Jaiib2 - 2 Latest Changes Recalled & Expected Questions

TEACH YOURSELF
JAIIB-2
RECALLED & EXPECTED QUESTIONS
FOR 11.06.2017
ACCOUNTING AND FINANCE FOR BANKERS

( JAIIB PAPER -2)
(All important Changes have been incorporated since May 2016 to till date which are not available
in My last edition “JAIIB MADE SIMPLE PAPER -2 Dated 16.05.2016 with memory based recalled &
Expected questions.This book will act as supplemental to my 2016 editions)
Sanjay Kumar Trivedy

sktrivedycan@gmail.com, 8691062294 / 8208905244
About the Author
Mr. Sanjay Kumar Trivedy ( Native : Motihari, Bihar), Presently working as Divisional Manager in Canara
Bank, Govt. Link, Cell, Nagpur. He Joined Canara Bank as DRO/PO (AEO) on 10.03.1997 and worked in
various places, starting from Maujgarh branch (1997-2000), Near Abohar(Punjab), Sirsa Main- Haryana
(2000-2004), BMC, Jalandhar (2004-2006) Toiladungari, Sakchi, Jamshedpur(2006-2009), Jhalak near
Chaibasa (2009-2011), J B Nagar, Andheri East , Mumbai( 2011-2013) and then Faculty as well as College
in charge ( Principal ) in Regional Staff Training College, Mumbai (2013-2016). He won more than 200
awards in various fields of Banking by his Bank – Canara Bank, which includes twice gold coin for CASA
mobilization. His best achievement was as an officer/AEO, he converted his Section: Agril Finance into
Hi-tech Agril. Branch at BMC, Jalandhar and while working in Jhalak branch near Chaibasa (Jharkhand),
won twice best Rural banker award from NABARD during 2009-10 &2010-11 in SHG credit linkage &
Farmers Club Formation.
Mr. Sanjay Kumar Trivedy is M.Sc. (Agril), CAIIB, PGDCA, MBA, MBA (Finance),Diploma (IIBF) in Rural
Banking, Treasury, Investment and Risk Management, Commodity Derivatives for Bankers, Advanced
Wealth Management, Certificate (IIBF) in Trade Finance, Certificate in Anti-Money Laundering / Know
Your Customer, Certificate Examination in SME Finance for Bankers, Certificate Examination in Customer
Service & Banking Codes and Standards, Certificate Examination in CAIIB - Elective Subjects ( Retail
Banking & Human Resource Management) & Certificate Examination in Microfinance
Mr. Sanjay Kumar Trivedy has teaching experience of more than 16 years, from Sirsa Main Branch (2000-
2004) , he started teaching to his colleagues/staff and in this long journey he has given good results both
in Promotion test as well as JAIIB /CAIIB examination. He has taken IIBF-JAIIB & CAIIB classes at Mumbai.
He has compiled/authored more than 20 books in last three years related banking - JAIIB, CAIIB, Book on
Promotion Test ( all cadres), Interview , Drishti (Current Banking Topics –Interview book for Scale iv &
above), Group Discussion, Certificate course on Customer Service & BCSBI, AML& KYC, MSME Finance for
Bankers, Book on Abroad Posting, Confirmation Test for PO, Banking & Technology and many more books
on day today banking.
Mr. Sanjay Kumar Trivedy is working in a mission mode to reduce knowledge gap among bankers with
objective to provide educational support free of cost to all in general and bankers in particular with
objective to empower our people with better productivity, Sense of satisfaction & Customer delight.
He can be only contacted through e-mail: sktrivedycan@gmail.com & whatsapp no. : 8691062294 /9987519725
Compiled by Sanjay Kumar Trivedy, Divisional Manager, Canara Bank, Govt. Link Cell, Nagpur 1|Page
INDEX
SI. CONTENTS Page No.
No
1. SYLLABUS : JUNE 2017 FOR JAIIB PAPER -2 (AFB) 03-04
2. LATEST CHANGES & MCQs 05-13
3. SELF ASSESSMENT TEST PAPERS 14-18
4. MEMORY BASED RECALLED QUESTIONS (2013-17 ) & PRACTICE 19-45

TEST
There are certain breakthrough moments when you began to think & See the field differently
1. SYLLABUS: JAIIB PAPER 2 ( June 2017)
ACCOUNTING & FINANCE FOR BANKERS
MODULE A – BUSINESS MATHEMATICS AND FINANCE
Calculation of Interest and Annuities : Calculation of Simple Interest & Compound Interest; Calculation of
Equated Monthly Instalments; Fixed and Floating Interest Rates; Calculation of Annuities; Interest Calculation
using Products/Balances; Amortisation of a Debt; Sinking Funds
Calculation of YTM : Debt- Definition, Meaning & Salient Features; Loans; Introduction to Bonds; Terms
associated with Bonds; Cost of Debt Capital; Bond value with semi-annual Interest; Current Yield on Bond;
Calculation of Yield-to- Maturity of Bond; Theorems for Bond Value; Duration of Bond; Properties of Duration;
Bond Price Volatility
Capital Budgeting : Present Value and Discounting; Discounted Technique for Investment Appraisal; Internal
Rate of Return (IRR); Method of Investment Appraisal; NPV and IRR compared; Investment Opportunities with
Capital Rationing; Investment Decision making under condition of uncertainty; Expected NPV Rule; Risk
Adjusted Discount Rate Approach for NPV Determination; Sensitivity Analysis for NPV Determination; Decision
Tree Analysis for NPV Estimation; Payback Methods; ARR.
Depreciation and its Accounting : Depreciation, its types and methods; Comparing Depreciation Methods
Foreign Exchange Arithmetic : Fundamentals of Foreign Exchange; Forex Markets; Direct and
Indirect Quote; Some Basic Exchange Rate Arithmetic – Cross Rate, Chain Rule, Value date, etc.;
Forward Exchange Rates – Forward Points; Arbitrage; Calculating Forward Points; Premium/discount;
etc.
MODULE B – PRINCIPLES OF BOOKKEEPING & ACCOUNTANCY
Definition, Scope and Accounting Standards :Nature and Purpose of Accounting; Historical
Perspectives; Origins of Accounting Principles; Accounting Standards in India and its Definition and
Scope. Generally Accepted Accounting Principles of USA (US GAAP); Transfer Pricing; Overview of
IFRS; Difference between GAAP & IFRS.
Basic Accountancy Procedures :Concepts of Accountancy; Going Concern Entity; Double Entry System;
Principle of Conservatism; Revenue Recognition and Realisation; Accrual and Cash Basis.
Maintenance of Cash/Subsidiary Books and Ledger :Record Keeping Basics; Account Categories; Debit and
Credit Concepts; Accounting and Columnar Accounting Mechanics; Journals; Ledgers; subsidiary books; etc.
Bank Reconciliation Statement : Need for Bank Reconciliation; Causes of Differences; Preparation of Bank
Reconciliation Statement; How to prepare a Bank Reconciliation Statement when Extracts of Cash Book and
Pass Book are given; Adjusting the Cash Book Balance; Advantages of Bank Reconciliation Statement.
Trial Balance, Rectification of Errors and Adjusting & Closing Entries : Meaning of a Trial Balance; Features
and Purpose of a Trial Balance; Types of Trial Balance and Preparation of a Trial Balance; Disagreement of a
Trial Balance; Classification of Errors; Location of Errors; Rectification of Errors; Suspense Account and
Rectification; Rectification of Errors when Books are closed; Adjusting and Closing Entries.
Capital and Revenue Expenditure : Expenditure; Distinction between Capital and Revenue Expenditure;
Deferred Revenue Expenditure; Receipts; General Illustrations.
Bills of Exchange : Types of Instruments of Credit; Term and Due Date of a Bill; Certain Important Terms;
Accounting Entries to be Passed; Accommodation Bill etc.
MODULE C – FINAL ACCOUNTS
Balance Sheet Equation : Balance Sheet Equation; Computation of Balance Sheet Equation.
Preparation of Final Accounts : Preparation of Trading A/C; Profit and Loss A/C; Profit & Loss Appropriation
Account; Balance Sheets
Ratio Analysis : Meaning of Accounting Ratios; Classification of Ratios; Uses of Accounting Ratios; Limitations
of Accounting Ratios; Calculation and interpretation of various Ratios; Different Users and their Use of Ratios.
Final Accounts of Banking Companies
Definition and Functions of a Bank; Requirements of Banking Companies as to Accounts and Audit; Significant
Features of Accounting Systems of Banks; Principal Books of Accounts; Preparation and Presentation of
Financial Statements of
Banks; CMA Format; Accounting Treatment of Specific Items; Preparation of Profit and Loss Account;
Comments on Profit and Loss Account; Important Items of Balance Sheet; Disclosure Requirements of Banks;
Additional Disclosures prescribed by RBI; Disclosures required under BASEL norms.
Company Accounts I & II : Definition and Types of Companies; Distinction between Partnership and Limited
Liability Company; Classes of Share Capital; Issue of Shares; General Illustrations
Non-voting Shares; Form of Balance Sheet; Legal Requirements for Assets; Legal Requirements for Liabilities;
Legal Requirements for Profit & Loss A/c; Preparation of Final Accounts
Accounting in a Computerized Environment : Meaning, Features of and Terms used in Computerized
Accounting; Difference between Computerized and Manual Accounting; Advantages and Disadvantages of
Computerized Accounting; Functions performed by Computerized Accounting Softwares available in the
Market; Computerization – Scope and Experiences in Banking; The Core Banking Components; Information
Security; Internet and World Wide Web – Influences on Banking
MODULE D – BANKING OPERATIONS

Banking Operations & Accounting Functions : Preparation of Vouchers, cash receipt and payment entries,
clearing inward and outward entries, transfer debit and credit entries, what is KYC and what are the different
documents to satisfy KYC, verify KYC and authenticity of documents, operational aspects in regard to opening
of all types of accounts, scrutiny of loan applications/documents, allowing drawals and accounting entries
involved at various stages, operational aspects of CBS environment etc., Back office operations in banks,
handling of unreconciled entries in banks.
2. LATEST CHANGES (2016-17)
(All important Changes have been incorporated since May 2016 to till date which are not available
in My last edition “JAIIB MADE SIMPLE PAPER -2 Dated 16.05.2016 with memory based recalled &
Expected questions.This book will act as supplemental to my 2016 editions)
MODULE B – PRINCIPLES OF BOOKKEEPING & ACCOUNTANCY
INDIAN ACCOUNTING STANDARDS (IND AS)

The Ministry of Corporate Affairs (MCA), Government of India has notified the Companies (Indian Accounting Standards) Rules,
2015. The MCA has outlined the roadmap for implementation of International Financial Reporting Standards (IFRS) converged Indian
Accounting Standards for banks, non-banking financial companies, select All India Term Lending and Refinancing Institutions and
insurance entities. Currently, 39 new Ind ASs have been notified.
˜ The basic objective of Accounting Standards is to remove variations in the treatment of several accounting aspects and to bring about
standardization in presentation. The Accounting Standards intend to harmonize the diverse accounting policies followed in the
preparation and presentation of financial statements by different reporting enterprises so as to facilitate intra-firm and inter-firm
comparison.
˜ The RBI has advised that scheduled commercial banks (excluding RRBs) shall follow the Indian Accounting Standards as notified
under the Companies (Indian Accounting Standards) Rules, 2015, in the following manner:
A) Banks shall comply with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning
from April 1, 2018 onwards, with comparatives for the periods ending March 31, 2018 or thereafter. Ind AS shall be applicable to
both standalone financial statements and consolidated financial statements. “Comparatives” shall mean comparative figures for
the preceding accounting period.
B) Banks shall apply Ind AS only as per the above timelines and shall not be permitted to adopt Ind AS earlier.
˜ The RBI has also advised Banks to take note of the Press Release dated January 18, 2016 issued by the MCA which states that
notwithstanding the roadmap for companies, the holding, subsidiary, joint venture or associate companies of banks shall be required to
prepare Ind AS based financial statements for accounting periods beginning from April 1, 2018 onwards, with comparatives for the
periods ending March 31, 2018 and thereafter.
˜ Ind AS implementation is likely to significantly impact the financial reporting systems and processes and, as such, these changes
need to be planned, managed, tested and executed in advance of the implementation date.
˜ Banks have been advised to set up a Steering Committee headed by an official of the rank of an Executive Director (or equivalent)
comprising members from cross-functional areas of the bank to immediately initiate the implementation process.
˜ The Audit Committee of the Board shall oversee the progress of the Ind AS implementation process and report to the Board at
quarterly intervals.
The critical issues which need to be factored in the Ind AS implementation plan include the following:
a) Ind AS Technical Requirements: Diagnostic analysis of differences between the current accounting framework and Ind AS,
significant accounting policy decisions impacting financials, drafting accounting policies, preparation of disclosures, documentation,
preparation of proforma Ind AS financial statements, timing the changeover to Ind AS, and dry-run of accounting systems and end-to-
end reporting process before the actual conversion.
b) Systems and Processes: Evaluate system changes assessment of processes requiring changes, issues having significant impact
on information systems (including IT systems), and develop / strengthen data capture system, where required.
c) Business Impact: Profit planning and budgeting, taxation, capital planning, and impact on capital adequacy.
d) People: Evaluation of resources: Adequate and fully dedicated internal staff for implementation, comprehensive training strategy
and program.
e) Project Management: Managing the entire process-holistic approach to planning and execution by ensuring that all linkages are
established between accounting, systems, people and business, besides effective communication strategies to stakeholders.
˜ Banks shall assess the impact of the Ind AS implementation on their financial position including the adequacy of capital, taking into
account the Basel III capital requirements and place quarterly progress reports to their Boards. Banks also need to be in preparedness
to submit proforma Ind AS financial statements to the Reserve Bank from the half-year ended September 30, 2016, onwards.
˜ The Reserve Bank shall also take steps to facilitate the implementation process. To begin with, from April 2016, the RBI shall hold
periodic meetings with banks in this regard.
˜ Banks shall disclose in the Annual Report, the strategy for Ind AS implementation, including the progress made in this regard. These
disclosures shall be made from the financial year 2016-17 until implementation.
˜ The Boards of the banks shall have the ultimate responsibility in determining the Ind AS direction and strategy and in overseeing the
development and execution of the Ind AS implementation plan.
˜ The directions contained herein are issued under Section 35A of the Banking Regulation Act, 1949 and banks shall ensure strict
compliance of the same.
APPLICABILITY FOR COMPANIES:
˜The application of Ind AS is based on the listing status and net worth of a Company. Ind AS will first apply to companies with a net
worth equal to or exceeding 500 crore INR beginning 1 April 2016.
˜ This will also require comparative Ind AS information for the period of 1 April 2015 to 31 March 2016. Listed companies as well as
others having a net worth equal to or exceeding 250 crore INR will follow 1 April 2017 onwards.
˜ Ind AS will also apply to subsidiaries, joint ventures, associates as well as holding companies of the entities covered by the roadmap.
NEW ACCOUNTING STANDARDS IMPLEMENTATION: The Ministry of Corporate Affairs notified a roadmap for IndAS implementation in
phases in February 2015 to usher in an era of higher transparency and comparability in financial reporting. As per the phased
implementation plan, the first set of companies with a net-worth of over Rs.500 Crore started the implementation from April1, 2016. The
second phase starting from April1, 2017 will cover all listed companies and unlisted companies with a net-worth of Rs.250 Crore or more.
Its implementation is likely to significantly impact the financial reporting systems and processes.
MCQs ( Ans –Bold)
01 Indian Accounting Standards (Ind AS) shall be implemented by banks from the accounting period :
(a) beginning 1.4.17 (b) beginning 1.4.18 (c) ending 31.3. 18 (d) ending 31.3.19
02 For implementation of new Indian Accounting Standards (Ind A) banks are to set up Steering Committee which is to be headed by: (a)
GM incharge of Accounts (b) Executive Director of the bank (c) Managing Director of the bank (d) Chairman of the Bank
MODULE C – FINAL ACCOUNTS ( Latest Changes )
BASEL
• BASEL III FRAMEWORK ON LIQUIDITY STANDARDS: * The RBI has permitted banks to reckon government securities held by
them up to another 3% of their Net Demand and Time Liabilities (NDTL) under Facility to Avail Liquidity for Liquidity Coverage Ratio
(FALLCR) within the mandatory Statutory Liquidity Ratio (SLR) requirement as Level 1 High Quality Liquid Assets (HQLAs) for the
purpose of computing their Liquidity Coverage Ratio (LCR).
* This is in addition to the assets allowed to banks as the Level 1 HQLAs for the purpose of computing the LCR of banks. Hence, the
total carve-out from SLR available to banks would be 10 per cent of their NDTL.
* For this purpose, banks should continue to value such reckoned government securities within the mandatory SLR requirement
at an amount not greater than their current market value (irrespective of the category of holding the security).
* The Reserve Bank on July 21, 2016 has decided that in addition to previous limits, banks will be permitted to reckon government
securities held by them up to another 1 per cent of their Net Demand and Time Liabilities (NDTL) under Facility to Avail Liquidity for
Liquidity Coverage Ratio (FALLCR) within the mandatory Statutory Liquidity Ratio (SLR) requirement as level 1 High Quality Liquid
Assets (HQLA) for the purpose of computing their Liquidity Coverage Ratio (LCR). Hence, the total carve-out from SLR available to
banks would be 11 per cent of their NDTL.
* For this purpose, banks should continue to value such reckoned government securities within the mandatory SLR requirement at
an amount not greater than their current market value (irrespective of the category of holding the security, that is, Available for
Sale(AFS), Held for Trading (HFT) or Held to Maturity (HTM).
• BASEL III CAPITAL REGULATIONS – REVISION: RBI has decided to align, the current regulations on treatment of these balance
sheet items, for the purpose of regulatory capital, with the BCBS guidelines.
I) TREATMENT OF REVALUATION RESERVES:
Revaluation reserves arising out of change in the carrying amount of a bank’s property consequent upon its revaluation may, at the
discretion of banks, be reckoned as CET1 capital at a discount of 55%, instead of as Tier 2 capital under extant regulations, subject to
following conditions:
a) Bank is able to sell the property readily at its own will and there is no legal impediment in selling the property;
b) The revaluation reserves are shown under Schedule 2: Reserves & Surplus in the Balance Sheet of the bank;
c) Valuations are obtained, from two independent valuers, at least once in every 3 years; where the value of the property has
been substantially impaired by any event, these are to be immediately revalued and appropriately factored into capital
adequacy computations;
II) FOREIGN CURRENCY TRANSLATION RESERVE (FCTR): Banks may, at their discretion, reckon foreign currency translation reserve
arising due to translation of financial statements of their foreign operations in terms of Accounting Standard (AS) 11 as CET1 capital
at a discount of 25% subject to meeting the following conditions:
a) The FCTR are shown under Schedule 2: Reserves & Surplus in the Balance Sheet of the bank;
b) The external auditors of the bank have not expressed a qualified opinion on the FCTR.
III) TREATMENT OF DEFERRED TAX ASSETS (DTAS):
a) Deferred tax assets (DTAs) associated with accumulated losses and other such assets should be deducted in full from CET1 capital.
b) DTAs which relate to timing differences (other than those related to accumulated losses) may, instead of full deduction from CET1
capital, be recognised in the CET1 capital up to 10% of a bank’s CET1 capital, at the discretion of banks.
c) Further, the limited recognition of DTAs as above along with limited recognition of significant investments in the common shares
of unconsolidated financial (i.e. banking, financial and insurance) entities taken together must not exceed 15% of the CET1 capital,
calculated after all regulatory adjustments. However, banks shall ensure that the CET1 capital arrived at after application of 15%
limit should in no case result in recognising any item more than the 10% limit applicable individually.
CAPITAL ADEQUACY FRAMEWORK:
Minimum Capital Requirement 15%
Common Equity Tier 1 6%
Additional Tier I 1.5%
Minimum Tier I capital 7.5%
Tier 2 capital 7.5%
Capital Conservation Buffer Not Applicable
Counter-cyclical capital buffer Not applicable
CET1 at 6% up to March 31, 2019, and 7%
Pre-specified Trigger for conversion of AT1
thereafter
BASEL III CAPITAL REGULATIONS
The Reserve Bank has amended the Master Circular relating to Basel III Capital Regulations - Additional Tier 1 Capital as under:
‘Coupons must be paid out of ‘distributable items’.
In this context, coupon may be paid out of current year profits. However, if current year profits are not sufficient, coupon may be
paid subject to availability of:
i) Profits brought forward from previous years, and/or
ii) Reserves representing appropriation of net profits, including statutory reserves, and excluding share premium, revaluation
reserve, foreign currency translation reserve, investment reserve and reserves created on amalgamation.
The accumulated losses and deferred revenue expenditure, if any, shall be netted off from (i) and (ii) to arrive at the available
balances for payment of coupon.
If the aggregate of:
a) Profits in the current year;
b) Profits brought forward from the previous years, and
c) Permissible reserves as above, excluding statutory reserves, net of accumulated losses and deferred revenue expenditure are
less than the amount of coupon, only then the bank shall make appropriation from the statutory reserves.
In such cases, banks are required to report to the Reserve Bank within 21 days from the date of such appropriation in
compliance with Section 17(2) of the Banking Regulation Act 1949. The prior approval of the Reserve Bank for appropriation of
reserves is not required in this regard.
Payment of coupons on perpetual debt instruments (PDIs) from the reserves is, however, subject to the issuing bank
meeting minimum regulatory requirements for common equity tier 1 (CET1), Tier 1 and Total Capital ratios including the
additional capital requirements for domestic systemically important banks at all times and subject to the restrictions
under the capital buffer frameworks (i.e. capital conservation buffer and counter cyclical capital buffer). In order to meet the
eligibility criteria for perpetual debt instruments, banks must ensure and indicate in their offer documents that they have full
discretion at all times to cancel distributions / payments.
Reporting requirement under Basel III As per Master Circular dated 01.07.15 on Basel III capital regulation, banks can raise
perpetual non-cumulative preference shares (PNCPS) & perpetual debt instruments (PDI) for inclusion in Additional Tier 1 capital.
and debt capital instruments, perpetual cumulative preference shares (PCPS) / redeemable noncumulative preference shares (RNCPS) /
redeemable cumulative preference shares (RCPS) for inclusion in Tier 2 capital. The banks are required to submit a report to RBI,
giving the details of the debt raised, including the terms of the issue with a copy of the offer document soon after the issue is
completed. On a review of the extant instructions, RBI decided (23.06.16) that banks need not submit a copy of the offer document to
RBI, as hitherto. Banks shall report the details of the debt raised as per the prescribed format, to RBI.
Basel III Capital Regulations - Revision
The treatment of certain balance sheet items, as per the extant regulations of RBI on banks’ capital, differs from what is prescribed
by the Basel Committee on Banking Supervision (BCBS). RBI reviewed (on Mar 01, 2016) the position and decided to align the current
regulations with the BCBS guidelines, as under:
Treatment of revaluation reserves : Revaluation reserves arising out of change in the carrying amount of a bank’s property
consequent upon its revaluation may, at the discretion of banks, be reckoned as CET1 capital at a discount of 55%, instead of as Tier
2 capital under extant regulations, subject to meeting the following conditions:
• bank is able to sell the property readily at its own will and there is no legal impediment in selling the property;
• the revaluation reserves are shown under Schedule 2: Reserves & Surplus in the Balance Sheet of the bank;
• revaluations are realistic, in accordance with Indian Accounting Standards.
• valuations are obtained, from two independent valuers, at least once in every 3 years;
• the external auditors of the bank have not expressed a qualified opinion on the revaluation of the property; Treatment of
foreign currency translation reserve (FCTR) : Banks may, at their discretion, reckon foreign currency translation reserve
arising due to translation of financial statements of their foreign operations in terms of Accounting Standard (AS) 11 as CET1
capital at a discount of 25% subject to meeting the following conditions:
• the FCTR are shown under Schedule 2: Reserves & Surplus in the Balance Sheet of the bank;
• the external auditors of the bank have not expressed a qualified opinion on the FCTR. Treatment of deferred tax assets
(DTAs)
i. Deferred tax assets (DTAs) associated with accumulated losses and other such assets should be deducted in full from CET1
capital.
ii. DTAs which relate to timing differences (other than those related to accumulated losses) may, instead of full deduction from
CET1 capital, be recognised in the CET1 capital up to 10% of a bank’s CET1 capital, at the discretion of banks [after the
application of all regulatory adjustments].
iii. Further, the limited recognition of DTAs as at (ii) above along with limited recognition of significant investments in the
common shares of unconsolidated financial (i.e. banking, financial and insurance) entities taken together must not exceed
15% of the CET1 capital, calculated after all regulatory adjustments. Banks shall ensure that the CET1 capital arrived at after
application of 15% limit should in no case result in recognising any item more than the 10% limit applicable individually.
iv. The amount of DTAs which are to be deducted from CET1 capital may be netted with associated deferred tax liabilities
(DTLs) provided that:
• both the DTAs and DTLs relate to taxes levied by the same taxation authority and offsetting is permitted by the relevant
taxation authority;
• the DTLs permitted to be netted against DTAs must exclude amounts that have been netted against the deduction of goodwill,
intangibles and defined benefit pension assets; and
• the DTLs must be allocated on a pro rata basis between DTAs subject to deduction from CET1 capital as at (i) and (ii) above.
(v) The amount of DTAs which is not deducted from CET1 capital (in terms of para (ii) above) will be risk weighted at 250% as in the
case of significant investments in common shares not deducted from bank’s CET1 capital
MODULE D – BANKING OPERATIONS

