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1.

A person who brings capital in the business is


called
(a) debtor
(b) creditor
(c) proprietor
(d) none of the above.
2. A person who brings capital in the business is
called
(a) debtor
(b) creditor
(c) proprietor
(d) none of the above.
3. If the total assets of the firm are Rs. 1,00,000,
outside liabilities are Rs.
40,000, the capital contributed by the owner is
(a) Rs. 1,00,000 (b) Rs. 40,000
(c) Rs. 20,000 (d) Rs. 60,000.
4. Creditors account is a
(a) Personal account (b) Real account
(c) Nominal account (d) None of the above.
5. Which of the following accounts is not a real
account
(a) Building account (b) Bank account
(c) Closing stock account (d) Goodwill account.
6. Which of the following is a real account?
(a) Drawings account
(b) Outstanding rent account
(c) Bank account
(d) Closing stock account.
7. Which of the following is a nominal account?
(a) Drawings account
(b) Outstanding interest account
(c) Salary account
(d) Machinery account.
8. Sale of goods to Rani for cash shall be
debited to
(a) Rani account (b) Cash account
(c) Sales account (d) None of these
9. Cash account normally has
(a) Debit balance or credit balance
(b) Credit balance
(c) Debit balance
(d) None of these
10. Account to be debited by the proprietor of
business for purchasing furniture for his private
use for cash from Furniture House will be
(a) Purchase account
(b) Furniture account
(c) Drawing account
(d) Furniture House account
11. Sale of old furniture will be recorded in
(a) Purchase journal (b) Sales journal

(c) Journal proper (d) nowhere


12. Contra entries are related to
(a) Cash (b) Bank
(c) Both cash and bank (d) None of these
13. Trial balance is
(a) Account (b) A statement
(c) Both (a) and (b), (d) None of these
14. The amount brought in by the proprietor in
the business shall be
credited to
(a) Cash account (b) Capital account
(c) Drawings account (d) None of these
15. The amount of salary paid to Madhu should
be debited to
(a) Madhu (b) Cash account
(c) Salary account (d) None of these
16The rent paid to the landlord should be
credited to
(a) Rent account (b) Landlord account
(c) Cash account (d) None of these
17 The cash discount allowed to a debtor should
be credited to
(a) Debtor account (b) Discount account
(c) Cash account (d) None of these
18 In case of a debt becoming bad, the amount
should be credited to
(a) Bad debt account
(b) Sales account
(c) debtors account
(d) Provision for bad debt account.
19 Payment of LIC premium of the proprietor is
debited to
(a) Capital account (b) Drawings account
(c) LIC premium account (d) None of these
20 Goodwill is a
(a) fixed asset, (b) current asset
(c) intangible asset, (d) fictitious asset
21 Goods given as samples should be credited
to
(a) advertisement account, (b) sales account
(c) purchase account, (d) none of the above.
22Which of the following is not a fixed asset
(a) motor vehicles, (b) furniture,
(c) inventory, (d) freehold property
23 Which of the following is not an intangible
asset
(a) stock, (b) goodwill,
(c) trade mark, (d) patents.
24Which of the following is a fictitious asset
(a) goodwill, (b) copyright,
(c) patents, (d) discount on issue of securities
25. Withdrawals by the proprietor would
(a) reduce both assets and owners equity
(b) reduce assets and increase liabilities
(c) reduce owners equity and increase liability
(d) no change.

26 A business transaction affects


(a) at least one account (b) at least two account
(c) maximum of two accounts (d) maximum of
three accounts.
27 Where ends begins.
(a) book-keeping and accounting
(b) accounting and book-keeping
(c) transaction and accounting
(d) none of these
28The person to whom goods are sold on credit
is known as .
(a) creditor (b) debtor
(c) borrower (d) none of these
29 Debit the receiver and credit the giver is the
rule for ..
(a) nominal (b) personal
(c) real (d) liability
30 Journal is a book of ....................... entry
(a) original (b) secondary
(c) subsidiary (d) none of these
31The process of recording transactions in a
journal is known as ............
(a) recording (b) journalizing
(c) posting (d) balancing
32....................... is a process of entering in the
ledger the information
given in the journal
(a) recording (b) journalizing
(c) posting (d) balancing
33....................... Is the principal book of
account
(a) journal (b) ledger
(c) trial balance (d) none of these
34 Cash purchases are entered in
the .......................
(a) cash account (b) cash book
(c) purchases book (d) sales book
35 The ....................... column in a ledger
account shown the location of
each entry in the journal
(a)JF (b) LF
(c) FJ (d) FL
36 Purchase account will always
have ....................... balance
(a) debit (b) credit (c) no balance
37 The assets are Rs. 48,000 and liabilities are
Rs, 18,000. The total of
the liability side of the balance sheet will
be...........
(a) 48000 (b) 44000
(c) 45000 (d) 46000
38 The capital of a firm whose assets are Rs.
53,000 and liabilities are Rs.19,000 is Rs. ..........
(a) 40000 (b) 42000
(c) 43000 (d) 44000

54 Nominal Accounts are related to


(a) Assets and Liabilities
(b) Expenses,
losses and incomes (c) Debtors, Creditors etc.
(d ) all of these.
55 Received a first and final dividend of 60 paise
in the rupee from the Official Receiver of Mr.
Ram who owed 2,000.
(a) Discount allowed A/c be debited with 800
(b) Bad debts recovered A/c be debited with
12,00
(c) Bad debt A/c be credited with 800
.
(d) Bad debt A/c be debited with 800.
56. Bank overdraft account is a
(a) Personal account
(b) Real account
(c) Nominal account (d) All of these
57 A credit sale of goods to Ram should be debited
to
(a) Sales Account
(b) Goods Account
(c) Ram's Account
(d) Purchase Account
58 Consider the following adjusting entries :
1. Outstanding expenses:
Expense A/c
2. Prepaid expenses:
a/c

Expense A/c Dr
To o/s

Expense A/c Dr
To Prepaid Expenses

3. Income earned
and not received:

Income A/c Dr
To Outstanding Income
A/c

4. Income received
in Advance

Income A/c Dr
To Prepaid

Income A/c
Which of the adjusting entries given above
is/are correct?

