For Private Circulation Only Hitesh J.

Shah

B.Com. Part - I
Semester – I
ADVANCED ACCOUNTANCY

Unit – I

1.1

 Book keeping & Accountancy 

 Select the most appropriate answers from the alternatives given below
and rewrite the sentences :

1. The work of book keeping is of ………… nature.

(a) Competitive (b) Primary / basic
(c) Secondary (d) None of those

2. The work of accounting depends upon …………

(a) book - keeping (b) Cash book
(c) Subsidiary books (d) Ledger

3. ………… is amount invested by the owner of a business.

(a) Cash (b) Money
(c) Asset (d) Capital

4. Revenue expenditure is ………… in nature.

(a) Capital (b) Outstanding
(c) Recurring (d) Contingent

5. Amount withdrawn by the owner for his personal expenses is called ………
(a) Drawings (b) Personal expenses
(c) Cash (d) Assets

6. A ………… liability is an uncertain liability.

(a) Long term (b) Contingent
(c) Current (d) Fixed

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7. According to ………… concept business shall go on for a long time.

(a) Going concern (b) Consistency
(c) Materiality (d) Dual aspect

8. Book keeping is a ………… science.

(a) Pure (b) Natural
(c) Social (d) Physical

9. In ………… transaction goods and services are traded in cash only.

(a) Credit (b) Cash
(c) Barter (d) Moneyless

10. ………… is a commodity in which trader regularly deals.

(a) Cash (b) Article
(c) Goods (d) Service

11. ………… transcation is called moneyless transcation.

(a) Cash (b) Credit
(c) Barter (d) Financial

12. Commodities purchased for ………… are called goods.

(a) Consumption (b) Resale
(c) Use (d) Gift

13. Capital = ………… less liabilities.

(a) Drawings (b) Assets
(c) Debtors (d) Revenue

14. A person from money is due to the business is called …………

(a) Debtor (b) Creditor
(c) Supplier (d) Proprietor

15. A person to whome money is due from the business is calles a …………
(a) Debtor (b) Creditor
(c) Supplier (d) Proprietor

16. The deduction which is made in the printed price is called …………
discount.
(a) Cash (b) Trade
(c) Gross (d) Net

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17. Goodwill is ………… asset of the business.

(a) A tangible (b) An intangible
(c) A ficticious (d) A current

18. Accounting ………… refers to ideas on which accounting is based.

(a) Principle (b) Concept
(c) Convention (d) Arthashastra

19. Concept of ………… assumes that business has perpetual succession.

(a) Conservation (b) Realisation
(c) Going concern (d) Accrual

20. Convention of ………… is more relevant to joint stock company.

(a) Disclosure (b) Conservation
(c) Consistency (d) Materiality

21. Money value or the reputation of business is known as …………

(a) Copyright (b) Goodwill
(c) Patents (d) Trademark

22. Surplus of income over expenses is …………

(a) Loss (b) Profit
(c) Financial societies (d) Deficit

23. A commodity in which a trader deals is known as …………

(a) Property (b) Goods
(c) Expenditure (d) Income

24. Heavy advertising expenditure for launching a new product is called

as …………
(a) Capital expenditure (b) Revenue expenditre
(c) Deferred revenue expenditre (d) None of this

25. Expenditure incurred on purchase of fixed asset is …………

(a) Capital expenditure (b) Revenue expenditre
(c) Deferred revenue expenditre (d) None of this

26. Accounts must be honestly prepared and they must disclose all material
information is known as …………
(a) Disclosure concept (b) Entity concept
(c) Cost concept (d) Dual aspect concept

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27. The immrdiate recognition of loss is supported by principle of …………

(a) Matoning (b) Conservatism
(c) Consistency (d) Objectives

28. Concept which provides a line between present & future is known
as …………
(a) Going concern (b) Debtors
(c) Bad debts (d) Doubtful debts

29. Amount which is not recorverable from customer is known as …………

(a) Debts (b) Debtors
(c) Bad debts (d) Doubtful debts

30. Toatalling of journal or ledger is called as …………

(a) Posting (b) Folio
(c) Casting (d) Journalising

Answers :

