1. The document contains questions about basic accounting concepts and terminology such as types of expenditures, adjustments required for changes in partnership profit sharing ratios, definitions of real and nominal accounts, and treatment of unrecorded assets when a partner retires. 2. It also includes questions testing understanding of financial statements like the balance sheet and what information it provides, as well as current versus long-term investments. 3. Additional questions cover topics like entries for advances received from customers, fixed deposits from the public, implications of different cash book balances, what an NSF check means, and the formula for calculating cost of goods sold.

1. ROUND 1

2. 2
Basic Accounting

3. “
Rule for the round
3

4. Which type of
expenditure is
shown on the
asset side of the
balance sheet?
4
1.Capital expenditure
2.Deferred revenue
expenditure
3.Revenue expenditure
4.None of the above
1..

5. 5
What adjustments are required at the
time of change in profit sharing ratio
in a partnership firm?
2..
1. Determination of sacrificing or gaining ratio
2. Treatment of Goodwill
3. Treatment of accumulated profits and reserves
4. All of the above

6. 1. Land account
2. Building
3. All of the above
4. None of the above
What is a real
account?
3..

7. What is a nominal account?
4..
1. Goodwill Account
2. Machinery Account
3. Supplier Account
4. None of these

8. 1. Credited to revaluation account
2. Credited to capital account of retiring
partner only
3. Debited to revaluation account
4. Credited to partner’s capital account
8
How unrecorded assets are
treated at the time of
retirement of a partner?
5..

9. Balance sheet
provides
information about
financial position
of the enterprise:-
9
1. At a point in time
2. Over a period of time
3. For a period of time
4. None of the above
6..

10. 10
Which of the following is not a current
investment?
7..
1. Investment in property
2. Investments in equity instrument
3. Investments in preference shares
4. Investment in mutual funds

11. 1. Other current assets
2. Other current liabilities
3. Other long term liabilities
4. Short term provisions
Under which sub
heading will you
record the advance
received from
customers?
8..

12. Under which sub-heading will you
record fixed deposits from public?
9..
1. Long-term borrowings
2. Long-term investment
3. Short term provisions
4. Current liabilities

13. 1. Balance Sheet
2. Profit & loss account
3. Cash Flow statement
4. Only (a) & (b)
5. All of these
13
The financial statements of a
business enterprise include
10..

14. Favorable
balance of cash
book implies
14
1. Credit Balance of cash
book
2. Debit Balance of cash
book
3. Bank overdraft
4. Adjusted balance of cash
book
11..

15. 15
A check returned by bank marked as
“NSF” means that
12..
1. Bank cannot verify your identity
2. There are not sufficient funds in your account
3. Check has been forged
4. Check can’t be cashed being illegal

16. 1. Uncollected cheques
2. Un credited cheques
3. Outstanding cheques
4. Bounced cheques
_______ are the
cheques issued by
the business but
not yet presented
in the bank
13..

17. Favourable balance of bank statement
implies..?
14..
1. Debit balance
2. Credit balance
3. Bank Overdraft
4. Adjusted Balance

18. 1. Benefits & costs
2. Revenue & Costs
3. Cash inflows and Outflows
4. Potential and real performance
18
Accounting is the process of
matching
15..

19. A and b sharing profits and losses in
the ratio of 2/3rd and 1/3rd, admit C
a partner giving him 1/4th share. The
new profit sharing ratio will be..
16..
1. A 1/2 B 1/4 C 1/4
2. A 1/3 B 1/3 C 1/4
3. A 3/8 B 3/3 C 2/8

20. When a new
partner gives cash
for goodwill, the
amount is credited
to the..
20
1. Premium for goodwill
account
2. Capital account of the
new partner
3. Cash account
17..

21. 21
A , B and C are partners sharing
profits in the ratio of 2:2:1. C retired.
The new profit-sharing ratio between
A and B will be…
18..
1. 2:1
2. 1:1
3. 3:1

22. 1. 6% p.a
2. 10% p.a
3. The bank rate
According to the
Partnership Act
(sec37), the interest
payable to the
deceased partner
on the amount left
by him will be…
19..

23. A change in partnership among the
partners amounts to _________ of
the partnership firm.
20..
1. Amalgamation
2. Reconstitution
3. Acquisition
4. Dissolution

24. 24
Calculate the value of goodwill
of a firm at three year’s
purchase of four years
average profits. The firm
earned in the previous four
year’s profit of 15000, 11000,
18000 and 16000 .
21..

25. Name any four
elements of
partnership
deed?
22..
25

26. 26
Revaluation account is a….
23..
1. Real account
2. Personal account
3. Nominal account

27. Journalise for the
creditors of
Rs.45000 against
purchase of
machinery .
24..

28. Calculate the value of depreciation of
10% if the machinery of Rs.60000
was bought on 1st June given that the
firm follows calendar year.
25..

29. 29
Under which system an
estimate is made of amount
required for petty expenses for
a certain period?
26..

30. Provisions are
_____________.
30
1. Appropriation of profits
2. Charge of profits
3. Stipulation of profits
4. Concession of profits
27..

31. Drawee is allowed three extra days
after the due date of bill for making
payments. Such three days are known
as -------------------------
28..
1. Days of term
2. Days of maturity
3. Days of grace
4. Due days

32. 32
Give formula to calculate cost of goods
sold.
29..
1. Opening stock + net purchases+ direct expenses –
closing stock.
2. Opening stock + purchases+ direct expenses – closing
stock.
3. Opening stock + purchases+ wages – closing stock.
4. Opening stock + net purchases+ carriage on purchase
– closing stock.

33. Journalise:
Received cash
Rs.14000 in full
settlement of debt
of Rs.15000 from
ram.
30..