The Accounting Education EPFO Accounting MCQ QUIZ
The Accounting Education EPFO Accounting MCQ QUIZ
The Accounting Education EPFO Accounting MCQ QUIZ
2. Which of the following sets of expense are the direct expenses of business?
(a) Wages, Carriage Inward, Octroi
(b) Postage, Wages, Carriage Inward
(c) Purchase, Wages, Coal Expenses
(d) Both (a) and (c)
6. Journal is a book of
(a) Original Entry
(b) All cash transactions
(c) Secondary Entry
(d) All non-cash transactions
The Accounting Education
EPFO Accounting MCQ QUIZ
11. When obligation is not probable or the amount expected to be paid to settle
the liability cannot be measured with sufficient reliability, it is called
(a) Contingent liability
(b) Provision
(c) Secured Loan
(d) None of the above
14. Valuing the stock in trade at net realisable value or cost price whichever is
lower, is an example of the convention
(a) Conservatism
(b) Consistency
(c) Dual aspect
15. In case goods are manufactured and segregated for specified consumers the
best method for valuation of inventory would be
(a) FIFO
(b) Simple average
(c) Base stock
(d) Specific identification method
21. Goodwill of the firm is valued at three year’s purchase of the average profit
of the last five
years. The profits are as under
2016 16,0000 (Profit)
2015 20,000 (Loss)
2014 1,20,000 (Profit)
2013 1,00,000 (Profit)
2012 80,000 (Profit)
Goodwill amount will be
(a) Rs. 2,76,000
(b) Rs. 2,64,000
(c) Rs. 2,60,000
(d) Rs. 2,28,000
22. Rama Ltd. forfeited 800 shares of Anil of Rs. 10 each fully called up for non-
payment of final call of Rs. 2 per share and reissued to Ankit as fully paid up for
Rs. 10 per share. Amount
transferred to capital reserve will be
(a) Rs.3,200
(b) Rs.4,600
(c) Rs.6,400
(d) Rs.8,000
The Accounting Education
EPFO Accounting MCQ QUIZ
23. On 1 Jan. 2007 Ankur of Delhi consigned 200 cases, cost price Rs. 3,750 at
proforma invoice of 25% profit on sales to his agent Mani of Manipur. Balance
of Goods Sent on Consignment A/c transferred to General Trading A/c will be
(a) Rs. 5,000
(b) Rs. 3,750
(c) Rs. 8,000
(d) None of the above
25. Goods purchased Rs. 100000; sales Rs. 90000. If margin 20% on sales then
closing stock will be
(a) Rs. 25,000
(b) Rs. 35,000
(c) Rs. 28,000
(d) Rs. 5,600
26. The total of wages for the month of Jan, 2016 amounting Rs. 6000 was not
posted. Rectifying entry for the same will be
(a) Suspense A/c Dr. 6000 ; To Labour A/c 6000
(b) Wages A/c Dr. 6000 ; To Suspense A/c 6000
(c) Wages A/c Dr. 6000 ; To Cash A/c 6000
(d) None of the above
27. A bill is drawn on 12th June for 2 months. The due date of the bill will be
(a) 12th August
(b) 13th August
(c) 14th August
(d) 15th August
The Accounting Education
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28. Goods costing Rs. 2,40,000 were sent on consignment basis. Goods are
invoiced at cost + 25%. The Invoice price and loading will be
(a) Rs. 2,40,000 and Rs. 60,000
(b) Rs. 3,00,000 and Rs. 10,000
(c) Rs. 4,00,000 and Rs. 1,60,000
30. Wright Ltd. issued 40000, 8% debentures of Rs. 10 each at par which are
redeemable after 8 years at a premium of 20%. The amount of loss on
redemption of debentures to be written off every year will be
(a) Rs. 60,000
(b) Rs. 50,000
(c) Rs. 10,000
31. When drawing up a B.R.S. If you start with a debit balance as per the Bank
statement, the unpresented cheques should be
(a) Not required to be adjusted
(b) Subtracted
(c) Added
(d) None of the above
(d) Conservation
36. For charging depreciation, on which of the following assets, the depletion
method is adopted?
(a) Washing Assets (Mines)
(b) Land
(c) Goodwill
(d) All of the above
38. When the incoming partner brings his share of goodwill in cash, the amount
of brought-in share of goodwill is credited to
(a) Cash Account
(b) Capital Account
The Accounting Education
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39. For shares issued to promoters for their services, account debited is
(a) Goodwill Account
(b) Promotion Expenses Account
(c) Promoters Account
(d) Directors Account
40. According to Section 78 of the Companies Act, the amount in the securities
premium A/c
can be used for the purpose of
(a) Issue of fully paid bonus shares
(b) Writing off preliminary expenses
(c) Both (a) & (b)
(d) None of the above
48. An amount of Rs. 5,000 received from Pankaj credited to Pooja would affect
(a) Pooja’s A/c
(b) Pankaj’s A/c
(c) Pankaj’s A/c and Pooja’s A/c
(d) Cash A/c and Pooja’s A/c
50. The concept that “an accountant shouldn’t anticipate profit, but must
provide for all losses” is known as
(a) The conservatism concept
(b) The consistency concept
(c) The materiality concept
(d) The reduction concept
54. Jai Co. purchased goods for Rs. 30,00,000 and sold 70% of such goods during
the accountingyear ended 31st March, 2007. The market value of the remaining
goods was Rs. 7,00,000. Company valued closing stock at Rs. 7,00,000 and not at
Rs. 900000 due to
(a) Periodicity concept
(b) Cost concept
(c) Conservatism concept
(d) None of the above
55. Tata Communication invited applications for 50,000 equity shares of Rs. 10
each and received 65,000 applications along with application money of Rs. 5 per
share. Which of the following is correct
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56. Goods costing Rs. 2,00,000 sent out to consignee at cost + 25%. Invoice price
of the goods will be
(a) 2,40,000
(b) 2,30,000
(c) 2,10,000
(d) 2,50,000
57. A company wishes to earn a 25% profit margin on selling price. Which of the
following in the profit mark up on cost, which will achieve the required profit
margin
(a) 33.33%
(b) 20%
(c) 30%
(d) None of these
58. Ram of Raipur sends out goods costing Rs. 1,00,000 to Amar of Alwar. 3/5th
of the goods were sold by consignee for Rs. 70,000. Commission 2% on sale plus
20% of gross sale less all commission exceeds cost price. The amount of
commission will be
(a) Rs.2,900
(b) Rs.3,333
(c) Rs.2,833
(d) Rs.2,800
59. On 1.7.06, Ravi draws a bill on Raju for Rs. 10,000. At maturity Raju requests
Ravi to renew the bill for 2 months at 15% p.a. interest. Amount of interest will
be
(a) Rs. 200
(b) Rs. 250
(c) Rs. 300
(d) Rs. 325
The Accounting Education
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60. Credit purchase of cotton by cotton dealer worth Rs. 10,000 will be entered
in
(a) Sales Book
(b) Bill Receivable Book
(c) Purchase Book
(d) None of the above
62. Anurag and Basu entered into a joint venture and agreed to share equal
profits. Anurag purchased goods costing 2,00,000, Basu sold 4/5th of the goods
for Rs. 2,50,000. Balance goods were taken over by Basu at cost less 20%. If
same set of books is maintained, find out profit on venture
(a) Rs.90,000
(b) Rs.85,000
(c) Rs.83,000
(d) Rs.82,000
63. Brij Ltd. purchased a machine on 1.1.2004 for Rs. 2,40,000. Installation
expenses were Rs. 20000. Residual value after is estimated to be Rs. 5000. On
1.1.2004, expenses for repair were increased to the extent of Rs. 5000
depreciation is provided under straight line method. Depreciation rate is 10%.
Annual depreciation will be
(a) Rs.20,000
(b) Rs.26,500
(c) Rs.26,000
(d) Rs.23,000
65. Pankaj Ltd. issued 500 equity shares of Rs. 100 each as fully paid up in
consideration of purchase of plant and machinery Rs. 40000. What will be the
amount of discount an issue of shares
(a) Rs. 15,000
(b) Rs. 10,000
(c) Rs. 5,000
66. In the bank reconciliation statement, when balance as per cash book is
taken as the starting point, the direct deposits from customer of Rs. 10,000 in
the bank will be
(a) Subtracted
(b) Added
(c) Ignored
(d) None of the above
67. The profit of the M/s JPH, a partnership firm before charging managerial
commission is Rs. 84,000. The managerial commission is charged @ 5% on profit
after charging such
commission. The amount of managerial commission will be
(a) Rs. 4,200
(b) Rs 8,400
(c) Rs. 4,000
68. Naveen of Nagpur sends out 1,000 boxes costing 1,00,000 to Deepak of Delhi
at cost +20% consignor’s expenses were:
Freight Rs. 6,000, Insurance Rs. 2,000, Consignee’s expenses were : Loading and
Unloading charges Rs. 10,000, Salesman salary Rs. 6,000 and Commission 2% on
Gross sale. What will be the amount of profit if 3/4th goods sold by consignee at
Rs. 1,00,000
(a) Rs. 5,500
(b) Rs. 6,500
The Accounting Education
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69. Manish sold goods to Kamal for Rs. 25,000. Manish will grant 2% discount to
Kamal. Kamal requested Manish to draw a bill. The amount of bill will be
(a) Rs.25,000
(b) Rs.24,750
(c) Rs.24,500
(d) Rs.24,250
(d) Objectivity
74. The value of on asset after deducting depreciation from the historical cost is
known as
(a) Fair Value
(b) Market Value
(c) Net Realisable Value
(d) Book Value
77. If del-credere commission is allowed for bad debt consignee will debit the
bad debt amount
to :
(a) Debtors A/c
(b) General Trading A/c
(c) Commission Earned A/c
(d) Consignee A/c
(d) As an expense
85. The portion of the acquisition cost of the asset yet to be allocated is known
as........
(a) Salvage value
(b) Realisable Value
(c) Accumulated value
86. If sales are Rs. 2,000 and the rate of gross profit on cost of goods sold is 25%
than the cost of goods sold will be
(a) Rs. 1,600
(b) Rs. 1,700
(c) Rs. 1,500
(d) Rs. 1,800
87. The profit of last three years are Rs. 42,000, Rs. 39,000 and Rs. 45,000. Find
out the goodwill at two year’s purchase.
(a) Rs. 1,26,000
(b) Rs. 42,000
(c) Rs. 36,000
89. A firm has on average profit of Rs. 60,000; rate of return on capital
employed is 12.5% p.a.; total capital employed in the firm was Rs. 4,00,000.
Goodwill on the basis of two year’s purchase of super profit is
(a) Rs. 15,000
(b) Rs. 10,000
(c) Rs. 20,000
90. 18% investment of Rs. 1,00,000 and interest received on investment Rs.
15,000 have been given in the trial balance for the period ended on 31.3.2006.
The amount of interest outstanding in the final accounts will be
(a) Rs. 3,000
(b) Rs. 15,000
(c) Rs. 4,000
91. If sales revenue is Rs. 4,00,000, cost of goods sold is Rs. 3,10,000 and
operating expenses are
Rs. 60,000, the gross profit is
(a) Rs. 90,000
(b) Rs. 60,000
(c) Rs. 30,000
(d) Rs. 2,50,000
92. Average stock = Rs. 12,000. Closing stock is Rs. 3,000 more than opening
stock. The value of closing stock will be
(a) 24,000
(b) 12,000
(c) 10,500
(d) 13,500
93. Goods costing Rs. 2,00,000 sent out to consignee at cost + 25%. Invoice value
of the goods will be
(a) Rs. 2,40,000
(b) Rs. 2,30,000
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94. Manish purchased a car for Rs. 5,00,000 making a down payment of Rs.
1,00,000 and signing a bill payable of Rs. 4,00,000. As result of this transaction
(a) Asset will increase by 4,00,000
(b) Liabilities will increase by 4,00,000
(c) Both (a) and (b)
(d) Asset will increase by 5,00,000
95. If repair cost is Rs. 25,000, white wash expenses are Rs. 5,000 cost of
extension of building is Rs. 2,50,000 and cost of improvement in electrical wiring
is Rs. 19,000. The amount to be capitalized will be
(a) Rs. 2,69,000
(b) Rs. 2,99,000
(c) Rs. 2,80,000
(d) Rs. 2,74,000
96. Ram draws a bill on Rahim for Rs. 30,000. Ram wants to endorse it to Shyam
in settlement of Rs. 35,000 at 2% discount and balance in cash. How much cash
Ram will pay to Rahim.
(a) Rs. 5,000
(b) Rs. 4,200
(c) Rs. 4,300
(d) Rs. 4,600
97. Gopal Ltd. issued 20000, 8% debentures of Rs. 10 each at par which are
redeemable after 5 years at a premium of 20%. The amount of loss on
redemption of debenture to be written off every year will be
(a) Rs. 10,000
(b) Rs. 8,000
(c) Rs. 2,000
(d) Rs. 30,000
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98. Gopal sent out certain goods to Kamal of Mumbai. 1/10 of the goods were
lost in transit. Invoice value of goods lost Rs. 12,500. Invoice value of goods sent
out on consignment will be
(a) Rs. 1,20,000
(b) Rs. 1,40,000
(c) Rs. 1,25,000
(d) Rs. 1,00,000
99. Profit and Loss account is prepared for a period of one year by following
(a) Periodicity period concept
(b) Business entity concept
(c) Accrual concept
(d) None of the above.