mgt101 current quiz lec 14 to 22

Which one of the following is NOT true about Capital Expenditure?

Select correct option

They create future benefits

They are incurred to acquire fixed assets

 They improve the financial position of the business

They reduce the profit of the concern

If Purchase price of machine = Rs. 400,000 Loss on disposal = Rs. 15,000 Residual value = Rs. 20,000 Useful life of machine = 5 years Find Sale price at the time of disposal =?

Select correct option

Rs. 15,000

Rs. 10,000

Rs. 20,000

Rs. 5,000

2

Which of the following is NOT a characteristic of Fixed Asset?

Select correct option

 Of long life

To be used in the business

 to generate revenue Easily

Convertible into Cash Not bought for the purpose of resale

When asset is sold, any profit or loss is computed by comparing the _______________with the amount received from sale.

When asset is sold, any profit or loss is computed by comparing the _______________with the amount received from sale.

Select correct option

Book value

Residual value

Purchased value

 Salvage value

Which of the following is NOT a cause of disagreement between cash book and pass book?

Select correct option

Unpresented Cheques

Un-Credited Cheques

Direct Receipts

None of the above

Which of the following Organization converts raw material into finished goods?

Select correct option

 Trading concern

Manufacturing concern

Merchandising concern

service concern

Bank Reconciliation Statement is prepared by:

Select correct option

Bankers

Accountant of the business

 Statutory auditor

Manager

A sum of Rs. 50,000 was paid for customs duty and freight on machinery purchased from Japan. It is classified as:

Select correct option

Capital expenditure

Revenue expenditure

Deferred revenue expenditure

Capital receipt

Which of the following would be considered as revenue receipt?

Select correct option

Amount received from sale of share

Amount received from a debtor whose account was previously written off as bad

 Amount received on sale of a portion of plant and machinery

 Amount contributed by the proprietor in his business

Cost of goods sold + ending finished goods – opening finished goods=?

Cost of goods sold + ending finished goods – opening finished goods=?

Select correct option

Total factory cost

Cost of goods manufactured

 Prime cost

 Conversion cost

Supervisor's salary and equipment repair cost are examples of:

Factory overhead cost

Direct material cost

Direct labor cos

Finished goods cost

 

Which of the following is a revenue expenditure?

Oil to lubricate machines

Addition or extension of assets

Wages paid for the construction of building

Legal expenses on raising loans for the purchase of fixed assets

If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000

Rs.75, 000

Rs.40, 000

Rs.55, 000

Rs.100, 000

The entry for Revaluation of an asset, in case of gain on revaluation will be:

Debit: Revaluation Reserve A/c Credit: Cost of Asset A/c

Debit: Revaluation Reserve A/c Credit: Accumulated Depreciation A/c

Debit: Cost of Asset A/c Credit: Revaluation Reserve A/c

Debit: Profit & Loss A/c Credit: Cost of Asset A/c

Which of the following assets are shown at written down value in balance sheet?

Current assets

Liquid assets

Floating assets

Fixed assets

Particulars Rs. Opening written down value of machine 4,10,000 Cost of machine purchased during the year 50,000 Depreciation during the year 20,000

Rs. 4, 40,000

Rs. 4, 30,000

Rs. 4, 80,000

Rs. 70,000

Money spent to acquire or upgrade physical assets is known as:

Revenue Expense

Capital Expense

Administrative Expense

Operating Expense

Fall in the market value of an asset

Fall in the value of money

Physical wear and tear

All of the given options

 

Expenses incurred for Salaries, heating and lighting are the examples of:

Preliminary Expense

Deferred Expense

Revenue Expense

Capital Expense

·         

When the company deposit the cash in her bank account then what is the nature of the deposited amount:

It is the liability of the bank

It is the asset of the bank

It is the equity of the bank

The cost of an incomplete asset at the end of year in balance sheet is transferred to:

Capital account

Capital work in progress account

Particulars Rs. Opening written down value of machine 3,75,000 Cost of machine 50,000 Depreciation during the year 11,500 Closing written down value (WDV) of the Machines ?

