 Profit (b) Rs. 20,000 Loss
(c) Rs. 50,000 Loss (d) Rs. 10,000 Loss
47) Capital on 1st January Rs. 65,000, Interest on drawing Rs. 5,000, Interest on capital Rs. 2,000,
Drawings Rs. 14,000, Profit for the year Rs. 15,000. His capital as on 31 December will be:
(a) Rs. 67,000 (b) Rs. 63,000
(c) Rs. 77,000 (d) Rs. 89,000
48) If, Capital at the end is RS. 70,000; Fresh Capital introduced RS. 50,000; Drawings RS. 80,000;
Loss RS. 1,00,000; then beginning Capital is-
(a) Rs. 1,20,000 (b) Rs. 1,80,000
(c) Rs. 2,00,000 (d) Rs. 3,00,000
49) The entry for creating a provision for bad debts is:
(a) Debit provision for bad debts a/c and credit debtor’s a/c
(b) Debit debtor’s a/c and credit provision for bad debts a/c
(c) Debit provision for bad debts a/c and credit profit and loss a/c
(d) Debit profit and loss a/c and credit provision for bad debts a/c
50) The provision for discount on debtors is calculated on the amount of debtors-
(a) Before deducting the provision for doubtful debts
(b) After deducting the provision for doubtful debts
(c) Before deducting the actual bad debts and provision for doubtful debts
51) On the balance sheet provision for bad debts is shown as:
(a) Deduction from debtors
(b) A deduction from capital
(c) An addition to current liabilities
(d) A deduction from fixed assets
52) If actual bad debts are less than the sum set aside then:
(a) There will be a credit balance on the provision for bad debts account
(b) There will be a debit balance on the provision for bad debts account
(c) There will be a credit balance on the bad debts account
(d) There will be debit balance on the bad debts account
53) Which one of the following statements is not correct?
(a) The provision for bad debts account is an estimated figure
(b) Bad debts could exceed the provision for bad debts
(c) Bad debts could be less than the provision for bad debts
(d) Provision for bad debt appears as a liability in balance sheet
54) A trial balance contains Debtors Rs. 15,000, Bad Debts Rs. 400, and provision for Doubtful Debts
Rs. 600. Further bad debts given in adjustments are Rs. 400. If a provision at 5% is made on
Debtors P&L A/c will be debited with:
(a) Rs. 950 (b) Rs. 800
(c) Rs. 930 (d) Rs. 1,130
55) The Books of Accounts of Z Ltd. shows that the balance of sundry debtors is Rs. 50,000 and reserve
for doubtful debts is Rs. 2,000. Like the management of the company realized that debts to the

