COMMON PROFICIENCY TEST More Practice Paper May 2011 ACCOUNTS Q1.

. Purpose of an accounting system include all the following except (a) Interpret and record the effects of business transaction. (b) Classify the effects of transactions to facilitate the preparation of reports. (c) Summari e and communicate information to decision ma!ers. (d) Specifies the types of business transactions that enterprises may engage in. #Conser$atism Concept% recommends the following& (a) Pro$ision for doubtful debts and discount on debtors should be made on the basis of actual bad debts and discount. (b) 'he stoc!(in(trade should be $alued at mar!et price or cost price whiche$er is less. (c) Small capital items) li!e croc!ery should be charged to re$enue. (d) *ll of the abo$e. Current assets are (a) *ssets from which long term benefits are to be deri$ed. (b) ,ong(term and short(term assets. (c) Cash(in(hand and short(term assets which can be con$erted into cash within one year. (d) *ssets which are currently used in the business.

Q".

Q+.

Q-. Sale of goods to .ohan for cash should be debited to (a) .ohan/s *ccount (b) Cash *ccount (c) Sales *ccount (d) 0one of these Q1. 2 ,td. has 3s.-)144 account recei$able from .r. *. 5n .arch 11) .r. 6 ma!es a partial payment of 3s.")144 on behalf of .r. * to 2 ,td. 'he 7ournal entry made on .arch 11 by 2 ,td. to record this transaction includes8 (a) * credit to the *ccounts recei$able account of 3s.")144. (b) * credit to the cash recei$ed account of 3s.")144. (c) * debit to the cash account of 3s.l)-44. (d) * debit to the *ccounts recei$able account of 3s.l)-44.

Q9. .r. 2 has assets of 3s.:)44)444 and liabilities of 3s.;4)444. 5wner/s e<uity in this case is8 (a) 3s. :) ;4)444. (b) 3s. :) 44)444. (c) 3s. 9) "4)444. (d) 3s. ;4)444. Q:. In which boo! of original entry will you record) a bills recei$able of 3s. +)444) which was recei$ed from a debtor in full settlement of his claim of 3s. +)144) is dishonoured& (a) Purchase 6oo! (b) Cash 6oo! (c) =ournal Proper (d) Sales 6oo! >hen the debit balance as per cash boo! is the starting point) che<ues issued but not presented to ban! will be8 (a) *dded (b) Subtracted (c) 0either of the two (d) 0ot re<uired to be ad7usted

Q;.

Q?. >hen the o$erdraft balance of the pass boo! is the starting point) che<ues deposited but not cleared will be8 (a) *dded

Page 1 of 11

(b) (c) (d)

Subtracted 0either of the two 0ot re<uired to be ad7usted

Q14. >hen fa$ourable balance as per cash boo! is the starting point) expenses directly paid by ban! will be @@@@@ to get the balance as per the Cash 6oo!8 (a) *dded (b) Subtracted (c) 0either of the two (d) 0ot re<uired to be ad7usted Q11. Aaluation (a) (b) (c) (d) of in$entory is dealt with in *S(1 *S(" *S(+ *S(-

Q1". Cost of in$entories includes (a) Birect .aterial C Birect Dxpenses (b) Birect ,abour C 'rade Dxpenses (c) *ll costs of purchase) cost of con$ersion and other costs incurred in bringing the in$entories to their present location and condition. (d) Birect material only. Q1+. >hen prices are falling which of the following method of in$entory $aluation will gi$e conser$ati$e figure of Eross profit& (a) ,IF5 (b) FIF5 (c) >eighted a$erage (d) Specific identification method Q1-. Bepreciation fund method is designed to8 (a) 5nly pro$ide for depreciation of an asset (b) Pro$ide for depreciation as also to accumulate the amount for its replacement (c) 5nly to sa$e tax. (d) 'o accumulate the amount of itGs replacement Q11. * ,td. Company ac<uired furniture for 3s. -4)444 with an expected useful life of fi$e years and 3s. ")444 expected residual $alue. Straight line method of depreciation was used. 'he e<uipment was sold at the end of fourth year for 3s. 11)444. 'he gain or loss on sale will be (a) 3s. 1+)444 (loss) (b) 3s. :)944 (gain) (c) 3s. 1)-44 (gain) (d) 0one of the abo$e Q19. * machinery was purchased for 3s. 14)444. 'he machinery was depreciated H "4I p.a. on >BA basis for + years. If the machinery is sold at a $alue of 3s. "1)444) the profit and loss account will be debitedJ credited by (a) 3s) 944 (Credit) (b) 3s. 1)444 (Credit) (c) 3s. 1)444 (Bebit) (d) 3s.944 (Credit) Q1:. Cost of a machinery purchased on 1 st*pril) "44; is 3s.14)444.Bepreciation is to be pro$ided at the rate of 11I p.a. on S,. .'he machinery was sold on +1 st Becember) "44; for 3s.+1)444.>hich of the statement gi$en below is correct& (a) ,oss on sale of machinery is 3s.?)-14 (b) ,oss on sale of machinery is 3s.?)+:1 (c) Bepreciation to be pro$ided for the year "44;(4? is 3s.1)9"1. (d) 6oth (b) K (c)

