Real accounts are related to assets of a firm and not

What type of account is Vikas and Co. account?

Which of the following accounts will have a credit balance?

Abnormal loss on consignment is credited to

What type of account is a joint venture account?

Sale of scrap of raw materials appearing in the trial balance are shown on the credit side of

The cash discount allowed to a debtor should be credited to

During the life time of an entity, accountants prepare financial statements at arbitrary points of time as per

Profit leads to increase in

Depreciation arises because of

On March 31, 2006 Amit purchased a typewriter from Arvind for Rs. 8,000. This is

The equality of debits and credits of the ________ does not mean that the individual accounts are also accurate.

Change in the method of depreciation is change in

Prepaid salary has a

Which of the following errors is an error of omission?

A promissory note does not require

Goodwill is

Credit balance in the cash book means

________ days of grace are allowed in case of time bills for calculating date of maturity.

When money is withdrawn from the bank, the bank ________ the account of the customer.

Huge Ltd. issued 25,000 equity shares of Rs. 100 each at a premium of Rs. 15 each payable as Rs. 25 on application, Rs.40 on allotment and balance in the first call. The applications were received for 75,000 equity shares but the company issued to them only 25,000 shares. Excess money was refunded to them after adjustment for further calls. Last call on 500 shares were not received and were forfeited after due notice. The above is the case of

A machine purchased on 1^st January 2003 at Rs. 15,00,000, having useful life of 15 years was depreciated on straight line basis. On 1^st January 2006, the same machine was revalued upward by Rs. 3 lacs. The amount of depreciation for the year 2006 will be

Atul purchased goods costing Rs. 50,000 at an invoice price, which is 50% above cost. On invoice price he enjoyed 15% trade discount and Rs. 3,750 cash discount on cash payment of goods in lump sum at the time of purchase. The purchase price to be recorded in the books before cash discount will be

At the end of the accounting year, material A costing Rs. 10,000 was having net realisable value of Rs. 9,500 only, while material B costing Rs. 12,000 was having a net realisable value of Rs. 13,000 in the market and material C costing Rs. 15,000 was having net realisable value of Rs. 14,000 only. The total amount of closing stock will be

A, B and C are partners in the firm sharing profits and loss in 5 : 3 : 2 ratio. The firm's balance sheet as on 31.3.2006 shows the reserve balance of Rs. 25,000, profit of the last year Rs. 50,000, Joint Life policy of Rs.10,00,000, fixed assets of Rs. 12,00,000. On 1^st June, C died and on the same date assets were revalued. The executor of the deceased partner will get along with the capital of C

A cheque of Rs. 35,000 received by M/s Nandini was endorsed to M/s Chandini on account of full settlement of Rs. 35,500 on 1^st October 2006. Chandini deposited the same into the bank on 4^th October 2006. In the books of M/s Chandini, the amount to be debited on 1^st October 2006 will be

An amount of Rs. 6,000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered, and had been posted to the personal account of Anshul. The rectification entry will be

There was difference in the bank column of cash book and pass book by Rs. 2,500. On scrutiny it was found that interest of Rs. 500 charged directly by the bank was not entered in the cash book. The same was adjusted in the cashbook before reconciliation statement. Now, in the bank reconciliation statement, this interest of Rs. 500 is to be

Ajay bought goods of the value of Rs. 20,000 and consigned them to Bijay to be sold by them on a joint venture, profits being divided equally. Ajay draws a bill on Bijay for an amount equivalent to 80% of cost on consignment. The amount of bill will be

Opening stock of raw material of a manufacturing concern is Rs. 10,000. Purchase during the year is Rs 2, 00,000, wages Rs. 50,000, carriage Rs. 5,000, factory overheads Rs. 1, 25,000 and closing stock of raw material is Rs. 15,000. Amount to be transferred is

1,000 kg of oranges are consigned to a wholesaler, the cost being Rs. 8 per kg, plus Rs. 925 of freight. It is concluded that a loss of 15% is unavoidable. The cost per kg of orange will be

Mr. A consigned goods costing Rs. 2,50,000 to Mr. B at an invoice price of Rs. 3,00,000. The goods were to be sold at invoice price or above. Mr. B sold some of the goods at invoice price of Rs. 2,00,000 and some at 10% above cost i.e. Rs. 1,10,000. For this he gets 5% commission. The amount of commission is

If repair cost of a building is Rs. 15,000, whitewash expenses are Rs. 10,000, cost of extension of building is Rs. 5,00,000 and cost of improvement in electrical wiring system is Rs. 25,000. The amount to be expensed is

A machine purchased on 1.4.2003 for Rs. 10,00,000 was depreciated on straight line basis over its useful life of 10 years. On 1.4.2005, it was found that machine is in a good condition and will be used in the production for another 10 years. The amount of depreciation for the year ending 31.3.2006 will be

X of Kolkata sends out goods costing 100,000 to Y of Mumbai at cost + 25%. Consignor's expenses Rs. 2000. 3/5^th of the goods were sold by consignee at 85000. Commission 2% on sales + 20% of gross sales less all commission exceeds invoice value. Amount of commission will be

Mr. Aakash draws a bill on Mr. Yash for Rs. 30,000 on 1.1.06 for 3 months. On 4.2.06. Mr. Aakash got the bill discounted at 12%. The amount of discount will be