75 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 extent of Rs. 1,000 will become bad and hence decided to create a reserve at 5% on debtors. The
amount debited to profit and loss account is:
(a) Rs. 2,500 (b) Rs. 2,350
(c) Rs. 2,450 (d) Rs. 1,450
56) On 1st April, 2005 M/s Omega Bros. had a provision for bad debts of Rs. 6,500. during 2005-2006
Rs. 4,200 proved irrecoverable and it was desired to maintain the provision for bad debts @ 4%
on debtors which stood at Rs. 195,000 before writing off bad debts. Amount of net provision
debited to profit and loss A/c will be:
(a) Rs. 7,800 (b) Rs. 7,500
(c) Rs. 5,332 (d) Rs. 5,000
57) The company maintains provision for bad debts at 5% and its outstanding debtors at the end of
the year was Rs. 3,00,000. During the year, opening balance of provision for bad debts was Rs.
5,000 and bad debt during the year was Rs. 10,000. The debit to profit and loss account for the
year ended in respect of provision for debtors will be:
(a) Rs. 50,000 (b) Rs. 25,000
(c) Rs. 20,000 (d) Rs. 15,000
58) Sundry debtors given in the Trial Balance are Rs. 20,000. Further bad debts amounted to Rs. 1,000
and it is desired to create a provision of 5% on debtors for doubtful debts and 2% for discount.
Sundry Debtors will appear in the Balance Sheet at a figure of:
(a) Rs. 18,620 (b) Rs. 18,600
(c) Rs. 17,689 (d) Rs. 17,670
59) C's Trial Balance contains the following information: Bad debts Rs. 8,000, Provision for Doubtful
debts Rs. 6,000, Sundry debtors Rs. 25,000. It is desired to create a provision for bad debts at
10% on sundry debtors at the end of the year. Sundry debtors (after provision) will appear in the
Balance Sheet at a figure of:
(a) Rs. 22,500 (b) Rs. 21,000
(c) Rs. 18,000 (d) Rs. 15,500
60) Sundry debtors of M/s Santosh amount to Rs. 25,000 and further bad debts Rs. 3,000. M/s Santosh
provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net debtors to be shown
in the balance sheet will be:
(a) Rs. 21,560 (b) Rs. 22,000
(c) Rs. 21,780 (d) Rs. 21,344
61) A Trial Balance provides you the following information: Bad debts Rs. 800, Provision for doubtful
debts Rs. 3,000. It is desired to maintain a Provision for doubtful debts at Rs. 1,000. The
accounting treatment of these adjustments is:
(a) Rs. 1,800 to be debited to the Profit and Loss account
(b) Rs. 1,200 to be credited to the Profit and Loss account
(c) Rs. 1,200 to be debited to the Profit and Loss account
(d) Rs. 4,800 to be debited to the Profit and Loss account
62) Y's trial balance contains the following information:
Bad debts Rs. 5,000
Provision bad debts Rs. 6,000
Sundry debtors Rs. 50,000
It is desired to create a provision for Bad debts at 10 per cent on Sundry debtors at the end of
the year. Sundry debtors will appear in the balance sheet at a figure of:
(a) Rs. 45,000 (b) Rs. 42,500
(c) Rs. 46,000 (d) Rs. 34,000
63) A's trial balance provides you the following information. Bad debts Rs. 1,000. It is desired to
maintain a provision for bad debts at Rs. 2,000. Amount debited to profit and loss a/c will be:
(a) Rs. 1,000 (b) Rs. 3,000
(c) Rs. 4,000 (d) Rs. 2,000
64) Discount allowed appearing in the Trial Balance is shown:
(a) On the debit side of Trading Account
(b) On the debit side of Profit and Loss A/c
(c) On the Assets side of the Balance sheet

