FR Questions

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1.Which of the following is not an accounting equation? 0 I do not want to answer this Question

1 capital = Profit + Stock+ Cash 2 Capital = Assets - Liabilities 3 Assets = Capital + Liabilities 4 Liabilities = Assets - Capital

2.A business has assets of Rs.40000 and liabilities of Rs.13,000. What is the am ount of capital ?

0 I do not want to answer this Question

1 27,000

2 53,000

3 28,000

4 None of the above\

3.Altd purchased goods for $ 50000 and incurred Rs 10000 as expenses. Salary per month is Rs. 500. During the first three months sold 75% of the goods at profit of 25% on cost. :

1 11531

2 12530

3 11000

4 11350

4.Capital = 50,000; Networth = 85,000; Assets = 200,000. Find the missing item o f the accounting equation

0 I do not want to answer this Question 1 Liabilities = 115,000

2 Liabilities = 65,000 3 Liabilities = 150,000 4 Liabilities = 50,000

5.Purchased goods on credit for Rs.70000. What will be the impact on Accounting Equation ( Capital + Liabilities = Assets)?

1 Increase in Assets and Increase in Liabilities 2 Increase in Capital and Increase in Liabilities 3 Increase in Assets and Increase in Capital 4 Increase in Cash and Increase in Capital

6.Purchased furniture on credit for Rs.10000. Which of the following statements is correct with respect to accounting equation?

1 Increase in one asset and Decrease borrowing/liabilities 2 Decrease in cash and increase in assets

3 Increase in furniture and decrease in capital 4 None of the above

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7.Altd. raised Rs. 500,000 as capital and 12% loan of Rs.500000.. Invested all f unds in the purchase and sale of shares of good companies. At the end of the yea r the networth (capital +Profit) of the company was Rs. 600000. Which of the fol lowing statements represents the correct state of affairs:

1 Capital (500000) + Profits (100000) + Loans (500000) = Assets (1100000) 2 Owners fund (600000) +Loans (500000) = Assets (1100000

3 A & B

4 None of the above

8.Altd has the following transactions: Salary paid: Rs.12000 (per month Rs.4000) , Rent paid: Rs. 24000 (Rent per month; 4000). Sold goods: Rs.50000. Other expen ses per month: Rs2000. Find profit for the first three months:

1 20000

2 12000

3 42000

4 none of the above

9.A stared business with 50,000; Purchased shares of X ltd.. Sold the shares at the end of the month at Rs. 65000. Show the accounting equation at the end of th e month.

1 Capital (50000) + Profit (15000) = Cash 65000 2 Capital (65000) = Cash (65000)

3 Capital (50000) - Loss (15000) = Cash (35000) 4 Capital (50000) = Cash (50000)

10.A ltd. purchased scooter for the salesmen and also for his son. However, purc hase of scooter for son will not recorded in the accounting equation due to: 0 I do not want to answer this Question

1 Money measurement concept 2 Business entity concept 3 Accrual concept

4 None of the above

11.A ltd. purchases shares of X ltd at a premium of 50% for cash. What will be t he impact on the accounting equatiion of Altd.

0 I do not want to answer this Question 1 Cash Decreases and Investment Increases 2 Cash Decreases and Investement Decrease 3 Cash Increases and Investment Increases 4 Capital decreases and Profit Increase

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nt = 40,000 ( life 10 years); No production during the year. Rent paid: 3000. Sh ow the accounting equation at the end of the year.

1 Capital (50000) - Loss (7000) = Cash (7000) + Plant (36000) 2 Capital (50000) + Profit (7000) = Cash (7000) + Plant (36000) 3 Capital (50000) - Loss (7000) = Cash (36000) + Plant (7000) 4 Capital (50000) = Cash (7000) + Plant (43000)

13.Altd takes a loan (rate of interest is 12% per annum) and purchases goods for $ 5000 on 1st April 2005. and incurred Rs 1000 as other expenses. During the ye ar sold all goods for 10000. Profit earned is:

1 3425

2 3850

3 3400

4 3000

14.A ltd purhchased plant at the cost of Rs. 25000. The market value of the plan t is Rs. 300000 and the Altd expects to earn a profit of 50000 by using the plan t. What plant value should be shown in the accounting equation?

1 300,000

2 50,000

3 25,000

4 None of the above

15.A business has assets of Rs.44,312 and owners money Rs.13,210. What is the am ount of liabilities ?

1 31,102

2 57,522

3 44,312

4 None of the above

16.A stared business with 50,000; Purchased old books on credit = 50000; Purchas ed shares for cash = 30,000; Sold all old books at a premium of 50%. Find Networ th.