1. (b) Primary / basic 2. (a) book - keeping

3. (d) Capital 4. (c) Recurring
5. (a) Drawings 6. (b) Contingent
7. (a) Going concern 8. (c) Social
9. (b) Cash 10. (c) Goods
11. (c) Barter 12. (b) Resale
13. (b) Assets 14. (a) Debtor
15. (b) Creditor 16. (b) Trade
17. (b) An intangible 18. (b) Concept
19. (c) Going concern 20. (a) Disclosure
21. (b) Goodwill 22. (b) Profit
23. (b) Goods 24. (c) Deferred revenue expenditre
25. (a) Capital expenditure 26. (a) Disclosure concept
27. (b) Conservatism 28 (a) Going concern
29 (c) Bad debts 30. (c) Casting

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1.2

 Journal 

 Select the most appropriate answers from the alternatives given below
and rewrite the sentences :

1. The ………… column of the journal is not entered at the time of

journalizing.
(a) Date (b) Particulars
(c) Ledger folio (d) Amount

2. Recording ot transcation in the journal is called …………

(a) Posting (b) Casting
(c) Tallying (d) Journalising

3. Goods or amounts taken by proprietor for his personal use should be

debited to …………
(a) Sales A/c (b) Drawing A/c
(c) Purchase A/c (d) Cash /c

4. Cash purchase of goods should be credited to …………

(a) Purchase A/c (b) Sales A/c
(c) Cash A/c (d) Goods A/c

5. Wages paid for installation of machinery should be debited to …………

(a) Wages A/c (b) Machinery A/c
(c) Cash A/c (d) Installation A/c

6. The rent paid to the landlord should be debited …………

(a) Drawing A/c (b) Cash A/c
(c) Landlord A/c (d) Rent A/c

7. The amount of salary paid to mandar should be debited to …………

(a) Salary A/c (b) Mandar’s A/c
(c) Cash A/c (d) Bank A/c

8. The amount brought in by the proprietor in the business should be credited

to …………
(a) Cash /c (b) Drawing A/c
(c) Bank A/c (d) Capital A/c

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9. A Payment of ` 100 to kokate carriage Co. for bringing a machine to the

business place should be debited to …………
(a) Machinery A/c (b) Cash A/c
(c) Kokate Carriage Co. A/c (d) Carriage A/c

10. A purchase of horse in cash should be debited to …………

(a) Livestock A/c (b) Goods A/c
(c) Cash A/c (d) Bank A/c

11. ………… discount is allowed to recover the amount due in time.

(a) Cash (b) Trade
(c) Quantity (d) None ot these

12. All subdivisions of the Goods A/c are ………… accounts.

(a) Real (b) Nominal
(c) Personal (d) Impersonal

13. Purchase of furniture is debitedto the ………… A/c.

(a) Purchase (b) Cash
(c) Bank (d) Furniture

14. Receipt of interest from Dilip should be cerditede to ………… A/c.

(a) Cash (b) Interest
(c) Dilip’s (d) Bank

15. Payment of brokerage on purchase of shares should be debited to

………… A/c.
(a) Investment (b) Cash
(c) Bank (d) Brokerage

Answers :

1. (c) Ledger folio 2. (d) Journalising

3. (b) Drawing A/c 4. (c) Cash A/c
5. (b) Machinery A/c 6. (d) Rent A/c
7. (a) Salary A/c 8. (d) Capital A/c
9. (a) Machinery A/c 10. (a) Livestock A/c
11. (a) Cash 12. (b) Nominal
13. (d) Furniture 14. (b) Interest
15. (a) Investment

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 Ledger 

 Select the most appropriate answers from the alternatives given below
and rewrite the sentences :

1. When the total of debit side of an account exceeds credit side, it is called
………… balance.
(a) Debit (b) Credit
(c) Nil (d) Real

2. Machinery Account shows ………… Balance.

(a) Credit (b) Debit
(c) Positive (d) Negative

3. Recording of an entry from journal to ledger is called as …………

(a) Balancing (b) Posting
(c) Totaling (d) Transferring

4. Debtors A/c shows ………… balance.

(a) Debit (b) Credit
(c) Nominal (d) Real

5. Left hand side of an account is called ………… side.

(a) Credit (b) Debit
(c) Middle (d) Centre

6. ………… is prepared from the balances in ledger accounts.

