Objective | ||||||||
Q1.Tick the most appropriate option: | ||||||||
1 | Double entry system means, | |||||||
a) | The recording of same things | b) | Double accounting | c) | The two sides of every transaction records | d) | Entry at two dates | |
2 | Under single entry system sometimes, | |||||||
a) | Double aspect of transaction are recorded | b) | single aspect of transaction recorded | c) | No aspect of transaction recorded | d) | All of above | |
3 | Single entry system is generally adopted by, | |||||||
a) | Small business concerns | b) | Large business concerns | c) | Medium business concerns | d) | All of above | |
4 | Single entry system contains, | |||||||
a) | A daybook of general Journal | b) | A cash book | c) | Ledger accounts for individuals customers and creditors | d) | All of above | |
5 | In single entry system, | |||||||
a) | Personal accounts are maintained | b) | Real accounts are maintained | c) | Normal accounts are maintained | d) | None of above | |
6 | In single entry system ledger contains the account of, | |||||||
a) | Debtors, editors and cash | b) | Wages and carriage | c) | Salaries and insurance | d) | Assets and Liabilities | |
7 | In single entry system | |||||||
a) | DEBTORS ACCOUNT | b) | Creditors account | c) | Trail balance | d) | Statements of affairs | |
8 | In single entry system | |||||||
a) | Correctly | b) | Effectively | c) | Wrongly | d) | Approximately | |
9 | In single entry system | |||||||
a) | Opening statement of affairs is not possible | b) | Closing statement of affairs is not possible | c) | Balance sheet is not possible | d) | “a” and “b” | |
10 | How many methods are available to calculate the profit and loss under single entry system, | |||||||
a) | One | b) | Two | c) | Three | d) | Four | |
11 | Net worth is equal to, | |||||||
a) | Assets– Liabilities | b) | Liabilities — Assets | c) | Liabilities—Capital | d) | Capital+ Assets | |
12 | To calculate the value of capital both at the beginning and at the end of year in single entry system we prepare, | |||||||
a) | Balance sheet | b) | Trading account | c) | Trail balance | d) | Statement of affairs | |
13 | Opening capital is calculated by taking the difference between, | |||||||
a) | Opening Assets and closing assets | b) | Opening assets and closing liabilities | c) | Opening assets and opening liabilities | d) | Closing assets and closing liabilities | |
14 | Closing capital in single entry system is calculated by preparing, | |||||||
a) | Opening state of affairs | b) | Closing statements of affairs | c) | Opening balance sheet | d) | Closing balance sheet | |
15 | Due to fresh capital introduced during the year, the closing capital will, | |||||||
a) | Increase | b) | Decrease | c) | Constant | d) | multiply | |
16 | Due to drawings made during the year, the closing capital will, | |||||||
a) | Increase | b) | decrease | c) | Constant | d) | multiply | |
17 | To calculate the true net profit or net loss in single entry system it is necessary that the amount of drawing should be added in, | |||||||
a) | Fresh capital | b) | Opening capital | c) | Closing capital | d) | Adjusted closing capital | |
18 | To calculate the true net profit to net loss in single entry system it is necessary that the amount of drawings should be added in, | |||||||
a) | Adjusted closing capital | b) | Closing capital | c) | Cash in hand | d) | Cash at bank | |
19 | Single entry system is suitable where, | |||||||
a) | Small amount of cash transactions more | b) | Large amount of cash transactions more | c) | Small amount of credit transactions more | d) | Large amount of credit transactions more | |
20 | According to companies ordinance, single entry system cannot be adopted by, | |||||||
a) | Sole proprietorship | b) | Partnership | c) | “a” and “b” | d) | Joint stock companies | |
21 | Both aspects of a transaction must be recorded in, | |||||||
a) | Single entry system | b) | Barter system | c) | Double entry system | d) | Islamic system | |
22 | Increased net worth method, profit or loss is calculated by preparing, | |||||||
a) | Income and expenditure account | b) | Profit and loss account | c) | Statement of profit or loss | d) | Balance sheet | |
23 | We cannot prepare the trail balance and precise balance sheet under, | |||||||
a) | Single entry system | b) | Double entry system | c) | “a” and “b” | d) | Barter system | |
24 | In single entry system, statement of assets, liabilities and capital is called | |||||||
a) | Income statement | b) | Earning statement | c) | Statement of profit or loss | d) | Statement of affairs | |
25 | Which one of the following equation is correct to calculate the value of profit or loss under single entry system, | |||||||
a) | Capital at the end + drawings – fresh capital introduced during the year=adjusted capital at the end-capital at the beginning = profit or loss | b) | Adjusted capital at the end + drawings-fresh capital introduced during the year=capital at the end-capital in the beginning = profit or loss | c) | Capital at the end-drawings-fresh capital introduced during the year=adjusted capital at the end-capital at the beginning = profit or loss | d) | Capital in the beginning -drawings-fresh capital introduced during the year=adjusted capital in the beginning –capital at the end=profit or loss | |
