Deck 48: Accounting for Receipts, Payments, Income, and Expenditure in Consignment and Joint Venture Businesses

Question 1

Receipts and Payments account is

A)Nominal Account
B)Real Account
C)Personal Account
D)None of the above

Answer 1

Real Account

Question 2

Income and Expenditure account is

A)Nominal Account
B)Real Account
C)Personal Account
D)None of the above

Answer 2

Nominal Account

Question 3

Income and expenditure Account shows a balance of:

A)Capital Account
B)Cash in hand
C)Net Profit
D)Excess of revenue over expenditure or vice versa.

Answer 3

Cash in hand

Question 4

A heavy balance in the Receipts and Payments Account means

A)Heavy Surplus
B)Heavy profit
C)Heavy Cash
D)All of the above

Question 5

A heavy balance in the Income and Expenditure Account means

A)Heavy Surplus
B)Heavy profit
C)Heavy Cash
D)All of the above

Question 6

The main source of income for non trading organization is

A)Subscriptions
B)Donations
C)Entrance fee
D)Interest on Deposit

Question 7

Opening balance of Receipts and Payments accounts in the credit side shows

A)Bank balance at the beginning of the year
B)Bank overdraft at the beginning of the year
C)Capital at the beginning of the year
D)Cash in hand at the beginning of the year

Question 8

Goods sent on consignment should be debited by consignor to:

A)Consignment A/c
B)Goods Sent on Consignment A/c
C)Consignee's A/c
D)Consignor's A/c

Question 9

In the books of consignor the balance of the consignment stock account would be shown:

A)As an asset in the balance sheet.
B)As a liability in the Balance Sheet
C)On the credit side of the Trading A/c
D)On the debit side of Consignment A/c

Question 10

The consignor is:

A)Principal
B)Agent
C)Debtor
D)None of the above

Question 11

Account Sales is submitted by:

A)Consignor
B)Consignee
C)Principal to his agent
D)Debtor to creditor

Question 12

Joint Venture is of the nature of:

A)Personal Account
B)Real Account
C)Nominal Account
D)Capital Account

Question 13

Which of the following 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 14

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 15

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 16

In accounting consignment means

A)Goods forwarded from one place to another.
B)Goods forwarded by a person to another.
C)Goods sent by its owner to his agent.
D)Goods sent by its owner to his agent for the purpose by sale.

Question 17

The consignor is

A)Principal
B)Agent
C)Debtor
D)None of them

Question 18

In the books of consignor, the expenses incurred by consignee should be debited to

A)Consignee A/c
B)Consignment A/c
C)Expenses A/c
D)Consignor's A/c

Question 19

In the books of consignor, the balance in the goods sent on consignment account is shown

A)On the asset side to balance sheet
B)On the liability side of balance sheet
C)On the credit side of trading A/c
D)On the credit side of consignment A/c

Question 20

Joint venture account is a

A)Personal account
B)Real account
C)Nominal account
D)None of the above

Question 21

In case of Memorandum Method, when there are three co-ventures, each co-venturer opens in his books for the venture

A)One account
B)Two accounts
C)Three accounts
D)None

Question 22

P and Q are partners sharing profit and loss in the proportion 2:1 in the Joint Venture. P keeps accounts of joint venture. Q gave Rs. 5,000 to P for joint venture business. P prepared accounts and showed profit of Rs. 2,250. P settled Q's account. In the books of Q, Rs. _______ profit is credited.