Select correct option

Rs. 4,13,5000

Rs. 4, 25,000

Rs. 3, 36,500

Rs. 61,500

Total depreciation of an asset can not exceed its:

Select correct option

Scrap value

Residual value

 Market value

Depreciable value

Particulars Rs. Opening written down value of machine 3,50,000 Cost of machine purchased during the year 40,000 Depreciation during the year 13,000 Closing written down value (WDV) of the Machines

Select correct option

Rs. 3, 77,000

 Rs. 3, 90,000

Rs. 4, 12,000

Rs. 63,000

When a fixed asset in progress is completed, all costs are transferred to:

Select correct option

Profit & Loss A/c

Statement of owner’s equity

Relevant asset A/c

 Profit & loss appropriation A/c

Which of the following is NOT a revenue expenditure?

select correct option

Petrol consumed in motor vehicles

 Cost of saleable goods

Bad debts

Installation charges of machinery

In cost of goods sold statement, the ‘cost of material consumed’ is equal to:

Select correct option

Opening raw material inventory + Purchases – Ending raw material inventory

 Opening raw material inventory - Purchases + Ending raw material inventory

 Ending raw material inventory + Opening raw material inventory - Purchases Ending

raw material inventory + Opening raw material inventory + Purchases

Which of the following item needs to be entered in the Cash Book in order to bring it in line with the entries on the Bank Statement

Select correct option

A bank charges

 An error on the Bank Statement

 An uncredited deposit

An unpresented cheque

The differences between the balance of bank book statement and cash book is removed by making an adjusting entry through:

Select correct option

cash voucher

bank voucher

journal voucher

 sales voucher

Which of the following assets is most likely to appreciate rather than depreciate?

Which of the following assets is most likely to appreciate rather than depreciate?

Select correct option

Land Motor vehicles

Plant and machinery

Fixtures and fittings

All of the below items are directly recorded by bank without intimating the business until the end of month, EXCEPT:

on Overdraft

bank chrges

_______ is the basic part of an item, which is processed to make a complete item:

Factory overhead

Raw material

Finished goods

work inproress

From the given particulars, calculate the rate of depreciation under the fixed installment method of depreciation:

Cost of Asset = Rs. 2,000 Residual Value = Rs. 400 Useful Life = 4 years

20%

30%

25%

33%

As asset has a cost of Rs. 2000 and rate of depreciation 10% p.a. What will be the amount of depreciation under diminishing balance method after 3 years?

2nd question ka fist hy 2000 pr depr 20% charge 2000*20/100 kroo to 400 ans aiy ga jo us ny diea hy

rs. 542

Rs. 1458

Rs. 1400

None of the above

In accounting accumulated depreciation is:

Treated as a reserve

Treated as a contra asset

reated as a surplus

Treated as an expense

Following information is available relating to a manufacturing concern:

Cost of Goods Sold Rs. 240,000 Opening Stock Rs. 20,000 Purchases Rs. 255,000

What will be the amount of Closing Stock?

Rs. 15,000

Rs. 25,000

Rs. 35,000

Rs. 45,000

Which of the following is NOT a rule for revaluation of fixed assets?

The change in the value should be permanent

Revaluation has to be carried out at regular intervals

Whole class of asset has to be revalued

If you start with cash book favorable balance in Bank Reconciliation Statement, which item will be added?

Cheque deposited but not credited by the bank

Cheques omitted to be deposited into bank

Any amount directly collected by bank on behalf of customer but not recorded in cash book

Debit side of cash book was overcast

Expenses incurred for Salaries, heating and lighting are the examples of:

Preliminary Expense

Deferred Expense

Revenue Expense

Capital Expense

A machine is purchased for Rs. 400,000. It has a residual value of Rs. 10,000 after 5 years. If machine is sold at Rs. 15,000, what will be the amount of profit or loss on disposal of machine?

Loss on disposal Rs. 5,000

Profit on disposal Rs. 5,000

Loss on disposal Rs. 15,000

Profit on disposal Rs. 15,000

Bank Reconciliation Statement is:

A memorandum statement

A ledger account

A part of cash book

A part of journal

As asset has a cost of Rs. 2000 and rate of depreciation 10% p.a. What will be the amount of depreciation under diminishing balance method after 3 years?

Rs. 542

Rs. 1458

Rs. 1400

Fixed Assets are always written on ___________ in the books of accounts.

Market Value

Historical Cost

Residual Value

Written Down Value

Which of the following assets are shown at written down value in balance sheet?

Current assets

Liquid assets

Cost of goods sold + ending finished goods – opening finished goods=?

