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1. Select the correct equation:

Owners Equity = Assets + Liabilities Owners Equity + Outside Liabilities = Total Assets Assets + Owner Equity = Outside Liabilities Outside Equity + Profit Total Assets

2. Cash In Hand A/c may have:

Only debit balance Only credit balance Debt or Credit balance All of the above

3. Fundamental accounting assumptions are:

going concern, consistency and accrual. going concern, money measurement and prudence. going concern, business entity and accounting period. going concern, matching and consistency.

4. Choose the correct statement:

Errors of principle do not affect agreement of trial balance. Compensating errors affect trial balance. One side error does not affect trial balance. Error of casting is an error of principle.

5. Calculate sales from the following details:

Opening Stock ₹4,000

Cost of Goods sold ₹30,000

Closing Stock ₹2,000

Direct Expenses ₹5,000

Gross Profit ₹1,500

₹28,000 ₹31,500 ₹32,000 ₹33,000

6. Mr. P issued Cheques worth 15,000 in March, 2024, out of which 10,000 only were presented for payment by 31st March, 2024. While reconciling bank and cash book balance as on 31st March, 2024, how much would be added to balance as per Cash Book to arrive at balance as per Pass Book?

₹15,000 ₹10,000 ₹5,000 ₹7,500

7. A second hand car purchased for ₹2,00,000 (excluding initial repair cost of ₹50,000) is sold for ₹1,00,000 after 2 years. If depreciation is charged at the rate 20% on WDV, profit or loss on sale of car is:

Profit ₹28,000 Profit ₹60,000 Loss ₹60,000 Loss ₹28,000

8. X drew a bill of exchange on Y for ₹20,000 payable after 3 months. On the due date, Y could not make the payment and requested to renew a fresh bill for another 3 months at 12% interest. The amount of fresh bill would be:

₹20,600 ₹22,400 ₹21,200 ₹20,300

9. Choose the odd one:

Premium method Revaluation method Without raising goodwill account Revaluation of unrecorded asset

10. Operating lease is a:

Revocable Contract Non-Revocable Contract Operating Contract None of the above

11. State which of the following statement is false:

Salvage of stock means stock saved during accident. Unusual items and defective items are separate under insurance claim. Defective items means goods which cannot fetch the usual rate of gross profit. Average clause is applicable in case of under insurance.

12. A, B, and C are three Partners sharing profits and losses in the ratio of 3:2:1. B retires from the firm. What is the gaining ratio of the remaining partners?

3:1 1:2 2:1 1:3

13. Goods are transferred from Department X to department Y at a price so as to include a profit of 33.33% on cost. If the value of closing stock of department Y is ₹18,000, then the amount of stock reserve on closing stock will be:

₹6,000 ₹4,500 ₹9,000 None of the above

14. Income statement of a Charitable Institution is known as:

Profit and Loss Account Receipts & Payments Account Income & Expenditure A/c Statements of Affairs

15. Contingent Liabilities would appear:

on the Liabilities Side. on the Assets Side. as a note to Balance Sheet. None of the above

June 24 Financial Accounting Paper