1) Incomplete records are generally maintained by a) A company b) Government c) Small sized sole trader business d) Multinational enterprises 2) Statement of affairs is a a) Statement of income and expenditure b) Statement of assets and liabilities c) Summary of cash transactions d) Summary of credit transactions 3) Opening statement of affairs is usually prepared to find out the a) Capital in the beginning of the year b) Capital at the end of the year c) Profit made during the year d) Loss occurred during the year 4) The excess of assets over liabilities is a) Loss b) Cash c) Capital d) Profit 5) Which of the following items relating to bills payable is transferred to total creditors account? a) Opening balance of bills payable b) Closing balance of bills payable c) Bills payable accepted during the year d) Cash paid for bills payable 6) The amount of credit sales can be computed from a) Total debtors account b) Total creditors account c) Bills receivable account d) Bills payable account 7) Which one of the following statements is not true in relation to incomplete records? a) Tax authorities do not accept b) It is an unscientific method of recording transactions c) Records are maintained only for cash and personal accounts d) It is suitable for all types of organisations 8) What is the amount of capital of the proprietor, if his assets are Rs. 85,000 and liabilities are Rs 21,000? a) Rs. 85000 b) Rs. 106000 c) Rs 1,06,000 d) Rs. 64000 9) When capital in the beginning is Rs 10,000, drawings during the year is Rs 6,000, profit made during the year is Rs 2,000 and the additional capital introduced is Rs 3,000, find out the amount of capital at the end. a) Rs 9000 b) Rs. 11000 c) Rs. 21000 d) Rs. 3000 10) Opening balance of debtors: Rs 30,000, cash received: Rs 1,00,000, credit sales: Rs 90,000; closing balance of debtors is a) Rs 30000 b) Rs 130000 c) Rs. 40000 d) Rs. 20000 11) Receipts and payments account is a a) Nominal A/c b) Real A/c c) Personal A/c d) Representative personal account 12) Receipts and payments account records receipts and payments of a) Revenue nature only b) Capital nature only c) Both revenue and capital nature d) None of the above 13) Balance of receipts and payments account indicates the a) Cash and bank balance as on the date b) Loss incurred during the period c) Excess of income over expenditure of the period d) Total cash payments during the period 14) Income and expenditure account is a a) Nominal A/c b) Real A/c c) Personal A/c d) Representative personal account 15) Income and Expenditure Account is prepared to find out a) Profit or loss b) Cash and bank balance c) Surplus or deficit d) Financial position 16) Which of the following should not be recorded in the income and expenditure account? a) Sale of old news papers b) Loss on sale of asset c) Honorarium paid to the secretary d) Sale proceeds of furniture 17) Subscription due but not received for the current year is a) An asset b) A liability c) An expense d) An item to be ignored 18) Legacy is a a) Revenue expenditure b) Capital expenditure c) Revenue receipt d) Capital receipt 19) Donations received for a specific purpose is a) Revenue receipt b) Capital receipt c) Revenue expenditure d) Capital expenditure 20) There are 500 members in a club each paying Rs 100 as annual subscription. Subscription due but not received for the current year is Rs 200; Subscription received in advance is Rs 300. Find out the amount of subscription to be shown in the income and expenditure account. a) Rs 50000 b) Rs. 50200 c) Rs. 49900 d) Rs. 49,800 21) In the absence of a partnership deed, profits of the firm will be shared by the partners in a) Equal ratio b) Capital ratio c) Both Equal and Capital ratio d) None of these 22) In the absence of an agreement among the partners, interest on capital is a) Not allowed b) Allowed at bank rate c) Allowed @ 5% per annum d) Allowed @ 6% per annum 23) As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is a) 8% per annum b) 6% per annum c) 12% per annum d) 5% per annum 24) Which of the following is shown in Profit and loss appropriation account? a) Office expenses b) Salary of staff c) Partners’ salary d) Interest on bank loan 25) When fixed capital method is adopted by a partnership firm, which of the following items will appear in capital account? a) Additional capital introduced b) Share of profit c) Interest on capital d) Interest on drawings 26) When a partner withdraws regularly a fixed sum of money at the middle of every month, period for which interest is to be calculated on the drawings on an average is  a) 5.5 moths b) 6.5 months c) 6 months d) 12 months 27) Which of the following is the incorrect pair? a) Share of profit – Credited to capital account b) Interest on drawings – Debited to capital account c) Interest on capital – Credited to capital account d) Interest on loan – Debited to capital account 28) In the absence of an agreement, partners are entitled to a) Salary b) Commission c) Interest on loan d) Interest on capital 29) Pick the odd one out a) Interest on loan from partners is allowed at 6% per annum. b) Partners share profits and losses equally c) Interest on partners’ capital is allowed at 7% per annum d) No salary or remuneration is allowed to partners 30) Profit after interest on drawings, interest on capital and remuneration is Rs 10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission.  a) Rs. 50 b) Rs. 150 c) Rs. 550 d) Rs. 500

+2 Acc I Midterm

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