1 75000

2 35,000

3 50,000

4 100,000

17.Altd purchased goods for $ 5000 and incurred Rs 1000 as expenses. Sold 75% of the goods at profit of 20% on sales. Profit earned is:

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2 5400

3 5250

4 none of the above

18.Purchase of raw materials on credit results in 0 I do not want to answer this Question

1 Increase in assets and increase in liability 2 Decrease in capital and increase in liability 3 Decrease in assets and increase in liability 4 Decrease in assets and decrease in liability

19.Assets of a business are Rs.21,315 and liabilities Rs.4,120. What is the amou nt of owners money ?

1 21315

2 17195

3 25435

4 4120

20.Which of the following is an accounting equation ? 0 I do not want to answer this Question

1 Capital=Assets -Liabilities 2 Assets = Liabilities + Capital

3 Only A

4 Both A & B

21.On 1st April Altd started business with cash $ 100,000. It availed 12% loan: $ 50000. Used the entire money for buying shares of Google ltd. At the end of th e six month 50% of the shares were sold at profit of 50%. Find the networth at t he end of the one year.

1 137,500

2 131,500

3 125,000

4 100,000

22.On 1st April Altd started business with cash 100,000. It availed 12% loan: 50 000. Used the entire money for buying shares of Google ltd. At the end of the si x month 50% of the shares were sold at profit of 50%. Show the accounting equati on at the end of 6 months.

1 Capital( 100,000) + Loan( 50,000) + Profit (34500)= Shares (75000) + Cas h (109,500)

2 Capital( 100,000) + Loan( 50,000)= Shares (150,000)

3 Capital( 100,000) + Loan( 50,000) + Profit (37500)= Cash (187500) 4 none of the above

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23.Purchase of office equipment for cash results in 0 I do not want to answer this Question

1 Increase in equipments and decrease in cash 2 Increase in equipments and increase in loan 3 Increase in assets and decrease in profits 4 Increase in assets and increase in liabilities

24.Capital of Altd. Rs.15000. 12% Loan: Rs.50000. Sales during the year: 100,000 , Expenses (other than interest)= 45%. Show the accounting equation at the end o f the year

1 15,000 (capital) + 50,000(Loan) = 65000 (Cash)

2 15,000 (capital) + 50,000(Loan) +49000 (Profit)= 114,000 (Cash) 3 15,000 (capital) -49000 (loss)+ 50,000(Loan) = 16,000 (Cash) 4 None of the above

25.A stared business with 50,000; Purchased old books on credit from X = 50000; Purchased shares for cash = 30,000; Sold all old books at a premium of 50%. Find profit and cash in hand.

0 I do not want to answer this Question 1 Cash (75000); Profit (25000)

2 Cash (55000); Profit (25000) 3 Cash (25000); Profit (75000) 4 Cash (50000); Profit (50000)

26.Capital = Rs.50000, Loan = 100000, FA = 50000, Investments = 20000 Stock = 80 000. During the month 50% of the stock sold at a profit of 20% on sales. Which o f the following is correct reflection of the accounting equation

1 50000 (Cap)+ 100000 (loan)+10000 (profit) = 50000 (FA) + 20000 (Inv)+ 40 000 (Stock) + 50000 (Cash)

2 160000 (sources) = 160000 (assets)

3 160000 (sources) = 50000 (cash) + 110,000 (other Assets) 4 All of the above

27.Capital of Altd. Rs.15000. 12% Loan: Rs.50000. Show the accounting equation a t the end of the year assuming no sales during the year

1 15,000 (capital) - 6000 (loss)+ 6000 (Interest Outstanding)+ 50,000(Loan ) = 65,000 (Cash)

2 15,000 (capital) + 50,000(Loan) - 6000 (loss)= 59,000 (Cash) 3 1 and 2

4 None of the above

28.Which of the following statements is correct with respect to the impact of de preciation on plant on the accounting equation?

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1 Networth + Liabilities = Assets 2 Networth = Assets Liabilities 3 Capital + Cash + Loan = Assets 4 Capital + Profit + Loan = Assets

29.A stared business with 50,000; Purchased old books on credit = 50000; Purchas ed shares for cash = 30,000; Sold all old books at a premium of 50%. Find Networ th.

1 Capital (50000) + Profit (25000) + X (50000)= Cash (95000) +Shares (3000 0)

2 Capital (50000) + Profit (25000) + X (50000)= Cash (75000) +Shares (3000 0)

3 Capital (100000) + Profit (25000) = Cash (95000) +Shares (30000) 4 Capital (75000) + X (50000)= Cash (95000) +Shares (30000)