Compliance to provisions of Master Direction on Know Your Customer (KYC)
RBI observed that strict compliance with KYC provisions is not being ensured in some cases and advised the regulated entities on
15.12.16, as under:
(a) In respect of ‘Small Accounts’, the prescribed limits/conditions shall not be breached and compliance therewith shall be strictly
monitored. If any customer desires to have operations beyond the stipulated limits, the same shall be allowed only after complying with
requirements for opening a normal account including completion of CDD/KYC procedures detailed in Sections 16/17 and provisions of
Section 67 of the Master Direction which include quoting of PAN/Form 60 while opening an account with a bank, NBFC, etc. If any account
is rendered ineligible for being classified as a small account due to credits/balance in the account exceeding the permissible limits,
withdrawals may be allowed within the limit prescribed for small accounts where the limits thereof have not been breached
(b) BSBD Accounts (PMJDY accounts are akin to BSBDAs), which are not KYC compliant accounts, are to be treated as ‘Small
Accounts’ and are subjected to the limitations applicable to such accounts. Hence, for allowing normal operations in such accounts,
the procedures explained above are to be complied with. If any account is rendered ineligible for being classified as a small account
due to credits/balance in the account exceeding the permissible limits, withdrawals may be allowed within the limit prescribed for
small accounts where the limits thereof have not been breached.
(c) In respect of KYC compliant accounts where the required CDD procedure has been complied with, REs shall ensure compliance
regarding quoting of PAN/obtaining of Form 60 for all transactions in terms of I.T.Rule 114 B which includes opening of accounts with
banks, NBFCs, etc. No debit transaction, transfer or otherwise shall be allowed in accounts which do not comply with the above
mentioned requirements. To begin with, this rule shall be strictly applied in accounts where both the thresholds listed below are
reached:
1. balance of rupees five lakh or more; and
2. the total deposits (including credits by electronic or other means) made after November 9, 2016, exceed rupees two lakh.
(ii) Banks’ exposures to a group of connected NBFCs or groups of connected counterparties having NBFCs in the group will be
restricted to 25 percent of their Tier I Capital.
Large exposures rules for global systemically important banks (GSIBs) and domestic systemically important banks (D-SIBs)
1. The LE limit applied to a G-SIB’s exposure to another G-SIB is set at 15% of the eligible capital base. When a bank becomes a G-
SIB, it must apply the 15% exposure limit to another G-SIB within 12 months from the date of becoming G-SIB.
The LE limit of a non-G-SIB bank in India to a G-SIB (including branch) and a non-bank G-SIFI will be 20% of the eligible capital
base. Implementation: All aspects must be implemented in full by March 31, 2019. RBI will review the framework within 2
years.
KYC Directions amendments : On 08.12.16, RBI amended the KYC Master Directions as under :
Risk categorization - 12. (b): Risk categorisation shall be undertaken based on parameters such as customer’s identity, social/ financial status,
nature of business activity, information about the clients’ business and their location etc. While considering customer’s identity, the ability to
confirm identity documents through online or other services offered by issuing authorities may also be factored in.
Proof of address - 15(d) : A customer shall not be required to furnish separate proof of current address, if it is different from the address
recorded in the OVD. In such cases, the RE shall merely obtain a declaration from the customer indicating the address to which all
correspondence will be made by the RE.
Option for One Time Pin (OTP) based e-KYC process for on-boarding of customers Accounts opened in terms of this proviso i.e.,
using OTP based e-KYC, are subject to the following conditions:
• There must be a specific consent from the customer for authentication through OTP;
• the aggregate balance of all the deposit accounts of the customer shall not exceed rupees one lakh (Rs.1 lac);
• the aggregate of all credits in a financial year, in all the deposit taken together, shall not exceed rupees two lakh (Rs.2 lac);
• As regards borrowal accounts, only term loans shall be sanctioned. The aggregate amount of term loans sanctioned shall not exceed
Rs.60000 in a year.
• Accounts, both deposit and borrowal, opened using OTP based e-KYC shall not be allowed for more than one year within which Customer
Due Diligence (CDD) procedure is to be completed. If the CDD procedure is not completed within a year, in respect of deposit accounts,
the same shall be closed immediately. In respect of borrowal accounts no further debits shall be allowed.
A declaration shall be obtained from the customer to the effect that no other account has been opened nor will be opened using OTP based KYC
either with the same RE or with any other RE. Further, while uploading KYC information to CKYCR, REs shall clearly indicate that such accounts are
opened using OTP based e-KYC and other REs shall not open accounts based on the KYC information of accounts opened with OTP based e-KYC
procedure.
• CENTRAL KYC REGISTRY SET UP:
* The Govt. had amended the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, (Rules), for setting up of the
Central KYC Records Registry (CKYCR). The proposed CKYCR would receive, store, safeguard and retrieve the KYC records in digital
form of a client.
* The Govt. has authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) to act
as, and to perform the functions of the Central KYC Records Registry (CKYCR). All Regulated Entities (REs) shall capture KYC
information for sharing with the CKYCR in the manner prescribed for ‘individuals’ and ‘Legal Entities’.
MODIFIED KYC DIRECTIONS:
a) The ‘live run’ of the CKYCR has started from July 15, 2016 in phased manner.
b) In the first phase, SCBs have been asked to upload the KYC data with CERSAI, in respect of new individual accounts opened on or
after July 15, 2016.
c) Regulated Entities (REs) other than SCBs may also participate in the live run of CKYCR from July 15, 2016.
d) Those REs which are not yet ready to join CKYCR process immediately, have been asked to take steps to prepare their systems
for uploading the KYC data in respect of new individual accounts.
MCQ ON KYC & CC
1) The data on detection of counterfeit Indian notes at bank branches & treasuries should be included in the ______ Returns
forwarded to the Reserve Bank Issue Offices: a) Fortnightly b) monthly c) Bi-monthly d) Quarterly
2) The banks should re-align their cash management in such a manner so as to ensure that cash receipts in the denominations of
_____and above are not put into recirculation without the notes being machine processed for authenticity:
a) Rs. 20 b) Rs. 50 c) Rs. 100 d) Rs. 500
3) As per RBI guidelines, penalty at ____ of the notional value of counterfeit notes, in addition to the recovery of loss to the extent
of the notional value of such notes, will be imposed when counterfeit notes are detected in the soiled note remittance of the bank and
in the currency chest balance of a bank during Inspection / Audit by RBI:
a) 50% b) 60% c) 80% d) 100%
4) The responsibility of ensuring the quality and genuineness of cash loaded at _______would be that of the Sponsor Bank:
a) White Label ATM’s b) Brown Label ATM’s c) Both (a) & (b) d) None of these.
5) Data on counterfeit notes detected by all the branches of the bank shall be reported in the prescribed format, on a monthly
basis. A statement showing the details of counterfeit notes detected in the bank branches during the month shall be compiled and
forwarded to the Issue Office of Reserve Bank concerned so as to reach them by ___ of the next month:
a) 5th b) 6th c) 7th d) 8th
6) Under Rule 3 of Prevention of Money Laundering Rules, 2005, Principal Officers of banks are also required to report information
on cash transactions where forged notes have been used as genuine note to The Director, FIU-IND, Financial Intelligence Unit- India,
within _____ working days. A ‘nil’ report may be sent in case no counterfeit has been detected during the month. a) 5 b) 7
c) 10 d) 14
07 Reporting Entities (REs) other than Scheduled Commercial Banks are to upload the KYC data pertaining to all new individual
accounts opened on or after from ___ with Central KYC Records Registry, immediately.
(a) 01.01.17 (b) 01.03.17 (c) 01.04.17 (d) 01.07.17
08 Where a reporting entity provides an option for One Time Pin (OTP) based e-KYC process for on-boarding of customers, the
maximum balance in such accounts can be: (a) Rs.25000 (b) Rs.50000 (c) Rs.1 lac (d) Rs.2 lac
09 Where a reporting entity provides an option for One Time Pin (OTP) based e-KYC process for on-boarding of customers, the
aggregate credit in a financial year, in such accounts can be: (a) Rs.25000 (b) Rs.50000 (c) Rs.1 lac (d) Rs.2 lac
10 Where a reporting entity provides an option for One Time Pin (OTP) based e-KYC process for providing term loan, the amount of
sanctioned term loan can be max ____ per financial year:
(a) Rs.50000 (b) Rs.60000 (c) Rs.75000 (d) Rs. 1 lac
11 Deposit and borrowal account opened using one-time-pin (OTP) based e-KYC shall not be allowed for more than ____ within which
Customer Due Diligence (CDD) procedure is to be completed.
(a) one month (b) one quarter (c) one half-year (d) one year
12 Reporting Entities (REs) are required to preserve the customer account information including preservation of records pertaining to
the identification of the customers and their addresses obtained while opening the account, for at least ____ after the business
relationship is ended. : (a) one year (b) two years (c) three years (d) five years
13 The banks are to maintain, at the Currency Chest level and at link branches level, a Daily Record of Issuances showing the serial
numbers of Mahatma Gandhi (New) Series banknotes in the denominations of Rs.500 and above received from RBI as remittance and
issuance thereof to their own branches, branches of other banks and post offices, branch wise and denomination wise on daily basis.
These records are to be preserved for a period of: (a) one year (b) two years(c) three years (d) five years
14 Government of India has authorised the______, to act as, and to perform the functions of the Central KYC Registry (CKYCR) :.(a)
Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)
(b) Credit Information Bureau India Limited (c) Credit Rating India Limited (d) Central KYC Registry Limited
15 Scheduled Commercial Banks (SCBs) may upload the KYC data with Central KYC Registry, in respect of new individual accounts
opened on or after : (a) 30.06.16 (b) 15.07.16 (c) 31.07.18 (d) 30.09.16
16 As per extant Rules for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), with effect from June 1, 2016 the claims for deaths
which occur during the first ___ days from the date of enrolment will not be paid:
(a) 15 days (b) 30 days (c) 45 days (d) 60 days
17 All Scheduled Commercial Banks (SCBs) are required to invariably upload the KYC data pertaining to all new individual accounts
opened on or after ____ with Central KYC Records Registry, immediately:
(a) 01.01.17 (b) 01.03.17 (c) 01.04.17 (d) 01.07.17
18 Know Your Customer (KYC) guidelines have been issued by RBI:
(a) u/s 35A of Banking Regulation Act 1949 (b) Rule 9 (14) of Prevention of Money Laundering Act
(c) u/s 25 of Payment and Settlement System Act 2007 ( d ) a a n d b bo th
19 Under KYC, in case of a company, the beneficial owner is the natural person, who has a controlling ownership interest or who
exercise control of more than ____ per cent of the shares or capital or profits of the company.
(a) 10% (b) 15% (c) 20% (d) 25%
20 Under KYC, in case of a partnership firm, the beneficial owner is the natural person, who has a controlling ownership
interest or who exercise control of more than ____ per cent of the capital or profits:
(a) 10% (b) 15% (c) 20% (d) 25%
21 Under KYC, in case of unincorporated association or body of individuals, the beneficial owner is the natural person, who has a
controlling ownership interest or who exercise control of more than ____ per cent of the property or capital or profits : (a) 10%
(b) 15% (c) 20% (d) 25%
22 Under KYC rules, which of the following is not an officially valid document for both the purposes namely identity proof and proof of
address, as it does not contain address details (1) Passport, (2) Driving licence, (3) Permanent Account Number (PAN) Card, (4) Voter’s
Identity Card issued by the Election Commission of India, (5) job card issued by NREGA duly signed by an officer of the State
Government (6) letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number.
(a) 3, 5 and 6 only (b) 3 and 6 only ( c ) 3 o n l y (d) none of the above
23 For KYC purpose, where ‘simplified measures’ are applied for verifying the identity of the customers, the utility bill, which is not
more than ____ months old, of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill) shall be
deemed to be OVD: (a) 1 month (b) 2 months (c) 3 months (d) 6 months
24 For the purpose of small account under KYC, which of the following conditions is correctly stated:
(a) aggregate of all credits in a financial year does not exceed Rs.50000
(b) the aggregate of all withdrawals and transfers in a month does not exceed Rs.10000
(c) the balance at any point of time does not exceed Rs.100000 (d) none of the above
25 Common Reporting Standards means reporting standards set for implementation of multilateral agreement signed by India to
automatically exchange information based on Article 6 of the Convention on Mutual Administrative Assistance in Tax Matters
relating to bank a/cs of :
(a) European citizens only (b) US Citizens (c) Citizens of all countries (d) Citizens of countries other than USA
26 Foreign Account Tax Compliance Act (FATCA) inter alia, requires foreign financial institutions to report about financial
accounts held by ____ taxpayers or foreign entities in which ____ taxpayers hold a substantial ownership interest. -- (a)
European citizens only (b ) US taxpayers (c) Citizens of all countries (d) Citizens of countries other than USA
27 A bank which is incorporated in a country where it has no physical presence and is unaffiliated to any regulated financial group, is
called: a Universal Bank b Narrow Bank c Shell Ba nk d Correspondent Bank
28 Which of the following is a key element of KYC policy of a bank, as per RBI directions (1) customer acceptance policy (2)
risk management (3) customer identification procedure (4) monitoring of transactions (5) reporting of transactions (a)
1 to 5 all (b) 1 to 4 only (c) 1 to 3 only (d) 1 and 2 only
29 For risk management under KYC rules of RBI, the customers are categorized into following categories (which one is not
correct) ( a ) h i g h r i s k (b) medium risk ( c ) l o w r i s k (d) nominal risk
Compiled by Sanjay Kumar Trivedy, Divisional Manager, Canara Bank, Govt. Link Cell, Nagpur 10 | P a g e
30 In cases where a customer categorised as ‘low risk’, expresses inability to complete the documentation requirements on
account of any reason that the bank considers to be genuine, the bank shall, at its option, complete the verification of identity
of the customer within a period of ____ months from the date of establishment of the relationship.
(a) 1 month (b) 2 months (c) 3 months (d) 6 months
31 In case an individual customer who does not possess either any of the OVDs or the documents applicable in respect of
simplified procedure and desires to open a bank account: (a) he cannot be allowed the bank account (b) he can open a
small account (c) he can open a basic saving bank deposit account (d) he can open saving bank account without cheque
book and cheque collection facility
32 A small account allowed to be opened by a customer as per KYC procedure can be allowed:
(a) up to 3 months (b) up to 6 months (c) up to one year (d) up to two years
33 Under KYC, a system of periodic review of risk categorisation of accounts, with such periodicity being at least once in ___ shall be
put in place (a) 3 months (b) 6 months (c) one year (d) two years
34 Periodic updation of proof of identity and proof of address of the customer shall be carried out by the banks under KYC at least
once in every ____ years for medium risk customers from the date of opening of account / last verification under KYC:
(a) two years (b) five years (c) eight years (d) ten years
35 Periodic updation of proof of identity and proof of address of the customer shall be carried out by the banks under KYC at
least once in every ___ years for high risk customers from the date of opening of account / last verification under KYC:
36 Periodic updation of proof of identity and proof of address of the customer shall be carried out by the banks under KYC at least
once in every ____ years for low risk customers from the date of opening of account / last verification under KYC:
37 In existing accounts, where the KYC requirement has not been fulfilled by customers, the option of ‘partial freezing (only credit,
no debit)’ shall be exercised by the bank, after giving due notice of
months followed by a reminder for further period of ____, to the customers to comply with KYC requirements.
(a) one month, one month (b) two months, three months (c) three months, three months (d) six months, three months
38 In existing accounts, where the KYC requirement has not been fulfilled by customers, all debits and credit shall be disallowed
after ____ months of use of the option of ‘partial freezing’ :
(a) 1 month (b) 2 months (c) 3 months (d) 6 months
39 Banks shall, at their option, open a ____ bank account of a foreign student on the basis of his/her passport (with visa &
immigration endorsement) bearing the proof of identity and address in the home country together with a photograph and a letter
offering admission from the educational institution in India.
(a) resident saving bank account (b) resident current account
(c) non-resident ordinary account (d) any of the above account
40 Where banks open a bank account of a foreign student, a declaration about the local address shall be obtained within a
period of ____ days of opening the account and the said local address is verified.
(a) 15 days (b) 30 days (c) 60 days (d) six months
41 Where banks open a bank account of a foreign student, pending the verification of local address, a/c shall be operated with a
condition of allowing foreign remittances not exceeding ____ or equivalent into the account and a cap of ____ on aggregate in the
same: (a) USD 500, Rs.25000 (b) USD 10000, Rs.50000 (c) USD 15000, Rs.75000 (d) USD 20000, Rs.1 lac
42 Under KYC, banks are required to maintain all necessary records of transactions between the bank and the customer, both domestic
and international, for at least ____ from the date of transaction;
(a) two years (b) three years (c) five years (d) ten years
43 Under KYC, banks are required to preserve the records pertaining to the identification of the customers and their addresses
obtained while opening the account and during the course of business relationship, for at least ____ years after the business
relationship is ended; (a) 2 years (b) 3 years (c) 5 years (d) 10 years
44 Banks shall furnish to the Director, Financial Intelligence Unit-India (FIU-IND), referred to in Rule 3 of PML (Maintenance of
Records) Rules, the cash transaction report (of large size cash transactions):
(a) on a monthly basis within 7 days (b) on a monthly basis within 10 days
(c) on a monthly basis within 15 days (d) on a monthly basis within 20 days
45 Banks shall furnish to Financial Intelligence Unit-India (FIU-IND) as per Rule 3 of PML (Maintenance of Records) Rules, the periodic
cash transaction report of large size cash transactions of :
(a) single transaction or total monthly transactions of Rs.1 lac and above
(b) single transaction or total monthly transactions of Rs.5 lac and above
(c) single transaction or total monthly transactions of Rs.10 lac and above
(d) single transaction or total monthly transactions of Rs.15 lac and above
46 Banks shall furnish to Financial Intelligence Unit-India (FIU-IND), referred to in Rule 3 of PML (Maintenance of Records) Rules, the
counterfeit currency report: (a) on a monthly basis within 7 days (b) on a monthly basis within 10 days
(c) on a monthly basis within 15 days (d) on a monthly basis within 20 days
47 Banks shall furnish to Financial Intelligence Unit-India (FIU-IND), referred to in Rule 3 of PML (Maintenance of Records) Rules, the
suspicious transaction report: (a) within 7 days (b) within 10 days (c) within 15 days (d) within 20 days
48) All Counterfeit Notes received back from the police authorities/courts may be carefully preserved in the safe custody of the
bank and a record thereof be maintained by the branch concerned. These Counterfeit Notes at branches should be subjected to
verification on a _____ basis by the Officer-in- Charge of the bank office concerned. They should be preserved for a period of
____years from the date of receipt from the police authorities.
a) Half-yearly; 3 b) Yearly; 3 c) Quarterly; 3 d) Bi-monthly; 3
49) As per RBI guidelines, Counterfeit notes, which are the subject matter of litigation in the court of law should be preserved with
the branch concerned for a period of ____ years after conclusion of the court case.
a) 1 year b) 2 years c) 3 years d) 4 years
50) As per RBI guidelines relating to reporting of Currency Chest Transactions, the minimum amount of deposit into/withdrawal
from currency chest will be ______ and thereafter, in multiples of Rs._____.
51) a) 50,000; 10,000 b) 1,00,000; 50,000 c) 1,50,000; 50,000 d) 2,00,000; 1,00,000
52) The coins of denomination of ____, issued from time to time, ceased to be legal tender for payments as well as account with effect
from June 30, 2011: a) 20 Paise and below b) 25 Paise and below c) 50 Paise and belowd) All of these.
53) All coins of denomination of 25 Paise and below should be retained in the (SCDs) of the bank till further advise from Reserve Bank
of India. What does SCD stand for?
a) Small Coin Depots b) Small Currency Depots c) Small Coin Deposits d) Small Currency Deposits
54) The study of counterfeit currency has unearthed that fake Indian currency notes (FICN) worth Rs. _____ crore are infused into the
Indian market every year with agencies only being able to intercept one third of them:
a) Rs. 50 Crore b) Rs. 60 Crore c) Rs. 70 Crore d) Rs. 80 Crore
55) With regards to RBI guidelines relating to Time Limit for Reporting, the currency chests should invariably report all transactions
through ICCOMS on the same day by ______ by uploading data through the Secured Website (SWS) to their respective link offices.
Link offices should invariably report the consolidated position to the Issue Offices latest by ____on the same day. a) 7 PM; 9PM
b) 8 PM; 10PM c) 9 PM; 11PM d) 10 PM;12PM e) 11 PM; 12 PM
56) In the event of delay in reporting currency chest transactions, penal interest will be levied on the amount due from the chest
holding bank for the period of delay which will be calculated on _____basis. However, Reserve Bank may at its discretion grant
appropriate grace period in the matter of levy of penal interest. a) T+0 basis b) T+1 basis c) T+2 basis d) T+3 basis
57) Which of the following points are true with respect to levy of Penal interest on wrong reporting?
a) Penal interest will be levied in respect of all cases of wrong reporting in the same manner till the date of receipt of corrected advice
by Reserve Bank.
b) Penal interest will invariably be levied in all cases of wrong reporting in the Link Office Statements even if the reporting was done
correctly in the chest slips. c) Both of these. d) None of these.
58) As per RBI guidelines, Soiled note remittances to RBI /diversion to other currency chest/s should not be shown as withdrawal by
chest/s / link offices. In case such remittances are wrongly reported as 'withdrawals', a penalty of ______ will be levied irrespective
of the value of remittance and period of such wrong reporting:
a) Rs. 25,000 b) Rs. 35,000 c) Rs.50,000 d) Rs.75,000
59) Penal interest will be levied in all cases where the bank has enjoyed 'ineligible' credit in its current account with Reserve Bank on
account of which of the following reasons pertaining to transactions?
a) Wrong reporting / delayed reporting / non-reporting of transactions
b) Shortages in chest balances / remittances
c) Shortages due to pilferage / frauds
d) Counterfeit banknotes detected in chest balances /
e) Remittances as per the prevailing “scheme of Penalties” f) All of the above.
60) Which type of cash balance is not eligible for inclusion in the Chest balances?