Page 2 of 11

Q1;.

#Salary (a) (b) (c) (d)

to factory wor!ers% will come in8 Profit K loss account 'rading account .anufacturing account 6oth (b) and (c)

Q1?.

'he importance of preparing a balance sheet is all of the following except& (a) 'o ascertain sources and uses of funds (b) 'o ascertain proprietary ratio (c) 'o ascertain net distributable profit (d) 'o ascertain the financial position of an enterprise 'he gain on sale of old machinery is credited to8 (a) 5ld machinery account (b) 'rading account (c) Profit and loss account (d) 6oth (a) and (c) 'he balance of goods sent out on consignment will be transferred to8 (a) Eeneral profit and loss account (b) Eeneral trading account (c) Brawings account (d) 0one of the abo$e

Q"4.

Q"1.

Q"". Eoods costing 3s.")44)444 sent out to consignee to show a profit of "4I on In$oice price. In$oice price of the goods will be8 (a) 3s.+):1)444 (b) 3s.+)44)444 (c) 3s.")14)444 (d) 3s.+)-1)444 Q"+. . send out goods costing 3s.14)444 to 0 at cost C ++ 1J+ I.1J14th of the goods were lost in transit. "J+rd of the goods are sold at "4I abo$e IP. L of the sales are on credit. 'he amount of credit sales will be8 (a) 3s. +9)444 (b) 3s. :")444 (c) 3s. :4)444 (d) 3s. :1)444

Q"-. 'he profits of the last fi$e years are 3s."4)444M 3s."4)444M 3s."4)444M 3s.-9)444M 3s.+9)444. Find out the goodwill of - years purchase. (a) 3s.9)";)444 (b) 3s.1)1+)944 (c) 3s.1)94)444 (d) 3s.1)9-)444 Q"1. >hen the incoming partner brings his share of goodwill in cash) it is ad7usted by crediting to8 (a) Nis Capitol account (b) Eoodwill account (c) 5ld partnerGs capital accounts (d) Premium *ccounts Q"9. If interest on capital is to be allowed as per the agreement) then interest on capital must be calculated with reference to time and it must be calculated on@@@@@@@@@@@ (a) Capital in the beginning (b) Capital at the end (c) *$erage capital employed (d) 0one of the abo$e 'he excess price recei$ed o$er the face $alue of shares should be credited to8 (a) Calls(in(ad$ance account. (b) *d$ance capital account. (c) Share premium account.

Q":.

Page 3 of 11

(d) Q";.

D<uity share capital account.

#*ccrued interest on in$estments% will appear in the balance sheet under which of the following head8 (a) Current liabilities (b) Secured loans (c) In$estments (d) Current assetsM loans and ad$ances

Q"?.

Partly paid up preference shares cannot be redeemed. (a) 'rue (b) False (c) Partly true (d) Partly false ,isted company is the company (a) >hose shares and securities are not listed in the recogni ed stoc! exchange& (b) >hose shares and securities are listed in the recogni ed stoc! exchange. (c) >hose shareholders ha$e unlimited liability. (d) >hose shareholders are ha$ing fixed di$idend right. *s per the #Cost Concept%) which of the following should be recorded in the boo! of accounts of a firm& (a) Quantitati$e transactions. (b) S!ills and !nowledge of the *ccounts .anager. (c) Qualitati$e transactions. (d) *n asset at its historical cost. @@@@@@@@ refer to the general agreement on the usage and practices in social or economic life. (a) *ccounting transactions (b) *cct. con$entions (c) *ccounting *ssumptions (d) Principles Financial Statements ha$e two primary <ualitati$e characteristics (a) 3ele$ance and reliability. (b) Onderstandability and materiality. (c) 3ele$ance and understandability. (d) .ateriality and reliability

Q+4.

Q+1.

Q+".

