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 31stMarch,2001
  • S. Chand and Co. Ltd. P and L A/c for the year ended 31stMarch,
  • S. Chand and Co. Ltd. P and L A/c as on 31stMarch,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 Stock2,50,000
Goods Purchase13,00,000
Freight50,000
Closing Stock1,50,000
Sales19,00,000
Salary90,000
  • 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 stock15,00,000
Direct expenses3,00,000
Selling & distribution expenses2,00,000
Administrative expenses1,00,000
Financial expenses50,000
Sales24,00,000
Gross profit ratio on sales25%
  • 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 stock75,000
Closing stock87,500
Cost of goods sold1,50,000
Gross profit ratio on sales25%
  • 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 cost25%
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 stock7,500
Expenses6,500
Prepaid Expenses2,000
Interest500

16,500
Credit balanceRs.
Capital & Reserve9,000
Liabilities1,000
Revenue6,500
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