-tli ~~ :::.!_ _'(t.1_'.l:_~~......ill;,_,; : ~ ,:_ 1-: '. . .]!,W_' l... '.Jtll ill- -1 .

''"-~t::C
.,_,_,.t,I!!~""'-'"°·"""-"'·' ~...,
,Jt!:ll•1£1::::.llul!!Ul1"=•="''.::""1ill!l..<.J:..C~OC'._I±[ .:..:..l!.~_;c• 0

INDEX
FINANCIAL ACCOUNTING
CHAPTER CHAPTER NAME NOOF [Link]
NO MCQ'S
I, Bill of Exchonge 36 1-5
2. Joint Venture 32 6-n
3. Insuronce Claim 35 12-15
4. Consignment 51 16-22
5. Hire Purchase 48 23-28
6. Brunch Accounting 47 29-34
7. Departmental Accounting 35-37
8. Partnership Accounting 124 38-52
9. Final Accounts of Commercial Organisations 72 53-62
IO, Final Accounts of Not-for-Profit 62 63-71

yAVffl 6 flNANCIAL ACCOUNTINt; n.

Organisation
Single Entry
Fundamenta.1-s of Accounting
18
146
72-74
Covered in
Accounting Stondards 39 Accounts
Main
Book Voll
TOTAL 710

■
 CA AKASH AGARWAL [Link] AGARWAL

****~
' ,1Jl'.**•
** * *
~ CAAKASH AGARWAL

10. Bills payable honoured during the year,

will be debited to
[Link] AGARWAL

15. The person to whom bill is endorsed is

known as.
(a) None of these. (a) Endorsee
1. Retiring a bill under rebate means 5. A promissory note can be made payable (b) Creditors account (b) Drawee
payment of the bill before due date to the bearer (c) Bills payable account (c) Drawer
(a) True (a) True (d) Cash account (d) None of the above
(b) False (b) False [PP Dec. 2021]
[PP Dec 2016] [PP Dec. 2018] 16. If the date of maturity of a bill is a
11. X draws a bill on Y. Y accepts the same. holiday, then the bill will mature on:
2. A bill of exchange drawn on 12th April, 6. If Ram's acceptance which was Can Y endorse the bill to Z? (a) Next working day
2017 for four months, the date of endorsed by us in favour of Saleem is (a) Yes (b) Preceding working day.
maturity will be dishonoured, then the amount will be (b)No (c) Holiday itself.
(a) 14th August, 2017 debited in our books to [PP Dec. 2021] (d) Other agreed day.
(b) 15th August, 2017 (a) Saleem 17. The date of maturity of bill is 10th
(c) 13th August, 2017 (b)Ram 12. A Bill of 10,000 is renewed. The drawee October, 2009. The Government of
(d) 16th August, 2017 (c) Bills Receivable Account pays 3,000 as part amount of payment India suddenly declared 10th October,
[PP June 2017) (d) None of the above amount of interest charged is 200. The 2009 as the holiday under the Negotiable
[PP June. 2019 Module] value of new bill is Instruments Act, then the bill will
3. The Accommodation bill is drawn (a) 7200 mature on -
(a) To finance actual purchase or sale of 7. Match the items in Column I with the (b) 7400 (a) 9th October, 2009
goods most appropriate items in Column II. (c) 7100 (b) 10th October, 2009.
(b) To facilitate trade transmission. State the item (d) 7600 (c) 12th October, 2009.
(c) When both parties are in need of funds Item Column Item Column II [PP Dec. 2022] (d) 11th October, 2009.
(d) None of the above I
[PP. Dec. 2017 & MQP June 2023) Endorsement (A) Bills 13. Rebate is calculated for period the pe 18. On 1st January, 2024, Vimal sold goods
Payable between date of worth 20,000 to Renn and drew a bill on
4. Match the items in Column I with the (B) Bills (a) Payment and maturity date Renn for 3 months. Renn accepted the
most appropriate items in Column II. Receivable (b) Drawing and payment of bill bill and returned it to Vimal who
State the item no. onlr (a) Bills Payable (c) Drawing and maturity date discounted the bill with bank on 4th
Item Column Item Column II (b) Bills Receivable (d) None of the above February, 2024@ 15% per annum. The
I [PP July 2023] discounting charges will be:
Noting (A) Insurance 8. _ _ can be made pay able to the (a) 3,000
Charges Claims bearer. [Link] the items in Column I with the (b) 750
(B) Bills of (a) Bills Receivable most appropriate items in Column II. (c) 500
Exchange (b) Bills Payable State the item (d) None of the three.
(a) Insurance Claims (c) both Item Item Column II
(b) Bills of Exchange (d) None of the above Column I [Link] draws a bill on shyam for 7,000.
(c) only a Protesting (A) Consignment Kuntal endorsed it to Ram. Ram
(d) All of the above. 9. A Bill of Exchange cannot be (B) Bills endorsed it to Rahim. The payee of the
[PP Dec. 2017) (a) Endorsed Receivable bill will be:
(b) Crossed (a) Consignment (a) Kuntal
(c) None of these (b) Bills Receivable (b) Ram:
(d) Accepted [PP July 2023] (c) Shyam
[PP. Dec. 2021) (d)Rahim

■ ■
AKASH AGARWAL CLASSES CONTACT US:-:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43

·"·T ,-m·-- li11-

 _c...;._·1_s,,,-"&,to~"i!..[Link]', :·11: 11.2 ~
j c:t., s:c ..:.•· · -IL!..Cl:::.im-J!!C::t:1:11=~~,,,__.r-"'·±.!,cr"""~""'--•C..:'cc>,c,_~ct.

l@J -
CA AKASH AGARWAL
111111111
1111111111

PROFrHARSH AGARWAL
l@J CAAKASH AGARWAL . [Link]
-
20. Making payment before due date of the 24. Ram's acceptance to Dinesh for Rs 8,000 28. Our acceptance to Mr. A for 8,000 31. On 1st January 2024 Nisha draws a bill
bill is called renewed for 3 months on the condition renewed for 3 months on the condition for 5,000 on Disha for 3 months for
(a) Endorsement of bill that Rs 4,000 be paid in cash that 2,000 is paid in cash immediately mutual accommodation. On the same
(b) Renewal of bill immediately and the remaining amount and the bill for remaining balance to day, Disha draws a bill for 6,000 on
(c) Retirement of bill will carry interest@ 12% p.a. The carry out interest at 18% p.a. The Nisha for 4 months. Both the bills were
(d) Rediscounting of bill amount of interest will be amount of the renewed bill of exchange discounted with the bank for 4,850
(a) 120 will be and5, 700 respectively. 500 OT the
21.X draws a bill on Y for 20,000 for 3 (b) 80 (a) 6,270 receipt was sent to the other party. First
months on 01.01.2024. The bill is (c) 90 (b) 8,270 bill was met on its due date. On the
discounted with banker at a charge of (d) 160 (c) 8,000 maturity date ofNisha's acceptance,
100. At maturity the bill return (d) None of the three Disha will send-
dishonoured. In the books of X, for 25. A drew a bill on B for 50,000 for 3 (a) 3,000
dishonour, the bank account will be months. Proceeds are to be shared 29. Mohit, the acceptor of the bill has to (b) 2,850
credited by equally. A got the bill discounted at 12% honour a bill on 31st March 2010. Due (c) 2,425
(a) 19,900 p.a. and remits required proceeds to B. to financial crisis, he is unable to pay the (d) 2,500
(b) 20,000 The amount of such remittance will be amount of bill of 20,000. Therefore, he
(c) 20,100 (a) 24,250 approaches Rohit on 20th March 2010 32. Shiva received a bill for 58,550 from
(d) 19,800 (b) 25,000 for extension of bill for further 3 Vijay and endorsed it in favour of
(c) 16,lp7 months. Rohit agrees to extend the Makkhu. On the date of maturity, the
22.A draws a bill on B for Rs 30,000. A (d) 32,333 credit period by drawing a new bill for bill was dishonoured and for it noting
wants to endorse it to C in settlement of R 21,000 together with interest of 1,000 charges of 450 paid by holder. In this
Rs 35.000 at 2% discount with the help 26. Noting charges are paid at the time in cash. In this case, old bill of 20,000 case Shiva will debit-
of B's acceptance and balance in cash. of....... of a bill. will be considered as (a) Vijay by 58,550
How much cash A will pay to B? (a) Retirement (a) Discounted (b) Vijay by 58,100
(a) 4,300 (b) Renewal (b) Dishonoured (c) Vijay by 59,000
(b) 4,000 (c) Dishonour (c) Cancelled (d) Noting charges account by 450
(c) 4,100 (d) None of the above (d) Retired
(d) 5,000 33. Shiva draws a bill on Sanat on 25th
27. A bill of 12,000 was discounted by A with 30. A draws a bill on B for 30,000 for October, 2021 for 90 days, the maturity
23. Bobby sold goods worth 25,000 to the banker for I 1,880. At maturity, the mutual accommodation. A discounted date of the bill will be _ _ _ _ __
Bonny. Bonny immediately accepted a bill returned dishonoured, noting that bill for 16,000 from bank and (a) 25thFebruary, 2022
bill on 1.11.09, payable after 2 months. charges R 20. How much amount will the remitted 14,000 to B. On due date A will (b) 30th January, 2022
Bobby discounted this bill @ 18% p.a. bank deduct from A's bank balance at send to B (c) 25th January, 2022
on 15.11.09. On the due date Bonny the time of such dishonour? (a) 14,000 (d) 28th Feb, 2022
failed to discharge the bill. Later on (a) 12,000 (b) 14,500 [MQP Dec 2023, Dec 2024]
Bonny became insolvent and 50 paise is (b)ll,880 (c) 15,000
recovered from Bonny's estate. How (c) 12,020 (d) 15,500
much amount of bad debt will be (d) 1,900
recorded in the books of Bobby?
(a) 12,500
(b) 9,437
(c) 11,687
(d) 13,650

AKASH AGARWAL CLASSES - 11111

CONTACT US:- 8007777042/43

~

■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~ CAAKASHAGARWAL [Link] j, CA AKASH AGARWAL [Link] AGARWAL
' I

34. X draws a bill on Y for fl,80,000 for *

mutual accommodation in the ratio of
2:1. X got it discounted forU,69,200 and
remitted 113rd of the proceeds to Y. 1. If any stock is taken by a co-venturer, it 6. Memorandum Joint Venture Account is
How much money should be remitted by "ill be treated as prepared when
X to Y at the time of maturity so as to (a) an income of the joint venture (a) the separate set of books is maintained
enable Y to honour the bill? (b) an expense of the joint venture for Joint Venture
(a)~ 1,20,000 (c) to be ignored from joint venture (b) the each Co-venturer keeps records of
(b) ~ 1,15,200 (d) it will be treated in the personal books all transactions
(c) n ,16,800 of the co-venturer (c) the each Co-venturer keeps records of
(d) ~ 1,20,400 [MQP June 2023, Module] their own transactions only
[MQP Dec 2024, Module, PP Dec 2024] (d) All of the above cases
2. The parties of joint venture is called. [MQP Dec 2024, Module]
[Link] Inland Bill is payable only in one (a) Co-venturers
country and not in any other foreign (b) Joint-venturers 7. A and B enter into a joint venture
country. (c) Partners sharing profit and losses in the ratio of
(a) True (d) None of above 3:2. A purchased goods costing 2,00,000.
(b) False B sold 95% goods for 2,50,000. A is
(c) Partly true Partly False 3. Memorandum joint venture account is entitled to get 1 % commission on
(d)None. prepared to find out amount due from purchase and B is entitled to get 5%
[Module! co-venture commission on sales. A drew a bill on B
(a) True for an amount equivalent to 80% of
36.A bill of exchange drawn on April 12, (b) False original cost of goods. A got it
2022 as payable 3 months after sight was discounted at 1,50,000. What is A's
accepted on April 13, 2022. The bill's 4. The relationship between Co-venturers share of profit?
date of maturity will be _ _ _ _ , is that of _ _ (a) 15,300
[Module! (a) Co-owners (b) 21,300
(b) Owners (c) 18,900
(c) Partners (d) None of the above
(d) None of above
8. Which of these terms/concepts are not
5. Peeru and Simu are entered in the relevant to a joint venture
business of buy and sale of food grain (a) Co-venturers
for a period of one year and sharing the (b) Temporary partnership
profit in the ratio of 3:2, this agreement (c) Principal and agent relationship
is a (d) Sharing profit and loss of joint ventures
(a) Partnership
(b) Consignment 9. Goods sold by other co-venturer is
AN_SWERKEY (c) Joint-venture debited to
1. a 2. a 3. C 4. b 5. b 6. b 7. b 8. a 9. b 10.c (d) Lease (a) Joint Venture Account
11.b 12.a 13.a 14.b 15.a 16. b 17.d 18. C 19.d 20.c (b) Other Co-venturer's Personal Account
21.d 22.a 23.a 24.a 25.a 26.c 27.c 28.a 29.c 30.c (c) Joint Bank Account
31.a 32.c 33.c 34.a 35.a 36.1 July 16, 2022 (d) None of the above
[PP Dec 2022]

■ ■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 · AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43

-...-.--:---.,----;,c-c;-;=~-r,;:.,:,;;c:--; ,--,,'l':::::;;:··,;:c~:;IJf:!r=:;=i~- .,--,;;;,' --,·, - ·---;,;;. 1· :1,ir. ··: .;;rmra:U.",~.v.~~•:;::;-;·-·-

l!llia-'-r'-1- - ._,,, ".'%\'?;i~~·-~-- -~
.:ll,'1'
:I.., '.l.l.'....::::..c,1_,, :l..[Link]!=-r.i..~m==us:,.c~..--'::1.,:,-..:::=c..c:ttr.b!:.""'-all2>.,_,,~'-''~' ..,_"""

mM'Mffi mrrwre nm

~ CAAKASHAGARWAL [Link] AGARWAL CA AKASH AGARWAL [Link] AGARWAL

""""" ffll!fffl -

10. The parties to joint venture is called (a) The drawer of the bill (d) 140000 (b) 2500
(a) Co-venturers (b) The drawee of the bill (c) 3000
(b) Partners (c) The discounting charges will be 19. A and B enter into a joint venture to (d) None of the above
(c) Principal & Agent recorded in memorandum account underwrite the shares of K Ltd. @ 5%
(d) Friends (d) The discounting charges will be borne underwriting commission. K Ltd. make 23. Memorandum Joint venture account is a
by bank an equity issue of 1,00,000 equity shares (a) Personal account
11. Capital Accounts of the co-venturel"S are of 10 each. 80% of the issue are (b) Real account
of the nature of 16. A and Venter into a joint venture to sell subscribed by the party. The profit (c) Nominal account
(a) Personal Account a consignment of biscuits sharing profits sharing ratio between A and B is 3:2. (d) None of the above
(b) Nominal Account and losses equally. A provided biscuits The balance shares not subscribed by
(c) Real Account from stock 10,000. He paid expenses the public, purchased by A and B in 24. Generally, when the size of the venture
(d) None of the above amounting to 1,000. V incurred further profit sharing ratio. How many shares is___ the co-venturers keep separate
expenses on carriage 1,000. He receive to be purchased by A? set of books of account for the joint
12. Which of the following is/ are the basic cash for sales 15,000. He also took over (a) 80000 shares venture.
features of a Joint Venture goods to the value of 2,000. The profit (b) 72000 shares (a) Small
(a) The profit or loss on joint venture is on joint venture will be (c) 12000 shares (b)Medium
shared between the co-venturers in the (a) 3000 (d) 8000 shares (c) Large
agreed ratio (b) 5000 (d) All of the above
(b) The co-venturers may or may not (c) 6000 20.A and B entered into a Joint Venture.
contribute initial capital (d) 3500 Purchased goods costing 2,00,000, B sold [Link] a Joint venture between A and B, A,
(c) The N is dissolved once the purpose of 415th of the same for R 2,50,000. on purchase of goods, spend 2,000 on
the business is over 17. Ramn and Shyam enter into a joint Balance goods were taken over by Bat freight, 1000 as godown rent, and also
(d) All of the above venture. Both of them deposited cost less 20%. If same set of books is raised a loan from bank of 50,000 at
K65,000 and 32,500 respectively into a maintained, find out profit on venture 18%% p.a. repayable after 1 month. B
13. Joint venture account is a joint venture. Goods were purchased for (a) 82000 spend 5.000 as selling expenses and he
(a) Personal Account 75,000 and expenses amounting Kl0,950 (b) 90000 also raised a loan Trom bank of 1,50,000
(b) Real Account were incurred. Goods sold for 90,000 (c) 50000 at 18% repayable after 2 months. The
(c) Nominal Account and goods unsold were taken over by (d)Nil total expenses of Joint venture other
(d) None of the above Ram at an agreed value of k2, 700. The than purchases will be
profit on joint venture is: 21. If unsold goods costing R 20,000 is taken (a) 8000
[Link] Joint Venture Account is (a) 17700 over by Venturer at 15,000, the Joint (b) 8250
prepared (b) 4500 Venture Ale will be credited by: (c) 5250
(a) for determining the amount due to co- (c) 4050 (a) 20000 (d) 13250
venturer (d) 6750 (b) 15000
(b) for determining the amount due from (c) 5000 26. Ram in a joint venture with Shyam
co-venturer 18. Typewriter A and B enter into a joint (d)Nil purchased goods costing 20,000 and
(c) for ascertaining the profit/ loss on venture for purchase and sale ofType- sends to Shyam for sale incurring 1,000
venture write1·, A purchased B sold it at 20% 22. In a joint venture between A and B, A on freight. Shyam took the delivery and
(d) None of the above costing margin 1,00,000. Repairing purchased goods costing 42,500. B sold paid R 500 as carriage. He sold the
expenses * 10,000, printing expenses goods costing R 40,000 at 50,000. goods costing * 18,000 for 25,000 and
15. T a venturer draws a bill on his co - 10,000. on selling price. The sales value Balance goods were taken over by A at kept the remaining goods at cost price.
Venturer and if the drawer discounts will be same gross profit percentage as in case Sharing equal profits of the venture,

--
the bill with same sets of books (a) 125000 of sale. The amount of goods taken over amount to be paid by Shyam to Ram
.maintained, the discounting charges will (b) 150000 by A will be: will be:
be borne b~ {c) 100000 r::m::m~, 3125 ~25000
Ill PRWTcrnmmrm..--

■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~ CAAKASHAGAIIWAL [Link] AGARWAL ' ~ CAAKASHAGARWAL [Link] AGARWAL

(b)22250 30. A joint venture has a definite life. ANSWERKEY

(c) 23750 (a) True I. A 2. A 3. B 4. A 5. C 6. C 7. D 8. C 9. B 10.A
(d) 24500 (b) False II.A 12.D 13.C 14.C 15.C 16.B 17.D 18.B 19.C 20.A
(c) Partly True Partly False 28.B 29.B
21.B 22.A 23.C 24.C 25.D 26.C 27.B 30.A
[Link] Venture with XYZ Account, is (d)None
opened [Module]
(a) When separate set of books is
maintained for joint venture. FILL IN THE BLANKS
31. When separate sets of books are maintained
131.
32.
I
FILL IN THE BLANKS
Joint Venture
Co-venturers
(b) When not maintaining separate set of
books for joint venture but every Co- for a joint venture, goods are taken-over by
venture keeps record his own a co-venturer is credited to
transaction only account.
(c) When not maintaining separate set of [Module!
books for joint venture but every Co-
venture keeps complete record of all the 32. Partners in a joint venture business are
transactions. called _ _ __
(d) In all the above situations, (A), (B) and [Module]
(C).

28. P and Q enter into a joint venture

sharing profit and losses in the ratio of
3:2. P purchased goods costing f
2,00,000. Q sold 95% goods for f
2,50,000. P is entitled to get 1 %
commission on purchase and Q is
entitled to get 5% commission on sales.
P drew a bill on Q for an amount
equivalent to 80% of original cost of
goods. P got it discounted at f 1,50,000.
What is P's share of profit?
(a) . ~ 15,300
(b) ~ 21,300
(c) ~ 18,900
(d) None of the above
[MQP June 2024]

29. The share of profit of a co-venturer

maintaining only her/ his own
transactions is _ _ _.
(a) Debited to Joint Venture Account
(b) Debited to other co-venturer's personal
account
(c) Debited to Profit & Loss Account
(d) None ofthe aoove
[Module)

■ ■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 \;;\

~·•-:r--.-,,-c-,,c'=>tzSif:a:.,n,e::--:-;.,----.,'l\";"-•'''''·===.,-.=n:r,,,;;•cr---: ,r,:-1- - ~-111 ..; - '• Jr~

 ·.,·.c::,.,'"'r:-g,~..!:l!.t:UJ~"\'.·,,._ .:-Jti''.'r_: !'.i':ltl·J _J·_,
•:l.J:.1'.1=~=m:ir..c:'-'C,2::c!l~:.:_n,;,=.J~-"""--'-""''""-....

. __ . :AKASHAGARW.: -PR;F_;=RSHAGARWAL- ·1~LCAAKASHA!ARWAL [Link] AGARWAL

~ * · ** *
·****
*<I' 9. . ........... clause is applicable in case of
under insurance
15. The difference between standard
turnover and actual turnover during
(a) Normal indemnity period is called
1. A fire damaged the premises of a trader 4. Average clause is applicable in case of (b) Average (a) Actual sales
resulting in loss of stock of 1,10,000. The under Insurance (c) Actual (b) Short Sales
goods salvaged from fire was 40,000. (a) True (d) Standard (c) Total Sales
The policy was for 50,000 eligible for (b) False (d) None of the above
average clause. Decided the quantum of 10. The stock which is rescued from fire is
claim to be lodged with the insurance 5. The main objective of average clause (a) Scrap 16. Stock of goods destroyed by fire is
company. contained in a fire insurance policy is to (b) Salvage 4,00,000 and stock salvaged 30,000,
(a) 31818 (a) Encourage full Insurance (c) Defective value of policy is3,00,000. The amount of
(b) 32000 (b) Discourage full Insurance (d) Short goods claim if there is an average clause will
(c) 34000 (c) Encourage under Insurance be
(d)None (d) Encourage full Insurance and 11. The main objective of average clause (a) 3,00,000
Discourage under Insurance contained in a fire insurance policy is to (b) 3,70,000
2. The godown of Kodiac Ltd. was (a) Encourage full Insurance (c) 2,77,500
6. Match the items in Column with the (b) Discourage full Insurance (d) 4,00,000
engulfed in fire on 31st May, 2015 as a
most appropriate items in Column II. (c) Encourage under Insurance
result of which a part of stock burnt to
state the item no. onlv: (d) Encourage full Insurance and 17. Prakash sells goods at 25% on sales. His
ashes. The stock was covered by Fire sales were 10,20,000 during the year.
Column I Column II Discourage under Insurance
Policy for 200000 subject to Average However, he sold damaged goods for
Clause. The records of the company (i) Indemnity (A) Insurance 12. Gross profit can be calculated as 20,000 costing 30,000. This sale is
revealed the following particulars. period (a) Net profit+ insured standing charges. included in 10,20,000. The amount of
Actual Value of Stock as on 31.05.2015: (b) Net profit - Insured standing charges. gross profit is
The Value of Salvaged Stock: 90,000 (B) Bills of Exchange (c) Net profit + standing charges (a) 1,90,000
You are required to ascertain the (d) Net Profit - Standing Charges (b) 2,50,000
amount of claim to be lodged with the (a) Insurance
(c) 2,40,000
Insurance Company (b) Bills of Exchange 13. The value of stock on the date of fire can (d) 2,00,000
(c) Both
(a) 155000 be ascertained by preparation of
(d) None a ........... Account 18. State which of the following statement is
(b) 160000
(c) 170000 (a) Trading false:
7. In case of Loss of Profit Policy, Gross
(d) 180000 (b) Profit and Loss (a) Salvage of stock means stock saved
Profit is the sum of Net Profit plus
(c) Memorandum Trading during accident
__Standing Charges
3. Match the items in Column with the (d) Memorandum Profit and Loss (b) Unusual items and defective items are
(a) Insured.
most appropriate items in Column II. separate underinsurance claim.
(b) Uninsured. 14. The Memorandum trading account is (c) Defective items means goods which
(c) both. prepared for the period from
Column Column II cannot fetch the usual rate of gross
(d) None of the above
I (a) lstJanuary to 31st December profit.
(i) Average (A) Insurance W (b) 1st April to 31st March (d) Average clause is applicable in case of
8. A business takes a ........insurance policy
Clause (c) Opening date of accounting year to the under insurance.
to cover the claims for loss of stocks and
(B) Bills of Exchange date of fire.
loss of profit.
(d) Opening date of accounting year to
(a) Insurance (a) Life insurance closing date of accounting year
(b) Bills of Exchange (b) Car insurance
(c) Both (c) Fire
(d)None (d) health insurance

- AKASH AGARWAL CLASSES - PPM:'%fi'liflMIRU- vrrrm

CONTACT US:- 8007777042/43
...-
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~ CA AKASH AGARWAL

[Link] a loss of profit, net Profit, Insured

[Link] AGARWAL

26. The amount paid by insured to insurer

~ CA AKASH AGARWAL [Link] AGARWAL

Standing Charges, Uninsured Standing as a consideration is known as premium. ANSWER KEY

Charges and Rate of Gross Profit for the (a) True
last financial year are 6,20,000;2,60,000; (b) False I.A 2.A 3. A 4. A 5. D 6. A 7. A 8. C 9. B 10. B
* 80,000; and 25% respectively. If the 11. D 12. A 13. C 14. C 15. B 16. C 17. C 18. B 19. B 20. A
firm incurred additional expenses 21. B 22. A 23. A 24. A 25. B 26. A 27. B
amounted to 85,000 which reduced the
27. Gross profit must always be calculated
loss in turnover of 3,50,000, then
as a percentage on purchase.
admissible amount for claim of
(a) True
FILL IN THE BLANKS
additional expenses will be
(a) 85,000 (b) False 28. indemnity
(b) 77,917 29. insured
(c) 21,250 Fill in the Blanks: 30. more than
(d) 87,500 28. Standard turnover corresponds with 31. Insured
the_____ period. 32. '2,71,500
20. Salvage of stock means stock saved 29. Under insurance claim 'Standing charges' 33. ' 37,500
during accident. means_ _ _ _ Standing charges only. 34. Stock salvaged
(a) True 30. If the policy value is _ _ _ _ _ _ the 35. Claim for loss of stock
(b) False value of stock lost, is called over
21. Unusual item and defective item is insurance.
separate under insurance claim 31. In case of Loss of Profit Policy, Gross
(a) True Profit is the sum of Net Profit plus
(b) False _ _ _ _ _ Standing Charges.
32. If value of stock on the date of fire is
22. Defective items mean goods which '4,29,000, salvage is' 15,70,000 then stock
cannot fetch the usual rate of gross destroyed by fire will be _ _ _ __
profit. 33. Goods costing ' 1,0,000 were insured for
(a) True '50,000. Out of these goods,3/4th are
(b) False destroyed by fire. The amount of average
clause will b e - - - - - -
[Link] clause is applicable in case of
34. Loss of stock [Link] by deducting
under insurance. - - - - from book value of stock as on
(a) True
date of fire.
(b) False
35. The difference between the value of stock
on the date of fire and stock salvaged is
24. A memorandum trading account is to be
prepared to ascertained the value of
stock on the date of fire.
(a) True
(b) False

25.A marine insurance policy is taken to

cover the claims for loss of stock.
(a) True
(b) False

·•:r:•·:·

■ ■
I
AKASH AGARWAL CLASSES CONTACT US:-:- 8007777042/il,3 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43

,..,_;,,~a,p·, '.,,-,::~--,.,--...----=:::f':"'7<--,==..~:::i;:i"""nr:,r.u:~.i:n·•:-ci--:-·-. ;---::- ·-ii ·-r- I -- ~,-,

.J~.t._s:-_c ~...:'.'.l.~~~ll&%m.!.i:!f.:..:'. '.•'. ~~i:·1 ~ _ .. ,-: !i. .:..J:..,~,·-· .J::11.: ~.::~L.: . ...:::...:c:1.;,:112l!.t:lllli!1=2.1u::s,111<1!1.,,::11.=·=,:r.:.."--'l'.!-'-'---""'--"~,.........._.=.,,_,e::,u,e:~

1.a ~
I CAAKASHAGARWAL:
W"4M

wme
[Link] AGARWAL
mm
'~ CAAKASH AGARWAL
I

I
[Link] AGARWAL

(c) both 13. Which of the following commission is

(e) None of the above allowed by the consignor to the
consignee to encourage the consignee for
1. From the following particulars, (a)325300 8. At the time of goods sent to consignee, putting-up hard work in introducing
calculate the value of unsold goods on (b)350000 the proforma invoice is prepared by new product in the market
consignment: (c) 365000 (a) Consignor (a)Del-credere Commission
(d) None of the above (b) Consignee (b) Over-riding Commission
Particulars Amount (c) Hard work Commission
(c) Both
Goods sent on consignment 330000
4. Matcll the items in Column I with the (d) None (d) Ordinary Commission
Consignor's expenses 13000
most 11ppropriate items in Column II. [MQP DEC 2024, Module[
Consignee's non-recurring 7000
expenses State the item no. only 9. The balance in consignment account
shows 14. property may be the subject
Consignee's recurring 3500 Column I Item Column II
expenses (a) Amount receivable from consignee matter of consignment
Goods sold by consignee 350000 (b) Amount payable to consignee (a) Movable
Account (A) Consignment
(1000 k2s.) (c) Profit/ loss on consignment (b) Immovable
Sales Accounting
Wastage treated as normal -- (8) Branch Accounting
(d) Closing stock with consignee (c) Either (a) or (b)
(100 k2s.) [Module] (d) None of the above
(a) 100000 (a) Consignment Accounting
(b) 110000 (b) Branch Accounting 10. Match the items in Column I with the 15. Which of these expenses is/are not
(c) 120000 [PP Dec. 2016, Dec. 2018] included in valuation of abnormal loss?
most appropriate items in Column II.
(d) None of the above State the item no. only (a) Godown Rent
[PP Dec. 2013] 5. Del-credere commission allowed to (b) Freight and Insurance incurred by
consignee Item Item Column II
Consignor
(a) for making cash sales Column I
2. Ajay of Jaipur sent goods of 2,50,000 to (c) Transit Insurance incurred by
(b) for making credit sales Proforma (A) Consignment
Vijay of Mumbai on consignment. Ajay Accounting Consignee
(c) for making extra sales Invoice
paid 8,500 as railway freight and 4,240 (d) Loading and Unloading expenses
as insurance. 2% goods are damaged in (d) for undertaking risk of bad debts (B) Hire Purchase incurred by Consignor
the Vijay's godown due to normal [PP June 2017] (a) Consignment Accounting [PP Dec. 2022]
circumstances Vijay incurred cartage (b) Hire Purchase
5,140 and selling expenses 14,700. 6. Del credere commission is allowed to 16. Which class of account is Consignment
Calculate the value of stock of unsold consignee for making credit sales 11. Normal loss of goods sent on Account?
15%, of goods sent to Vijay. (a) True consignment is shown in Consignment (a) Personal Account
(a) 41,002 (b) False Account (b) Real Account
(b) 42000 [PP Dec. 2017] (a) True (c) Representative Personal Account
(c) 45000 7. X sent out goods costing 80,000 to Y so (b) False (d) Nominal Account
(d) 46000 as to show 20% profit on invoice price. [PP July 2023, Module[
[PP Dec. 2014] 40% of the goods were lost in transit. 12. The relation between Consignee and
60% of the goods received by consignee Consignor is that of
3. 3,25,000 is total cost of 6500 units. was sold at 25% above invoice price. (a) Agent and Principal
consignor's expenses are 65,000, units Rate of commission is 10% on sales at (b) Principal and Agent
lost in transit was 700 units and invoice price plus 50% of the surplus (c) Drawer and Drawee
consignee's non-recurring expenses over invoice price. Calculate the (d) None of the above
amounted to 4,300, what will be the commission due to Y. [PP July 2023]
value of stock? (a) 8100
(b) 9100
Ill mo ~

■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 CA AKASHAGARWAL

17. K of Kanpur sent out certain goods to D

[Link] AGARWAL

(a) Del-credere Commission

~ CA AKASH AGARWAL

27. Goods costing 4,80,000 were sent on

[Link] AGARWAL\.

31.X ofKolkata sends out goods costing

of Delhi at cost plus 25%. 314th of the (b) Over-riding Commission consignment basis. Goods are invoiced 1,00,000 to consignee Y of Delhi. 315th of
goods received by D is sold at 4, 70,250 at (c) Hard work Commission at 125% of the cost price. The invoice the goods were sold by consignee for
10% above invoice price. Invoice value (d) Ordinary Commission price and the loading will be: 70,000. Commission 2% on sales plus
of goods sent out is (a) 6,00,000 and 1,00,000 20% of gross sales less all commission
(a) 4, 75,000 22. The additional commission payable to (b) 5,00,000 and 1,00,000. exceeds cost price. The amount of
(b) 5,64,300 the consignee for taking over additional (c) 6,00,000 and 1,20,000. Commission will be
(c) 6,27,000 responsibility of collecting money from (d) 5,00,000 and 1,20,000. (a) 2,833
(d) 5,70,000 customers is known as (b) 2,900
[PP July 2023) (a) Del-Credere Commission 28. X sent out certain goods to Y of Delhi. (c) 3,000
(b) Ordinary Commission 1/10 of the goods were lost in transit. (d) 2,800
18.A proforma invoice is sent by (c) Over-riding Commission Invoice value of goods lost 12,500.
(a) Consignee to Consignor (d) None of the above Invoice value of goods sent out on 32. Rahim of Kolkata sends out 1.000 boxes
(b) Consignor to Consignee consignment will be: to Ram of Delhi costing 100 each at an
(c) Debtors to Consignee 23. The owner of the consignment stock is (a) 120,000 Invoice Price of 120 each. Goods send
(d) Debtors to Consignor (a) Consignor (b) 125,000 out on consignment to be credited in
(b) Consignee (c) 140,000 general trading account will be:
19. Del credere commission is allowed to (c) Debtors (d) 500,000 (a) 1,00,000
consignee (d)None (b) 1,20,000
(a) for making cash sales 29.X ofKolkata sends out goods costing (c) 20,000
(b) for making credit sales 24. The unsold stock on consignment is 3,00,000 to Y of Mumbai at cost+ (d) None of the above
(c) for making extra sales valued at 25% Consignor's expenses 5,000.
(d) for undertaking risk of bad debts (a) Original cost of the goods 1110th of the goods were lost in [Link] consigned 100 sets of TVs to
[MQP JUNE 2023) - (b) Original cost + All expenses incurred by transit. Insurance claim received Sudeep @10,000 each. 5 TVs were
both Consigner and Consignee 3,000. The net loss on account of damaged in transit due to unavoidable
20. Which of the following statement is not (c) Original cost+ Non recurring expenses abnormal loss is reason whose price was adjusted in the
true: .incurred by Consigner (a) 27,500 remaining TVs. The new price of each
(a) If del-credere commission is allowed, (d) Original cost+ Non recurring expenses (b) 25,500 TV will be
bad debt will not be recorded in the incurred by both Consigner and (c) 30,500 (a) 10,000
books of consignor Consignee (d) 27,000 (b) 10,200
(b) If del-credere commission is allowed, 30. P of Faridabad sent out goods costing (c) 15,000
bad debt will be debited in 25. Consignment stock is recorded at 45,000 to Y of Delhi at cost+ 33-1/3 %. (d) 10,526
consignment account (a) Cost Price I/10th of goods were lost in transit. 213rd
(c) Del-credere commission is allowed by (b) Net Realisable value of the goods received are sold at 20% [Link] loss on consignment is
consignor to consignee (c) Selling Price above invoice price. The amount of sale credited to
(d) Del-credere commission is generally (d) Lower of(a) and (b) value will be: (a) Profit and Loss account
given to promote credit sales (a) 54,000 (b) Consignee's account.
26. In the books of consigner, the profit of (b) 43,200 (c) Consignment account
consignment will be transferred to (c) 60,000 (d) None of the three.
21. Which of the following commission is (a) General Trading Ale (d) 36,000
allowed by the consignor to the (b) General P/L Ale
consignee to encourage the consignee (c) Drawings Ale
for putting-up hard work in (d) None of the above
introducing new product in the
market?

