Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25 Section 26 Section 27 Section 28 Section 29 Section 30

21.
The main purpose of this . . . . . . . . accounting is to ascertain profit or loss during a specific period, to show financial position of the business.

A. financial accounting

B. cost accounting

C. management account

D. human resource accounting

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22.
Given that the value of furniture on 1^st Januray 1993 is Rs. 8,000, furniture purchased during the year is Rs. 4,000, sale of furniture no loss no profit basis is Rs. 2,000, and the furniture is valued at Rs. 7,000 on 31^st December 1993, the depreciation for the year 1993 will be:

A. Rs. 1,000

B. Rs. 3,000

C. Rs. 5,000

D. Rs. 7,000

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23.
The preparation of a Trial balance helps in:

A. Locating errors of principle

B. Locating errors of ommission

C. Locating clerical errors

D. Locating compensatory errors

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24.
Rebate on bills discounted is . . . . . . . . from interest and discount in the P/L account.

A. added

B. deducted

C. not deducted

D. None of these

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25.
Public limited companies cannot issue . . . . . . . .

A. equity shares

B. deferred shares

C. preference shares

D. right shares

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26.
When a bill is discharged, the acceptor debits . . . . . . . .

A. Creditor's account

B. Cash account

C. Bills payable account

D. Bills receivable account

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27.
When a bill drawn by A on B (and retained till the date of maturity is dishonoured on the due date), it is debited (in the books of A) to . . . . . . . .

A. Bill Receivable Account

B. B's Account

C. Bills Payable Account

D. Cash Account

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28.
If the rate of gross profit on sales is 25% and the cost of goods sold is Rs. 75,000, then the amount of total sales will be:

A. Rs. 1,00,000

B. Rs. 93,750

C. Rs. 92,150

D. Cannot be known

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29.
If the cost of goods sold is Rs. 1,20,000 and the rate of gross loss is $$\frac{1}{4}$$ on sales, the amount of sales is:

A. Rs. 1,20,000

B. Rs. 90,000

C. Rs. 80,000

D. Rs. 96,000

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30.
Goods of the value of Rs. 1500 taken by the proprietor for his personal use should be debited to:

A. drawing account

B. sales account

C. purchases account

D. stock account

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Accounting MCQ Questions and Solutions with Explanations | Commerce

21. The main purpose of this . . . . . . . . accounting is to ascertain profit or loss during a specific period, to show financial position of the business.

Answer & Solution

22. Given that the value of furniture on 1st Januray 1993 is Rs. 8,000, furniture purchased during the year is Rs. 4,000, sale of furniture no loss no profit basis is Rs. 2,000, and the furniture is valued at Rs. 7,000 on 31st December 1993, the depreciation for the year 1993 will be:

Answer & Solution

23. The preparation of a Trial balance helps in:

Answer & Solution

24. Rebate on bills discounted is . . . . . . . . from interest and discount in the P/L account.

Answer & Solution

25. Public limited companies cannot issue . . . . . . . .

Answer & Solution

26. When a bill is discharged, the acceptor debits . . . . . . . .

Answer & Solution

27. When a bill drawn by A on B (and retained till the date of maturity is dishonoured on the due date), it is debited (in the books of A) to . . . . . . . .

Answer & Solution

28. If the rate of gross profit on sales is 25% and the cost of goods sold is Rs. 75,000, then the amount of total sales will be:

Answer & Solution

29. If the cost of goods sold is Rs. 1,20,000 and the rate of gross loss is $$\frac{1}{4}$$ on sales, the amount of sales is:

Answer & Solution

30. Goods of the value of Rs. 1500 taken by the proprietor for his personal use should be debited to:

Answer & Solution

Read More Section(Accounting)

21.
The main purpose of this . . . . . . . . accounting is to ascertain profit or loss during a specific period, to show financial position of the business.

22.
Given that the value of furniture on 1^st Januray 1993 is Rs. 8,000, furniture purchased during the year is Rs. 4,000, sale of furniture no loss no profit basis is Rs. 2,000, and the furniture is valued at Rs. 7,000 on 31^st December 1993, the depreciation for the year 1993 will be:

23.
The preparation of a Trial balance helps in:

24.
Rebate on bills discounted is . . . . . . . . from interest and discount in the P/L account.

25.
Public limited companies cannot issue . . . . . . . .

26.
When a bill is discharged, the acceptor debits . . . . . . . .

27.
When a bill drawn by A on B (and retained till the date of maturity is dishonoured on the due date), it is debited (in the books of A) to . . . . . . . .

28.
If the rate of gross profit on sales is 25% and the cost of goods sold is Rs. 75,000, then the amount of total sales will be:

29.
If the cost of goods sold is Rs. 1,20,000 and the rate of gross loss is $$\frac{1}{4}$$ on sales, the amount of sales is:

30.
Goods of the value of Rs. 1500 taken by the proprietor for his personal use should be debited to: