CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Final Accounts Quiz 5 - MCQExams.com

The adjustment to be made for interest on drawings is ________________.
  • Debit profit and loss account and add interest to drawings
  • Credit profit and loss account and add interest to drawings
  • Debit profit and loss account and deduct interest from drawings
  • Credit profit and loss account and deduct interest from drawings
If at the beginning and ending of the period, goods inventories are $$Rs. 400$$ and $$Rs. 700$$ respectively and cost of goods sold is $$Rs 3400$$. Then net purchases are __________.
  • $$Rs. 3700$$
  • $$Rs. 3400$$
  • $$Rs. 3100$$
  • $$Rs.3000$$
Which of the following statements is not true ?
  • Joint venture is a going concern.
  • Joint venture is terminable in nature.
  • Joint venture does not follow accrual basis of accounting.
  • The co-venturer shares the profit in agreed ratio.
A invoiced out certain goods so as to show a profit of 20% on invoice price. 1/10th of the goods were lost in transit. The cost price of goods lost is Rs 40,The invoice value of goods sent out will be ___________.
  • Rs 5,00,000
  • Rs 4,00,000
  • Rs 4,50,000
  • Rs 4,80,000
In a joint venture, A contributes Rs. 8,000 and B contributes Rs. 10,Goods are purchased for Rs. 11,Expenses amount to Rs. 1,Sales amount to Rs. 14,000, the remaining goods were taken by B at an agreed price of Rs.A and B share profits and losses in the ratio of 1:2 respectively. As a final settlement, how much A will receive ?
  • Rs. 8,800
  • Rs. 9,000
  • Rs. 8,000
  • Rs. 13,800
A and B entered into a joint Venture to purchase and sell a new item. They agreed to share the profits 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 Rs. 20,What will be the amount  remitted by B to A as final settlement ?
  • Rs. 1,55,000
  • Rs. 1,50,000
  • Rs. 1,15,000
  • Rs. 80,000
Goods sold by other co-venturer is debited to which account ________________.
  • Joint venture A/c
  • Other co-venturer's personal A/c
  • Joint bank A/c
  • None of these
Under sales on return or approval basis, when transactions are few and the seller at the end of the accounting year reverses the sale entry, then the accounting treatment for the goods returned by the customers on a subsequent date will be ______________.
  • No entry for return of goods
  • Entry for return of goods is passed
  • Only the stock account will be adjusted
  • None of these
Ram sends goods on approval basis as follows :
Date 
January		Customer's nameSale price of Goods sentGoods acceptedGoods returned
RsRsRs
10A3,6003,000600
12B2,0002,000-
15C2,680-2,680
25D2,2602,000260
The stock of goods sent on approval on 31st January will be:
  • Rs 500
  • Nil
  • Rs 260
  • None of these
A purchased goods costing 45,B sold goods costing Rs. 40,000 at Rs. 50,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 ________.
  • Rs. 6,250
  • Rs. 5,000
  • Rs. 6,000
  • Rs. 10,000
 X a co-venturer returns goods to other co- venturer Y. In whose books the transaction would be recorded under memorandum joint venture method?
  • Y
  • X
  • X and Y
  • None of these
A, for joint venture with B, purchased goods costing 2,00,000, B sold 80% of' the goods for Rs. 2,50,Balance of goods were taken over by B at cost less 25%. Find out profit on venture ?
  • Rs. 80,000
  • Rs. 90,000
  • Rs. 50,000
  • None of these
Profit and loss account is prepared for a period of one year as per ____________.
  • Consistency concept
  • Conservation concept
  • Accounting period concept
  • Cost concept
Under sales on return or approval basis, the ownership of goods is passed only ___________________.
  • When the purchaser gives his approval
  • If the goods are not returned within specified period
  • Both (a) and (b)
  • None of the above
Which of the following is not a condition for issue of shares at a discount?
  • The Memorandum of Association must authorise the company for issue of shares at a discount
  • The issue must be authorised by passing an ordinary resolution in the General Meeting and must be confirmed by the Company Law Board
  • The shares should be a class of shares already issued
  • At least one year must have elapsed since the company was entitled to commence business
The total cost of goods available for sale with a company during the current year is Rs. $$12,00,000$$ and the total sales during the period are Rs. $$13,00,000$$. If the gross profit margin of the company is $$33$$ $$1/3\%$$ on cost, the closing inventory during the current year is __________?
  • Rs. $$4,00,000$$
  • Rs. $$3,00,000$$
  • Rs. $$2,25,000$$
  • Rs. $$2,60,000$$
Goods given as charity should be credited to _______________.
  • Purchases account
  • Charity account
  • Sales account
  • Trading A/c
While making an adjusting entry in respect of closing stock, we debit ______________.
  • Closing stock
  • Trading account
  • Purchases account
  • Sales account
Linux Ltd. maintains the inventory records under perpetual system of inventory. Consider the following data pertaining to inventory of Linux Ltd. held for the month of March 2005:
DateParticularsQuantityCost per unit
Mar. 1Opening inventory$$15$$$$400$$
Mar. 4Purchases$$20$$$$450$$
Mar. 6Purchases$$10$$$$460$$
If the company sold $$32$$ units on March 24, 2005, closing inventory under FIFO method is:
  • Rs. $$5,200$$
  • Rs. $$5,681$$
  • Rs. $$5,800$$
  • Rs. $$5,950$$
Net realizable value means _______________.
  • Sales less sales returns
  • Sales less cost incurred necessarily to make the sale
  • Sales less gross profit margin
  • Sales less cost of purchase
If the manager is entitled to a commission of 5% on profits before deducting this commission, he will get a commission of Rs. ________on a profit of Rs. 8,400.
  • 400
  • 442.11
  • 420
  • None of these
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 ____________.
  • Rs. $$30,000$$
  • Rs. $$90,000$$
  • Rs. $$3,40,000$$
  • Rs. $$60,000$$
A Trial Balance contains the following information:
I. 15% Bank Loan    Rs. 40,000
II. Interest Paid        Rs. 4,500
Interest debited to P & L A/c will be:
  • Rs. 6,000
  • Rs. 3,000
  • Rs. 4,500
  • Rs. 1,500
In the Trial Balance, Debtors are Rs. 2,400, Bad Debts Rs. 221, Reserve for Doubtful Debts Rs.For creating a Reserve for Doubtful Debts @10% on debtors, the P & L A/c will be debited by __________.
  • 137
  • 240
  • 343
  • 9
Cost of inventories includes ___________________.
  • Direct Material $$+$$ Direct Expenses
  • Direct Labour $$+$$ Direct Expenses
  • All cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition
  • Direct material only
Apprentice premium is the amount ________________.
  • Given to the employees in appreciation of their services
  • Charged from the person to whom training is imparted by the business
  • Paid to the insurance company to obtain the insurance cover
  • All of the above
Inventories are assets __________________.
  • Held for sale in the ordinary course of business
  • In the production process for such sale
  • In the form of material or supplied to be consumed in the production process or in the rendering of service
  • All of the above
Net realizable value is ____________________.
  • The estimated selling price less the estimated costs of the sale
  • Total sales
  • Sales minus sales return
  • Sales minus purchases
In which of the following methods, inventory is valued at the latest prices prevailing in the market?
  • LIFO
  • FIFO
  • Both (a) and (b)
  • None of these
FIFO is advisable in case of _____________.
  • Rising prices
  • Falling prices
  • Constant prices
  • Fluctuating prices
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Practice Class 10 Elements Of Book Keeping And Accountancy Quiz Questions and Answers