Inter PN-6 Financial Accounting Quiz 1

1. Goods purchased from A for ₹2,000 passed through sales book. The rectification of this error results in              .

2. Purchase of machinery worth ₹5,000 was omitted from accounts. The rectification entry is          .

3. A credit sale of goods to Amir, worth ₹600 was recorded in Purchase Book. In the rectification entry                 .

4. Which of the following errors in an error of omission?

5. Goods purchased costing ₹60,000 and cash paid ₹45,000 after receipt of a cash discount of ₹9,000. What is the percentage of trade discount got?

6. Which of the following will be recorded as Contra Entry in a Cash Book?

7. Credit balance of a nominal account shows            

8. Journal entry of wages ₹10,000 paid for installation of machinery will be               .

9. If Capital on 01.01.2023 was ₹24,000. Capital on 31.12.2023 is was ₹12,000. Profit /(Loss) during the year was ₹6,000 and Fresh Capital introduced was ₹1,200 Then the amount of drawings was

                .

10. Cost of Machine B is ₹90,000, Expenses incurred at the time of purchase to be capitalized is ₹10,000. Estimated Residual Value of Machine B is ₹20,000. Expected Useful Life is 8 years.Compute the amount depreciations under SLM method.

11. Original cost of a machine is ₹ 1,50,000, residual value ₹10,000, if depreciation is charged @ 10% per annum under WDV method then depreciation for 3rd year will be              .

12. Which of the following book is both a journal and a ledger?

13. Purchase of a laptop for office use wrongly debited to Purchase Account. It is an error of       .

14. The basic principles of concept is that business is assumed to exist for an indefinite period    .

15. Which of the following purpose is served from the preparation of Trial Balance?

16. Which of the following is/are revenue expenditure?

17. Which of the following account has a credit balance?

18.                              is specially suited to mines, oil wells, quarries, sandpits and similar assets of a wasting character.

19. Which of the following is an example of Capital Expenditure?

20. An obligation which may or may not materialize is a/an .

21. Which of the following is not a Fundamental Accounting Assumption?

22. Which of the following is of capital nature?

23. Outward Invoice issued is a source document of

24. A resource owned by the business with purpose of using it for generating future profit, is known as

25. Which of the following is not a method of charging depreciation?