If an asset is exchanged with another asset and commercial substance does not exist, the cost of asset taken through exchange is __________ of asset given up.

• A) Purchase price
• B) Market value
• C) Carrying value
• D) Fair value

A payables ledger control account had a closing balance of Rs.9,000. A credit sales of Rs. 500 had been omitted to record in this control account. What should be the correct balance of payables control account?

• A) Rs. 10,000 credit
• B) Rs. 8,000 credit
• C) Rs. 8,500 credit
• D) Rs. 9,000 credit

In case of creating provision for doubtful debt, _____________ is credited.

• A) Receivable account
• B) Payable account
• C) Doubtful debts account
• D) Provision for doubtful debts account

Which of the following is a Tangible fixed asset?

• A) All of the given options
• B) Factory Workshop
• C) Car held for rent
• D) Outlet where products are displayed

Control accounts are maintained for all of the following EXCEPT:

• A) Inventory
• B) Depreciation
• C) Trade receivables
• D) Trade payables

If a fixed asset is purchased for Rs. 100,000 and payment is made through cheque; then which of the following account will be credited?

• A) Cash account
• B) Bank account
• C) Debtor account
• D) Fixed asset account

Income received but not yet earned till the end of the accounting period is treated in balance sheet as:

• A) Capital
• B) Asset
• C) Drawing
• D) Liability

Expenses paid during the period should be mentioned in:

• A) Payment side of balance sheet
• B) Payment side of cash book
• C) Receipt side of cash book
• D) Expense side of balance sheet

Advance receipt at the end of the period is treated as:

• A) Expenses
• B) Liability
• C) Drawings
• D) Assets

Rent receivable account should be debited due to:

• A) Balance sheet
• B) Closing balance
• C) Opening balance
• D) Cash paid

Expense payable at the end of the period is treated as:

• A) Income
• B) Asset
• C) Liability
• D) Drawings

Prepaid expense at the end of the period is treated as:

• A) Liability
• B) Asset
• C) Income
• D) Drawing

ABC Corporation has recently purchased a new production plant. It will be initially measured at____________.

• A) Cost
• B) Market value
• C) Fair value
• D) Whichever value is available

_________________ is posted in credit side of debtors account.

• A) Credit sales
• B) Balance b/f of debtors
• C) Balance c/f of debtors
• D) Cash sales

___________________ is posted in credit side of debtors account.

• A) Purchases return and discount allowed
• B) Sales return and discount allowed
• C) Cash purchases and credit purchases
• D) Cash sales and credit sales

__________________ is posted in credit side of debtors account.

• A) Credit purchases
• B) Discount allowed
• C) Cash purchases
• D) Trade discount

_____________________is posted in credit side of debtors account.

• A) Sales return account
• B) Discount allowed account
• C) All of the given options
• D) Receipts from debtors

If cost of equipment is Rs. 108,000, useful life is 10 years and its residual value is Rs. 8,000. Then Deprecation for the 3rd year using straight line method is ____________.

• A) Rs. 8,000
• B) Rs. 10,000
• C) Rs. 9,800
• D) Rs. 8,820

If cost of a plant is Rs. 120,000, total estimated hours are 15,000 and residual value is Rs. 20,000. Then depreciation rate per hour is ____________.

• A) Rs. 1.33 per hour
• B) Rs. 6.67 per hour
• C) Rs. 6 per hour
• D) Rs. 8 per hour

All of the following items may appear in Trade receivable control account EXCEPT:

• A) Bad debts
• B) Cash sales
• C) Discount allowed
• D) Cash received from debtors