Course:
CMA Foundation
1) The purpose of preparing the final accounts is to ascertain:
(a) Profit or loss (b) Capital
(c) Profit or loss and financial position (d) Value of assets
2) What is the correct sequence of the following actions required for the preparation of Final
Accounts?
1. Preparation of Trail Balance
2. Balancing of Accounts
3. Preparation of Annual Financial Statements
4. Making Adjusting Entries
Select the correct answer from the codes given below –
(a) 4,2,1,3 (b) 2,4,3,1 (c) 2,1,4,3 (d) 4,2,3,1
3) In the case of a manufacturer, opening stock of finished goods is shown:
(a) On the debit side of manufacturing account
(b) On the credit side of trading account
(c) On the debit side of trading account
(d) On the assets side of the balance sheet
4) Interest on loan appearing in the Trial Balance should be:
(a) Debited to P & L a/c
(b) Shown as liability in Balance Sheet
(c) Added to the related liability in Balance Sheet
(d) None of these
5) Which of the following entries is correct in respect of reserve for discounts on accounts payable?
(a) Debit P&L a/c and credit reserve for discount on account payable a/c
(b) Debit P&L a/c and credit accounts payable a/c
(c) Debit accounts payable a/c and credit P&L a/c
(d) None of the above
6) Goods distributed as free sample would be:
(a) Credit to Trading A/c & Debit to Profit & loss A/c
(b) Debited to Trading A/c & credited to Profit & loss A/c
(c) Credited to Sales A/c & Debit to purchase A /c
(d) Credited to Trading A/c & Debit to Drawing A/c
7) Bad debts are written off by:
(a) Debiting the debtors account and crediting bad debts account
(b) Crediting the debtor’s account and debiting bad debts account
(c) Debiting the provision for bad debts account and crediting the debtor’s account
(d) Credited the provision for bad debts account and debiting the debtor’s account
8) A buyer returning goods on the ground of poor quality send a note along with the goods stating
that no payment would be made in respect goods returned, the return note is called:
(a) Debit Note (b) Credit note
(c) Refund note (d) Return note
9) Manufacturing account is prepared to-
(a) Ascertain the profit on the goods produced
(b) Ascertain the cost of the manufactured goods
(c) Show the sale proceeds from the goods produced during the year
(d) both (b) and (c)
10) Sales- 7,500 units, opening stock- 3,000 units and Closing stock 2,400 units. Calculated the
number of units produced:
(a) 6,900 (b) 4,800
(c) 12,900 (d) 8,100
11) Sales Rs. 2,40,000, opening stock 200 units and closing stock 2,200 units, selling price Rs. 30 per
unit. Calculated the number of units produced:
(a) 2,42,000 (b) 5,600
(c) 10,000 (d) 10,400
12) Sales Rs. 15,00,000, Opening stock valued at Rs. 3,60,000 @ As 120 per unit, closing stock 20%
less than the opening stock, selling price Rs. 200 per units:
(a) 11,42,400 (b) 2,100
(c) 12,900 (d) 6,900
13) The opening stock of finished goods is Rs. 50,000; closing stock of finished goods is Rs. 1,00,000
and the cost goods manufactured is Rs. 2,00,000. What is cost of goods sold?
(a) Rs. 2,50,000 (b) Rs. 1,00,000
(c) Rs. 3,50,000 (d) Rs. 1,50,000
14).
15) Compute opening stock from the following details: Purchase – Rs. 20,000; Closing stock – Rs. 13,000;
Cost of goods sold – Rs. 28,000.
(a) Rs. 61,000 (b) Rs. 21,000
(c) Rs. 35,000 (d) None of the above.
