1. Which of the following is correct?

(a) Assets = Liabilities + Capital;

(b) Assets = Capital - Liabilities;
(c) Assets = Liabilities - Capital;
(d) Assets = External Equities;

2. Which of the following is correct?^

(a) Profit & loss = Closing Capital – Drawings + Opening Capital - Introduction of Capital.
(b) Profit & Loss = Closing Capital + Drawings - Introduction of Capital - Openiong Capital.
(c) Profit & Loss = Closing Capital + Introduction of Capital – Drawings – Opening Capital.
(d) Profit & Loss = Opening Capital + Drawing - Introduction of Capital - Closing Capital.

3. Which of the following is correct?

(a) Opening Capital = Closing Capital + Drawings - Profit + Introduction of Capital.
(b) Opening Capital = Closing Capital - Drawings - Profit - Introduction of Capital.
(c) Opening Capital = Closing Capital + Drawings - Introduction of Capital - Profit. (d) Opening Capital = Closing Capital + Drawings - Loss -
Introduction of Capital.

4. Which of the following is Correct?

(a) Closing Capital = Profit + Opening Capital + Introduction of Capital - Drawing.
(b) Closing Capital = Opening Capital + Introduction of Capital - Drawings + Profit.
(c) Closing Capital = Opening Capital - Introduction of Capital - Drawings - Profit.
(d) Closing Capital = Opening Capital + Introduction of Capital - Drawings – Profit.

5. A partnership firm borrows a sum of money, there will be;

(a) Decrease in Capital;
(b) Increase of Capital;
(c) Capital is not affected;
(d) Increase in Expense.

6. A business has Assets 80,000 and Liabilities *30,000 as on 1.1.2024. Its Capital on that date will be;
(a) 50,000;
(b) 1,10,000;
(c) 80,000
(d) 30,000.

7. Tapan has capital 60,000 and Liabilities 20,000. His Assets will be
(a) 60,000;
(b) 80,000;
(c) 20,000
(d) None of these.

8. Swapan has as on 1.4.2024 Capital ₹ 1,00,000 and Assets 1,40,000. His Liabilities will be;
(a) 1,00,000;
(b) 1,40,000
(c) 40,000;
(d) None of these.

9. If the proprietors bring the personal assets in the business there will be;
(a) Increase in Capital;
(b) Decrease in Capital;
(c) Capital is not affected;
(d) Increase in Liabilities.

10. If loss is resulted in a proprietory business, there will be;

(a) Increase of Capital;
(b) Decrease of Capital;
(c) No effect on Capital;
(d) None of these.

11. Purchase of Machine by cash means;

(a) Decrease in asset and increase in liability;
(b) Increase in asset and decrease in asset;
(c) Increase in asset and decrease in liability;
(d) Decrease in assets and increase in capital.
12. Payment to a Creditor means;
(a) Increase in asset and decrease in liability;
(b) Decrease in asset and decrease in liability;
(c) Decrease in asset and increase in liability;
(d) Increase in asset and increase in liability;

13. Purchase of Furniture on credit means;

(a) Decrease in asset and increase in liability;
(b) Increase in asset and increase in liability;
(c) Increase in asset and decrease in liability;
(d) Decrease in asset and decrease in liability;

14. Which of the following is correct?

(a) Assets = Liabilities - Capital,
(b) Assets = Capital - Liabilities,
(c) Assets = Capital + Liabilities,
(d) Llabilities = Capital +Assets.

15. If liabilities to the third parties are ₹60,000 and total assets of an organization are 2,50,000 then owner's capital will be
(a) 3,10,000,
(b) 1,90,000
(c) 2,50,000,
(d) 60,000.

16. The liabilities to third party of a business are *60,000 and the capital is 90,000. The total assets of the business are-
(a) 30,000
(b)1,50,000
(c) 60,000
(d) 90,000

17. What will be the amount of liability to the owners, if total assets of an organisation are 1,20,000 and liabilities to the third party of
50,000?
(a) 1,70,000;
(b) 1,20,000;
(c) 70,000;
(d) 50,000.

18. Which of the following is correct?

(a) Assets = Capital + Liability;
(b) Assets = Liability - Capital;
(c) Assets = Capital - Liability;
(d) Assets = Capital + Reserve & Surplus.

19. The capital of a business firm is₹ 1,00,000, Reserve & Surplus 40,000 and external 18 liability ₹25,000. Total Assets of the business are-
(a) 1,15,000;
(b) 35,000;
(c) 1,65,000;
(d) 1,40,000.