(a) 1 and 4
(b) 2 and 3 (c) I only
(d) 1,2,
3, and 4
59. The rent paid to landlord is credited to
(a)

Landlord's account

(b)

Rent account

(c) Cash account

(d) None of these

60 Ram received 975 from Pankaj in full settlement of his account for 1,000. The journal
entry will be
(a) Cash A/c Dr. 975 Bad debts A/c Dr. 25 To
Pankaj A/c 1,000

(b) Cash A/c Dr. 975 Discount Allowed A/c Dr.


25 To Pankaj A/c 1,000
(c) Cash A/c Dr. 1,000 To Pankaj A/c 1,000
(d) None of these
61 Wages are paid for installation of machinery
The journal entry will be
(a)
(b)
(c)
(d)

Machinery A/c Dr. 500 To Cash A/c 500


Machinery A/c Dr. 500 To Wages A/c 500
Wages A/c Dr. 500 To Machinery A/c 500
Cash A/c Dr. 500 To Machinery A/c 500

62 Sale of typewriter that has been used


office should be credited to
(a) Sales account
(c) Capital ace
(b) Cash account
(d) Typewriter
63 Book-keeping is mainly concerned with :
(a) Recording of financial data
(b) Designing the systems of summarising the
recorded data
(c) Interpreting the data for internal and
external users
(d) Preparation of financial statements of the
business
Enterprise
64 Which of the following is the most relevant
accounting information for taxation authorities?
(A) Cash Balance of the firm
(B) Book Value of the Fixed Assets
(C) Credit Sales of the year
(D) Profit generated during the year
65 On 1st April 2006, balance of cash column of
cash book was 10,000. After receiving 2,000
from Anil, giving a cheque of 3,200 to Sunil and
making payment of wages 500, balance of cash
will be :
(a) 11,500 (b) 8,300
(c) 8,800
(d) 6,300
66 B became insolvent and a sum of 4.000 out
of 10,000 could be recovered from his estate.
The entry will be passed in
(a) at Cash Book (b) Journal Proper
(c) Both in (a) and (b)
(d) None of these
67 Cash received from Shahrukh 36,000 after
allowing her discount @10%. Amount debited to
discount account will be :
(a) 3,600 (b)
4,000 (c) 4,400
(d) 40,000
68 Goods costing 30,000 supplied to Mohan at a
profit of 25% of sales price less Trade discount
@5% will be credited to Sales A/c with :
(a) 35,625 (b) 38,000 (c) 37,500 (d) 4,200

69 Purchase of goods from , X for


Cash should be credited to :
(a) Purchase(b) Cash
(c) X
(d) none
70. What shall be the amount of Capital if Cash
is 5,000; Furniture 12,000; Stock 30000
and Creditors 6,000.
(a) 53,000(b) 47,000
(c) 41,000
71 5,000 received from Mohan whose account
was written off as bad in the previous year
should be credited to :
(a) Mohan'sA/c
(b) Bad-Debts A/c
(c) Bad-Debts Recovered A/c
(d) None of
these
72 Goods costing 20,000 is sold at a profit of 20%
on cost and trade discount is allowed @ 10%
and cash discount of 10% is also allowed. Half
the payment was received at the time of sale.
What is the amount of cash received at the time '
of sale?
(a) 9,720
(c) 11.880

(b) 10,800
(d) 10,820

73 Paid to Rahul on behalf of


Sanjay 12,000 will be debited
to
(a) Kabul's Personal Account
(b) SanjayJs Account
(c) Drawings Account
(d) Cash Account
74 Sold goods worth list price of 8,000 at 10%
trade discount and 2% cash discount. 25%
received at the time of transaction only. The
amount posted to discount account will be :
(a) 36 on Debit side(b) 144 on Credit
side
(c) 144 on Debit side (d) 40 on Credit
side
75. Rent of proprietor's house paid from account on
cash will
(a) Decrease the profit
(b) Increase the profit
(c) Reduce the capital of business
(d) Reduce the cash as well as capital of
the business.
76. When cash is withdrawn from bank, the
entry in the
cash book is called .......... entry.
(a) Single(b) Double (c) Contra (d)
Adjusting
77. Patent is :
(a) Current Asset (b) Tangible Asset

(c) Intangible Asset (d) Fictitious Asset


79.

78. Choose the Current Assets from the following


:
(A) Cash
(B) Stock
(C) Debtors
(D) All of these
79. Building is :
(a) Current asset (b) Tangiblesset
(c) Intangible asset
(d) Fictitious
asset
80. Outstanding salary is :
(a) Real Account (b)
PersonalmAccount
(c) Nominal Account (d) Either (a)
or (b)