A)Rs. 2,250
B)Rs. 750
C)Rs. 1,500
D)Rs. 5,750

Question 23

When a complete set of books are maintained for the joint venture and in case where an amount is spent on account of expenses or for purchasing goods for the venture, the entry would be

A)Joint Venture A/c Dr To Joint Bank A/C
B)Joint Bank A/c Dr To Joint Venture A/c
C)Joint Venture A/c Dr To Venturer's A/c
D)Venturer's A/c Dr To Joint Venture A/c

Question 24

Consignee becomes a debtor of the consignor when

A)The goods are despatched
B)The goods are received
C)The goods are sold
D)All of the above

Question 25

Del credere commission is given when the consignee

A)Sells all the goods on credit
B)Gets no ordinary commission
C)Bears the loss of bad debts
D)None of the above

Question 26

No journal entry is required to be passed when there is

A)Normal loss
B)Abnormal loss
C)Loss of bad debts
D)All of the above

Question 27

Consignee account is in the nature of

A)Personal account
B)Real account
C)Nominal account
D)None of the above

Question 28

Joint venture account is in the nature of

A)Real account
B)Personal account
C)Nominal account
D)None of the above

Question 29

A joint venture is a

A)A general partnership
B)A particular partnership
C)Not limited to a particular venture
D)None of the above

Question 30

Joint Bank account is

A)Not like a cash book
B)Opened specifically for the venture
C)Operated by one of the ventures
D)All of the above

Question 31

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

A)Equally
B)In the capital ratio
C)As per the agreement
D)None of the above

Question 32

The relationship between the consignor and the consignee is that of

A)Buyer and seller
B)rincipal and agent
C)Debtor and creditor
D)All the above

Question 33

The term used for consignee's remuneration is

A)Commission
B)Brokerage
C)Discount
D)Allowance

Question 34

The party responsible for the risk attached to the goods in consignment is

A)Consignee
B)Consignor
C)Both
D)Creditor

Question 35

The legal ownership of the goods is not transferred till the goods are sold in the case of

A)Sale
B)Consignment
C)Purchase
D)Sale.

Question 36

In Memorandum Joint Venture Account Method, the co-venturer records

A)His transactions only
B)Other co-venturer's transactions only
C)All the transactions of Joint Venture
D)All the above

Question 37

Memorandum Joint Venture Account is prepared to find out

A)Amount due from the co-venturers
B)Profit or loss on the joint venture
C)Sale's account
D)Purchases account

Question 38

The share of profit of the co-venturer maintaining the records is credited to

A)Profit and loss account
B)His personal account
C)Credit account
D)Debtor's account

Question 39

Any bad debt incurred on account of joint venture are debited to

A)Bad Debts Account
B)Debtor's Personal Account
C)Joint Venture Account
D)All the above

Question 40

The person who send the goods to the agent to be sold by him on commission is called

A)Consignor
B)Consignee
C)Merchant
D)None of these

Question 41

The commission given by consignor to the consignee for taking additional risks of recovery of debts on account of sales made on credit is known as ________.

A)Over riding commission
B)Del-credre commission
C)Normal commission
D)None of these.

Question 42

The following accounts should be opened in the case of separate set of books in Joint Venture Account.

A)Joint Venture A/c
B)Joint Bank A/c
C)Co-venturer's A/c
D)All of the above

Question 43

What are the two types of losses of goods in Joint venture Account.

A)Normal and abnormal losses
B)Simple loss and pure loss
C)Executive and execute loss
D)None of these

Question 44

The consignee is:

A)Principal
B)Agent
C)Buyer
D)Seller

Question 45

Account sales is submitted by.

A)Consignor
B)Consignee
C)Principal to his agent
D)Debtor to creditor

Question 46

Del - credere commission is calculated on:

A)Credit sales
B)Cash sales
C)Total sale
D)Both (a) and (b)

Question 47

Joint Bank Account is

A)not like a cash book
B)opened specifically for the venture
C)operated by one of the ventures
D)None of the above

Question 48

When goods are purchased for the Joint Venture, the amount is debited to

A)Purchases Account
B)Venturer's Capital Account
C)Joint Venture Account
D)None of the Above

Question 49

When a separate set of books is kept for the joint Venture, the commonly accounts maintained are

A)Joint Bank Account
B)Co-Venturers' Account
C)Joint Venture Account
D)All of the Above

Question 50

Joint bank account is opened

A)when no separate books for the venture are maintained
B)when separate books for the venture are maintained
C)under no circumstances
D)None of the above