16) The adjustment to be made for interest on capital is –
(a) Debit profit and loss account and deduct interest from capital
(b) Credit profit and loss account and deduct interest from capital
(c) Debit profit and loss account and add interest to capital
(d) Credit profit and loss account and add interest from capital
17) Wages and salaries appearing in Trial Balance are shown –
(a) On the debit side of Profit and Loss Account
(b) On the debit side of Trading Account
(c) On the liabilities side of the Balance Sheet
18) Trade discount allowed on the sales, if appearing in the trial balance, is shown in the final
accounts:
(a) On the debit side of trading is account
(b) On the debit side of profit and loss account
(c) By way of deduction from the sales in the trading account
(d) Credit of P& L A/c
19) Goods given as charity should be credited to:
(a) Purchase A/c (b) Charity A/c
(c) Sales A/c (d) Drawings A/c
20) Purchases in Trading a/c includes:
(a) Only cash purchases (b) Only credit purchases
(c) Both cash and credit purchases (d) Purchases of Fixed Assets
21) Opening stock of the year is Rs. 20,000, Goods purchased during the year is Rs. 1,00,000, Carriage
Rs. 2,000 and Selling expenses Rs. 2,000. Sales during the year is Rs. 1,50,000 and closing stock is
Rs. 25,000. The gross profit will be:
(a) Rs. 53,000 (b) Rs. 55,000
(c) Rs. 80,000 (d) Rs. 51,000
22) Mr Prakash sells goods at 20% above cost. His sales were Rs. 10,20,000 during the year. However,
he sold damages goods for Rs. 20,000 costing Rs. 30,000. This sale is included in Rs. 10,20,000.
The amount of gross profit is:
(a) Rs. 1,56,667 (b) Rs. 2,50,000
(c) Rs. 2,40,000 (d) Rs. 2,00,000
23)
24)
25) The balances in the books of X, a sole proprietor was: Opening stock Rs. 17,000; Purchases Rs.
52,000; Wages Rs. 46,500; Fuel Rs. 15,000; Sale Rs. 1,45,000 and Closing stock on hand Rs. 25,000
whose net realizable value was Rs. 28,000. Find Gross Profit:
(a) Rs. 39,500 (b) Rs. 42,500
(c) Rs. 54,500 (d) Rs. 57,000
26) If sales revenues are Rs. 4,00,000; cost of goods sold is Rs. 3,10,000 and operating expenses are
Rs. 60,000, the gross profit is:
(a) Rs. 30,000 (b) Rs. 90,000
(c) Rs. 3,40,000 (d) Rs. 60,000
27) Which of the following would appear as an operating expense in the P&L A/c of trading firm:
(a) Freight Inward
(b) Freight Outward
(c) Sales returns and allowances
(d) Purchases returns and allowances
28) A club paid subscription fees of Rs. 1,400, out of which Rs. 200 is prepaid. In such case:
(a) P&L A/c is debited with Rs. 1,400
(b) P&L A/c is debited with Rs. 1,200
(c) Rs. 200 is shown as current asset
(d) Both (b) and (c) above
29) Which of the following is a Factory overhead?
(a) Salary of accountant (b) Advertisement expenses
(c) Storekeeper’s salary (d) All of these
30) Profit on sale of old furniture is shown on:
(a) Credit side of trading A/c (b) Credit side of P&L A/c
(c) Directly added to capital A/c (d) non-operating item ignored
31) Carriage on goods sold is shown in:
(a) Profit and Loss A/c (b) Trading A/c
(c) Balance Sheet (d) Suspense A/c
32) A Trial Balance contains he following information:
I. 15% Bank Loan Rs. 40,000
II. Interest Paid Rs. 4,500
Interest debited to P&L A/c will be?
(a) Rs. 6,000 (b) Rs. 3,000
(c) Rs. 4,500 (d) Rs. 1,500
33) If Sales are Rs. 14,900 Gross Profit Rs. 3,300 Net Loss Rs. 500. The operating expenses will be:
(a) Rs. 2,800 (b) Rs. 3,800
(c) Rs. 11,100 (d) Rs. 11,600
34) Trial Balance contains the following information: Bad debts Rs. 2,000, Provision for Doubtful debts
Rs. 1,500. It is desired to make a Provision for Doubtful Debts of Rs. 2,000 at the end of the year.
