MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Final Accounts Quiz 8 - MCQExams.com
CBSE
Class 10 Elements Of Book Keeping And Accountancy
Final Accounts
Quiz 8
Financial data of an entity is given below:
Gross Profit Rs.$$6,700$$, Carriage outwards Rs.$$250$$, Rent received Rs.$$575$$ and Other expenses Rs.$$3,600$$. The net profit would be.
Report Question
0%
Rs.$$3,025$$
0%
Rs.$$2,850$$
0%
Rs.$$3,425$$
0%
Rs.$$3,275$$
Explanation
Net profit = Gross Profit - carriage outwards - Other expenses+ rent received
= 6700- 250-3600+575
= 3425 Rs
The provision for discount on debtors is often provided in keeping with the concept of _______________.
Report Question
0%
Conservatism
0%
Going Concern
0%
Materiality
0%
Consistency
Explanation
Conservatism:
This convention ensures that uncertainties and risks inherent in business transactions should be given a proper consideration. As per this convention the accountants follow the rule 'anticipate no profit but provide for all possible losses'. Examples Making provisions for Bad Debts, Making General Reserve, Valuing the stock at lower of cost or market value etc.
When taking final stock for preparation of trading account then ______ should not be included
Report Question
0%
Purchases of goods made but not received.
0%
Goods sold but not yet delivered
0%
Both a & b
0%
None of the above
Prakash sells goods at $$20\%$$ on sales. His sales were Rs.$$10,00,00$$. The amount of gross profit is _________.
Report Question
0%
Rs.$$1,70,000$$
0%
Rs.$$2,50,000$$
0%
Rs.$$2,40,000$$
0%
Rs.$$2,00,000$$
Explanation
Sales = Rs.$$10,00,000$$
Gross Profit = $$20\%$$ of sales
Thus, Gross Profit = $$10,00,000 \times 20$$
= Rs.$$2,00,000$$
_______ is the difference between the selling price and the cost price of the goods sold.
Report Question
0%
Gross profit
0%
Gross loss
0%
(A) or (B)
0%
(A) and (B)
Explanation
Trading Account is prepared to know the Gross Profit or Gross Loss during the accounting period. The account is based on matching the selling price of goods and services with the cost of goods sold or services rendered. If cost is greater than selling price, then it is gross loss. If selling price is more than cost of goods sold than it is gross profit.
Which of the following item appears in trading account of a business?
Report Question
0%
Wages and Salaries
0%
Depreciation on buildings
0%
Freight outward
0%
Salaries.
Carriage outwards appears in ______, whereas carriage inwards appears in ________.
Report Question
0%
Trading A/c, Profit and Loss A/c
0%
Profit and Loss A/c, Trading A/c
0%
Trading A/c, Balance Sheet
0%
Balance Sheet, Profit and Loss A/c
Explanation
Carriage outward is the seller's cost of delivering goods to the buyer. It is related to sale and carriage inward is the transportation cost associated with purchase of goods. Trading account includes all the expenses related to production. All the indirect expenses comes in profit and loss account. That's why carriage outward appears in profit and loss account and carriage inward appears in trading account.
Gross profit or gross loss revealed by trading account is transferred to:
Report Question
0%
Balance Sheet
0%
Profit and Loss Account
0%
Manufacturing Account
0%
Profit and Loss Appropriation Account
Explanation
Profit and loss account calculate net profit or net loss. It takes into account operating and non operating expenses and revenues, during an accounting period. It is prepared after the trading account. The balance of trading account i.e. gross profit or gross loss is transferred to this account which acts as initial point of this account.
The net profit or loss is transferred to______________.
Report Question
0%
Drawing Account
0%
Capital Account
0%
Suspense Account
0%
None of the above
Depreciation appearing in the trial balance should be:
Report Question
0%
Debited to P&L A/c
0%
Shown in liability in balance sheet
0%
Reduced from related asset in Balance Sheet
0%
Both (A) and (C) of the above
Revenue expenditure are balanced and is transferred to ______________.
Report Question
0%
Liability side in balance sheet
0%
Credit Side to profit & loss account
0%
Debit side to Profit and loss account
0%
Asset side in balance sheet
Explanation
During the normal course of business, any expenditure incurred of which benefit is received during the same accounting period is called
revenue expenditure.
These expenses help a business sustain its operations and may not result in an increase in revenue.
The amount transferred to trading and P&L account should only be to an extent to which goods or services have been consumed during the accounting period and should transfer to the debit side of trading or Profit and Loss A/c account.