■ ■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 · AKASH AGARWAL CLASSES CONTACT US:- 8007777042/4) \ .

• I :1 ""Jf."
-,'fil!.'.E~S'.'I -~:!.:.:!~l'.;-;1~.u~:' ~ : __ I!:::. ,J_c11:!..,_,_c::._:_~~.. _cc~L: .. ~.:1:191:1_u~=•=..:-'!lll1'.!-"--;::,_,_,..,,,,==b,:i,1!-:!,-,..c,.c,,_,,,,,._.._

-
l8I - CA AKASH AGA]lWAL
M1111!il1Wit1Mi mm:m

[Link] AGARWAL
I '~ CA AKASH AGARWAL [Link]:IAGARWAL

35. C Ltd, recorded the following (a) Account statement 41. 1,000 Kg. of Mangoes were consigned to 45. Consignment Debtors Account is
information as on March 31. 2010 (b) Account sales a wholesaler, the cost being 400 freight. always maintained in the books of the
(c) Statement of affairs Loss of 15% of Mangoes is unavoidable., consignor
Stock as on Aoril 01, 2009 I 80,000 I (d) Summary statement 750 kgs. were sold by the consignee. The (a) True
Purchases I 1,60,000 l remaining stock of 100 kg. will be (b) False
Sales I 2,00,000 l valued at
38. X of Kolkata sent out 2,000 boxes
It is noticed that goods worth 30,000 were 46. Proforma Invoice is a document sent by
costing 100 each with the instruction (a) 300
destroyed due to fire, Against this, the the consignor to the consignee.
that sales are to be made at cost + 45%. (b) 500
insurance company accepted a claim of
X draws a bill on Y for an :).mount (c) 400 (a) True
20,000. The company sells goods at cost
equivalent to 60% of sales value. The (d) None of the above. (b) False
plus 33-1/3 %. The value of closing taking
into account inventory, after the above amount of bill will be 42. Goods of the invoice value of 't 2,40,000
(a) 1,74,000 sent out to consignee at 20% prnfit on
transactions is,
(b) 200000 Fill in the Blanks:
(a) 10000 cost the loading amount will be
(b) 30000 (c) 290000 4 7. The party who sends the goods on
(d) 120000
(c) 100000 (a) 't 40,000 consignment basis is referred to as the
(d) 60000 (b) 't 48,000
(c) 't 50,000 48. Commission is due to the consignee from
39. A consignee sold goods costing R 50,000
(d) None the consignor for rendering of regular
36. ____ is unavoidable and should be at a profit of 10,000. Out of total sales,
[MQP JUNE 2024] activities associated with the consignment
spread over the entire consignment 30% was credit sale. As per the business is called ____ comm1ss10n
while valuing consignment stock. agreement the consignee will get 5% 43. Which of the following is true in respect 49. If cash sales are '25,000, credit sales are
(a) Abnormal loss ordinary commission, 2% del-credere of the pro-form a invoice? '75,000 and consignee's del credre
(b) Normal loss commission on credit sale and 3% over- (a) It is a document sent by the consignor to commission is 10%, the amount of del
(c) Extra-ordinary loss riding commission on amount in excess the consignee creder commission will be ____
(d) None of the above of cost price. The amount of commission (b) Only the details of the goods returned are 50. _______ expenses are included
will be recorded in this document. while computing the value of stock on
37. Sujal consigned goods costing 2,50,000 (a) 3360 (c) It acts as an evidence of the remittance of consignment.
(b) 3660 money on consignment basis.
to Mridul on 1st January 2010 by 51. The relation between Consignee and
incurring 20,000 on freight. Some goods (c) 4500 (d) None of the above Consignor is that of _______
(d) 3000 [MQP DEC 20241
were lost in transit. For remaining goods
Mridul spend 15,000 to take the delivery
including storage charges. During the 40. Expenses incurred by the consignor on 44. P sends 1,000 bags to Q costing f400
quarter, Mridul sold 3/4 of the goods sending the goods to the consignee is each at an invoice price of f500 each.
1,000 for insurance, 1,500 on freight and The costs incurred were: P's expenses
received by him for 3,00,000 and
charged commission @10% on it to R500 on packing the goods. While 't4,000, Q's expenses U,000 (non-
expenses incurred by the consignee on selling) and U,000 (selling); 800 bags
Sujal. At the end of the quarter, Sujal
asked the details of goods lost, sold, behalf of the consignment are 800 on were sold by Q. What is the value of
expenses commission and balance due to octroi, 600 as godown charges and 1,200 Consignment Stock at invoice price?
him along with the consignment stock as selling expenses. The amount to be (a) H,01,000
from Mridnl. As desired, Mridul sent excluded while calculating consignment (b) 'tl,01,800
the periodical detail statement stock will be: (c) U,01,400
commonly known as (a) 2600 (d) 'tl,02,000
(b) 600 IPPDec. 24]
(c) 1200
ffl M T M wwmr:::.®1800 WIM'I :rr-
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~ CAAKASHAGARWAL [Link] AGARWAL '~ CAAKASHAGARWAL [Link] AGARWAL••,{,'
,..

ANSWERKEY

1. A 2. A 3. A 4. A 5. D 6. B 7. A 8. C 9. C 10.A 1. In a hire purchase system of 5. Madhu purchased a machinery on hire

maintaining accounts, when there is purchase basis on 1st April, 2014. 75
11.B 12.A 13.B 14.A IS.A 16.D 17.D 18.B 19.D 20.B
default in making payments in ,000 was paid immediately and the
21.B 22.A 23.A 24.D 25.D 26.B 27.A 28.B 29.A 30.B appropriate time, the owner takes back remaining amount was to be paid in
31.A 32.A 33.D 34.C 35.D 36.B 37.B 38.A 39.B 40.D the of the_ goods. three annual instalments of 100000 each.
41.C 42.A 43.A 44.C 45.B 46.A 47. 48. 49. 50. (a) Possession Interest rate is 15% per annum,
(b) ownership Calculate the cash price.
(c) Both (a) 303323
Fill in the Blanks:
(d)None (b) 304000
47 Consignor
(c) Both
48 Ordinary 2. Shiva purchased a laptop on hire- (d) none of above
49 '10,000 purchase system. As per terms, he is
50 Non-recurring required to pay 7,500 down, 10000 at the 6. Arti Ltd. purchased a machine on hire
51 Agent and Principal end of first year, 7500 at the end of purchase system for a cash price
second year, and 12,500 at the end of 5,00,000 to be paid as 78,700 cash down
third year. and the balance by three equal annual
Interest is charged at 12% per annum, installment of each. If interest is
The interest payable with the instalment charged@ 20% per annum then amount
at the end of second year will be of interest payable in second instalment
(a) 900 will be
(b) 1,999 (a) 1,00,000
(c) 804 (b) 61112
(d) 1,760 (c) 33328
[MQP JUNE 2024) (d) 84260
[MQP DEC 2024)
3. 30,000 is the annual instalment to be
paid for three years (given present value 7. GOPI purchased a plant on hire
of an annuity of 1 p.a. @ 5% interest is purchase system from GOPAL on 01
2. 7232). Ascertain the cash price in case .04.2015. The hire purchase rate was
of Hire Purchase. settled at 72,000, payable at 22,000 on
(a) 81696 01.04.2015 and 25,000 at the end of two
(b) 92000 successive years. Interest was charged @
(c) 94000 5% P.A. (Given PVI FA (at 5%, 2 years)
(d) 98000 = 1.8594). Ascertain the cash price of the
plant.:
4. Excess of hire purchase price over cash (a) 68485
price is known as (b) 67852
(a) Instalment (c) 260000.
(b) Cash down payment (d) None of the above
(c) Interest
(d) Capital value of asset

■ ■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43

,.,_,.. ·.--r~1c:c::;:;q~----..-"-==..-Jc=·-s.,~;i=:;.;.=•:-;u;;m-.~t~·•;;;!:--;.,----;-;: ··,:-;:--;-~-,r;i;,··1

...:!rur:~. LL L":'.;1!~-:[Link].&!£4li:,: ·__ ,·111: :11 _JtU.: "j ., ll~ '· - LL!r! ..C,:r.1.:t==~=1:.!~.e::e.....,-'--"'----!l...:_:~'-'-=J~i.,,e,-;,,, ~~,a,,.._ __,

~
CA AKASH AGARWAL [Link] AGARWAL ~ . · CAAKASHAGARWAL [Link] AGARWAL
111111

8. Ms. Sonali purchased a LCD TV on hire (a) Branch 16. In Hire Purchase system cash price plus (c) 804
purchase system from Menz Enterprise (b) Hire Purchaser interest is known as (d) 1,760
on The hire purchase rate was settled at (c) Both (a) Capital value of asset
payable at 45,000 on 01.03.2016 (d) None (b) Book value of asset . 21. KCS purchased a machine from JPS on
and 25,000 at the end of three successive ( c) Hire purchase price of asset hire purchase system, whose cash price
12. KCS purchased a machine from JPS on ( d) Hire purchase charges was 8,64,000. 2,16,000 being paid on
years. Interest was charged@ 6% P.A.
hire purchase system, whose cash price delivery and balance in three annual
(Given: PVIFA at 6% 3 years=2.6730
was 8,64,000. 2, 16,000 being paid on 17. Excess of hire purchase price over cash instalments of 2,38,000 each. The
Compute the Cash Price of LCD-IV.
delivery and balance in three annual price is known as amount of interest included in first
(a) 111825
instalments Of 2,88, each. The amount (a) Installment installment would be
(b) 120000
of interest included In first instalment (b) Cash down payment (a) 72,000
(c) 150000
(d) 200000 would be. ( c) Interest (b) 57,600
(a) 72000 (d) Capital value of asset (c) 1,08,000
9. Match the items in Column with the (b) 57600 [MQP DEC 2024 & Module] (d) 36,000
most appropriate items in Column JI. (c) 108000
State the item no. only: (d) 36000 18. In case of Hire-Purchase the total sum 22. Arti Ltd. purchased a machine on hire
payable by the hire-purchaser as per purchase system fora cash price 5,00,000
Column I Column II terms in order to complete the to be paid as 78,700 cash down and the
13. A machinery was purchased on Hire
(i) Repossession (A) Hire Vendor transactions is balance by three equal annual
Purchase System. Its cash price was
of goods installments of 2,00,000 each. If interest
520000 which was payable in annual (a) Net Cash Price
(B) Hire Purchaser instalments of 1,80,000 each including (b) Net Hire-Purchase Charges is charged ® 20% per annum then
(a) Hire Vendor interest @ 15 per cent per annum. The ( c) Hire-Purchase Price amount of interest payable in second
(b) Hire Purchaser amount of interest included in 2nd ( d) Cash Price Instalment. installment will be
(c) Both instalment would be (a) 1,00,000
(d)None (a) 62700 19. When an asset is acquired on the hire (b) 61,112
(b) 145100 purchase system, the asset account is (c) 33,328
(c) 150000 debited with of the assets in the books of (d) 84,260
10. Interest charged by vendor in Hire the hire purchaser.
(d) all of the above
Purchase System, is calculated on the (a) Hire purchase price 23. Which of the following is not a step
basis of 14. In hire purchase System cash price plus (b) Cash Price under Partial Repossession
(a) Outstanding hire purchase price (c) Instalment Price (a) Calculate Book value of Goods
interest is known
(b) Outstanding cash price (d) None of the above Repossessed
(a) Hire purchase charges.
(c) Instalment amount (b) Calculate Agreed Value of Goods
(b) Capital value of asset.
( d) Cost price of the asset 20. Shiva purchased a laptop on hire- Repossessed
(c) Hire purchase price of assets.
[MQP JUNE 2023] purchase system. As per terms, he is (c) Loss on default = Book Value +
(d) Book value of asset
[MQP DEC 2024 & Module] required to pay 7,500 down, * 10,000 at Agreed Value
11. Match the items in Column with the the end of first year, 7,500 at the end of (d) None of the above
most appropriate items in Column II. second year, and 12,500 at the end of
15. In the hire purchase system interest
State the item no. onl~y_:_ _ _ _ __ charged by vendor is calculated on the third year. Interest is charged at 12%
Column I Column II basis of per annum. The interest payable with
(i) partial (A) Branch (a) Outstanding Cash Price the installment at the end of second year
Reoossession will be
(b) Hire Purchase Price
(B) Hire Purchase (a) 900
(c) Instalment amount
(d) None of the above (b) 1,999
[Module]
n:::m:wr nrmrmn mmrmrrm,~
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~ CA AKASH AGARWAL

24. The substance of the transactions gets

preference over legal position. The
[Link] AGARWAL

28. On 1.1.2024 Mr. X took delivery from

Mr. Y of 5 machines on a hire purchase
~ CA AKASH AGARWAL

32. The Hire-purchaser records the asset at

Hire-purchase price
[Link] AGARWAL\{

37. There is no difference between hire

purchase and installment purchase
transactions and events recorded in the system. 't 4,000 being paid on delivery (a) True system.
books of account and presented in the and the balance in five instalments off (b) False (a) True
financial statements, should be governed 6,000 each, payable annually on 31st (c) Partly true partly false (b) False
by the substance of such transactions December. The vendor company (d) None of the above (c) Partly true partly false
and not merely by their legal form as charges 5% interest p.a. on yearly (d) None of the above
per the concept of balances. The cash price of 5 machines 33. Repossession of the asset is done by
(a) Faithful representation. was f 30,000. Calculate the interest per Hire-vendor due to non-payment of 38. Each installment is treated as hire
(b) Substance over form. annum _ _ _ _ __ installments in due time. charges till the last installment is paid.
(c) Neutrality. (a) { 4000 (a) True (a) True
(d) Fair disclosure. (b) {. 3000 (b) False (b) False
(c) {. 2000 (c) Partly true partly false (c) Partly true partly false
[Link] payment plus instalments (d) None of Above (d) None of the above (d) None of the above
including interest is termed as [MQP DEC 2024]
FILL IN THE BLANKS
Outstanding 34. Hire purchase price = Cash price +
39. Selling price under Hire-purchase basis
(a) cash price 29. The buyer gets immediate possession Total Interest
is_ _ _ _ _ than selling price under
(b) trade price but not ownership of the asset under (a) True
cash basis.
(c) Hire-purchase price installment payment system on signing (b) False
40. In case of a Hire-purchase sale the act of
(d) Book value of contract. (c) Partly true partly false
revival of custody of the asset is called
[MQP JUNE 2024) (a) True (d) None of the above
(b) False
41. The buyer gets possession and ownership
26. In the hire purchase system interest (c) Partly true partly false 35. In hire purchase system, ownership of
of the asset under_ _ _ _ _ _system
charged by vendor is_calculated on the (d) None of the above the goods passes from the seller to the
right from signing the contract.
basis of _ _ _ __ buyer only when the full and final
42. Under Hire- purchase system ownership of
(a) Outstanding cash Price 30. The possession and ownership of the payment is made.
the asset is transferred as soon as
(b) Hire purchase Price asset is immediately transferred to the (a) True
_ _ _ _ _ _ _ last installment is paid.
(c) Installment amount buyer under Hire- purchase system on (b) False
[Link] installment paid under Hire-
(d) None of the above signing the contract. (c) Partly true partly false
purchase system consists of partly
[MQP DEC 2023) (a) True (d) None of the above
_______ and partly interest
(b) False
charge.
27. KCS purchased a machine from JPS on (c) Partly true partly false 36. The difference between the hire
44. A machinery was purchased on Hire
hire purchase system, whose cash price (d) None of the above purchase price and cash price of the
Purchase System. Its cash price was '
was f 8,64,000. f 2,16,000 being paid on asset is known is known as Total
5,20,000 which was payable in annual
delivery and balance in three annual 31. Down payment plus installment_s Interest.
installments of' 1,80,000 each including
installments of f2,88,000 each. The including interest is termed as cash (a) True
interest @ 15 per cent per annum. The
amount of interest included in first price. (b) False
amount of interest included in 2nd
installment would be _ _ _ _ _ _ _ (a) True (c) Partly true partly false
installment would be - - - - - - -
(a) {72,000 (b) False (d) None of the above
45. The persons who obtained delivery of
(b) { 57,600 (c) Partly true partly false
possession of goods from the owner under
(c) { 1,08,000 (d) None of the above the hin~ purchase agreement is known as
(d) { 36,000
[MQP DEC 2023/June 2024] 46. The different between the net hire purchase
price and net cash price of the goods is
termed as
1·