76 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (d) None of the above
65) Goods costing Rs. 10,000 is supplied to Ram at an invoice price of 10% above cost and a trade
discount of 5%. The amount of sales is:
(a) Rs. 11,000 (b) Rs. 10,450
(c) Rs. 10,500 (d) None of the above
66) Goodwill is-
(a) Current asset (b) Tangible asset
(c) Intangible asset (d) Current Asset
67) Which of the following is fixed asset?
(a) Plant & Machinery (b) Stock
(c) Debtors (d) Cash
68) Which of the following is not a fixed asset?
(a) Building (b) Bank Balance
(c) Plant (d) Patents
69) Which of the following are/is a current asset?
(a) Sundry Debtors (b) Stock
(c) Prepaid Insurance (d) All of the above
70) A prepayment of insurance premium will appear in the Balance Sheet and in the Insurance account
respectively as:
(a) A liability and a debit balance (b) An asset and debit balance
(c) An asset and a credit balance (d) None of these
71) If 'Prepaid Wages' is given in Trial Balance, it is shown in:
(a) Debit of Trading A/c (b) Debit of P&L A/c
(c) Debit of Trading A/c & Assets side of Bal. Sheet (d) Assets side of Bal. Sheet
72) The adjustment to be made for prepaid expenses is:
(a) Add prepaid expenses to respective expense and show it as an asset
(b) Deduct prepaid expenses from respective expenses and show it as an asset
(c) Add prepaid expenses to respective expenses and show it as a liability
(d) Not showing it in the P&L account or Balance Sheet
73) The adjustment to be made for outstanding expenses is:
(a) Add outstanding expenses to respective expenses and show it as asset
(b) Deduct outstanding expenses from respective expenses and show it as liability
(c) Add outstanding expenses to respective expenses and show it as liability
(d) Deduct outstanding expenses from respective expenses and show it as liability
74) The company paid Rs. 5,000 as one of the instalments of an outstanding bill. What effect this
transaction have on the financial position of the company:
(a) No change in assets, liability decreased by Rs. 5,000
(b) Assets less by Rs. 5,000, liability decreased by Rs. 5,000
(c) Assets increase by Rs. 5,000, no change in liability
(d) Assets increase by Rs. 5,000, liability increase by Rs. 5,000
75) If the profit is 25% of the cost price, then it is-
(a) 25% of the sales price (b) 33.33% of the sales price
(c) 20% of the sales price (d) 50% of the sales price
76) If sales are Rs. 6,000 and the rate of gross profit on cost of goods sold is 25%, then the cost of
goods sold will be:
(a) Rs. 6,000 (b) Rs. 4,500
(c) Rs. 4,800 (d) None of the above
77) What would be the amount of sales when opening stock is Rs. 50,000; purchases Rs. 1,50,000;
wages Rs. 20,000; closing stock Rs. 40,000 and gross profit is 1/7th of sales?
(a) Rs. 2,00,000 (b) Rs. 1,86,669
(c) Rs. 1,80,000 (d) Rs. 2,10,000
78) Calculate Gross Profit if Rate of Gross Profit is 20% on Sale and the Cost of goods are Rs. 1,20,000.
(a) Rs. 24,000 (b) Rs. 30,000
(c) Rs. 20,000 (d) Rs. 28,000
79) The loss on the sale of old machinery is debited to:
77 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (a) Profit & Loss A/c (b) Machinery A/c
(c) Depreciation A/c (d) Trading A/c
80) Goods worth Rs. 36,000 were lost in fire. The goods were insured to the extent of Rs. 20,000. Loss
on account of fire would be accounted for as under:
(a) Debit trading A/c Rs. 36,000 and credit profit and loss A/c by Rs. 16,000
(b) Credit trading A/c Rs. 36,000 and debit Profit and Loss A/c Rs. 16,000, Insurance Co. debit
by Rs. 20,000
(c) Credit Profit and Loss A/c by Rs. 36,000 and debit Trading A/c by Rs. 16,000
(d) Credit Trading A/c Rs. 36,000 and debit Profit and Loss A/c Rs. 16,000
81) If the manager is entitled to a commission of 5% on profits before deducting the commission, he
will get a commission of Rs. ______ on a profit of र 8,400.
(a) Rs. 400 (b) Rs. 442.11
(c) Rs. 420 (d) None of these
Relate to the following assets and liabilities and answer Q82- Q86.
Particulars Rs. Particulars Rs.
Capital 3,200 Trade creditors 1,225
Reserve 1,300 Machinery 2,000
Stock 1,500 Debtors 750
Cash at bank 250 Fixtures/ fittings 400
Cash in hand 25 Motor 800
82) The balance sheet total is:
(a) Rs. 5,725 (b) Rs. 4,425
(c) Rs. 3,950 (d) Rs. 3,000
83) Current liabilities are:
(a) Rs. 3,000 (b) Rs. 1,225
(c) Rs. 1,925 (d) Rs. 725
84) Fixed assets total:
(a) Rs. 3,950 (b) Rs. 3,200
(c) Rs. 1,150 (d) Rs. 400
85) Current assets are:
(a) Rs. 3,000 (b) Rs. 2,525
(c) Rs. 1,775 (d) Rs. 1,225
86) The net assets figure is:
(a) Rs. 5,725 (b) Rs. 4,500
(c) Rs. 3,000 (d) Rs. 1,300
87) Sale of the scarp of raw materials appearing in the trial balance is shown on the credit side of:
(a) Trading A/c (b) Manufacturing A/c
(c) Profit & Loss A/c (d) None of these
88) Opening stock- Rs. 22,000; Closing stock-Rs. 25,000; Purchase less returns- Rs. 1,10,000, Gross
profit margin (on sales)-20%. The sales of the company will be:
(a) Rs. 1,41,250 (b) Rs. 1,35,600
(c) Rs. 1,33,750 (d) Rs. 1,28,400
89) Capital introduced in beginning by ram Rs. 40,000. Further capital introduced during the year
Rs. 1,000, drawings Rs. 200 per month and closing capital is Rs. 53,600. The amount of profit or
loss for the year is:
(a) Rs. 15,000 Profit (b) Rs. 5,000 Loss
(c) Rs. 20,000 Profit (d) Can’t Say
90) Provisions are:
(a) Appropriation of profits (b) Charge on profits
(c) Both (d) None
91) In books of manufacturing concern, opening stock consists of:
(a) Raw materials (b) Work in progress
(c) Finished goods (d) All of the above

