Information required to establish

1. _ objective Questions
yfultiple Choice Questions :
the requirements for final account of companies are specified in Schedul
) I b) ll c) Xl ™
The Schedule III prescribes vertical form of Balance Sheet in part.
) 4 b) 2 | c) 3
YRMS.—Financial Accounting (Sem.—V)

2. 172
3,
11.
13.
14.
15.
16.
17.
LY. BMS,
at AccountingTE EMI Bem
Financ!
abilities
The unpaid interest on loan is surrent jiabilities -
Tote c ntingent Hiab
d) 0 et is called ——
c) reserve jance 9 e
a) capital b)
c) contingent liabilities d)
Fixed deposit with bank is apart of
a) investment b)
c) fixed assets d)
Callsinarrearsistobe
a) shown as debtors b)
c) shown as investments d)
The liabilities of companies are divided _ needs.
a) 4 b) 5 ¢)
The assets of companies are divided in__ heads.
a) § b) 3 ¢)
A
Any amount payable within 12 months from date of B
oan
va
current jjabilities
bank balance
Joans & advances
reduced from share capital
ignored
d) 3
6
4
d) 6
The debit balance in Profit & Loss Account is to be aed from reserve
a) reduced from share capital b)
c) disclosed as miscellaneous expenditure 4)
Schedule II provides for __.
a) Depreciation b) capital c)
Dividend paid on share capital is to be .
a) shown as finance expenses b)
c) shown in Manufacturing Account d) :
Schedule III requires Profit & Ldss Account to be prepared in
a) horizontal form b)
c) convenient form d)
The extract of Balance Sheet format profile is specified in Part
a) 1 b) 2 c)
The uncalled amount in investment in shares is shown as
a) investment b)
¢) current liabilities d)
The transfer to reserve is
a) 10% b) 15% c)
redu
shown as 4 note to account
d) assets
loans
ations of profit
shown as appropri ‘al
“shown as reduction in capi
vertical form
lumnar form
o of Schedule III.
3 d 4
contingent liabilities
current assets
25%
voluntary d)
The interest accrued on investment appears in the Balance Sheet under the head :
a) - current assets
c) loans & advances
b)
d)
fixed assets
investments
In Balance Sheet, securities premium should be shown under
a) share capital
c) current liabilities
b)
d)
reserves & surplus
fixed assets
18. Which of the following items do not come under, reserves & surplus
19.
20.
21.
22.
a) capital redemption reserve
c) provident fund
b)
d)
Opening balance of Profit & Loss A/c was & 7,500,
Loss A/c was % 5000. Net income / net loss was
a) loss € 1,000 b)
c) net income F 1,000 d)
Retained earnings is the amount of
a) profit after tax less dividend b)
c) profit before depreciation d)
general reserve
sinking fund
dividend paid & 1,500 ending balance of Profité
net loss 2,000
net income & 6,500
profit before tax less dividend
profit afterdepreciation
Which of the following is not an example of fixed assets ?
a) plant & machinery b)
c) royalty d)
Unclaimed dividend is shown under
a) current liability b)
c) . provisions d)
buildings
patents
Secured loans
Teserves