i) Cash held in the custody of joint custodians and 'freely available' to them.
ii) Cash kept for safe custody in sealed covers for whatever reasons.
iii) Cash in trunks/bins under the lock and key of any official/s other than the Joint Custodians or bearing a third lock put by any
official in addition to the two locks of the Joint Custodians: a) All from (i) to (iii) b) (i) & (ii) only, c) (ii) & (iii) only d) (i) & (iii) only
61) Penal interest shall be levied at the rate of ___ over the prevailing Bank Rate for the period of delayed reporting / wrong
reporting/non-reporting / inclusion of ineligible amounts in chest balances: a) 1% b) 2% c) 3% d) 4%
62) Representations made for reconsideration of the Reserve Bank's decision for levy of penal interest for delayed reporting on account
of genuine difficulties faced by chests especially in hilly/remote areas and those affected by natural calamities, etc., may be made to
the Issue Office concerned through the Head / Controlling office of the bank concerned within ___ from date of debit of the bank
concerned: a) A week b) A fortnight c) A month d) Two months
63) What is the Penalty to be imposed on banks for deficiencies in exchange of notes and coins/remittances sent to RBI/operations of
currency chests etc. with respect to shortages in soiled note remittances and currency chest balances for notes in denomination upto
Rs.50? a) Rs. 50 per piece in addition to the loss , b) Rs.25 per piece in addition to the loss
c) Rs. 20 per piece in addition to the loss , d) Rs.10 per piece in addition to the loss
64) What is the penalty to be imposed on banks for deficiencies in exchange of notes and coins/remittances sent to RBI/operations of
currency chests etc. with respect to shortages in soiled note remittances and currency chest balances for notes in denomination of Rs.
Rs.100 & above?
a) Equal to the value of the denomination per piece in addition to the loss, b) Rs. 80 per piece in addition to the loss ,
c) Rs. 75 per piece in addition to the loss , d) Rs. 50 per piece in addition to the loss.
65) In case, mutilated notes detected in soiled note remittances and currency chest balances, the penalty levied shall be _____per
piece irrespective of the denomination. a) Rs. 20 b) Rs. 50c) Rs. 75 d) Rs. 100
66) In case, mutilated notes detected in soiled note remittances and currency chest balances, mutilated notes of 100 pieces and above
per remittance shall be debited immediately and penalty may be levied on reaching a limit of ______ in a cumulative manner. a) 50
pieces b) 70 pieces c) 100 pieces d) 125 pieces
67) In case of non-compliance with operational guidelines by currency chests is detected by RBI officials such as Nonfunctioning of
CCTV; Branch cash/documents kept in strong room; Non-utilization of NSMs for sorting of notes the penalty of Rs. _____ shall be levied
for each irregularity & same shall be enhanced to Rs. _____ in case of repetition.
a) Rs. 2500; Rs. 5,000 b) Rs. 5,000; Rs. 10,000 c) Rs. 10,000; Rs. 15,000 d) Rs. 10,000; Rs. 20,000
68) As per RBI guidelines, appeal against the decision of the competent authority can be made with regards to imposition of penalty for
non-compliance with operational guidelines by the Controlling Office of the currency chest/branch to the Regional Director of the
Regional Office concerned, within _____ from the date of debit, who may decide whether the same can be accepted/ rejected: a) 2
months b) 1 month* c) 15 days d) 1 week
69) All chest branches are required to submit to Issue Offices a _____ statement showing the number of notes adjudicated during
that period: - a) Fortnightly b) Monthly c) Quarterly d) Half Yearly
70) Which of the following points are correct with regards to agreement between RBI and commercial banks relating to acceptance of
coins in exchange of notes?
a) The bank branches should accept coins in exchange of notes.
b) They should accept coins of all denominations which are legal tender under the Indian Coinage Act, 2011 from any member of public
without any restriction and pay the value in notes.
c) They should use Coin counting machines or accept coins by weight for large receipts to facilitate the customers.
d) Only a & b e) All (a), (b) & (c)
ANSWER
1 B 2 C 3 D 4 A 5 C
6 C 7 C 8 C 9 D 10 B
11 D 12 D 13 B 14 A 15 B
16 C 17 A 18 D 19 D 20 B
21 B 22 C 23 B 24 B 25 D
26 B 27 C 28 B 29 D 30 D
31 B 32 C 33 B 34 C 35 A
36 D 37 C 38 D 39 C 40 B
41 B 42 C 43 C 44 C 45 C
46 C 47 A 48 A 49 C 50 B
51 C 52 B 53 A 54 C 55 C
56 A 57 C 58 C 59 F 60 C
61 B 62 C 63 A 64 A 65 B
66 C 67 B 68 B 69 B 70 E
3. SELF ASSESSMENT TEST
TEST YOURSELF -1
1. The promoter of a business is treated as a creditor of the business accordingly which of the following concepts of
accounting? a Entity concept, b Money measurement concept, c Dual concept, d Cost concept
2 A firm debited the amount of wages of Rs.1000 paid on account of installation of equipment, to the wages account.
How it can be rectified?a Debit machinery & credit cash, b Debit cash and credit wages, c Debit machinery & credit
wages d Debit wages and credit cash
3 In the books of a firm, the opening stocks are Rs.2 lac, netpurchased Rs.19 lac, direct expenses Rs.3 lac, closing stock
Rs.4 lac and sales Rs.28 lac. What will be amount of gross profit – aRs.8 lac, b Rs.7 lac, cRs.6 lac, d Rs.5 lac
4 An sum of Rs.10000 has been debited to repairs account wronglyinstead of the machinery account. The total of debit side of
trial balance comes to Rs.199000.What would be the correct total after rectification:
a Rs.2 lac, b Rs.1.80 lac, c Rs.2.09 lac, d There will be no change
5 A firm starts business with a capital of Rs.90000 in cash andpurchases machinery on credit for Rs.10000. The
accounting equation would be as:
a Rs.1 lac = Rs.90000 + 10000, b Rs.10000 = 1 lac – 90000, c Rs.90000 1 lac – 10000 d Rs. 1 lac = 1 lac + 0
6 The closing stock of a firm is nil, the sales Rs. 2.98 lac, theopening stock Rs.0.36 lac, purchases Rs.1.56 lac and cost
ofgoods sold Rs.2.12 lac. What will be the amount of gross profit? a) 0.86 lac b) 0.84 lac c) 0.80 lac d) 0.78 lac
7. A firm has debited Rs.2000 to purchase account though it relatedto office expenses. The net profit of the firm is Rs.60300
presently.What it should be ?a) Rs.62300 b) Rs.58300 c) Rs.60300 d) Rs.64300
8. A machinery has been purchased for Rs.2 lac with expected life of3 years. Its scrap value at the end of 3rd year is
anticipated atRs.20000. What is the amount of depreciation under SLM?
a) Rs.60000 b) Rs.66667 c) Rs.73333 d) Rs.56000
9.A firm purchased machinery on April 01, 2001 for Rs.2 lac and sold it for Rs.1.20 lac on Oct 01, 2003. If depreciation is at
10% and annual closing is March. What is the profit or loss on sale of machinery?
a) Profit Rs.0.30 lac, b) Loss Rs.050 lac, c) Profit Rs.0.50 lac, d) Loss Rs.0.30 lac
10 A firm raised a loan from a nationalized bank. Such loan accountwould be classified under which of the following
accounts? a) Personal account, b) Nominal account, c) Real Account, d) Real tangible account
11 A firm has received advance from one of its customers forpurchase of finished goods. Which of the following it
is ? a) Personal account and an asset, b)Real account and a liability, c) Personal account and a liabilityd) Real account
and an asset
12 Which of the following purposes is served by preparation of trialbalance by a business organisation?
a location of errors of principle, b location of errors of omission, c location of clerical errorsd all the above
13 A company issued capital and Mr. A subscribed 1500 shares of Rs.10 each by paying Rs.2.50 on application and Rs.3 on
allotment but failed to pay the balance amount. What will be the increase in the amount of capital reserve on account of his
non.- payment after forfeiture of shares? a Rs. 6750, bRs. 8250, c Rs. 7750, d Rs. 5550
14 A firm had purchases of Rs.2 lac and sales of Rs.2.50 lac net of returns: The returns inward are R5.0.10 lac and returns
outward Rs.0.15 lac. What would be the amount of gross profit of the firm?a Rs.50000, bRs. 50000, c R s . 4 5 0 0 0 , dNone of
the above
15 The overdraft balance in a bank pass book is Rs.10200. Firm had issued a cheque of Rs.4800 which has not been presented
so far for payment. What would be balance as per cash book of the firm?
a Rs.15000, b Rs.5400, c Rs. 10200, d Rs. 4800
16 Which of the following would be considered as a source of funds for a business firm engaged in manufacturing?
a Increase in an asset, b Increase in liability, c decrease in liability, d none of the above
17 An error has occurred in the real accounts of a firm. Which of the following will be affected by this?
a. Balance sheet, b Profit and loss account, c Profit and loss appropriation account, d all the above
18. The cash book of a firm has been showing an overdraft balance of Rs.12800 but it is observed that a cash deposit of
Rs.1200 has not been credited by the bank in the overdraft account. What will be the balance in the pass book?
a) 11600, b) 14000, c) 10400, d 15h2a0t0
19 is the amount of gross profit when net loss is Rs.2000,operating expenses Rs.12000 and sales Rs.48000?
Rs.12000, b) Rs.11000, c) Rs.10000, d) Rs.9000
20. A company came out with a public issue of 2,50,000 shares of Rs.100 each and receives applications for 3 lac shares. X had
applied for 200 shares in the company. On a pro-rata basis, how many shares will be get?
a) 167 shares, b) 240 shares, c) 200 shares, d) none of the above
2 1 . Cash of Rs.2000 has been received by a firm from Mr. A, the debtor but it has been credited to account of Mr. C, a creditor.
How this entry would be rectified? a) Debit Cash and credit A b) Credit Cash and Debit C c)Credit cash and debit A, d)Debit C
and Credit A
22 Find out the amount of marketing expenses of a firm which have been paid for Rs.20000 for the current year, these are
outstanding for Rs.3000 for the current year, expenses worth Rs.2500 have been incurred for the previous year and an advance
of Rs.1100 has been given for the next year. The firm follows the cash system of accounting:
Rs.23600, b) Rs.24400, c) Rs.28300, d) Rs.20400,
23 The books of a firm reflect that the returns inward have beenadded short by Rs.1980. Presently its gross profit is
Rs.38200.What it should be? a Rs.38200, b Rs.40180, c Rs.38220, d Rs.37640
24 The debit side trial balance of a firm is showing a balance of Rs.619800 but in the discount column of cash book
the discounted given by the firm has been over-added by Rs.200. What should be debit side trial balance ?
a Rs.619600, b Rs.620000, c Rs.620200, d Rs.619400
25 Cash book of a firm has been showing overdraft of Rs.4200 but it is observed that the bank has. debited commission of
Rs.186. The balance as per pass book should be: a Rs.4014, b R s . 4 3 8 6 , c R s . 4 2 0 0 , d None of the above
26 A firm has a dealership for textile machinery. It sells machineryworth Rs.5.50 lac but credits the same to the sales
account. In order to rectify the error, what should be the correct entry?A Debit cash / credit sales, b Debit machinery
I Credit cash, c Debit sales / credit machineryd no adjustment needed
27 A firm earned net profits of Rs.102200. Its manager gets 5% commission after charging such commission. What is the
amount of commission, the manager would receive? a 4 7 7 2 , b 5110, c 4766, d 4760
28 The closing stocks of goods are recorded in which of the followingbooks of a firm?- a.trading & manufacturing account,
b manufacturing account and profit & loss account, ctrading account and balance sheet, d profit & loss account and balance
sheet
29 A firm has incurred substantial expenditure on the marketing of anew product. In the books of the firm, how this would be
classified? a) Revenue expenditure, b) Deferred revenue expenditure capital expenditure, c) pre-paid expenditure
30 A firm incurred Rs.3220 during a year on purchase/use ofstationery. In which of the following, this expenditure
would beclassified: personal account, b) real account, c) nominal account, d) contingent account
31.The liabilities of a business firm are Rs.8240. According to accounting equation, what is the amount of promoter's equity if
the assets are Rs.42630? a) 34390 b) 42630 c) 50870 d) 8240
32 A company issued 1 lac shares of Rs.10 each (payable Rs.4 with application, Rs.2 on allotment and Rs.4 as first and final
call). It received the application money for all the shares but did not get the allotment money on 6000 shares and additionally
allotment money and final call money on 2000 shares. What is the amount of calls in arrears?
Rs.24000, b) Rs.16000, c) Rs.32000, d) Rs.48000
33 A firm sold a machinery for Rs.18000 at the end of 3`d year of its purchase, while its expected useful life was 5 years. If its
original purchase price was Rs.40000 and its scrap value was expected at Rs.4000, what is the profit or loss on sale of the
machinery? A) Profit of Rs.3600, b) Loss of Rs.400, c) Profit of Rs.18000, d) Loss of Rs.2000
34 A company issued fully paid up shares of Rs.10 each at a premium of Rs.2 to the vendor of plant and machinery worth
360000. Whatis the no. of shares that has been allotted to the vendor? A) 36000, b) 18000, c) 30000, d) Cannot
be issued
35 A firm while checking its bank account statement found that bank has credited interest amount to Rs.240 to its current
account. The balance in its pass book was Rs.9000. What should be the balance as per cash book:
a Rs.9000, b Rs.9240, c Rs.8760, d Rs.8520
36 In the trial balance of a company, a sum of Rs.2460 has been appearing as interest accrued but not received. It will be
recorded in
a. rofit and loss account, b trading and manufacturing account, c balance sheet as asset, d balance sheet as a liability
37 A firm has in its books, sundry debtors amounting to Rs.2 lac. The amount of bad and doubtful debts is Rs.16000. What will
be amount of provisions, if the firm is required to make provision @ 5% of the debtors:
a 10000, b 2 6 0 0 0 , c 10800, d 9200,
38 The overdraft balance in the cash book of a firm is Rs.23600. A debtor of the firm deposits directly in the bank an amount of
Rs.3200, which bank credits in the personal account of a partner_ What is the balance as per pass book of the firm? a
26800, b 20400, c 23600, d 30000
39 What is the nature of balance in the overdraft account in the cashbook of a firm and also the pass book?
a credit balance in the cash book and credit balance in the passbook, b) debit balance in the cash book and debit balance
in the pass book c) debit balance in the cash book and credit balance in the pass book d) credit balance in the cash book and
debit balance in the pass book
40 Which of the following can be categorized as a real account in thebooks of a firm?
marketing expenses, b) deferred revenue expenses, c) sundry debtors, d) credit balance in the bank account
41 What is the amount of expenses of doing business (operatingexpenses) when sales are Rs.150000, gross profit
Rs.15000, netloss Rs.4000? a) Rs.18000 b) Rs.17000 c) Rs.19000 d) Rs.16000
42 The preliminary expenses incurred by a company on incorporation and on raising capital are classified as which of the
following? a) Expenditure and debited to profit and loss account, b) fixed assets, c) intangible asset
d fictitious asset
43 What is the amount of sales when merchandise costs Rs.312400, gross profit Rs.42100 and net profit Rs.25400?
Rs.359900, b) Rs.354500, c) Rs.357800, d) Rs.254500
44 Final accounts are prepared from: a subsidiary books, b primary books, c principal accounts, d trial balances
45 Accrued interest not received given in trial balance should be:
a added to interest received account, b transferred to profit and loss account, c made to appear in
balance sheet d none of the above
46 A company declared a dividend of 10% on its paid up share capitalbut failed to account for this transaction in its books.
It will be treated an:
a error of omission, b error of principle, c clerical error, d not required to be accounted for
47 The value of an asset appears in books at the original co s t throughout the period of its existing under which of the
following methods of depreciation?
a straight line method b diminishing value method c depreciation fund method d machine hour rate method
48 Under which of the following methods of accounting, the prepaid expenses or outstanding income is taken into
consideration for determining profit or loss to a business:
a Mercantile System, b Single entry system, c Double entry system, d Cash system
49 Prepaid expenditure is shown as:
a an asset, a liability, c expenditure, d income
50 The profit and loss account is divided into two sections namely:
The trading and manufacturing account, b Profit and loss account, c Both the above, d None of the above
Answers : Test No.1
1 a 2 c 3 a 4 d 5 a
6 a 7 c 8 a 9d 10 a
11 c 12 c 13 b 14 a 15 a
16 b 17 a 18 b 19 c 20 a
21 d 22 a 23 c 24 a 25 b
26 d 27 a 28 c 29 b 30 c
31 a 32a 33a 34c 35 c
36 c 37 a 38 c 39 d 40 b
41 c 42 c 43 b 44 d 45 c
46 a 47 c 48 a 49 a 50 c
TEST YOURSELF -2
1. A firm gives certain goods out of its available stock, at charity to an institute for blind. What will be the journal entry?
a) debit institute credit cash, b) debit sales credit cash, c) debit charity account credit purchases, d) debit purchases
and credit cash
2.The credit side of trial balance of firm is presently showing balance of Rs.401200 but the return outward has been
recorded short by Rs.1200. What will be trial balance after rectification?
a) 402400 b) 400000 c) 403600 , d) 98800
3.A machinery was purchased by a firm for Rs. 4 lac and for the 1St year the depreciation of Rs.80000 was charged on WDV
method. What will the depreciation for 2nd year? a) Rs.64000, b Rs.80000, c) Rs.16000, d ) R s . 6 0 0 0 0
4 As per going concern concept, how the business is viewed ?
a Business is having indefinite life, b Business is having limited life of say 3-4 years, c Business is run with
uncertainty, d Business would run for a very long period
5 A sum of Rs.786 has been entered in the sales book as Rs.678. This would be considered as an error of:
a) Error of principle, b Error of commission, c Error of omission, d Compensating error
6 While making payment of rent to the landlord for the building occupied by a firm, it debited the landlord's account.
What will be the journal entry for rectification?
a debit rent account credit cash, b debit rent account credit landlord's account, c debit cash account and
credit landlord's account, d debit cash and credit rent account
7 A company received 2 lac share applications for public issue atRs.4 per share against its offer of 1 lac shares. Which
account would be debited for the amount and to what extent to record 1=1 entry?
a bank account, Rs.4 lac, b Bank account, Rs. 8 lac, c Share application account Rs.8 lac
d Share application account Rs.4 lac
8 A sum of Rs.2000 on account of sales returns has been debited topurchase account. The debit side of trial balance has been
showing a balance of Rs.398000. What it should be?
a Rs.400000, b Rs.396000, c Rs.398000, d Rs.402000
9 A firm purchased some machinery on April 01, 2002 for Rs.80000and incurred Rs.20000 on its freight and installation.
On Sept 01, 2003, it sold the machinery. The annual closing is March every year. At 20% depredation on SLM basis, what is the
amount of depreciation for the year 2003?
a Rs.10000, b Rs.15000, c Rs.20000, d Rs.25000
10 The goods purchased by a firm are debited to purchase account.Which of the following categories, this account would
be categorized? a Personal account, b Real Account, c Nominal account, d Contingent account
11 What is the basic amount on which the depreciation is chargedunder the Straight Line Method?
a Original cost of the machinery, b Scrap Value, c Written down value, d Original cost or
written down value, whichever is higher
12 A firm purchased goods worth Rs.10 lac and its sales are Rs.12.50lac. It paid inward freight worth Rs.50000 and there
were returnsinward for Rs.50000. What is the amount of net profit?
a) Rs.100000, b) Rs.125000, c) Rs.150000, d) Rs.200000
1 3 A f i rm h ad w ri tte n o f f th e amo u n t o f R s. 2 0 0 0 w h i ch w asrecoverable from A. Now a sum of Rs.500 has been
received fromhim. The journal entry would be:
debit debtor credit cash, b) debit cash credit profit and loss account, c) debit cash credit bad debt recovered account,
d) debit bad debt recovered account and credit cash
4 A firm earned profits worth Rs.40000. Its marketing manager isentitled to 6% commission on such profits. What is net
profit aftercharging such commission? a) 37600 b) 38000 c) 37650, d) 35400
5 When a firm commits a mistake while balancing an account, such mistake is categorized as:
a) error of commission, b) error of principle, c) compensating error, d) error of omission
6 Profit and loss account of a firm, shows profit of Rs.32450 butprovision for doubtful debts @ 8% and for discount
on debtors @ 5% is to be made for sundry debtors of Rs.16000. What will be the net profit after such provisions? - a) 30434,
b) 30686, c) 29874, d) 31022
17 A company came out with a public issue of 200000 shares and received applications for 300000 shares. What will be no. of
shares allotted to a person who has applied for 18000 shares?
a) 18000 shares, b) 15000 shares, c) 12000 shares, d 9000 shares
18 A firm had gross profit of Rs.30000, salaries Rs.10000, rentpayment of Rs.2830 and dividend receipt of Rs.1500.
What would be net profit if 5% commission is also paid to the manager after such commission.
a 17781, b 17839, c 18201, d 18123
19 A firm has undercast the sales book by Rs.1250. Which of the following kinds of error it would be considered? a.
Error of principle, b Error of commission, c Error of omission, d Any of the above
20 A firm purchased machinery worth Rs.1 lac and paid freight forRs.3000, installation charges Rs.5000 and sales tax
Rs.10000. What will be the annual amount depreciation on SLM basis, if the expected useful life of the machinery is 5 years: a
21500, b 22300, c 23200, d 23600
21 A firm sold furniture worth Rs. 400 for cash. The amount will berequired to be credited to which of the following: a
cash account, b sales account, c furniture account, d depreciation account
22 The cost of material of a firm is Rs.624800, gross profit Rs.84200and net profit of Rs.50800. What is the amount of
sales? a Rs.574000, b Rs.709000, c Rs.542000, d Rs A89000
23 A company issues 100000 shares of Rs.10 each and offers discount of Rs.1 per share. What will be amount of paid up capital
in the books of the company?
a Rs.10 lac, Rs.9 lac Rs.11 lac Rs.1 lac
24. A firm earned profits of Rs.30000, 22000, 36000 and Rs.32000during the last 4 years. What will be amount of goodwill
computedfor 3 years' purchase of average profits of 4 years.
a) 90000, b) 95000, c) 100000, d) 120000
25. An SSI unit purchased machinery worth Rs.5 lac and after 5 years expected useful life, its scrap value is estimated at
Rs.30000. Whatwill be the annual depreciation?
a) Rs.92000 b) Rs.94000 c) Rs.95500 d) Rs.96500
26.Fire destroyed stocks wortth Rs.3 lac of a firm and insurance company admitted a claim of Rs.2.50 lac. To which account the
balance amount would be debited:
a) Stock account, b) Insurance receivable account, c) Profit and loss account, d) trading account
27 It is observed from the pass book of the bank account that thebank has credited an amount of Rs.3150 to the
account while a sum of Rs.1430 has been debited on account of bank charges. What would be net effect on the cash book
balance for these transactions?
1720, b 4580, c There will be no change, d none of the above
28 An SSI firm purchased machinery worth Rs.2 lac and for its installation it utilised the services of its labourer and their wages
amounting to Rs.1260 have been debited to wages account. It is :a error of principle, b error of commission, c
compensating error, d error of omission
29 A company had to forfeit 1500 shares of Rs.10 each. Out of these 600 shares are reissued at a discount of Re.1 . What is the
amount transferred to capital reserve, if the company had received Rs.8 per share.
a 11400, b 11520, c 12060, d 12600
30 The sales of a firm are Rs.98000 and gross profit Rs.66000.What is the amount of administrative expenses, if the net
loss Rs.10000
a Rs.56000, b Rs.76000, c Rs.88000, d Rs.32000
31 A company decides to forfeit 200 shares of Rs.10 each for which itdid not receive the final call money of Rs.3 per share.
What is the amount of share capital that would be forfeited?
a Rs.600, b Rs.1400, c Rs.2000, d all the above
32 Amount of net loss of a firm is Rs.4000, administrative expenses Rs.24000 and sales Rs.96000. Find out the gross profit if
any:
a Rs.20000, b Rs.92000, c Rs.68000, d Rs.76000
33 A sum of Rs.1380 paid by a firm on account of wages has been recorded as Rs.1920. The debit side of trial balance is
showing a balance of Rs.163080. What it should be ?a 1 6 2 3 2 0 , b 164220, c 162540,
d 161420
34 A firm has paid insurance premium of Rs.22000 but outstanding premium payment is Rs.11000. It has insurance prepaid
