1. Transactions of Aruna Ltd. for the period 1.4.2017 to 31.3.

2018 are as below:

Indirect expenses Rs. 80,000
Sales Rs. 7,50,000
Purchases Rs. 4,50,000
Stock as on 31.3.2018 Rs. 3,60,000
Rate of gross profit on sales is 12%. The value of stock as on 1.4.2017 was
(a) Rs. 5,70,000
(b) Rs. 4,90,000
(c) Rs. 5,30,000
(d) None of the above.

2. At the time of stock taking, accountant noted that, goods costing Rs. 1,000 (estimated future cost of Rs.
1,600) are lying in godown, waiting for dispatch. These goods were billed on March 15, 2018 for Rs.
1,200. While calculating the value of physical inventory, the following adjustment will be made in the
value of inventory shown by the books of account for the year ended on 31.3.2018
(a) Exclude the goods from calculating inventory
(b) Include the sale price Rs.1,200 in the value of inventory
(c) Include the cost price Rs. 1,000 in the value of inventory
(d) include the goods at estimated future cost of Rs. 1,600 in the value of inventory.

3. At the end of the year 2017-18, the ledger of a firm shows following balances to prepare
balance sheet:
Capital(before considering profit of year) Rs. 2,00,000
Net profit for the year 2017-18 Rs. 1,50,000
Provision for taxes Rs. 75,000
Liabilities Rs. 1,00,000
Cash and Bank Rs. 60,000
Fixed Assets Rs. 4,65,000
The total of the balance sheet would be
(a) Rs. 4,65,000
(b) Rs. 5,25,000
(c) Rs. 5,65,000
(d) Rs. 5,10,000.

4.
2.48 You are required to find the total of corrected trial balance from the following:
Rs. Rs.
Cost of goods sold 1,50,000 —

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 Closing Stock — 40,000
Debtors — 60,000
Fixed Assets 50,000 —
Opening Stock 60,000 —
Sundry Expenses — 20,000
Sales — 2,00,000
Capital 90,000 —
Creditors 30,000
3,50,000 3,50,000
Total of corrected trial balance will be______
(a) Rs.3,20,000
(b) Rs.3,60,000
(c) Rs.3,00,000
(d) Rs.4,00,000

5.
S. No.     Account heads  Debit (`) Credit (`)
1.         Sales  15,000 
2.         Purchases  10,000 
3.         Miscellaneous expenses  2,500 
4.         Salaries  2,500 
Total  12,500  17,500 
The difference in trial balance is due to
(a) Wrong placing of sales account
(b) Wrong placing of salaries account
(c) Wrong placing of miscellaneous expenses account
(d) Wrong placing of all accounts.

6. If a purchase return of Rs. 1,000 has been wrongly posted to the debit of the sales returns account, but
has been correctly entered in the suppliers’ account, the total of the
(a) Trial balance would show the debit side to be Rs. 1,000 more than the credit
(b) Trial balance would show the credit side to be Rs. 1,000 more than the debit.
(c) The debit side of the trial balance will be Rs. 2,000 more than the credit side.
(d) The credit side of the trial balance will be Rs. 2,000 more than the debit side.

7 Debit balance as per Cash Book of ABC Enterprises as on 31.3.2018 is Rs. 1,500. Cheques deposited but
not cleared amounts to Rs. 100 and Cheques issued but not presented of Rs. 150. The bank allowed
interest amounting Rs. 50 and collected dividend Rs. 50 on behalf of ABC Enterprises. Balance as per
pass book should be
(a) Rs. 1,600.
(b) Rs. 1,450.
(c) Rs. 1,850.
2.48 (d) Rs. 1,650.

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8. The cash book showed an overdraft of Rs. 1,500, but the pass book made up to the same date showed
that cheques of Rs 100, Rs. 50 and Rs. 125 respectively had not been presented for payments; and the
cheque of Rs. 400 paid into account had not been cleared. The balance as per the pass book will be
(a) Rs. 1,100.
(b) Rs. 2,175
(c) Rs. 1,625.
(d) Rs. 1,375.

9 Amit Ltd. purchased a machine on 01.01.2018 for Rs. 1,20,000. Installation expenses were Rs. 10,000.
Residual value after 5 years Rs. 5,000. On 01.07.2018, expenses for repairs were incurred to the extent of
Rs. 2,000. Depreciation is provided under straight line method. Annual Depreciation will be
(a) Rs. 13,000
(b) Rs. 17,000
(c) Rs. 21,000
(d) Rs. 25,000

10 Consider the following data pertaining to E Ltd. who constructed a cinema house:
Particulars Rs.
Cost of second hand furniture 90,000
Cost of repainting the furniture 10,000
Wages paid for fixing the furniture 2,000
Fire insurance premium 1,000
The amount debited to furniture account is
(a) Rs. 90,000
(b) Rs. 91,000
(c) Rs. 1,00,000
(d) Rs 1,02,000

11. P shows a profit of Rs. 7,00,000 for the year ended 31.3.2018. The figure has been arrived at after
charging following against revenue:
(i) Purchase of Car on 28.3.2018 for use in business Rs. 3,00,000 and treated as vehicle expenses.
(ii) Omitted to record unpaid electricity bills for February and March, 2018 of Rs. 15,000 per month.
The correct profit for the year ended 31st March, 2018 will be
(a) Rs. 8,30,000
(b) Rs. 9,00,000
(c) Rs. 9,70,000
(d) Rs. 10,30,000.

12. On 1st April, 2017, M/s Zero Bros. had a provision for doubtful debts of Rs. 13,000. During 2017-18
Rs. 8,400 proved irrecoverable and it was desired to maintain the provision for bad debts @ 4% on debtors
which stood at Rs. 3,90,000 before writing off bad debts. Amount of net provision debited to profit and loss
account will be: _________
2.48
(a) Rs. 15,600
(b) Rs. 15,000

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 (c) Rs. 10,664
(d) Rs. 10,000.

2.48

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