Financial Accounting - Unit Wise Questions

Unit 1: Theoretical Framework
20 Questions

1. Which one is not an accounting process?

a) Identification of financial transactions.

b) Recording of financial transactions.

b. Classifying financial transactions.

d) Preparing trial balance

1 marks | Asked in 2018-objective

11. Define accounting. What are its function. [1+4]

5 marks | Asked in 2018

2. Which accounting concept tells us business and business man are different.

a) Going concern concept    b) Matching concept    c) Period concept    d) Business entity concept

1 marks | Asked in 2018-objective

12. Following transactions relating to a business were given to you 31st November 2018.(5)

On 30th Chaitra, the cash book showed debit balance Rs. 16,000

a. Balance as per cash book Rs.35,000

b. Cheque issued for payment but not presented at bank Rs.5,000

c. Cheque sent for collection at bank but not credited by the bank Rs.15,000

d.A customer directly deposited Rs.10,000 to the bank but not recorded in cash book.

e.The bank has paid electricity bill of Rs.4,000 under preapproval from the firm but not recorded in     cash book.

Required: Bank reconciliation statement

5 marks | Asked in 2018

3. Which one is accounting package of computer software?

a) SPSS    b) Minitab    c) Tally    d) Excel

1 marks | Asked in 2018-objective

13. The The following information were provided to you by Gurung Suppliers Mhendra Pool

1 November 2018 sales of goods to Shrestha store at Birauta

    50 bags Mansuli rice @ Rs. 2,000 each.

    30 bags Pokharali masino rice @ 2,500 per bag

    70 bags Onion @1500 per bag.

15 November. Sales of goods to Bindabasini store at Bagar

    30 bags potato @ Rs.1000 per bag

    10 bags Sugar @ Rs.3000 per bag

    (Trade discount 10%)

20 November, Goods sold on cash to Raj Bhai 15 bags potato @Rs.900 per bag.

28 November, Goods sold to Hirachan store matepani

    20 bags Rice @ Rs.1,500 per bag

    20 bags sugar @ 3000 per bag

    100Kg Ghee @Rs.800 per Kg


a) sales book

b) Sales account [4+1]

5 marks | Asked in 2018

14. Furniture purchased on 1st January 2013 at Rs.5,50,000. Another Furniture purchased on 1st july 2016 at Rs. 5,00,000. The Furniture purchased on 1st January 2013 has found unsuitable and sold at Rs. 30,000 on 31st December 2016. The account of the business is closed 31st December each year. The company applied diminishing method of depreciation@ 10 percent per year.

Required: Furniture account for five years [5]

5 marks | Asked in 2018

4.An accountant prepared trial balance for ………………

a) Completing the accounting process.

b) Knowing the debit and credit amount in accounts.

c) To shows all the balance of accounts in a statement.

d) Examining the arithmetical accuracy of the books of account.

1 marks | Asked in 2018-objective

15. The following transactions of cash and bank of Tharu for the month of July has given to you.

2018, July, 1 Opening balance of cash Rs.45,000 and bank Rs.50,000.

July 5 Goods purchase at Rs.30,000 and payment made by cheque.

July, 8, A cheque of Rs.40,000 received from a customer and deposited into bank.

July 16, Goods sold at Rs.50,000 out of which partial payment received Rs.20,000 in cash.

July, 19, A cheque of Rs.20,000 issued to Himal supplier

July,22, Cash sales of Rs.30,000

July, 23, Cash deposited into bank Rs.20,000

July, 27, Rent paid to house owner Rs.13,000 by cheque

July, 28 Salary paid in cash Rs.8,000

July, 30, Electricity bill of Rs.5000 and telephone bill of Rs.3,000 paid by cheque

Required: Double column cash book with Cash and Bank column. [5

5 marks | Asked in 2018

5. Who prepared the cash book?

c) Teacher    b) Business man    c) Accountant of the business    d) Employee of the bank

1 marks | Asked in 2018-objective

6. A company is known as an artificial person because

a) It registered at company registers’ office or government bodies.

b) It recognized by all the people.

c) It has rights and duties as a natural person.

d) It has own accounting system

1 marks | Asked in 2018-objective

16. The following material transactions of a manufacturing company is provided to you

2018, December, 1, Opening stock of raw material 1100 units @ Rs.10 each

2018, December, 5, Purchased 300 units @ Rs.9 each.