(a) List (b) Journal
(c) Book (d) Trial Balance

7. Total of sales book is ………… to sales A/c.

(a) Entered (b) Moved
(c) Posted (d) Given

8. Balance in wages A/c is transferred to ………… A/c.

(a) Trading A/c (b) Profit and Loss A/c
(c) Trial Balance (d) Any

9. All entries are posted from journal to …………

(a) Ledger (b) Balance Sheet
(c) Trial Balance (d) Cash A/c

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10. Carried down (c/d) balancing indicates ………… balance.

(a) Opening (b) Real
(c) Nominal (d) Closing

11. A bound book of accounts is …………

(a) Ledger (b) Journal
(c) Subsidiary books (d) Cash books

12. Cash Account always shows ………… balance.

(a) Debit (b) Credit
(c) Negative (d) Minus

13. Right hand side of an account is called ………… side.

(a) Debit (b) Credit
(c) Liabilities (d) Assetes

14. If a person’s account shows a credit balance, he is our …………

(a) Creditor (b) debtor
(c) Owner (d) Buyer

15. The capital account always shows a ………… balance.

(a) Debit (b) Credit
(c) Negative (d) Positive

16. If the debit total of an account is greter than its credit total, the account has
a ………… balance.
(a) Debit (b) Credit
(c) Negative (d) Minus

17. If the credit total of an account is greter than its debit total, the account has
a ………… balance.
(a) Debit (b) Credit
(c) Negative (d) Positive

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Answers :

1. (a) Debit 2. (b) Debit

3. (b) Posting 4. (a) Debit
5. (b) Debit 6. (d) Trial Balance
7. (c) Posted 8. (a) Trading A/c
9. (a) Ledger 10. (d) Closing
11. (a) Ledger 12. (a) Debit
13. (b) Credit 14. (a) Creditor
15. (b) Credit 16. (a) Debit
17. (b) Credit

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 Trial Balance 

 Select the most appropriate answers from the alternatives given below
and rewrite the sentences :

1. A Trial Balance is list of ………… accounts.

(a) Personal (b) Real
(c) Nominal (d) Ledger

2. The Trial Balance shows only ………… accuracy.

(a) Arithmetical (b) Accounting
(c) Historical (d) Financial

3. A Trial Balance is a …………

(a) Ledger (b) Journal
(c) subsidiary (d) Statement

4. A Trial Balance provides the base for preparation of …………

(a) Final accounts (b) Voucher
(c) Debit Note (d) Credit Note

5. Total of all debit balances must be ………… to the total of all credit
balances in the Trial Balance.
(a) Different (b) Equal
(c) More (d) Less

6. Sales account always shows ………… balance.

(a) Debit (b) Credit
(c) Adverse (d) Specific

7. A Trial balance is generally prepared at the end of each …………

(a) Month (b) Half year
(c) Financial year (d) Quarter

8. Drawings account appears in ………… column of the Trial Balance.

(a) L.F. (b) Debit balance
(c) Credit balance (d) None of this

9. Income tax appears in trial balance ………… column.

(a) Debit balance (b) Credit balance
(c) L.F. (d) None of this

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10. ………… accounts usually show debit balance.

(a) Personal (b) Real
(c) Nominal (d) Income

11. Real Acconts usually show a ………… balance.

(a) Debit (b) Credit
(c) Equal (d) Unequal

12. Trial balance is useful for locating …………

(a) Errors (b) Debit balances
(c) Financial position (d) Credit balances

13. Purchases Account always shows ………… balance.

(a) Debit (b) Credit
(c) Negative (d) None of this

14. Goodwill account appears on ………… side of trial balance.

(a) Debit (b) Credit
(c) Positive (d) None of this

15. General reserve account shows a ………… balance.

(a) Debit (b) Credit
(c) Positive (d) None of this

Answers :

1. (d) Ledger 2. (a) Arithmetical

3. (d) Statement 4. (a) Final accounts
5. (b) Equal 6. (b) Credit
7. (c) Financial year 8. (b) Debit balance
9. (a) Debit balance 10. (b) Real
11. (a) Debit 12. (a) Errors
13. (a) Debit 14. (a) Debit
15. (b) Credit