3. p reparation of Final Accounts ofc
oy 0}
23.
Pa
Mpanies
wore 73
Balance Sheet ag 6
site Cita ON 31 gt Match, 2018
Profit & Loss Aco
Profit for the year
The company wants z 1,906 10
) to transfor fal
The balance in the Profit & | ‘ae to debenture redemption reserve and declare 10% dividend.
a) %2,07,610 b © “Appropriation Account s
9
@ 188,54
Ount (1.4.99 % 20,00,000
7) 2 67,000
Which of the following ; c) 28.610 . dy) 7 1,81,349
a) capital reserve tins ‘PPears on the assets side of Balance Sheet? has
c) sinking fund investment b) security premium
d) specific reserve
he called up equity capital of the company is % 3,00,000 calls in
n advance amounted to % $0,000. Divi ;
% 49,500 °) 000. Dividend payable is
Ravi Ltd. proposed a dividend of 15% T
arrears amounted to & 20,9 i
) ON by $000 and callsj
No dividend is payable by recommendation sree Di i AAO
The example of accounting policy is
a) consistency et b) goin
c) accrual ig conicern
The example of accountin d) depreciation
olicy j
a) realisation ns
c) maturity b) dual aspect
d : ;
As per AS-l, disclosure should b8 made of ) valuation of inventory
il : i.
H ‘i siesmine Principles b) all accounting policies
echeactn ie concepts d) all significant accounting policies
Me Tollowing is shown under Reserves & Surplus?. t
a) calls in advance b) calls in arrears
c) securities premium
|
his
d) bonus
Which is deducted from share capital to get paid up capital?
a) calls in arrears
b) calls in advance
c) bonus na d) reserves
Payment of dividend is based on :
a) paid up capital b) authorised capital
c) issued capital d) reserve capital
Unclaimed dividend is shown under
a) current liabilities aie ‘b) current assets
c) reserves and surplus d) _ none of the above
Final dividend can be declared bysabe
a) shareholders only b) _ directors only
c) stock exchange d) none of the above
Recommendation and declaration is necessary for yo
a) final dividend b) interim dividend
c) interest on debentures . d)_ none of the above
Following is not a fixed asset :
a) goodwill b) machinery
c) vehicles d) - loose tools
Following is an appropriation of profit :
a) interest on loan ; b) Interim Dividend
c) audit fees d) none of the above
Following is not a secured loans :
a) debentures _b) _ bank loans
c) public deposits d) none of the above
Following is not shown under provisions: 1 _
a) provision for taxation b) _ provision for dividend
c) provision for depreciation d) none of the above
Forfeited shares is :
a) added to paid up sharecapital
b) deducted from paid up capital

4. 174
40,
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
“$y,
52.
53.
54.
s'sr'or’
shown under reserves & surplus
none of the above
c)
d)
The company has 5% Government Securities havin
interest on Government Securities will be
a) %5,000 b) %4,750 ¢)
Arrears of preference dividend is a
a) contingent liability ys b)
c) fixed liability
d)
[pane
face yalue of 2 {,00,000 and cost % 95,000, The
g, fac
d) none of the above
9,750
current jiability
none of the above
Balance sheet of a company must be prepared in _—’
a) horizontal form only
b) vertical form only as pet Schedule Ill
c) either in Vertical or Horizontal form
d) either in Vertical or Horizontal form as per schedule VI
Profit and Loss Account of a company must be as pet _—_—"
a) part II of schedule III of Companies Act
b) Part I of schedule VI of Companies Act
c) vertical form only
d) horizontal form only
Repairs to building must be shown asa___
a) separate item on debit side of profit and loss Alc
b) separate item on credit side of profit and loss Alc
c) addition to other expenses on debit side of profit
d) none of the above
Remuneration to M.D. should be shown as 4 separat
a) Trading A/c b)
c) Profit and Loss appropriation Alc d)
Payment to auditor should be shown in .
a) Profit and Loss Alc b)
c) Statement of Profit and Loss d)
Unpaid call is :
a) added to issued capital and paid up capital
b) shown asa current liabilities
and loss A/c
e item on debit side of :
Profit and Loss Alc
None of the above
Trading A/c
None of the above
c) deducted from issued, subscribed and paid up capital
d) | added to authorised capital
Interest accrued but not due on Loans is shown under
a) current liabilities
b)
c) unsecured loans: d)
Interest accrued and due on loans is shown under
a) current liabilities
b)
c) unsecured loans d)
Unclaimed dividend is shown under
a) share capital
b)
c) provisions
d)
Live stock is shown under ;
a) current Assets
b)
c) investments
d)
Interest accrued on investment isshownunder
a) current assets
b)
c) investments
d)
secured loans
none of the above
secured loans
none of the above
current liabilities
unsecured loans
fixed Assets
current liabilities
current liabilities
loans and advances
Public deposits accepted by companies are shown under
a) loans and advances
b)
c) secured loans
d)
Bills Receivable is shown under
a) loans and advances
b)
c) current liabilities
d)
investments
unsecured loans
current assets
contingent liabilities _

