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November 2019

Choose the correct answer


1. Under the average clause, the loss is suffered by both insures and insured
a) In equal ratio
b) In the ratio of risk covered
c) Only by the insures
d) Only by the insured
2. Irrecoverable short workings are transferred to
a) Trading a/c
b) P/C a/c
c) P/L Appropriation a/c
d) Balance Sheet
3. General Ledger adjustment account is opened in
a) Bought ledger
b) Sold ledger
c) Both bought ledger and sold ledger
d) General ledger
4. Rent and rates are apportioned to different department on the basis at
a) Floor area occupied
b) No of workers
c) Sales of the department
d) Value of the assets.
5. Interest suspense a/c with show ______________ side under installment purchase
system.
a) Debit b) credit c) both d) nothing
6. _____________ account is to be prepared for the period from the beginning of the
accounting year till the date of fire.
7. Excess of minimum rent over actual royalty is termed as ___________
8. The branch which keeps its own books of accounts and maintains a full system of
accounting is know as _________-
9. Department accounts are prepared to know separately the ___________ of each
department.
10. Under hire purchase system, depreciation on assets is charged on _____________

APRIL 2014
1. A building worth Rs.10,00,000 is insured for Rs. 6,00,000. It is completely destroyed by
fire. The loss to be admitted will be
a) Rs.10 lakhs b) Rs. 6 lakhs c) Rs. 4 lakhs d) Rs. 16 lakhs
2. Fire insurance provides cover for _____________ assets
a) Tangible b) Intangible c) Fictitious d) non – fictitious
3. Royalty is an agreement between
a) Lessor and lessee b) Debtor and creditor c) Seller and buyer d) Principal and
agent
4. Short workings means
a) Excess of actual royalty over minimum rent
b) Excess of minimum rent over actual royalty
c) Excess of minimum rent over amount paid
d) Recoupment
5. Private assets contributed by the insolvent is shown under
a) List E b) List F c) List G d) List H.
