M.C.Q (1 Marks)

MCQ 11 Mark

On which side of the Balance sheet the prepaid expenses shows

A
Liabilities side
B
Outside the balance sheet
✓
Assets side
D
footnotes

Answer

Correct option: C.

Assets side

C
Assets side
Explanation:it is current asset so it will be shown on the asset side of balance sheet.

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MCQ 21 Mark

Sundry Debtors given in the Trial Balance are ₹ 20,000. Further bad debts amounted to ₹ 1,000 and it is desired to create a provision of 5% on debtors for doubtful debts and 2% for discount. Sundry Debtors will appear in the Balance Sheet at a figure of:

✓
17689
B
18600
C
17670
D
18620

Answer

Correct option: A.

17689

A
₹ 17,689
Explanation:
₹ 17,689

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MCQ 31 Mark

Opening stock Rs.2,00,000; purchases Rs. 3,50,000; closing stock Rs.1,20,000; Wages Rs.2,500; freight Rs.4,500; carriage outward Rs. 5,500; trade expenses Rs. 2,500. The percentage of gross profit on sales is 20%. Calculate gross profit

A
Rs.546350
B
Rs.109250
C
Rs.546520
✓
Rs.348900

Answer

Correct option: D.

Rs.348900

D
Rs 109250
Explanation:
Cost of goods sold=Opening stock + Purchases-Closing stock + Wages + Freight
$
\begin{array}{l}
=200000+350000-120000+2500+4500 \\
=437000
\end{array}
$
Let sales be ' $x$ '
$
\text { Profit }=\frac{20}{100} \times x=\frac{x}{5}
$
Sales-Profit=Cost
$
x-\frac{x}{5}=437000
$
on solving this, we will get $x=546250$
So, profit $=\frac{546250}{5}=109250$

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MCQ 41 Mark

If Capital at the end of the year is ₹ 40,000; Capital introduced during the year ₹ 30,000; drawings for the year ₹ 20,000 and loss for the year is ₹ 60,000, then Capital at the beginning of the year was:

✓
90000
B
10000
C
70000
D
80000

Answer

Correct option: A.

90000

A
₹ 90,000
Explanation:
Capital at the beginning = Capital at the end + Drawing + Loss - Capital Introduced
= ₹ 40,000 + ₹ 20,000 + ₹ 60,000 - ₹ 30,000
= ₹ 90,000

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MCQ 51 Mark

Incomplete records system suitable for which type of business:

A
Tea shop
B
Washer man
✓
All of these
D
Flower shop

Answer

Correct option: C.

All of these

C
All of these
Explanation:
The single entry system is suitable for small businesses because Double entry is costly.

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Account M.C.Q (1 Marks)

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