Total factory cost

Cost of goods manufactured

Prime cost

The amount of depreciation charged on Furniture will be debited to:

Furniture Account

Depreciation Account

depriciation

Accumulated Depreciation A/c

All of the below items are directly recorded by bank without intimating the business until the end of month,

EXCEPT:

Bank Charges

bank charges

In cost of goods sold statement the ‘total factory cost’ is equal to:

Cost of material consumed + Labor cost

Cost of material consumed + Conversion cost

Cost of material consumed + Total factory cost

Cost of material consumed + Factory overhead

The entry of raw material issued to production units is:

Debit: Raw material A/c Credit: Work in process A/c

Debit: Work in process A/c Credit: Finished goods A/c

Debit: Work in process A/c Credit: Factory overhead A/c

Credit: Material Stock A/c

Which of the following is(are) example(s) of accruals?

Select correct option:

Electricity bills payable

Water supply bills payable

Wages payable

All of the given options

Which of the following shows company’s negative working capital?

Select correct option:

Current Asset > Current Liability

Current Asset < Current Liability

Current Asset = Current Liability

None of the given options

___________ is the detail of transaction in one's account provided by the bank.

Select correct option:

Bank statement

Bank reconciliation statement

Income statement

Financial statement

Total Sales are calculated by adding:

Select correct option:

Cash sales and cash received from debtors

Credit sales and cash received from debtors

Cash sales and credit sales

Cash ales and credit purchases

  

The amount of owner's equity in a business is affected by which of the following?

Select correct option:

The profitability of the business

Investments made in the business by the owner

The amount of dividends paid to stockholders

All of the given options

Expenses incurred for Salaries, heating and lighting are the examples of:

Select correct option:

Preliminary Expense

Deferred Expense

Revenue Expense

Capital Expense

Which of the following account balance/s is/are shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance)

Select correct option:

Capital account

Sundry creditors account

Accounts payable account

All of the given options

While making Profit & Loss account, Excess of expenses over income in a specified accounting period is called:

Select correct option:

Profit

Loss

Surplus

Deficit

__________ is the art of recording, classifying and summarizing the transactions and events of a business and interpreting the results thereof.

Select correct option:

Book-keeping

Accounting

Management

Auditing

In balance sheet fixed assets are shown at:

Select correct option:

Written down value (WDV)

Cost price

Market value

Fair value

Assets are divided in which of the following categories in balance sheet.

Select correct option:

Current assets, Long term assets and capital assets

Current assets, Long term assets and fixed assets

Current assets, Quick assets and business debts

Current assets, Fixed assets and deferred cost

In cost of goods sold statement the ‘cost of goods manufactured’ is equal to:

Select correct option:

Total factory cost + Opening work in process + Ending work in process

Total factory cost + Opening work in process – Ending work in process

Total factory cost - Opening work in process + Ending work in process

Ending work in process +Total factory cost – Opening work in process

Supervisor's salary and equipment repair cost are examples of:

Select correct option:

Factory overhead cost

Direct material cost

Direct labor cost

Finished goods cost

Bank Reconciliation Statement is:

Select correct option:

A memorandum statement

A ledger account

A part of cash book

A part of journal

Which of the following entry will be recorded for discount received in a control account?

Select correct option:

Discount Received (Dr) and Creditors Control A/c (Cr)

Discount Received (Dr) and Creditors A/c (Cr)

Creditors Control A/c (Dr) and Discount Received (Cr)

Debtors A/c (Dr) and Discount Received (Cr)

A form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible discrepancies is known as:

Select correct option:

Bank statement

Income statement

Financial statement

Bank Reconciliation statement

Bank Reconciliation Statement is prepared by:

Select correct option:

Bankers

Accountant of the business

Statutory auditor

Manger

Particulars Rs. Opening written down value of machine 3,75,000 Cost of machine 50,000 Depreciation during the year 11,500 Closing written down value (WDV) of the Machines ?

Select correct option:

Rs. 4,13,5000

Rs. 4, 25,000

Rs. 3, 36,500

Rs. 61,500

Sales to Mr. “A” of Rs. 336 have been debited to Mr. “B” account, this will be rectified by:

Select correct option:

Debiting Mr. A’s account and crediting Mr. B’s account

Debiting Mr. B’s account and crediting Mr. A’s account

Crediting both accounts

Debiting both accounts

All the statements are correct about Journal voucher EXCEPT: 

Select correct option: 

 Financial data is picked only from journal vouchers to Journal

 These are used to record all transaction other than cash & bank

 These are used to make corrections or adjustments to previous Receipt

 Format of journal voucher is different from other vouchers

Which of the following contents are included in the Cost of goods sold? 

