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1. Which of these is not a distinction between joint venture & consignment? a. governing law b. PSR c. ownership d. revenue earning motive 2. Abnormal loss on consignment is credited to ________ a. P/L a/c b. consignees a/c c. Consignment a/c d. none of these 3. In case of del-credre commission provided by consignor to consignee, bad debts is a loss of _________ a. consignee b. consignor c. both of them d. none of these 4. How is abnormal loss to its proportion valued at consignees end? a. COGS+consignor exp b. COGS+consignee exp c. COGS+consignee non-recurring exp d. COGS+consignee recurring exp 5. What is the journal entry in case of separate set of book when co-venturer (A) takes a part of stock? a. Dr. A a/c_Cr. Joint Venture a/c b. Dr. Joint Venture a/c_Cr. A a/c c. Dr. A a/c_Cr. Stock a/c d. Dr. stock a/c_Cr. A a/c 6. What is the journal entry in case of separate set of book when loss is the result of the venture? a. Dr. loss a/c_Cr. Joint venture a/c b. Dr. Joint Venture a/c_Cr. Loss a/c c. Dr. Co-venturers a/c_Cr. Joint Venture a/c d. Dr. Joint Venture a/c_Cr. Co-venturers a/c 7. Out of the goods sent on approval basis amounting to Rs.8900, goods worth Rs.3700 were returned by the customer as on the due date. What would be the entry in the suppliers books of accounts a. Dr. customer a/c Rs.8900_Cr. Sales a/c Rs.8900 Dr. sales return a/c Rs.3700_Cr. Customer a/c Rs.3700 b. Dr. customer a/c Rs.8900_Cr. Sales on approval basis a/c Rs.8900 Dr. sales return a/c Rs.3700_Cr. Customer a/c Rs.3700 c. Dr. customer a/c Rs.8900_Cr. Sales on approval basis a/c Rs.8900 Dr. Sales on approval basis a/c Rs.3700_Cr. Customer a/c Rs.3700 d. Dr. customer a/c Rs.8900_Cr. Sales a/c Rs.8900 Dr. Sales on approval basis a/c Rs.3700_Cr. Customer a/c Rs.3700 8. How many methods are there to account for sale on approval basis? a. 1 b. 2 c. 3 d. 4

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9. What is the treatment of stock with customers on approval basis? a. add selling price of goods with the closing stock b. subtract S.P. of goods with the closing stock c. add C.P. of goods with closing stock d. subtract C.P. of good with the closing stock 10. Goods sent on approval has been Recorded as actual sales, which two accounts needs to be adjusted? a. sales & closing stock b. sales & opening stock c. purchases & closing stock d. no adjustment 11. Calculate the special commission in the following case.400 units sold at Rs200/unit,price mentioned at proforma invoice Rs110/unit.Special commission @25%over Rs150/unit. a. 11000 b. 15000 c. 5000 d. 20000 12. Fixed Assets & Current Assets are categorized as per concept of a. Separate entity b. Going Concern c. Consistency d. Time period 13. What entry would the customer pass when it purchases goods on approval basis? a. Dr. purchase a/c_Cr. supplier a/c b. Dr. purchase on approval a/c_Cr. supplier a/c c. Dr. suspense a/c_Cr. supplier a/c d. no entry 14. In case of complete records, what is the journal entry in co-venturers(A) book,when commission is payable to the other co-venturer(B)? a. Dr. Joint Venture a/c_Cr. A a/c b. Dr. Joint Venture a/c_Cr. B a/c c. Dr. A a/c_Cr. Joint Venture a/c d. Dr. B a/c_Cr. Joint Venture a/c 15. A & B are co-venturers sharing profits & losses in the ratio 4:1.A supplies goods to the value of Rs.50000 & incurs expenses amounting to Rs.5400.B supplies goods to the value of Rs.14000 & his expense amount to Rs.800.B sells goods on behalf of the joint venture realizes Rs.92000.B is entitled to commission of 5% on sales.B settles his account by bank draft. What will be the final remittance? a. B will remit Rs.69000 to A c. A will remit Rs.69160 to B b. B will remit Rs.69160 to A d. A will remit Rs.69000 to B

16. X of kolkata sends out 2000 boxes to Y of Delhi costing Rs.100 each. Consignor s expenses Rs.5000.2/10th of the boxes were lost in consignees godown & treated as normal loss.1200 boxes were sold by the consignee. The consignment stock will be a. 68333 b. 61500 c. 40000 d. 41000

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17. Which of the following statement is true? a. When separate set of books is maintained, expenses paid by the venturer will be credited to joint bank account b. When separate set of books is maintained, expenses paid by the venturer will be credited to venturers capital a/c c. When separate set of books is maintained, expenses paid by the venturer will be credited to Joint Venture a/c d. When separate set of books is maintained, expenses paid by the venturer will be credited to outstanding expenses a/c 18. X of kolkata sends out certain goods at cost+25%. Invoice value of goods sent out Rs.200000.4/5th of the good were sold by consignee at Rs.180000. commission 2% up to invoice value & 10% of any surplus above invoice value. the commission payable is a. 4800 b. 5200 c. 3200 d. 1600 19. Which of the following statement is not true? a. if del-credre commission is allowed, bad debt will not be recorded in consignors book b. if del-credre commission is allowed, bad debt will be debited in consignment a/c c. del-credre commission is allowed by consignor to consignee d. del-credre commission is generally relevant for credit sales 20. How is the expired portion of capital expenditure shown in the financial statements? a. as an income b. as an expense c. as an asset d. as a liability 21. What does LF column of journal means? a. it means ledger folio b. it represents the no of the ledger where the entry is posted c. it represents the page of the account to which the entry is posted d. all of the above 22. Which of these is not a part of inventory? a. finished goods b. work-in-progress c. spare parts of machinery d. raw materials, components & consumables 23. How is abnormal loss to its proportion valued while in transit? a. cost of goods consigned + consignees expenses b. cost of goods consigned + consignor expenses c. cost of goods consigned + consignee non-recurring expenses d. cost of goods consigned + consignor non-recurring expenses 24. Two primary qualitative characteristics of financial statements are: a. Understandability & materiality b. relevance & reliability c. materiality & reliability d. relevance & understandability

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25. An amount of Rs.2500 is debited twice in the bank coloumn of cash book. When credit balance as per pass book is the starting point which one of these adjustment would be done at the time of reconciliation a. add Rs.2500 to balance as per pass book b. deduct Rs.2500 to balance as per pass book c. add Rs.5000 to balance as per pass book d. deduct Rs.5000 to balance as per pass book 26. From the following details calculate closing stock Op. Stock-15000 Purchases- 180000 Direct expenses- 35000 Selling & distribution exp- 20000 Administrative exp- 10000 Financial exp- 5000 Sales 240000 Gross Profit on sales 25% a. 45000 c. 55000 b. 50000 d. 60000

27. On March 31, 2006 Amit purchased a typewriter from Arvind for Rs. 8,000. This is a. an event b. a transaction c. a transaction as well as an event d. neither a transaction nor an event 28. Salaries and wages will appear on a. Debit side of the trading a/c c. asset side of balance sheet b. debit side of the P/L a/c d. credit side of the trading a/c

29. How is abnormal loss treated in the Balance Sheet? a. total value is shown on the assets side b. value recovered from the insurance co. is shown on the asset side c. amount not recovered from the insurance co is shown on the asset side# d. no entry 30. Rs.1500 incurred for upgradation of computer by installation of 1 GB RAM is a. capital expenditure b. deferred revenue expenditure c. revenue expenditure d. none of these 31. Expenses incurred on the repairs and whitewashing for the first time on purchase of a old building are_______ expenditure. a. revenue b. capital c. deferred revenue d. deferred capital

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32. There are 1000 sewing machines costing Rs. 250/-,sent on consignment.Freight paid by consignor & consignee Rs 1500 & 2500 resp.Godown rent paid Rs500/month and godown used for 7 months.20 machines destroyed beyond repair at consignees end.What is the value of abnormal loss of the consignment. a. 5050 b. 5030 c. 5080 d. 5150 33. What is the journal entry in case of separate set of books of co-venturers when purchase of goods is made? a. Dr. Purchase a/c _cr. Joint bank a/c b. Dr. Joint bank a/c_cr. Purchase a/c c. Dr. joint bank a/c_cr. Joint venture d. Dr. joint venture a/c_cr. Joint bank a/c 34. What is the treatment if the starting point is an unfavorable cash book balance, when wrong debit is made in the cash book? a. add to the pass book b. subtract from the cash book c. add to the cash book d. subtract from the pass book 35. What is the treatment if the starting point is an unfavorable pass book balance, when there is overcasting of Dr. side of bank account in the cashbook? a. add to the pass book b. subtract from the cash book c. add to the cash book d. subtract from the pass book 36. What entry would the supplier pass when the customer rejects goods? a. Debit sales a/c_ credit customer a/c b. Debit sale on approval a/c_ credit customers a/c c. debit suspense a/c_ credit customers a/c d. no entry 37. According to section 617 a government company is a company in which not less than _______ of the paid up share capital held by central govt. a. 41% b. 50% c. 100% d. 51% 38. Which of the following is not a difference between LIFO & FIFO? a. Recommendation by AS-2 b. valuation of closing stock c. effect on the quantity of stock left d. difference in profit 39. Fundamental Accounting Assumptions are: a. Going Concern, Conservatism, Accrual b. Going Concern, matching, consistency c. Going Concern, consistency, accrual d. Going Concern, entity, periodicity

