Accounting MCQ Questions and Solutions with Explanations

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31.
On 1^st January 1992 there was a balance of Rs. 4,000 in the plant and machinery account. An addition of Rs. 2,000 was made on 1^st July 1992. Accounts were closed for the year on 31^st December 1992. If depreciation was charged at 10% per annum, the balance in the plant and machinery account on the closing date would be:

A. Rs. 5,300

B. Rs. 5,400

C. Rs. 5,500

D. Rs. 5,600

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32.
Valuation balance sheet is prepared by . . . . . . . .

A. general insurance company

B. life insurance company

C. joint stock company

D. banking company

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33.
While preparing P/L account, rebate on bills discounted to be provided shall be deducted from discount received in . . . . . . . .

A. Schedule 16

B. Schedule 15

C. Schedule 14

D. Schedule 13

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34.
If there is a prize fund and prizes are awarded, expenses and income are transferred to . . . . . . . .

A. income and expenditure account

B. assets side of the balance sheet

C. the liabilities side of the balance sheet

D. trading account

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35.
Journal Proper is meant for recording . . . . . . . .

A. credit purchase of fixed assets

B. return of goods

C. all such transactions for which no special journal has been kept by the business

D. supply of goods

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36.
Stock as on 5^th January - Rs. 27,000; purchases between 31^st December and 5^th January - Rs. 700; cost of sales between 31^st December and 5^th January - Rs. 1,500 what was the stock on 31^st December?

A. Rs. 27,800

B. Rs. 26,200

C. Rs. 26,300

D. Rs. 28,500

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37.
The payment side of the cash book is undercast by Rs. 200. When overdraft as per pass book is the starting point, to get the overdraft as per cash book . . . . . . . .

A. Rs. 200 will be deducted

B. Rs. 200 will be added

C. Rs. 400 will be added

D. Rs. 400 will be deducted

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38.
Wages paid to workers must be debited to . . . . . . . . account.

A. Wages

B. Machinery

C. Factory expenses

D. Offices expenses

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39.
The convention of conservatism will have the effect of:

A. Over statement of assets

B. Under statement of assets

C. Under statement of liabilities

D. Under statement of provision for bad and doubtful debts

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40.
Interest on debenture is . . . . . . . .

A. an appropriation of profit

B. a charge against profit

C. an adjustment of profit

D. None of these

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Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

32. Valuation balance sheet is prepared by . . . . . . . .

Answer & Solution

33. While preparing P/L account, rebate on bills discounted to be provided shall be deducted from discount received in . . . . . . . .

Answer & Solution

34. If there is a prize fund and prizes are awarded, expenses and income are transferred to . . . . . . . .

Answer & Solution

35. Journal Proper is meant for recording . . . . . . . .

Answer & Solution

36. Stock as on 5th January - Rs. 27,000; purchases between 31st December and 5th January - Rs. 700; cost of sales between 31st December and 5th January - Rs. 1,500 what was the stock on 31st December?

Answer & Solution

37. The payment side of the cash book is undercast by Rs. 200. When overdraft as per pass book is the starting point, to get the overdraft as per cash book . . . . . . . .

Answer & Solution

38. Wages paid to workers must be debited to . . . . . . . . account.

Answer & Solution

39. The convention of conservatism will have the effect of:

Answer & Solution

40. Interest on debenture is . . . . . . . .

Answer & Solution

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32.
Valuation balance sheet is prepared by . . . . . . . .

33.
While preparing P/L account, rebate on bills discounted to be provided shall be deducted from discount received in . . . . . . . .

34.
If there is a prize fund and prizes are awarded, expenses and income are transferred to . . . . . . . .

35.
Journal Proper is meant for recording . . . . . . . .

36.
Stock as on 5^th January - Rs. 27,000; purchases between 31^st December and 5^th January - Rs. 700; cost of sales between 31^st December and 5^th January - Rs. 1,500 what was the stock on 31^st December?

37.
The payment side of the cash book is undercast by Rs. 200. When overdraft as per pass book is the starting point, to get the overdraft as per cash book . . . . . . . .

38.
Wages paid to workers must be debited to . . . . . . . . account.

39.
The convention of conservatism will have the effect of:

40.
Interest on debenture is . . . . . . . .