opening balance of Rs. 3400 and insurance paid for previous year Rs.3200. How much amount would be charged to profit
and loss account, in case the company follows mercantile system ofaccounting?
a) Rs.26400 b) Rs.38000 c) Rs.34800 d) Rs.35480
35. A firm has not received some income which otherwise has becomedue for receipt. Where it should be shown?
a) Asset in the Balance sheet, b) Profit and loss account, c) Liability in the balance sheet, d) a and b
36 Some rent is due but not paid by the firm, in the balance sheet. A) It will show nil balance, b) It will show debit
balance, c) It will show credit balance, d) none of the above
37 A firm had purchased machinery worth Rs.2 lac and incurred Rs.3000 on its freight. Later on during the year, the firm
incurredRs.10000 on its repair also. What will be the book value?
a Rs.2 lac, b Rs.2.03 lac, c Rs.2.13 lac, d Rs.1.93 lac
38 The pass book of current account of a firm has been showing a balance of Rs.1 lac. It is observed that bank had paid fee of
Rs.3100 directly to the debit of account of the firm as per a standing instruction. What will be balance as per cash book? - a.
Rs.96900, b Rs.97000, c Rs.103100, d Rs.102400
39 In the pass book of the bank account of a firm, the balance isRs.10000 and it is observed that the bank has credited
Rs.40 as interest. With a view to reconcile the pass book and cash book, the said amount:
a will be added to the cash book balance, b will be deducted from the pass book balance
c will be added to the pass book, d a or b
40 A firm owes Rs.1000 to a supplier of goods which has beenomitted to be recorded. The credit side of the trial
balance should be Rs.191000. What it is presently? a.190000, b 192000, c 194300, d 193400
41 A company issued 2 lac shares of Rs.10 each and chargedpremium of Rs.4. What will be the amount of paid up
capital of the company?- a Rs.20 lac, b Rs.24 lac, c Rs.16 lac, d Rs.2 lac
42 In the above problem what will be amount of tangible net worth I company had incurred Rs.100000 as issue
expenses? a Rs.28lac, b Rs.20 lac, c Rs.27 lac, d Rs.19 lac
43 A company comes out with a public issue of 10000 shares of.Rs.10 each payable as Rs.3 with application, Rs.3 on allotment
and Rs.4 as final call. Company has received application money from all but allotment money has not been received for 500 shares. What is the
amount of paid up capital. a Rs.60000, b R s . 3 0 0 0 0 , c Rs.100000, d Rs.30000
44 What is the amount of subscribed capital in the above problem ?
a R s . 6 0 0 0 0 , b Rs.80000, c Rs.1 lac, d Rs.70000
45 In the above problem, what is the amount of calls in arrears ? aRs.500, b Rs.5000, c Rs.1500, d Rs.2500
46 A firm had purchases of Rs.160000, direct expenses Rs.20000,Sales of Rs.3 lac and other expenses of Rs.30000. The
depreciation on machinery worth Rs.48000 is chargeable at 20% SLM for the year. What will be net profit? a. 81200 b
79800, c 80400 d 85000
47. What kind of account is a trial balance?a) Real account, b) Personal account, c) Nominal account, d) List of balances in
various accounts
48 Which of the following kinds of accounts is a goodwill account?
a) Personal account b) Real account, c) Nominal account d) Trial balance
49.The total of credit side of trial balance is showing a balance ofRs.88000 and the sales book is undercast by Rs.2000.
Whatshould be the actual balance after rectification of the error?
a) Rs.86000 b) Rs.88000 c) Rs.90000, d ) None of the above
50. Opening stocks of a firm are Rs.17000, indirect expenses Rs.10400, purchases Rs.61400 and closing stock Rs.18000. If the
direct expenses are Rs.9600, what will be the amount of cost of goods sold?
75000 b 70000, c. 68000 d 65000
Answer
1 C 2 A 3 A 4 A 5 B 6 B 7 B 8 C 9 A 10 B
1
11 A 12 C 13 C 14 A 15 A 16 A 17 C 18 B 19 B 20 D
21 C 22 B 23 A 24 A 25 B 26 C 27 A 28 A 29 A 30 B
31 C 32 A 33 C 34 A 35 D 36 C 37 B 38 A 39 DS 40 A
41 A 42 C 43 A 44 C 45 C 46 C 47 D 48 B 49 C 50 D
4. MEMORY BASED RECALLED QUESTIONS: 2013-17
PRACTICE SET -1 (2016-17)
1) Freight paid on a Machine for bringing it to factory is an:
a) Capital expenditure b) Revenue expenditure c) Deferred expenditure d) none of the above
2) The holding period for which interest rate risk disappears is known as:
a) Yield of Maturity b) Duration of bond c) Intrinsic value d) N.P.V
3) When the exchange of currencies takes place on the next working day, it is known as____ rate:
a) SPOT b) TOM c) Forward rate d) Premium rate
4) Under the Straight line method of charging depreciation, the rate and amount ______:
a) Increases every year b) Decreases every year c) Is constant every year d) None of the above
5) Which of the following are Deferred Revenue expenditure:
a) Heavy advertising expenditure for launching a new product
b) Expenditure for the issue or raising loan or capital
c) Expenditure for the formation or registration of a company d) All of the above
6) Bill of exchange is _____ instrument: a) Unconditional b) Negotiable c) Conditional d) Prepaid
7) Company purchased assets of Rs.1,80,000 payable in fully paid share of Rs.100 each issued at discount of 10%. What will be
number of shares: a) 1000 shares b) 2000 shares c) 3000 shares d) 500 shares
8) Left side of asset account is for: a) Recording decrease b) Recording increase c) Recording depreciation d) Recording sale
9) Which of the following have a credit balance? a) A/c payable b) A/c receivable c) Current a/c d) Discount a/c
10) Bill receivable endorsed is debited to: a) Debtor a/c b) Creditor a/c c) Bill payable a/c d) Bill receivable a/c
11) Value of asset can become zero in method: a) Straight line b) Written down c) Sinking fund d) Insurance policy
12) The amount realised from sale of obsolete asset is:
a) Scrap value b) Residual value c) Both a & b d) Neither a nor b
13) Scrap value of asset is deducted from original cost while calculating depreciation under:
a) Straight Line Method b) Reducing Balance Method c) Sinking Fund Method. d) Written Down value
14) If there is no liability then: a) Asset > Capital b) Asset < Capital c) Asset = Capital d) None
15) Purchase a/c is credited for: a) Goods withdrawn b) Goods lost c) Good purchased d) Both a & b
16) What is true about the Duration of a Bond?
a) Duration is expressed in terms of years.
b) Duration of a coupon-paying bond is always less than its maturity. C) In Zero-coupon bonds where periodical interests are
not paid out, duration will be equal to its maturity d) All of the above
17) Credit side of cash book (Triple column) consists of: a) Discount column b) Bank column c) Cash columnd) All above
18) Preference shareholder have a right of: a) Dividend b) Interest c) Claim d) Commission
19) Debentures are _______ :
a) Normal types of bonds issued by Corporates
b) It is unsecured debt, backed only by the name and goodwill of the Company.
c) In the event of the liquidation of the corporation, holders of debentures are repaid before stockholders, but after other
secured creditors. d) All of the above
20) If the Coupon rate & the Discount rate (Market based) or the expected rates of return are same:
a) The bond will be trading at par
b) Bond will trade at a discount
c) Bond will trade at a premium d) Coupon rate & discount rate have no connection with each other
21) Bill of exchange cannot be_:a) Retained till maturity b) Discounted with bank c) Endorsed to anybody d) None of these
22) Clerical error includes: a) Error of omission b) Principal error c) Error of commission d) Both a & c
23) Revenue expenditure are: a) Day to day expenditure b) Monthly c) Yearly expenditure d) Half yearly
24) If BRS is prepared with balance of cash book, it will show _____ per pass book.
a) Balance b) Overdraft c) Both a&b d) Either a or b
25) If a bill made on 25th May matures after 4 months, then maturity date will be:
a) 26th Sept. b) 25th Sept. c) 28th Sept. d) 1st Sept.
26) Double entry system is based on:
a) Somebody loss = to some body gain
b) Every debit equal to every credit c) What comes in is = to what goes out d) All of the above
27) Capital at end is Rs.21,500, drawings are Rs.4,000 and profits given to partner is equal to Rs 6,000 then opening capital is
equal to: a) 14,000 b) 19,500 c) 20,000 d) 14,500
28) Balance sheet contains only Personal & Real accounts: a) True b) False c) None of above d) a and b
29) Goods lost by fire should be credited to: a) Purchase a/c b) Goods lost by fire a/c c) Sales a/c d) No entry
30) Internal Rate of Return (IRR) method is also known as:
a) Net present value method
b) Time adjusted rate of return method
c) Payback period method d) Rate of return method
31) If NPV<0, the project is: a) Accepted b) Rejected c) Partly accepted d) Partly rejected
32) Debit Note is given in respect of : a) Sales Return b) Purchase Return c) Sales d) Purchases
33) Trade discount is:
a) Deducted from cash sales
b) Deducted from credit sales
c) Deducted from credit sales or purchase d) Shown in trading a/c
34) Share Premium is a: a) Capital Receipt b) Revenue Receipt c) Revenue Income d) Investor Receipt
35) Cost of Goods sold is equal to:
a)Opening stock + Purchase + Direct expenses – Closing stock b)Closing stock – Purchase + Opening stock
c) Closing stock – Opening stock + Purchases. d)None of the above
36) Total of Sales book shows: a) Total sales made b) Total credit sales made c) Total cash sales made d) None of these
37) If Purchases are made for Rs.2,000 and both cash discount and trade discount is equal to 10%, then Net purchases will be:
a) Rs.1,620 b) Rs.1,700 c) Rs.1,500 d) Rs.1,440
38) Company received Rs.5 per share on application & allotment except on 1,000 shares. The Call in arrears are equal to:
a) Rs.5,000 b) Rs.10,000 c) Rs.4,500 d) Rs. 4,000
39) Following figures are extracted from the Balance sheet of Y Ltd. as on 31st December:
Stock 25,000, Debtors 10,000, Cash at Bank is 5000, Creditors 8,000, Bills payable 2,000, Provisions for taxes 5,000,Bank
overdraft is 5,000. Calculate the current Ratio: a) 2:1 b) 2:4 c) 3:2 d) 5:1
40) Liquid assets includes: a) Only Cash b) Cash, Debtors c) Closing Stock d) Cash, Bank, Debtors
41) If the total assets of the business are Rs.1,30,000 and capital is Rs. 80,000. Calculate creditors.
a) 50,000 b) 2,10,000 c) 65,000 d) 1,60,000
42) Personal accounts are related to :
a) Assets and Liabilities b) Expenses, losses and incomes c) Debtors, creditors etc d) All of these.
43) Discount on issue of shares is shown under: a) Assets b) Investment c) Fictitious Assets d) Liability
44) Loss on issue of Debentures is shown in:
a) Current asset b) Reserve & surplus account Capital d) Miscellaneous expenditure
45) From the following information taking a period of 365 days compute creditor’s turnover ratio and Average payment
period Total purchases 3,00,000, Cash purchases 30,000, Purchase return 51,000, Creditors at the end 1,05,000, Bills
payable at the end 60,000:
a) 1.327 times, 275 days b) 11.342 times, 300 days c) 12.327 times, 324 days d) 1.44 times, 435 days
46) Which one of the following is true?
a) Prepaid account is a Nominal Account b) Depreciation Account is a Nominal Account c) Both (a) and (b) above d)
None 47) Ram paid rent of Rs.70 but credited to rent a/c as Rs.170. In rectifying the entry, rent a/c will be:
a) Debited with 240 b) Debited with 100 c) Credited with 100 d) Credited with 240
48) Calculate stock turnover ratio from the following information: Opening stock 58,000 Purchases 4,84,000 Sales 6, 40,000
Gross profit ratio 25% on sales: a) 6 Times b) 8 Times c) 10 Times d) 7 Times
49) Out of the following, Password Management policy includes:
a) Password Usage b) Password Construction c) Password protection d) All of these
50) Purchase: Rs.80,000, Office expenses: Rs.15,000, Direct expenses: Rs.10,000, Sales: Rs.1,50,000: Office furniture: Rs.
24,000, Find Net Profit. a) Rs. 60,000 b) Rs.45,000 c) Rs. 21,000 d) Rs.29,000
51) Present value is always at ______ when compared with Future Value. a) Par b) Discount c) Premium d) Any of these
52) Journal is a book of: a) Prime record b) Final book c) Analysis book d) Ledger A/c
53) Ram’s a/c is debited with Rs.500 instead of debit of Mohan a/c. It is a:
a) Commission Error b) Principal error c) Compensating error d) No error
54) Computers are basically classified as:
a) Analogue computers and Digital computers
b) Major and Minor computers c) Bit and Byte computers d) None of these
55) Withdrawal of cash by owner for personal use is credited to:
a) Cash Account b) Drawings Account c) Capital Account d) Properitor Account
56) If there is Public holiday on due date of bill .Than when will be the bill payable:
a) On business day b) Preceeding business day c) More than the grace days d) None of these
57) Accounting concepts are:
a) Methods of presenting financial accounts
b) Broad assumptions c) Bases selected to prepare a specific set of accounts d) None of these
58) Which is an Intangible Asset?- a) Patents b) Building c) Preliminary Expense d) Goodwill e) Both a and d
59) _______ capital is the amount with which company is formed: a) Subscribed b) Authorized c) Called up d) Paid up
60) A company in which liability of members is fixed to certain amount is known as :
a) Company limited by Guarantee b) Issue of shares at a Premium c) Issue of shares at a Discount d) Forfeiture of shares
61) Capital comes under which schedule of Balance sheet: a) 2 b) 1 c) 3 d) 5
6 2 ) Reserves & Surplus come under which schedule of Balance Sheet:
a) Schedule 2 b) Schedule 3 c) Schedule 4 d) Schedule 5
6 3 ) The credit balance of bank (overdraft) is: a) Asset b) Liability c) Revenue d) Expense
6 4 ) If cost price of the machine is 80,000. Rate of Depreciation is 10%. Find the depreciated value after 4 years by reducing
value method: a) 80,000X.9X.9 b) 80,000X.81X.81 c) 80,000X.9X.9X.9 d) 80,000X.88X.9
6 5 ) If the cost of the car is 3,00,000. Depreciation is 10% on W.D.V. Find Book Value of car after 5 years:
a) 21600 b) 218700 c) 22500 d) 30,000
6 6 ) If the cost of equipment is Rs.50,000, Salvage value is Rs.10,000 and its useful life is 6 years. Compute depreciation
amount in the 4th year by SYD Method: a) 5700 b) 5714.28 c) 6500 d) 6200
6 7 ) What is the discounting factor for 3 year if rate is 10%: a) .75 b) .46 c) .909 d) .41
68) Time value of money is relevant in:
a) Accounting rate of return method b) Pay back period method c) c) Internal rate of return method d) All of the
above
69) Total of Rs.1400 is forfeited and only Rs.1000 was reissued on forfeiture share a/c. So _______:
a) 400 is transferred to capital reserve
b) 400 is transferred to general reserve c) 400 is transferred to share premium d) 400 is transferred to shown in asset side
70) What will be the cross currency rate for Euro/GBP if following are the rates: US$ / Euro € 0.7798 ; US$ / GBP £ 0.6577
a) 0.8434 b) 1.1856 c) 0.1528 d) 0.1221
71) If Sales are of Rs. 2,00,000 and Gross profit is @ 25%, then gross profit will be:
a) Rs.80,000 b) Rs.50,000 c) Rs.40,000 d) Rs.82,000
72) Rebate is a expense for drawer, so it is a ______: a) Nominal a/c b) Real a/c c) Personal a/c d) None
73) When payment is required at the beginning of each period, it is :
a) Ordinary annuity b) Future Value c) Annuity due d) Present value
74) Company purchased assets of Rs.1,80,000 payable in fully paid share of Rs.100 each issued at discount of 10%. What will
be no of shares? a) 1000 shares b) 2000 shares c) 3000 shares d) 500 shares
75) Unfavaourable Bank Balance means:
a) Credit Balance in the Cash Book b) Credit Balance in the Pass Book
c) Debit Balance in the Cash Book d) Favourable Balance in the Cash Book
76) If NPV<0, the project is: a) Accepted b) Rejected c) Partly accepted d) partly rejected
77) Rs.15,000 received from Nalini is credited in the account of Meetu. It is an error of :
a) Principle b) Omission c) Commission d) Compensatory
78) Duality principle is also known as:
a) Historical cost principle b) Dual Aspect principle c) Revenue Recognition principle d) Matching principle
79) Expenditure incurred on shifting the stock to a new site is:
a) Capital expenditure b) Revenue expenditure c) Deferred revenue expenditure d) Deferred capital expenditure
80) Entry of Rs.1,000 wrongly posted to wages a/c instead of building a/c:
a) Error of principle b) Error of omission c) Error of commission d) All above
81) Sales book was overcast by Rs. 2,000. If the total of credit side of trial balance is showing Rs. 92,000, what should be
the actual balance? -- a) 90,000 b) 92,000 c) 94,000 d) 88,000
82) Stock in trade doesn’t include:
a) Goods in process of manufacture b) Raw materials c) Items held as fixed assets d) Finished goods
83) A reduction in the amount of assets or increases in the amount of liabilities will means ______ in the amount of capital:
a) Increased b) Reduction c) Constant d) None of these
84) EOD operations starts around ___ at the Central data centre: a) 11PM b) 10pm c) 10AM d) 2AM
85) Describe the nature of purchase a/c: a) Real a/c b) Personal a/c c) Artificial personal a/c d) Nominal a/c
86) What is the time frame stipulated by RBI for updation of KYC data in respect of high/medium/low risk customers?
a) 2/5/7 b) 2/5/10 c) 2/8/10 d) 5/8/10
87) Cheque issued but not presented is ______ in Bank Reconciliation statement, when started with overdraft as per cash
book: a) Added b) Subtracted c) Multiply d) Divide
88) Profit before Interest and Tax /Capital employed X100 is the formulae for:
a) Return on Investment b) Gross profit ratio c) Return on equity d) Net profit ratio
89) A person deals in purchase and sale of machinery. He sold one machinery for Rs. 25,000/- and it has been credited to
sales a/c. What should be the correct entry?
a) Dr. sales credit machinery b) Dr. cash credit machinery c) Dr. sales credit machinery d) None of above
90) The full form of GLIF is ________ :
a) General ledger Interface folio b) General ledger Interface file c) Group ledger inter facts d) Group ledger inter faces
91) If Net profit is Rs.50,100 and a sales manager is to provide commission of 5% after charging such commission, what
would be his amount of commission? a) 2386 b) 2505 c) Rs. 2610 d) None of these
92) Bill is made payable to: a) Drawer b) Endorsee c) Payee d) All the above
93) Rs.550 is posted to Depreciation Account as depreciation on furniture but was not posted to furniture account. If the total
of Debit side of Trial balance is Rs.1,31,000, what it should be after rectification:
a) 1,31,000 b) 1,29,900 c) 1,31,550 d) 1,30,450
94) A endorsed a bill drawn on B for Rs. 4,000 in favour of C. On the due date the bill is honoured by B. Which account will
be debited by B in his books? a) Bills Payable Account b) C\'s Account c) A's Account d) Bills Receivable
95) Profit & Loss a/c shows position of firm: a) On particular day b) Of Accounting period c) Gross profits d) Only a/cs
96) When the entry for sale of goods worth Rs.2500 is recorded Rs.250 in the books of a firm, what kind of error it is?
a Compensating error, b Error of principle, c Error of commission, d Error of omission
97) 2 Mr. X applied for 500 shares of a company and was allotted 300
shares. The application money was Rs.3 per share but face valui. of Rs.10. To allot the shares, the share application account
wouic be debited for a 1500, b 5000, c 3000, d 900
98) 3 As per the dual concept of accounting, the transactions arcrecorded on the basis of:
a. double entry system, b cash system, c mercantile system, d single entry system
99) What is recorded in journal proper?
a all transactions, b transactions that are not recorded elsewhere, c transactions through a bank account
d transactions where error has taken place
100) The opening balance of a liability account will always show:
a a debit balance, b a credit balance, c either a debit or a credit balance, d overdraft balance
101) A firm failed to charge depreciationrectification of this error would result in:
a increase in loss, b increase in profit, c reduction in profit, d a and c
102) The dissolution expenses have been paid by a partner of a firm.These would be transferred to:
a) bank account, b) cash account, c) capital account of the partner, d) any of the above
103) Which of the following will be treated as a correct accountingequation:
a) Assets = capital + liabilities, b) Assets = liabilities, c) Liabilities = Capital + assets, d) Assets = equity – liabilities
104) Income received in advance is written on the liability side of thebalance sheet:
a) true, b) false, c) incomplete statement, d) none of the above
105) When ever a company forfeits the share, the amount already received is transferred to which of the following accounts:
a) Paid up capital, b) Surplus of profit and loss, c) General reserve, d) Capital reserve
106.A company issues 6000 shares of Rs.10 each and Rs.6 only have been called and received so far. What is the amount
of paid up capital? a) Rs.30000 b) Rs.36000 c) Rs.60000 d) Rs.72000
107.The rule 'debit what comes is' is applicable in case of which of the following: a. payment of salary to an employee, b)
sale of goods on credit to another firm, c) purchase of vehicle for use in the business, d) none of the above
108. In the terminology of books being maintained by a business firm, the term principal books refers to:
cash book, b) journals, c) ledgers, d) all the above,
109.When discount is allowed to a debtor on prompt payment or otherwise, in the cash book it is recorded
on: a) credit side of discount column, b) debit side of discount column, c) debit side of bank column, d)
credit side of bank column
110. What is the amount of net profit when merchandise costs Rs.21650, expenses of doing business Rs.480 and sales
Rs.24900? a) Rs.2770, b) R s . 3 2 5 0 , c) Rs.4030, d) Rs.2670
111. From the trial balance, the wages are transferred to which of the following accounts:
a Profit and loss account, b trading account, c wages to profit and loss account,
d salaries to trading & manufacturing account
112. A firm had made payment of wages of Rs.3000 to one of its staff members which have been debited to his personal
account. This is an : a error of omission, b error of commission, c error of principle, d compensating error
113. In the above problem, the rectification of the error can be done by passing the following journal entry:
a debit wages and credit cash account, b debit cash and credit personal account of the staff member, c
debit wages and credit personal account of the staff member d debit personal account and credit cash
114. A firm purchased machinery worth Rs.1.80 lac and it incurred Rs.20000 on its installation and freight. Its scrap value
at the end of 5th year is expected at Rs.10000. What will be the amount of depreciation on SLM basis for the 5th year? a
Rs.40000, b Rs.35000, c Rs.38000, d Rs.36000
115. A company had forfeited 1000 shares with face value of Rs.10 each on which it had received Rs.4 as application
money. The shares have been re-issued at a premium of Rs. 1. What is the total amount that would be credited to capital
reserve including premium? a Rs.1000, b Rs.4000, c Rs.5000, d Rs.10000
116. When capital is debited in double entry system it is done by way of: a credit to capital account,
b debit to capital account, c credit to drawings account, d debit to capital and drawings account
117. A company comes out with a public issue and decides to receive the proceeds as application money, allotment, 1st call and
2nd call. What will be the minimum time gap for calling the amount of 15tand 2nd call ?
a No time gap is mandatory, b time gap of 6 months, c time gap of 3 months, d time gap of 1 month
118 Which of the following is the most appropriate formula for workingout the amount of cost of sales:
a opening stocks — purchase — direct expenses + closing stock
b opening stocks + purchase direct expenses — closing stock
c opening stocks + purchase + direct expenses — closing stock
d opening stocks + purchase + direct expenses + closing stock
119. A company issues 6000 shares of Rs.10 each and Rs.6 only have been called and received so far. What is the amount of
subscribed capital? - a Rs.60000, b Rs.36000, c Rs.96000, d Rs.16000
120 Minor repairs are carried to building during the last one year. Theexpenses would be debited to:
a cash account, b creditors' account, c repair account, d building account
ANSWERS
Q A Q A Q A Q A Q A Q A Q A
1 A 2 B 3 B 4 C 5 D 6 B 7 B
8 B 9 A 10 B 11 A 12 C 13 A 14 C
15 D 16 D 17 D 18 A 19 D 20 A 21 D
22 D 23 A 24 D 25 C 26 D 27 B 28 A
29 A 30 B 31 B 32 B 33 C 34 A 35 A
36 B 37 A 38 A 39 A 40 D 41 A 42 C
43 C 44 D 45 A 46 B 47 A 48 B 49 D
50 B 51 B 52 A 53 A 54 A 55 A 56 B
57 B 58 E 59 B 60 A 61 B 62 A 63 B
64 B 65 B 66 B 67 A 68 C 69 A 70 A
71 B 72 A 73 C 74 B 75 A 76 B 77 C
78 B 79 B 80 A 81 A 82 C 83 B 84 B
85 A 86 C 87 B 88 A 89 D 90 B 91 A
92 D 93 D 94 A 95 B 96 C 97 D 98 A
99 A 100 B 101 C 102 C 103 A 104 A 105 D
106 B 107 C 108 C 109 B 110 A 111 B 112 C
113 C 114 C 115 C 116 B 117 D 118 C 119 A
120 C
PRACTICE SET -2 ( 2015-16)