Q++.

Q+-. >hich of the following statement is false in context to cash discount& (a) Cash discount is recorded in the boo!s of accounts. (b) Cash discount is an allowance. (c) Cash discount is an allowance in addition to the trade discount. (d) 'he main purpose of cash discount is to increase the sales $olume. Q+1. 5$erhaul expenses of second hand machinery purchased 3s.14)444 is8 (a) 3e$enue expenditure. (b) Beferred re$enue expenditure. (c) Capital expenditure. (d) 0one of the abo$e *n expenditure is re$enue in nature) when8 (a) It benefits the future period (b) It benefits the current period (c) It belongs to the pre$ious period (d) 6oth (a) and (c) 'he purchases day boo! records only8 (a) *mount of credit purchases of goods.

Q+9.

Q+:.

Page 4 of 11

(b) (c) (d) Q+;.

Quantity of credit purchases of goods. *mount and <uantity of credit purchases of goods. 0one of the abo$e.

>hen a fa$ourable balance as per cash boo! is the starting point) income (e.g interest on in$estments) directly recei$ed by ban! will be8 (a) *dded (b) Subtracted (c) 0either of the two (d) 0ot re<uired to be ad7usted

Q+?. >hen fa$orable balance as per Pass boo! is the starting Point) 6an! Charges le$ied by ban! will be8 (a) *dded (b) Subtracted (c) 0either of the two (d) 0ot re<uired to be ad7usted Q-4. >hen the fa$orable balance as per Pass boo! is the starting Point) Income directly recei$ed by ban! will be8 (a) *dded (b) Subtracted (c) 0either of the two (d) 0ot re<uired to be ad7usted Q-1. From the following details what is the $alue of closing stoc!& 5pening stoc! 3s. "4)444) Purchases 3s. 1-4)444) Sales 3s. 114)444) Eross profit margin "4I of sales (a) 3s."4)444 (b) 3s. +4)444 (c) 3s. 14)444 (d) 3s.-4)444 Q-". In$entory $aluation affects (a) 0et income (b) Cash now (c) 'ax liability (d) 6oth (a) K (c) Q-+. In$entories are assets8 (a) Neld for sale in the ordinary course of business (b) In the production process for such sale (c) In the form of materials or supplies to be consumed in the production process or in the rendering of ser$ice (d) *ll of the abo$e Q--. Ei$en that the $alue of furniture on 1.1."44- is 3s. ;4)444) furniture purchased during the year is 3s. -4)444) sale of furniture on no loss no profit basis is 3s. "4)444 and the furniture is $alued at 3s. :4)444 on) +1.1"."44?) the depreciation for the year "44- will be (a) 3s. "4)444 (b) 3s. +4)444 (c) 3s. 14)444 (d) 3s. -4)444 Q-1. For charging depreciation the depletion method is adopted for (a) Plant K machinery (c) Eoodwill (b) ,and K building. (d) >asting assets li!e mines and <uarries Q-9. Ei$en that the $alue of furniture on 1.1."44+ is 3s. ?4)444) furniture purchased during the year is 3s. +4)444) sale of furniture on no loss no profit basis is 3s. 14)444 and the furniture is $alued at 3s. :4)444 on) +1.1"."44;) the depreciation for the year "44+ will be (a) 3s. "4)444 (b) 3s. +4)444

Page 5 of 11

(c) (d) Q-:.

3s. 14)444 3s. -4)444

'he pro$ision for discount on debtors is calculated on the amount of debtors8 (a) 6efore deducting actual bad debts. (b) 6efore deducting pro$ision for bad and doubtful debts. (c) 6efore deducting Sales returns and actual bad debts. (d) ,eft after deducting the pro$ision on bad and doubtful debts. >hat will be the treatment of additional bad debts if ad7ustment of it is appearing outside the trial balance& (a) Sundry debtors account will be debited and bad debts account will be credited. (b) 6ad debts account will be debited and sundry debtors account will be credited. (c) 6ad debts account will be only be debited to profit and loss account. (d) 0o effect is to be gi$en in account boo!s. 3e$enues of an enterprise are normally measured by the exchange $alues of the assets or liabilities in$ol$ed. *ny re$enue is not recogni ed until8 (a) 'he re$enue is earned and recorded. (b) 'he re$enue is recogni ed and its reali ation is assured. (c) 'he re$enue is reali ed and earned. (d) 0one of the abo$e Sales are e<ual to8 (a) Cost of goods (b) Cost of goods (c) Cost of goods (d) Cost of goods sold sold sold sold C gross profit. P gross profit. P net profit. C net profit.

