Q. The system of keeping accounts generally adopted by small size branches are:
✅ Correct Answer: (A)
debtors system
Financial Accounting 2 MCQs and Notes
Q. If the opening balance of debtors is Rs 16,000 and closing balance is Rs 80,000, cash received from debtors is Rs 35,000 and bad debts is Rs 1,000, then what will be the amount of credit sales?
✅ Correct Answer: (C)
rs 100000
Q. Goods sent by HO but not received by branch before the end of the year, by debiting it to goods in transit, which account should be credited?
✅ Correct Answer: (D)
branch a/c
Q. H.O. sent goods to branch at invoice price 50% plus on original price. How many percentage of profit will be on Invoice price?
✅ Correct Answer: (C)
33.33%
Q. Stock and debtors system is generally used when goods are sent to the branch at _____
✅ Correct Answer: (B)
invoice price
Q. The adjusting entry for difference between the invoice price and cost price of goods are shown in ________
✅ Correct Answer: (C)
branch adjustment a/c
Q. H.O. has sent goods on invoice price worth Rs 2,40,000 which are 25% above cost price. What is the loading element?
✅ Correct Answer: (C)
rs 48000
Q. Goods in transit are shown in the balance sheet at ______
✅ Correct Answer: (A)
head office
Q. Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closing balance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors?
✅ Correct Answer: (A)
rs 10,24,000
Q. Which of the following branches, taking into consideration the scope of authority and responsibility, prepares its own independent final accounts?
✅ Correct Answer: (A)
independent branch