Select correct option: 

 Opening stock 

 Purchases 

 Freight in 

 All of the given options

Which of the following Journal entry will be recorded when the bad debts are recovered? 

Select correct option: 

 Cash account (Dr.) & Bad Debts recovered account (Cr.)

 Accounts Receivable (Dr.) & Bad Debts recovered account (Cr.)

 Bad debts recovered account (Dr.) and profit & loss account (Cr.)

 Provision for doubtful debts account (Dr.) & cash account (Cr.)

Which of the following is NOT correct? 

Select correct option: 

 Decrease in Assets will be credit

 Decrease in Liabilities will be credit

 Decrease in Expenses will be credit

 Decrease in Revenue will be debit

Particulars Rs. Opening written down value of machine 1,00,000 Cost of new machine purchased during the year 50,000 Depreciation during the year 20,000 Closing written down value (WDV) ? 

Select correct option: 

 Rs. 1,30,000

 Rs. 1, 50,000

 Rs. 1, 20,000

 Rs. 70,000 

An accounting system is used by a business to: 

Select correct option: 

 Analyze transactions

 Handle routine bookkeeping tasks

 Structure information

 All of the given options

In an account if debit side > credit side, the balance is known as the: 

Select correct option: 

 Negative Balance

 Debit balance

 Positive Balance 

 Credit balance 

Details of individual accounts are kept in a separate register / ledger called: 

Select correct option: 

 Control Account 

 Subsidiary Ledger

 General Journal 

 All of the given options

which of the following statement/s closing stock is/are shown? 

Select correct option: 

 Profit and loss account

 Balance sheet

 Income statement 

 All of the given options

Which of the following particular/s is/are included in payment voucher? 

Select correct option: 

 Name of organization 

 Cash payment

 Date 

 All of the given options

Which of the following appears in both the Income Statement debit column and the Balance Sheet credit? 

Select correct option: 

 Net income

 Net loss

 Dividends

 Retained earnings

A book that keeps separate record for each account is known as: 

Select correct option: 

 Trial Balance 

 Voucher

 General Journal

 General Ledger

Which of the following Organization converts raw material into finished goods? 

Select correct option: 

 Trading concern

 Manufacturing concern

 Merchandising concern 

 Service concern 

Franchise rights, goodwill and patents are the examples of: 

Select correct option: 

 Liquid assets

 Tangible assets

 Intangible assets

 Current assets

Cost of goods sold + ending finished goods – opening finished goods=? 

Select correct option: 

 Total factory cost 

 Cost of goods manufactured 

 Prime cost 

 Conversion cost

accounting, which of the following account will be credited if the bad debts are recovered in cash? 

Select correct option: 

 Cash a/c

 Bad debt recovered a/c

 Doubtful debts a/c

 Provision for bad debts a/c

What should be credited, if rent paid in cash? 

Select correct option: 

 Landlord’s account

 Rent account

 Cash account

 Accounts receivable account 

Sales to Mr. “A” of Rs. 336 have been debited to Mr. “B” account, this will be rectified by: 

Select correct option: 

 Debiting Mr. A’s account and crediting Mr. B’s account

 Debiting Mr. B’s account and crediting Mr. A’s account

 Crediting both accounts

 Debiting both accounts

If cost of sales is Rs. 60,000, income from sales Rs. 95,000 and direct expenses Rs. 10,000. Calculate Net profit. 

Select correct option: 

 Rs. 15,000

 Rs. 35,000

 Rs. 55,000

 Rs. 60,000

Particulars Rs. Opening written down value of machine 4,10,000 Cost of machine purchased during the year 50,000 Depreciation during the year 20,000 closing written down value (WDV) of the Machines ? 

Select correct option: 

 Rs. 4, 40,000

 Rs. 4, 30,000

 Rs. 4, 80,000

 Rs. 70,000

Which of the following voucher is used to record receipt of cash? 

Select correct option: 

 Journal Voucher

 Receipt Voucher

 Payment Voucher

 Nominal Voucher

In double entry system discount received is recorded as: 

Select correct option: 

 Creditors a/c (Dr.), Discount received a/c (Cr.)