Q-;.

Q-?.

Q14.

Q11. 'he commission recei$ed from consignor will be transferred to8 (a) 6alance Sheet (b) Eeneral trading account (c) Eeneral Profit and loss account (d) *ll of the abo$e Q1". Eoods sent to consignment at cost C ++1J+ I. 'he percentage of loading on in$oice price will be8 (a) "1I (b) ++1J+ I (c) "4I (d) 0one Q1+. P sent out ")444 boxes costing 3s.-44 each to Q at cost C"1I.1J14th of the goods were lost in transit."J+rd of the boxes were recei$ed and sold. 'he amount of sale $alue will be8 (a) 3s.9)44)444 (b) 3s.9)14)444 (c) 3s.9)"1)444 (d) 3s.9)14)444 Q1-. 3am is admitted in a firm for 1J-th share in the profits for which he brings 3s.+444 for goodwill. It will be ta!en away by the old partners in (a) Capital 3atio (b) 0ew Profit sharing ratio (c) Sacrificing 3atio (d) D<ual Q11. Eoodwill (a) (b) (c) (d) raised by the partners at the time of admission of a partner will be written off in8 5ld profit sharing 3atio 0ew Profit Sharing 3atio Sacrificing 3atio D<ually

Q19. PartnerGs current *Jc is opened in case of8

Page 6 of 11

(a) (b) (c) (d) Q1:.

Fluctuating Capital Fixed Capital 6oth a) and b) 0one

If $endors are issued fully paid shares of 3s.1)14)444 in consideration of assets ac<uired at 3s.1)44)444M the balance of 3s.14)444 will be debited to8 (a) Capital reser$e account (b) Eoodwill account (c) Aendors account (d) Profit and loss account Dxcess money recei$ed on applicationM is to be ad7usted against share allotment money. @@@@@@@@ account will be credited with the amount of excess application money recei$ed. (a) Share capital (b) Share application (c) Share allotment (d) Share first call *uthori (a) (b) (c) (d) ed share capital is8 'he share capital subscribed by the public 'he share capital issued by the company 'he capital with which the company is registered and its amount is mentioned in the Capital ClauseG of the .emorandum of *ssociation 0one of the abo$e

Q1;.

Q1?.

Q94.

Pro rata allotment is done in case of8 (a) Onder subscription (b) 5$er subscription (c) Full subscription (d) 0one of the abo$e 'he areas wherein different accounting policies can be adopted are (a) Aaluation of Fixed *ssets. (b) Pro$iding depreciation. (c) Aaluation of Finished goods. (d) *ll of the abo$e. Brawing of cash by a proprietor results in (a) Introduction of Capital (b) >ithdrawal of Capital (c) Income (d) Dxpense >hat is the correct statement in context to *ccounting Standards& (a) *ccounting Standards pro$ides information to the users as to the basis on which the accounts ha$e been prepared. (b) 'hey lay down the norms of accounting policies and practices by way of guidelines. (c) *ccounting Standards specifies the generally accepted accounting principles. (d) *ll of the abo$e ,iability is anything8 (a) >hich the debtors owe to creditors. (b) >hich an entity holds. (c) >hich an entity owes to outsiders. (d) >hich the outsiders owe to entity. >hich (a) (b) (c) (d) of the following is the ob7ecti$e of preparing trial balance& Dxamining the arithmetical accuracy of boo!s of accounts. It helps in preparation of final accounts of a firm. It ser$es as the summary of all the ledger accounts. *ll of the abo$e.

Q91.

Q9".

Q9+.

Q9-.

Q91.

Page 7 of 11

Q99.

If an inflow of economic benefits is expected then a contingent asset is disclosed8 (a) In the balance sheet. (b) In the cash flow statement. (c) In the report of the board of directors. (d) 0one of the abo$e. >hich (a) (b) (c) (d) one of the under gi$en is a normal business expenditure& Compensation paid for breach of a contract of supply of goods. ,oss of stoc! by theft. Interest on borrowing during the period of construction of wor!s. ,oss due to embe lement by the manager.

Q9:.

Q9;.

Bebit 6alance as per cash boo! of xy enterprise as on +1.4+."44; is 3s. 1)944.che<ues deposited but not cleared amounts to 3s. 144 and che<ues issued but not presented of 3s. 14. 'he ban! allowed interest amounting 3s. 114 and collected di$idend 3s.114 on behalf of xy enterprise. 6alance as per pass boo! should be8 (a) 1)?44 (b) ")114 (c) 1);14 (d) 1)?14 >hen a fa$ourable balance as per pass boo! is the starting point) che<ues deposited but not cleared will be8 (a) *dded (b) Subtracted (c) 0either of the two (d) 0ot re<uired to be ad7usted

Q9?.

