Shilpa

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Profitability statement

interpretation Indicates the amount of profit earned

Indicates the amount of profit earned

True/False Question

Balance sheet is considered to be a part of the financial statements. Correct Answer True Your Answer

True

Multiple Choice Multiple Answer Question Select the appropriate rectification entries for the following transactions (i) Rs.200/- received in respect of a bad debt previously written off was credited to Debtors account. (ii) Paid Rs.6,000/- to a Mr. Rao, clerk, as salary in lieu of notice. This amount was debited to his personal account (iii) Interest @ 5% p.a. on a loan of Rs.5,000/- was debited to general expenses account. Correct Answer Debtors A/c ..........Dr. Rs.200/- to bad debts recovered A/c Rs.200/- , Rs.6,000/- to Rao's A/c Rs.6,000/- , Rs.250/- to General Expenses A/c Rs.250/Your Answer Debtors A/c ..........Dr. Rs.200/- to bad debts recovered A/c Rs.200/- , Profit and Loss A/c .......... Dr. Rs.5000/- , Rs.250/- to General Expenses A/c Rs.250/Select The Blank Question The most appropriate method for apportionment of overheads of the purchasing and stores department is percentage on ________. Correct Answer Direct Material Your Answer

Direct Material

Select The Blank Question Under Differential Time Rate method payment is made at Rs. 1.40 per hour when the level of efficiency is between________. Correct Answer 90% to 100% Your Answer

80% to 100%

Multiple Choice Multiple Answer Question Select the transactions which can be entered in the Journal proper :Correct Answer Opening entries , Closing entries , Rectification entries Your Answer True/False Question

Opening entries , Closing entries , Average entries

Trading account is an important account which will be used to analyze how successful and how efficiently the firm runs its