 Discount received a/c (Dr.), Creditors a/c (Cr.)

 Debtor a/c (Dr.), Discount received a/c (Cr.)

 Discount received a/c (Dr.), Debtor a/c (Cr.)

The expenses which are NOT paid out of Gross Profit is classified as: 

Select correct option: 

 Direct Expenses

 General Expenses

 Financial Expenses

 Selling Expenses

Which of the following account(s) would be decreased with a debit? 

Select correct option: 

 Capital

 Retained Earnings

 Revenues

 All of the given options

Which of the following is fiscal Year of Government of Pakistan? 

Select correct option: 

 1st January to 31st December 

 1st June to 31st May

 1st July to 30th June

 1st October to 30th September

Which of the following is/are inventory valuation method(s)? 

Select correct option: 

 FIFO

 LIFO 

 Weighted average 

 All of the given options

Which of the following particular/s is/are included in receipt voucher? 

Select correct option: 

 Name of organization 

 Bank receipt 

 Date 

 All of the given options

Which of the following assets is most likely to appreciate rather than depreciate? 

Select correct option: 

 Land

 Motor vehicles

 Plant and machinery 

 Fixtures and fittings

Which of the following item needs to be entered in the Cash Book in order to bring it in line with the entries on the Bank Statement? 

Select correct option: 

 A bank charges

 An error on the Bank Statement

 An uncredited deposit

 An unpresented cheque

Wages paid to laborers working in the manufacturing department is treated as an expense of: 

Select correct option: 

 Cost of goods sold

 Administrative expenses

 Selling expenses

 Marketing expenses

Bad debts written off (given in adjustment) always affect the: 

Select correct option: 

 Debtors account

 Creditors account

 Cash account 

 Capital account

Carriage paid Rs. 50 for the newly purchased machinery if debited to carriage account will effect: 

Select correct option: 

 Only carriage account

 Only machinery account

 Both carriage and machinery account

 None of the given options

Cost of goods manufactured - opening work in process + ending work in process =? 

Select correct option: 

 Cost of goods sold

 Prime cost 

 Conversion cost 

 Total factory cost

If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 300,000. What will be net result? 

Select correct option: 

 Rs. 1, 95,000 Losses

 Rs. 1, 95,000 Profits

 Rs 1, 05,000 Profits

 Rs1, 05,000 Losses

What is the proper order of the following steps in the accounting process? I. Prepare and analyze the trial balance II. Record relevant transactions and events in a journal III. Analyze each transaction and event from source documents IV. Post journal information to ledger accounts 

Select correct option: 

 III. IV. I. II. 

 I. II. III. IV. 

 III. II. IV. I. 

 III. II. I. IV. 

Sales to Mr. “A” of Rs. 336 have been debited to Mr. “B” account, this will be rectified by: 

Select correct option: 

 Debiting Mr. A’s account and crediting Mr. B’s account

 Debiting Mr. B’s account and crediting Mr. A’s account

 Crediting both accounts

 Debiting both accounts

Which of the following expenses are called financial expenses? 

Select correct option: 

 Payment of rent & Salary expense

 Markup on loan& Bank Charges

 Interest & advertisement expense

 Wages and Depreciation expense

Cash and other resources that are expected to turn to cash or to be used up within one year of the balance sheet date are called: 

Select correct option: 

 Current liability

 Current assets

 Fixed assets

 Long-term assets

Money spent to acquire or upgrade physical assets is known as: 

Select correct option: 

 Revenue Expense

 Capital Expense

 Administrative Expense

 Operating Expense

Which of the following might be a reason, when a Bank Statement show greater balance then Cash Book balance at the end of specified period? 

Select correct option: 

 Unpresented cheques

 Unrecorded bank charges

 Uncredited cheques

 None of the given options

Which of the following particular is NOT included in journal voucher? 

Select correct option: 

 Name of organization 

 Bank receipt number

 Debit amount 

 Credit amount 

Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000 

Select correct option: 

 Rs. 35,000 

 Rs. 55,000

 Rs. 1, 25,000

 Rs. 1, 05,000

If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be depreciation of machine after one years using diminishing balance method? 

Select correct option: 

 Rs. 1, 60,000

 Rs. 11,840

 Rs. 34,560

 Rs. 34,860

If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be book value of machine after four years using straight line method? 

