ACCOUNTS AND LAW
Maximum Marks: 100
Time: 2 Hours
The ‘going concern concept’ is the underlying basis for
(a) Stating fixed assets at their realizable values.
(b) Disclosing the market value of securities
(c) Disclosing the sales and other operating information in the income statement (d) None of the above.
Rs. 1500 received from sub-tenant for rent and entered correctly in the cash book is posted to the debit of the rent account. In the trial balance
(a) The debit total will be greater by Rs.3000 that the credit total (b) The debit total will be greater by Rs.1500 than the credit total. (c) Subject to other entries being correct the total will agree. (d) None of the above.
A second hand motor car was purchased on credit from B for Rs.10, 000. (a) Journal Proper
(b) Sales Book
(c) Cash Book
(d) Purchase Book
Which of the following types of information are found in subsidiary ledgers, but not in the general ledger? (a) Total cost of goods sold for the period.
(b) The quantity of a particular product sold during the period. (c) The amount owed to a particular creditor.
(d) The portion of total current assets that consist of cash.
Goods worth Rs.100 taken by proprietor for domestic use should be credited to (a) Sales account
(b) Proprietor’s personal expenses
(c) Purchases account
(d) Expenses account
Rs.200 received from Smith whose account, was written off as a bad debt should be credited to: (a) Bad Debts Recovered account
(b) Smith’s account
(c) Cash account
(d) Bad debts account
When the balance as per Pass Book is the starting point, uncollected cheques are: (a) Added in the bank reconciliation statement
(b) Subtracted in the bank reconciliation statement
(c) Not required to be adjusted in the bank reconciliation statement (d) Neither of the above
A company follows weighted average cost method for...