Q:4. >hen a fa$orable balance as per pass boo! is the starting point) expenses directly paid by ban! will be8 (a) *dded (b) Subtracted (c) 0either of the two (d) 0ot re<uired to be ad7usted Q:1. *scertainment of $alue of stoc! from accounting records is !nown as (a) Perpetual in$entory control system (b) Periodic in$entory control (c) 3igid in$entory control (d) Self assessment system From the following details what is the $alue of purchases& 5pening stoc! 3s. "4)444) Sales 3s. 114)444) Eross profit margin "4I of sales) closing stoc! 3s. +4)444 (a) 3s. 1+4)444 (b) 3s. 1"4)444 (c) 3s. 114)444 (d) 3s. 1)44)444 *n o$er$aluation of current year/s opening in$entory will (a) Cause current year/s net income to be o$er(stated (b) Cause pre$ious year/s net income to be understated (c) Cause pre$ious years income o$erstated (d) Nas no affect Charging for the proportionate of an intangible asset o$er a period is termed as8 (a) Bepreciation (b) Biminution (c) *morti ation (d) Dxpiration Ser$ice hours method of pro$iding depreciation (straight line method) is useful) when8 (a) 5utput can be effecti$ely measured

Q:".

Q:+.

Q:-.

Q:1.

Page 8 of 11

(b) (c) (d) Q:9.

Ose of an asset can be measured In terms of time Otility of the asset is directly related to its producti$e use 0one of the abo$e

2 purchased a machine for 3s. 14)444 on 1st *pril) "44:. Bepreciation is pro$ided H 14I on written down $alue method. 'he depreciation pro$ided on the machine in at the beginning of "44;("44? is (a) 3s. :14 (b) 3s. ?44 (c) 3s. 1)444 (d) 3s. 1)144 >hich (a) (b) (c) (d) of the following is an item of trading account& Factory repairs Boc! dues Bepreciation on office furniture Consumable stores

Q::.

Q:;.

>hich of the following statement is true& (a) 'he written down $alue of an asset depreciated on reducing balance method can ne$er be ero. (b) Eoods gi$en as charity is the business income. (c) Interest paid on ban! loan is not to be treated as re$enue expense. (d) Cash in hand means total amount recei$able from debtors. Now balance of prepaid rent account is treated while preparing final accounts of a firm& (a) Personal account (b) 3eal account (c) 0ominal account (d) Fixed expenditure account 6an! interest recei$edJpaid appearing in the trial balance will be8 (a) Shown as an asset in the balance sheet. (b) Bebited to the profit and loss account. (c) Credited to the profit and loss account. (d) Dither (b) or (c)

Q:?.

Q;4.

Q;1. *n unsold product costing 3s."4)444 is ta!en o$er by $enture at 3s.11)444) the =oint Aenture *ccount will be credited by8 (a) 3s."4)444 (b) 3s.1)444 (c) 3s.11)444 (d) 3s.0il Q;". In a =oint Aenture * contributes 3s.1)444 and 6 contributes 3s.14)444. Eoods are purchased for 3s.11)"44. Dxpenses amount to 3s.;44. Sales amount to 3s.1-)444. 'he remaining goods were ta!en by 6 at an agreed price of 3s.-44. * and 6 profit sharing ration is 18" respecti$ely. *s a final settlement) how much * will recei$e& (a) 3s.1);44 (b) 3s.9)444 (c) 3s.1)444 (d) 3s.14);44 * and 6 enter into a 7oint $enture to underwrite the shares of R ,td. R ,td ma!e an e<uity issue of 144444 e<uity shares of 3s.14 each.;4I of the issue are subscribed by the party. 'he profit sharing ratio between * K 6 is +8". 'he balance shares were not subscribed by the public) purchased by * and 6 in profit sharing ratio. Now may shares to be purchased by * (a) ;4444 Shares (b) (c) :"444 shares 1"444 shares

Q;+.

Page 9 of 11

(d) Q;-.

;444 shares

'he balance in the In$estment Fluctuation Fund) after meeting the loss on re$aluation of in$estments) at the time of admission will be transferred toM (a) Capital accounts of the partners (b) 3e$aluation *ccount (c) Eeneral 3eser$e (d) 0one of the abo$e * business earned an a$erage profit of 3s.14)444 during last few years and the normal rate of return in the similar type of business is 14I.'he $alue of the net assets is 3s.1)14)444 and the $alue of goodwill according to the capitali ation methods will be8 (a) 3s.1)44)444 (b) 3s.+)14)444 (c) 3s.1)14)444 (d) 3s.+)44)444 >hen a partner is entitled to interest on capital contributed by him) such interest will be payable8 (a) 5nly out of profit (b) 5nly out of loss (c) 0e$er paid (d) 0one If on a share of 3s."4) 3s.19 called up) 3s.1" is paid up) the amount to be debited to share capital account is8 (a) 3s."4 (b) 3s.19 (c) 3s.1" (d) 0I, >hich of the following is false in relation to forfeiture of shares& (a) >hen the shares are forfeited) securities premium account will be debited along with share capital account) if the premium has not been recei$ed. (b) >here forfeited shares are reissued at premium) the amount of such premium will be credited to securities premium account. (c) ,oss on reissue can not be more than the gain on forfeiture of those e<uity shares. (d) Eain on forfeiture of e<uity shares must be transferred to capital reser$e account before the close of the year e$en if the shares are not reissued. * ,td. issued shares of 3s.14 each at a discount of 1I. .r. 6 purchased 14 shares and paid 3s.- on application but did not paid the allotment money of 3s.+.14. 'he company decided to forfeit his entire shares) the forfeiture account will be credited with 3s.@@@@@@@. (a) 3s.144 (b) 3s."44 (c) 3s.+44 (d) 3s.+:1 * pri$ate company needs to be registered with a minimum capital of 3s.@@@@@@@@. (a) 3s.1 la!hs (b) 3s.1 crores (c) 3s.14 crores (d) 3s.1 la!hs *ccounting Standards in India are issued by (a) Institute of Chartered *ccountants of India. (b) 3eser$e 6an! of India. (c) State Eo$ernment. (d) Central Eo$ernment. >hat are the limitations of #.oney .easurement Concept%&

Q;1.

Q;9.

Q;:.

Q;;.

Q;?.

Q?4.

Q?1.

Q?".

Page 10 of 11

(a) (b) (c) (d) Q?+.

*s per this concept) a transaction is recorded at its money $alue on the date of occurrence and the subse<uent changes in the money $alue are con$eniently ignored. *ny transactionJe$ent inspite of being $ery important cannot be recorded in the boo!s of accounts) if it cannot be expressed in money $alue. 6oth (a) and (b) 0one of the abo$e

*ccording to accrual concept) Sales are to be recorded (a) >hen ad$ance for order is recei$ed. (b) >hen cash is realised from debtors. (c) >hen order is recei$ed. (d) >hen goods are deli$ered to customer. 6ad debts of 3s.14)444 appears as an ad7ustment below the trial balance) the effect of this will be8 (a) Credit sundry debtors only. (b) Bebit bad debts account only. (c) Bebit sundry debtors account and credit bad debts account. (d) Bebit bad debts account and credit sundry debtors account. 'he balance of sales account is transferred to8 (a) Profit K loss account. (b) 6alance sheet. (c) 'rading account. (d) 0o where in the boo!s. Eoods (a) (b) (c) (d) destroyed by fire should be debited to8 Purchase account Cash account Eoods lost by fire accountM Sales account.

Q?-.

Q?1.

Q?9.

Q?:.

Insurance claim recei$ed on account of plant K machinery damaged completely by fire is8 (a) Capital expenditure. (b) 3e$enue expenditure. (c) Capital receipt. (d) 3e$enue receipt.

Q?;. *n Onfa$orable ban! balance means (a) Credit balance in the pass boo! (b) Credit balance in the cash boo! (c) Bebit balance in the cash boo! (d) Fa$orable balance in the cash boo! Q??. * trader issued che<ues worth 3s. :);44 out of which che<ues worth 3s 9)144 only presented into ban! then on reconciling the Cash 6oo! with the Pass boo!) the amount to be added will be 8 (a) 9)144 (b) 1)+44 (c) :);44 (d) 1-)+44 Q144. * 6an! 3econciliation Statement is prepared with the help of8 (a) 6an! Column of the Cash 6oo! and Cash Column of the Cash 6oo! (b) 6an! Statement and Cash column of the Cash 6oo! (c) 6an! Statement and 6an! column of the Cash 6oo! (d) *ll of the *bo$e

Page 11 of 11