20, Capital of an enterprise is ₹.6,00,000 and liabilities are .4,00,000. What will be the 15 value of assets of the enterprise?
(a) 9,00,000;
(b) 2,00,000
(c) 1,00,000;
(d) 10,00,000.

21. Aditi started business with a capital of 16 ₹.5,60,000. The impact of this transaction will be-
(a) Decrease of asset, decrease of capital;
(b) Increase of asset, increase of capital;
(c) Increase of liabilities, decrease of capital;
(d) Decrease of liabilities, increase of capital.

22. The Liabilities to a third party of a business are ₹.50,000 and the capital is .80,000. The total assets of the business are
(a) 30,000;
(b) 1,30,000
(c) 50,000;
(d) None of these.
23. Which of the following is correct?
(a) Assets = Capital - Liabilities;
(b) Assets External Equities;
(c) Assets Liabilities - Capital;
(d) Assets Liabilities + Capital.

24. Which of the following is correct?

(a) Profit or Loss =Closing Capital + Drawings - Introduction of Capital – opening capital;
(b) Profit Or Loss = Closing Capital - Drawings + Opening Capital - Introduction of Capital;
(c) Profit or Loss = Closing Capital + Introduction of Capital - Drawings - Opening Capital;
(d) Profit or Loss = Opening Capital + Drawings - Introduction of Capital - Closing Capital.

25. Which of the following is correct?

(a) Opening Capital = Closing Capital + Drawings + Profit - Introduction of capital;
(b) Opening Capital = Closing Capital + Drawings - Introduction of capital - Profit;
(c) Opening Capital = Closing Capital Drawings - Profit + Introduction of capital;
(d) Opening Capital = Closing Capital + Drawings - Loss - Introduction of capital.

26. Which of the following is correct?

(a) Closing Capital = Opening Capital + Introduction of Capital - Drawings + Profit;
(b) Closing Capital = Opening Capital - Introduction of Capital - Drawings - Profit;
(c) Closing Capital = Profit + Opening Capital + Introduction of Capital - Drawings;
(d) Closing Capital = Opening Capital + Introduction of Capital - Drawings - Profit.

27. A partnership firm borrows a sum of money, there will be-

(a) Decrease in Capital;
(b) Increase in Capital;
(c) Capital unchanged;
(d) Increase in Expenses.

28. A business has Assets ₹80,000 and Liabilities *.30,000 as on 1.1.2023. Its capital on that date will be-
(a) 50,000;
(b) 1,10,000;
(c) 80,000;
(d) 30,000.

29. Tejraj has Capital ₹.60,000 and Liabilities .20,000. His assets will be-
(a) 60,000;
(b) 80,000;
(c) 20,000;
(d) None of these.

30. Amrit has on 1.4.2023 Capital .1,00,000 and Assets 1,40,000. It's Liabilities will be
(a) 1,00,000;
(b) 1,40,000;
(c) 40,000;
(d) 2,40,000.

31. If the proprietor brings the personal assets in the business, there will be
(a) Increase in Capital;
(d) Decrease in Capital;
(c) Capital is not affected;
(d) Increase in Liabilities.

32. If loss is resulted in a proprietary business, there will be-

(a) Increase in Capital;
(b) Decrease in Capital;
(c) No effect on Capital;
(d) None of these.

33. Payment of Salary to Pawan, the accountant will-

(a) Decrease assets and capital;
(b) Decrease assets and liabilities;
(c) Increase assets and decrease capital;
(d) Decrease assets and increase capital.

34. Kundan spent 7.5,000 as repair charges on purchase of the machine. This transaction will-
(a) Decrease assets and capital;
(b) Increase and decrease liability;
(c) Increase and decrease assets;
(d) Increase and decrease capital.

35. How many sides does an account have?

(a) One;
(b) Two;
(c) Three;
(d) None of these.

36. The excess of assets over liabilities of the business refers to:
(a) Net Worth;
(b) Owner's Equity;
(c) Capital;
(d) All of these.

37. Purchase of Machinery on credit means:

(a) Decrease in asset and increase in liability;
(b) Increase in asset and decrease in liability;
(c) Decrease in asset and decrease in asset;
(d) Increase in asset and increase in liability.

38. The account which is debited for payment of Life Insurance premium of the Proprietor is-
(a) Life Insurance Account;
(b) Insurance Premium A/c;
(d) Drawings A/c;
(c) Cash A/c.