Select correct option: 

 Rs.35, 000

 Rs.40, 000

 Rs.55, 000

 Rs.75, 000

Amount generated from sales in a business is called: 

Select correct option: 

 Income

 Net Income

 Gross Profit

 Operating profit

___________= Gross profit < Operating Expenses 

Select correct option: 

 Net Profit

 Gross Profit 

 Net Loss

 Gross Loss

Which of the following is an example of operating expense? 

Select correct option: 

 Purchasing operating equipment

 Purchasing cleaning services

 Purchasing an investment in another company

 Purchasing a computer for the accounting office

Net profit = Gross profit - _________ 

Select correct option: 

 Operating Expenses

 Product Cost 

 Deferred Expenses

 Direct Cost

which of the following statement/s closing stock is/are shown? 

Select correct option: 

 Profit and loss account

 Balance sheet

 Income statement 

 All of the given options

If Gross profit Rs.16,500 and Cost of goods sold Rs.183,500, what will be the amount of Net Sales? 

Select correct option: 

 Rs. 183, 500

 Rs. 167, 000

 Rs. 200, 000

 Rs. 230, 000

Cost of goods manufactured + opening finished goods – ending finished goods =? 

Select correct option: 

 Total factory cost 

 Cost of goods sold

 Prime cost 

 Conversion cost

Goods sold to Mr. Salman for RS. 6,000 have been forgotten to enter in books of accounts, this is an example of: 

Select correct option: 

 Error of Omission 

 Error of Commission 

 Error of Principle 

 Error of Original entry

Which of the following account balance is shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance) 

Select correct option: 

 Cash account 

 Furniture account

 Vehicle account

 Capital account

A debit balance in the Bank Statement indicates: 

Select correct option: 

 Cash at bank

 Bank overdraft

 Overpayment to creditors

 Cash in hand

Increase in an expense is recorded on the: 

Select correct option: 

 Left or credit side of the account

 Right or debit side of the account

 Left or debit side of the account 

 Right or credit side of the account

Expense incurred for operating activities of the business in providing goods and services is known as: 

Select correct option: 

 Revenue expense 

 Capital expense 

 Deferred expense 

 Preliminary expense

Which of the following is NOT considered a part of financial statements? 

Select correct option: 

 General Journal

 Balance Sheet

 Profit and Loss account

 None of the given options 

The goal of reconciliation is all of the following EXCEPT:

To discover the various things the bank has not done in the pass book but recorded in cash book

To discover anything that bank has passed through but the cash book has not

To put right anything that is wrong & draws an explanation for the differences

To discover any discrepancy that is due to timing rather than error

Which of the following is NOT a cause of disagreement between cash book and pass book?

Unpresented Cheques

Un-Credited Cheques

Direct Receipts

None of given

When a fixed asset in progress is completed, all costs are transferred to:

Profit & Loss A/c

Statement of owner’s equity

Relevant asset A/c

Profit & loss appropriation A/cProfit & loss appropriation A/c

_______ is the basic part of an item, which is processed to make a complete item:

Factory overhead

work in process

Raw material

Finished goods

The Cheques that has been deposited into the bank but not cleared until the end of the period are called as:

Unpresented Cheques

Un-Credited Cheque

Dishonored Cheques

Which of the following Organization converts raw material into finished goods?

Trading concern

Manufacturing concern

Merchandising concern

A company uses straight line method of depreciation for an item of equipment that cost Rs. 28,000, has a salvage value of Rs. 3000, and has a five year useful life. What will be the amount of annual depreciation?

Rs. 5,000

Rs. 6,000

Rs. 4,000

Rs. 3,000

A machine is purchased for Rs. 400,000. It has a residual value of Rs. 10,000 after 5 years. If machine is sold at Rs. 15,000, what will be the amount of profit or loss on disposal of machine?

Loss on disposal Rs. 5,000

Profit on disposal Rs. 5,000

Loss on disposal Rs. 15,000

Profit on disposal Rs. 15,000

Particulars Rs. Opening written down value of machine 3,75,000 Cost of machine 50,000 Depreciation during the year 11,500 Closing written down value (WDV) of the Machines ?

Rs. 4,13,5000

Rs. 4, 25,000

Rs. 3, 36,500

Rs. 61,500