■ ■
I

AKASH AGARWAL CLASSES CONTACT US:-:- 8007777042/~3 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 ·

..-.-,._----;,:-c::..-=•~=q=•=~-,,11,,,g:ate•••·;=•=~"'l-""'"="·;·,·,.1 ff'•-1
~:w:,___rl-:.!..:: :.'.'.::::i;::~t::.,_,r,._
: : c~tt..:~i"..':.: . ..J :i ;IL_!.'.:..i...,.:...;.:.1.:~,i· ,1.1!<1::1=11a~,.r.?J"n""..:t..:-".c:~:i..:=l1•=-btit=~-•··"'"~,-,._,,.,

-
~
lift:'IP:lfflffiCEWznm !PM

CAAKASHAGARWAL PROF1HARSHAGARWAL '~ CA AKASH AGARWAL [Link] AGARWAL

1W .....,,......., r · 1mm
47. When an asset is acquired on hire purchase
system, the asset account is debited with
. :-tc**;
***•·* =--- . .
_ _ _ _ _ _ _ of the asset in the book
of the hire purchaser. 1. In Branch Accounting system, the 6. Match the items in Column with the
48. The initial amount paid in hire purchase Branch prepares the periodic returns most appropriate items in Column II.
system is called _ _ _ _ _ __ based on which the accounting records State the item_ no. only:
are maintained at the office Column I Column II
(a) Head (i) Debtors (A) Departmental
ANSWER KEY (b) Branch Method Of Accounts
1. A 2. B 3. A 4. C 5. A 6. B 7. A 8. A 9. A 10.B (c) Both Accounting
11.B 12.C 13.A 14.C 15.A 16.C 17.C 18.C 19.B 20.B (d) none of above (B) Branch Accounts
21.C 22.B 23.C 24.B 25.C 26.A 27.C 28.A 29.B 30.B
2. Branch Stock Account is always (a) Departmental Accounts
31.B 32.B 33.A 34.A 35.A 36.A 37.B 38.A
prepared at cost price (b) Branch Accounts
(a) True (c) Both
FILL IN THE BLAN__KS
(b) False (d)None
39. more
3. When the goods are returned by branch, 7. Branch account is prepared in the books
40. repossession
goods sent to branch account will be of Head office under debtors' method of
41. installment
42. last debited in the books of head office accounting
43. capital payment (a) True (a) True
44. ~ 62,700 (b) False (b) False
45. Hirer
46. Hire purchase charges 4. Match the items in Column with the 8. From the information of Amba Ltd.
47. Cash price most appropriate items in Column II. received from its branch - AB,
48. Down payment State the item no. only: calculate the invoice price of goods sent
to branch and Profit included thereon.
Column I Column II
Goods received from H.O. (Amba
(i) Remittance (A) Branch
Ltd.)=100000
in Transit Adjustments
Goods in transit from H.O.=50000
(B) Departmental
Goods are invoiced to branch at cost
Accounts
plus 25%.
(a) Branch Adjustments
(a) 150000
(b) Departmental Accounts
(b) 200000
(c) Both
(c) 100000
(d) none of above
(d) 500000

5. Goods in transit is recorded in the books

9. Average exchange rate is applicable for
of in case of foreign branch ..
(a) H.O (a) fixed assets
(b) Both H.O. & Branch (b) revenue items
(c) Both
(c) Both
(d) none of above (d)None

AKASH AGARWAL CLASSES - llli

- mmrmm:r ......-
CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~ CA AKASHAGARWAL

10. AAC Ltd. with its Head Office in Delhi

invoices goods to its Branch at Mumbai
[Link] AGARWAL

13. In the Stock and Debtors Method of

accounting, balance of Branch Stock
~ CA AKASH AGARWAL

[Link] are sent to the Branch at cost

plus 25%. The loading on invoice price
[Link] AGARWt\ll

24. Cost of goods returned by branch will

have the following effect
at 20% less than the catalogue price Account shows either Cross Profit or is (a) Goods Sent to Branch account will be
which is cost plus 50% with instructions Gross Loss (a) 20% debited
that each sales are to be made at invoice (a) True (b)25% (b) Branch Stock Account will be credited
price and credit sales at catalogue (b) False (c) 30% (c) Both a and b
p_rice.:
. (d) None of the above (d) Either a orb
Opening Stock at 12,000 14. Under Debtor system of maintaining
Branch at its cost Branch Account Depreciation does not 20. For Sales Return at Branch, in case of 25. Under Branch accounting Debtors
appear in Branch Account, dependent branches, entry to be passed System, closing balance of liabilities are
Goods sent to 140000
(a) True in HO books, recorded in
Branch (at cost to H.O.)
(b) False (a) Debit Branch Debtors A/c, Credit (a) Credit Side
Goods received by Branch 138000 Branch Stock Ale. (b) Debit Side
till close of the year 15.A branch which does not keep the full (b) Debit Branch Stock Ale, Credit Branch (c) Any of the above
Cash Sales 46,000 system of accounting is known as: Debtors Ale (d) None of the above
100000 (a) Dependent Branch (c) Debit Sales Ale, Credit Branch
Credit Sales
(b) Independent Branch Debtors Ale. 26. Which of the following is not a method
Stock lost by fire (at cost) 2,500 (c) Branch (d) Debit Sales Ale, Credit Branch Stock of Branch Accounting
Calculate the amount of Closing Stock (d)None Ac. (a) Debtors Method or Synthetic Method
at Branch-Mumbai. [PP July 2023] (b) Stock Debtors method or Analytical
(a) 51000 21. Which one is/ are the method/s of Method
(b) 61000 16. Independent Branch meant when Accounting for Branches (c) Final Accounts Method (Cost Basis)
(c) 75000 separate account arc maintained by: (a) Final Accounts Method; (d) Creditors Method or Synthetic Method
(d) 80000 _ (a) Head Office. (b) Debtors Method and [MQP JUNE 2024)
(b) Branch (c) Stock and Debtors Method
11. Match the items in Column with the (c) Both (d) All of the above 27. The Foreign Currency receivables as
most appropriate items in Column II. (d) None of these per books of accounts 10,000$ USD=
State the item no. onl_r: 22. Which account is used for transactions f80, t8,00,000 accounted on 09-Feb-
Column I Column II [Link] no keeping full system of concerned with head office supplying [Link] 31-Mar-2023, The USD= INR
(i) Stock & (A) Departmental accounting is called _ _ resources to the branch? 82 then what is the amount of Foreign
debtors Accounts (a) Dependent Branch (a) Capital account Currency Receivables to be reported on
method (b) Independent Branch (b) Current account 31-Mar-2023 balance sheet as Assets
(B) Branch Accounts (c) Simple Branches (c) Branch account
(d) None of the above (d) Joint venture account (a) 2000
(a) Departmental Accounts
(b)(2000)
(b) Branch Accounts
18. The account for the dependent branches 23. The system in which profit and loss (c) 82000
(c) Both
is maintained only in the books of made by the branch is determined by (d) 80000
(d)None
(a) Branch preparing branch trading and profit [MQP JUNE 2024]
(b) Head office and loss account at cost price
12. Expenses incurred by branch out of
(c) Both (a) Stock and debtors Method
petty cash balance are debited to branch
(d) None of the above (b) Final Account Method
account by the head office.
(c) Debtors Method
(a) True
(d) All of the above
(b) False

l■
I

■
AKASH AGARWAL CLASSES CONTACT US:- 80077'77042)~3 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/4:3

~ - ,,,,,,.,..,=~-r==,r.:;•-,.::i:--.;;.-;-sc~=-=i::r-i:~. ·,,;,~;-:·:;-:,,-;--;:;;,i;;- r·-

__:__iriit,::~~' ..:;_~·~·.".:.;'l!.lt!~i,¾',;;'_,. __ .• _ ·Jl'!I'. ~: - ::_:_ -'-' :_:_:1·::c:lt;,.~~• •• ,.] .,Jl12'"'----"---!=.:..!.~'-'' ':[Link]::t!:!=t!:1:!!ll:l:::l!lll::~:::.:,=•>l!:=~==-t~•lll:r:!.'-"'--'~''-'·"'~

~[ :;&\KW~- ::RO::=ooW~ -
28. For apparent profit or loss (i.e.
difference between sales price and
invoice price), journal entry is passed
33. Under Debtors System of maintaining
branch accounts, depreciation does not
appear in Branch Account.
'~ CA AKASH AGARWAL

FILL IN THE BLANKS

-
[Link] branch accounts, in debtor's system,
[Link] AGARWAL

involving Branch Stock A/c and Branch (a) True opening balances of assets are _ _ _ _ to
Stock Adjustment A/c. (b) False branch account.
(a) True (c) Partly true partly false 39.A branch which keeps complete records of
(b) False (d) None of the above _ _ _ _ all accounting transactions are
(c) Partly true part! y false [PP July 20231 called - - - -
(d) None of the above 40. A branch which does not keep the full
29. Under Stock Debtors System of Branch 34. Stock debtor's system of maintaining system of accounting is known as
Accounting, Branch Stock A/c is branch account is used for independent
maintained at cost price branch. 41. Stock and debtor system is popularly
(a) True (a) True known as _ _ __
(b) False (b) False 42. Branch account is prepared to ascertain
(c) Partly true partly false ( c) Partly true partly false _ _ _ _ of the branch.
(d) None of the above (d) None of the above 43. The system in which profit and loss made
by the branch is determined by preparing
30. The objective of keeping Branch Stock 35. For independent branch, incorporation branch trading and profit & loss account at
Ale at invoice price under Stock Debtors of branch trial balance is required. cost price is _ _ __
System is to ensure control over stock. (a) Tnie 44. The account prepared for the ascertaining
(a) True (b) False the amount of gross profit earned by the
(b) False ( c) Partly true partly false branch under stock and debtor system is
(c) Partly true partly false (d) Noµe of the above
(d) None of the above 45. The account prepared to adjust the loading
36. Branch Account prepared under included in the value of opening and
31. Branch Stock Adjustment A/c is used to Debto1·s Method of Branch Accounting closing stock at branch is termed as
record the loading on stock and on is a nominal account.
goods sent and to record the apparent (a) True 46. The account prepared in the same way as
profit or Joss. (b) False that when goods are invoice at cost, except
(a) True (c) Partly true partly false that all entries are made at invoice price is
(b) False (d) None of the above termed as _ _ _ _ .
(c) Partly true partly false [PP July 2023] 47. The goods sent by the head office may be
(d) None of the above either at _ _ _ _ or cost plus profit
37. State which of the following statements is
32. Under .Final Accounts method, profit or correct.
loss of any branch is ascertained by (a) Stock Debtors System of maintaining
preparing Branch Profit and Loss Branch Account is used for
Account in place of Branch Account. independent branch.
(a) True (b) The buyer gets immediate possession
(b) False but not ownership of the asset under
( c) Partly true partly false Installment Payment.
( d) None of the above (c) Unusual items and defective items are
separate under insurance claims.
(d) Operation lease is a Revocable contract.
[PP Dec 2024]
ffltt m w ,,,ew:r FE■mmrmmr ...--
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 CA AKASH AGARWAL [Link] AGARWAL
~ CA AKASH AGARWAL [Link] AGARWAL

...
ANS_WERKEY
1. The goods are transferred from 5. Canteen expenses are apportioned
1. A 2. B 3. A 4. A 5. A 6. B 7. A 8. A 9. B 10.A Department X to Department Y at among departments in the proportion of
11.B 12.B 13.A 14.A 15.A 16.B 17.A 18.B 19.A 20.B selling price which includes a profit of (a) Departmental floor space
21.D 22.C 23.B 24.C 25.B 26.D 27.C 28.A 29.B 30.A 25% on cost. Stock valued at 65,000 in (b) Departmental direct wages
31.A 32.A 33.A 34.B 35.A 36.A 37.D Department Y, and then amount of (c) Departmental sales
unrealized profit will be (d) Departmental No. of employees
FILL IN THE BLANKS (a) 16,250
38. Debited (b) 13,000 6. Match the items in Column I with the
39. Independent branch (c) 21,667 most appropriate items in Column II.
40. Dependent branch (d) None of the above .
State the item no. onl:y:
41. Analytical Method Column I Column II
42. Profit and Joss 2. At the time of preparation of (i) Basis of (A) Departmental
43. Final account methods departmental profit and loss account Apportionment Accounts
44. Branch adjustment discount received is allocated among of
account various departments on the basis of (B) Branch
45. Stock reserve and surplus departmental sales Accounts
account (a) True (a) Departmental Accounts
46. Branch stock account (b) False (b) Branch Accounts
47. Cost price
(c) Both
3. Advertisement expenses are apportioned (d)None
among departments in the proportion of
(a) Sales of each department 7. Bad debts are apportioned among
(b) Purchases of each department departments in the proportion of
(c) NO. Ofunits sold by each department (a) Sales of each department
(d) Cost of sales of each department (b) Number ofunits sold by each
[MQP JUNE 2023( department
(c) Cost of sales of each department
4. Match the items in Column with the (d) None of the above
most appropriate items in Column 11.
State the item no. onlr:
. 8. Canteen expenses are apportioned
Column I Column II among departments in the proportion of
(i) Provision (A) Interdepartmental (a) Departmental floor space
for transfer at in voice (b) Departmental direct wages
unrealized price (c) Departmental sales
profit (d) Departmental No. of employees
(B) Branch
Accounting
(a) Interdepartmental transfer at mvo1ce
price
(b) Branch Accounting
(c) Both
(d) none of above

■ ■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:-8007777042/43

~•·r-:,a-••="""l~-...,...-nF.-,;;,cr::..;::-1=~-:.=~;:;1.o:::rr-·,:;:·,, -·"··-:c·:qr--r- ...

1mJ·!:..lt:i: ·.z~"!.~:tl~;-::__>.-_,. cl'.' :.1Jt:1::_. :.::,
. ·, •~t1::::,::rn :.·. .J_!,l.1-•. .u.,c•::."'~'-"'O!!Ja' ~=~-""===~ .,,.,.,.,._,._,.~a1.,c:.-.-.

}@.[ ~AK\~HAGARW~ ::=:11IGARWAL7

~ ~AKASHAGARWAL [Link] AGARWAL

9. Goods are transferred from Department (a) 3,000. 17. In Departmental P&L Ale, insurance on
X to Department Y at a price so as to (b) 4,500. stock should be apportioned based on
include a profit of 33.33% on cost. If (c) 1,500. Average Value of Stock ratio.
the value of closing stock of Department (d) 6,000 (a) True
Y is 18,000, then the amount of stock (b) False
reserve on closing stock will be 13. Which of the following expenses may (c) Partly true
(a) 6,000 not be proportioned amongst the (d) Partly false
(b) 4,500 departments using any suitable basis: [Module)
(c) 9,000 (a) Carriage Inward 18. In the final Balance Sheet closing stock
(d) None of the above (b) Profit on Sale oflnvestments of a department receiving goods from
(c) Labour welfare expenses another department at cost plus 10%
10. The goods arc includes transferred from (d) Sales Promotion profit, should be shown at the cost to the
Department X to Department Y at receiving department
selling price which a profit of 25% on 14. Depreciation on assets is apportioned (a) True
cost. Stock valued at 65,000 in among various departments on basis of (b) False
Department Y, then amount of (a) Value of assets of each department. (c) Partly true
unrealized profit will be (b) Number of Assets of each Department (d) Partly false
(a) 16,250 (c) Purchases of each department. [Module[
(b) 13,000 (d) Sales of each department.
(c) 21,667
(d) None of the above 15. Goods cost 2,34,000 are sent to the
Branch at a invoice price of 3,12,000.
11. Provision for Doubtful Debt on 1st The loading on Invoice price is
April, 2018 was 21,500. During the year (a) 20%
2018 - 19 the Bad-debt and Recovery (b)25%
of Bad-debt were 10,500 and 2,100 (c) 33.33%
respectively. The Debtors. If on 31st (d) 28%
March, 2019, there was additional Bad-
debt of R2,500 then Provision for 16. Goods are transferred from Department
doubtful-debt will be A to Department B at a price so as to
(a) debited to Profit & Loss Account include a profit of 33.33% on cost. If the
byll,250 value of closing stock of Department Y
(b) debited to Profit & Loss Account is U6,000, then the amount of stock
by2,625. reserve on closing stock will be
(c) debited to Profit & Loss Account by
R3,000. (a) {12,000
(d) debited to Profit & Loss Account by (b) {9,000
900. (c) {18,000 ANSWER_KEY
(d) None of the above
12. If Department A be the amount of [MQP Dec 2023, PP June 2024) 1. B 2. B 3. A 4. A 5. D 6. A 7. A 8. D 9. B 10.B
transfers goods to Department B at a 11.B 12.A 13.B 14.A 15.B 16.D 17.A 18.B
price of 50% above cost, what will stock
reserve on unsold stock worth 9,000 of

-
Department B?