78 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 92) Opening debtors=3,000; Credit sales=80,000; Cash received from debtors=60,000. Closing
debtors?
(a) Rs. 30,000 (b) Rs. 32,000
(c) Rs. 23,000 (d) Rs. 20,000
93) Cost of goods sold = Rs. 15,00,000. Gross profit =20% on sales. Calculate the amount of sales:
(a) Rs. 18,25,000 (b) Rs. 18,15,000
(c) Rs. 18,50,000 (d) Rs. 18,75,000
Based on the information, answer the questions 94-97 given below:
Balance sheet as on December 31st, 2022
Particulars Rs. Rs. Particulars Rs.
Capital A/c 10,000 Shop fittings 500
Balance profit 400 Stock 2,500
10,400 Training debtors 650
Less: Drawings 200 10,200 Cash in bank 7,550
Trade creditors 1,000
11,200 11,200
94) Current liabilities total:
(a) Rs. 11,200 (b) Rs. 10,400
(c) Rs. 10,200 (d) Rs. 1,000
95) Current assets total:
(a) Rs. 11,200 (b) Rs. 10,700
(c) Rs. 10,550 (d) Rs. 3,000
96) The book value of fixed assets is:
(a) Rs. 11,200 (b) Rs. 3,000
(c) Rs. 2,500 (d) Rs. 500
97) Market value of fixed asset is:
(a) Rs. 5,000 (b) Rs. 11,200
(c) Rs. 3,000 (d) None of above
98) Person started a business with capital of Rs. 50,000 and the takes loan from his relative Rs. 5,000
profits for the year are Rs. 10,000 and drawings Rs. 9,000. What will be the amount of closing
capital?
(a) Rs. 60,000 (b) Rs. 51,000
(c) Rs. 56,000 (d) Rs. 46,000
99) Closing stock of previous year is overvalued by Rs. 50,000. Due to this-
(a) Previous year’s profit is overstated and current year’s profit is understated.
(b) Previous year’s profit is understated and current year’s profit is overstated.
(c) Previous year’s profit is overstated and current year’s profit is overstated.
(d) Previous year’s profit is understated and current year’s profit is and current year’s profit is
understated.
100) Trading account is a:
(a) Personal A/c (b) Real A/c
(c) Nominal A/c (d) None of the above

ANSWERS:

1) (c) 9) (b) 17) (b) 25) (a)

2) (c) 10) (a) 18) (c) 26) (b)
3) (c) 11) (c) 19) (a) 27) (b)
4) (a) 12) (d) 20) (c) 28) (d)
5) (d) 13) (d) 21) (a) 29) (c)
6) (a) 14) (c) 22) (a) 30) (b)
7) (b) 15) (b) 23) (c) 31) (a)
8) (a) 16) (c) 24) (a) 32) (a)