Anuj bought goods of the value of Rs. 10,000 and consigned them to Bittu to be sold by them on a joint venture, profits being divided equally, Anuj paid Rs. 1,000 for freight and insurance. Anuj draws a bill on Bittu for Rs. 10,000. Anuj got it discounted at Rs. 9,500. Bittu sold the goods for Rs. 15,000. Commission payable to Bittu is Rs. 500. The amount to be remitted by Biitu to Anuj will be

On 1.12.05 X draws a bill on Y “for 30 days after sight”. The date of acceptance is 8.12.05. The due date of the bill will be

On 1.6.05 X draws a bill on Y for Rs. 25,000. At maturity, Y requests X to accept Rs. 5,000 in cash and noting charges incurred Rs. 100 and for the balance, X draws a bill on Y for 2 months at 12% p.a. Interest amount will be

Prakash Ltd. issued 15,000, 15% debentures of Rs. 100 each at a premium of 10%, which are redeemable after 10 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year is

R sends out goods costing Rs. 2,00,000 to K. Consignor's expenses Rs. 5,000. Consignee's expenses in relation to sales Rs. 2,000. 4/5th of the goods were sold at 20% above cost. The profit on consignment will be

Ansh and Vansh enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. Ansh provides biscuits from stock amounting to Rs. 10,000. He pays expenses amounting to Rs. 1,000. Vansh incurs further expenses on carriage Rs. 1,000. He receives cash for sales Rs. 15,000. He also takes over goods to the value of Rs. 2,000. Profit on venture will be

Varun Ltd. sends goods to his customers on sale or return recording it as a sale at the time of sending it for approval. During 2006, Varun Ltd. send goods to customers for Rs. 1,00,000 on sale or return basis, at cost plus 33.33%. On September 2006. a letter of approval was received from a customer for Rs. 40,000. In this respect, entry will be

The profits of last three years are Rs. 42,000, Rs. 39,000 and Rs. 45,000. Capital employed is Rs. 4,00,000 and normal rate of return is 10%. The amount of goodwill calculated on the basis of super profit method for three years of purchase will be

Tista Ltd. has issued 14% debentures of Rs. 10,00,000 at a discount of 10% on April 01, 2004 and the company pays interest half-yearly on June 30, and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not paid” in the balance sheet will be

X and Y share profits and losses in the ratio of 2 : 1. They take Z as a partner and the new profit sharing ratio becomes 3 : 2 : 1. Z brings Rs. 4,500 as premium for goodwill. The full value of goodwill will be

Anny and Bunny enter into a joint venture sharing profit and losses in the ratio 1 : 1. Anny purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be

Hum and Tum are partners sharing profits and losses in the ratio 5 : 3. On admission, Woh brings Rs. 70,000 cash and Rs. 48,000 against goodwill. New profit sharing ratio between Hum, Tum and Woh are 7 : 5 : 4. The sacrificing ratio between Hum : Tum will be

A, B and C are equal partners. They wanted to change the profit sharing ratio into 4 : 3 : 2. They raised the goodwill Rs. 90,000 but they want to immediately write it off. The effected accounts will be

Mr. Big who was the holder of 200 equity shares of Rs. 100 each on which Rs. 75 per share has been called up could not pay his dues on allotment and first call each at Rs. 25 per share. The Directors forfeited the above shares and reissued 150 of such shares to Mr. Small at Rs. 65 per share paid-up as Rs. 75 per share. The amount to be transferred to capital reserve account will be

Anju Ltd. forfeited 300 equity shares of Rs. 10 each fully called-up, held by Manju for non-payment of final call @ Rs. 4 each. However, she paid application money @ Rs. 2 per share and allotment money @ Rs. 4 per share. These shares were originally issued at par. The amount to be credited to share forfeiture account will be

A company issued 15,000, 9% preference shares of Rs. 100 each at 5% discount and 2,00,000 equity shares of Rs. 10 each at 10% premium. Full amount was received from the applicants in one instalment. The net balance of securities premium account will be

A company offers to the public 10,000 shares for subscription. The company receives application for 12,000 shares. If the shares are allotted on pro-rata basis, then applicants for 12,000 shares are to be allotted as

Raj, Jai and Hari are the partners sharing profits in the ratio 7 : 5 : 4. Hari died on 30^th June 2006 and profits for the accounting year 2005-2006 were Rs.24,000. How much share in profits for the period 1^st April 2006 to 30^th June 2006 will be credited to Hari's account.

G Ltd. purchased land and building from H Ltd. for a book value of Rs. 2,00,000. The consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of 20%. The debentures account is credited with

Koina Ltd. issued 15,00,000, 12% debentures of Rs. 50 each at premium of 10% payablae as Rs. 20 on application and balance on allotment. Debentures are redeemable at par after 6 years. All the money due on allotment was called up and received. The amount of premium will be

10,000 equity shares of Rs. 10 each were issued to public at a premium of Rs. 2 per share. Applications were received for 12,000 shares. Amount of securities premium account will be

Rich Ltd. had 3,000, 12% redeemable preference shares of Rs. 100 each, fully paid up. The company issued 25,000 equity shares of Rs. 10 each at par and 1,000 14% debentures of Rs. 100 each. All amounts were received in full. The payment was made in full. The amount to be transferred to Capital Redemption Reserve Account is

The Board of Directors of a company decides to issue minimum number of equity shares of Rs. 10 each at 10% discount to redeem Rs. 5,00,000 preference shares. The maximum amount of divisible profits available for redemption is Rs. 3,00,000. The number of shares to be issued by the company will be

Win Ltd. issued 20,000, 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 debentures to be written off every year will be