CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Final Accounts Quiz 6 - MCQExams.com

Inventory is valued at _____________.
  • Cost price
  • Replacement price
  • Both (a) and (b) whichever is lower
  • Both (a) or (b) whichever is higher
Which one of the following statements are correct?
(i) Inventory includes raw materials, finished goods and goods in process
(ii) Inventory is a part of the working capital
(iii) Inventory includes goods likely to be purchased in the coming months
Select the correct answer using the codes given below.
  • I, II and III
  • II and III
  • I and III
  • I and II
Which one of the following methods of inventory valuation matches current cost with current revenues?
  • Last in first out (LIFO)
  • Fist in first out (FIFO)
  • Simple average
  • Weighted average
All revenue expenditure and receipts are taken to ____________.
  • Trading and Profit and Loss Account
  • Balance sheet
  • Trial balance
  • None of these
Gross profit or gross loss is the difference between ___________.
  • sales and cost of goods sold 
  • the total receipts and total payments
  • the total income and total expenses
  • the assets and liabilities
Accumulated losses are ________________.
  • Provision for depreciation
  • P & L a/c (Credit balance)
  • P & L a/c (Debit balance)
  • Investment fluctuation fund
Provision for discount on debtors shall be made on ____________________.
  • Book debts before incurring bad debt and before providing for bad debt
  • Book debts after incurring bad debt and after providing for bad debt
  • Book debts before incurring bad debt and after providing for bad debt
  • Book debts after incurring bad debt and before providing for bad debt
The success of perpetual inventory system depends upon ______________.
  • Placing order for materials at regular intervals
  • Exercising control over the issue of materials
  • Recording the receipt and issue of materials immediately after each transaction
  • Recording the receipt of materials by storekeeper in the 'Bin Cards'
The manager of a firm is entitled to a commission of  $$10$$% on the net profit after his commission. If the profit of the firm before charging commission is  $$ Rs. 3,30,000$$, the amount of manager's commission will be_________. 
  • $$Rs. 33,000$$
  • $$Rs. 30,000$$
  • $$Rs. 27,000$$
  • $$Rs. 36,000$$
Gross Profit = Rs.1,95,000 and Non operating expenses = Rs.87,000Rs.1,95,000. The amount to be debited to Profit and loss account would be _______________.
  • $$Rs. 2,03,000$$
  • $$Rs. 1,95,000$$
  • $$Rs. 1,08,000$$
  • $$Rs. 95,000$$
Which of the following statements is correct?
  • S. Chand and Co. Ltd. P and L A/c for the year ended $$31^{st} March, 2001$$
  • S. Chand and Co. Ltd. P and L A/c for the year ended $$31^{st} March,$$
  • S. Chand and Co. Ltd. P and L A/c as on $$31^{st} March, 2001$$
  • S. Chand and Co. Ltd. P and L A/c for the current year $$(2000-2001)$$
Which of the following equation is correct?
  • Gross Profit $$=$$ Net Sales $$-$$ Cost of the Goods Sold
  • Gross Profit $$=$$ Sales $$+$$ Closing Stock $$-$$ Opening Stock $$-$$ Purchases $$-$$ Wages
  • Cost of goods Sold $$+$$ Gross Profit $$=$$ Sales
  • All of the above
If the rate of gross profit is $$20$$% on cost of goods sold and the sales are $$Rs. 1,50,000$$ then the total gross profit would be_________. 
  • $$Rs. 25,000$$
  • $$Rs. 30,000$$
  • $$Rs. 37,500$$
  • None of these
Goods withdrawn by the proprietor for his personal use are_________. 
  • shown as a deduction from the purchases
  • shown as a deduction from the sales
  • treated as sales at cost price
  • added to the purchases
From the following figures ascertain the gross profit.
ParticularsRs.
Opening Stock$$2,50,000$$
Goods Purchase$$13,00,000$$
Freight$$50,000$$
Closing Stock$$1,50,000$$
Sales$$19,00,000$$
Salary$$90,000$$
  • Rs. $$3,60,000$$
  • Rs. $$4,50,000$$
  • Rs. $$5,00,000$$
  • Rs. $$5,90,000$$
Carriage outwards appears in __________, whereas carriage inwards appears in.
  • Trading A/c, Profit & Loss A/c
  • Profit & Loss A/c, Trading A/c
  • Trading A/c, Balance Sheet
  • Balance Sheet, Profit & Loss A/c
Gross profit or gross loss revealed by trading account is transferred to.
  • Balance Sheet
  • Profit & Loss Account
  • Manufacturing Account
  • Profit & Loss Appropriation Account
Choose the true statement.
  • Income and gain A/c shows increase on credit side
  • Expenses and losses A/c shows reduction in balance on debit side
  • Assets A/c can have credit balance also
  • Debtors are the owing of the business
Which of the following is not classified as inventory in the financial statements?
  • Finished goods
  • Work-in-progress
  • Stored and spares
  • Advance payments made to suppliers for raw materials
Which of the following principle/s must be kept in mind while preparing Trading and Profit & Loss Account?
  • Profit or loss is determined by matching revenues and expenses according to the matching principle
  • Only revenue expenses together with losses should be taken into account
  • Only revenue receipts i.e., sale proceeds and other incomes should be entered
  • All of the above
Balance of manufacturing account i.e., cost of production is transferred to.
  • Profit & Loss Account
  • Manufacturing Account
  • Trading Account
  • Purchase Account
Generally ___________ appears in trading account and _________ appears in Profit & Loss Account.
  • Direct cost, Indirect cost
  • Indirect cost, direct cost
  • Indirect cost, fixed cost
  • Fixed cost, Direct cost
Which of these Accounts does not appear in Trading A/c?
  • Sales A/c
  • Purchase A/c
  • Wages A/c
  • Depreciation A/c
While preparing final account, to record commissions payable to manager- which of the following adjustment entry will be passed?
Profit & Loss A/c
To Commission Payable A/c
Dr.
Commission Payable A/c
To Profit & Loss A/c
Dr.
Manager A/c
To Commission Payable A/c
Dr.
Profit & Loss A/c
To Manager A/c
Dr.
  • A
  • B
  • C
  • D
From the following information calculate net profit:
Rs.
Opening stock$$15,00,000$$
Direct expenses$$3,00,000$$
Selling & distribution expenses$$2,00,000$$
Administrative expenses$$1,00,000$$
Financial expenses$$50,000$$
Sales$$24,00,000$$
Gross profit ratio on sales$$25\%$$
  • $$2,50,000$$
  • $$3,50,000$$
  • $$2,00,000$$
  • $$1,50,000$$
The balance in books of X, a sole proprietor were: Opening Stock Rs. $$17,000$$, Purchase Rs. $$52,000$$, Wages Rs. $$46,500$$, Freight Rs. $$15,000$$. Sales Rs. $$145,000$$ and Closing Stock Rs. $$25,000$$ whose Net Realizable value was Rs. $$28,000$$. Gross Profit$$=$$?
  • Rs. $$39,500$$
  • Rs. $$42,500$$
  • Rs. $$54,500$$
  • Rs. $$57,000$$
From the following information calculate Gross profit, Sales & Purchases.
ParticularsRs.
Opening stock$$75,000$$
Closing stock$$87,500$$
Cost of goods sold$$1,50,000$$
Gross profit ratio on sales$$25\%$$
  • Gross profit $$= 37,500$$, Sales $$=1,87,500$$, Purchases$$=1,12,500$$
  • Gross profit $$= 37,500$$, Sales $$=2,00,000$$, Purchases $$=1,62,500$$
  • Gross profit $$=50,000$$, Sales $$=2,00,000$$, Purchases $$=1,62,500$$
  • Gross profit $$=50,000$$, Sales $$=2,00,000$$, Purchases $$=$$ Rs. $$1,12,500$$
If sales are Rs. $$40,000$$; Cost of goods sold is Rs. $$31,000$$ and operating expenses are Rs. $$6,000$$, the gross profit is?
  • Rs. $$3,000$$
  • Rs. $$9,000$$
  • Rs. $$3,400$$
  • Rs. $$6,000$$
Cost of goods soldRs. $$2,00,000$$
Gross profit on cost$$25\%$$
SalaryRs. $$15,000$$
RentRs. $$7,000$$
Bad debtsRs. $$1,500$$
DrawingsRs. $$2,000$$
CreditorsRs. $$2,500$$
Net profit?
  • Rs. $$22,000$$
  • Rs. $$24,500$$
  • Rs. $$26,500$$
  • Rs. $$16,500$$
From the following abstract of trial balance, estimate the profit and loss for the year ended $$31-3-2015$$:
Debit balanceRs.
Assets excluding closing stock$$7,500$$
Expenses$$6,500$$
Prepaid Expenses$$2,000$$
Interest$$500$$

$$16,500$$
Credit balanceRs.
Capital & Reserve$$9,000$$
Liabilities$$1,000$$
Revenue$$6,500$$
$$16,500$$
Closing stock was Rs. $$600$$.
  • Rs. $$100$$
  • Rs. $$550$$
  • Rs. $$1,500$$
  • Rs. $$250$$
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Practice Class 10 Elements Of Book Keeping And Accountancy Quiz Questions and Answers