1) Which of the following equation is true:
a) Assets=Capital +Liabilities b) Assets- Capital=Liabilities c) Assets-Liabilities=Capital d) All of the above
2) The purpose of accommodation bill is:
a) To facilitate trade transaction
b) To finance actual purchase or sale of goods
c) To provide financial help to the parties without consideration d) none of these
3) Entry in the books of Drawer, when bill is sent to the Bank for collection:
a) Bank for Bill Collection A/c Dr To Bills Receivable b) Bills Receivable A/c Dr To
Bank
b) Bank A/c Dr To Bills Payable d) Cash A/c Dr To Bills Receivable
4) Bond Price and YTM are
a) Inversely related to each other b) Directly proportional to each other c) Absolutely the same d) Not related to each other
5) Credit purchases are calculated by preparing:
a) Debtors account b) Creditors account c) Bills Receivable account d) Bills payable account
6) If Current ratio is 2:1, Quick ratio is 1:1 and the current assets 120,000. Compute Liquid assets and the Current Liabilities:
a) 60,00 b) 60,000, c) 67,000, 60,000 d) 80,000, 54,000
7)Calculate Stock Turnover ratio from the following information: Opening stock 58,000 Purchases 4,84,000 Sales 6,40,000
Gross profit ratio 25% on Sales: a) 6 Times b) 8 Times c) 10 Times d) 7 Times
8)In Diminishing Value Method, depreciation is calculated:
a) Original cost b) Diminished Value c) Cost Price d) Opening Value
9)If the total assets of the business are Rs. 1,30,000 and Capital is Rs. 80,000, calculate creditors:
a) 50,000 b) 2,10,000 c) 65,000 d) 1,60,000
10) Personal accounts are related to :
a) Assets and Liabilities b) Expenses, losses and incomes c) Debtors, creditors etc d) All of these.
11) If Purchases are made for Rs.2,000 and both cash discount and trade discount is equal to 10%, then Net purchases will
be: a) Rs. 1,620 b) Rs. 1,700 c) Rs. 1,500 d) Rs. 1,440
12) If Current ratio is 2:1, Quick ratio is 1:1 and the current assets 120,000. Compute Liquid assets and the current liabilities:
a) 60,00 b) 60,000, c) 67,000, 60,000 d) 80,000, 54,00
13) Purchase: Rs. 80,000, Office expenses: Rs.15,000, Direct expenses: Rs.10,000, Sales: Rs.1,50,000: Office furniture: Rs.
24,000, Find Net Profit: a) Rs. 60,000 b) Rs. 45,000 c) Rs. 21,000 d) Rs. 29,000
14) Capital Budgeting Technique helps in :
a) Investment decision making b) Cash flow decision making c) Profit decision making d) Management decision making
15) In the Balance sheet of a firm, the debt equity ratio is 2:1. The amount of long term sources is Rs.12 lac. What is the
amount of Tangible Net Worth of the firm? - a) Rs.12 lac b) Rs. 6 lac c) Rs. 4 lac d) Rs. 2 lac
16) An expense of installation charges of machinery is:
a) Credited is machinery account b) Debited to machinery a/c c) Credited to cash account d) Debited to cash a/c
17)If cost price of the machine is 80,000, Rate of Depreciation is 10%. find the depreciated value after 4 years by reducing
value method: a) 80,000X.9X.9 b) 80,000X.81X.81 c) 80,000X.9X.9X.9 d) 80,000X.88X.9
18) If the cost of equipment is Rs.50,000, Salvage value is Rs.10,000 and its useful life is 6 years, compute depreciation amount
in the 4th year by SYD Method: a) 5700 b) 5714.28 c) 6500 d) 6200
19) If BRS is prepared with balance as per Passbook on 31 Dec., then out of Rs. 20,500 paid by X by cheques on 31 Dec., a
cheque of Rs.7,500 was collected on 7th Jan., the effect will be: a) Rs 13,000 will be deducted from balance
b)Only Rs. 7,500 be deducted from balance c) Rs. 20,500 is added is the balance d) None of these
20) Find out the EMI, if the loan is 500,000 repayable in 10 years with interest @7% per annum:
a) 5800 b) 5600 c) 5805 d) 5467
21) Which of the following are Deferred Revenue expenditure:
a) Heavy advertising expenditure for launching a new product b) Expenditure for the issue or raising loan or capital c)
Expenditure for the formation or registration of a company d) All of the above
22) Bank overdraft is a: a) Personal Account b) Real Account c) Nominal Account d) All the above
23) If a bill made on 25th May matures after 4 months, then maturity date will be:
a) 26th Sept. b) 25th Sept. c) 28th Sept. d) 1st Sept.
24) Accounting concepts are:
a) Methods of presenting financial accounts
b) Broad assumptions c) Bases selected to prepare a specific set of accounts d)None of these
25) Reduction in expenses causes:
a) Increase in proprietor equity b) Increase in Asset c) Decrease in properitor equity d) Increase in losses.
26) Duration and Interest rate elasticity of bond are: a) Directly related b) Inversely related c) Not related d) None
27) 100 equity shares of Rs.100 each of a company were forfeited for nonpayment of the final call of Rs.30 per share. These
shares were re-issued at Rs.90 per share fully paid. Calculate the amount to be transferred to capital reserve account. a)
Rs.5000 b) Rs.6,000 c) Rs.7,000 d) Rs.8,000
28) Which of the following is used for redeeming Preference shares?
a) General Reserve b) Dividend Equalization fund c) Profit & loss a/c d) All of the above
29) If drawings exceed capital introduced in business, capital a/c may have:
a) Debit balance b) Credit balance c) Either of above d) None
30) As a general rule for independent investment project, invest in the project where IRR is:
a) IRR = Cost of Capital b) IRR > Cost of Capital c) IRR < Cost of Capital d) IRR method is decisive
31) What is the discounting factor for 3 year if rate is 10%? - a) .75 b) .46 c) .909 d) .41
32) What is true about the Duration of a Bond? - a) Duration is expressed in terms of years. b)Duration of a coupon-paying
bond is always less than its maturity. c)In Zero-coupon bonds where periodical interests are not paid out, duration will be equal
to its maturity d)All of the above
33) Which of the following have a Credit balance?- a) A/c payable b) A/c receivable c) Current a/c d) Discount a/c
34) Bill Receivable endorsed are debited to: a) Debtor a/c b) Creditor a/c c) Bill payable a/c d) Bill receivable a/c
35) Clerical error includes: a) Error of omission b) Principal error c) Error of commission d) Both a & c
36) Revenue expenditure are: a) Day to day expenditure b) Monthly c) Yearly expenditure d) Half yearly
37) Drawings do not include:
a) Payment of Rent for proprietor residence.
b) Goods taken by proprietor c) Amount withdrawn from bank d) Amount withdrawn from bank for domestic use.
38) Profit & loss a/c is a : a) Nominal a/c b) Real a/c c) Personal a/c d) Both a & b
39) Bill of exchange cannot be ______:
a) Retained till maturity b) Discounted with bank c) Endorsed to anybody d) None of these
40) Value of asset can become zero in _____ method: a) Straight line b) Written down c) Sinking fund d) Insurance
policy
41) Depreciation is calculated on _____ of asset. a) Cost price b) Market price c) Book value d) Invoice price
42) Interest suspense a/c is shown in: a) Trading a/c b) Balance sheet c) Profit & loan a/c d) Venture a/c
43) What is Tangible Net Worth of a Firm? -
a) Capital only b) Bank OD c) Capital + Reserves & Surplus - Intangibles d) Debtors
44) In a Banks Balance Sheet bad debts and provisions for doubtful debts are shown under:
a) Loans & Advances b) Provisions c) Reserves d) Contingent Liabilities
45) ______ is an example of contingent liability. - a) Bank Guarantee b) Deposits c) Loans & Advances d) Provisions
46) Bonus shares are issued to_______:
a) Existing shareholders.b) New shareholders c) Holders of partly paid-up shares d) None of the above
47) The balance of Petty cash a/c is shown as: a) Expense b) Asset c) Loss d) Revenue
48) If BRS is prepared with balance of cash book, it will show _____ per pass book.
a) Balance b) Overdraft c) Both a & b d) Either a or b
49) Goodwill means ______ :
a) Value of reputation of the firm b) Good wishes of the partners c) Good wishes of the customers d) Type of will made with
good intentions
50) If a Bill made on 25th May matures after 4 months, then maturity date will be:
a) 26th Sept. b) 25th Sept. c) 28th Sept.d) 1st Sept.
51) Double entry system is based on: a) Somebody loss is equal to some body gain b) Every debit equal to every credit c) What
comes in is equal to what goes out d) All of the above
52) Goods lost by fire should be credited to: a) Purchase a/c b) Goods lost by fire a/c c) Sales a/c d) No entry
53) Goods returned by X for Rs.600/- was passed through Sales book is an error:
a) Compensating b) Commission c) Principal d) None of the above
54) Money received in advance from shareholder before it is actually called is:
a) Debited to call in advance a/c b) Debited in call in paid in arrear a/c c) Credited in call in paid in arrear a/c d) None of these
55) Book keeping records: a) Monetary aspect b) Non-monetary aspect c) Both a & b d) Only b
56) Purchase a/c is credited for: a) Goods withdrawn b) Goods lost c) Good purchased d) Both a & b
57) Preference shareholder have a right of: a) Dividend b) Interest c) Claim d) Commission
58) Which of following is not an asset? -a) Fixed Asset b) Current Asset c) Capital d) Discount on share
59) Which of following has debit balance? a) Purchase a/c b) Sales a/c c) Capital a/c d) Loan a/c
60) Current Assets include: a) Goodwill b) Land & Building c) Cash d) Profit & Loss
61) Journal is a book of: a) Prime record b) Final book c) Analysis book d) Ledger A/c
62) Ram’s a/c is debited with Rs.500 instead of debit of Mohan a/c. It is a:
a) Commission Error b) Principal error c) Compensating error d) No error
63) The Balance sheet of Bank is prepared under:
a) Section 26 b) Section 29 (3rd schedule) c) Section 29 d) Under Section 20 (vi)
64) If there is Public holiday on due date of bill, then when will the bill be payable:
a) On business day b) Preceding business day c) More than the grace days d) None of these
65) General Manager commission of 10% of net profits of Rs.2,200 after charging such commission is Rs. ______:
a) 200 b) 190 c) 250 d) 220
66) Which is an Intangible Asset? a) Patents b) Building c) Preliminary Expense d) Goodwill e) Both a and d
67) If the cost of the car is 3,00,000, Depreciation is 10% on W.D.V. Find the depreciated value after 3 years by reducing value
method? a) 21600 b) 218700 c) 22500 d) 30,000
68) For a project, the difference between the sum of the presents value of cash flows of the project and cash outlays for
financing the project is its: a) Future value b) Net present value c) Internal rate of return d) Cash outflow
69) Goods Sold to A against a cheque issued by A for the amount. The journal entry is:
a) A’s Account Dr., Sales account Cr. b) Bank Account Dr. Sales account Cr c) Bank A/c Dr. Purchase Account Cr. d) Purchase
A/c Dr. A’s account Cr.
70) What is the discounting factor for 3 year if rate is 10%: a) .75 b) .46 c) .909 d) .41
71) If the cost of equipment is Rs.50,000, Salvage value is Rs.10,000 and its useful life is 6 years. Compute depreciation amount
in the 4th year by SYD Method: a) 5700 b) 5714.28 c) 6500 d) 6200
72) Sales book shows only: a) Cash sales b) Credit sales c) Total sales d) Cash payments
73) Profit on redemption of Debenture is:
a) Capital profit b) Transferred to capital reserve c) Transferred to P& L a/c d) Both a and b
74) Discount on issue of Debenture is: a) Capital Loss b) Capital gain c) Revenue loss d) Revenue gain
75) Share Premium, if not mentioned, is included in:
a) Application money b) Allotment money c) 1st call money d) Share capital
76) Find out the EMI, if the loan is 500,000 repayable in 10 years with interest @7% per annum:
a) 5800 b) 5600 c) 5805 d) 5467
77) A loss arising due to pilferage, theft, fire etc, is a: a) Normal loss b) Abnormal loss c) Data Inadequate d) None
78) The drawee of a bill is ___ : a) Creditor b) Debtor c) Endorsee d) Owner
79) Cash sales = Rs. 35,000, Credit Sales = Rs.40,000, Cost of Good Sold = Rs. 52,000 and Expenses on Sales = Rs.6,700. Find
value of Net Profit. a) Rs. 15,500 b) Rs. 16,000 c) Rs. 15,000 d) Rs. 16,300
80) Trade discount is given on ________: a) Purchasing of goods in bulk b) Purchasing of goods in small quantity c) On selling
the goods d) On returning the goods sold
81) An entry of Rs.320 has been debited in books as Rs.250. It is an error of:
a) Commission b) Omission c) Principled) Compensating
82) Which of the following instrument is noted on dishonour? - a) Cheque b) Promissory Note c) B/E d) Hundi
83) Which amongst the following can not be a source for issue of bonus shares? - a)Share premium
b) Revaluation reserve created by revaluation of fixed assets c) Capital reserve d) Capital redemption reserve
84) An Annuity is an ordinary annuity if payments are required to be made________: a) At the beginning of each period
b) Made at the middle of each period c) Made at the end of each period d) At ordinary instalments.
85) Payment of wages to Ram Lal debited to his personal a/c is:
a) Compensating error b) Principal error c) Commission error d) None of these
86 A company purchased equipment of Rs.8.80 lac against allotment of shares with face value of Rs.100 each at a premium of
10%. What would be no. of shares, issued to the vendor?
a 8800, b 8000, c 7200, d 800
87 As per accounting equation what would be the amount of liabilitiesof a firm, if its assets are Rs. 3 lac and capital is Rs.1
lac:
a Rs. 3 lac = 1 + 2 lac, b Rs. 2 lac = 3 — 1 lac, c Rs.1 lac = 3-2 lac, d none of the
above
88 A firm makes purchase in cash for Rs.4000. Cash and trade discount are available @ 10% simultaneously. What is the net
amount payable?
a Rs. 3600, b R s . 3 4 8 0 , c Rs.3320, d Rs.3240
89 A firm has to pay Rs.2500 to its creditor Mr. Mahesh. While making payment, it debits the account of Mr. Satish another
creditor. This is:
a an error of principal, b an error of commission, c compensating error as well as error of commission
d error of omission and compensating error
90 The overdraft balance in the cash book is Rs.45060 but from bank pass book it is found that a cheque of Rs.600 has been
debited twice, a cheque of Rs.6045 deposited with the bank has been dishonoured and Rs.60 have been debited by the bank as
returning charge and bank credited Rs.8 to the account on account of postal charges refunded. What is the balance as per pass
book?
a Rs.51757 Cr, b Rs.57157, c Rs.51757 Dr, d Rs.57717
91 Interest suspense is classified as :
a nominal account, b personal account, c real account, d none of the above
92 At times, the errors are detected after preparation of the trialbalance. The rectification of such errors is done by : a
debiting the ledger account, b debiting the profit and loss account, c debiting the balance sheet
d way of suspense account
93 A company came out with a public issue of 2 lac shares of Rs.10 each payable as application money @ Rs.3 and allotment
money @ Rs.3. Final call amount has also been called which has not been received on 4000 shares. If the company decides to
forfeit the partly paid shares, what is to the total amount of capital, that would be forfeited:
a Rs.16000, b Rs.24000, c Rs.40000, d Rs.60000
94 Cash book of a firm is showing a balance of Rs.5100. Bank statement of account shows that bank has credited Rs.50 and a
customer of the firm directly deposited with the bank Rs.610. What is the balance as per pass book.
a Rs.5710, b Rs. 5150, c Rs.5760, d Rs.5660
95 The purchase account has been undercast by a firm by Rs.12000. What will be the journal entry for rectification?
a debit purchase account and credit creditor, b debit purchase account and credit suspense
c debit creditor's account and credit purchase, d debit purchase and credit cash account
96 The amount of total assets of a firm is Rs.5 lac and the liabilitiesare Rs.2.60 lac. What will be the correct accounting
equation, when the gap between the two is filled in:
a 5.00 = 2.40 + 2.60 lac, b 2.40 = 5.00 — 2.60 lac, c 2.40 = 2.60 — 5.00 lac, d none of the
above
97 In the written down value method, the amount of depreciation iscalculated on which of the following:
a original value of the asset, b depreciated value of the asset, c scrap value of the asset
d any of the above, whichever lower
98 A firm paid an amount of Rs.2000 to a transport company which include payment on account of freight of machine Rs.1000
and Rs.1000 as freight on raw material. Which account would be debited for freight on raw material:
a raw material account, b purchase account, c freight account, d cash account
99 In the above problem, the freight on machine would be debited towhich account?
a cash account, b freight account, c purchase account, d machine account
100 Rebate on bills of exchange, in the books of the drawer would be treated as:
a nominal account, b real account, c personal account, d No where
101 The pass book of a firm shows overdraft of Rs.5100. The firm hadissued a cheque of Rs.2400 which has not been
presented for payment so far. What is the balance as per cash book?
a Rs.5100 Dr, b Rs.2700 Cr, c Rs.7500 Cr, d Rs.7500 Dr
102 A firm has received a cheque of Rs.3000 in its favour and uses this cheque for making payment by endorsing in favour of
the seller. What treatment will be given to this in the cash book?
a It need not be entered in the cash book, b It will be entered on debit side, c It will be entered on
credit side, d It will be posted both on debit and credit side
103 A firm earns profits of Rs.12000. Its partners had drawn Rs.8000during the year. What was the capital at the beginning,
if it is Rs.43000 at the close of the financial year?
a 39000, b 38000, c 36000, d 34000
104 A firm has made provision @ 5% of its book debts of Rs.40000 at the beginning of the year. During the year, a sum of
Rs.2000 is written off out of the provisions held. To maintain 5% provisions at the end of the year, what would be the amount of
fresh provision? a Rs.1900, b Rs.2000, c Rs.1800, d Rs.1700
105 Which of the following statement is correct ?
a Personal accounts are reflected in trading account, b Real accounts are recorded as liability in the balance sheet,
c Nominal accounts are reflected as asset in the balance sheet
d Personal and real accounts appear in the balance sheet
106 Goods worth Rs.2 lac relating to a firm have been damaged in fire.Which account would be credited?
a. Claim receivable, b Profit and loss account, c P u r c h a s e a c c o u n t , d No entry is required
107 Preliminary expenses incurred by a firm is an example of :
a revenue expenditure, b deferred revenue expenditure, c capital expenditure, d fictitious assets
108 Expenses incurred by a firm in manufacturing of goods are to beclassified as:
a revenue expenditure, b deferred revenue expenditure, c Capital expenditure, d fictitious assets
109 A consignment account is in the nature of:
a Personal account, b Nominal account, c Real account, d Intangible asset
110 A firm makes advance payment of tax on behalf of one of its partners. This amount would be debited to:
a cash account, b capital account of the partners, c drawing account of the partner
d none of the above
111 In the consignment account, the unsold stock is valued at:
a original cost, b original cost ÷ direct expenses incurred by consigner/consignee, c direct expenses
incurred by the consignee, d Original cost + indirect expenses
112 Goods sent on consignment is in the nature of:
a real account, b personal account, c nominal account, d none of the above
113 The credit balance of Rs.2000 in the bank column of the cash book was carried forward as its debit balance. If the overdraft
as per pass book is the starting point:
a Rs.2000 would be deducted, b Rs.2000 would be added, c Rs.4000 would be added
d Rs.4000 would be deducted
114 A favourable balance as per cash book means:
a debit balance in the bank column of cash book, b credit balance in the bank column of cash book
c debit balance in the pass book, d any of the above
115 If the trade discount appears in the trial balance, in the finalaccounts it is shown as:
a deduction from sales in trading account, b addition to amount of sales in trading account, c
deduction from amount of purchases, d none of the above
116 A firm's profit is 25% of the cost price. How much it would be of sales:
a 25%, b 20%, c 15%, d 10%
117 Which of the following kinds of companies can issue a deferred share:
a. public companies, b. private companies, c independent private companies, d govt. companies
118 When a company makes allotment of shares to the share applicants, which of the following accounts is to be credited? a.
share capital account, b share allotment account, c share application account, d any of the above
119 When preference shares are redeemed out of profits otherwise available for dividend, equal amount must be transferred to:
a. capital redemption reserve, b sinking fund, c capital reserve, d none of the above
120 What kind of sales out of the following are recorded in the sale book?
a credit sales of goods, b cash sales of goods, c credit and cash sales, d credit or cash sales of any thing
ANSWER
Q A Q A Q A Q A Q A Q A
1 D 2 C 3 A 4 A 5 B 6 A
7 B 8 B 9 A 10 C 11 A 12 A
13 B 14 A 15 B 16 B 17 B 18 B
19 B 20 C 21 D 22 A 23 C 24 B
25 A 26 A 27 B 28 D 29 A 30 B
31 A 32 D 33 A 34 B 35 D 36 A
37 C 38 A 39 D 40 A 41 C 42 B
43 C 44 B 45 A 46 A 47 B 48 D
49 A 50 C 51 D 52 A 53 B 54 A
55 A 56 D 57 A 58 C 59 A 60 C
61 A 62 A 63 B 64 B 65 A 66 E
67 B 68 B 69 B 70 A 71 B 72 B
73 D 74 A 75 B 76 C 77 B 78 B
79 D 80 A 81 A 82 C 83 B 84 C
85 B 86 B 87 A 88 D 89 C 90 A
91 B 92 D 93 C 94 C 95 B 96 A
97 B 98 C 99 D 100 A 101 C 102 D
103 A 104 A 105 D 106 C 107 B 108 A
109 B 110 C 111 B 112 A 113 D 114 A
115 A 116 B 117 C 118 A 119 A 120 D
MEMORY BASED RECALLED QUESTIONS 2013-15

TEST YOURSELF -1
1. The promoter of a business is treated as a creditor of the business accordingly which of the following concepts of
accounting? a Entity concept, b Money measurement concept, c Dual concept, d Cost concept
2 A firm debited the amount of wages of Rs.1000 paid on account of installation of equipment, to the wages account.
How it can be rectified?a Debit machinery & credit cash, b Debit cash and credit wages, c Debit machinery & credit
wages d Debit wages and credit cash
3 In the books of a firm, the opening stocks are Rs.2 lac, netpurchased Rs.19 lac, direct expenses Rs.3 lac, closing stock
Rs.4 lac and sales Rs.28 lac. What will be amount of gross profit – aRs.8 lac, b Rs.7 lac, cRs.6 lac, d Rs.5 lac
4 An sum of Rs.10000 has been debited to repairs account wronglyinstead of the machinery account. The total of debit side of
trial balance comes to Rs.199000.What would be the correct total after rectification:
a Rs.2 lac, b Rs.1.80 lac, c Rs.2.09 lac, d There will be no change
5 A firm starts business with a capital of Rs.90000 in cash andpurchases machinery on credit for Rs.10000. The
accounting equation would be as:
a Rs.1 lac = Rs.90000 + 10000, b Rs.10000 = 1 lac – 90000, c Rs.90000 1 lac – 10000 d Rs. 1 lac = 1 lac + 0
6 The closing stock of a firm is nil, the sales Rs. 2.98 lac, theopening stock Rs.0.36 lac, purchases Rs.1.56 lac and cost
ofgoods sold Rs.2.12 lac. What will be the amount of gross profit? a) 0.86 lac b) 0.84 lac c) 0.80 lac d) 0.78 lac
7. A firm has debited Rs.2000 to purchase account though it relatedto office expenses. The net profit of the firm is Rs.60300
presently.What it should be ?a) Rs.62300 b) Rs.58300 c) Rs.60300 d) Rs.64300
8. A machinery has been purchased for Rs.2 lac with expected life of3 years. Its scrap value at the end of 3rd year is
anticipated atRs.20000. What is the amount of depreciation under SLM?
a) Rs.60000 b) Rs.66667 c) Rs.73333 d) Rs.56000
9.A firm purchased machinery on April 01, 2001 for Rs.2 lac and sold it for Rs.1.20 lac on Oct 01, 2003. If depreciation is at
10% and annual closing is March. What is the profit or loss on sale of machinery?
a) Profit Rs.0.30 lac, b) Loss Rs.050 lac, c) Profit Rs.0.50 lac, d) Loss Rs.0.30 lac
10 A firm raised a loan from a nationalized bank. Such loan accountwould be classified under which of the following
accounts? a) Personal account, b) Nominal account, c) Real Account, d) Real tangible account
11 A firm has received advance from one of its customers forpurchase of finished goods. Which of the following it
is ? a) Personal account and an asset, b)Real account and a liability, c) Personal account and a liabilityd) Real account
and an asset
12 Which of the following purposes is served by preparation of trialbalance by a business organisation?
a location of errors of principle, b location of errors of omission, c location of clerical errorsd all the above
13 A company issued capital and Mr. A subscribed 1500 shares of Rs.10 each by paying Rs.2.50 on application and Rs.3 on
allotment but failed to pay the balance amount. What will be the increase in the amount of capital reserve on account of his
non.- payment after forfeiture of shares? a Rs. 6750, bRs. 8250, c Rs. 7750, d Rs. 5550
14 A firm had purchases of Rs.2 lac and sales of Rs.2.50 lac net of returns: The returns inward are R5.0.10 lac and returns
outward Rs.0.15 lac. What would be the amount of gross profit of the firm?a Rs.50000, bRs. 50000, c R s . 4 5 0 0 0 , dNone of
the above
15 The overdraft balance in a bank pass book is Rs.10200. Firm had issued a cheque of Rs.4800 which has not been presented
so far for payment. What would be balance as per cash book of the firm?
a Rs.15000, b Rs.5400, c Rs. 10200, d Rs. 4800
16 Which of the following would be considered as a source of funds for a business firm engaged in manufacturing?
a Increase in an asset, b Increase in liability, c decrease in liability, d none of the above
17 An error has occurred in the real accounts of a firm. Which of the following will be affected by this?
a. Balance sheet, b Profit and loss account, c Profit and loss appropriation account, d all the above
18. The cash book of a firm has been showing an overdraft balance of Rs.12800 but it is observed that a cash deposit of
Rs.1200 has not been credited by the bank in the overdraft account. What will be the balance in the pass book?
a) 11600, b) 14000, c) 10400, d 15h2a0t0
19 is the amount of gross profit when net loss is Rs.2000,operating expenses Rs.12000 and sales Rs.48000?
Rs.12000, b) Rs.11000, c) Rs.10000, d) Rs.9000
20. A company came out with a public issue of 2,50,000 shares of Rs.100 each and receives applications for 3 lac shares. X had
applied for 200 shares in the company. On a pro-rata basis, how many shares will be get?
a) 167 shares, b) 240 shares, c) 200 shares, d) none of the above
2 1 . Cash of Rs.2000 has been received by a firm from Mr. A, the debtor but it has been credited to account of Mr. C, a creditor.
How this entry would be rectified? a) Debit Cash and credit A b) Credit Cash and Debit C c)Credit cash and debit A, d)Debit C
and Credit A
22 Find out the amount of marketing expenses of a firm which have been paid for Rs.20000 for the current year, these are
outstanding for Rs.3000 for the current year, expenses worth Rs.2500 have been incurred for the previous year and an advance
of Rs.1100 has been given for the next year. The firm follows the cash system of accounting:
Rs.23600, b) Rs.24400, c) Rs.28300, d) Rs.20400,
23 The books of a firm reflect that the returns inward have beenadded short by Rs.1980. Presently its gross profit is
Rs.38200.What it should be? a Rs.38200, b Rs.40180, c Rs.38220, d Rs.37640
24 The debit side trial balance of a firm is showing a balance of Rs.619800 but in the discount column of cash book
the discounted given by the firm has been over-added by Rs.200. What should be debit side trial balance ?
a Rs.619600, b Rs.620000, c Rs.620200, d Rs.619400
25 Cash book of a firm has been showing overdraft of Rs.4200 but it is observed that the bank has. debited commission of
Rs.186. The balance as per pass book should be: a Rs.4014, b R s . 4 3 8 6 , c R s . 4 2 0 0 , d None of the above
26 A firm has a dealership for textile machinery. It sells machineryworth Rs.5.50 lac but credits the same to the sales
account. In order to rectify the error, what should be the correct entry?A Debit cash / credit sales, b Debit machinery
I Credit cash, c Debit sales / credit machineryd no adjustment needed
27 A firm earned net profits of Rs.102200. Its manager gets 5% commission after charging such commission. What is the
amount of commission, the manager would receive? a 4 7 7 2 , b 5110, c 4766, d 4760
28 The closing stocks of goods are recorded in which of the followingbooks of a firm?- a.trading & manufacturing account,
b manufacturing account and profit & loss account, ctrading account and balance sheet, d profit & loss account and balance
sheet
29 A firm has incurred substantial expenditure on the marketing of anew product. In the books of the firm, how this would be
classified? a) Revenue expenditure, b) Deferred revenue expenditure capital expenditure, c) pre-paid expenditure
30 A firm incurred Rs.3220 during a year on purchase/use ofstationery. In which of the following, this expenditure
would beclassified: personal account, b) real account, c) nominal account, d) contingent account
31.The liabilities of a business firm are Rs.8240. According to accounting equation, what is the amount of promoter's equity if
the assets are Rs.42630? a) 34390 b) 42630 c) 50870 d) 8240
32 A company issued 1 lac shares of Rs.10 each (payable Rs.4 with application, Rs.2 on allotment and Rs.4 as first and final
call). It received the application money for all the shares but did not get the allotment money on 6000 shares and additionally
allotment money and final call money on 2000 shares. What is the amount of calls in arrears?
Rs.24000, b) Rs.16000, c) Rs.32000, d) Rs.48000
33 A firm sold a machinery for Rs.18000 at the end of 3`d year of its purchase, while its expected useful life was 5 years. If its
original purchase price was Rs.40000 and its scrap value was expected at Rs.4000, what is the profit or loss on sale of the
machinery? A) Profit of Rs.3600, b) Loss of Rs.400, c) Profit of Rs.18000, d) Loss of Rs.2000
34 A company issued fully paid up shares of Rs.10 each at a premium of Rs.2 to the vendor of plant and machinery worth
360000. Whatis the no. of shares that has been allotted to the vendor? A) 36000, b) 18000, c) 30000, d) Cannot
be issued
35 A firm while checking its bank account statement found that bank has credited interest amount to Rs.240 to its current
account. The balance in its pass book was Rs.9000. What should be the balance as per cash book:
a Rs.9000, b Rs.9240, c Rs.8760, d Rs.8520
36 In the trial balance of a company, a sum of Rs.2460 has been appearing as interest accrued but not received. It will be
recorded in
a. rofit and loss account, b trading and manufacturing account, c balance sheet as asset, d balance sheet as a liability
37 A firm has in its books, sundry debtors amounting to Rs.2 lac. The amount of bad and doubtful debts is Rs.16000. What will
be amount of provisions, if the firm is required to make provision @ 5% of the debtors:
a 10000, b 2 6 0 0 0 , c 10800, d 9200,
38 The overdraft balance in the cash book of a firm is Rs.23600. A debtor of the firm deposits directly in the bank an amount of
Rs.3200, which bank credits in the personal account of a partner_ What is the balance as per pass book of the firm? a
26800, b 20400, c 23600, d 30000
39 What is the nature of balance in the overdraft account in the cashbook of a firm and also the pass book?
a credit balance in the cash book and credit balance in the passbook, b) debit balance in the cash book and debit balance
in the pass book c) debit balance in the cash book and credit balance in the pass book d) credit balance in the cash book and
debit balance in the pass book
40 Which of the following can be categorized as a real account in thebooks of a firm?
marketing expenses, b) deferred revenue expenses, c) sundry debtors, d) credit balance in the bank account
41 What is the amount of expenses of doing business (operatingexpenses) when sales are Rs.150000, gross profit
Rs.15000, netloss Rs.4000? a) Rs.18000 b) Rs.17000 c) Rs.19000 d) Rs.16000
42 The preliminary expenses incurred by a company on incorporation and on raising capital are classified as which of the
following? a) Expenditure and debited to profit and loss account, b) fixed assets, c) intangible asset
d fictitious asset
43 What is the amount of sales when merchandise costs Rs.312400, gross profit Rs.42100 and net profit Rs.25400?
Rs.359900, b) Rs.354500, c) Rs.357800, d) Rs.254500
44 Final accounts are prepared from: a subsidiary books, b primary books, c principal accounts, d trial balances
45 Accrued interest not received given in trial balance should be:
a added to interest received account, b transferred to profit and loss account, c made to appear in
balance sheet d none of the above
46 A company declared a dividend of 10% on its paid up share capitalbut failed to account for this transaction in its books.
It will be treated an:
a error of omission, b error of principle, c clerical error, d not required to be accounted for
47 The value of an asset appears in books at the original co s t throughout the period of its existing under which of the
following methods of depreciation?
a straight line method b diminishing value method c depreciation fund method d machine hour rate method
48 Under which of the following methods of accounting, the prepaid expenses or outstanding income is taken into
consideration for determining profit or loss to a business:
a Mercantile System, b Single entry system, c Double entry system, d Cash system
49 Prepaid expenditure is shown as:
a an asset, a liability, c expenditure, d income
50 The profit and loss account is divided into two sections namely:
The trading and manufacturing account, b Profit and loss account, c Both the above, d None of the above
Answers
1 a 2 c 3 a 4 d 5 a
6 a 7 c 8 a 9d 10 a
11 c 12 c 13 b 14 a 15 a
16 b 17 a 18 b 19 c 20 a
21 d 22 a 23 c 24 a 25 b
26 d 27 a 28 c 29 b 30 c
31 a 32a 33a 34c 35 c
36 c 37 a 38 c 39 d 40 b
41 c 42 c 43 b 44 d 45 c
46 a 47 c 48 a 49 a 50 c
TEST YOURSELF -2
1. A firm gives certain goods out of its available stock, at charity to an institute for blind. What will be the journal entry?
a) debit institute credit cash, b) debit sales credit cash, c) debit charity account credit purchases, d) debit purchases
and credit cash
2.The credit side of trial balance of firm is presently showing balance of Rs.401200 but the return outward has been
recorded short by Rs.1200. What will be trial balance after rectification?
a) 402400 b) 400000 c) 403600 , d) 98800
3.A machinery was purchased by a firm for Rs. 4 lac and for the 1St year the depreciation of Rs.80000 was charged on WDV
method. What will the depreciation for 2nd year? a) Rs.64000, b Rs.80000, c) Rs.16000, d ) R s . 6 0 0 0 0
4 As per going concern concept, how the business is viewed ?
a Business is having indefinite life, b Business is having limited life of say 3-4 years, c Business is run with
uncertainty, d Business would run for a very long period
5 A sum of Rs.786 has been entered in the sales book as Rs.678. This would be considered as an error of:
a) Error of principle, b Error of commission, c Error of omission, d Compensating error
6 While making payment of rent to the landlord for the building occupied by a firm, it debited the landlord's account.
What will be the journal entry for rectification?
a debit rent account credit cash, b debit rent account credit landlord's account, c debit cash account and
credit landlord's account, d debit cash and credit rent account
7 A company received 2 lac share applications for public issue atRs.4 per share against its offer of 1 lac shares. Which
account would be debited for the amount and to what extent to record 1=1 entry?
a bank account, Rs.4 lac, b Bank account, Rs. 8 lac, c Share application account Rs.8 lac
d Share application account Rs.4 lac
8 A sum of Rs.2000 on account of sales returns has been debited topurchase account. The debit side of trial balance has been
showing a balance of Rs.398000. What it should be?
a Rs.400000, b Rs.396000, c Rs.398000, d Rs.402000
9 A firm purchased some machinery on April 01, 2002 for Rs.80000and incurred Rs.20000 on its freight and installation.
On Sept 01, 2003, it sold the machinery. The annual closing is March every year. At 20% depredation on SLM basis, what is the
amount of depreciation for the year 2003?
a Rs.10000, b Rs.15000, c Rs.20000, d Rs.25000
10 The goods purchased by a firm are debited to purchase account.Which of the following categories, this account would
be categorized? a Personal account, b Real Account, c Nominal account, d Contingent account
11 What is the basic amount on which the depreciation is chargedunder the Straight Line Method?
a Original cost of the machinery, b Scrap Value, c Written down value, d Original cost or
written down value, whichever is higher
12 A firm purchased goods worth Rs.10 lac and its sales are Rs.12.50lac. It paid inward freight worth Rs.50000 and there
were returnsinward for Rs.50000. What is the amount of net profit?
a) Rs.100000, b) Rs.125000, c) Rs.150000, d) Rs.200000
1 3 A f i rm h ad w ri tte n o f f th e amo u n t o f R s. 2 0 0 0 w h i ch w asrecoverable from A. Now a sum of Rs.500 has been
received fromhim. The journal entry would be:
debit debtor credit cash, b) debit cash credit profit and loss account, c) debit cash credit bad debt recovered account,
d) debit bad debt recovered account and credit cash
4 A firm earned profits worth Rs.40000. Its marketing manager isentitled to 6% commission on such profits. What is net
profit aftercharging such commission? a) 37600 b) 38000 c) 37650, d) 35400
5 When a firm commits a mistake while balancing an account, such mistake is categorized as:
a) error of commission, b) error of principle, c) compensating error, d) error of omission
6 Profit and loss account of a firm, shows profit of Rs.32450 butprovision for doubtful debts @ 8% and for discount
on debtors @ 5% is to be made for sundry debtors of Rs.16000. What will be the net profit after such provisions? - a) 30434,
b) 30686, c) 29874, d) 31022
17 A company came out with a public issue of 200000 shares and received applications for 300000 shares. What will be no. of
shares allotted to a person who has applied for 18000 shares?
a) 18000 shares, b) 15000 shares, c) 12000 shares, d 9000 shares
18 A firm had gross profit of Rs.30000, salaries Rs.10000, rentpayment of Rs.2830 and dividend receipt of Rs.1500.
What would be net profit if 5% commission is also paid to the manager after such commission.
a 17781, b 17839, c 18201, d 18123
19 A firm has undercast the sales book by Rs.1250. Which of the following kinds of error it would be considered? a.
Error of principle, b Error of commission, c Error of omission, d Any of the above
20 A firm purchased machinery worth Rs.1 lac and paid freight forRs.3000, installation charges Rs.5000 and sales tax
Rs.10000. What will be the annual amount depreciation on SLM basis, if the expected useful life of the machinery is 5 years: a
21500, b 22300, c 23200, d 23600
21 A firm sold furniture worth Rs. 400 for cash. The amount will berequired to be credited to which of the following: a
cash account, b sales account, c furniture account, d depreciation account
22 The cost of material of a firm is Rs.624800, gross profit Rs.84200and net profit of Rs.50800. What is the amount of
sales? a Rs.574000, b Rs.709000, c Rs.542000, d Rs A89000
23 A company issues 100000 shares of Rs.10 each and offers discount of Rs.1 per share. What will be amount of paid up capital
in the books of the company?
a Rs.10 lac, Rs.9 lac Rs.11 lac Rs.1 lac
24. A firm earned profits of Rs.30000, 22000, 36000 and Rs.32000during the last 4 years. What will be amount of goodwill
computedfor 3 years' purchase of average profits of 4 years.
a) 90000, b) 95000, c) 100000, d) 120000
25. An SSI unit purchased machinery worth Rs.5 lac and after 5 years expected useful life, its scrap value is estimated at
Rs.30000. Whatwill be the annual depreciation?
a) Rs.92000 b) Rs.94000 c) Rs.95500 d) Rs.96500
26.Fire destroyed stocks wortth Rs.3 lac of a firm and insurance company admitted a claim of Rs.2.50 lac. To which account the
balance amount would be debited:
a) Stock account, b) Insurance receivable account, c) Profit and loss account, d) trading account
27 It is observed from the pass book of the bank account that thebank has credited an amount of Rs.3150 to the
account while a sum of Rs.1430 has been debited on account of bank charges. What would be net effect on the cash book
balance for these transactions?
1720, b 4580, c There will be no change, d none of the above
28 An SSI firm purchased machinery worth Rs.2 lac and for its installation it utilised the services of its labourer and their wages
amounting to Rs.1260 have been debited to wages account. It is :a error of principle, b error of commission, c
compensating error, d error of omission
29 A company had to forfeit 1500 shares of Rs.10 each. Out of these 600 shares are reissued at a discount of Re.1 . What is the
amount transferred to capital reserve, if the company had received Rs.8 per share.
a 11400, b 11520, c 12060, d 12600
30 The sales of a firm are Rs.98000 and gross profit Rs.66000.What is the amount of administrative expenses, if the net
loss Rs.10000
a Rs.56000, b Rs.76000, c Rs.88000, d Rs.32000
31 A company decides to forfeit 200 shares of Rs.10 each for which itdid not receive the final call money of Rs.3 per share.
What is the amount of share capital that would be forfeited?
a Rs.600, b Rs.1400, c Rs.2000, d all the above
32 Amount of net loss of a firm is Rs.4000, administrative expenses Rs.24000 and sales Rs.96000. Find out the gross profit if
any:
a Rs.20000, b Rs.92000, c Rs.68000, d Rs.76000
33 A sum of Rs.1380 paid by a firm on account of wages has been recorded as Rs.1920. The debit side of trial balance is
showing a balance of Rs.163080. What it should be ?a 1 6 2 3 2 0 , b 164220, c 162540,
d 161420
34 A firm has paid insurance premium of Rs.22000 but outstanding premium payment is Rs.11000. It has insurance prepaid
opening balance of Rs. 3400 and insurance paid for previous year Rs.3200. How much amount would be charged to profit
and loss account, in case the company follows mercantile system ofaccounting?
a) Rs.26400 b) Rs.38000 c) Rs.34800 d) Rs.35480
35. A firm has not received some income which otherwise has becomedue for receipt. Where it should be shown?
a) Asset in the Balance sheet, b) Profit and loss account, c) Liability in the balance sheet, d) a and b
36 Some rent is due but not paid by the firm, in the balance sheet. A) It will show nil balance, b) It will show debit
balance, c) It will show credit balance, d) none of the above
37 A firm had purchased machinery worth Rs.2 lac and incurred Rs.3000 on its freight. Later on during the year, the firm
incurredRs.10000 on its repair also. What will be the book value?
a Rs.2 lac, b Rs.2.03 lac, c Rs.2.13 lac, d Rs.1.93 lac
38 The pass book of current account of a firm has been showing a balance of Rs.1 lac. It is observed that bank had paid fee of
Rs.3100 directly to the debit of account of the firm as per a standing instruction. What will be balance as per cash book? - a.
Rs.96900, b Rs.97000, c Rs.103100, d Rs.102400
39 In the pass book of the bank account of a firm, the balance isRs.10000 and it is observed that the bank has credited
Rs.40 as interest. With a view to reconcile the pass book and cash book, the said amount:
a will be added to the cash book balance, b will be deducted from the pass book balance
c will be added to the pass book, d a or b
40 A firm owes Rs.1000 to a supplier of goods which has beenomitted to be recorded. The credit side of the trial
balance should be Rs.191000. What it is presently? a.190000, b 192000, c 194300, d 193400
41 A company issued 2 lac shares of Rs.10 each and chargedpremium of Rs.4. What will be the amount of paid up
capital of the company?- a Rs.20 lac, b Rs.24 lac, c Rs.16 lac, d Rs.2 lac
42 In the above problem what will be amount of tangible net worth I company had incurred Rs.100000 as issue
expenses? a Rs.28lac, b Rs.20 lac, c Rs.27 lac, d Rs.19 lac
43 A company comes out with a public issue of 10000 shares of.Rs.10 each payable as Rs.3 with application, Rs.3 on allotment
and Rs.4 as final call. Company has received application money from all but allotment money has not been received for 500 shares. What is the
amount of paid up capital. a Rs.60000, b R s . 3 0 0 0 0 , c Rs.100000, d Rs.30000
44 What is the amount of subscribed capital in the above problem ?
a R s . 6 0 0 0 0 , b Rs.80000, c Rs.1 lac, d Rs.70000
45 In the above problem, what is the amount of calls in arrears ? aRs.500, b Rs.5000, c Rs.1500, d Rs.2500
46 A firm had purchases of Rs.160000, direct expenses Rs.20000,Sales of Rs.3 lac and other expenses of Rs.30000. The
depreciation on machinery worth Rs.48000 is chargeable at 20% SLM for the year. What will be net profit? a. 81200 b
79800, c 80400 d 85000
47. What kind of account is a trial balance?a) Real account, b) Personal account, c) Nominal account, d) List of balances in
various accounts
48 Which of the following kinds of accounts is a goodwill account?
a) Personal account b) Real account, c) Nominal account d) Trial balance
49.The total of credit side of trial balance is showing a balance ofRs.88000 and the sales book is undercast by Rs.2000.
Whatshould be the actual balance after rectification of the error?
a) Rs.86000 b) Rs.88000 c) Rs.90000, d ) None of the above
50. Opening stocks of a firm are Rs.17000, indirect expenses Rs.10400, purchases Rs.61400 and closing stock Rs.18000. If the
direct expenses are Rs.9600, what will be the amount of cost of goods sold?
75000 b 70000, c. 68000 d 65000
Answer
1 C 2 A 3 A 4 A 5 B 6 B 7 B 8 C 9 A 10 B
1
11 A 12 C 13 C 14 A 15 A 16 A 17 C 18 B 19 B 20 D
21 C 22 B 23 A 24 A 25 B 26 C 27 A 28 A 29 A 30 B
31 C 32 A 33 C 34 A 35 D 36 C 37 B 38 A 39 DS 40 A
41 A 42 C 43 A 44 C 45 C 46 C 47 D 48 B 49 C 50 D
TEST YOURSELF -3
01. When simple rate of interest is calculated, the interest rate %age is expressed as:
a. Rate/100, b Rate x 100, c 100 / Rate, d 1+ rate 1100
02 Identify a personal account out of the following: a. commission paid account, b machinery account,
c income accrued but not received account, d cash account
03 In the case of loan obtained from the bank, the amount repayable is represented by the value and the amount taken
represents the value: a present, future, b future, present, c present, present, d future, future
04 Which of the following is not true:a principal = amount minus simple interest, b amount = principal plus simple
interest, c amount = principal + (principal x interest rate% x time), d none the above
05 A principal amount of Rs.40000 becomes Rs.44400 at simple interest rate of 2.75% p.a. in a period of:
a 2 years, b 3 years, c 4 years, d 5 years
06 Amount = Principal (1+0" is the formula for calculation of:
a simple interest, b floating interest, c compound interest, d annuity
07 In which of the following, normally, the closing stock is not included:
a trial balance, b profit and loss account, c balance sheet, ,d none of the above
08 In the context of Rule of 72, which of the following is correct:
a if amount of principal is divided by 72, it gives the rate of interest and period, to double the principal
b if 72 is divided by the principal, it gives the rate of interest andperiod to half the principal
c if 72 is divided by the rate of interest, it will provide the period todouble the principal
d if 72 is divided by the period, it will provide the rate of interest, tohalf the principal
09 Where regular payments are required to be made or received for a fixed period of time in the beginning of each
period interval, this is called:
a perpetuity, b ordinary annuity, c annuity due, d sinking fund
10 Mr.Satish has decided to invest Rs.7500 every year for the next 3years at prevailing rate of 10% p.a. Calculate the present
value of the amount he is to receive at the end of the period:
a 18650, b 16850, c 19560, d 17550
11 Which of the following statement is correct:
a present value of annuity due is lower than the present value ofordinary annuity.
b present value of annuity due is higher than the present value of
ordinary annuity.
c present value of annuity due is equal to the present value of
ordinary annuity.
d present value of annuity due can be higher or lower than the
present value of ordinary annuity depending upon the circumstances.
12 The payment side of the cash book is overcast by Rs.500 and starting point is overdraft as per passbook.
a the amount would be subtracted, b the amount would be added, c the amount will neither be added nor
subtracted, d the amount will be either added or subtracted.
13 Which of the following statements is correct in the context ofinterest rate:
a compound interest is cheaper than the simple interest, b less frequent is the period of compounding, higher is the
amount ofinterest, c frequent the period of compounding, higher is the amount ofinterest, d the effective rate is
always less than the given annual compoundrate.
14 When a bond matures, its maturity value is known as:- a maturity value, b redemption value, c
face value, d coupon value
15 The coupon rate is (which of the following is correct)a rate of return on a debenture, b fixed rate of interest on a
bond, c yield to maturity on a bond, d current yield of the bond
16 Which of the following best matches the description of a zerocoupon bond:
a it is issued at par in which interest is included and not paid in cash, b it carries a fixed rate of interest
c it is issued at a discount to face value, without any interestpayment, d any of the above
17 On which of the following instruments only interest is paid and theinstrument has no maturity period:
a annuity, b perpetual bond, c negotiable bond, d zero coupon bond
18 A bond issued for Rs.10000 for 5 years carries a coupon of 15%. With current market interest of 10%, what is the value of
the bond:a 11974, b 13068, c 11896, d 10470
19 When a firm is not been able to locate the difference in the totals oftrial balance and wants to prepare the final accounts:
a it will ignore the difference, b the difference will be placed in the suspense account, c the difference will be placed in
any account having substantialbalance, d the difference will be adjusted to the capital account
20 Interest rate elasticity is calculated as under:
a %age change in maturity value of bond in period t / % change inthe yield to maturity for a bond I
b %age change in price of bond in period t / % change in the yield to maturity for a bond I
c %age change in price of bond in period t / % change in the maturity value for a bond I
d total age change in price of bond in period t I % change in the yield to maturity for a bond
21 Ramesh has the option of investing Rs.60000 at 10% p.a. with
annual compounding for 3 years. it will fetch him maturity value of Rs.96000. What will be the gain or loss of
Ramesh in terms of the present value.
a Rs.19600 loss, b Rs.22070 loss, c Rs.16090 profit, d Rs.16140 profit
22 Which of the following is a correct statement:
a conversion of future value into present value, at a given discountrate, is called compounding
b conversion of present value into present value, at a given discount rate, is called discounting
c conversion of future value into present value, at a given discount rate, is called hedging
d conversion of present value into future value, at a given discount rate, is called compounding
23 A difference (deficit of surplus) between the total amount of
present value of future cash flows and initial investment in the project is called:
a internal rate of return, b net present value, c pay back, d return on the project
24 An investment of Rs.140000 is made in a project that generates a profit of Rs.60000 each in the 1st year 2nd year 3rd
year and 4th year. What is internal rate of return (IRR) of the project:
a 2Z98%, b 23.22%, c 24.65%, d 25.68%
25 On the basis of Internal Rate of Return, under what situation aproject should be taken up for investment:
a when IRR = market interest rate, b when IRR < capital cost, c when IRR > capital cost, d
when IRR = capital cost
26 In which of the following methods of depreciation, the amount ofdepreciation remains same throughout the life of the
asset: amachine hour method, b written down value method, c straight line method,
d diminishing balances method
27 An equipment costing Rs.1 lac with a useful life of 5 years was purchased. Its salvage value is estimated at Rs.10000. What
is the amount of depredation for the 2nd year and 5th year at double declining balance method.
a 24000, 2960, b 25000, 3000, c 26000, 3140, d 28000, 3360
28 The depreciation under sum of year's digit (SYD) is calculated withthe help of which of the following:
a (written down value — salvage value) x (remaining useful life / sum of year's digit )
b (original cost — salvage value) x (sum of year's digit / remaining useful life)
c (written down value — salvage value) x (sum of year's digit / remaining useful life)
d (original cost — salvage value) x (remaining useful life / sum of year's digit )
29 An equipment has original cost of Rs.100000 with a salvage value of Rs.25000 and useful life of 5 year. Calculate
depreciation for the 2nd year by using sum of year's digit (SYD) method.
a 20000, b 22000, c 25000, d 26600
30 Which of the following statement is correct in the context of book keeping and accounting:
a accounting deals with recording of transactions of business and book keeping deals with the interpretation,
b book keeping deals with recording of transactions of business and accounting deals with the interpretation,
c book keeping and accounting deals both with recording of transactions of business and their interpretation,
d book keeping deals with recording of transactions of business and accounting deals with the audit of those transactions.
31 Which of the following accounting concept is observed at reportingstage and not at the recording stage:
a money measurement concept, b cost concept, c consistency concept, d dual aspect concept
32 The valuation of assets is done at their cost price or market price,as per which of the following accounting standards:
a. money measurement concept, b going concern concept, c cost concept, d dual aspect concept
33 Prepaid expenses and outstanding expenses are taken intoaccount by a firm on the basis of which of the following
concept:
a money measurement concept, b accrual basis of accounting, c cost concept, d dual aspect concept
34 Accounting standards are prescribed by:a Govt. of the country, b Central Bank of the country, c
Professional accounting bodies of the country, d Tax departments of the country
35 Which two accounts in the following financial transactions do notmatch:a rent paid to landlord — rent & cash,
b goods given as a free sample — sales & advertisement, c goods lost in transit — abnormal loss & trading, d
purchase of computer from XYZ on credit — computer & XYZ.
36 Out of the following accounts, which one is a personal account:a expenses made for advertisement, b
interest received from X, c commission payable to Y d rent paid to the landlord
37 Which among the following is a book of prime entry (a) journal (b)cash book (e) subsidiary books
a a and b only, b b and c only, c a and c only, d a to c all
38 Which of the following is a rule for debit and credit in case of a realaccount:
a debit the giver and credit the receiver, b debit what comes in and credit what goes out,
c debit all expenses and credit all incomes, d debit all assets and credit all liabilities
39 A firm has purchased a patent right from a reputed company. This will be treated as:
a real account, b personal account, c personal account in representative category d nominal account
40 Which of the following is not a method of preparation of trialbalances:

a totals method, b balances method, c totals and balances method, d none of the above
41 A double column cash book records which of the following: a cash and discount transactions, b cash and credit
transactions, c cash and income transactions d cash and petty cash transactions
42 When amount is paid to the petty cashier, this is called:a cash advance, b imprest amount, c
petty cash amount, d any of the above
43 The periodical totals, monthly or weekly, of the purchase book is: a. posted to the credit of credit book,
b. posted to the debit of credit book, c posted to the debit of purchase book, d posted to the debit of sales book
44 Which of the following does not match:
a sales return book records return of goods to the customers, bsales return book records return of goods by the
customers, c purchase return book records return of the goods to the supplier, d none of the above
45 When the credit side of the cash book is undercast, it has thesame effect as over casting of : a credit side of pass-
book, b debit side of cash book, c debit side of pass-book, d there is no relationship between the two
46 The bank reconciliation statement is prepared to reconcile thefollowing:
a difference in the pass book and cash book, b difference between the opening and closing balance of cash book,
c difference between the opening and closing balance of pass book, d difference in the cash and bank column of the cash
book.
47 Which of the following does not match:
a when subscription is made by the bank, there is a debit entry in thepass book debiting the firm's account
b when cash is deposited in the bank, there is a debit entry in the cash book debiting the bank
c when a customer directly deposits the amount, bank is credited in the cash book. none of the above
48 Bank charges of Rs.100 have been recorded twice in the cashbook. if the pass-book showing debit balance is taken as
starting point:
a Rs.100 will be deducted, b Rs.100 will be added, c Rs.200 will be added, d Rs.200 will be deducted
49 Which of the following statement does not match in the context oftrial balances:
a trial balances take care of arithmetic accuracy
b in the trial balance, the balances of liabilities are recorded on the debit side
c in the trial balance, the balances of expenses are recorded on the debit side
d in the trial balance, the balance of capital account are recorded in the credit side.
50 Debit and credit totals of each ledger account are shown in the trial
balance instead of the outstanding balance, against the name of each account. It is called:
a trial balance, b net trial balance, c gross trial balance, d any of the above
51 Expenses incurred on wages paid to a labourer of the factory, havebeen debited to wages account, while his services
have been used for construction of factory building. This is:
a. Compensating error, b error of commission, c error of omission, d error of principle
52 Firm ABC purchased a new machinery and expenses incurred on its transportation have been debited to the cartage account.
This will affect: a trading & manufacturing account and balance sheet, b profit and loss account and
balance sheet c only profit and loss account, d only balance sheet
53 Firm XYZ purchased goods worth Rs.20000 from P & Company and these have been routed through sales book as Rs.10000.
Therectification of this will be through the following journal entry:
a debit purchases Rs.20000 and credit sales Rs.20000, b debit sales Rs.20000 and credit purchases Rs.20000
c debit sales Rs.10000 and credit P & Company, d debit sales Rs.10000 and debit purchase Rs.20000 and credit P &
Company Rs.30000
54 A firm had written off Rs.3000 as a bad debt of Z and the amount recovered from him later on has been credited to his
account. Rectification of this error will result into: a decrease in the debtors, b decrease in the profit, c
decrease in the capital, d increase in profit leading to increase in capital
55 Find out, which expenditure is wrongly classified:
a purchase of goods — revenue expenditure, b purchase of machinery — capital expenditure,
c payment of technical fee for selection of machinery for a project -revenue expenditure, d none of the above
56 A firm incurred substantial marketing expenses to expand theirmarket reach. This will be classified as:
a revenue expenditure, b deferred revenue expenditure, c capital expenditure, d any of the above
57 When trade discount is received by a firm, it is shown as:
a income in the trading account, b a deduction from the sales in the trading account, c a deduction from purchases
in the trading account, d an addition to the purchases in the trading account
58 There was fire in the stock godown of Firm-B and stock worth Rs.2 iac is damaged. The insurance company makes payment of Rs.1.50 lac as
a full and final payment of the claim. The balance of amount of Rs.0.50 lac:
a will be debited to net loss in the profit and foss account, b will be debited to abnormal loss account and credited to trading account,
c will be credited to abnormal loss account and debited to trading account,
d will be debited to gross loss in the trading account.
59 Which of the following error may result in disagreement of trial balance:
a error of omission, b error of commission, c compensating error, d error of principle
60 What type of accounts, do appear in the balance sheet, out of the following:
a real and nominal, b real and personal, c personal and nominal, d real, personal, nominal
61 Which liabilities are not included in the totals of a balance sheet but their mention is made in the balance sheet: a Intangible liabilities,
b Fictitious liabilities, c current liabilities, d contingent liabilities
62 A firm has a liability on account of disputed claim made by another firm. This will be shown as :
a.Intangible liabilities, b Fictitious liabilities, c current liabilities, d contingent liabilities
63 The net profit is transferred to balance sheet in a firm by way of the following journal entry:
a debit trading and manufacturing account and credit capital account, b debit trading account and credit capital
account, c debit profit & loss account and credit capital account, d any of the above
64 The entries passed for closing all income and expenses accounts at the end of a trading period are called:
a closing entries, b appropriation entries, c adjustment entries, d opening entries
65 The historical cost in the context of inventory valuation includes (a)cost of purchase (b) cost of conversion (c) other costs
incurred for bringing the inventory.
a a and b only, b b and c only, c a and c only, d a to c all
66 Gross profit + opening stocks + purchases + directed expenses closing stocks
a Cost of sales, b Cost of production, e Sales, d Any of the above
67 Which of the following in not an operating Expenses
a Advertisement Expenses, b Depreciation expenses, c General Manger salary, d Loss on sale of
motor car
68 Debit balance in a personal account means amount _and credit balance means amount
a receivable, payable, b payable, receivable, c receivable, receivable, d payable, payable
69 The insurance of plant machinery is renewed by the firm on Feb 01, 2008 for one year. The firm closes its books as on Mar
31. The cost of premium beyond Mar 31, 2008, would be debited to:
a insurance expenses, b outstanding insurance, c prepaid expenses, d there is no need for any adjustment
70 On a sale of Rs.2 lac, the firm was to pay discount to the buyer(M/s Kala Niketan & Co) @ 2% but it was not paid. The
auditors have suggested to the firm to make provision. What journal entry will have to be passed:
a debit prepaid expenses and credit discount account, b debit discount and credit Kale Niketan & Co
c debit discount and credit outstanding discount, d debit outstanding discount and credit Kala Niketan & Co
71 M/s XYZ has the outstanding debtors of Rs.50000. It has baddebts of Rs.2000 and provision for bad debts at Rs.3000.
Due to problems in the industry, the firm decides to make provision @ 7.5%. The additional provisions will be:
a 750, b 2750, c 3750, d 5750
72 The manager of a firm is entitled to 10% commission on profits
before charging such commission. He earns a commission of Rs.20000 on the profit. The profit before charging this
commission is: a 2 0 0 0 0 0 , b 218000, c 220000, d 222000
73 The proprietor of a firm has taken goods for personal use, the sale
price of which is Rs.4000. These goods were purchased for an amount that provides 25% profit on sale. What journal
entry would be passed. : a debit drawing account and credit sales account for Rs.4000, b debit drawing account
and credit purchase account for Rs.4000, c debit purchase account and credit drawing account for Rs.1000,
d debit drawing account and credit purchase account for Rs.3000
74 2nd hand machine was purchased by the firm ABC for Rs.70000 and an expenditure of Rs.30000 incurred on overhauling.
Depreciation is charged at 15% on the original cost each year. The machine was found unsuitable at the end of 3rd
year and was sold for Rs.40000. : a the firm made a profit of Rs.1500, b the firm made a profit of
Rs.15000, c the firm incurred a loss of Rs.1500, d the firm incurred a loss of Rs.15000
75 A bill of exchange accepted by the drawee was discounted by the drawer with the bank and was dishonoured later
only. The journal entry for noting charges will be as under:
a debit noting charges credit the bank, b debit bank and credit noting charges, c debit noting charges and credit
the drawee, d debit drawee and credit the bank
76 The stocks that are lying unsold with the consignee under a consignment sale are value at: a cost price of the stock,
b sale price of the stock, c cost price + recurring and non-recurring expenses incurred by the consignee,
d cost price + non-recurring expenses incurred by the consignee and the consignor
77 The goods were sent to the consignee and were lost in transit. The consignor did not get the goods insured for transit
risk. The abnormal loss will be met debiting to:
a profit and loss account, b trading account, c stock account, d loss to consignment account
78 Stock of Rs. 4000 is destroyed by fire. It was fully covered byinsurance. Accounting entry is:
a Dr. Stock A/c 4000, Cr. Trading A/c 4000, b Dr. P & L A/c 4000, Cr. Trading A/c 4000
c Dr. Insurance Claim 4000 Cr. Trading A/c 4000, d Dr. Trading A/c 4000, Cr. Insurance Claim A/c 4000
79 in the trial balance, there is an item reading interest rebate. It willbe transferred to which of the following:
a trading & manufacturing account, b profit and loss account,
c profit and loss appropriation account, d balance sheet
80 A business has assets of Rs. 44312 and owner's equity is Rs. 13120. What is the amount of other liabilities?
a 31192, b 57522, c 44312, d None of these
81 Goods have been supplied by R. Sharma and Son's for Rs. 85Z01-but while posting, the amount has been put on the
credit side of S. Sharma & Sons. The credit side of the trial balance total is Rs. 43570. Assuming no other error, what should be
the total of credit side of the trial balances? a 41870, b 4 4 4 2 0 , c 4 3 5 7 0 , d 42720
82 In a business, the net assets as on Jan. 1st are Rs. 6000 and onJanuary 31st are Rs. 7500. If withdrawls by owner
during January are Rs. 1000, the net income during January is:
a 2500, b 1500, c 500, d None of these
83 X gets a car on hire purchase basis costing Rs.250000. The down payment is Rs.50000. The balance is to be paid in 24
monthly instalments at 10% rate of interest. The EMI would be:
a Rs.11500, b Rs.11000, c Rs.10000, d Rs.9500
84 A company comes out with a public issue of 10000 shares of Rs.10 each on which application money @ Rs.5 is received.
But allotment money on 500 shares @ Rs.5 is not received. If the share capital is forfeited, what is amount of share capital
to be forfeited?a R s . 5 0 0 , b Rs.1000, c Rs.5000, d Rs.2500
85 Tangible Net worth is:- a Owners equity -Intangible Assets, b Owners Equity — Long term liabilities,
c Owners Equity - Tangible Assets, d None of these
86 An entry representing bad debt of Rs.10000 appears outside the trial balance. How these are to be adjusted?
a debit bad debt and credit profit and loss account, b debit debtors' account and credit profit & loss account
c debit bad debt account and credit debtors' account, d debit cash account and credit debtors' account
87 Posting of wrong amount in the ledger : a Causes the ledger to be out of balance, b Does not cause trial
balance to be out of balance c Causes the trial balance to be at out of balance, d none of these
88 A firm receives commission in advance. Where will this transaction be classified:
a. real account (tangible), b personal account (liability), c - personal account (asset), d real account (intangible)
89 Which of the following is not a balance sheet equation:
a. Asset = Liabilities + capital, b Capital = Assets + liabilities, c Liabilities = assets – capital, d Assets = equities
90 A firm has capital of Rs.4 lac and liabilities of Rs.1 lac. Its lossesare Rs.0.50. The assets are equal to:
a 5.00 lac, b 4.50 lac, c 1.50 lac, d 0.50 lac
91 Which of the following is an error of principle:
a on purchase of goods in cash, seller's account credited, b purchase of furniture debited to purchase account,
c wrong amount posted while the journal entry was correct, d none of these.
92 Interest paid on capital of the partners by a firm would becategorized as:
a. expenditure for the business, b loss for the business, c expenses for the business, d gain for the business
93 Closing Stock appearing in the trial balance indicates that:
a. Opening Stock appear outside the trial balance, b Opening Stock has been adjusted into the Stock figure
c. Purchases have been included in the Closing Stock, d Closing Stock will appear only in the trading account
94 The Income Tax deducted from Interest paid on debentures isshown on the
a Asset side of the Balance sheet, b Liability side of the Balance sheet, c Credit side of the P &C A/c
d Debit side of the P& C A/c
95 If preference Shares are redeemed at premium, such premium may be provided out of the
a. Share premium A/c, b Proceeds of fresh issue of shares, c Share forfeited No d Any of the above
96 The amount listed for Cash in the trial balance represents
a The cash at the beginning of the period, bCash receipts during the period, c The balance of cash on
the date of trial balance, d Cash receipts minus disbursement during the period
97 Sales — direct expenses — opening stocks — purchases + closing stocks =
a. net profit, b) gross profit, c) cost of sales, d) any of the above
98. A company raised funds from public through a public issue at premium. The amount premium can be used for (a) issue of
fully paid bonus shares (b) paying premium on redemption of preference shares (c) buy back of shares (d) writing off
preliminary expenses.- a a, b and c only, b b, c and d only, c a, c and d only, d a to d all
99 When shares are allotted to employees and directors to reward them for a consideration other than cash, these are called:
a. equity shares, b employees' stock option, c sweat equity, d management quota shares
100 Which of the following is not correct in the context of bank balance sheet:
a the amount of bad debts and provision for bad debts is charged under the heading 'provision and contingencies, b
the amount of bad debts and provision for bad debts is charged in the profit and loss account,
c in the balance sheet the amount of advances is shown after deducting the bad debts and provisions from bad debts,
d none of the above
101 The excess of credit side of an account over the debit side of thesame account shows:
a) credit balance, b) debit balance, c) overdraft balance, d) any of the above
102 A balance sheet is defined as:
Statement, prepared with a view to measure the exact financial position of a business on a certain fixed date,
Statement for the particular year, c Any of the above, d None of the above
103 Purchase of machinery by a firm for cash would result in:a increase in the assets, b increase in the liabilities,
c decrease in the assets, d there will be no change in the total amount of assets
104 What is the basic reason for committing error of principle?
a Incorrect posting, b Lack of knowledge about capital and revenue items, c Incorrect
balancing of ledgers, d Incomplete records
105 What is the time period during which the shares can be issued at adiscount after permission of Central Govt.:
a 2 months, b 3 months, c 4 months, d 6 months
106 Claims against a firm raised by its creditor but not acknowledged by the firm would be classified as:
a intangible asset, b current liability, c contingent liability, d no where
107 Which of the following account will always have a debit balance:
a real accounts, b personal accounts, c nominal accounts, d all the above
108 A company purchased a machinery for Rs.2.30 lac. The vendor was paid advance of Rs.20000 and the balance was paid to
him as allotment of share of Rs.10 at a premium of Rs. 0.50. What is the no. of shares allotted?
a 20000, b 18000, c 10000, d 5000
109 Accrued income is:a an asset, b a liability, c income, d none of the above
110 A firm paid rent amounting to Rs.2000 but it credited the rent account. Now the entry would be rectified:
a debit the rent account by Rs.2000, b debit the cash account by Rs.2000, c debit the rent
account by Rs.4000, debit the cash account and credit the rent account by Rs.4000
111. A firm purchased machinery worth Rs.30000 on April 01, 2000, Rs.20000 on Oct 01, 2000 and Rs.10000 on July 01, 2001. On Jan
01, 2002 it sold 1/3rd of the machinery purchased on April 01, 2000 for Rs.3000. The annual closing period of the firm is December.
What will be the amount of depreciation during the first year, on SLM basis, if expected useful life is 10 years? a) 2250, b) 2400,
c) 2650, d) 2750
112.In the above problem, what is the profit or loss on sale of themachinery?
a) Profit Rs.5250, b) Loss Rs.5750, c) Profit Rs.5750, d) Loss Rs. 5250
113 In the same problem, what is the written down value as onDecember 31, 2002?
a) Rs.37000, b) Rs.37500, c) Rs.38000, d) Rs/38500
114 What is the amount of gross profit when net purchases are Rs.50000, net sales Rs.80000 and sales returns Rs.10000? a)
Rs.31000, b) Rs.20000, c) Rs.30000, d) Rs.29000
115,A company decides not to draw Articles of Association of its own. Which of the following would apply to the company? A)
Table A of Companies Act, b) Table B of Companies Act, c) Table E of Companies Act,
d) Nothing would be applicable.
116 The pass book of a firm shows overdraft of Rs.10000. It isobserved that the firm had issued a cheque of "s.20000
which has not been presented, bank has charged interest on overdraft for Rs.1500, cheque of Rs.20000 deposited with the bank
but not credited and insurance of Rs.100 has been debited by the bank.What is the balance as per cash book? a Rs.8400 cr, b
Rs.8500 cr, c Rs.8400 dr, d Rs.8200 cr
117. The cash book of a firm is undercast by Rs.700. What would be the change in the pass book?
a credit balance would be increased by Rs.700, b Credit balance would be reduced by Rs.700
c balance would be increased by Rs.700, d there would be no effect
118. A firm has debited wages of Rs.5000 paid labour on account of installation of machinery to wages account. The debit side
of trial balance should show total of Rs.184504. What it will be showing presently:
a Rs.189504, b Rs.179504, c Rs.184504, d none of the above
119. A firm debited the wages of Rs.2000 to the salary account. The gross profit of the firm is Rs.102000. What should be the
correct amount of gross profit? a Rs.104000, b Rs.102000, c Rs.100000, d Rs.98000
120. A firm debited the wages of Rs.10000 paid on account of construction of building to the wages account. Its net profit is
Rs.52000 presently. What it should be:
a Rs.42000, b Rs.52000, c Rs.62000, d Rs.72000
ANSWER
1 A 2 C 3 B 4 D 5 C 6 C 7 A 8 C 9 C 10 A
11 B 12 B 13 C 14 B 15 B 16 C 17 B 18 C 19 B 20 B
21 D 22 D 23 B 24 D 25 C 26 C 27 A 28 D 29 A 30 B
31 C 32 B 33 B 34 C 35 B 36 C 37 A 38 B 39 A 40 D
41 A 42 B 43 C 44 A 45 C 46 A 47 C 48 B 49 B 50 C
51 D 52 B 53 D 54 D 55 C 56 B 57 C 58 B 59 B 60 B
61 D 62 D 63 C 64 A 65 D 66 C 67 D 68 A 69 C 70 C
71 A 72 C 73 D 74 D 75 D 76 D 77 A 78 C 79 D 80 A
81 C 82 A 83 C 84 C 85 A 86 C 87 C 88 B 89 B 90 B
91 B 92 C 93 B 94 B 95 D 96 C 97 B 98 D 99 C 100 D
101 A 102 A 103 D 104 B 105 A 106 C 107 A 108 A 109 A 110 C
111 D 112 D 113 D 114 C 115 A 116 A 117 A 118 A 119 A 120 C
TEST YOURSELF-4
01 Which of the following accounting standards do not match in the context of banking companies' accounts:
a AS-21 : consolidated statements, b AS-17 : Segment reporting, c AS-18 : Related party disclosure,
d AS-15 : payment of compensation to employees
02 In the income and expenditure account, transactions relating to are included:
a current year only, b previous year only, c subsequent year only, d current, previous and
subsequent years
03 When the drawee pays the amount of the bill before its due date it is called:
a endorsing the bill, b honouring the bill, c retirement of the bill, d none of the above
04 When a bill is paid before due date and the drawer gives some allowance to the drawee, this is called:
a discount on the bill, b retirement of the bill at a discount, c. rebate, d any of the above
05 The books of a firm are closed but it is found that a purchase of Rs.1000 from Atma Ram Sons has been passed through the
sale book for Rs.100. What is the rectification entry, after preparing the trial balance.
a sales account debit Rs.900 to Atma Ram Sons, b purchase account debit Rs.900 to Atma Ram Sons
c sales account debit Rs.100, purchase account debit Rs.1000 to Atma Ram Sons Rs.1100
d sales account debit Rs.1000, purchase account debit Rs.100 to
Atma Ram Sons Rs.1100
06 For which of the following, an adjustment entry will be required:
a expenses paid but not due, b expenses paid which were due, c income received which was due,
d all the above
07 Which of the following statement is correct regarding single entry system:a it is a system in which only one entry is
made, b it is a system where the principles of double entry are not beingfollowed, c it is a system that takes into
account only cash transactions, d none of the above
08 A machinery is purchased for a total price of Rs.1 lac with expected useful life of 5 years. What is the amount of depreciation
at double declining balance method for calculation of depreciation, in the 2"d year:
a Rs.20000, b Rs.24000, c Rs.30000, d Rs.40000
(Hint-Rate of depreciation at double rate is 40%. Depreciation is calculated on the balance value of the assets in the
beginning of 2nd year i.e. on Rs.60000)
09 A car is purchased for Rs.310000 with a scrap value of Rs.60000 at the end of 5 years' useful life during Sept 2008. What is
the written down value as on Mar 31, 2009 (which is closing date of financial year).
a 310000, b 260000 c 250000, d 200000
10 The amount of undercasting of credit side of bank column of the cash book will be deducted from the overdraft as per: a.
cash book, b pass book, c both the books, d none of the above
11 A firm had written off a sum of Rs.5000 as bad debt. However, in the following year a sum of Rs.3500 was received as
recovery. What will be the impact of this recovery :
a reduce the debtors by that amount, b increase the debtors by that amount, c increase the
profits by that amount, d increase the liability by double the amount
12 If a two-sided error has taken place, it will be corrected: a. By passing ledger entry, b. By wrongly debit & Credit
c by passing a journal entry, d none of the above
13 After preparation of trial balance it is observed that the goodsamounting to Rs.10000 sold to Ashok & Sons were
posted as Rs.1000 to their account. The rectification entry will be:
a suspense account debit to Ashok & Sons Rs.9000, b Ashok & sons debit to sales account Rs.9000
c sales account debit to suspense account Rs.10000, d Ashok & sons debit to suspense account Rs.9000
14 When a company issues shares and the calls amount in instalments i.e. application money, allotment money, call money, the
amount of single call :
a should not be less than 25% of the face value, b should not be less than 20% of the face value
c should not be more than 25% of the face value, d should not be more than 20% of the face value
15 The shares of Rs.100 each, are issued at 10% discount and are forfeited for non payment of call money of Rs.20 each.
Which of the following journal entry will not be correct:
a forfeited shares account-credit Rs.60, b discount on issue of shares — cr Rs.10
c share capital account debit Rs.100, d share 1st and final call — debit Rs.30
16 What adjustment entry will be passed for the goods taken by the promoter out of the goods purchased for the business: a
purchase account debit to credit the drawing account, b capital account debit to credit the purchase account, c
drawing account debit to credit the purchase a/c, d purchase account debit to credit the capital account
17 Forex rate in Delhi is 1 US $ = 48.80/90. In London the 1 Euro =US $ 1.60/65 pound sterling. What is the cross rate
for Euro. a 78.08, b 77.92, c 77.65, d 77.02
18 Spot rate is 1 US $ = 48.10 and 2 months forward is available at 1US = 48.50.
a.Forward is at a premium, b Forward is at a discount, c Spot is at a premium, d Spot is at a discount
19 Which of the following does not match: a purchase of machinery for sale — revenue expenditure
b advertisement expenses — deferred revenue expenses, c payment of wages to labourer — revenue
expenditure, d purchase of goods for trade — capital expenditure
20 If there is overdraft with the bank, the bank column of the cashbook will show: a a credit balance, b a debit
balance, c either a debit balance or a credit balance, d neither a debit balance or a credit balance
21 The trial balance in which the total of debit side and total of creditside of each ledger account is taken into account is
called: a main trial balance, b net trial balance, c trial balance, d gross trial balance
22 The pricing method under which the price is determined by subtracting an appropriate gross mark up from the sale price, to
an unrelated 3rd party, with the appropriate gross margin being determined by examining the conditions, under which the
goods are sold and comparing the said transaction to other 3rd party transaction, is called:
a comparable uncontrolled price method, b cost plus method, c re-safe price method, d non-traditional method
23 A firm has been following the practice of not charging annual depreciation. At the time of sale of assets, it shows the