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1.3

 Rectification of errors 

 Select the most appropriate answers from the alternatives given below
and rewrite the sentences :

1. A Transaction not recoerded at all is called as an error of …………

(a) Principle (b) Complete omission
(c) Partial omission (d) Duplication

2. Rectifications entries are passed in …………

(a) Ladger (b) Balance sheet
(c) Cash book (d) Journal proper

3. Error occurred due to wrong posting are called as errors of …………

(a) Compensating (b) Omission
(c) Principle (d) Commission

4. Wages paid for installation of machinery debited to wages account, is an

error of …………
(a) Omission (b) Principle
(c) Commission (d) Duplication

5. If the trail balance shows a short credit the suspense account will have a
………… balance.
(a) Debit (b) Zero
(c) Credit (d) Nil

6. For which type of error, journal entry is required for rectification …………
(a) One side error (b) Two side error
(c) Overcasting (d) Understanding

7. Payment for purchase of stationery should be recorded through the

…………
(a) Cash Book (b) Purchase Book
(c) Journal Proper (d) Sales Book

8. In error of principle, the debit and the credit are …………

(a) Equal (b) unequal
(c) uncommon (d) Different

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9. If sales book is undercast, sales account should be ………… rectify the

error.
(a) Debited (b) Credited
(c) Cancelled (d) Updated

10. When one error remove the effect of another error, it is called …………
(a) One side error (b) Compensating error
(c) Error of principle (d) Error of omission

11. Difference of trial balance is balance is transferred temporarily to

………… account.
(a) Cash (b) Capital
(c) Drawings (d) Suspense

Answers :

1. (b) Complete omission 2. (d) Journal proper

3. (d) Commission 4. (b) Principle
5. (c) Credit 6. (b) Two side error
7. (a) Cash Book 8. (a) Equal
9. (b) Credited 10. (b) Compensating error
11. (d) Suspense

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Unit – II

2.1

 Sub- sidiary Book 

 Purchase Book, Sales Book, Purchase Return Book, Sales Return Book 

 Select the most appropriate answers from the alternatives given below
and rewrite the sentences :

1. The source for document for recording in sales book is …………

(a) Inward invoice (b) Outward invoice
(c) voucher (d) Cash memo

2. Credit Purchase of machinery is recorded in the …………

(a) Purchase book (b) Cash book
(c) Journal proper (d) Returns outward book

3. ………… is the source document on the basis of which purchase book is

written.
(a) Inward invoice (b) Outward invoice
(c) voucher (d) Debit note

4. ………… is the source document on the basis of which Returns inward

book is written.
(a) Debit note (b) Credit note
(c) Inward invoice (d) Outward Invoice

5. ………… is the source document on the basis of which Purchase Return

book is written.
(a) Debit note (b) Credit note
(c) Inward invoice (d) Outward Invoice

6. Credit purchase of goods are recorded in …………

(a) Sales book (b) Purchase return book
(c) Purchase book (d) Journal proper

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7. Credit sales of goods are recorded in …………

(a) Sales book (b) Purchase return book
(c) Purchase book (d) Journal proper

Answers :

1. (b) Outward invoice 2. (c) Journal proper

3. (a) Inward invoice 4. (b) Credit note
5. (a) Debit note 6. (c) Purchase book
7. (a) Sales book

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2.2

 Cash Book 

 Select the most appropriate answers from the alternatives given below
and rewrite the sentences :

1. Cash column of cash book can never have ………… balance.

(a) Credit (b) Debit
(c) Zero (d) None of the above

2. Any entey recorded on both sides of cash book is known as ………… entry.
(a) Opening (b) Rectifying
(c) Transfer (d) Contra

3. Sub-division of journal is known as ………… book.

(a) Subsidiary (b) Purchase returns
(c) Purchase (d) Journal proper

4. Additional cash introduced in business is recorded in …………

(a) Purchase book (b) Cash book
(c) Journal proper (d) Returns inwards

5. Entry for bad debts is recorded in the …………

(a) Sales book (b) Purchase book
(c) Cash book (d) Journal proper

6. Direct deposite made by customer into our bank is recorded on the

………… side of the cash book.
(a) Payments (b) Credit
(c) Receipts (d) Both

7. The person who draws the cheque and signs on it is the …………
(a) Drawer (b) Drawee
(c) Payee (d) All the above

8. A fixed amount is deposited for a fixed period in ………… deposited

account.
(a) Current (b) Savings
(c) Fixed (d) Recurring

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9. Cash withdrawn from the bank for office use is recorded in a two column
cash book on the receipts side in the ………… column.
(a) Cash (b) Discount
(c) Bank (d) Creditor’s