Ill v:rwnnm:; m:rwmm:r::::mr::r........-:-

■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 -----
~ CA AKASH AGARWAL [Link] AGARWAL
--

***---·
.,.. _,_
:---,c:,...,... ...
'
CA AKASH AGARWAL

8. In absence of partnership deed the

Profit or Loss should be distributed
[Link] AGARWAL

12. P and R are currently partners in a firm

sharing Profit/Loss in the ratio of 4:3. A
among partners in their Capital Ratio new partner D is admitted and after his
1. Gain Ratio is generally concerned with (a) 44:31:15 (a) True admission new Profit/ Loss sharing ratio
the situation of admission of a Partner (b) 44:33:40 (b) False between P, Rand D becomes What will
(a) True (c) 44:31:17 [Module] be the sacrifice ratio of P and R after
(b) False (d) All of the above. admission of D?
9. X, Y and Z are partners in the ratio of (a) 5:9
2. X and Y share profits in the ratio of3:2. 5. A, B and C are partners sharing profit 3:2: [Link] admitted with 116th share in (b) 6:9
Z joins them with 114th share. Find out or loss in the ratio Of 3:2:1. They admit future profits. Z would retains his (c) 7:9
the sacrificing ratio. D as partner for 115th share in future original shares. Find out the new profit (d) 8:9
(a) 3:2 profits. D acquired 2115th share from A sharing ratios of the partners.
(b) 1:2 and 1115th share from B. Calculate the (a) 12:8:5:5 13. If a fixed amount is withdrawn on the
(c) both new profit sharing ratio and sacrifice (b) 11:8:8:5 first day of every month of calendar
(d) none ratio (c) Both year by a partner in partnership firm,
(a) 11:8:5:6 ,2:1 (d) None of the above then for what period the interest on the
3. P, Q and Rare three partners sharing (b) 11:10:7:8 ,3:1 total amount Of drawings will be
profit and loss equally. Their respective (c) Both 10.S and N are partners sharing calculated?
capitals as on 1-4-2012 were P - 80,000, (d) (d)none Profit/(Loss) in the ratio of 5:3. They (a) 4.5 months
Q - 60,000 and R - 50,000. admit J into Partnership for 3/toth in (b) 5.5 months
They mutually agreed on the following 6. Gunnu and Chinn are partnes. They are the Profit/Loss in which J acquired (c) 6.5 months
points as per the partnership deed. entitled for 9% interest on their capital I/5th share from S and 1110th share (d) 7.5 months
Interest on capital to be allowed contributions. The firm allowed 54,000 from N respectively. Calculate ,the new [MQP JUNE 2023]
(ii) P to receive a salary to 500 per towards interest on capital to partner. Profit/Loss sharing ratios of the
month Calculate the capital contribution of partners. [Link] account is a real account?
(iii) 0 to receive a commission @ 4% on each partner if interest on Gunnu's (a) 17:11:12 (a) True
net profit after charging such capital is 13,500 more than the interest (b) 18:12:13 (b) False
commission on Chino's capital.. (c) 19:12:13'
(iv) After charging all other items, 10% (a) 375000 , 225000 (d)20: 12:13 15. In absence of partnership deed,
of the net profit to be transferred to (b)400000,200000 partners are entitled to interest on
General Reserve The firm made profit (c) both 11. Anu and Binn are partners sharing capital @ 6% p.a.
of 66,720 during the financial_year 2012- (d) none Profit/Loss in the ratio of 3:2. They (a) True
13. What will be the Net Divisible Profit admit Chitra into partnership for 1/6 (b) False
available to each partner? 7. A and B are partners in a firm sharing share in the Profit which she acquired [Module)
(a) 14775 profits in the ratio of 4:3. They agreed to equally from the old partner. Calculate
(b) 49000 admit C in the firm for 116th share in the New Profit Sharing Ratios of the [Link] the ratio in which the partners
(c) 50000 profit. The new profit sharing ratio Of partner share all the accumulated profits,
(d) none of the above A, B and C Will be (a) 31:19:10 reserves, losses and fictitious assets in
(a)4:3:1 (b) (b)31:20:10 case of change in profit sharing ratio.
4. Babbu and Dabbu are partners, sharing (b) 3:2:1 (c) (c)31:5:10 (a) Sacrificing ratio
profit or loss in the ratio 3:2, They (c)8:2:3 (d) (d)None (b) Old profit sharing ratio
admit Kachari for 116th share of profits (d)20:15 :7 (c) New profit sharing ratio
in the firms of which she takes 213rd (d) Equally
from Babbu and 113rd from Dabbu.
Find the new profit sharing ratio

■
AKASH AGARWAL CLASSES CONTACT US:-:- 8007777042/~3 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43

:i=,_,,-.,,,.,,,,,..,,.,,.~;1=-::=:-:.~.-,,;·,=1c-,1~·$m;,;.;~ro,.,;;~=•· ,;:;--:1--,, ···•:,·w·:- !

 :1_.I .. ,-~1:_:;tt~:S.!:l!.il:C..:....!.!.~l.-'.~llL!Jjl!:_::!..'.'.!c!~~;11~21-1n::91■ tt....,_....~.'°'""'1'.!l,l=~"""'"-"'"-"'~'-'--

l.{i ~AKA~:GARw~~:R~.HARSff AGARWAL: -

,._/
I
17.A and Bare partners sharing profits in
the ratio of 3;2. They admit C, a new
partner who acquires 115th of his share
(a) Nil
(b) 10000
(c) (c)20000
'~ CA AKASH AGARWAL

(d) None of the above

-
(c) No interest will be paid to the partners
[Link] AGARWAL

31. Generally gain ratio is concerned with

the situation of
(a) Admission of a new partner
from A and 4125th share from B. (d) all of the above 26. It is necessary to revalue of assets and (b) Retirement of a partner
Calculate the new profit sharing ratio liabilities at the time of a![Link] of a (c) Dissolution of firm
and sacrificing ratio 22. Generally sacrifice ratio is concerned new partner. (d) Piecemeal distribution
(a) 14:6:5 , 1:4 with the situation of (a) True
(b) 15:6:5 , 2:4 (a) Admission of a new partner (b) False 32. The amount payable to Z on his
(c) Both (b) Retirement of a partner [Module) retirement amounted to 1,96,00. He took
(d) none (c) Dissolution of firm over stock worth 24,000 and 25% of the
(d) Conversion of firm into company 27. Which of the following is not an investments after which an amount of
[Link] partner pays premium for [MQP JUNE 2023 & Module] essential feature of a partnership firm? 90,000 was due and transferred to his
goodwill, which will be shared by old (a) Mutual agency Loan Ale. Calculate the total value of
partners in their new profit sharing 23. When the capitalization of profits (b) Existence of business investments.
ratio. method is used then the value of (c) Association of two or more people (a) 328000
(a) True goodwill on the basis of future (d) Compulsory registration (b)340000
(b) False maintainable profits is more than that of [PP Dec 2021 & Module] (c) 350000
[Module] on the basis of super profits (d) 360000
(a) True 28. Sacrificing ratio is
19. Profit or Loss on revaluation is shared (b) False (a) New Profit sharing ratio • old profit 33. Match the items in Column I with the
among the partners in __ Ratio [Module) sharing ratio most appropriate items in Column II
(a) Old ratio (b) Equal to old profit sharing ratio State the item no. only
(b) New Ratio 24. Interest to be allowed @ 0. 75 per cent (c) Equal Item Column I Item Column II
(c) Both per month on Partners Capital of 60 (d) Old profit sharing ratio - new profit
(d)None Lakh; Manager's Commission@ 5 sharing ratio Absolute Surplus (A) Piecemeal
percent of Net Profit before charging (Highest Relative) Distribution
20. Memorandum revaluation account is such commission. If the Net Profit 29.X and Y were Partners sharing profit Capital Method
prepared when the_ _ of assets and before charging interest on capital and /losses as 3:2. They admit Z as a new (B) Retirement
liabilities are not altered manager's commission amounted to t partner, giving him I/5th share of future
(a) Book value 14.85 Lakh, then manager's commission profits. What should be the new profit (a) Piecemeal Distribution
(b) Cost will be sharing ratio? (b) Retirement
(c) both (a) 47250 (a) 12:8:5 (c) both
(d) none (b) 48250. (b) 12:4:5 (d) none
(c) 49520 (c) Both
21. The Balance Sheet of a Partnership (d) None. (d)None 34. Match the items in C1>lumn I with the
Firm had an Investment Fluctuation [PP Dec 2021] most appropriate items in Column II
Reserve of 10,000. A new partner is 25.X and Y are partners with the capital of State the item no. only _ _ _ _ __
admitted, Value of In- vestment is 50,000 and 30,000 respectively. Interest 30. What type of account is a revaluation Item Column I Item Column II
60,000 against its book value of 70,000. Payable on Capital is 10% p.a. If the account
What amount of the Investment profits earned by the firm is 4,800, what (a) Nominal Account Realisation Retirement of(A)
Account a partner
Fluctuation Reserve will be distributed will be the Interest on Capital for X and (b) Personal Account
(B) Dissolution of
among partners Y? (c) Real Account
firm
(a) 5,000 and 3,000 (d) all of the above

-
(a) Retirement of a partner
(b) 3,000 and 1,800
(b) Dissolution of firm

IMll!illP"'ermmn----

■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 [Link] AGARWAL CLASSES CONTACT US:- 8007777042/43
~ (c) 3:1
(d) 1:2
CA AKASH AGARWAL [Link] AGARWAL

71. A, B and Care partners in the ratio of

3:2:1. Dis admitted in the firm for 116th
'~ CA AKASH AGARWAL

(a) Equally 20000 Each

(b) Rohan 30000 & Sohan 10,000
[Link] AGARWAI)j'{:::
·, ·'ci;f_;\,,

(b) All the partners including the new

partner in new profit/loss sharing ratio
share in profits. C would retain his (c) Rohan 40000 (c) Old partners in sacrificing ratio
67. State the ratio in which the partners original share. The new profit-sharing (d) Rohan received 50,000 & Sohan paid (d) New partner in gaining ratio
share all the accumulated profits, ratio between A, B, C and D wiII be 10,000
reserves, losses and fictitious assets in (a) 12:8:5:5 [Link] is decided to form a partnership with
case of change in profit sharing ratio. (b) 8:12:5:5 76.A and Bare partners sharing profits a total capital of 6,00,000. Three
(a) Old profit-sharing ratio (c) 5:5:12:8 and losses in the ratio of 3:2 (A's Capital partners Ajay, Vijay and Sanjay who
(b) New profit-sharing ratio (d) 5:5:8: 12 is 30,000 and B's Capital is 15,000). will share profits and losses in the ratio
(c) Equally They admitted Cand agreed to give of 5:3:2, agreed to contribute
(d) None of the above 72. In partnership when a new Partner 115th share of profits to him. How much proportionate capital. Their capital
brings his share of Goodwill in cash, C should bring in towards his capital? contribution will be:
68. When a new partner is admitted, unless then the amount of such Goodwill will (a) 9000 (a) 3,00,000: 1,80,000:1,20,000
otherwise agreed, the profit sharing be credited to Partners' capitals as per (b) 12000 (b) 2,00,000: 2,00,000: 2,00,000
ratio between the existing partners wiII the following ratio: (c) 14500 (c) 3,00,000: 2,00,000: 1,00,000
(a) Reduce (a) Old Profit-sharing ratio (d) 11,250 (d) 1,00,000: 2,00,000: 3,00,000
(b) Increase (b) Sacrificing ratio
(c) Remain same (c) Gain ratio 77. A and B, who share profits and losses in 81. If goodwill account is raised by the
(d) None of the above (d) None of the above the ratio of 3:2 has the following partners at the time of admission of a
balances: Capital of A 50,000; Capital new partner. it will be written off in
69. A and B are partners sharing profits in 73. Which of the following accounting ofB 30,000; Reserve Fund 15,000. They (a) Old Profit-sharing ratio
the ratio 5:3, they admitted C giving adjustments are required at the time of admit C as a partner, who contributes to (b) New profit-sharing ratio
him 3/l0th share of profit. IfC acquires admission of a partner? the firm 25,000 for 116th share in the (c) Sacrificing ratio
115th share from A and 1110th from B, (a) Computation of New Profit-Sharing partnership. If C is to purchase 116th (d) Capital ratio
new profit-sharing ratio will be Ratio share in the partnership from the
(a) 5:6:3 (b) Revaluation of Assets and Liabilities existing partners A and B in the ratio of 82. Outgoing partner is compensated for
(b) 2:4:6 (c) Distribution of Reserves, Accumulated 3 :2 for 25,000, find closing capital of C parting with firm's future profits in
(c) 18:24:38 Profits and Losses (a) 25000 favour of remaining partners The
(d) 17:11:12 (d) All of the above (b) 19000 remaining partners contribute to such
(c) 20000 compensation amount in
70. A & B are partners sharing profits and 74. Profit or loss on revaluation is shared (d) 18000 (a) Gaining Ratio
losses in the ratio 5:3. On admission, C among the partners in ratio. (b) Capital Ratio
brings 70,000 cash and 48,000 against (a) Old Profit Sharing 78. General reserve at the time of admission (c) Sacrificing ratio
goodwill. New profit-sharing ratio (b) New Profit Sharing of a new partner is transferred to (d) Profit Sharing Ratio
between A, B and Care 7:5:4. The (c) Capital (a) Profit and Loss adjustment Account
sacrificing ratio among A:B will be (d) Equal (b) Old partners' capital accounts 83. The retiring partner becomes entitled to
(a) 3: 1 (c) Revaluation account get back which of the following?
(b) 4:7 75. Rohan & Solian are partners in a firm (d) Memorandum revaluation account (a) Balance of his capital and current
(c) 5:4 sharing profits & losses in the ratio 3:1. account at the time of retirement.
(d) 2:1 A partner Mohan is admitted and he 79. At the time of admission of a new (b) Share of goodwill, undistributed profit
brought 40,000 as goodwill, New profit- partner, if the value of goodwill is shown or loss, reserves and profit or loss on
sharing ratio of all the partners is equal. in the books, it is written back by revaluation of assets and liabilities
The amount of goodwill to be shared by (a) Old partners in old profit/loss sharing
old partners is: ratio

•
I

■
!
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/~3 AKASH AGARWAL CLASSES CONTACT US:- 800777704:i/4:3
~ . ....:.::.ti~ ·..:.:-~~:.1o;~~m·e,d :· ·.11: c.t..1r.1::t.=~J:!!~1..:?.,,,.""'.t.:,1....:=:~.,:uL"""'""[Link]>=·;,.it•,c, _ __

:m:wrwmn

.. ~
Mfflf 111

·CA AKASH AGARWAL [Link] AGARWAL CA AKASH AGARWAL [Link] AGARWAL

rrwr:re::mrn w r
(c) Salary, commission, interest on (c) 20000 [Link] what basis deceased partner's share 96.A, Band C shares profit and loss in the
capital. if any and all other dues till the (d) 4000 of profit till his death is computed? ratio of 4:4:2. They have a joint life
date of retirement (a) Time basis insurance policy of 100000 , whose
(d) All of the above 88. Om, Jai and Jagdish are partners (b)Tumover premium is paid by the firm. Surrender
sharing profits and losses in the ratio of (c) (a) or (b) above value of the policy at the beginning of
84.A, Band Care partners sharing profits 5:3:2. Om retires and goodwill is valued (d)None the year 2022 is 80,000. On the death of
in the ratio 2:2:1. On retirement of B, at 50,000. New profit-sharing ratio of A on 2nd January 2022, the amount to
goodwill was valued as 30,000. Jai and Jagdish will be equal. For the 93. At the time of death of a partner, firm be credited in C's account will be
Contribution of A and C to compensate adjustment of goodwill, Jai and gets ____ from the insurance (a) 40,000
B will be Jagdish's capital accounts will be company against the Joint Life Policy (b) 20000
(a) 20000 and 10000 respectively debited by: taken jointly for all the partners. (c) 16000
(b) 8,000 and 4,000 respectively (a) 15,000 and 10,000 respectively (a) Policy Amount (d)Nil
(c) They will not contribute any thing (b) 10,000 and 15,000 respectively (b) Surrender Value
(d) Information is insufficient for any (c) 20,000 and 5,000 respectively (c) Policy amount or surrender value 97.A, Band Care partners in the firm
comment (d) 5,000 and 20,000 respectively whichever is higher sharing profits and losses in 5:3:2 ratio.
(d) Policy amount or surrender value The firm's Balance Sheet as on
85. As per Section 37 of the Indian [Link], Rohit and Sumit are partners whichever is lower 31.3.2022 shows the Reserve balance of
Partnership Act, I 932, the executors sharing profits and losses in the ratio of 25,000, Profit of the last year * 50,000,
would be entitled at their choice to the 5:4:3. Sumit retires and if Amit and [Link], Jai and Hari are the partners Joint Life policy of R 10,00,000, fixed
interest calculated from the date of Ro hit shares profits of Sumit in 4:3, sharing profits in the ratio 7:5:4. Hari assets of 12,00,000. On 1st June c died
death till the date of payment on the then new profit-sharing ratio will be: died on 30th June, 2023 and profits for and on the same date assets were
final amount due to the dead partner at (a) 4:3 the accounting year 2022-2023 were revalued. The executor of the deceased
_ _ _ _ percent per annum. (b) 47:37 24,000. How much share in profits for partner will get along with the capital of
(a) 7 (c) 5:4 the period 1st April, 2023 to 30th June, C
(b) 4 (d) 5:3 2023 will be credited to Bari's Account. (a) Share in the Reserves account of the
(c) 6 (a) 6000 firm
(d) 12 90. A, B and C are three Partners sharing (b) 1500 (b) Proportionate share of profit upto the
profits and losses in the ratio of 3:2:1. B (c) 2000 date of death
86.A. Band Care Partners sharing profits retires from the firm. What is the (d)Nil (c) Share in Joint life policy
in the ratio of2:3:1. A retires and his gaining ratio of the remaining partner? (d) All of the above
share is taken by B and C equally, what (a) 3: I 95. A, B and C are partners sharing profits
will be the gaining .-atio'! (b) 1:2 and losses in the ratio 9:4:3. The firm 98. After death of partner the goodwill
(a) 2:3 (c) 2:1 took separate life policy of 25,000 for A, account is written off to the capital
(b) 1:1 (d) 1:3 K 20,000 for B andR51,000 for C. What accounts of the remaining partners in
(c) 2: 1 is the share of C in the policy amount? the
(d) 1:2 91. If a partner dies which of the following (a) 18,000 (a) Old profit-sharing ratio
amount becomes payable? (b) 25000 (b) New profit-sharing ratio
87. A, Band Care partners, their profit- (a) His share of undistributed profit/loss; (c) 51000 (c) Gaining ratio
sharing ratio being 5:4:3. C retires and (b) His share of goodwill (d) 20000 (d) None of these
is credited with 9,000 for goodwill. How (c) His share of Joint Life Policy, if any;
much will be debited to A's Capital (d) All of the above
account in respect of goodwill
(a) 5000

