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 the valuation of its inventory. The details of purchase and issue of raw-materials pertaining to the company during the week April 01, 2006 to April 07, 2006 are as follows: Date
Rate per Unit (Rs.)
The value of inventory at the end of the week under weighted average method is (a) Rs.4600
Page 1 of 12
Consider the following data pertaining to credit purchases made by K Ltd., a dealer in electronic goods, for the month of March 2005:
Purchases Units Issues Units Rate per Unit (Rs.)
March 01 Black & White TVs
March 19 Audio Cassettes
March 09 Tape Recorders
On March 22, 2005, the company purchased from LM Stationers on credit for office use 10 dozens of carbon papers at the rate of Rs.35 per dozen and 10 dozens of ball pens at the rate of Rs.25 per dozen. At the time of making payment on March 31, 2005, the suppliers have allowed a cash discount of 10% on the above purchases. The total of purchases for the month of March 2005, was
If a concern proposes to discontinue its business from March 2005 and decides to dispose off all its assets within a period of 4 months, the Balance Sheet as on March 31, 2005 should indicate the assets at their (a) Historical cost
(b) Net realizable value
(c) Cost less depreciation
(d) Cost price or Market value, whichever is lower
Sales Opening Purchases
The value of closing stock is