26 | The format sketch of statement of affairs in similar to, | |||||||
a) | Trail balance | b) | Profit and loss account | c) | Balance sheet | d) | Income and expenditure account | |
27 | It is prepared to calculate the net profit or net loss under single entry system, | |||||||
a) | Opening statement of affairs | b) | Statement of profit or loss | c) | Receipts and payments account | d) | Balance sheet | |
28 | If the adjusted capital at the end is more than the capital in the beginning then the difference will be | |||||||
a) | Gross profit | b) | Gross loss | c) | Net loss | d) | Net profit | |
29 | If the capital at the end Rs.30000. drawings Rs. Trail 50 capital in the beginning Rs. 15000 then the amount of net profit will be | |||||||
a) | 43750 | b) | 16250 | c) | 13750 | d) | 43500 | |
30 | If the capital at the end Rs.45000. fresh capital introduced during the year Rs.15000.then the amount of net profit will be | |||||||
a) | 2500 | b) | 27500 | c) | 62500 | d) | 45000 | |
31 | If the capital at the end Rs.125000. drawing Rs.12000. capital in the beginning Rs.60000.profit during the year Rs.27000 then the amount of fresh capital introduced will be, | |||||||
a) | 87000 | b) | 50000 | c) | 77000 | d) | 170000 | |
32 | If the capital at the end Rs.55000 capital in the beginning Rs.56375. loss during the year Rs.1375.then the amount of drawing will be, | |||||||
a) | 11000 | b) | 2750 | c) | Nil | d) | 112750 | |
33 | If the capital In the beginning Rs.65650.fresh capital introduced during the year Rs.16250.loss during the year Rs.11375. then the capital at the end will be, | |||||||
a) | 70525 | b) | 93275 | c) | 38025 | d) | 48075 | |
34 | if the capital at the end Rs.82500. drawings Rs.12925 profit during the year Rs.16500 then the capital in the beginning will be, | |||||||
a) | 111925 | b) | 86075 | c) | 53075 | d) | 78925 | |
35 | if the capital in the beginning 01-01-2004 Rs.80000. capital introduced on 01-05-2004 Rs.20000 rate of interest 6% P.a., then the interest on capital at 31-12-2004 will be, | |||||||
a) | 5600 | b) | 4800 | c) | 6000 | d) | 4000 | |
36 | the opening balance of debtors can be ascertained by preparing | |||||||
a) | Total creditors account | b) | Cash account | c) | Balance sheet | d) | Total debtors account | |
37 | The amount of cash purchase and cash sales can be ascertained by preparing | |||||||
a) | Total debtors account | b) | Total credit account | c) | Sales account | d) | Income and expenditure account | |
38 | The amount of cash purchases and cash sales can be ascertained by preparing, | |||||||
a) | Total debtors’ account | b) | Total creditor’s account | c) | Profit and loss account | d) | None of the above | |
39 | Cash paid to creditors can be ascertained by preparing | |||||||
a) | Total debtors’ account | b) | Total creditor’s account | c) | Profit and loss account | d) | None of the above | |
40 | The closing balance of creditors can be ascertained by preparing the, | |||||||
a) | Bills receive able account | b) | Bills pay able account | c) | Total debtors account | d) | Total creditors account | |
41 | The opening and closing balances of bills of receive able can be calculated by preparing the, | |||||||
a) | Sales account | b) | Total debtors account | c) | Total creditors account | d) | Bills receive able account | |
42 | If sales Rs. 90000 purchases 65625; closing stock Rs. 11250; rate of gross profit 20% on sales, then the stock in the beginning will be, | |||||||
a) | Rs. 17625 | b) | Rs.18625 | c) | Rs.16625 | d) | Rs.15625 | |
43 | If the sales Rs. 25000, purchases Rs. 25000’ closing stock Rs. 1000 gross loss on cost 20% then the stock in the beginning will be, | |||||||
a) | Rs. 16500 | b) | Rs.16250 | c) | Rs.16350 | d) | Rs.16275 | |
44 | If sales Rs. 45000; purchase Rs. 65000 opening stock Rs. 350; gross profit on sales 10% then the closing stock will be, | |||||||
a) | Rs.28250 | b) | Rs.28260 | c) | Rs.28225 | d) | Rs.28275 | |
45 | If opening stock Rs. 15000; sales Rs. 180000; purchases Rs. 140000; gross profit on cost 20% then the closing stock will be, | |||||||
a) | Rs. 10000 | b) | Rs.150000 | c) | Rs.5000 | d) | Nil | |
46 | If cost of goods sold Rs. 35000; gross profit on cost 15% then the value of sale will be, | |||||||
a) | Rs.42500 | b) | Rs.402500 | c) | Rs.42250 | d) | Rs.40500 | |
47 | If the cost of goods sold Rs. 1400000; gross loss sales 20%, then the value of sales will be, | |||||||
a) | Rs.1166665 | b) | Rs.1166667 | c) | 1166660 | d) | Rs.1166000 | |
48 | If opening balance of debtors Rs. 26500; closing balance of debtors Rs. 44000; credit sales Rs. 44000; bad debts Rs. 2000, then the value of cash receive from debtors will be, | |||||||
a) | Rs.24000 | b) | Rs.25000 | c) | Rs.24500 | d) | Rs.25500 | |
49 | If cash paid to creditors Rs. 8750; closing balance of creditors Rs. 8535; bills payable Rs. 2500, then the value of credit will be, | |||||||
a) | Rs.14785 | b) | Rs.19785 | c) | Rs.2715 | d) | Rs.2285 | |
50 | If cash paid to creditors Rs. 33075; returns outwards Rs. 225; credit purchases Rs. 67500; cash purchases Rs. 25000 then the value of closing creditors will be, | |||||||
a) | Rs.34300 | b) | Rs.34500 | c) | Rs.34200 | d) | Rs.34000 |
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