Deck 39: Accounting Standards and Joint Ventures

Question 1

Loss on Joint venture is -

A)Credited to Profit and Loss A/c .
B)Debited to co-venturers capital A/c.
C)Credited to Capital Fund A/c .
D)Debited to Suspense A/c

Answer 1

Debited to co-venturers capital A/c.

Question 2

Stock left over taken by a Co- venturer is-

A)Debited to Joint Venture A/c .
B)Credited to Co-venturer A/c .
C)Credited to Joint Venture A/c .
D)Credited to Joint Bank A/c

Answer 2

Credited to Joint Venture A/c .

Question 3

Joint Bank A/c is a -

A)Nominal A/c .
B)Personal A/c .
C)Real A/c .
D)Dummy A/c

Answer 3

Personal A/c .

Question 4

Joint Venture is a --

A)Personal A/c .
B)Nominal A/c .
C)Real A/c .
D)Memorandum A/c

Question 5

Joint Venture with…………..(another co-venturer) A/c is a --

A)Personal A/c .
B)Nominal A/c .
C)Real A/c .
D)Memorandum A/c

Question 6

Which of these is not a feature of a Joint venture

A)Continuing business .
B)No firm name .
C)Partners called co-venturer.
D)Partnership for limited purpose

Question 7

Which of these accounts are not opened in a joint venture

A)Stock reserve .
B)Joint bank A/c .
C)Joint venture A/c .
D)Co-venturers personal A/c

Question 8

Profit or loss on joint venture business is shared by the co-venturers --

A)Equally .
B)In the ratio of capital contributed .
C)In the agreed upon ratio .
D)A per seniority

Question 9

Professional bodies of which of the following countries is not a founding member of IASC -

A)Australia .
B)India .
C)Japan .
D)USA

Question 10

Professional bodies of which of these countries are founding member of IASC -

A)UK .
B)Canada .
C)Germany .
D)All the three

Question 11

Professional bodies of how many countries founded IASC in 1973

A)8 .
B)9 .
C)7 .
D)10

Question 12

Which of the following bodies is presented in ASB

A)CBI .
B)CAG .
C)RBI .
D)Trade union

Question 13

The Accounting Standards are issued for the purpose of -

A)For improving the reliability of financial statements
B)Harmonizing accounting policies
C)Elimination of non-comparability between financial statements
D)All the three

Question 14

So far ---- AS have been issued by IASB

A)40 .
B)42 .
C)39 .
D)41

Question 15

AS ---- replaced AS 8

A)29 .
B)30 .
C)28 .
D)26

Question 16

In Indian Accounting Standards are mandatory for -

A)Corporate bodies .
B)Proprietorship concerns .
C)Co-operative societies
D)All the three

Question 17

AS 10 is not applicable to --

A)Natural resource .
B)Live Stock .
C)Forest and plantation produced .
D)All the three

Question 18

A change in Depreciation Method under AS-6 is treated --

A)Change in Accounting Policy .
B)Prior-Period Adjusting .
C)Change in Accounting Standards .
D)All the three

Question 19

Which of these is an appropriation of profit -

A)Provision for payment of bonus .
B)Provision for depreciation .
C)Provision for dividend .
D)Provision for doubtful debts

Question 20

Current Liabilities mean -

A)Liabilities which are payable within 12 months
B)Liabilities which are payable immediately
C)Liabilities which payable after one accounting year
D)Liabilities which are readable within 3 months

Question 21

AS 30 deals with

A)Accounting Policy
B)Financial Investment presentation
C)Financial Investment Reinvestment Measurement
D)Financial Investment disclosure

Question 22

Expenses A/c will always have -

A)Debit balance .
B)Credit balance .
C)Either (a) or (b) .
D)No balance at all

Question 23

Which of these is not a cause of depreciation

A)Usage .
B)Passage of time .
C)Fall in market demand .
D)Wear and tear

Question 24

Revenues affect net income -

A)in the period during which they are earned
B)in the period when they are collected
C)in the period when they are accounted for
D)any of the above three which occur first

Question 25

Which of these Accounts are not closed in a Trading A/c

A)Sales A/c .
B)Purchase A/c .
C)Wages A/c .
D)Depreciation A/c

Question 26

Undercasting of the total of Sales A/c will affect -

A)Gross Profit and Loss .
B)Debtors A/c .
C)Closing Stock .
D)Working Capital

Question 27

` 5,500 incurred on sundry expenses inadvertently recorded in the books of account as ` 550. This is an example of -

A)Fraud .
B)Error of Commission .
C)Error of Principle .
D)Compensatory Error

Question 28

How does depreciation effect basic accounting equation

A)Leads to decreases in assets and shareholders equity
B)Leads to decrease in asset only
C)Leads to increase in liability and decrease in assets
D)Leads to decrease in shareholders equity

Question 29

--- Principle specifies that cost or expenses should be recorded at the same time as the revenue to which they correspond

A)Going run concern .
B)Matching .
C)Historical Cost .
D)Prudence

Question 30

X a debtor is declared insolvent and only 25 paise in a rupee is recovered from his estate. If X owes ` 5,000 to Y, Y would debit Cash A/c by -

A)5,000 .
B)25 .
C)1,250 .
D)2,500

Question 31

In question no. 351, Bad Debts A/c would be debited by -

A)3,600 .
B)3,750 .
C)1,250 .
D)4,000

Question 32

It is supposed that on 31-12-20012, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 5 % of the sundry debtors are doubtful. It is also suppose that during the year 2013 actual bad debts were Rs. 1,600. What entry will pass to create provision for doubtful debts?

A)Profit & Loss a/c Rs. 2,000 (Dr) & Provision for doubtful debts a/c Rs. 2,000 (Cr)
B)Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr)
C)Provision for doubtful debts a/c Rs. 1,600 (Dr) & Profit & Loss a/c Rs. 1,600 (Cr)
D)Profit & Loss a/c Rs. 1,600 (Dr) & Provision for doubtful debts a/c Rs. 1,600 (Cr)

Question 33

Opening Stock ` 15,000, Closing Stock ` 6,000, Total Purchase during the year ` 30,000. Given that Opening Stock inadvertently includes postage stamps of ` 1,500. Find the cost of goods sold

A)40,000 .
B)39,000 .
C)37,500 .
D)36,000

Question 34

From the following details estimate the capital as on 1.1.2012, Capital as on 31.12.2012 ` 2,40,000, drawing ` 20,000, Profit during the year ` 25,000

A)2,35,000 .
B)2,25,000 .
C)2,20,000 .
D)2,00,000

Question 35

` 1,250 paid for the residential telephone bill of the proprietor which of these accounts will be detailed

A)Household A/c .
B)Drawing A/c .
C)Telephone A/c .
D)None

Question 36

When a large number of articles are sent on a sale or return basis,, it is necessary to maintain

A)Sale journal
B)Goods returned journal
C)Sale or return journal
D)None of the above.

Question 37

On 31st March, goods sold at a sale price of ` 30,000 were lying with customer, Mohan to whom these goods were sold on 'sale or return basis' and recorded as actual sales. Since' no consent was received from Mohan, the adjustment entry was made presuming goods were sent on approval at a profit of cost plus 20%. In the balance sheet, the stock with customers account will be shown at `

A)30,000.
B)24,000.
C)20,000.
D)25,000.

Question 38

XYZ send goods worth ` 1,00,000 to Y on consignment basis at 20% above the cost price. The goods are sold by the consignee on a mark of 15% on invoice price. Find the total mark up % over the cost price of the goods -

A)30% .
B)38% .
C)35% .
D)25%

Question 39

In question no. 361 above find the total profit on consignment if the consignee expenses amounted to ` 8,000

A)30,000 .
B)28,000 .
C)25,000 .
D)38,000

Question 40

From the following details ascertain the adjusted Bank balance as per Cash Book - Overdraft as per Cash Book ` 80,000. Cheque received entered twice in the Cash Book ` 5,000. Credit side of bank column cast short by ` 500. Bank charges amounting to ` 200 entered twice. Cheque issued but dishonoured ` 2,000

A)80,500 .
B)85,500 .
C)85,000 .
D)85,300

Question 41

From the following details calculate the net profit for the year ending 31.03.2013 Opening Stock ` 1,50,000. Purchase ` 2,50,000. Manufacturing Expenses ` 80,000. Selling Expenses ` 20,000. Administration Expenses ` 10,000. Financial Charges ` 5,000. Slaes ` 5,55,000 which includes damaged goods sold for ` 5,000 against the cost price of ` 12,000. Gross profit margin on normal sales is 20% on the sales

A)65,000 .
B)68,000 .
C)70,000 .
D)77,000

Question 42

L of Lucknow consigned goods costing ` 60,000 to A of Allahabad at an invoice price bearing 331/3 % mark up on the cost price. Goods costing ` 15,000 were damaged in the transit and the insurance company admitted the claim in full. Expenses incurred by the consignor on loading and transportation of the goods amounted to ` 1,800. The consignee incurred ` 200 on cartage and ` 6,000 as Godown Rent and sold 2/3 of the goods received by him at the invoice price. He is entitled to 5% normal commission and 2.5% del credere commission. Find the value of goods sold

A)60,000 .
B)40,000 .
C)55,000 .
D)50,000

Question 43

Based on the facts given in question no. 366 above find the total commission payable to the Consignee

A)2,000 .
B)3,000 .
C)1,000 .
D)1,500

Question 44

Based on the facts given in question no. 366 find the value of abnormal loss

A)15,000 .
B)16,500 .
C)15,500 .
D)15,750

Question 45

Research and Development Cost A/c appearing in Balance Sheet is a -

A)Real A/c .
B)Intangible Asset A/c .
C)Tangible Asset A/c .
D)Personal A/c

Question 46

A trade purchase of ` 5,500 from Y was passed through Sales Day Book as ` 550, what rectification entry would be passed if the mistake is detected before preparation of Trading and Profit & Loss A/c

A)Sales A/c ….Dr. ` 550, Purchase A/c ….Dr. ` 5,500, Y's A/c Cr. ` 6,050
B)Profit and Loss Adjustment A/c ….Dr. ` 6,050, Y's A/c Cr. ` 6,050
C)Sales A/c ….Dr. ` 550, Purchase A/c ….Dr. ` 5,500, Suspense A/c Cr. ` 6,050
D)None

Question 47

Huge expenditure incurred at the time of launching of a new product in market is a/an -

A)Revenue Expenditure .
B)Capital Expenditure .
C)Loss .
D)Deferred Revenue Expenditure

Question 48

The Primary objective of providing depreciation is:

A)To calculate true profit .
B)To show the asset on market value .
C)To reduce tax Burdon .
D)To provide funds for replacement