-
(b) 16000

RWIJWl1ifflW 'TnrnrrrPW'!fflPPMfffl:mwrrmr~

■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~
':.,
CA AKASH AGARWAL [Link] AGARWAL '~ CA AKASH AGARWAL [Link] AGARWAL\

99. Realisation account is opened at the (c) New profit sharing ratio 109. G and C are partners. They are
time of (d) Equally entitled for 9% interest on their capital 114. Adjustments are recorded in
(a) Admission ofa new partner [MQP JUNE 2023) contributions. The firm allowed ' 54,000 Partner's Current Account in Fixed
(b) Retirement .of a partner towards interest on capital to partners. Capital Method.
(c) Dissolution of the Firm 105. The Sacrifice ratio is used at the time What will be the capital contribution of (a) True
(d) In all the above situations of? each partner if interest on Gunnu's (b) False
(a) Admission of a partner capital is '13,500 more than the interest (c) Partly true partly false
100. Which of the following account is (b) Retirement of a partner on Chinu's capital? (d) None of the above
mainly prepared at the time of (c) Death of a partner (a) <2,25,000 [Module]
dissolution of the firm (d) Dissolution of a partner (b) <2,55,000
(a) Revaluation Ale [MQP DEC 2024] (c) <2,50,000 FILL IN THE BLANKS
(b) Goodwill Ale (d) <2,15,000 115. Profit or Loss on revaluation is shared
(c) Realization Ale 106. A and B are partners sharing profit an [Module] among the partners in _ _ _ _ Ratio.
(d) Memorandum Revaluation Ale d losses in the ratio of 3: 2. C is coming 116. Realisation account is opened at the
[MQP JUNE 2023) as a new partner for 115th share of 110. After the death of a partner, the time of _____ offirm.
future profit. Calculate sacrificing ratio. combined shares of continuing partners 117. Memorandum revaluation account is
101. ___ Ale c is used for the (a) 3:2 decrease. prepared when the _ _ _ _ of assets and
reassessment of the assets and liabilities. (b) 8:5 (a) True liabilities are not altered
(a) General Reserve (c) 2:3 (b) False 118. Interest to be allowed @ 0. 75 per cent
(d) 5:3 (c) Partly true partly false per month on Partners Capital of' 60 Lakh;
(b) Profit & Loss
[MQP DEC 2024) (d) None of the above Manager's
(c) Revaluation
[Module) 119. Commission@ 5 per cent of Net Profit
(d) Both (b) & (c)
107. Sacrificing ratio is: 111. Changes in profit sharing ratio before charging such commission. If the Net
102. Realization account is a (a) New Profit sharing ratio - old profit among the existing partners may occur Profit before charging
(a) Representative personal account sharing ratio. at any time during the financial year. 120. interest on capital and manager's
(b) Artificial personal account (b) Equal to old profit sharing ratio (a) True commission amounted to' 14.85 Lakh, then
(c) Real account (c) Equal (b) False manager's commission will be
(d) Nominal account (d) Old profit sharing ratio - new profit (c) Partly true partly false
sharing ratio. (d) None of the above 121. The amount due to deceased partner is
103. The solvent partners must share the [MQP DEC 2024 & PP Dec 2021 & [Module] paid to his/ her _ _ _ _ __
deficiency of an insolvent partner: Module] 122. Surplus capital method is suitable when
(a) In the profit-sharing ratio 112. Loss on Realisation should be all partners are _ _ _ _ __
(b) In the capital ratio 108. Band Dare partners, sharing profit distributed according to capital ratio. 123. Profit or loss on revaluation of assets
(c) In the gaining ratio or loss in the ratio 3 : 2. They admit K (a) True and liabilities is shared by the
(d) None of the above for I/6th share of profits in the firms of (b) False
which she takes 213rd from B and 113rd (c) Partly true partly false 124. At the time of admission of a partner,
104. State the ratio in which the old from D. What will be the new profit 1 (d) None of the above General Reserve is distributed among the
partners share all the accumulated sharing ratio? [Module) partners in _ _ _ _ _ _ sharing ratio.
profits, reserves, losses and fictitious (a) 44: 31: 15 113. The surrender value of Joint Life 125. If there is any change in profit sharing
assets in case of change in profit sharing (b) 31: 44: 15 Policy is distributed among all partners ratio of the partners, the old partnership
ratio. (c) 32: 41: 14 in their old ratio upon retirement. will be _ _ _ _ __
(a) Sacrificing ratio (d) 15: 31: 44 (a) True 126. An incoming partner contributes
(b) False
(b) Old profit sharing ratio [MQP DEC 2024 & Module)
(c) Partly true partly false
- - - - -to share in the total assets and
_ _ _ _for future profits.
(d) None of the above (Module]

■ ■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43

,,..__,.-,,-..--.-.~,c-;;,:,.~;,r:p;;,..=::•ro===-=i=r.:s:w=..--;;1:n:r,rr ·c;;,,,--,-------;-;1---.-- e1r

.&illc_"-'Cc li~~~-~;,_ j!J _'_·"~~IL'.L ~ :rn_! -·Lub_ ,.:.•:.·_:,:_·L:.c,~.::.,[Link].!lcJ!:ta!:l!l=.1<.a~=:,_,2.r...::t:,"--""-"-'"'~-'!!cd::i:u....._.-....,.,,..c,~,..,,

}@.[ CA=HAGARw~:=::.HA=A~wAL -
~ CA AKASII AGARWAL [Link]
...

ANSWER KEY 1. Realization account is a: 6. Finished goods are normally valued at

(a) Representative personal account cost or _ _ whichever is lower.
1. B 2. A 3. A 4. A 5. A 6. A 7. D 8. B 9. A 10.A (b) Artificial personal account (a) Net Realizable Value
11.A 12.A 13.C 14.B 15. B 16.B 17.A 18.B 19.A 20.A (c) Real account (b) Cost
21.A 22.A 23.B 24.A 25.B 26.A 27.D 28.D 29.A 30.A (d) Nominal account (c) Both
31.B 32.A 33.A 34.B 35.C 36.B 37.A 38.A 39.A 40.A (d)None
41.A 42.C 43.B 44.B 45.B 46.A 47.C 48.D 49.C 50.C 2. Inventory valuation affects only the
51.A 52.B 53.A 54.C 55.C 56.A 57.D 58.C 59.C 60.D income statement 7. The Sales 180 Lakh, Purchase 129 Lakh
61.D 62.A 63.C 64.A 65.A 66.D 67.A 68.C 69.D 70.A (a) True and Opening Stock 33 Lakh. If the rate
71.A 72.B 73.D 74.A 75.D 76.D 77.C 78.B 79.A 80.A (b) False of Gross Profit is 50% on cost, then the
81.B 82.A 83.D 84.B 85.C 86.B 87.A 88.B 89.B 90.A value of closing stock will be
91.D 92.C 93.A 94.B 95.A 96.B 97.D 98.B 99.C 100.C 3. The stock was physically verified on (a) 42 Lakhs.
101. C 102.D 103.B 104.B 105.A 106.A 107.D 108.A 109. A 110.B 24th March and was valued at 2,00,000. (b) 44 Lakhs.
Ill.A 112. B 113.A 114.A Goods are normally sold by the trader (c) 43 Lakhs.
at a profit of 25% on cost. After stock (d) None of the above
FILL IN THE BLANKS taking the following transactions have [Module]
taken place till 31st March. Sales of
115. Old profit sharing 2,21,600 which includes: 8. Net Profit is reflected in higher cash
116. Dissolution of the firm (A) Sales of 10,800 at 20% more than the balances and net loss is reflected in
117. Book value normal selling price lower net worth.
118. ~ 47,250 (B) sales of 10,800 at 10% less than the (a) True
119. Executors normal selling price (b) False
120. Solvent Required: Determine the value of stock
121. Old Partners to be taken to the Balance Sheet of PCT 9. Choose the correct statement.
122. Old Profit. Ltd. as at 31st March (a) Financial statements need not take into
123. Terminated (a) 23200. consideration any statutory requirement
124. Capital, goodwill (b) 24200. (b) Only credit transactions are recorded in
(c) 25200. books of accounts
(d) None of the above (c) Financial statements prepared by two
different accountants will always show.
4. In case of trading concern, cost of goods identical results
sold and cost of sales are same (d) Financial accounts, of an enterprise, are
(a) True treated as evidence in the Court of Law.
(b) False
10. T Form presentation of financial
5. In Proprietorship business, Income-tax statements is known as
payable is shown as a liability in Balance (a) Horizontal form
Sheet. (b) Vertical form.
(a) True (c) both
(b) False (d) none

AKASH AGARWAL CLASSES

DPilwmrrwm:mmm
CONTACT US:- 8007777042/43
- [Link] AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~ CAAKASHAGI\IIWAL [Link] AGARWAL ~ CAAKASHAGARWAL [Link] AGARWAL.

11. Net sales for the year ended 31st March, 15. Cost of goods available for sale 2,00,000, [Link] the end of the year 2023-24, Prepaid 24. Which of the following is not part of
2022 is 9,00,000. 1f the Gross profit is 25 Total Sales 1,60,000: opening stock of Insurance Premium 7,500 appeared in financial statements?
% on cost Goods sold will be goods 40,000; Gross Profit Margin 25%; the Trial Balance, it will be shown (a) Trading and Profit & loss Account
(a) 720000 Closing stock of goods was: (a) only in Profit & Loss Account. (b) Balance Sheet
(b) 740000 (a) 120000 (b) only in Balance Sheet. (c) Trial balance
(c) 760000 (b) 140000 (c) both in Profit & Loss Account and in (d) Cash Flow Statement
(d) None of the above (c) 160000 Balance Sheet.
(d) None of the above (d) not in Both in Profit & Loss Account 25. While finalizing the current year's
12. Income tax paid by a sole trader is [PP June 2023] and in Balance Sheet. profit, the company realized that there
shown: was an error in the valuation of closing
(a) On the debit side of the Trading 16. Telephone charges paid 1,500 during 20. Pre-paid insurance premium should be stock of the previous year. In the
Account 2022-23. A quarter's charge for classified as a: previous year, closing stock was valued
(b) On the debit side of Profit & Loss telephone is outstanding, the amount (a) Current asset. more by 50,000. As a result
Account accrued being 300. The charge for each (b) Fictitious asset. (a) Previous year's profit is overstated and
(c) As deduction from Capital in the quarter is same for both 2021-22 and ( c) Non-current asset. current year's profit is also overstated
Balance Sheet 2022-23, Calculate o/s Telephone (d) None of the above. (b) Previous year's profit is understated and
(d) As addition to Capital in the Balance charges to be shown in the Opening current year's profit is overstated
Sheet balance sheet as at 1-4-2022 [Link] is shown in the Balance Sheet ( c) Previous year's profit is understated and
(a) 600 as current year's profit is also understated
13. _ _ _ _ represents payment made (b) 300 (a) As an addition to the Capital Account ( d) Previous year's profit is overstated and
against which services are expected to (c) 1200 (b) A deduction from the Capital Account current year's profit is understated
be received in a very short period. (d) None ofthe above (c) Part of Current Liabilities
(a) Prepaid Expenses [PP July 2023] (d) Part of Current Assets 26. What would be the cost of Purchase
(b) Outstanding Expenses from the following details
( c) Expenses [Link] of balance sheet in a 22. Which of the following relationships Opening Stock 4,000
(d) all of the above proper way is known as is/are false? Sales 45,000
[PP July 2023] (a) Marshalling of Balance Sheet (a) Net Profit= Gross Profit - Direct Expenses 5,000
(b) Formatting of Balance Sheet Administration and Other expenses Indirect Expenses 6,000
[Link] and Taxes paid 300 during 2022- (c) Finalization of Balance Sheet (b) Net Profit= Gross Profit + Closing Stock 2,000
23. At March 31, 2023, the rates and ( d) Grouping of Balance Sheet Administration expenses and Other Gross Profit 5,000
taxes were prepaid to the following 31st expenses (a) 28,000
January, the yearly charge being 300. 18. When Sales = 1,80,000, Purchase = (c) Opening Stock+ Purchases - Closing (b) 33,000
Calculate the Prepaid Rates and Taxes 1,60,000, Opening Stock= 34,000 and Stock = Cost of Sales (c) 32,000
to be shown in _the Closing Balance rate of the Gross Profit is 20% on cost, (d) Both (b) and (c) above (d) 27,000
Sheet the Closing Stock would be
(a) 250 (a) 50,000 23. Which of the following is not part of
(b) 750 (b) 44,000 financial statements?
(c) 25 (c) 46,000 (a) Trading and Profit & Loss Account
(d) None of the above (d) None of the above (b) Balance Sheet
[PP July 2023] (c) Fund Flow Statement
(d) Notes to Accounts
[MQP JUNE 2023]

AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43

·r

■
· AKASH AGARWAL CLASSES CONTACT US:-8007777042/4:3'}~( II
•-,-,..,~,1<::~•=~7='""-"'""~;;;:";c~===~•:w-n:.·1~1:i·•-;-:--',;::-;---;-:c';Jo-l r;~n ~: · :'mi-
JIMII. ~:f!:J: ',,,~.\;.~~~n,-:,J:, _:Jl]!i_.:_ -- !1!·:·11t, _I;; · -l'...'.s!~;.,:..,__::,::::_.:_J"-'.;c-'3:l!'_U_~,ru:[Link]!!mll!!!!lt;:~~u~:le1h!".=~=l~1r.m.,.,,_,,_,.,._,,._,,,.

]#IC:~KAS!AGARWAL: =JIARSH==WAL ]#J -

CAAKASHAGARWAL [Link] AGARWAL
-
27. Following information is given (c) 7,000 (overstated) 35 ........... are investments which are held 39. When adjusted purchase is shown on
Amount (d) 7,000 ( understated) beyond the current period as to sale or the debit column of the trial balance
Opening Stock 2,13,000 disposal. then
Purchase 16,55,000 31. Net realizable value is - (a) Non-current Investments (a) Both opening stock and closing stock
Sales 21,32,000 (a) Estimated selling price (b) Current Investments do not appear in the trial balance
Carriage Inwards 32,500 (b) Estimated Cost Price plus Marketing (c) Current Liabilities (b) Closing stock is shown in the trial
cost (d) None of the above balance and not the opening Stock
Carriage Outwards 38,600
(c) Estimated Selling price less cost (c) Opening stock is shown in the trial
Return Inwards 38,000
incurred in order to make sale. 36. Repairs and Maintenance of Delivery balance and not the closing stock
If the rate of gross profit is 25% on cost
(d) Estimated Selling price plus cost Vans is (d) Both opening and closing stock appear
then value of closing stock will be
incurred in order to make sale. (a) Selling and Distribution Expenses in the trial balance
(a) 2,57,800
(b) 1,94,900 (b) Indirect Expenses
32 .......... is equal to estimated selling price (c) Administration Expenses 40. Income tax paid by the sole-proprietor
(c) 2,25,300
less the estimated costs of completion (d) Both (a) & (b) from business bank account is debited to
(d) 3,30,000
and the estimated costs necessary to (a) Income tax account
[Module]
make the sale. [Link] paid on 1st October, 2022 for the (b) Bank account
(a) Net Realizable value year to 30th September, 2023 was 1,200 (c) Capital account
[Link] 45,000
(b) Cost of Conversion and rent paid on 1st October, 2023 for (d) Not to be shown in the business books
Opening Stock 18,000
Purchases 30,000 (c) Cost of Purchase the year to 30th September, 2024 was
(d) None of the above 1,600. Rent payable, as shown in the 41. When opening stock is overst~ted, net
Cost of Goods Sold 27,000
profit and loss account for the year income for the accounting period will be
Trading Expenses
33. The General Manager is entitled to a ended 31st December 2023, would be: (a) Overstated
12,000
commission of 10% on net profit after (a) 1,200 (b) Not be affected
Net Profit is-
charging the commission of Works (b) 1600 (c) Understated
(a) 6,000
(b) 18,000 Manager. The Works Manager is (c) 1,300 (d) None of the above
(c) 12,000 entitled to a commission of 5% on the (d) 1,500
net profits after charging the 42. The total cost of goods available for sale
(d) None of the above
commission of General Manager. The 38. Mohan purchased goods for 15,00,000 with a company during the current year
profit before charging any commission and sold 415th of the goods amounting is 12,00,000 and the total sales during
29. When Sales = R 3,60,000, Purchase =
is 7,500. The commission of the Work 18,00,000 and paid expenses amounting the period are 13,00,000. If the gross
3,20,000, Opening Stock= 68,000 and
Manager to the nearest rupee will be: 2,70,000 during the year, 2023. He paid profit margin of the company is 33-
rate of the Gross Profit is 20% on cost,
(a) 321 5,000 for an electricity bill of Dec. 2022 1/3 % on cost, the closing inventory
the Closing Stock would be
(b) 333 and advance salaries amounting 15,000 during the current year is
(a) 1,00,000
(b) 44,000 (c) 337 was paid for the month of Jan. 2024. He (a) 4,00,000
(c) 46,000 (d) 326 counted net profit as 3,50,000. The net (b) 3,00,000
(d) None of the above profit calculated by him is correct (c) 2,25,000
34. If average inventory is 1,25,000 and according to (d) 2,60,000
30. The beginnings inventory of the current closing inventory is KI0,000 less than (a) Entity concept
year is overstated by 5,000 and closing opening inventory then the value of (b) Periodicity concept
inventory is overstated by R 12,000. closing inventory will be (c) Matching concept
These errors will cause the net income (a) 1,35,000 (d) Conservatism concept
for the current year by (b) 1,15,000
(a) 17,000 (overstated) (c) 1,30,000
(b) 12,000 (understated) (d) 1,20,000
[Module]
!~!:PIPlirMrmmmr~
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~ CAAKASH AGARWAL

43. On 31st March 2009, Suraj has to pay to

[Link] AGARWAL

(a) 2,00,000.
~ CA AKASH AGARWAL

49. Mr. Mohan started a cloth business by

[Link] AGARWAL .

53. At the end of the accounting year,

M/s Chandra 7,000 on account of credit (b) 2,50,000 investing 50,000, bought merchandise advances from customers are
purchase from the later. He paid 1,800 (c) 1,02,400. worth 50,000, He sold merchandise for (a) Debited to Profit and Loss account
on 30th June 2009 after availing a cash (d) 1,28,000. R 60,000. Customers paid him 50,000 (b) Credited to Profit and Loss account
discount of 10%. On 30th September cash and assured him to pay 10,000 (c) Shown in the Balance Sheet as assets
2009, he paid 2,850 after availing 5% [Link] has been paid for 11 months shortly. The amount of revenue earned (d) Shown in Balance Sheet as liabilities
cash discount. On account of final from April 2023 to February, 2024 by him is ...... [PP Dec 2023]
settlement, the amount to be paid by amounting 22,000. The amount of (a) 50,000.
Suraj without any discount will be outstanding salary shown in the balance (b) 60,000. 54. Opening Stock, Closing Stock, Sales
(a) 2,350 sheet will be (c) 1,00,000. Return and Sales are 2,80,000:3.20,000;
(b) 2,000 (a) 1833 (d) 70,000. 45,000 and 24,20,000 respectively. ifrate
(c) 2,200 (b) 2,000 of gross profit is 25% on cost, theli gross
(d)2,150 (c) 1,000 50. Ganesh takes a salary 10,000 per month. profit will be
(d) None of the above He withdrew goods worth 2,500 for (a) 6,05,000
[Link]. A, the owner ofM/s Apex Ltd. personal use and got salary 9,500 in cash. (b) 4,75,000
withdrew some goods from the business 47. Capital introduced by Mr. A on The excess payment of 2,000 will be (c) 4,84,000
for his personal use. The accountant of 01.04.2023 3,00,000; further capital debited to (d) 593,750
the firm recorded this transaction on the introduced during the year was 50,000 in (a) Sales account. [PP Dec 2023]
basis of selling price of goods. He the mid of the year. Mr. A withdrew (b) Goods account.
justifies his contention on the basis that 2,000 per month and the profit earned (c) Salary account. [Link] [Link] is given:
business and the proprietor are two during the year was 20,000. Capital as on (d) Salary in advance account. Particulars Amount
different entities as per business entity 31.03.2024 will be Opening Stock 2,13,000
concept and therefore drawings should (a) 3,94,000 51. Calculate sales from the following Purchases 16,55,000
be charged at the same price on which (b) 3,46,000 details: Sales 21,32,000
the goods are sold to the outside (c) 2,94,000 Opening Stock 4,000 Carriage Inwards 32,500
customers. However, Mr. A emphasizes (d) None of the three Cost of Goods sold 30,000 Carriage Outwards 38,600
that he should be charged with only the Closing Stock 2,000 Return Inwards 38,000
cost price of the goods withdrawn by 48. Atul purchased goods costing 50,000 at Direct Expenses 5,000 If the rate of gross profit is 25% on cost
him. At which price, the drawings an invoice price, which is 50% above Gross Profit 1,500 then value of closing stock will be
should be recorded? cost. On invoice price he enjoyed 15% (a) 31,500 (a) 2,57,800
(a) Fair value. trade discount and 3,750 cash discount (b) 28,000 (b) 1,94,900
(b) Selling price. on cash payment of goods in lump sum at (c) 32,000 (C) 3,30,000
(c) Cost price. the time of purchase. The purchase price (d) 33,000 (d) 2,25,300
(d) None of the three. to be recorded in the books before cash [PP June 2024]
discount will be
(a) 75,000 52. Which of the following will not appear
45. Bank overdraft as per trial balance is (b) 60,000. in the Profit and Loss Ale?
1.60.000, Bank has allowed the customer (c) 63,750. (a) Capital
to Cost price. overdrew 80% of the (d) 50,000. (b) Bad Debts
hypothecated value of the stock. (c) Provision for Doubtful Debts
Hypothecation of stock has been done by (d) Rent paid
the bank at 80% of the original closing [MQP JUNE 2024, Module]
stock value. The amount of closing stock
is:

AKASH AGARWAL CLASSES

.---~.....-,;•;,,r.;e,~,,,,.,.~=liF"""''">l=n==n;i:,,:,,c:c.,r:, :-:. :,.-:.:. ;1;-;- r

CONTACT US:- 8007777042/43
■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43

•
:ffi!t~•:{~ ·: ~~".'tf:li"~~:!o:::'.'LX' -., :it::· - c~- ,,,.J.....:::....._" .... J..,, -.l_±c-.....:.. - ....'....'--''-™!l.t!l:D.121111"..,1...,.... ..._.,...~':l.........i.._,=-..:...ui.·le.~!r,i,o=i-'.~

]#[ CA=~GARWAL -l~l~~ii:= [Link] AGARWAL

-
56. Provision for Doubtful Debt on 1st 59. As on 31st March, 2024 debtors and 63. Income & Expenditure Account is 67. Profit before interest on Joan and
April, 2021 was nI,500. During the additional bad debts are f 8,00,000 and drafted by a trading concern. manager's commission were 4,25,250.
year 2021 - 22 the Bad-debt and f 10,000 respectively. If the provision (a) True Interest on loan is 42,000. If the
Recovery of Bad-debt were n0,500 and for bad debts is made at 5% on debtors, (b) False manager is entitled a commission of 5%
U,100 respectively. The Sundry Debtors then amount of such provision will (c) Partly True Partly False on net profit after charging such
on 31st March, 2022 were n,25,000. be_ _ _ _ _ _ _ . (d)None commission, then manager's commission
Provision is to be made @ 5% on (a) {40,000 [Module] will be_ __
Debtors. If on 31st March, 2022, there (b) { 50,000 (a) 20,250
was additional Bad-debt of n,500 then (c) { 39,500 64. Balance Sheet is prepared to show the (b) 21,262.50
Provision for doubtful-debt will (d) {40,500 operating results of an organisation on a (c) 9,162.50
be- - - - - - - - - [MQP Dec 2024] specific date. (d) 18,250
(a) Debited to Profit & Loss Account by (a) True [PP Dec 2023]
{11,250. 60. Provision for Doubtful Debt on 1st (b) False
(b) Debited to Profit & Loss Account by April, 2022 was U3,000. During the (c) Partly True Partly False FILL IN THE BLANKS
n,625. year 2022-23 the Bad-debt wasf 9,500. (d) None
(c) Debited to Profit & Loss Account by The Sund1·y Debtors on 31st March, [Module) 68. Outstanding subscription is shown in
{3,000. 2023 were {3,25,000. Provision is to be the_ _ _ _ _ side of Balance Sheet.
(d) Debited to Profit & Loss Account by made@ 5% on Debtors. If on 31st 65. Final Accounts is prepared from the [Module]
March, 2023, there was additional Bad balances ofledger accounts 69. Profit & Loss Account is drafted to
{900.
debt of n,500 then Provision for determine the _ _ _ _ of a concern.
[MQP Dec 2023 & June 2024) (a) True
doubtful- debt will be:
(a) debited to Profit & Loss Account by { (b)False
57. If average inventory is f 1,25,000 and 16,125. (c) Partly True Partly False 70. Distribution of profits is a/ an _ _ __
closing inventory is { 10,000 less than (b) debited to Profit & Loss Account by (d)None item
opening inventory then the value of {15,125. [Module] [Module]
closing inventory will be: (c) debited to Profit & Loss Account by { 71. _ _ _ _ is an account which is prepared
(a) { 1,35,000 3,000. 66. Which of the following is true about by a merchandising concern which
(b) { 1,15,000 (d) debited to Profit & Loss Account by { financial statements? purchases goods and sells the same during a
(c) { 1,30,000 900. (a) Financial Statements give a summary particular period.
(d) { 1,20,000 [MQP Dec 2024) of Accounts.
[MQP June 2024] (b) Financial Statements can be stated as 72. Advance subscription is reflected in the -
61. Outstanding salaries is shown as - recorded facts. - - - - side of the Balance Sheet.
58. From the following details estimate the (a) An Asset in the Balance Sheet Select the correct answer.
(b) A Liability in the Balance sheet (a) Statement (a) is correct
capital as on 31.03.2024, Capital as on
(c) By adjusting it in the P & L Ale
01.04.2023? 4,10,000. Drawings f 40,000, (b) Statement (b) is correct
(d) Both (b) and (c)
Profit during the year f 50,000 (c) Both (a) and (b) are correct
[MQP Dec 2024, Module]
(a) { 4,10,000 (d) None of the above.
(b) { 4,50,000 62. The preparation of Trading Account [PP Dec 2024]
(c) { 4,20,000 always starts with the Opening Stock of
(d) { 4,00,000 inventory
[MQP Dec 2024] (a) True
(b) False
(c) Partly True Partly False

-
(d)None

-
[Module]

rurffl'Wr: , 1 ■ mrn1wrnrr2nrrr~ Ill

AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 l@J CAAKASHAGARWAL [Link] AGARWAL
l@J CA AKASH AGARWAL [Link] AGARWALi'i
);ii
ANSWERKEY
1. D 2. B 3. A 4. B 5. B 6. A 7. A 8. B 9. D IO.A
11.A 12.C 13.A 14.A 15.B 16.A 17.A 18.B 19.B 20.A
1. Which of the following item(s) is (are) 5. Items of receipts and payments which
21.B 22.D 23.C 24.C 25.D 26.B 27.C 28.A 29.D 30.C
shown in the Income and Expenditure are revenue in nature and which relate
31.C 32.A 33.D 34.D 35.A 36.D 37.C 38.C 39.D 40.C Account? to a particular accounting period, are
41.C 42.C 43.B 44.C 45.B 46.B 47.B 48.C 49.B 50.D (a) Only items of Capital nature shown in the
51.B 52.A 53.D 54.B 55.D 56.B 57.D 58.C 59.C 60.B (b) Only items of Revenue nature, which (a) Receipts and Payments Account
61.D 62.B 63.B 64.B 65.A 66.C 67.D are received during the period of (b) Income and Expenditure Account
Accounts (c) Both
FILL IN THE BLANKS (c) Only items of Revenue nature (d) none of above
68. Asset pertaining to the period of Accounts
69. Net Profit/ Loss (d) Both the items of Capital and Revenue 6. Match the items in Column with the
70. aooropriation nature most appropriate items in Column II.
71. Trading A/c State the item no. onlr:
72. Liabilities
.
2. Salary debited to Income and Column Column II
Expenditure Account for the year was I
48,000. Outstanding salary paid in the (i) Entrance (A) Income
beginning of the year and the Fees &Expenditure
outstanding salary at the end of the year Account
were 6,000 and 7,500 respectively. The (B) Receipt&
amount of Salary to be shown in Payments
Receipts and Payments Account will be Account
(a) 48000 (a) Income &Expenditure Account
(b) 40500 (b) Receipt & Payments Account
(c) 54000 (c) Both
(d) 46500 (d)None

3. Which of the following item does not 7. Following information are obtained
match with receipts and payments from the books of a club:
account? (a)Subscription received during the year
(a) It is a summarized cash book ending 31st March 2014 256000 out of
(b) Transactions are recorded in it on cash which 8,000 was for the year 2014-15
basis and 11,000 for the year 2012-13.
(c) It records revenue transactions only (b) Subscription was outstanding on 01-
(d) It serves the purpose of a real account 04-2013 18,000 and on 31-03-2014 for
2013-14
4. Transactions are recorded on accrual 21 ,000. Calculate the amount of
basis in the Income and Expenditure subscription to be credited to Income
Account and Expenditure Account for the year
(a) True ending 31-03-2014.
(b) False (a) 258000.
(b) 259000.
(c) 260000.
(d) None of the above
:\~~'.~~:-.,

■ ■
AKASH AGARWAL CLASSES CONTA~;-US:-:- 8007777042l~ AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43::ii}f

..--.,,,,;c,,c-.,.....,.,"'lf'"''F'-"''·'~r..r:::~=~~•"-=[Link]>J":-.;;-;---c.1,---;;-c -,-,---;i1:;1•·
:1!111:Ii. $:..:c:, ... :..:.:.::-~,!;'~~:,,,-'..}: . ::~ ['"' . .c::jliiu· --~-~-: j ..2;::I: . :...:... "_-,.,~-~a:-!·,:t~:c~~J:.•c:[Link].,;b:,"u~::,==:k!:ib-.<!.<:11•=•u~• -~

7~
~~
I Q\A~~::~WA~FEH<=PR~=AGJ\RWAL
. CA AKASfl AGARWAL [Link] AGARWAL

8. Receipts and Payments Account records 12. Subscription is a nature receipt. 15. Receipts and Payments account is a : 21.A Charitable Institution has 250
(a) Only revenue nature receipts (a) Revenue (a) Nominal Account members with a annual subscription Of
(b) Only capital nature receipts and (b) Capital (b) Real Account 5,000 each. The subscription received
payment (c) Both (c) Personal Account during 2018-19 were 11 ,25000, which
(c) Only revenue nature receipts and (d) None (d) Artificial Personal Acco1-mt include 65,000 and 25,000 for the years
payments [MQP JUNE 2023] of 2017-18 and 2019-20 respectively.
(d) Both the revenue and capital nature 13. Compute the income from subscription Amount of outstanding subscription for
receipts and payments for the year 2014 from the following 16. Outstanding subscription is shown in the 2018-19 will be
particulars relating to Tarun Club: the side of Balance Sheet (a) 90000
9. Life membership fee is a nature receipt. (a) Assets (b) 125000
(a) Revenue 1-1- 31-12- (b) liabilities (c) 215000
(b) Capital 2014 2014 (c) both (d) 190000
(c) Both Advance 2800 200 (d) None of the above
(d)None Subscription 22. All these items of revenue nature which
Subscription 145000 [Link] and Expenditure Account is a: received during the period of accounts,
10. The Income and Expenditure Account received (a) Nominal Account are only shown in the Income and
and the Receipts and Payments Account during the (b) Real Account Expenditure Account
year 2014 (a) True
of a Local Club at the end of a (c) Personal Account
(a) 140100 (d) Artificial Personal Account (b) False
particular year show the following
(b) 145100
amounts:
(c) 150000 23. Subscription of 625000 had been shown
As per As per Receipts 18. Receipts and Payments Account is
(d) all of the above in the Income and Expenditure Account
Income & payments A/c prepared by adopting cash principle of
accounting. prepared for the year ending 31st
expenditure 14. From the following calculate
(a) True March, 2019. Additional information is
Ale subscription Income of Pitam Pura Club
(b) False as below·
Printing 7,500 6,900 for the year 2016:
On 31 st On 31" march
Charges Subscription outstanding as on 31 -12-
[Link] & Payment Account only march 2018 2019
2015:9500 (including 500 for 2014)
Rent Paid 12,000 11,000 records the revenue nature of receipts
Subscription received in advance as on Subscription 55,000 72,000
When there were no outstanding of Rent and expenses
31-12-2015: 3,000 (including 200 for Outstanding
and Printing charges at the be. ginning of (a) True
2017) Subscription received during
that year, the difference of 1,600 will be (b) False Subscription 31,000 37,000
2016: fo1· 2014 400, for 2015 8,900, for
shown in the Balance Sheet at the end Of [PP June 2018] Received in
2016134400 for 2017 4,000, for 2018
the year as: Advance
1,200.
(a) Asset 20. In case of a Club, the excess of The amount of subscription received
Subscription outstanding as on 31-12-
(b) Liabilities expenditure over income is called as: during the year 2018-19 would be:
2016; 6,950
(c) Ignored (a) Surplus (a) 636000
Subscription of 2014 written off during
(d) Capital Fund (b) Deficit (b) 602000
2016: 50
(c) Capital Fund (c) 614000
(a) 158900
11. Income Statement of a charitable (d) Investment in Fixed Assets (d) 648000
(b) 160000 [Module]
institution is known as (c) 175000
(a) Profit and Loss Ne (d) None of the above
(b) Receipts and Payments Ne
(c) Income and Expenditure Ne
(d) Statement of Affairs

·PIW5' F?Pffl m •·=== ...---

AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 -
~ CA AKASH AGARWAL

24. The excess of expenses over income is -

[Link] AGARWil\L
.