difference between sale price and original cost as gain or loss in the year of sale. Which accounting concept is being
violated. a.consistency concept, b conservatism concept, c money value concept, d periodicity concept
24 Which of the following is correct formula for calculation of futurevalue of an annuity due (beginning of period).
a C x {(1+r)"-1/r}, b C x {(1+r )" -1/r} x (1+r), c C / {(1+r)n-1/r}x (1 +r), d C x {(i+r )n -1/r} / (1+r)
25 X is to receive Rs.5000 at beginning of every year for 5 years at 5%. How much amount he is required to invest now (Hint :
calculate the present value of annuity due).a 23630.50, b 2 2 7 2 9 . 6 0 , c 21942.15, d 2 1 3 0 8 . 7 5
26 When a firm makes payment to another firm by way of a cheque, the bank debits the same, after a time lag when
cheque is presented. In the meantime, if cash book balance is to be reconciled with the pass-book balance, in the balance
of cash book, the amount of cheque: a is added if the firm has a current account, b is deducted if the firm has a current
account, c is added if the firm has a overdraft account, d is added in all circumstances
27 Balance in cash book of a firm is Rs.9500. It is noticed that (a) thepayment side of the cash book is undercast by Rs.200
(b) a cheque of Rs.5000 issued by the firm is not entered in the bank column of the cash book but bank has paid it. The balance
in the pass-book should be: a 9 5 0 0 , b 9300, c 4300, d 4500
28 A firm purchased new machinery for Rs.3.20 lac. It is to charge
depreciation @ 6%, 5% and 4% for 1st, 2"d and 3`d year respectively. At the end of 3rd year, its written down value will be: a
269500, b 271940, c 274400, d 275900
29 A firm paid cartage of Rs.200 on account of transportation of newly purchased machinery to the cartage account. It will
affect which of the following accounts?
a cartage account, b machinery account, c cash account, d cartage and machinery accounts
30 Which of the following transactions will result in increase in assetand increase in liability?
a Payment made to Creditors in cash, b Goodwill account written off, c Issue of Bonus shares d
Machinery purchased on credit
31 When there is favourable balance as per cash book, and thecheque issued but not presented, to reach the balance
in pass book, for this amount would be:
a added, b deducted, c not given any weightage, d none of the above
32 The depreciation has been charged and it has been debited to fixed asset account. It is an:
a error of omission, b error of commission, c error of principle, d compensating error
33 A bond has face value of Rs.100 and coupon of 10%. Its remaining maturity period is 6 years. At 11% YTM, its market value
is: a 96.10, b 95.95, c 95.80, d 94.90
34 The liabilities that are repayable only when business will beterminated are called:
a fixed liabilities, b long term liabilities, c contingent liabilities, d current liabilities
35 For a given difference between YTM and coupon rate of a bond:
a shorter the maturity, greater will be change in price with change in YTM
b longer the maturity, greater will be change in price with change inYTM
c longer the maturity, shorter will be change in price with change in YTM d. no change
36 A bond with a face value of Rs.100 has a maturity period of 5 years. If the YTM decreases to 9%, what will be the
change in the price: a increase 3.9%, b decrease 3.9%, c increase 2.7%, d decrease 2.7%
Problem: Bond-A with a face value of Rs.100 has a coupon of 12% with 6 years' maturity. At YTM of 10%, its market value is
Rs.108.70. Bond-B with a face value of Rs.100, coupon of 12% with a 6 years' maturity carries value of Rs.73.40 for YTM of
20%.
37 If YTM increases by 20%, the market price of Bond-A will changeto:
a 110, b 106, c 100, d 98.40
(Hint: 12 PVIFA (12%,6) + 100 PVIF (12%, 6)
38 Adjustment entry for bad debts is: a Bad Debts Dr. to P & A/c or, b Provision for bad & doubtful a/c
Dr. to Bad Debts, c Bad Debts Dr. to Debtors Cr, d P & L A/c Dr. to Bad Debts Cr.
39 On a bond, the investor is subject to interest rate risk on account of(a) re-investment of annual interest (b) capital loss
on account of change in the value of bond due to increase in market interest rates.
a only (a), b only (b), c a and b both, d none of these
40 If duration of a bond is 5 years, which of the following statement would be true: a its payable after 5 years, b
interest rate risk will disappear on the bond, if the holding of bondis for 5 years c no change in value of bond will
take place within 5 years, d change in price of bond within 5 years will not affect the investor.
41 Which of the following expenses by a firm cannot be taken as partof capital expenditure:
land & building, b plant and machinery, c technical know-how, d none of the above
42 The appraisal method for capital expenditure, under which it isexamined, how much period the invested funds will
come back as cash inflow is called:
a. pay-back method, b rate of return method, c net present value method, d internal rate of return
43 A firm has taken term loan from the bank for construction ofbuilding. It will:
a increase the asset and increase the liability, b increase the asset and decrease the liability, c increase
one asset and decrease another asset, d decrease one asset and decrease one liability
44: The process under which the future value of present cash flows is determined is called:
a. discounting, b compounding, c net present value, d internal rate of return
45 Which of the following is an error of omission.
a wages account debited although services of labour used forbuilding construction
b goods purchased for cash from XYZ and their account credited
c sale of goods made to ABC, but not entered. d an entry of Rs.927 posted as Rs.972.
46: Which of the following is not a source of finance for capital expenditure project:
bank cash credit and trade creditors, b: bank term loan and subsidy from govt, c: institutional term loan and
promoters' equity, d: long term unsecured loans and debentures
Problem: A company invested Rs.5 lac in a project in the year 2000. The pro'ect earns the profits as under:
Project-A Project-B Discount Factor @ 5%
Investment 5,00,000 5,00,000
1 sear profit Nil 30000 0.95238
2" year profit 60000 50000 0.90703
r year profit 80000 160000 0.86384
4''' year profit 120000 170000 . 0.82270
5m year profit 120000 110000 0.78353' -
61h year profit 110000 20000 0.74622
7rh year profit 90000 Nil 0.71068
Total profit 580000 540000
47 Based on the above information, what is the payback period ofProject-A
a 5 years, b 5 years and 2.5 months, c 6 years and 1.33 months, d 6 years and 8.12 months
48 Based on the payback period, what is the payback period of Project-B
a 4 years and 7.63 months, b 4 years and 9.12 months, c 5 years and 2 months
d 5 years and 4.33 month
49 Based on the above information, which project is preferable forinvestment and why:
a Project A with higher payback period, b Project A with lower payback period, c Project B with higher
payback period, d Project B with lower payback period
50 In the above case, what is the accounting rate of return of ProjectA:
a 28%, b 31%, c 33%, d 35%
51 In the above case, what is the accounting rate of return of ProjectB:
a 28%, b 31%, c 33%, d 35%
52 Based on the accounting rate of return, which project is preferablefor investment and why:
a Project A with higher accounting rate of return, b Project A with lower accounting rate of return
c Project B with higher accounting rate of return, d Project B with lower accounting rate of return
53 X wants Rs.340000 to replace his car after 5 years. He wants to save and invest in equal monthly instalments at 12% p.a.
How much money will be deposited every month.
a 4136.80, b 4163.20, c 4182.20, d 4203.40
54 X has been saving Rs.2000 at 10%p.a. compounded annually. What will be amount at the end of 3rd year.
a 6540, b 6620, c 6690, d 6710
55 The profits represent excess of receipts over the payment, as per which of the following accounting methods:
a accrual method, b cash method, c mercantile method, d all the above
56 A company came out with a public issue of 1 lac shares of Rs.10each payable Rs.4 as application money, Rs.4 as
allotment money and Rs.2 as 1st and final call. The company has received applications for 2 lac shares. If 1SI and final call
money is not received on 4000 shares, what will be amount of share capital forfeited?
a Rs. 4000, b Rs.40000, c Rs.20000, d Rs.8000
57 A party draws a bill of exchange in Delhi payable in Bangalore by a foreigner and no sale or purchase has actually taken
place. Such bills are called:
a documentary bills,b foreign bills, c accommodation bills, d usance bills
58 A bill has been received by a drawee X from drawer Y and has been dishonoured and noted. What journal entries will be
passed: in the books of the drawee:
a debit bills receivable, credit Y and noting charges, b debit bills payable, credit noting charges & Y
c debit bills payable & noting charges, credit Y, d debit Y & noting charges, credit bills payable
59 The book in which all particulars relating to bills accepted arerecorded is called Bills (receivable/payable)
book and theentry is posted to the debit of respective (debtor / creditor)
a payable, creditor, b payable, debtor, c receivable, creditor, d receivable, debtor
60 Which of the following statements best explains the relationshipbetween Journal & Ledger?
a First recording in Journal and then posting to ledger completes the double entry of the transaction.
b Journal is the book of original entry where as the ledger is the bookof second entry.
c The Journal is the book for analytical record and the Ledger is thebook for chronological record.
d The process of recording in the Journal is called posting, theprocess of recording in the ledger is called journalising.
61 A company came out with a public issue of 1 lac shares of Rs.10each payable Rs.4 as application money, Rs.4 as
allotment money and Rs.2 as lst and final call. The company has received applications for 2 lac shares. In the problem, which
account would be debited and which account would be credited:
a debit bank account and credit share application account, b debit cash account and credit share capital
account, c debit bank and credit share allotment, d debit share application and credit share capital
62 Accounting system which is associated with the need of the business owners to keep record of their transactions, property
etc, dues they owe and debts others owe them, is :
a. financial accounting, b steward accounting, c cost accounting, d management accounting
63 Accounting system which is used ascertaining the costs with aview to control them and also make assessment of
profitability and efficiency of the business, is : a human resources accounting, b social responsibility accounting,
c cost accounting, d management accounting
64 As per accounting standard No.22, the aggregate of current tax and deferred tax charged or credited to the statement of
profit and loss for the period, is called:
a taxable income or loss, b tax expenses, c deferred tax, d accounting income
65 A cheque issued by a firm is recorded on side of the ____:
a payment, cash book, b receipt, cash book, c payment, journal, d receipt, journal
66 The price at which two unrelated and non-desperate parties wouldagree to a transactions is called:
a cost pricing, b transfer pricing, c opportunity pricing, d arm's length pricing
67 Firm-A sells goods on credit as well cash. For goods worthRs.50000 the payment is yet to be received although
goods were supplied, two months earlier to closing of the financial year.
a if it is not accounted for in the books it will have no effect and no accounting practice will be violated.
b if it is accounted for, the profit will be increased without any reason to do so.
c if it is accounted for, the profit position will be true and fair.
d No accounting practice will be violated by not doing so.
68 A firm sells goods worth Rs.50000 to M/s XYZ in cash. in this case, which two accounts are involved:
a cash account and XYZ account, b XYZ account and goods account, c goods account and cash
account, d incomplete information
69 A firm sells goods worth Rs.50000 to M/s XYZ in cash. In thiscase, while crediting the account, the following principle
will be followed: a. credit the giver, b. credit the receiver, c credit what comes in, d credit what goes out
70 A persons owes some amount to the firm, is called of the firm:
a debtor, b creditor, c customer, d lender
71 Balance as per pass-book is Rs.23000 in the overdraft account ason Sep 30, 2008. It is observed that (a) a cheque of
Rs.3000 deposited by the firm has been received by the bank as dishonoured. (b) bank has debited Rs.50 as cheque
returning charges (c) bank has dishonoured a cheque of Rs.1000 by mistake, which the firm had issued to make payment.
The balance as per cash book should be: a 2 0 9 5 0 , b 21000, c 2 4 0 5 0 , d 2 5 0 5 0
72 Which of the following statement is not correct in the context of
bank reconciliation statement: a cheque issued by a firm is first recorded in the cash book, b cheque
deposited by a firm is first recorded in the pass-book, c direct deposit by a customer of a firm, in
bank account, is creditedby the bank
d direct debit by the bank is later on credited by the firm to bank
account in its books.
73 A company had issued share with face value of Rs.100 + premium of Rs.200. On certain shares, the application money and
allotment money of Rs.40 each has been received but due to non-receipt of 1st call money, few shares have been forfeited.
Which of thefollowing statement is correct:
a debit to share capital Rs.100 per share to be made, b debit to share capital Rs.300 per share to be made
c debit to share capital Rs.80 per share to be made, d debit to share application at Rs.100 to be made
74 The shareholders of a company have a fixed liability to pay, incase of liquidation of the company. It is called:
a company limited by shares, b company limited by guarantee, c company with limited liability
d company with unlimited liability
75 For making adjustment in respect of closing stocks, which of thefollowing is debited:
a purchase account, b trading account, c closing stocks, d balance sheet asset side
76 For which of the following, an adjustment entry will not be required:
a salary of Rs. 3000, paid in advance, b commission due Rs.1000, but not received, c
commission payable Rs.300 during the year, paid, d rent due Rs.2000 but not paid.
77 All the material information relating to business transactions isrequired to be given by a company in its balance, due
to which of the following:
a accounting period concept, b full disclosure concept, c materiality concept, d all the above
78 If commission is received in advance and adjustment entry ispassed, which of the following will not be true:
a it will reduce the commission income, b it will reduce the profit, c it will reduce the net worth
d it will be shown on the asset side of the balance sheet at incomereceived in advance.
79 Which among the following accounting standards deal withinventory valuation:
a AS -2, b AS- 4, c AS -9, d AS 11
80 When a bill is drawn by a party on the other party which of the following accounts is credited :
a bills receivable account, b debtor's account, c creditor's account, d bills payable account
81 If trade discount allowed appears in the trial balance, it will befinally adjusted as :
a debit entry in the profit and loss account, b debit entry in trading and manufacturing account
c asset in the balance sheet, d deduction from sales in the trading account
82 When a firm withdraws money from bank, in the cash book, the amount of withdrawal is:
a credited, bdebited, c no change, d none of the above
83 When a bill is endorsed by the drawer in favour of another party, the drawee is required to debit which of the following accounts :
a bills receivable account, b bills payable account, G no entry is needed, d endorsee's account
84 When loss of stock takes place due to theft or fire etc. it is called:
a total loss, b normal loss, c contingent loss, d abnormal loss
85 A sum of Rs.2500 has been spent by a firm to replace the worn-out parts of the machinery. This will be treated as:
a. revenue expenditure, b capital expenditure, c deferred revenue expenditure, d intangible asset
86 All receipts and payment made in cash, including cheques are recorded in:
a. balance sheet, b income and expenditure account, c receipt and payment account, d profit and loss account
87 Which of the following kinds of accounts are recorded in theledger:
a real accounts, b nominal accounts, c all kinds of accounts, d personal accounts
88 The balance in the pass book is Rs.54000 and it is observed that bank received Rs.2000 through NEFT and also remitted
Rs.13000 through NEFT, as per standing instruction. What is the balance as per cash book:
a 43000, b 65000, c 54000, d 39000
89 If the proprietor has made certain drawings, the profit will becalculated as under:
a amount of drawings will be added back to the capital to find outthe profit
b amount of drawings will'be reduced from the capital to find out theamount of profit
c the amount of drawings has already been accounted for and cashreduced to that extent d none of the above
90 Accounts and auditors' report of a banking company is required tobe published (a) in a newspaper circulating in the
place where the banking company is having its principal office (b) it is to be published within 6 months of close of its financial
year (c) this is requirement of Rule 15 of Banking Regulation (Companies) Rules.
a. a to c all correct, b only a and c correct, c only b and c correct, d only a and b correct
91 The balance in the cash book is Rs.30000 overdraft. It is observedthat a cheque of Rs.2000 has been debited twice by
the bank. Further the bank credited Rs.3500 to the account of the firm by mistake, while this amount was to be credited to
personal account of the partner. What is the balance in the pass book:
a. 35500 credit balance, b 28500 debit balance, c 31500 credit balance, d 28500 credit balance
92 The finance manager of a company receives 10% commission- on the profit after charging commission. The profit of the
company are Rs.3.30 lac. What will be amount of commission of the manager:
a Rs.33000, b Rs.30000, c Rs.27767, d Rs.25987
93 Pre-operative expenses are shown by a company as: a expenditure in the trading account, b expenditure in the profit
loss account, c asset in the balance sheet, d liability in the balance sheet
94 A company comes out with an equity share issue having face value of Rs.10 and charges total Rs.30 for the share. The
amount will be credited to:
a entire amount to the share capital account, b entire amount to the share premium account
c Rs.10 to share capital and Rs.20 to share premium a/c, d Rs.20 to share capital and Rs.10 to share premium a/c
95 A company forfeits 2000 shares of Rs.10 each due to non-payment of 2nd call @ Rs.2. The amount already received is Rs.3
on application, Rs.3 as allotment, Rs.2 as first call. How much amount will be debited to share capital account:
a Rs.2000, b Rs.8000, c Rs.10000, d none of the above
96 Which of the following provisions of Companies Act 1956 are not correct:
a Section 209 - companies to maintain certain books of account, b Section 210 — preparation of final accounts, c Section 211
— balance sheet should exhibit true and fair view ofstate of affair of the company d Part II — Schedule VI prescribes the format
for preparation of profit and loss account.
97 At the end of one year, a sum of Rs.10000 at 6% rate of interest when compounded half yearly becomes:
a 10600, b 10609, c 10613, d 10616
98: For a capital budgeting expenditure, the net present value of aprojectat 18% is Rs.15 lac negative, at 10%, it is Rs.12 lac
positive and at 14%, it is ZERO. The internal rate of return from the project is
18%, as there is deficit, b) 14%, as it is Zero, c) 10% as there is surplus, d) none of the above
99. Expenses necessary to produce goods or service organisation can be classified as:
a. outflow of assets, b decrease in assets, c increase in liabilities, d all the above
100. X has been investing Rs.5000 every year at year end, at 5% for 5 years. How much he will get at the end of 5 years (hint
calculate the future value of an ordinary annuity):
a 26778.20, b 27278.90, c 27628.15, d 28342.25
101 The cost of acquiring a table for Rs.3500 was debited by a firm tothe purchase account. What is the journal entry for
rectification? a Debit cash credit furniture account, b debit furniture account credit cash, c debit furniture credit
purchase account, d debit purchase and credit cash account
102. A firm purchased machinery of Rs.4 lac. For the first year it charged depreciation @ 20% amounting to Rs.80000. On which
of the following methods, the above amount of Rs.80000 might have been calculated:
a) Straight line method, b) Written down value method, c) Any of the above methods, d) None of the above
103. Sales of a firm are Rs.3 lac, the net loss Rs.8000 and gross profitRs.30000. What is the amount of operating expenses?
a) Rs.30000, b) Rs.8000, c) Rs.22000, d) Rs.38000
104 Opening stock is Rs.18000, purchases Rs.78000, cost of goods sold Rs.106000 and sales Rs.149000? What is the extent of
other manufacturing expenses in this problem? a.Rs.10500, b) Rs.10700, c) Rs.11000, d) Rs.10000
105 What is the amount of gross profit when opening stock is Rs.18000, purchases Rs.78000, cost of goods sold Rs.106000 and
sales Rs.149000? a) Rs.44000, b) Rs.43000 loss, c) Rs.42000, d ) R s . 4 3 0 0 0
106 The pass book of a firm has been showing a debit balance of Rs.15110 and it is observed that bank has debited Rs.1440.
What will be the balance as per cash book?
a) Rs.13670 cr, b) Rs.15540 cr, c) Rs.16540 dr, d) Rs.14540 cr
107 A firm has posted an entry of Rs.12000 to sundry creditor while it related to sundry debtors. The total of debit and credit
side of the trial balance is Rs.612000. What it should be after rectification:
Rs.600000, b) Rs.624000, c ) R s . 5 8 8 0 0 0 , d) none of the above
108 A firm sold goods worth Rs.9000 to one Mr. X but the entry could not be posted to his account. The total of debit side of the trial balance is
presently Rs.490500. What it should be? a Rs.490500, b) Rs.499500, c) Rs.481500, d) None of the above
109 A company issued shares and called Rs.3 with application and Rs.7 as allotment money. Allotment money was not received
for 5000 shares which were reissued at a discount of Rs.1 after forfeiture. What will be amount of capital reserve on account of
forfeiture? a. Rs.5000, b Rs.15000, c Rs.10000, d No change
110 What is the cost of goods sold of a firm if its opening stock is Rs.1lac, net purchases Rs.9.50 lac, direct expenses Rs.1.50 lac, closing stocks
Rs.2 lac and sales Rs.14 lac? a . Rs.5 lac, b Rs.8 lac, c Rs.10 lac, d Rs.12 lac
111 Managing Director of a company is entitled for a commission of5%. The profit after the commission is 1.90 lac. What is
amount of profit? a Rs.180500, b Rs.210000, c Rs.181500, d Rs.200000
112. The sales book of a firm was overcast by Rs.3000. The total of debit side of trial balance has been showing Rs. 105400.
What it should be ? a Rs.102400, b Rs.108400, c Rs.105400, d Rs.111400
113.The cash 000k of a firm is showing a debit balance with the bankof Rs.4320. It is observed that bank has credited a dividend
amount of Rs.1020 to the account. In order to reconcile the cash
book with the pass book, the amount of dividend:
should be added, b) should be deducted, c) no need to take into consideration, d) none of the above
114 A firm purchased 2"d hand machinery on July 01, 1999 for Rs.180000 and spent Rs.20000 on repairs and installation. On
June 30, 2002 the machinery was sold for Rs.136000. Compute depreciation for the year 2002 if the annual closing is Dec 31St
and depreciation method is WDV at 10%. : a. Rs.7695, b) Rs.8805, c) Rs.7805, d) Rs.8215
115 In the above problem, what is the profit or loss on sale of themachinery?
a) Profit Rs.2630, b) Loss Rs.2731, c) Profit Rs.2710, d) Loss Rs.2612
116 A firm purchased machinery worth Rs.46000 and spent Rs.3000 on installation. Its expected useful life is 5 years and scrap
value Rs.9000. What Drill be amount of annual depreciation?
Rs.7500, b) Rs.8000, c) Rs.9000, d) Rs.10000
117 What will be the written down value of the machinery at the end of 2nd year in the above case?
a) Rs.33000, b) Rs.35000, C) Rs.37000, d ) R s . 4 1 0 0 0
118 A firm acquired the patent rights of a product for business purpose.Such expenditure would be treated as:
a Revenue expenditure, b Deferred revenue expenditure, c capital expenditure, d fictitious assets
119 Freight paid on machinery brought to the factory premises, wouldbe classified as which of the following kinds of
expenditure? a Revenue expenditure, b Deferred expenditure, c Capital expenditure, d Any of the above
120 A sum of Rs.1100 has been posted in the depreciation account but is not posted to the furniture account. The total of debit
side of trial balance is Rs.241100. What it should be:
a. Rs.240000, b R s . 2 4 2 2 0 0 , c Rs.238900, d Rs.243300
ANSWER
D 2 A 3 C 4 C 5 C 6 A 7 B 8 B 9 B 10 B
11 C 12 C 13 D 14 C 15 D 16 C 17 A 18 A 19 D 20 A
21 D 22 C 23 D 24 B 25 B 26 A 27 C 28 C 29 D 30 B
31 A 32 C 33 C 34 A 35 B 36 A 37 C 38 D 39 C 40 B
41 B 42 A 43 A 44 B 45 C 46 A 47 C 48 A 49 D 50 C
51 B 52 A 53 B 54 B 55 B 56 B 57 C 58 C 59 A 60 B
61 A 62 B 63 C 64 B 65 A 66 D 67 C 68 C 69 D 70 A
71 A 72 B 73 A 74 B 75 C 76 C 77 B 78 D 79 A 80 B
81 D 82 A 83 C 84 D 85 A 86 C 87 C 88 A 89 A 90 A
91 B 92 B 93 C 94 C 95 C 96 D 97 B 98 B 99 D 100 C
101 C 102 C 103 D 104 D 105 D 106 A 107 B 108 B 109 C 110 C
111 D 112 C 113 A 114 A 115 B 116 B 117 A 118 C 119 C 120 A
** BEST OF LUCK **

Jaiib2 - 2 Latest Changes Recalled & Expected Questions

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Jaiib2 - 2 Latest Changes Recalled & Expected Questions

Încărcat de

Drepturi de autor:

Formate disponibile

TEACH YOURSELF

ACCOUNTING AND FINANCE FOR BANKERS

Sanjay Kumar Trivedy

2. LATEST CHANGES & MCQs 05-13

3. SELF ASSESSMENT TEST PAPERS 14-18

4. MEMORY BASED RECALLED QUESTIONS (2013-17 ) & PRACTICE 19-45

ACCOUNTING & FINANCE FOR BANKERS

MODULE A – BUSINESS MATHEMATICS AND FINANCE

MODULE B – PRINCIPLES OF BOOKKEEPING & ACCOUNTANCY

MODULE C – FINAL ACCOUNTS

MODULE D – BANKING OPERATIONS

MODULE B – PRINCIPLES OF BOOKKEEPING & ACCOUNTANCY

INDIAN ACCOUNTING STANDARDS (IND AS)

MODULE D – BANKING OPERATIONS

PRACTICE SET -2 ( 2015-16)

MEMORY BASED RECALLED QUESTIONS 2013-15

40 Which of the following is not a method of preparation of trialbalances:

S-ar putea să vă placă și