If capital losses are negligible, they are_______ of the year in which they occur.
Report Question
0%
Debited to profit & loss account
0%
Shown in balance sheet on the assets side
0%
Shown in balance sheet on the liability side
0%
None of the above
Explanation
Capital losses generally arise only when an asset is disposed of. However a negligible value claim will give rise to an allowable loss.
If capital losses are negligible they are debited to profit and loss account in the year in which they arise. These losses are not carried forward to be written off in coming years.
Capital losses are:
Report Question
0%
Debited to profit & loss account.
0%
shown in the b
alance sheet on the assets side.
0%
shown in the b
alance sheet on the liability side.
0%
None of the above.
Explanation
Capital loss is a loss suffered by a business on the sale of a fixed asset or it is incurred on raising capital of a joint stock company. This is not a recurring loss or is not made in the ordinary course of the business. Capital loss is shown in the asset side as a fictitious asset which is gradually written off out of profits every year.
In order to prepare the final accounts all the ________ accounts are transferred to Trading and Profit and Loss account.
Report Question
0%
Personal
0%
Nominal and Real
0%
Nominal
0%
Real
Creating Reserve for Discount on Creditors is an example of __________.
Report Question
0%
Increase in Asset & Owner's Liability
0%
Decrease in Asset & Owner's Liability
0%
Increase in Liability & Owner's Liability
0%
Decrease in Liability & Increase in Owner's Liability
0%
Increase in Liability & Decrease in Owner's Liability
Annual Renewal fee of licence for next year is ______________.
Report Question
0%
Capital Expenditure
0%
Revenue Expenditure
0%
Deferred Revenue Expenditure
0%
Prepaid Expenses
Explanation
Prepaid expenses are future expenses that have been paid in advance. You can think of prepaid expenses as costs that have been paid but have not yet been used up or have not yet expired. The amount of prepaid expenses that have not yet expired are reported on a company's balance sheet as an asset.
On 31st March, goods sold at a sale price of Rs. 30,000 were lying with customer, Mohan to whom these goods were sold on 'sale or return basis' and recorded as actual sales. Since no consent was received from Mohan, the adjustment entry was made presuming goods were sent on approval at a profit of cost plus 20%. In the balance sheet, the stock with customers account will be shown at Rs_________.
Report Question
0%
RS. 30,000
0%
RS. 24,000
0%
RS. 20,000
0%
RS. 25,000
Explanation
If the goods are still lying with the buyer or the receiver of goods at the end of the accounting year and the specified time limit is set to expire, they are treated as closing stock. Thus, the entry for sales made earlier is canceled and they are recorded at cost price. However, when the goods are returned by the customer after the specified time limit no entry is passed.
Excess of expenditure over income is also known as _____.
Report Question
0%
Profit
0%
Surplus
0%
Loss
0%
Deficit
Net profit before charging commission to General & Sales manager - Rs 1,65,920
The General Manager is entitled to commission of 10% on net profit after charging such commission and commission of Sales Manager.
The Sales Manager is entitled to commission of 5% on net profit after charging such commission and commission of General Manager.
Commission payable to General Manager- Rs ____________ & Sales Manager - Rs ______________.
Report Question
0%
7,214 & 14,428
0%
14,428 & 7,214
0%
16,592 & 8,296
0%
8,296 & 16,592
Explanation
Whenever it is given to calculate the commission after charging such commission then the formula becomes:
Net profit * Rate of commission/ 100+ Rate of commission
So, Commission payable to General Manager = 165920*10/100+10+5
165920*10/115 = 14427.8 or 14428
Commission payable to Sales Manager = 165920*5/115
= 7213.9 or 7214.
Good worth $$Rs.500$$ taken by the proprietor for personal use should be debited to ______________.
Report Question
0%
Debtors Accounts
0%
Drawing Account
0%
Installation Expenses account
0%
None of these
Explanation
Journal entry for goods taken by proprietor for personal use:
Drawings A/c Dr. XXX
To Purchases A/c XXX
(Being goods taken by proprietor for personal use)
Therefore, B is the correct option.
Following information is available from the books of Mr. Z
Rs
Expenses paid during the year
1,35,000
Expenses outstanding on 1.4.2011
12,250
Expenses prepaid on 1.4.2011
15,000
Expenses outstanding on 31.3.2012
17,000
Expenses prepaid on 31.3.2012
16,750
Net expenses debited to profit & loss account for the year ended 31.3.2012 should be ____________.
