Deck 49: Accounting for Co-Venturers, Consignments, and Branches

Question 1

In case of memorandum method when there are three co-venturers, each co-venturer opens in its books for the venture

A)One account
B)Two accounts
C)Three accounts.
D)None of the above

Answer 1

One account

Question 2

In accounting consignment, signifies

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

Answer 2

Goods despatched by its owner to his agent for the purpose of sale.

Question 3

Goods sent on consignment should be debited by consignor to:

A)Consignment account
B)Goods sent on consignment account
C)Consignors account
D)None of the above

Answer 3

Consignment account

Question 4

In the books of consignee the expenses incurred by him on consignment are debite

A)To consignment account
B)To cash account
C)To consignor's account
D)None of the above

Question 5

In the books of consignee the sale of goods is credited to:

A)Consignor's account
B)Sales account
C)Consignee's account
D)Goods sent on consignment account

Question 6

The system of keeping accounts generally adopted by small size branches are:

A)Debtors system
B)Stock & Debtors system
C)Wholesale branch system
D)Final account system

Question 7

Goods are supplied by the head office to dependent branches are at:

A)Cost price
B)Invoice price
C)Market price
D)Cost or invoice price

Question 8

Under debtors system which account is prepared by head office to calculate profit or loss of each branch:

A)capital account
B)debtors account
C)branch account
D)branch adjustment account

Question 9

Under debtors system depreciation on fixed asset is:

A)credited to branch A/c
B)debited to branch A/c
C)not shown in branch A/c
D)shown in debtors A/c

Question 10

Independent Branch meant when separate account are maintained by:

A)H O
B)Branch
C)Both (a) and (b)
D)None of the above

Question 11

Branch which does not maintain its own set of books is:

A)Dependent branch
B)Independent branch
C)Foreign branch
D)Local branch

Question 12

Usually dependent branch makes:

A)Cash sales only
B)Credit sales only
C)Cash & Credit sales
D)Instalment sales

Question 13

Under Stock & Debtors system, which account is prepared by H.O to ascertain the Gross Profit earned by the branch:

A)Branch stock A/c
B)Branch Adjustment A/c
C)Branch expenses A/c
D)Branch P&L A/c

Question 14

Branch Account under Debtor System is

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

Question 15

When goods are invoiced to Branch at selling price, the value of goods is adjusted by

A)Debiting goods sent to Branch Account
B)Crediting goods sent to Branch Account
C)Debiting Stock to Reserve Account
D)Crediting Stock to Reserve Account

Question 16

Goods sent by the Head Office to the branch but not received by the branch are termed as

A)Cash in transit
B)Goods in transit
C)Independent goods
D)Abnormal loss

Question 17

Under the stock and debtor system, Branch A/c is treated as -

A)Joint A/c
B)Nominal A/c
C)Personal A/c
D)Real A/c

Question 18

Goods are sent to branch at cost plus 20% .If closing stock of the branch is Rs 60,000 at invoice price, Rs____ will be credited to stock reserve a/c.

A)Rs. 10,000
B)Rs. 12,000
C)Rs. 6,000
D)Rs. 12,600

Question 19

When Branch assets a/c is kept in the books of H.O., the H.O. will debit following a/c for its depreciation-

A)Branch P & L A/c
B)Depreciation A/c
C)Branch A/c
D)None of the above

Question 20

Which of the following branches, taking into consideration the scope of authority and responsibility, prepares its own independent final accounts?

A)Independent Branch
B)Foreign Branch
C)Dependent branch
D)Independent and Foreign branch both

Question 21

If the opening balance of debtors is Rs.16,000 and closing balance is Rs.80,000, cash received from debtors is Rs.35,000 and bad debts is Rs.1,000, then what will be the amount of credit sales?

A)Rs. 95,000
B)Rs. 1,05,000
C)Rs. 1,00,000
D)Rs. 1,10,000

Question 22

Stock and debtors system is generally used when the goods are sent to the branch at

A)Cost price
B)An invoice price
C)Both a and b
D)None of the above

Question 23

Branch stock account is a practical means of controlling stock at

A)Branch
B)Head office
C)Both a and b
D)None of the above

Question 24

Wholesale prices are fixed above

A)Cost
B)Invoice price
C)Both a and b
D)None of these

Question 25

Goods - in - transit are shown in the balance sheet of

A)Branch
B)Head office
C)Both a and b
D)None of the above