Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

Incomplete record mechanism of book keeping is ___________.

book keeping and accountancy single entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records meaning of incomplete records, reasons for incompleteness and its limitations ascertaining profit or loss from incomplete records preparation of final accounts from incomplete records preparation of statement of affairs

  1. Scientific

  2. Unscientific

  3. Unsystematic

  4. Both (b) and (c)

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Correct Option: C
Explanation:

Book keeping is an unsystematic method of recording transactions.It is observed, that many businessmen keep incomplete records because of the following reasons : 

(a) This system can be adopted by people who do not have the proper knowledge of accounting principles; 
(b) It is an inexpensive mode of maintaining records.

Purchase book is maintained to record _______________.

book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

  1. All credit purchases

  2. All cash purchases

  3. Purchases of goods

  4. None of the above

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Correct Option: A

____________ is one of the records of circulation section.

book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

  1. Accession Register

  2. Day book

  3. Catalogue Card

  4. AACR-2 (R)

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Correct Option: A

If the purchases made during the year were Rs. 60, 000, the balance of stock in trade at the beginning and at the end of the year were Rs. 12, 000 and Rs. 9, 000 respectively and the gross profit on sales was 1/5th, when which one of the following represent :-

book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

  1. Rs. 15, 750

  2. Rs. 14, 000

  3. Rs. 12, 500

  4. Rs. 17, 250

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Correct Option: C

A and B purchased a piece of land for Rs.40,000 and sold it for Rs.60,000 in 2005. Originally A had contributed Rs. 24,000 and B Rs. 16,000. What will be the profit on venture ?

book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

  1. Rs. 20,000

  2. Rs. 16,000

  3. Rs. 30,000

  4. Nil

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Correct Option: A

Which of the following is not a main column of Sales or Return Journal ?

book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

  1. Goods sent on approval

  2. Goods returned

  3. Goods approved

  4. Purchase

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Correct Option: D

______records the details of goods returned by the business organization to the supplier(s). 

book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

  1. Sales Return Book

  2. Purchase returns books

  3. Journal proper

  4. All of the above

Show answer
Correct Option: B
Explanation:

When the goods purchased on credit are returned to the supplier, these are recorded in the Purchase return book. Sometimes, goods purchased can be defective or of low quality, etc. and hence, need to be returned.

A separate book is maintained for the purchase return and these are not deducted from the purchases in the Purchase book. Also, Purchase return is recorded at the net amount on the invoice.

Mr. N returns the goods of Rs $50,000$ purchases on credit to Mr. Z. This transaction will be recorded by Mr. N in __and by Mr. Z in _____.

book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

  1. Sales Return Book , Purchases Return Book

  2. Purchases Return Book, Sales Return Book

  3. Sales Return Book, Sales Book

  4. Purchases Return Book, Purchase Book

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Correct Option: B

A second hand car is purchased for Rs. 20,000, the amount of Rs. 3,000 is spent on its repairs, Rs. 1,000 is incurred to get the car registered in owner's name and Rs. 2,000 is paid as dealer's commission.
The amount debited to car account will be _____________.

book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

  1. Rs. 20,000

  2. Rs. 23,000

  3. Rs. 24,000

  4. Rs. 26,000

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Correct Option: D

A machine was purchased for Rs. 10, 000 and its life was estimated to be 3 years, and at the end of its life, its book value was Rs. 5, 120. If depreciation is calculated according to Diminishing Balance Method, the rate of depreciation would be?

book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

  1. 25%

  2. 15%

  3. 20%

  4. 10%

Show answer
Correct Option: C
Explanation:

 

Calculation of depreciation

Particulars | Details | Amount | | --- | --- | --- | --- | | I | Value of Machine |   | 10000 | |   | Depreciation 20% | (2000) |   | | II | WDV on 2nd year |   | 8000 | |   | Depn 20% | 1600 |   | | III | WDV on 3rd year |   | 6400 | |   | Depn 20% | 1280 |   | |   | Book value of machine |   | 5120 |