6. Loss on discounte6d bill is
A) Preferential creditors
B) Secured creditors
C) Partly secured creditors
D) Unsecured creditors
7. Rent and rates are apportioned on the basis of
a) Cost price
b) Floor area
c) Efficiency of worker
d) Time spent by worker
8. Branch account under debtors system is a ___________ account
a) Real b) nominal c)personal d)representative personal
9. Under hire purchase system buyer becomes the owner
a) On payment of down payment
b) After receipt of goods
c) On payment of last installment
d) On payment of first installment
10. The last installment paid under hire purchase includes
a) Cash price only
b) Interest only
c) Cash price and interest
d) Hire purchase price and interest
November 2014
1. A document specifying the conditions of fire insurance
a) Fire insurance policy
b) Marine insurance policy
c) Life insurance policy
d) All
2. When the lessor receives payment he credits
a) Lessee a/c b)royalty a/c c) short workings a/c d) minimum rent a/c
3. Bought ledger account is opened in
a) Creditors ledger b) debtors ledger c) general ledger d) stock ledger
4. Brach a/c under debtor system is a
a) Real a/c b) nominal a/c c) personal a/c d) cost a/c
5. The cost of goods sold on hire purchase is transferred to
a) Sales a/c b) purchases a/c c) H.p trading a/c d) debtors a/c
6. Average clause protects _________
7. Royalty a/c involves ______________ persons.
8. List H shows __________
9. Hire purchase price ______________ interest = ____________
10. Under instalment system interest is transferred to ____________ a/c
November 2013
1. The object of inserting average clause in loss of stock is to ________
a) Encourage under insurance
b) Discourage under insurance
c) Discourage full insurance
d) Encourage full insurace
2. Goods recovered in good condition at the time of fire accident is called ____________
a) Salvaged goods b) saved goods c) damaged goods d) scrap materials
3. If royalty is paid on the basis of output, it should be transferred to ________ account
a) Profit and loss b) production c) lessee d) cash
4. Sum payable by a person utilizing the benefits of another is called _________
a) Royalty b) royalty suspense c) minimum rent d) Recoupment
5. Amount of deficiency is given under ____________
a) List A b) List B c) List C d) List H
6. List C gives details regarding the _________
a) Current assets
b) Partly secured creditors
c) Fixed assets
d) Preferential creditors
7. Loading is the different between ___________
a) Invoice price and selling price
b) Invoice price and profit
c) Invoice price and cost price
d) Cost price and profit
8. Repairs to machinery is apportioned according to ___________
a) Floor area occupied
b) Depreciation of machinery
c) Life time of machinery
d) Value of machinery
9. Hire purchase price = cash price + ____________
a) Down payment
b) Interest
c) Installments
d) Interest –Down payment
10. Under installment system, in case of default the seller has the option to _____________
a) Make sue in court
b) Repossess the goolds
c) Cancel the agreement
d) Repossess the title
Nov 2012
1. Brach account under debtors system _______----
a) Personal account b) real account c) nominal account d) none
2. Goods returned by customers is credited to __________
a) Branch stock account
b) Branch trading account
c) Branch expenses account
d) Branch debtors account
3. In insolvency accounts deficiency is shown under
a) List H b) List F c) List G d) List H
4. The statement submitted by an insolvency to the court is ___________
a) Statement of income b) statement of expenses c) statement of affairs d)
statement of cash
5. Difference between the standard turnover and actual turnover in the indemnity is
a) Best sales b) short sales c) average sales d) cash sales
6. Insurance claim is the different between the loss of stock and _______-
a) Closing stock b) opening stock c) salvaged stock d) average stock
7. Transfer of title of the goods after payment of last installment
a) Installment system b) consignment system c) contract system d) hire purchase
system
8. Buyer terminate the contract before the last payment of installment
a) Hire purchase system
b) Installment system
c) Consignment system
d) Joint venture sysemi
9. Transfer of goods from one department to another
a) Purchase b)sales c) inter departmental transfer
b) None
10. The common selling expenses of departments should be shared between individual
departments on the basis of __________-
a) Sales b) cash sales c) credit sales d) purchasesu
April 2011
1. The main objective of inserting average clause in loss of stock policy is to ________
a) Encourage under insurance b) Discourage full insurance c) Encourage full insurance
d) All the above.
2. At the time of payment of royalty the lessee debits ____________ account
a) land lord b) royalty c) profit and loss d) short workings
3. List C gives details regarding ________
a) unsecured creditors b) partly secured creditors c) preferential creditors d) fully
secured creditors.
4. _____________ is the loading on the invoice price, when goods are sent to Branch at cost
Plus 25%
a)16% b) 20% c) 25% d) 125%
5. on seizure of the goods by the hire vendor the balance is the asset account is transferred to
a) profit and loss a/c b) hire vendor c) goods repossessed a/c d) hire purchaser a/c
6. loss of profit insurances covers __________
a) revenue loss b) capital loss c) both revenue and capital loss d) budgeted loss
7. in the books of lessee, shortworkings irrecoverable are to be debited to _______
a) profit and loss account b) land lord account c) shortworkings account d) royalty
account
8. book debts are shown under _____________
a) List A b) List B c) List E d) List F
9. closing stock ( in Units)
a) opening stock + Purchases – sales
b) purchases - Sales – Opening stock
c) Sales – Opening stock + purchases
d) opening Stock + Sales - Purchases
10. Under instalment system of purchase interest suspense account is debited with _______
a) the difference between instalment price and cash price
b) amount of interest instalment price discounted price
c) the different between instalment price and discounted price
d) discounted cash price
November 2011
1. Consequential loss policy indemnifies
a) Capital loss b) revenue loss c) general loss d) loss of life
2. Royalty account is __________
a) Personal a/c b)Real a/c c) nominal a/c d) profit and loss a/c
3. Deficiency is shown in
a) List E b) List F c) List G d) List H
4. On the basis of system of accounts maintained by the branch branches are classified into
a) 2 groups b) 3 groups c) 4 groups d) 5 groups
5. Hire purchase Act was enacted in the year
a) 1972 b) 1992 c) 1982 d) 1962
6. Minimum indemnity period of consequential loss policy
a) 3 year b) 6 year c) 5 year d) 4 year
7. Short workings irrecoverable are transferred to
a) Profit and loss a/c b) minimum rent a/c c) Royalty a/c d) Landlord a/c
8. Contingent liabilities expected to rank are shown under
a) List A b) List B c) List C d) List D
9. Department account are prepared to know separately the ___________ of each
department.