39. Withdrawal of cash from business bank account for personal account by the proprietor is credited to-
(a) Cash A/c;
(b) Bank A/c;
(c) Drawings A/c;
(d) Capital A/c.

40. Sale of 2 almirahs @ ₹.12,000 each by Furniture Mart in cash to a customer is credited to-
(a) Sales A/c;
(b) Furniture A/c;
(c) Cash A/c;
(d) Drawings A/c

41. The account which is debited for purchase of Stationery by Bharat Stationery Bros. is-
(a) Stationery A/c;
(b) Purchase A/c;
(c) Bank A/c;
(d) Drawings A/c.

42. The account which is debited for payment of income tax of the proprietor is -
(a) Income Tax Account;
(bl Sundry Expenses Account;
(c) Drawings Account;
(d) Capital Account.

43. The account which is debited for distribution of samples at a free of cost among the customers is
(a) Advertisement Account;
(b) Customers Account;
(c) Free Sample Account;
(d) Sales Promotion Expenses Account.

44. The account which is credited for purchase of machine by cheque for the business drawn on savings account of the proprietor is-
(a) Bank Account;
(b) Capital Account;
(c) Drawings Account;
(d) Business Account.

45. The account which is credited for sale of computer by Capital Electronic is-
(a) Sales Account;
(b) Office Equipment Account;
(c) Computer Account;
(d) Bank Account.

46. The account which is debited for trade discount allowed to the retailers on sale of goods by the wholesaler is-
(a) Trade Discount A/c;
(b) Discount Allowed A/c;
(c) No Account;
(d) None of these.

47. The account which is debited for purchase of 33 stationery for office use is
(a) Stationery Account;
(b) Purchase Account;
(c) General Expenses Account;
(d) Office Expenses Account.

48. The account which is debited for purchase of Laptop for office use is-
(a) Laptop Account;
(b) Office Equipment Account;
(cl Purchase Account;
(d) Office assets Account.

49. The account which is credited for purchase of a Motor Car from Singh Motors is-
(a) Cash Account;
(b) Bank Account;
(c) Singh Motors Account;
(d) Purchases Account.

50. For goods withdrawn from business stock for personal use of the proprietor is credited to
(a) Purchases Account;
(b) Drawings Account;
(b) Sales Account;
(d) Goods Account

51. The account which is debited for payment of GST on inter-state purchase is-
(a) Input CGST and Input SGST Account;
(b) Input IGST Account;
(c) Output IGST Account;
(d) Output CGST and Output SGST Account.

52. The account which is credited for charging GST on intra-state sale is-
(a) Output IGST Account;
(b) Output CGST and Output SGST;
(c) Input IGST Account;
(d) Input CGST and Input SGST Account.

53. The account which is credited for amount received from post office recurring deposited brought in by the proprietor into the business is-
(a) Drawings Account;
(b) Capital Account;
(c) ash Account;
(d) General Fund Account.

54. Withdrawal of cash from business bank account for personal account by the proprietor is debited to-
(a) Cash A/c;
(b) Bank A/c;
(c) Drawings A/c;
(d) Capital A/c.

55. The account which is debited for carriage for bringing the goods is
(a) Carriage Inward Account;
(b) Carriage Outward Account;
(c) Purchase Account;
(d) Sales Account.

56. The account which is debited for goods stolen is-

(a) Abnormal Loss Account;
(b) Loss by theft Account;
(c) Goods, Stolen Account;
(d) Normal Loss Account.
57. The account which is credited for sale of office machine at a loss is-
(a) Machinery Account;
(b) Sales Account;
(c) Capital Account;
(d) Goods Account.

58. Which of the following accounts belongs to traditional classification of accounts?

(a) Expenses Account;
(b) Real Account;
(c) Liabilities Account;
(d) Proprietorship Account.

59. Journal is the book of;

(a) Primary entry;
(b) Secondary entry;
(c) Final entry,
(d) No entry.

60. Journal entries are made;

(a) Before ledger posting;
(b) After ledger posting;
(c) Before trial balance;
(d) After trial balance.

61. For goods purchased for business, debit is made to;

(a) Goods in Transit A/c;
(b) Goods A/c;
(c) Purchases A/c;
(d) Sales A/c.

62. For machinery purchased, debit is done to;

(a) Goods A/c;
(b) Purchases A/c;
(c) Asset A/c;
(d) Machinery A/c.