The amount to be debited to the P&L A/c is:
(a) Rs. 5,500 (b) Rs. 6,000
(c) Rs. 2,500 (d) Rs. 4,500
35) Rekha purchased a machinery for Rs. 50,000 on 1.4.2023. She paid electricity and salary amounting
Rs. 1,000 and Rs. 2,000 respectively. Telephone bill amounting Rs. 200 was outstanding on
31.3.2023. The amount of expenses for the year ended 31st March, 2023 will be:
(a) Rs. 53,200 (b) Rs. 3,000
(c) Rs. 53,000 (d) Rs. 3,200
36) Rent paid on 1 Oct’21 for the year 30 Sep’22 was Rs. 1,200 and rent paid on 1 Oct’22 for the year
to 30th Sep’23 was Rs, 1,600. Rent shown in the P & L for the year ended 31st Dec’22 would be –
(a) Rs. 1,200 (b) Rs. 1,600
(c) Rs. 1,300 (d) Rs. 1,500
37) Only personal and real accounts are shown in:
(a) Trial Balance (b) Balance Sheet
(c) Profit & Loss A/c (d) Trading A/c
38) If unexpired insurance appears in the Trial Balance, it should be:
(a) Debited to the trading account
(b) Credited on the Profit & Loss account
(c) Debited to the Profit & Loss account
(d) Shown on the assets side of the Balance Sheet
39) Advance tax A/c appearing in the Trial Balance is:
(a) Shown on the liability side of Balance Sheet
(b) Shown on the Assets side of the Balance Sheet
(c) Shown on debit side of Profit and Loss A/c
(d) Credited to Profit and Loss A/c
40) Sales include goods worth Rs. 36,000 sent on sales on approval basis @ 20% profit on cost. At the
close of the financial year the goods were still pending with the customer pending approval. The
Accounting adjustment would be:
(a) Debit sale A/c by Rs. 36,000, Credit Debtors A/c by Rs. 36,000, Credit trading A/c by Rs.
30,000, Debit stock A/c by Rs. 30,000
(b) Debit sale A/c by Rs. 30,000, Credit Debtors A/c by Rs. 30,000, Credit trading A/c by Rs.
30,000, Debit stock A/c by Rs. 30,000
(c) Credit sale A/c by Rs. 36,000, Debit Debtors A/c by Rs. 36,000, Debit trading A/c by Rs.
30,000, Credit stock A/c by Rs. 30,000
(d) Debit sale A/c by Rs. 6,000, Credit Debtors A/c by Rs. 36,000, Credit trading A/c by Rs.
30,000, Debit stock A/c by Rs. 36,000
41) Closing entry for transfer of Net profit Rs. 6,300 to capital A/c will be:
(a) Capital A/c Dr 6,300; To P&L A/c 6300
(b) P&L A/c Dr. 6300; To Capital A/c 6300
(c) Trading A/c Dr 6300; To P&L A/c 6300
(d) None of the three
42) If Closing Stock A/c already appears in the trial balance, the amount is shown only on the____.