5. {75
preparation of Final Accounts of Companies a ow oo
«5 pills payable is shown under
>" 4) current assets ;
¢) current liabilities h) Se - advances
m prepaid insurance is shown onder d) secured loans
a) currentassels , b) loans and advances
c) current liabilities 1) secured loans
M4 “i (i aec
s7. © - paren of building under construction is shown under
a) Miscellaneous expenditure b) Capital W.LP
0) prone and Loss A/c d) Share capital
<8. Preliminary Expense are shown under
a) Other Current Assets b) Capital W.LP.
c) Debit side of Profit and Loss A/c d) Loans and advances.
59. Uncalled amount on partly paid shares is shown under
a) anote to Balance Sheet b) investment
c) share capital d) provision
60. Arrears of preference dividend is shown as a
a) current liability -
b) Note to Balance sheet
c) deduction from preference share capital
d) addition to preference share capital
61. Unexecuted contracts on capital A/c is shown under
a) anote to Balance sheet as contingent liabilities
b) capital work in progress
c) share capital
d) current liabilities
62. Net Block of fixed assets is shown under ’
a) Horizontal Balance sheet b) . Vertical Balance sheet under Fixed Assets
c) Schedule of capital d) None of the above
63. NetBlockis
a) Current Assets — Current Liabilities b) Gross Block — Accumulated depreciation
c) Net Block + Depreciation accumulated d) None of the above
64. Unpaid dividend A/c is transferred to ;
a) Special Bank Account within 7 days from the expiry of 30 days from the date of declaration.
b) Special Bank Account within 30 days from the expiry of 7 days from the date of declaration
c) Investor education and protection fund within 7 days from the expiry of 30 days from the date of
declaration.
d) None of the above
65. Short term loan is the loan due for not more than
a) 2 years b) 1 year c) 5 years d) 3 years
66. Ina fixed asset schedule Gross Block Closing is equal to
a) Opening Gross Block purchases b) Opening WDV + purchases
c) Opening WDV + sales — purchases d) Closing WDV.+ depreciation
67. Inaschedule of fixed assets closing depreciation is equal to
a) opening depreciation + Depreciation provided during the year — depreciation on asset sold
b) opening depreciation + closing WDV
c) closing WDV + opening WDV
d) cost — depreciation .
68. When demand for tax is raised by the Income tax department
a) no entry is passed b) it is shown as a contingent liability
c) itis debited to profit and lossA/c d) it is debited to tax paid A/c
69. When demand for tax is raised and it is disputed by the company through an appeal it is ‘
a) shown asa current liability b) shown as a contingent liability
c) not entered in the books d) debited to profit and loss A/c
70. When the demand for tax is raised by the Income tax department and it is accepted b the company it is
P y pany
a) debited to Profit and loss A/c and credited to provision for tax A/c

6. 71,
72.
73.
74,
75.
76.
77,
78.
79.
80.
81.
82.
83.
85.
86.
87.
~~ a or
b) not entered in the books
c) shown as a contin ili
gent liability
d) debited to tax paid account
When the assessed tax is less than the provision made, it is :
a) debited to tax paid A/c and oredited to Profit and Loss A/°
b) not entered in the books
c) debited to provision for tax A/c and credited Profit and Loss A/c
d) none of the above
Dividend is calculated on
a) paid up capital b)
C) calls in arrears d)
Accounting policies are prescribed by.
a) Companies Act b)
c) Income tax Act 4)
called up capital
none of the above
AS |
Sales tax Act
The following is not shown under share capital of a company ‘
preference share capital
preference dividend
" Capital Reserve
Provision for Taxation
Board of directors
SEBI
Bills discounted
Arrears of preference dividend
provision for taxation
unclaimed dividend
Mortgage Debentures
None of the above
Bills Receivable
Preliminary expenses
Patents
Machinery
Provision for tax
Director's fees
a) calls in arrears b)
c) forfeited shares A/c d)
The following item is not shown as a Reserve
a) Securities premium b)
c) General Reserve d)
Interim dividend of a company can be declared by
a) Shareholders b)
c) MD d)
Following is not a contingent liability
a) Interim dividend b)
c) Liability under guarantee d)
Following item cannot be shown under provision
a) provision for bad'debts b)
c) provision for dividend d)
Following is not asecured loans
a) Naked Debentures b)
c) Mortgage Loans from Banks d)
Following is not shown under Current Asset, Loans and Advances
a) Closing Stock f b)
c) Bank balance Si. Pyrdpes
The following is not a fixed asset
a) Live stock b)
c) Loose Tools d)
The following is not recognised asa liability
a) Auditfees - b)
c) Proposed dividend d)
The following is a charge against income _—.
a) audit fees b)
¢) provision for dividend distribution tax d)
Advance tax is shown under
a) Current liabilities b)
c) Loans and Advances d)
The asset which is shown under fixed asset is :
a) Loose
b)
c) Stock
d)
The asset WICH: intangible is
a) Railway oad
>
c): Building " r )
Long term inves"
.
a) Fixed assets
y
provision for dividend
interim dividend
Provisions
Current Assets
Vehicles
Investment
Patents and copyrights
Vehicles
are shown in the company Balance sheet under
Investments
Miscellaneous Expenditure

7. po
yn?
88
69.
90:
gl.
02.
o4.
95.
96.
98.
99.
100.
101.
102.
103,
s compliant financig titi:
R evised Schedule ]]] is g ®ment
" g) Allthe companies | PMcabie ¢,
All the private Companig
8
pPE includes b)
a) Bearer plants
4)
c) Loose Tools 6
Mango trees are 5
a) Bearer plants
;) Agricultural plants b)
prands or Trade marks
are di d
a) Other Intangible assets Scloseq Under !
AS per Ind AS animals are g
a) Live stock hown Under )
¢) Investments
°) Section 320
oe
N
An AS compliant
Companiag
the Coys, Companies
Stock of Goodg
Live stock
Biologicas Assets
quipments
Intangible assets
Investments
b) Biological
Bank deposits with more than | Months man: Note ofthe stg
a) Other financial assets maturity are isclosed under
c) Loans
Nvestments
Redeemable Preference Share canitay:. .. d) Advances
a) Equity *Pital isdiscloseg under
c) loans
b) Borrowings
Share option outstanding is shown under Other equity
a) Equity b
c) Borrowings ) Other equity
bit balance on statement of lose ic ch) __-nvestment
De . Profit & loss is shownunder
a) Other equity BR
c) Current Assets 4) Mision & Surplus
.. Prior period tax Expense A/c 6 transferred to €llaneous expenditure
a) Tex Payable, Refund Ale b) Provision for Tax Alc:
c) Advance Tax A/c . “8 che of the above
Balance on Income tax (Payable /Refund) A/c is transferred to
a) Tax Payable A/c b) Refund Receivable A/c
c) Tax Payable or Refund Receivable d) None of the above
As per AS 26 preliminary expenses should be written. off
a) In the year in which it is incurred b). In five years
c) In ten years - d) None
Depreciation is provided as per the provision of
a) Schedule III b) Schedule II
c) Schedule VI d) Schedule IX
a idb
ee may be paid by biter
a). acheque : d) any one of the above
¢) an electronic mode a air
As per Revised AS 4, proposed TE €
a) Debited to Profit & Loss Appropriation A/c .
b) Recognised as a liability
¢) Shown as a ‘Note’ to Balance sheet *
d) None of the above interim dividend as per
interim
A Company is empowered to declare and pay b) Section 189
a) Section 123 d) Section 2
°) Section 350 seme i
Managerial remuneration is governe sale p): , Becton ef
4) Section 197 dy ‘Section >"