29. Which of the following is/are

'

feature/features of Income and

~ CA AKASH AGARWAL

34. Scholarship granted to students out of

specific funds provided by Government
[Link] AGARWAL<Ii{

38. During the year 96,000 was Debited as

salary in the Income Expenditure
called
(a) Net loss Expenditure Account? will be debited to Account. There was outstanding on
(b) Net profit (a) It follows Nominal Account (a) Income and Expenditure Account Salary Account at the beginning and at
(c) Both (b) All Capital incomes and expenditures (b) Receipts and payments Account the end of the year were 12,000 and
(d)None are excluded (c) Funds granted for Scholarship account 15,000 respectively. The amount of
[PP July 2023) (c) Profit on sale of asset is credited (d) None of the above salary paid shown in Receipt and
(d) All of the above Payments Account would be
25. At the end of the accounting year, 35. Salary debited to Income and (a) 84000
subscription received in advance and 30. Income statement of a Charitable Expenditure Account for the year was (b) 81000
outstanding rent of a club will be shown Institution is known as 48,000. Outstanding salary paid in the (c) 93000
in the balance sheet. (a) Statement of profit and loss beginning of the year and the (d)None of the above
(a) Both on assets side (b) Receipts and Payments Account outstanding salary at the end of the year
(b) Both on liabilities side (c) Income and Expenditure Account were 6,000 and 7,500 respectively. The 39. In the case of non-profit organisation
(c) Subscription received in advance on (d) Profit and Loss Account amount of Salary to be shown in donations received by the organisation
liabilities side and outstanding rent on [MQP DEC 2023 & Module] Receipts and Payments Account will be: are reflected in
assets side (a) 48000 (a) Income and Expenditure Account
(d) Subscription received in advance on 31. __is similar to the Profit and loss A/c. (b)40500 (b) Capital Account
assets. side and outstanding rent on (a) Income and Expenditure Account (c) 54000 (c) Receipts and Payments Account
liabilities side (b) Receipts and Payments Account (d) 46500 (d) None of the above
[PP July 2023) (c) Balance Sheet
(d) None of the Above 36. Income & Expenditure A/c shows 40. Which of the following item does not
26. The Receipts and Payments Account subscriptions 10,000; Subscriptions match with receipts and payments
generally begins with l2, Which of the following items is shown in accrued in the beginning of the year and account?
(a) Credit Balance the Income and Expenditure Account? at the end of the year were 1,000 and (a) It is a summarized cash book
(b) Debit Balance (a) Only items of capital nature 1,500 respectively. The figure of (b) Transactions are recorded in it on cash
(c) Both Debit and Credit Balance (b) Only items ofrevenue nature which are subscription received appear in receipts basis
(d) None of the above received during the year and payments account will be: (c) It records revenue transactions only
(c) Only items ofrevenue nature pertaining (a) 9500 (d) It serves the purpose of a real account
27. Income and Expenditure Account is a to the period of accounts (b) 10000
(a) Nominal Account (d) Both the items of capital and revenue (c) 10500 [Link] and Payments Account records
(b) Real Account nature (d) 12000 (a) Only revenue nature receipts
(c) Personal Account (b) Only capital nature receipts and
(d) Artificial Personal Account 33. In case of a Club, the excess of 37.A Charitable Institution has 250 payment
expenditure over income is called as members with a annual subscription of (c) Only revenue nature receipts and
28. Receipts and Payments account is a (a) Surplus 5,000 each. The subscription received payments
(a) Nominal Account (b) Deficit during 2018-19 were Ell,25,000, which (d) Both the revenue and capital nature
(b) Real Account (c) Capital Fund include 65,000 and 25.000 for the years receipts and payments
(c) Personal Account (d) Investment in Fixed Assets of 2017-18 and 2019-20 respectively.
(d) Artificial Personal Account Amount of outstanding subscription for 42. A profit on the sale of furniture of a club
the 2018-19 will be will be taken to:
(a) 90000 (a) Cash account
(b) 125000 (b) Receipts and payments account
(c) 215000 (c) Income and expenditure account
(d) 190000 [MQP JUNE 2023) (d) None of the above

■
■
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/:43 · AKASH AGARWAL CLASSES CONTACT US:- 8007777042/4f~~r

..,..,_~,-,,.e.,·c,;a~~=:"JC=r.;,="'=u-=ro;r.:,,-,;;;-;-:-·.~.-,:--;-;,·""""'1;:c·! .-~';l";:;-.-;1~,,----, -
:.!111LL:u, 21:c:.:t£1cl-!f..fi~H.t':;i:;[.''. C',lJ_J. :_~!!!: '. .. :.::_'..,: .L'.' · l:...'.11' ,!:. '!;:J!t J ::_-'1;
:L...:,11~-·.:...:::..'1:o:.<".'--!1:.-:1:!:.l.l<!J..1,a::u:1!1"'.11~~,::,t:,:,,l!Ulc=-,=~[Link]"':,'''<-''"'--,.,

Jg[ C½AM::;~RWA~GMWAL: 'l.\i I <½AKAsu:ool"wA~ [Link] AGARWAL

-
-~
48. Only items of revenue nature pertaining 53. Endowments received by a non-profit
43. The Income and expenditure Account 45. What will be the effect of Depreciation
and the Receipts and Payments Account on Machinery in Receipt and Payment to the period of accounts are shown in organisation are to be treated as
of a Local Club at the end of a Account? the revenue receipts.
particular year show the following (a) Shown in Debit Side of Receipt and (a) Receipts and Payments Account (a) True
amounts: Payment Account (b) Income and Expenditure Account (b) False
As per As per (b) Shown in Credit Side of Receipt and (c) Both (A) and (B) (c) Partly true Partly false
Income Receipts and Payment Account (d) Balance Sheet (d)None
Expenditure Payments A/c (c) No effect on Receipt and Payment [PP Dec 2023] [Module]
Ale Account
Printing 7500 6900 (d) None of the above 49. Income and Expenditure Account is a 54. Income & Expenditure Ale determines
Charges (a) Nominal Account the 'Surplus' or 'Deficit' of the
Rent 12000 11000 46. Salaries paid during the year 2022-23 (b) Real Account accounting period by matching
Paid were 4, 70,000. Salaries outstanding on (c) Personal Account expenses/ losses against incomes and
When there were no outstanding of Rent (d) Artificial Personal Account gains.
01.04.2022 were 65,000 and it was also
and Printing charges at the beginning of [MQP JUNE 2023] (a) True
outstanding for three months on
that year, the difference of 1,600 will be (b) False
31.03.2022 amount of salaries shown in 50. Income & Expenditure Ale shows
shown in the Balance Sheet at the end of (c) Partly true Partly false
Income Expenditure Account will be subscriptions f 8,20,000; Subscriptions
the year as: (d) None
(a) 535000 accrued in the beginning of the year and
(a) Asset [Module]
(b) 400000 at the end of the year were f 74,000 and
(b) Liabilities
(c) 540000 subscription received in advance at the
(c)Ignored 55. Income & Expenditure Ale is a
(d) 405000 end of the year was f 96,000. The figure
(d) Capital Fund summarised form of the Cash Book
of subscription received that would
[Link] information is given for the (a) True
44. Subscription of 6,25,000 had been shown appear in Receipts & Payments Ale will
year ending 31.03.2023: (b) False
in the Income and Expenditure Account be:
Salaries outstanding and paid in (c) Partly true Partly false
prepared for the year ending 31st (a) 798000
advance on 01.04.2022 were 33,000 and (d) None
March, 2019. Additional information is (b) 650000
22,000 respectively. [Module]
as below: (c) 950000
Salaries paid during the year 2022-2023 (d) 842000
On 31st On 31st 56. Subscription received by an
3,30,000 [MQP DEC 2024)
March, March, organisation is a Revenue Receipt.
2018 2019 Salaries paid in advance and
outstanding on respectively. 51. Income & Expenditure Account is (a) True
Subscription 55000 72000
Outstanding The amount of salaries to be shown in drafted by a trading concern (b) False
Subscription 31000 37000 ending 31.03.2023, will be (a) True (c) Partly true Partly false
Received in (a) 346500 (b) False (d)None
Advance (b) 291500 (c) Partly true Partly false [Module]
The amount of subscription received (c) 313500 (d)None
during the year 2018-19 would be (µ)368500 [Module]
(a) 6,36,000 [PP Dec 2023)
(b) 6,02,000 52. Receipts & Payments Ale begins with
(c) 6,14,000 the cash & bank balance at the
(d) 6,48,000 beginning of the accounting period.
[MQP DEC 2024 & PP Dec 2019) (a) True
(b) False

-
(c) Partly true Partly false
(d) None [Module]
llilill!i ¥fW ;wmmrm:r: -~#ti emermrrrmmmrmz,......- llli

AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~ CA AKASH AGARWAL

57. Subscription off 6,25,000 had been

shown in the Income and Expenditure
[Link] AGARWAL

FILL IN THE BLANKS

~ CA AKASH AGARWAL [Link] AGARWAL

Account prepared for the year ending ANSWERKEX

31st March, 2023. Additional 59. Outstanding subscription is shown in
information is as below: the_ _ _ _ _ side of Balance Sheet. 1. C 2. D 3. C 4. A 5. A 6. B 7. A 8. D 9. A 10.B
Particulars On 31st On 31st [Link] subscription is reflected in the - 11.C 12.A 13.A 14.A 15.B 16.A 17.A 18.A 19.B 20.B
March, March, - - - - side of the Balance Sheet. 21.C 22.B 23.C 24.A 25.B 26.B 27.A 28.D 29.B 30.C
2022m 2023 m 61. In Receipts & Payments Account, all 31.A 32.C 33.B 34.C 35.D 36.A 37.C 38.C 39.C 40.C
Subscription 55,000 72,000 receipts (whether, capital or revenue) are 41.D 42.C 43.B 44.C 45.C 46.C 47.A 48.B 49.A 50.A
Outstandimz recorded on the _ _- hand side of this 51.B 52.A 53.B 54.A 55.B 56.A 57.C 58.C
Subscription 31,000 37,000 account, while all payments (whether,
Received in capital or revenue) are recorded on the FILL IN THE BLANKS_
Advance
- hand side of this account. 59. Asset
The amount of subscription received
62. Subscriptions received in advance by a 60. Liabilities
during the year 2022-23would be :
Club are shown on _ _ _ _ side of the 61. left, right;
(a) 6,36,000
Balance Sheet. 62. Liabilities
(b) 6,02,000
(c) 6,14,000
(d) 6,48,000
[Module]

58. A Charitable Institution has 250

members with a annual subscription of'
5,000 each. The subscription received
during 2021-22 were f 11,25,000, which
include f 65,000 and 25,000 for the years
of 2020-21 and 2022-23 respectively.
Amount of outstanding subscription for
the 2021-22 will be:
(a) 90,000
(b) 1,25,000
(c) 2,15,000
(d) 1,90,000
[Module & PP July 2023, June 2019]

■ ■
I
AKASH AGARWAL CLASSES CONTACT US:- 8007777042/~3 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43

,..,......,~-·.,r.:-.-=--.m~~.m.:;c,~:,:i;a;;c~~==..-ic:f"l'l''"'T.~•-~,, ;i:'7 ;;~

_:I,iltc1_:~.'.l'' '?:.'.::c...._t.it.J~.tU,:~E:., '.!!.: ~ c..'.l~::, '....: · ,·lc"c .. , ·c ~='~ttm!.[Link].~r=t!"'!:""-'lll-'-"-'-'n~s.:.,:~,..,,,._,,,.._..,,,,,_,,,..c,,,• ~ _ .

~ 1 ~i5HAGARWAL;::PooF-~HA:::;.. ~. ' ~ CAAKASHAGARWAL

9. Credit purchase can be ascertained by

[Link] AGARWAL

FILL IN THE BLANKS

~**: preparing
(a) Debtors Account
[Link] Capital is n,50,000, Closing
Capital <2,75,000. Drawing U5,000,
(a) 3,51,667 and 17,58,333 (b) Creditors Account Further Capital introduced <45,000. Gross
1. Accounts generally held under single (b) 3,63,333 and 18,16,667 (c) Any of above Profit is<_ __
entry system by (c) 3,87,500 and 19,37,500 (d) None of the above [PP Dec 2022]
(a) Company (d) 3,10,000 and 15,50,000 [Link] the single-entry system, which two
(b) Sole Trader methods are used to ascertain
10. Credit Sale can be ascertained by
(c) Society 6. Nidhi started her business with capital profit or loss?
preparing [PP Dec 2021]
(d) Government of R45,000 on 1st January, 2023.
(a) Debtors Account
Interest on drawings 5,000 and interest 16. The Sales< 180 Lakh, Purchases< 129
(b) Creditors Account
2. When closing capital is more than on capital 2,000 were appearing in the Lakh and Opening Stock< 33 Lakh. If the
(c) Any of above
opening capital, it denotes Profit and Loss Ale for the year ended rate of Gross Profit is 50% on cost, then
(d) None of the above
(a) Profit 31st December, 2023. Nidhi withdrew the value of closing stock will be
(b) Loss K14,000 during the year and pr,;>fit
11. Balance Sheet is prepared to show the
(c) No Profit no loss earned during the year amounted to 17. _ _ _ _ is an account which is prepared
operating results of an organisation Oil a
(d) Profit, if there is no introduction of (15,000. Her capital on 31st December. by a merchandising concern which
specific date.
fresh capital 2023 is- purchases goods and sells the same during
(a) True
(a) 67,000 a particular period.
(b) False
3. From the following details estimate the (b) 47,000 18. Profit & Loss Account is drafted to
(c) Partly true, partly false determine the _ _ _ _ of a concern.
capital as on 31.03.2017. Capital as on (c) 45,000
(d) None of the above
01.04.2016- 4,10,000. Drawings 40,000, (d) 43,000
Profit during the year 50,000
[Link] Accounts is prepared from the
(a) 4,10,000 7. Capital introduced in the beginning by
balances ofledger accounts
(b) 4,50,000 Shyam 3,00,000; further capital
(a) True
(c) 4,20,000 introduced during the year 2,00,000;
(b) False
(d) 4,00,000 Drawing 1,500 per month and closing
(c) Partly true, partly false
capital is 4,50,000 The amount of profit
(d) None of the above
4. A and B had contributed purchased a or loss for the year is:
12,000 piece of and land B for 30,000 (a) Loss of32,000.
13. Cash in hand represents cash actually
and sold it for 60,000 in 2023. Originally (b) Loss of 50,000.
held by the business Oil the balance sheet
A had contributed 12,000 and B 8,000. (c) Profit of 32,000.
date.
The profit on venture will be (d) Information is insufficient for any
(a) True
(a) 30,000 comment.
(b) False
(b) 20,000
(c) Partly true, partly false
(c) 60,000 8. Opening capital is ascertained by
(d) None of the above
(d) Nil preparing
(a) Total Debtors Account
5. Opening Debtors, Collection from (b) Total Creditors Account
Debtors and Discount Allowed were (c) Cash Account
3,15,000; 18,30,000 and 35,000 (d) Opening Statement of Affairs
respectively. If the closing debtors were
20% of credit sales of the period, then

-
closing debtors and credit sales would
be
FWM rwzv~, e \trf5ffl!{ffflffl:!PiliWFT?ITmmrrt ~

AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43 AKASH AGARWAL CLASSES CONTACT US:- 8007777042/43
 ~ CAAKASHAGARWAL [Link] AGARW!AL

a_N_SWER KEY

~
IT]]
2.Q]
!IE]
@
~
4. Al 5. C ! !
6. D 7. Al 8. D ! !
9. B [Link]
FILL IN THE BLANKS
14. 'n,05,000
15. Conversion method.
16. ~ 42 Lakh
17. Trading Ale
18. Net Profit/ Loss

■
AKASH AGARWAL CLASSES CONTACT US::- 8007777042/~3

~:~--:~,1,,,,,.,,""""nap-,r:r,=;-;c,m:r,,q:;.;i;==~n:r..a,i:.-i;::r,n;-,,;rr,,;c;,:~-;-;-;:,c:r;-,c, ,r,:-c::1: -rr--;; l1H~:--!1111'