79 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 33) (b) 50) (b) 67) (a) 84) (b)
34) (c) 51) (a) 68) (b) 85) (b)
35) (d) 52) (a) 69) (d) 86) (b)
36) (c) 53) (d) 70) (b) 87) (b)
37) (b) 54) (c) 71) (d) 88) (c)
38) (d) 55) (d) 72) (b) 89) (a)
39) (b) 56) (c) 73) (c) 90) (b)
40) (a) 57) (d) 74) (a) 91) (d)
41) (b) 58) (c) 75) (c) 92) (c)
42) (b) 59) (a) 76) (c) 93) (d)
43) (a) 60) (d) 77) (d) 94) (d)
44) (a) 61) (b) 78) (b) 95) (b)
45) (b) 62) (a) 79) (a) 96) (d)
46) (a) 63) (b) 80) (b) 97) (d)
47) (b) 64) (b) 81) (c) 98) (b)
48) (c) 65) (b) 82) (a) 99) (a)
49) (d) 66) (c) 83) (b) 100) (c)

80 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 CHAPTER 9. FINAL ACCOUNTS (NPO)
1) The Receipt and Payment account of a Non- Profit Organisation is a:
(a) Nominal Account (b) Real Account
(c) Income Statement Account (d) Financial Statements
2) In regard to Rent expenses paid in advance of a non- profit organisation which of the following
classification is correct:
(a) Expense (b) Liability
(c) Equity (d) Assets
3) Income & Expenditure Account is based on:
(a) Cash Accounting (b) Accrual Accounting
(c) Government Accounting (d) Management Accounting
4) Which of the following is regarded as apt to show purchase of fixed asset for a non-profit
organisation:
(a) Income & Expenditure Account (b) Profit & Loss Account
(c) Balance Sheet (d) None of the above
5) Which of the following is to be recorded in an income and Expenditure Account:
(a) Purchase of a fixed Asset
(b) Capital Expenditure incurred on a fixed asset
(c) Profit on the sale of a fixed asset
(d) Sale of a fixed asset
6) XYZ club has a bar that maintains a separate trading account for its trading activities. Which of
the following is the treatment of profit or loss on bar trading activities?
(a) Profit or loss is directly shown in the Balance Sheet
(b) Profit or loss is to be presented in income and expenditure account
(c) Profit and loss are credited in income statement
(d) Profit or loss is added to accumulated fund
7) Which of the following is the accounting equation for a non-profit organisation?
(a) Asset= Capital + Liabilities
(b) Capital+ Liabilities= Assets
(c) Accumulated Fund+ Liabilities= Assets
(d) Liabilities= Assets + Accumulated Fund
8) Subscription received but not yet earned is considered as:
(a) Asset (b) Liability
(c) Income (d) Expenditure
9) On what basis receipts and payments account is made:
(a) Cash basis (b) Accrual basis
(c) Both Cash & Accrual basis (d) None of the above
10) Surplus or profits of Non-Profit Organisations are ______
(a) It is not distributed among members
(b) Maybe or may not be distributed among members
(c) It is debited to the general fund
(d) Distributed among members.
11) If debit side of receipt and payment account exceeds the credit side, it represents:
(a) Deficit Balance (b) Surplus Balance
(c) Cash at Bank (d) Bank Overdraft

