Accounting Objective Questions and Answers

1884. Journal Proper is meant for recording . . . . . . . .

1885. The purpose of ledger is to

1886. The term loan of Rs. 5,00,000 was received from IFCI. It was used as under:
I. Rs. 2,00,000 was advanced to suppliers for capital work-in-progress
II. Rs. 3,00,000 was used for financing the working capital
The interest payable would be treated:

A. on both I and II as capital expenditure

B. on I as capital expenditure and on II as revenue expenditure

C. on I as deferred expenditure and on II as revenue expenditure

D. on I as deferred revenue expenditure and on II as capital expenditure

Discussion

1887. Any revenue expense for when a separate fund is available will be . . . . . . . .

A. debited to the separate fund

B. debited to income and expenditure account

C. capital issued and shown in the balance sheet

D. credited to the separate fund

Discussion

1888. Which of the following statements is incorrect?

A. When proposed dividend does not exceed 10%. It is not obligatory on the company to transfer any profit to its reserve

B. Capital redemption reserve can be utilised for writing off miscellaneous expenses and losses

C. Dividends is not payable on the calls paid in advance by shareholders

D. Reserves created by revaluation of fixed assets are not permitted to be capitalised

Discussion

1889. If the average stock of a firm is Rs. 40,000 and its opening stock is Rs. 5,000 less than the closing stock, what would be the value of Opening Stock?

1890. Which of the following account with normal balance is shown at the credit side of a trial balance?

A. Cash account

B. Bank account

C. Equipment account

D. Accrued expenses account

Discussion

Accounting MCQs