Time Left: 600 sec

1. At the end of the accounting year all the nominal accounts of the ledger book are A. Balanced but not transferred to profit and loss account B. Not balanced and also the balance is not transferred to the profit and loss account C. Balanced and the balance is transferred to the balance sheet D. Not balanced and their balance is transferred to the profit and loss account.

2. The process of transferring the debit and credit items from a Journal to their respective accounts in the ledger is termed as A. Posting B. Purchase C. Balancing of an account D. Arithmetically accuracy test

3. Journal and ledger records transactions in A. A chronological order and analytical order respectively. B. An analytical order and chronological order respectively. C. A chronological order only D. An analytical order only.

4. Which of the following accounts may have a debit or a credit balance? A. Partner’s Current Account B. Purchase Account C. Commission (Recd) Account D. None

5. What will be the Journal Entry when goods purchased are returned? A. Creditors A/c Dr. To Purchase Returns A/c B. Purchase Return A/c Dr. To Creditors A/c C. Creditors A/c Dr. To Sales A/c D. None of these

6. Which of the following is known as “Principal Books of Accounts”? A. Ledger B. Journal C. Trial balance D. Balance sheet

7. The credit balance of a personal account shows: A. Cash in hand B. The amount payable C. Income D. Amount receivable

9. Ledger records transaction in : A. A chronological order B. Analytical order C. Both of the above D. None

11. Purchase Return Account always shows a _______ balance. A. Debit B. Credit C. Either (a) or (b) D. None

12. Discount Account will always have: A. Only debit balance B. Nil balance C. Only credit balance D. Debit or Credit balance

13. Cash account is a : A. Personal Account B. Real account C. Nominal account D. None of these

14. Cash Sales Rs. 50,000 Cash collected from debtors Rs.1,30,000 Bad debts during year Rs. 5,000 Debtors at beginning Rs. 10,000 Total Sales will be : A. Rs. 1,75,000 B. Rs. 1,70,000 C. Rs. 1,80,000 D. Rs. 1,78,000

15. Which of these Account is Debited: A Income received in advance B Bank Loan C Prepaid Insurance Premium D Reserve for doubtful debts

16. The next step after preparation of Ledger is the preparation of ________: A. Trial balance B. Final Accounts C. Cash Flow statement D. Balance sheet

17. The process of transferring the transaction relating to changes in a particular item at one place in the form of an account is called __________: A. Balancing B. Casting C. Journalizing D. Posting

18. If the owner withdraws amount from the business for personal use, then which A/c is to be debited? A. Capital A/c B. Drawings A/c C. Owners A/c D. None of these

20. Furniture of book value of Rs. 20,000 was sold for Rs. 6,000 and new furniture of Rs. 20,000 was purchased. Amount debited towards purchase of new furniture will be:- A. Rs. 14,000 B. Rs. 29,000 C. Rs. 5,000 D. Rs. 20,000