a) Sales b) profit and loss c) production d) Labour
10. Total cash price of a machine is Rs. 14,000. The hire purchase price of the machine is Rs.
16,000. The total amount of interest payable is
a) Rs. 2,000 b) Rs. 14,000 c) 16,000 d) Rs. 30,000
November 2010
1. Memorandum trading account is prepared to find out the _________ on the date of fire
a) Value of stock destroyed b) sales d) purchases d) sales and purchases
2. Royalty account is a __________ account
a) Personal b) Real c) nominal d) Capital
3. Preferential creditors are shown in
a) List A b) List B c) List D d) List E
4. Under debtors system credit sales are
a) Debited to branch account
b) Credited to branch account
c) Debited to head office account
d) Not shown anywhere in the branch account
5. Under hire purchase system the buyer becomes the owner of goods
a) Immediately after the receipt of goods
b) Immediately after the down payment
c) Immediately after the payment of last instalment
d) Before the payment of last instalment
6. Fire insurance provides covers for
a) Tangible assets b) intangible assets c) fictitious assets d) all the above
7. Minimum rent account is opened in the books of ___________
a) Landlord b) lessee c) bank d) landlord and lessee.
8. Creditors in respect of rent and taxes are called as ________
a) Secured creditors b) partly secured creditors c) unsecured creditors d) preferential
creditors.
9. In departmental accounts, carriage should be divided _______ ratio
a) Time b) sales c) purchases d) floor space
10. Debiting the assets account only with the cash price paid by the buyer” is in accordance
with the accounting concept of ___________-
a) Conservation b) consistency c) revenue d) cost
November 2009
1. He average clause in the loss of profit policy protects the interest of the _________
a) Insurer b) insured c) workers d) all the above
2. Short workings means
a) Excess of actual royalty over minimum rent
b) Excess of minimum rent over actual royalty
c) Royalty in the initial period
d) All the above
3. Any arrears of tax payable to the government is a _____________-
a) Preferential claim b) secured claim c) unsecured claim d) partly secured claim
4. Under debtors system ______________ account is prepared to find out the profit.
a) Branch b) branch debtors c) branch stock d) branch asset
5. When the first instalment becomes due ____________ account is debted in the books of
buyer.
a) Asset b) interest c) vendor d) cash
6. Abnormal loss of stock after adjusting recovery and insurance claims is transferred to
________
a) Trading account b) profit and loss account c) capital account d) profit and loss
appropriation account
7. In case the right to recoup short workings has expired the balance in short workings
account is transferred to
a) Land lord account b) profit and loss account c) royalty account d) lessee account
8. Repairs to machinery is apportioned over the departments on the basis of _________
a) Number of machines in each department b) value of machinery c) floor area of each
machine d) all the above
9. In the case of hire purchase system asset account is debited with
a) Hire purchase price b) cash price c) cost price to the seller d) instalment price
10. Details of bills of exchange are given under ___________
a) List A b) List E c) List F d) List G
April 2015
1. Under fixed capital system the profits and losses of partners will be transferred to their
_________ account.
a) Current b) capital c) drawings d) loan
2. Revaluation account is a _________
a) Nominal a/c b) personal a/c d) real a/c d) none of the above
3. Gaining ratio = ________________
a) Old profit sharing ratio – new profit sharing ratio
b) Old profit sharing ratio – old profit sharing ratio
c) New profit sharing ratio – old profit sharing ratio
d) Sacrificing ratio – old profit sharing ratio
4. In the event of amalgamation of partnership firm the goodwill of each firm is credited to
the partner’s account of the respective firms in ___________ ratio.
a) Old profit sharing b) new profit sharing c) capital d) equal
5. A firm unable to pay the debts when _________
a) A partner is insolvent b) the firm is insolvent c) when all except one partner are
insolvent d) all the above
6. Indian partnership Act was enacted in the year ___________
7. Undistributed profit will appear on the ____________ side of the balance sheet.
8. At the time retirement the revaluation profits of business will be shared by __________
partners.
