Q. At the time of preparation of financial accounts, balance of Bad Debts Recovered Account will be transferred to
✅ Correct Answer: (D)
Profit & Loss Appropriation a/c
Fundamentals of Accounting MCQs and Notes
Q. Which of the following account(s) is (are) maintained in the joint venture when separate set of books are maintained?
✅ Correct Answer: (C)
Co-venturer a/c
Q. A purchased goods costing 2,60,000 for joint venture with B. B sold a major part of the goods at cost plus 25% on cost, for 2,50,000. Balance of goods were taken over by B at cost less 10%. Find out profit/loss on Joint Venture.
✅ Correct Answer: (C)
44,000
Q. X sends out certain goods to Y, costing 1,50,000 at cost plus 25% on invoice price. ¾ of the goods were sold by R at 1,76,000. Commission 5% upto invoice value a nd 10% of any surplus above invoice value. The amount of commission will be
✅ Correct Answer: (C)
10,568.75
Q. X sends out goods to Y, costing 3,60,000. Goods are to be sold at cost plus 25% on sales. The consignor asked consignee to pay an advance for an amount equivalent to 60% of sales value. The amount of advance will be
✅ Correct Answer: (A)
2,88,000
Explanation: The sales value of the goods is 3,60,000 / (100 - 25) = 4,80,000.
The advance payment requested by the consignor is equivalent to 60% of the sales value, so the amount of the advance will be 4,80,000 x 60% = 288,000.
Q. At the en d of the accounting year bills receivable discounted were 32,000 would be shown
✅ Correct Answer: (B)
on Assets side of the Balance Sheet
Q. At the time of dishonor of an endorsed bill, which account would be credited by the drawee?
✅ Correct Answer: (B)
Drawer’s Account
Q. When credit balance as per pass book is the starting point of a Bank Reconciliation Statement then bank charges are
✅ Correct Answer: (B)
Added
Q. From the following details ascertain the adjusted bank balance as per Cash Book – overdraft as per Cash Book 1,60,000; cheque received entered twice in the Cash Book 10,000; credit side of bank column cash short by 1,000; bank charges amounting to 400 entered twice:
✅ Correct Answer: (D)
1,70,600
Q. A purchase of 49,500 from Shiva was recorded in Purchases Book as 59,400, the profit would show
✅ Correct Answer: (B)
a decrease of 9,900