(a) Trading A/c (b) Balance Sheet
(c) Capital A/c (d) Profit & Loss A/c
43) The withdrawal of goods from the business by the proprietor should be debited to-
(a) Drawings A/c (b) Purchase A/c
(c) Capital A/c (d) Profit & Loss A/c
44) In a sole trade, income tax is recorded as:
(a) Drawings (b) Liabilities
(c) Expenses (d) None of these
45) Mr. A had a beginning credit balance of Rs. 21,000 in his capital account. At the close of the
period his drawing account had a debit balance of Rs. 2,200. On the end-of-period balance sheet,
his capital balance is Rs. 32,000. If he contributed an additional Rs. 2,000 to the firm during the
period, the period’s net income is:
(a) Rs. 12,400 (b) Rs. 11,200
(c) Rs. 9,000 (d) Rs. 10,800
46) A firm had a capital balance of Rs. 1,00,000 at the beginning of a year. At the end of the year,
the firm has total assets of Rs. 1,50,000 and total liabilities of Rs. 70,000. If the total withdrawals
during the period were Rs. 30,000, what was the amount of net profit/net loss for the year:
(a) Rs. 10,000 Profit (b) Rs. 20,000 Loss
(c) Rs. 50,000 Loss (d) Rs. 10,000 Loss
47) Capital on 1st January Rs. 65,000, Interest on drawing Rs. 5,000, Interest on capital Rs. 2,000,
Drawings Rs. 14,000, Profit for the year Rs. 15,000. His capital as on 31 December will be:
(a) Rs. 67,000 (b) Rs. 63,000
(c) Rs. 77,000 (d) Rs. 89,000
48) If, Capital at the end is RS. 70,000; Fresh Capital introduced RS. 50,000; Drawings RS. 80,000;
Loss RS. 1,00,000; then beginning Capital is-
(a) Rs. 1,20,000 (b) Rs. 1,80,000
(c) Rs. 2,00,000 (d) Rs. 3,00,000
49) The entry for creating a provision for bad debts is:
(a) Debit provision for bad debts a/c and credit debtor’s a/c
(b) Debit debtor’s a/c and credit provision for bad debts a/c
(c) Debit provision for bad debts a/c and credit profit and loss a/c
(d) Debit profit and loss a/c and credit provision for bad debts a/c
50) The provision for discount on debtors is calculated on the amount of debtors-
(a) Before deducting the provision for doubtful debts
(b) After deducting the provision for doubtful debts
(c) Before deducting the actual bad debts and provision for doubtful debts
51) On the balance sheet provision for bad debts is shown as:
(a) Deduction from debtors
(b) A deduction from capital
(c) An addition to current liabilities
(d) A deduction from fixed assets
52) If actual bad debts are less than the sum set aside then:
(a) There will be a credit balance on the provision for bad debts account
(b) There will be a debit balance on the provision for bad debts account
(c) There will be a credit balance on the bad debts account
(d) There will be debit balance on the bad debts account
53) Which one of the following statements is not correct?
(a) The provision for bad debts account is an estimated figure
(b) Bad debts could exceed the provision for bad debts
(c) Bad debts could be less than the provision for bad debts
(d) Provision for bad debt appears as a liability in balance sheet
54) A trial balance contains Debtors Rs. 15,000, Bad Debts Rs. 400, and provision for Doubtful Debts
Rs. 600. Further bad debts given in adjustments are Rs. 400. If a provision at 5% is made on
Debtors P&L A/c will be debited with:
(a) Rs. 950 (b) Rs. 800
(c) Rs. 930 (d) Rs. 1,130
55) The Books of Accounts of Z Ltd. shows that the balance of sundry debtors is Rs. 50,000 and reserve
for doubtful debts is Rs. 2,000. Like the management of the company realized that debts to the
extent of Rs. 1,000 will become bad and hence decided to create a reserve at 5% on debtors. The
amount debited to profit and loss account is:
(a) Rs. 2,500 (b) Rs. 2,350
(c) Rs. 2,450 (d) Rs. 1,450
56) On 1st April, 2005 M/s Omega Bros. had a provision for bad debts of Rs. 6,500. during 2005-2006
Rs. 4,200 proved irrecoverable and it was desired to maintain the provision for bad debts @ 4%
on debtors which stood at Rs. 195,000 before writing off bad debts. Amount of net provision
debited to profit and loss A/c will be:
(a) Rs. 7,800 (b) Rs. 7,500
(c) Rs. 5,332 (d) Rs. 5,000
57) The company maintains provision for bad debts at 5% and its outstanding debtors at the end of
the year was Rs. 3,00,000. During the year, opening balance of provision for bad debts was Rs.
5,000 and bad debt during the year was Rs. 10,000. The debit to profit and loss account for the
year ended in respect of provision for debtors will be:
(a) Rs. 50,000 (b) Rs. 25,000
(c) Rs. 20,000 (d) Rs. 15,000
58) Sundry debtors given in the Trial Balance are Rs. 20,000. Further bad debts amounted to Rs. 1,000
and it is desired to create a provision of 5% on debtors for doubtful debts and 2% for discount.
