FA Question Bank TT1-1
FA Question Bank TT1-1
FA Question Bank TT1-1
QUESTION BANK
B.COM 101
Long Questions
Que. 1. What do you mean by Accounting Standards? How accounting standards are formulated?
Explain the nature and scope of Accounting Standards in brief.
Que. 2. Journalise the following transactions in the books of Rama & Sons and post them into
ledger and prepare Trial Balance
Que. 3. Identify the steps in the accounting cycle and discuss the role of accounting records in an
organization.
Que. 1. The following entries have been passed by a student. You have to state whether these
entries are correctly passed. If not so, pass the correct Journal Entries.
Que. 2. Comment on any five (answer briefly explaining the basic concept involved):
(a) In accounting, all business transactions are recorded as having a dual aspect.
(c) Measurement of business income requires matching revenue with related cost or expense.
(d) Depreciation is the process of apportionment of the cost of an asset over its useful life.
(f) Trial Balance is a summary record of all assets and liabilities of business.
(h) The convention of conservatism takes into account all prospective profits but leaves all
prospective losses.
(i) The term 'Current Liabilities' is used to denote those liabilities which are payable after a year.
(j) Accounting Standards are formulated by Accounting Standard Board of Institute of Chartered
Accountants of India.
The following balances existed in the books of Sharma & Sons on 1st March, 2015:
Assets: Cash in hand Rs 50,000; Cash at Bank Rs. 55,000; Debtors (Kirti Rs. 45,000; Gaurav Rs.
25,000); Stock Rs. 1,60,000 and Machinery Rs. 2,00,000
2015
March 7 Issued a cheque to Kumar Chand in full settlement of their account after
deducting cash discount @ 5%.
March 12 Received cash Rs. 30,000 and cheque Rs. 4,000 from Dev. The cheque
was sent to bank on the same day. Discount allowed Rs.500.
March 14 Purchased machinery from Ram & Co. on credit for Rs. 25,000.
March 16 Sharma withdrew goods for his personal use Rs. 10,000.
March 21 Purchased goods from Govind for Rs. 40,000. Trade Discount 10%.
March 27 Received from Anshul Rs. 10,000. Discount allowed Rs. 50.
Difference Between
Short Notes
MCQs
(c)Accountant
(d)None of these
8. The realization principle indicates that revenue usually should be recognized and
recorded in the accounting records:
(d)Is used in accrual accounting to determine the proper period for recognition of expenses
(a)Revenue Profit
(b)Capital Profit
(c)Loss
(a)Real
(b)Personal
(c)Nominal
(d)None of these
(a)Real
(b)Personal
(c)Nominal
(d)None of these
(a)Going Concern
(b)Consistency
(c)Conservatism
(d)Business Entity
(a)Salary
(b)Cash
(c)Ram
(a)Capital Expenditure
(b)Revenue Expenditure
17. Outstanding expenses and Prepaid expenses are shown onand side
of trial balance.
(c)Materiality Concept
(d)None of these
(a)Real
(b)Personal
(c)Nominal
(d)None of these
(b)Personal
(c)Nominal
(d)None of these
(a)Salary
(b)Cash
(c)Ram
(a)Debit
(b) Credit
(c)Both
(d)None of these
(a)Capital Expenditure
(a)Capital
(b)Revenue
(c)Deferred Revenue
26. Which of the following will not be recorded in the books of accounts?
30. X ltd follows the Written Down Value Method of depreciating machinery year after year due
to
(a) Comparability
(b) Convenience
(c) Consistency
(d) All of the above
33. A withdrawal of cash from business by the proprietor should be credited to:
(a) Drawings Account
(b) Capital Account
(c) Cash Account
(d) Profit & Loss Account
35. The journal entry to record sale of service on credit should include
(a) debit to cash and credit to debtors.
(b) debit to fees income and credit to debtors.
(c) debit to debtors and credit to fees income.
(d) none of the above
39. If Ram has sold goods for cash, the entry will be recorded in:
40. If the debit as well as the credit aspects of a transaction is recorded in the cash book itself, it
is called:
(a) Ram
(b) cash A/c
(c) sales A/c
(d) None of the above
(a) Events
(b) Transactions
(c) Journal
44. During the life time of an entity, accounting produces financial statements in accordance with
which basic accounting concept-
45. According to which of the following concept, in determining the net income from business,
all costs which are applicable to the revenue of the period should be charged against that revenue
49. The prime entry for the acquisition of a cash book, ledgers and a journal for Rs.2,40,00,000
from W.Smith Ltd, on credit would be in the:
(b) Journal
(c)Purchase Book
50. The amount paid by a business as premium on the owner's life insurance is accounted as: