Commerce Accountancy · Economics

Journal Entries and Depreciation

596 Questions

Journal entries and depreciation are core accountancy topics involving the systematic recording of financial transactions and the calculation of asset value reduction over time. Students must solve problems related to bad debts, provision calculations, and error rectification. These questions are essential for candidates appearing in commerce and accounting competitive exams.

Bad debts provisionAsset depreciation calculationPurchase return errorsTrial balance rectificationDebenture issuance

Journal Entries and Depreciation Questions

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

On May $01$, $2005$ U Ltd. issued six per cent, $10,000$ convertible debentures of Rs. $100$ each at a premium of $20\%$ Interest is payable on September $30$ and March $31$ every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended March $31$, $2006$, will be.

  1. Rs. $66,000$
  2. Rs. $72,000$
  3. Rs. $60,000$
  4. Rs. $55,000$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Interest is calculated on the face value of 10,000 * 100 = 10,00,000. The rate is 6%. Interest for the year (May 1 to March 31 is 11 months) = 10,00,000 * 0.06 * (11/12) = 55,000.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

On May $01$, $2003$, Y Ltd. issued $7\%$ $40,000$ convertible debentures of Rs. $100$ each at a premium of $20\%$. Interest is payable on September $30$ and March $31$, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended March $31$, $2004=?$

  1. Rs. $2,80,000$
  2. Rs. $2,33,333$
  3. Rs. $3,36,000$
  4. Rs. $2,56,667$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Face value = 40,000 * 100 = 40,00,000. Interest rate = 7%. Period from May 1, 2003 to March 31, 2004 is 11 months. Interest = 40,00,000 * 0.07 * (11/12) = 2,56,666.67, rounded to 2,56,667.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

T Ltd. purchased land and building from U Ltd. for a book value of Rs. $3,00,000$. The consideration was paid by issue of $12\%$ Debentures of Rs. $100$ each at a discount of $20\%$. The debentures account is credited with.

  1. Rs. $3,00,000$
  2. Rs. $3,75,000$
  3. Rs. $3,60,000$
  4. Rs. $2,40,000$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Consideration = 3,00,000. Issue price = 100 - 20% = 80. Number of debentures = 3,00,000 / 80 = 3,750. Debenture account is credited with face value: 3,750 * 100 = 3,75,000.

Multiple choice book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

G Ltd purchased land and building from H Ltd. at a book value of Rs. 2,00,000. The consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of 20%. For this transaction, the debentures account would be credited with -

  1. Rs. 2,60,000

  2. Rs. 2,50,00

  3. Rs. 2,40,00

  4. Rs. 1,60,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Debentures issued at discount of 20%. 
 Number of Debentures issued = 2,00,000/80
                                                     = 2500
Face Value of Debentures = Rs. 100
Debentures account would be credited with 2500*100 = Rs. 2,50,000


Multiple choice

What is the penalty for late filing of TDS returns?

  1. ₹100 per day

  2. ₹200 per day

  3. ₹500 per day

  4. ₹1,000 per day
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A penalty of ₹200 per day is levied for late filing of TDS returns, subject to a maximum of the TDS amount.

Multiple choice

What is the penalty for late filing of GST Annual Return?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 500 per day

  4. Rs. 1,000 per day
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The penalty for late filing of GST Annual Return is Rs. 200 per day.

Multiple choice

What is the late filing fee for GSTR-1?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 500 per day

  4. Rs. 1,000 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The late filing fee for GSTR-1 is Rs. 100 per day.

Multiple choice

What is the penalty for late filing of GST returns for works contracts?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 500 per day

  4. Rs. 1,000 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The penalty for late filing of GST returns for works contracts is Rs. 100 per day.

Multiple choice

What is the late fee for filing GSTR-1 after the due date?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 300 per day

  4. Rs. 400 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The late fee for filing GSTR-1 after the due date is Rs. 100 per day, subject to a maximum of Rs. 5,000.

Multiple choice

What is the late fee for filing GSTR-3B after the due date?

  1. Rs. 50 per day

  2. Rs. 100 per day

  3. Rs. 200 per day

  4. Rs. 300 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The late fee for filing GSTR-3B after the due date is Rs. 50 per day, subject to a maximum of Rs. 2,500.

Multiple choice

What is the penalty for non-maintenance of records by a service provider?

  1. Rs. 5,000

  2. Rs. 10,000

  3. Rs. 25,000

  4. Rs. 50,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The penalty for non-maintenance of records by a service provider is Rs. 5,000.