8. 178
105.
106.
107.
108.
109.
110.
111.
112.
Premium on Shares is
a) added to profit for calculation of Net profit
b) excluded from profit for calculation of Net profit
c) ignored totally
d) none of the above ‘ ion as per section
Depreciation to be deducted from profit for deciding managerial rensuners® ,
a) 123 b) 37]
c) 441 c) 315
Maximum remuneration to a managing director in case of profit 1s
a) 7 x b)i (578
c) 10% d) 11%
In case of profit overall managerial remuneration shall not exceed.
a) 12.5% b) 11%
c) 15% d) 5%
In case of loss maximum remuneration is ¥ 60 lakhs in case effective capital is less than
a) 5crores b) 1 crores
c) 25 crores d) 50crores.
If effective capital is more than 100 crores in case of loss, the maximum remuneration will be
a) %1,50,000 b) % 120 lakhs
c) %2,50,000 d) %4,50,000
In the event of profit remuneration to M.D. shall be maximum
a) 3% of net profit b) 7.5 of net profit
c) 5% of net profit d) 10% of net profit
In the event of profit remuneration to part time director, when there is no MD, is maximum
a) 5% of net profit .b) 3% of net profit
c) 9% of net profit a d) 11% of net profit
(Ams. (1 —b), (2-4), (3 —a), (4 - d), (5 — b), (6 — b), (7 — c), (8 —c), (9 —c), (10 —a),(11 —b), (12-bb
(13 — a), (14 — b), (15 —c), (16 — a), (17 — b), (18 —c), (19 — a), (20 —a), (21 — c), (22 - a), (23 -%
(24 - ¢), (25 ~ a), (26 ~ d), (27 - d), (28 - d), (29 ~ ¢), (30 ~a), (31 — a), (32 — a), (33 — a), 4-H
(35 — d), (36 — b), (37 — ¢), (38 - c), (39 — a), (40 — a), (41 — a), (42 — b), (43 — a), (44 - a), (45 -b
(46 - c), (47 - c), (48 — a), (49 — b), (50 - b), (51 - b), (52 — a), (53 — d), (54 — b), (55 - oll
(57 — b), (58 — a), (59 ~ a), (60 ~ b), (61 ~ a), (62 - b), (63 — b), (64 — a), (65 —b), (66 - al
(68 — a), (69 — b), (70 — a), (71 ~ c), (72 — a), (73 ~ b), (74 — d), (75 — d), (76 — b), (77 -a), (18-4
(79 - a), (80 - d), (81 — ©), (82 ~¢), (83 — a), (84 — c), (85 — b), (86 — b), (87 — b), (88 —b) "(a9-4)
Ao ers Dara : ate ee ibe (95 ~ b), (96 ~ a), (97 — a), (98 — c), (99 — a) (100 -b
—°), — 0); — a), — a), —b _ : ? — 4a);
(111 —c), (112-b)] )» (106 — a), (107
— b), (108
— by,(109 — a), (110-9)

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{0. EAEKUISES oe A thy i
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{0.1 Objective Questions .
Multiple Choice Questions .
Conversion of Currency ig COVered in "
a) 9
ve
)
5
The exchange diffe
| g Tence on Settlement of liability Specially for purchase of fixed asset is transferred
a) asset
! “eth :
s .
,
b
> depen
Lac ) exchange difference
; i
d) profit & loss
The balance in receivable as on the date of balance sheet is converted at rate
a) on the date of sale g00ds b) — on the date of balance sheet
c) on the date of subsequent recovery ~" d)_—s on the date of first recovery
The amount payable for balance sheet is converted at
a)- on date of purchase “i Gia b) — on date first payment
¢) on date of Subsequent payment - d) on date of balance sheet
purchase on the date of

12. 282
1.
12.
13.
14.
17.
18.
19.
Financial Accounting (T.Y.B. M. 8) 4
a's’ Men
The depreciation on fixed assets is converted at rate ie! :
a) on date of balance sheet b) average Mee aves
c) date of purchase d) reopening “
The interest of loan is ¢ date i
5) afitan betiewed converted at rate on the oF acerual of interest
c) of payment d) of balance Sa te on date of
The interest accrued on loan as on date of balance sheet is converted at ra ete:
a) of payment b) _ of balance sheet
c) of loan borrowed d) average of aaa ra to
The balance in exchange difference on transaction of export sale is transi ae
a) sales account b) debtors account
c) profit & loss account d) trading toad dto
The exchange difference arising due to import of raw material istransferredto
a) purchase b) trading
c) profit & loss account d) — suppliers
The currency of the enterprise preparing account is called
a) foreign currency b) home currency
c) reporting currenc d) own currency
On tst January, 200% XYZ Ltd. Invoiced goods to its usa client for $ 10.000 payment was Teceiy td
Ist March, 2008.
the exchange rate was :
Ist January 2008 : $ 1 = % 39, Ist march, 2008 : $ 1 =% 40
the amount of difference in exchange transferred to profit & loss account is__.
a) %20,000 b) 710,000
c) 15,000 d) %25,000
H ltd. Purchased
a plant on Ist January, 2008 but has not been paid for by 31st March, 2008; the date y
closing the books. The cost of the plant was $ 1,00,000.
y
the exchange rates were :
Ist january, 2008 : $ 1 =% 39. 31st march, 2008 : $ 1 =< 40.
the exchange difference is
a) %1,00,000 b) %50,000
c) %1,50,000 d) %2,00,000
A long-term loan was obtained from Z Ltd % 20,00,000 which was recorded at $ 1 = 36.20, the tea
the date of the transaction. The exchange rate on the balance sheet date was $ 1 = 37.40 . The loss
to exchange difference is ;
a) % 66,312 b) %66,000
c) %65,000 d) %85,000
Following is not a monetary item :
a) bills receivable b) cash
c) inventory d) bills payable
An exchange rate on the date of balance sheet is known as tee
a) average rate b) closing rate
c) non-monetary rate d) monetary rate
Non-monetary items are valued at_
a) market price b) current price
c) historical cost d) fluctuating price
Reporting currency is the currency usedin
a) settling financial transactions b) _ presenting financial statements
c) recording financial transactions d) none of the above
Foreign currency isacurrency_,
a) used in recording foreign transactions b) _ in presenting foreign financial statements
c) other than the reporting currency d) none of the above
Average rate isthe rate
a) on the balance sheet date b) is the mean of the exchange rates
c) isthe proportion between two currencies d) _is rate at which asset could be exchanged

13. ing O, Tr .
eo g of Transactions of Fop
ign Cu rrenc
y
n
2.
23.
5.
26.
27.
28.
29,
c) balance sheet 4) (5-o)
( b), (4 a), ( .
(13 — a), (14 - oe 3, a1-* (28 -a) 2
3 _ b), (18=
~ pp, (16-9) (A) e*by
enting :
to transaction.
exchange rate is the
a) rate at the bal a
“lt
! nee
c) proportion betwentae date
wae
283
Following is not an 0 currenc; b)
'
e
Nie
me
a) cash Xample of a thon viernes) rate eae exchange rates
c) receivables
re ia which asset is exchanged
Following is an ex | b) payable
ample
a) debtors Re obe non-monetary oD fixed assets
c) bank a/c
by lane
The mean of th
creditors
,) avera : i exchange rates in force duri d) stock
8 rate ! uring a period is known as ~
c) ae rate (b) closingrate
Reporting currency is the currency used f d) — none of the above
a) presenting financial statements Of! lis
c) setting the financial transactions : recording financial transactions
Non-monetary items are the items _ ) none of the above
a) other than assets and liabilities
b) assets and liability as other than monetary items
c) exchanged at fair value
d) none of the above
Monetary items are the assets and liabilities :
a) tobe received or paid in money
b) tobe received in fixed or determinable amount of money
c) tobe received or paid in fixed amount
As applicable for translation of foreign currency IS ee cco
a) as ll
. b).. 3 5
c) as 14
sad . e
ifference is recorded in ___—"
me wae tot ae ei tion a/c
general reserve alc
a) foreign ee uctua
one of the above ai
b) profit and loss a/¢
fy fluctuation alc is transfe to a
fore! exchange fluc
iy
At the end of the year the balance ee ) profit and loss a/¢
a) general reserve a/¢
: d) none of the above
g
; 7b), (8-* g-¢), (10-o) (t _b), (12-4)
1g b 20-9 Oh 4), 22-4 23
in final account.
atau item should be _—