Financial Accounting - Unit Wise 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
11. Define accounting. What are its function. [1+4]
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
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
3. Which one is accounting package of computer software?
a) SPSS b) Minitab c) Tally d) Excel
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
Required
a) sales book
b) Sales account [4+1]
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]
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.
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. Who prepared the cash book?
c) Teacher b) Business man c) Accountant of the business d) Employee of the bank
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
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
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]
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
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
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
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
units.
a) Rs. 43,000 b) Rs.50,000 c) Rs.41,333 d) Rs.45,000
18. Defined company. What are the types of company? Justify share differ with debenture.
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]
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
Required:
a. Trading account
b. Profit and loss account
c. Balance sheet [3+4+3=10]