10. On receipts if a cheque that is not banked on the same day, we debit the
………… A/c.
(a) Cash (b) Discount
(c) Bank (d) Creditor’s

11. The ………… A/c with a bank is most convenient to the traders.
(a) Saving’s (b) Current
(c) Recurring (d) Fixed deposit

12. The ………… is used for depositing money into the bank.
(a) Cheque (b) Withdrawal slip
(c) Pay in slip (d) Voucher

13. All Petty cash payments are handled by the …………

(a) Petty cashier (b) Head cashier
(c) Senior accountant (d) Bank

Answers :

1. (a) Credit 2. (d) Contra

3. (a) Subsidiary 4. (b) Cash book
5. (d) Journal proper 6. (c) Receipts
7. (a) Drawer 8. (c) Fixed
9. (a) Cash 10. (a) Cash
11. (b) Current 12. (c) Pay in slip
13. (a) Petty cashier

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Unit – III

 Final Accounts of Individuals / Sole Traders 

 Select the most appropriate answers from the alternatives given below
and rewrite the sentences :

1. A list of balances of all the accounts in ledger is called …………

(a) Balance sheet (b) Profit & loss A/c
(c) Trading A/c (d) Trial Balance

2. Opening Stock is entered in a Trading A/c on the ………… side

(a) Credit (b) Debit
(c) Assets (d) Liabilities

3. Drawing account is closed by transferring the balance to the …………

account.
(a) Drawing (b) Liabilities
(c) Assets (d) Capital

4. External liabilities plus capital is …………

(a) Net work (b) Assets
(c) Net profit (d) Gross profit

5. Outstanding expenses is a ………… account.

(a) Real (b) Personal
(c) Nominal (d) None of them

6. Deprecation is always charged on ………… assets.

(a) Current (b) Fixed
(c) Fictitious (d) Intangible

7. Prereceived income is shown on ………… side balance sheet.

(a) Assets (b) Liabilities
(c) Credit (d) Debit

8. Royalty on production is a ………… expenses.

(a) Direct (b) Indirect
(c) Capital (d) None of them

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9. Interest on investment is ………… of business concern.

(a) A profit (b) A loss
(c) An expenses (d) An income

10. All items of income are shown on the credit side of the ………… account.
(a) Balance sheet (b) Profit & loss account
(c) Manufacturing A/c (d) None of them

11. Capital is excess of assets over …………

(a) Goodwill (b) Liabilities
(c) Investments (d) Drawings

12. Discount earned is transferred to credit side of …………

(a) Profit & loss account (b) Trading account
(c) Capital account (d) Balance sheet

13. ………… is a statement which shows the finfncial position of business on

a specified date.
(a) Trading account (b) Trial balance
(c) Balance sheet (d) Profit & loss A/c

14. Outstanding expenses are shown on the ………… side of balance sheet.
(a) Liabilities (b) Assets
(c) Right (d) Both

15. Dividend recived is transferred to credit side of ………… A/c.

(a) Trading account (b) Profit & loss account
(c) Goodwill account (d) None of this

16. Debit balance of trading account means …………

(a) Gross loss (b) Net loss
(c) Net profit (d) Gross profit

17. Carriage inward is debited to ………… account.

(a) Trading (b) Profit & loss
(c) capital (d) Drawing

18. Bad debts reserve always shows ………… balance.

(a) Credit (b) Debit
(c) Zero (d) positive

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19. Excess of credit over debit in profit & loss A/c indicates …………
(a) Net profit (b) Gross profit
(c) Gross loss (d) Net loss