Sundry Debtors will appear in the Balance Sheet at a figure of:
(a) Rs. 18,620 (b) Rs. 18,600
(c) Rs. 17,689 (d) Rs. 17,670
59) C’s Trial Balance contains the following information: Bad debts Rs. 8,000, Provision for Doubtful
debts Rs. 6,000, Sundry debtors Rs. 25,000. It is desired to create a provision for bad debts at
10% on sundry debtors at the end of the year. Sundry debtors (after provision) will appear in the
Balance Sheet at a figure of:
(a) Rs. 22,500 (b) Rs. 21,000
(c) Rs. 18,000 (d) Rs. 15,500
60) Sundry debtors of M/s Santosh amount to Rs. 25,000 and further bad debts Rs. 3,000. M/s Santosh
provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net debtors to be shown
in the balance sheet will be:
(a) Rs. 21,560 (b) Rs. 22,000
(c) Rs. 21,780 (d) Rs. 21,344
61) A Trial Balance provides you the following information: Bad debts Rs. 800, Provision for doubtful
debts Rs. 3,000. It is desired to maintain a Provision for doubtful debts at Rs. 1,000. The
accounting treatment of these adjustments is:
(a) Rs. 1,800 to be debited to the Profit and Loss account
(b) Rs. 1,200 to be credited to the Profit and Loss account
(c) Rs. 1,200 to be debited to the Profit and Loss account
(d) Rs. 4,800 to be debited to the Profit and Loss account
62) Y’s trial balance contains the following information:
Bad debts Rs. 5,000
Provision bad debts Rs. 6,000
Sundry debtors Rs. 50,000
It is desired to create a provision for Bad debts at 10 per cent on Sundry debtors at the end of
the year. Sundry debtors will appear in the balance sheet at a figure of:
(a) Rs. 45,000 (b) Rs. 42,500
(c) Rs. 46,000 (d) Rs. 34,000
63) A’s trial balance provides you the following information. Bad debts Rs. 1,000. It is desired to
maintain a provision for bad debts at Rs. 2,000. Amount debited to profit and loss a/c will be:
(a) Rs. 1,000 (b) Rs. 3,000
(c) Rs. 4,000 (d) Rs. 2,000
64) Discount allowed appearing in the Trial Balance is shown:
(a) On the debit side of Trading Account
(b) On the debit side of Profit and Loss A/c
(c) On the Assets side of the Balance sheet
(d) None of the above
65) Goods costing Rs. 10,000 is supplied to Ram at an invoice price of 10% above cost and a trade
discount of 5%. The amount of sales is:
(a) Rs. 11,000 (b) Rs. 10,450
(c) Rs. 10,500 (d) None of the above
66) Goodwill is-
(a) Current asset (b) Tangible asset
(c) Intangible asset (d) Current Asset
67) Which of the following is fixed asset?
(a) Plant & Machinery (b) Stock
(c) Debtors (d) Cash
68) Which of the following is not a fixed asset?
(a) Building (b) Bank Balance
(c) Plant (d) Patents
69) Which of the following are/is a current asset?