81 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 12) Deficit balance can be shown in balance Sheet as:
(a) Liability (b) Assets
(c) Owner’s equity (d) None of the above
13) Receipt and Payment account includes:
(a) Revenue items (b) Cash items
(c) Revenue & Cash items (d) None of the above
14) Which should be considered as capital receipt of a club:
(a) Donation (b) Sale of newspaper
(c) Sale of bar items (d) Sale of furniture
15) At the beginning of an accounting year a club has assets of Rs. 19,000 and liabilities of Rs.5,000.
Rs. 1,800 is the debit balance of the income & expenditures account. The opening capital fund is:
(a) Rs. 18,000 (b) Rs.11,200
(c) Rs.15,800 (d) Rs. 24,800
16) The opening balance of the Prize fund of a sports club was Rs.6,400. Further donations towards
this fund received during the accounting year amounted to Rs.4,300. During the year, Rs. 3,500
was spent on prizes and Rs. 400 was received as interest on investment of the Prize Fund. The
closing balance of the Prize fund is:
(a) Rs. 1,900 (b) Rs.10,200
(c) Rs.10,600 (d) Rs.7,600
17) Salaries payable for the current year amount to Rs. 8,500 at the end of the year. Outstanding
salaries amounted to Rs. 300. Salaries paid in advance last year pertaining to the current year
amounted to Rs.500. Prepaid salaries for the next year amount to Rs.250. Total amount paid for
salaries during the year is:
(a) Rs. 7,550 (b) Rs.7,500
(c) Rs.7,950 (d) Rs.6,500
18) Second hand furniture worth Rs. 6,000 was purchased. It was repaired for Rs.600 and installed
by workmen to whom Rs. 200 was paid as wages. The furniture should be capitalised for:
(a) Rs. 6,200 (b) Rs. 6,800
(c) Rs. 6,600 (d) Rs.6,000
19) Fixed assets fund is:
(a) Endowment Fund (b) Current restricted Fund
(c) Current unrestricted fund (d) Meant for accounting of asses and depreciation
20) Donations received for special purpose should be:
(a) Credited to a separate fund account and shown in the Balance Sheet
(b) Treated as revenue
(c) Treated as revenue unless the amount is large
(d) Not recorded at all
21) Amount received from the sale of old furniture by a club is treated as:
(a) Revenue Receipt (b) Capital Receipt
(c) Asset (d) Liability
22) Receipt & Payment A/c shows:
(a) A debit balance (b) A credit balance
(c) Surplus or deficit (d) Capital Fund
23) Subscription received in advance during the accounting year is:
(a) An income (b) An expense
(c) Asset (d) Liability

82 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 24) If Rs. 1,500 was outstanding at the beginning of the year towards subscription and Rs. 10,000 is
received during the year, with Rs. 2,500 still outstanding at the end of the year the amount to
be taken to receipts and payments account is:
(a) Rs. 11,000 (b) Rs. 8,500
(c) Rs. 10,000 (d) None of the above
25) The receipts and payments account shows the following details:
Subscription Arrears Rs. 500 Current Rs. 10,500 Advance Rs. 800.
There are 1,200 members each paying an annual subscription of Rs. 10. The amount to be credited
to income and expenditure account will be:
(a) Rs. 11,800 (b) Rs. 11,300
(c) Rs. 12,000 (d) None of the above
26) The opening balance of Prize fund is Rs. 32,800. During the year, donations received towards the
fund amounted Rs. 15,400; amount spent on prizes was Rs. 12,300 and interest received on prize
fund investment was Rs. 4,000. The closing balance of prize fund will be:
(a) Rs. 56,500 (b) Rs. 64,500
(c) Rs. 39,900 (d) Rs. 31,900
27) Sale of grass by a sports club is to be treated as sale of an asset.
(a) True (b) False
28) Subscriptions outstanding for the current year are disclosed under the Fixed assets side of the
Balance sheet.
(a) True (b) False
29) Receipts and payments account gives the details about the expenses outstanding for the year.
(a) True (b) False
30) Tournament expenses incurred are more than the Tournament fund, then the excess to be shown
as an asset in the closing Balance sheet.
(a) True (b) False
31) Tournament fund, building fund, library fund is based on the fund-based accounting.
(a) True (b) False
32) Subscription fees refers to the one-time fees paid by the members to get admission for the
benefits of the club.
(a) True (b) False
33) Token payment made to a person, who voluntarily undertakes a service which would normally be
paid in case of profitable organization is termed as Honorarium.
(a) True (b) False
34) An insurance company is an example of non-profit organization.
(a) True (b) False
35) Both the income and expenditure of the current and the previous year are recorded in the Income
and Expenditure account.
(a) True (b) False
36) Amount received as donation by a Non-profit organisation under the will of a deceased person is
termed as legacy.
(a) True (b) False
37) Where a Non-profit organisation has a separate trading activity, the profit/loss from the trading
account shall be transferred to Income and Expenditure Account at the time of consolidation.
(a) True (b) False
38) Not for profit concerns concentrate their efforts to maximize the profit earning avenues.
(a) True (b) False