9. Purchase consideration is calculated into ___________ type.
10. Surplus capital method is also known as _______________
April 2013
1. Commission paid to partners is debited to _____________
a) Trading a/c b) P& L a/c c) P & L appropriation a/c d) partner’s capital a/c
2. Under fixed capital method drawings of each partner is debited to his ___________
account.
a) Capital b) current d) profit and loss d) revaluation
3. The premium paid by the new partners is shared by the existing partners.
a) In the sacrificing ratio b) in the gaining ratio c) in the capital ratio d) P & L ratio
4. Any amount written off after the admission of a partner is transferred to the capital
account of the partners in
a) New ratio b) old ratio c) sacrificing ratio d) gaining ratio
5. A, B and C are partners sharing profits in the ratio 3 : 2 . If C retired the new profit
sharing ratio of between A and B will be
a) 3 :2 b) 2 1 c) 1 : 1 d) 2 : 2
6. The joint life policy amount after the maturity of the policy should be transferred to the
capital account of partner in ___________ ratio.
a) New profit sharing b) old profit sharing c) capital d) equal
7. General reserve at the time of amalgamation of firm will be transferred to
________________ account.
a) Capital b) realization c) asset d) liabilities
8. Assets not taken over by the new firm at the time of dissolution are transferred to
a) New firm’s account b) revaluation account c) realisaion account d) partner’s capital
account
9. On the dissolution of a firm, the liability taken over by a partner is
a) Debited to partner’s capital account
b) Credited to realisation account
c) Credited to partner’s capital account
d) Not taken into account
10. Un recorded liability when paid on dissolution of a firm is debited to
a) Realisation account b) partner’s capital account c) liability account d)
revaluation account
Nov 2013
1. Current accounts of the partners should be opened when capitals are
a) Fixed b) fluctuation c) sufficient d) insufficient
2. An ordinary partnership firm can have a maximum of ___________ partners.
a) 20 b) 50 c) 3 d) 10
3. Sacrificing ratio formula is _____________
a) New share – old share ratio
b) Sacrificing ratio
c) Old share – new share
d) Average profit – normal profit
4. When goodwill is brought in cash by the new partner the method is known as
a) Revaluation method b) premium method c) memorandum revaluation method
e) realisatiion method
5. the joint life policy amount after the maturity of the policy should be transferred to the
capital accounts of the partners in ____________ ratio.
a) Profit sharing b) gaining c) capital d) equal
6. Profit or loss on revaluation at the time of retirement must be transferred to the partners
in ____________
a) Capital ratio b) old profit sharing ratio c) gaining ratio d) sacrificing ratio
7. In the event of amalgamation of partnership firm, the goodwill of each firm is credited to
the partner’s account of the respective firms in _________ ratio.
8. On the dissolution of a firm, the asset taken over by a partner is
a) Debited to partner’s capital account
b) Credited to realisation account
c) Credited to partner’s capital account
d) Not taken into account
9. When the firm is dissolved reserve fund is transferred to
a) Partner’s capital account
b) Realisation account
c) Partner’s loan account
d) Both (a) and (b)
10. When the realisation expenses are to be born by a partner, it is debited to
a) Partner’s capital A/c b) cash A/c c) realisation Ac d) profit and loss a/c
April 2010
1. An ordinary partnership firm can have an maximum of ___________ partners
a) 20 b) 50 c) 3 d) 10
2. Under fixed capital method, drawings of each partner is debited to his ________
account
a) Capital b) current c) profit and loss d) revaluation
3. The premium paid by the new partner is shared by old partners in __________
a) Profit sharing ratio b) capital ratio c) gaining ratio d) sacrificing ratio
4. A , B and C are partners sharing profits in the 4ratio of 2 : 2: 1. “C” retires and the
new profit sharing ratio between “ A” and “ B” will be ____________
a) 2:1 b) 1:1 c) 3:2 d) 1:2
5. On admission of a new partner, decrease in the value of assets is debited to
a) Trading account b) balance sheet c) revaluation account d) profit and loss
account
6. The joint life policy amount after the maturity of the policy should be transferred to
the capital account of the partners in _____________ ratio.
a) New profit sharing b) old c) capital d) Equal
7. Assets not taken over by the new firm at the time of dissolution are transferred to
a) New firm’s account transferred to
b) Revaluation account
c) Realisation account
d) Partner’s capital account
8. In the event of amalgamation of partnership firm, the goodwill of each firm is
credited to the partner’s account of the respective firms in ____________ ratio
a) Old profit sharing b) new profit sharing c) capital d) equal
9. Unrecorded liability when paid on dissolution of a firm is debited to
a) Realisation account b) partner’s capital account c) liability account
e) revaluation account
10. on the dissolution of a firm the liability takeover by a partner is
a) debited to partner’s capital account
b) credited to realisation account
c) credited to partner’s capital account
d) not taken into account.