(a) Sundry Debtors (b) Stock
(c) Prepaid Insurance (d) All of the above
70) A prepayment of insurance premium will appear in the Balance Sheet and in the Insurance account
respectively as:
(a) A liability and a debit balance (b) An asset and debit balance
(c) An asset and a credit balance (d) None of these
71) If ‘Prepaid Wages’ is given in Trial Balance, it is shown in:
(a) Debit of Trading A/c (b) Debit of P&L A/c
(c) Debit of Trading A/c & Assets side of Bal. Sheet (d) Assets side of Bal. Sheet
72) The adjustment to be made for prepaid expenses is:
(a) Add prepaid expenses to respective expense and show it as an asset
(b) Deduct prepaid expenses from respective expenses and show it as an asset
(c) Add prepaid expenses to respective expenses and show it as a liability
(d) Not showing it in the P&L account or Balance Sheet
73) The adjustment to be made for outstanding expenses is:
(a) Add outstanding expenses to respective expenses and show it as asset
(b) Deduct outstanding expenses from respective expenses and show it as liability
(c) Add outstanding expenses to respective expenses and show it as liability
(d) Deduct outstanding expenses from respective expenses and show it as liability
74) The company paid Rs. 5,000 as one of the instalments of an outstanding bill. What effect this
transaction have on the financial position of the company:
(a) No change in assets, liability decreased by Rs. 5,000
(b) Assets less by Rs. 5,000, liability decreased by Rs. 5,000
(c) Assets increase by Rs. 5,000, no change in liability
(d) Assets increase by Rs. 5,000, liability increase by Rs. 5,000
75) If the profit is 25% of the cost price, then it is-
(a) 25% of the sales price (b) 33.33% of the sales price
(c) 20% of the sales price (d) 50% of the sales price
76) If sales are Rs. 6,000 and the rate of gross profit on cost of goods sold is 25%, then the cost of
goods sold will be:
(a) Rs. 6,000 (b) Rs. 4,500
(c) Rs. 4,800 (d) None of the above
77) What would be the amount of sales when opening stock is Rs. 50,000; purchases Rs. 1,50,000;
wages Rs. 20,000; closing stock Rs. 40,000 and gross profit is 1/7th of sales?
(a) Rs. 2,00,000 (b) Rs. 1,86,669
(c) Rs. 1,80,000 (d) Rs. 2,10,000
78) Calculate Gross Profit if Rate of Gross Profit is 20% on Sale and the Cost of goods are Rs. 1,20,000.
(a) Rs. 24,000 (b) Rs. 30,000
(c) Rs. 20,000 (d) Rs. 28,000
79) The loss on the sale of old machinery is debited to:
(a) Profit & Loss A/c (b) Machinery A/c
(c) Depreciation A/c (d) Trading A/c
80) Goods worth Rs. 36,000 were lost in fire. The goods were insured to the extent of Rs. 20,000. Loss
on account of fire would be accounted for as under:
(a) Debit trading A/c Rs. 36,000 and credit profit and loss A/c by Rs. 16,000
(b) Credit trading A/c Rs. 36,000 and debit Profit and Loss A/c Rs. 16,000, Insurance Co. debit
by Rs. 20,000
(c) Credit Profit and Loss A/c by Rs. 36,000 and debit Trading A/c by Rs. 16,000
(d) Credit Trading A/c Rs. 36,000 and debit Profit and Loss A/c Rs. 16,000
81) If the manager is entitled to a commission of 5% on profits before deducting the commission, he
will get a commission of Rs. ______ on a profit of र 8,400.
(a) Rs. 400 (b) Rs. 442.11
(c) Rs. 420 (d) None of these
82) The balance sheet total is:
(a) Rs. 5,725 (b) Rs. 4,425
(c) Rs. 3,950 (d) Rs. 3,000
83) Current liabilities are:
(a) Rs. 3,000 (b) Rs. 1,225
(c) Rs. 1,925 (d) Rs. 725
84) Fixed assets total:
(a) Rs. 3,950 (b) Rs. 3,200
(c) Rs. 1,150 (d) Rs. 400
85) Current assets are:
(a) Rs. 3,000 (b) Rs. 2,525
(c) Rs. 1,775 (d) Rs. 1,225
86) The net assets figure is:
(a) Rs. 5,725 (b) Rs. 4,500
(c) Rs. 3,000 (d) Rs. 1,300
87) Sale of the scarp of raw materials appearing in the trial balance is shown on the credit side of:
(a) Trading A/c (b) Manufacturing A/c
(c) Profit & Loss A/c (d) None of these
88) Opening stock- Rs. 22,000; Closing stock-Rs. 25,000; Purchase less returns- Rs. 1,10,000, Gross
profit margin (on sales)-20%. The sales of the company will be:
(a) Rs. 1,41,250 (b) Rs. 1,35,600
(c) Rs. 1,33,750 (d) Rs. 1,28,400
89) Capital introduced in beginning by ram Rs. 40,000. Further capital introduced during the year
Rs. 1,000, drawings Rs. 200 per month and closing capital is Rs. 53,600. The amount of profit or
loss for the year is:
(a) Rs. 15,000 Profit (b) Rs. 5,000 Loss
(c) Rs. 20,000 Profit (d) Can’t Say
90) Provisions are:
(a) Appropriation of profits (b) Charge on profits
(c) Both (d) None
91) In books of manufacturing concern, opening stock consists of:
(a) Raw materials (b) Work in progress
(c) Finished goods (d) All of the above
92) Opening debtors=3,000; Credit sales=80,000; Cash received from debtors=60,000. Closing
debtors?