2018, December, 9, Issued 800 units.

2018, December, 14, Issued 500 units.

2018, December, 18, Purchased 1,000 units @11 each.

2018, December, 22, Returned 50 units from issued of 9 December.

2018, December, 25, purchased 500 units @10 each.

2018, December, 30, issued 900 units.

Required: Closing stock of material on 31 December, 2018 under First in First out

(FIFO) method

5 marks | Asked in 2018

17.The Hydropower company Ltd is issued 1,00,000 shares of Rs.100 each. The money called on application Rs.20, on allotment Rs.40 and Rs.30 on first call. The application is received for 90,000 only. The Board of director decided that all the share applications allotted in full. All the shareholders paid money in full except Shrijana holds 300 in first call.

Required: Journal entries in the book of company. [5]

5 marks | Asked in 2018

7. Thapa purchased goods of Rs.60,000 from Karim on cash, which journal entry is recorded in the account book of Thapa?

a) Cash ….. Dr 60,000

To Purchase A/C 60,000

b) Purchase A/C ……Dr 60,000

To Cash 60,000

c) Purchase………..Dr 60,000

To Karim A/C 60,000

d) Karim A/C …………Dr 60,000

To Purchase A/C 60,000

1 marks | Asked in 2018-objective

8. The total amount of purchase book showed Rs.2,00,000 is transfer into

a) Debit side of purchase return account

b) Debit side of purchase account

c) Credit side of sales account

d) Credit side of purchase account

1 marks | Asked in 2018-objective

9.A company issued shares of Rs. 100 each, but the money is called Rs. 30 on application, Rs. 40 allotment, and Rs.40 final call. How much money is premium per share?

a) Rs. 5    b) Rs. 10    c) Rs. 15    d) Rs. 20

1 marks | Asked in 2018-objective

10. What is the value of closing stock under FIFO method?

Purchase 3,000 @ Rs.20 per units on 1st January, Issued 500 units on 10 January,

again 23 January purchase 1500 units @Rs.22 per unit. On January 30, issue 2000


a) Rs. 43,000    b) Rs.50,000    c) Rs.41,333    d) Rs.45,000

1 marks | Asked in 2018-objective

18. Defined company. What are the types of company? Justify share differ with debenture.

10 marks | Asked in 2018

19.The following transactions provided by Kathmandu trader to you.

July, 1, 2018 Started business on cash Rs.5,50,000 and Furniture Rs.50,000

July, 2, Cash deposited into bank Rs.1,00,000

July,6, Goods purchased from Newa store on credit Rs. 1,00,000 and cash Rs.50,000.

July, 8, Goods sold on cash Rs.30,000.

July, 12, Goods sold to Dangol store at Rs.45,000.

July, 18, Goods of Rs.25,000 purchase from Tamang store.

July, 22, Payment made by cheque to Newa Store Rs. 90,000 in full settlement (discount received Rs.10,000).

July, 25, Cash received from Dangol store as partial payment in cash

Rs.24,000 and discount given Rs. 1,000.

July, 28, Purchase of computer for office use at Rs.50,000 and paid made by cheque.

July,29, Goods of Rs.5000 drawn by owner for private purpose.

July 30, Paid salary in cash Rs.12,000 and rent by cheque Rs.8,000

Required: a. Journal entries b. Ledger accounts c. Trial balance [5+4+1]

10 marks | Asked in 2018

20. The following trial balance of a trader as on 31 December 2018 given bellow

Additional information

- Closing stock found Rs.45,000

- Provide depreciation on computer and furniture by 10 percent.

- Prepaid insurance expired by 15,000

- Interest payable Rs.1,000

- Discount and commission receivable Rs.2,000


a. Trading account

b. Profit and loss account

c. Balance sheet [3+4+3=10]

10 marks | Asked in 2018

Unit 2: Accounting Process
0 Questions
Unit 3: Bank Reconciliation Statement
0 Questions
Unit 4: Depreciation Accounting
0 Questions
Unit 5: Inventories
0 Questions
Unit 6: Preparation of Final Accounts for Sole Proprietors
0 Questions
Unit 7: Introduction to Company Accounts
0 Questions