83 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 39) All the receipts are of revenue nature in case of Non-profit organisation.
(a) True (b) False
40) There is opening balance of Income and expenditure account.
(a) True (b) False
41) Income & Expenditure A/c shows subscriptions at Rs. 10,000. Subscriptions accrued at the
beginning of the year and at the end were Rs. 1,000 and Rs. 1,500 respectively. The figure of
subscriptions appearing in the receipts and payment A/c will be:
(a) Rs. 9,500 (b) Rs. 11,000
(c) Rs. 10,000 (d) None of the above
42) If income is Rs. 16,000 and deficit debited to Capital fund is Rs. 4,300 then expenditure is:
(a) Rs. 16,000 (b) Rs. 4,300
(c) Rs. 20,300 (d) Rs. 12,300
43) Subscription received in cash during the year amounted to Rs. 5,00,000. Subscription outstanding
at the end of previous year was Rs. 20,000 and at the end of current year was Rs. 25,000.
Subscription received in advance for next year was Rs. 8,000 and received in advance during the
previous year was Rs. 7,000. The amount credited to Income & Expenditure A/c will be:
(a) Rs. 5,04,000 (b) Rs. 5,06,000
(c) Rs. 4,96,000 (d) Rs. 4,94,000
44) Salaries payable for current year amount to Rs. 8,500 at the end of the year. Outstanding salaries
amounted to Rs. 300. Salaries paid in advance pertaining to current year amounted to Rs. 500.
Prepaid salaries for next year amounted to Rs. 250. Total amount paid for salaries during the year
is:
(a) Rs. 7,550 (b) Rs. 7,500
(c) Rs. 7,950 (d) Rs. 6,500
45) Salaries paid during the year ended 31 March 2020 is Rs. 36,000. Salaries paid in advance at the
end of previous year was Rs. 54,000. The amount of salaries to be debited to Income & Expenditure
A/c for the year ended 31 March 2020 will be:
(a) Rs. 54,000 (b) Rs. 36,000
(c) Rs. 90,000 (d) Rs. 18,000
46) The goodwill or reputation earned by NPO depends on the basis of_____.
(a) Investments Made (b) Subscriptions Received
(c) Contribution to welfare of society (d) Donations received
47) Instead of maintaining capital A/c, a non-profit organisation prepares _____.
(a) Capital fund or general fund (b) General reserve
(c) Member’s capital A/c (d) Both (a) and (b)
48) A not-profit-organization has all the following characteristics, except that it will
(a) Operate for purposes other than to provide goods/services at a profit.
(b) Has a positive fund balance
(c) Not possesses ownership interests like a corporation
(d) Receives significant contributions from providers who do not except returns
49) Which Of the Following is Incorrect?
(a) Receipt and Payment Account is the summary of cash and bank transactions
(b) Receipts and payment account does not show that any non-cash item like depreciation
(c) Sale of Scrap is a Capital Expenditure and to be recorded In Income and expenditure account
(d) Capital fund is calculated as Assets-Liabilities
50) In the Income and Expenditure, A/c, all revenue expenses are entered on the_____.
(a) Left hand side (b) Liability side

84 | U N I Q U E A C A D E M Y F O R C O M M E R C E
 (c) Right hand side (d) Asset side

ANSWERS:

1) (b) 14) (d) 27) (b) 40) (b)

2) (d) 15) (c) 28) (b) 41) (a)
3) (b) 16) (d) 29) (b) 42) (c)
4) (c) 17) (c) 30) (b) 43) (a)
5) (c) 18) (b) 31) (a) 44) (c)
6) (b) 19) (d) 32) (b) 45) (c)
7) (c) 20) (a) 33) (a) 46) (c)
8) (b) 21) (b) 34) (b) 47) (a)
9) (a) 22) (a) 35) (b) 48) (b)
10) (a) 23) (d) 36) (a) 49) (c)
11) (c) 24) (a) 37) (a) 50) (a)
12) (b) 25) (c) 38) (b)
13) (c) 26) (c) 39) (b)

85 | U N I Q U E A C A D E M Y F O R C O M M E R C E