Report Question
0%
Rs 1,96,000
0%
Rs 1,37,500
0%
Rs 1,32,000
0%
Rs 1,38,000
Explanation
Particular
Amount
Expenses Paid During the Year
135000
Less-O/s expenses on 01.04.2011
12250
Add-prepaid Expenses in 01.04.2011
15000
Add-O/s Expenses 31.03.12
17000
Less-Expenses prepaid 31.03.12
16750
Net Expenses debited to P & L for the year
138000
Goods costing Rs.10,000 destroyed by fire should be credited to
Report Question
0%
Purchase Account
0%
Sales Account
0%
Cash Account
0%
Goods Lost by Fire A/c
Explanation
Particular
L.F.
Dr.
Cr.
Lost by fire A/c Dr.
To Purchase A/c
(Being goods destroyed by fire)
10000
10000
Goods costing Rs.10000 destroyed by fire will be credited to purchase A/c.
Net profit before charging commission to General manager Rs. 1,65.920 The General Manager is entitled to commission of 10% on net profit after charging such commission.
Commission payable to General Manager __________.
Report Question
0%
Rs.14,428
0%
Rs.15,084
0%
Rs.16,592
0%
Rs.8,296
Explanation
Commission payable to General Manager = Net Profit X Rate of commission/(100 + Rate of commission) = Rs.1,65,920 X 5/(100 + 5) = Rs.15,084. Hence, the correct option is B.
Goods sod to Ram for cash Rs 1000 ________________.
Report Question
0%
Ram's Account to be debited
0%
Ram's Account to be credited
0%
Sales Account to be debited
0%
Cash Account to be credited
0%
None of these
A withdrawal of goods from business by the proprietor should be credited to _______________.
Report Question
0%
Drawing A/c
0%
Capital A/c
0%
Purchases A/c
0%
Sales A/c
Explanation
The
withdrawal of goods
by the
owner
for personal use is placed on a temporary drawings account and reduces the owners equity. It is not an expense of the
business
.
Goods
are
withdrawn
from the
business
and taken by the
owner
, which reduces the inventory of the
business
.
Goods costing Rs 1000 (Sale Price Rs 1200) distributed as free samples should be credited to ________.
Report Question
0%
Sales Account with Rs 1200
0%
Sales Account with Rs 1000
0%
Purchases Account with Rs 1000
0%
Loss by Theft A/c
Explanation
Journal Entry for distributing goods as free samples:
=> Advertisement A/c Dr. XXX (cost price of the goods)
To Purchases A/c XXX
(cost price of the goods)
(Being goods distributed as free samples)
Therefore, C is the correct option.
Employees took stock costing Rs 1000 (sale price Rs 1200) in this case _____________________.
Report Question
0%
Salaries A/c to be debited with Rs. 1200
0%
Sales A/c to be credited with Rs. 1200
0%
Purchases A/c to be credited with Rs 1000
0%
Sales A/c to be credited with Rs 1000
Explanation
Journal entry for withdrawn of goods by employees for personal use:
Drawings A/c dr. XXX
To purchases A/c XXX
Therefore, C is the correct option.
Goods costing Rs 1000 (Sale price Rs 1200) used in making personal furniture should be credited to ________________.
Report Question
0%
Sales account with Rs 1200
0%
Sales account with Rs 1000
0%
Purchases account with Rs 1000
0%
Furniture A/c
Explanation
Journal entry for using good for making personal furniture:
Drawings A/c Dr. XXX
To Purchases A/c XXX
(Being goods used for making of furniture)
Therefore, C is the correct option.
Goods costing Rs 1000 (Sale price Rs 1200) stolen should be credited to __________________.
Report Question
0%
Sales Account with Rs 1200
0%
Sales Account with Rs 1000
0%
Purchases Account with Rs 1000
0%
Loss by Theft A/c
Explanation
Journal Entry for the Goods lost by theft:
Goods lost by theft A/c Dr. XXX
To Purchases A/c XXX
(Being Goods lost by theft)
Therefore, C is the correct option.
A sale of goods to Ram should be debited to ____________.
Report Question
0%
Ram
0%
Cash
0%
Sales
0%
Capital
Explanation
Ram
is the Receiver of
goods
, as such, his personal account has been
debited
According to the rule of personal account, i.e., “
Debit
the Receiver”.
Sales
A/c
will be credited
according to the rule of Nominal account.
0:0:1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
0
Answered
0
Not Answered
0
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Practice Class 10 Elements Of Book Keeping And Accountancy Quiz Questions and Answers
<
>
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page