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40. Bank Overdraft can be classified as ______ accounts. a. Personal b. representative personal c. nominal d. real 41. Double Accounting System owes its origin to: a. Lucas Pacioli b. Adam Smith c. Kohler d. Karl Marx 42. What entry would the customer pass when it rejects the goods purchased on approval basis? a. debit supplier a/c_ credit purchase a/c b. debit supplier a/c_ credit purchase on approval basis a/c c. debit supplier a/c_ credit suspense a/c d. no entry 43. Opening stock40000 Return outward Closing stock50000 Return inward Purchases 550000 Carriage inward If gross profit is 20% of sales, the gross sales will be: a. 695000 b. 675000 c. 540000 d. 668750 5000 20000 5000

44. An Indian businessman buys goods from UK worth 20,000 Euro and the payment was made in US Dollars. This transaction will be recorded by him in ________ a. Indian rupees b. US dollar c. pound d. Euro 45. Which of these is not a feature of consignment? a. there is a principal & agent relationship between the consignor & consignee b. consignor presents proforma invoice to the consignee c. the property in their goods passes on to the consignee after transfer of the goods d. consignor reimburses al the expenses to the consignee 46. What is amended cash book w.r.t BRS? a. rectified cash book having two coloumns b. rectification of cash book before BRS c. rectification of cash book after BRS d. rectified cash book having three coloumns 47. How many methods are there to record joint venture transactions? a. 1 b. 2 c. 3 d. 4

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48. Mr. Suman sent goods worth Rs.210000 on 11th march on reject or approval basis to Madan. Goods worth Rs.75000 were still pending with Madan on 31st march & the remaining were accepted by him. How would you deal with the goods lying with the customer as on 31st march, assuming that the goods were invoiced at 25% above the cost price. a. deduct Rs.75000 from sales & debtors and include goods worth Rs.60000 in closing stock b. deduct Rs.210000 from sales and include goods worth Rs.210000 in closing stock c. deduct Rs.210000 from sales and include goods worth Rs.75000 in closing stock d. deduct Rs.60000 from sales and include goods worth Rs.75000 in closing stock 49. Contingent asset is not recognized in the financial statements on the basis of _______ accounting concept: a. Prudence b. Materiality c. Substance over form d. Going concern 50. Which of these Account is debited: a. income received in advance c. Prepaid Insurance premium b. Bank loan d. Reserve for bad-debts.

51. The risk of consignment stock lies with a. consignor b. consignee c. buyer d. seller 52. Depreciation a/c appearing in the trial balance will a. be debited to P/L a/c only b. be debited to P/L a/c & deducted from the concerned fixed assets in the balance sheet c. be credited to P/L a/c d. shown on the liability side of the balance sheet 53. Carriage outward is shown in a. P/L a/c c. balance sheet b. Trading a/c d. suspense a/c

54. An overvaluation of current years opening inventory will a. causes current years net income to be overstated b. causes previous years net income to be understated c. causes previous years net income to be overstated d. have no effect 55. As per AS-2, inventories are valued at lower of cost or a. Realisable value b. Replacement value c. net realizable value d. market value

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56. When each co-venturer open their own account, the profit from Joint Venture a/c is a. credited to Joint Venture with other a/c b. debited to Joint Venture with other a/c c. debited to memorandum a/c d. credited to general P/L a/c 57. Recording of capital contributed by the owner as liability ensures adherence of principle of a. matching b. going concern c. double entry d. separate entity 58. Valmiki purchased a car for Rs.10000 & paid Rs.3000 as cash and balance amount will be paid in three equal installments. Due to this: a. total assets increase by Rs.10000 b. total liabilities increase by Rs.3000 c. assets will increase by Rs.7000 with corresponding increase in liability by Rs.7000 d. both (b) & (c) 59. If the owners equity is Rs.80000 & external liability is Rs.40000, cash in hand Rs.20000 the total assets of the firm will be a. 100000 b. 120000 c. 80000 d. 140000 60. Which of the reasons are for bank pass book showing less balance than cash book a. cheque issued but not paid b. payment directly received by the bank c. direct payment made by bank d. interest allowed by bank

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