20. Trial Balance is a proof of ………… accuracy.

(a) Grammatical (b) Accounting
(c) Arithmetical (d) Posting

21. Closing stock is always valued at cost or market price whichever is

…………
(a) More (b) Less
(c) Equal (d) None of this

22. Prepaid expenses are shown on the ………… side of the balance sheet.
(a) Assets (b) Liabilities
(c) Left (d) Both

23. Reserve for discount on debtors has a ………… balance.

(a) Credit (b) Debit
(c) Nil (d) Positive

24. An amount which is irrecoverable is called …………

(a) Bad debts (b) R.D.D.
(c) Goods debts (d) Doubtful debts

25. Roalty paid on production is shown in the ………… A/c.

(a) Trading (b) Profit & Loss
(c) Capital (d) Drawings

26. Gross profit id transferred to the ………… A/c.

(a) Trading (b) Profit & Loss
(c) Capital (d) Drawings

27. All indirect expenses are debited to ………… A/c.

(a) Trading (b) Capital
(c) Profit & Loss (d) Wages

28. Wear and tear on fixed assets is called …………

(a) Deprecation (b) Appreciation
(c) Gain (d) Direct expenses

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29. Excess of assets over outside liabilities is called …………

(a) Drawings (b) Capital
(c) Expenses (d) Profit

Answers :

1. (d) Trial Balance 2. (b) Debit

3. (d) Capital 4. (b) Assets
5. (b) Personal 6. (b) Fixed
7. (b) Liabilities 8. (a) Direct
9. (d) An income 10. (b) Profit & loss account
11. (b) Liabilities 12. (a) Profit & loss account
13. (c) Balance sheet 14. (a) Liabilities
15. (b) Profit & loss account 16. (a) Gross loss
17. (a) Trading 18. (a) Credit
19. (a) Net profit 20. (c) Arithmetical
21. (b) Less 22. (a) Assets
23. (a) Credit 24. (a) Bad debts
25. (a) Trading 26. (b) Profit & Loss
27. (c) Profit & Loss 28. (a) Deprecation
29. (b) Capital

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Unit – IV

 Depreciation 

 Select the most appropriate answers from the alternatives given below
and rewrite the sentences :

1. In straight line method of deprecation, the amount of depreciation remains

………… every year.
(a) Constant (b) Increased
(c) Fluctuating (d) Decreased

Cost of Asset – …………

2. Depreciation =
Estimated working life of an asset
(a) Installation charges (b) Cost price
(c) Scrap value (d) Selling price

3. Wages paid for installation of machinery, debited to ………… account.

(a) Profit & loss (b) Trading
(c) Wages (d) Machinery

4. Reserves arising from capital receipts are known as …………

(a) Capital reserves (b) Reserve fund
(c) Serect fund (d) General reserve

5. A provision is …………
(a) An approcation of profit (b) Charge on the profit
(c) Investment (d) Current asset

6. Depreciation arises because of …………

(a) Wear and tear (b) Inflaction
(c) Fall in the value of asset (d) Profit

7. The amount of depreciation, charged on machinery is debited to …………

account.
(a) Deprecation (b) Machinery
(c) Provision for depreciation (d) Fixed asset

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8. The profit on sale of an asset is debited to ………… account.

(a) Profit & loss (b) Reserve
(c) Asset (d) Balance sheet

9. The amount of depreciation goes on decreasing in every year under the

………… method.
(a) Fixed instalment (b) Straight line
(c) Revaluation (d) Written down value

10. The amont realised at the end of working life of an asset is known as
…………
(a) Residual value (b) Market price
(c) Original cost (d) Written down value

11. Under ………… system, the amount of depreciation changes every year.
(a) Reducing balance (b) Fixed installment
(c) Depreciation fund (d) Annuity

cost of Asset less scrap values

12. Deprecation =
Estimated working ………… of asset
(a) Life period (b) Hours
(c) Days (d) Months

13. Gradul and permanent decrease in the value of an asset is known as

…………
(a) Loss (b) Profit
(c) Depreciation (d)

Purchase price of Asset + ………… – Scrap Value

14. Depreciation =
Estimated working life of an asset
(a) Residual value (b) Sale price
(c) Installation charges (d) Market price