(a) Rs. 30,000 (b) Rs. 32,000
(c) Rs. 23,000 (d) Rs. 20,000
93) Cost of goods sold = Rs. 15,00,000. Gross profit =20% on sales. Calculate the amount of sales:
(a) Rs. 18,25,000 (b) Rs. 18,15,000
(c) Rs. 18,50,000 (d) Rs. 18,75,000
94) Current liabilities total:
(a) Rs. 11,200 (b) Rs. 10,400
(c) Rs. 10,200 (d) Rs. 1,000
95) Current assets total:
(a) Rs. 11,200 (b) Rs. 10,700
(c) Rs. 10,550 (d) Rs. 3,000
96) The book value of fixed assets is:
(a) Rs. 11,200 (b) Rs. 3,000
(c) Rs. 2,500 (d) Rs. 500
97) Market value of fixed asset is:
(a) Rs. 5,000 (b) Rs. 11,200
(c) Rs. 3,000 (d) None of above
98) Person started a business with capital of Rs. 50,000 and the takes loan from his relative Rs. 5,000
profits for the year are Rs. 10,000 and drawings Rs. 9,000. What will be the amount of closing
capital?
(a) Rs. 60,000 (b) Rs. 51,000
(c) Rs. 56,000 (d) Rs. 46,000
99) Closing stock of previous year is overvalued by Rs. 50,000. Due to this-
(a) Previous year’s profit is overstated and current year’s profit is understated.
(b) Previous year’s profit is understated and current year’s profit is overstated.
(c) Previous year’s profit is overstated and current year’s profit is overstated.
(d) Previous year’s profit is understated and current year’s profit is and current year’s profit is
understated.
100) Trading account is a:
(a) Personal A/c (b) Real A/c
(c) Nominal A/c (d) None of the above
ANSWERS:
1) (c)
2) (c)
3) (c)
4) (a)
5) (d)
6) (a)
7) (b)
8) (a)
9) (b)
10) (a)
11) (c)
12) (d)
13) (d)
14) (c)
15) (b)
16) (c)
17) (b)
18) (c)
19) (a)
20) (c)
21) (a)
22) (a)
23) (c)
24) (a)
25) (a)
26) (b)
27) (b)
28) (d)
29) (c)
30) (b)
31) (a)
32) (a)
33) (b)
34) (c)
35) (d)
36) (c)
37) (b)
38) (d)
39) (b)
40) (a)
41) (b)
42) (b)
43) (a)
44) (a)
45) (b)
46) (a)
47) (b)
48) (c)
49) (d)
50) (b)
51) (a)
52) (a)
53) (d)
54) (c)
55) (d)
56) (c)
57) (d)
58) (c)
59) (a)
60) (d)
61) (b)
62) (a)
63) (b)
64) (b)
65) (b)
66) (c)
67) (a)
68) (b)
69) (d)
70) (b)
71) (d)
72) (b)
73) (c)
74) (a)
75) (c)
76) (c)
77) (d)
78) (b)
79) (a)
80) (b)
81) (c)
82) (a)
83) (b)
84) (b)
85) (b)
86) (b)
87) (b)
88) (c)
89) (a)
90) (b)
91) (d)
92) (c)
93) (d)
94) (d)
95) (b)
96) (d)
97) (d)
98) (b)
99) (a)
100) (c)