15. By the amount of depreciation, the value of asset …………

(a) Decrease (b) increases
(c) Becomes zero (d) Remains constant

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16. In fixed instalment system, the amount of depreciation remains …………

every year.
(a) Costant (b) Fluctuating
(c) Increased (d) Decreased

17. Under ………… method, depreciation is calculated on written down value.

(a) Fixed instalment (b) Reducing balance
(c) Depreciation fund (d) Machine hour rate

18. Under ………… system of depreciation, the amount of depreciation does

not change from year to year.
(a) Fixed instalment (b) Reducing balance
(c) Revaluation (d) Depletion

19. At the end of a financial year, balance of depreciation account is

transferred to …………
(a) Asset account (b) Trading account
(c) Profit & loss account (d) None of these

20. Under fixed instalment method, depreciation is charged on …………

(a) Original cost (b) Written down value
(c) Scrap value (d) Market value

21. Depreciation is charged only on the …………

(a) Current assets (b) Intangible assets
(c) Immovable assets (d) Fixed assets

Answers :

1. (a) Constant 2. (c) Scrap value

3. (d) Machinery 4. (a) Capital reserves
5. (b) Charge on the profit 6. (a) Wear and tear
7. (a) Deprecation 8. (c) Asset
9. (d) Written down value 10. (a) Residual value
11. (a) Reducing balance 12. (a) Life period
13. (c) Depreciation 14. (c) Installation charges
15. (a) Decrease 16. (a) Costant
17. (b) Reducing balance 18. (a) Fixed instalment
19. (c) Profit & loss account 20. (a) Original cost
21. (d) Fixed assets

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Unit – V

 Bank Reconciliation Statement 

 Select the most appropriate answers from the alternatives given below
and rewrite the sentences :

1. Bank Reconciliation Statement is prepared by …………

(a) Trader (b) Bank
(c) Seller (d) Student

2. Passbook is ………… of accountholder’s transaction with the bank.

(a) An extract (b) Balance sheet
(c) Balance (d) Written

3. When cheque is ………… into bank, cash book is debited.

(a) Issued (b) Deposited
(c) Dishonoured (d) Written

4. Bank gives overdraft facility to ………… accounthokders.

(a) Savings (b) Current
(c) Fised assets (d) Recurring

5. Overdraft means ………… balance of passbook.

(a) Debit (b) Credit
(c) Closing (d) Opening

6. A copy of customer’s account in the ledger of the bank is called …………

(a) Passbook (b) Cash book
(c) Advice (d) Balance statement

7. Interest on bank overdraft is recorded on ………… side of passbook.

(a) Debit (b) Credit
(c) Both sides (d) Any side

8. Overdraft means ………… balance of passbook.

(a) Debit (b) Credit
(c) Opening (d) Closing

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9. Bank Reconciliation Statement is ………… prepared by an accountholder.

(a) an account (b) a balance sheet
(c) a sheet (d) a statement

10. Bank balance as per cash book means ………… balance.

(a) a debit (b) a credit
(c) an opening (d) a closing

11. Debit balance in the passbook represents …………

(a) Bank balance (b) Bank overdraft
(c) Bank charges (d) Nil balance

12. Overdraft as per cash book means a ………… balance.

(a) Debit (b) Credit
(c) Bank (d) Nil

13. Bank column provided in the two column cash book represents …………
account in the bank.
(a) Current (b) Savings
(c) Fixed deposit (d) Recurring deposite

14. Cheque deposited and credited into the bank ………… the overdraft.
(a) Increase (b) Reduces
(c) Multiplies (d) Added to

Answers :

1. (a) Trader 2. (a) An extract

3. (b) Deposited 4. (b) Current
5. (a) Debit 6. (a) Passbook
7. (a) Debit 8. (a) Debit
9. (d) a statement 10. (a) a debit
11. (b) Bank overdraft 12. (b) Credit
13. (a) Current 14. (b) Reduces

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Jay Mahavir Tutorials

Printed Notes Available

With Paper Solutions

Accounting, Statistics & Tax

English & Marathi Medium

 XI & XII COMMERCE

 B.COM.

M.COM

B.B.A.

M.A.(ECO)

D.TAX

 M.B.A.

––––––––––––

Hitesh J. Shah
8055823700

“Punnyai” Purwar Galli, Jodh Bhavan,

Near Datta Mandir, Khamgaon

HITESH J. SHAH 27