63. For furniture purchased for household use of 30 proprietor the debit is made to;
(a) Furniture A/c;
(b) Purchases A/c;
(c) Assets A/c;
(d) Drawings A/c.

64. The debit account to be used for material purchased for production is;
(a) Material A/c;
(b) Purchases A/c;
(c) Production A/c;
(d) Goods A/c.

65. The credit account to be used for purchase of goods on credit is;
(a) Purchases A/c;
(b) Goods A/c;
(c) Supplier A/c;
(d) Cash A/c.

66. The debit account to be used for goods purchased as office stationery is;
(a) Purchases A/c;
(b) Goods A/c;
© Office A/c;
(d) Office Stationery A/c.

67. L. F. is a column of;

(a) Ledger;
(b) Journal;
© Voucher;
(d) None of these.

68. Journal is a book of;

(a) Prime Entry,
(b) Final Entry;
ⓒ Secondary Entry;
(d) None of these.

69. L. F. column in the Journal is filled up at the time of;

(a) Casting;
(b) Balancing;
(c) Posting;
(d) Tallying.

70. The process of recording transactions in the books of Prime Entry means;
(a) Casting;
(b) Balancing;
(c) Journalising;
(d) Posting.

71. Purchase of goods on credit from Bimal is ecorded as-

(a) Debit Purchases A/c; Credit Cash A/c,
(b) Debit Bimal A/c; Credit Purchases A/c,
(c) Debit Purchases A/c; Credit Bimal A/c,
(d) Debit Stock A/c; Credit Purchases A/c.

72. The account is to be debited for the purchase (26) of furniture use in the office
(a) Purchase A/c;
(b) Furniture A/c;
(c) Goods A/c;
(d) Office A/c.

72. Journal is
(a) Primary book of accounts;
⑥ Final book of accounts;
ⓒ Secondary book of accounts;
(d) None of these.

74. Journal is a book of:

(Al Prime Entry;
(b) Final Entry;
ⓒ Secondary Entry;
(d) All cash transactions.

75. L.F. is a column of:

(a) Ledger;
(N) Trial Balance;
© Journal;
(d) Trading Account.

76. L.F. column in the Journal is filled up at the time of:

(a) Casting;
(b) Posting;
(c) Balancing;
(d) Talling.

77. The process of recording transactions in the book of prime entry means:
(a) Journalizing;
(b) Casting;
(c) Balancing;
(d) Posting.

78. Rent paid to landlord should be debited to:

(a) Landlord Account;
(b) Rent Account;
(c) Capital Account;
(d) Drawings Account.

79. On selling old newspapers, Which account will be credited?:

(a) Miscellaneous Income Account
(b) Sales Account;
(c) Newspapers Account
(d) Goods Account.

80. Journal records the transactions of a firm in a:

(a) Periodical manner;
(b) Chronological order;
(c) Systematic order;
(d)Summarised Manner.

81. Installation charges of Machinery debited to:

(a) Wages Account;
⑥ Machinery Account;
(c) Salary Account;
(d) None of these.

82. The term 'Journal' is derived from a French word:

@Jar;
(b) Jaur;
(c) Jour;
(d) None of these.

83. For cash withdrawn from the business for personal use, the account to be debited is:
(a) Drawings Account;
(b) Capital Account;
(c) Proprietor's Personal Account;
(d) None of these.

84. Brief description of transaction is known as:

(a) Explanation;
(b) Journalisation;
(c) Narration;
(d) None of these.

85. Which of the following book may be termed as subsidiary book?

(a) Journal;
(b) Trial Balance;
(c) Ledger;
(d) None of these.

86. For goods used as stationery, the account to be credited:

(a) Sales Account;
(b) Purchase Account;
(c) Capital Account;
(d) None of these.

87. Purchase of an asset is:

(a) An Expenses;
(b) An Income;
(c) An Asset;
(d) None of these.

88. Wages paid to domestic servant from business account on cash will:
(a) Decrease the profit;
⑥Reduce the cash as well as the capital of the business;
(c) Reduce the capital of the business;
(d) Decrease in cash only.

89. Journal is a book of:

(a) Original Entry;
(b) Final Entry;
(c) Internal transactions;
(d) Non-cash transactions.

90. No entry is made in the books of accounts of:

(a) Cash Discount;
(b) Discount Allowed;
(c) Trade Discount;
(d) Discount Received.
91. Computer purchased for office use should be debited to:
(a) Office Equipment Account;
(b) Office Expenses Account;
(c) Purchase Account;
(d) None of these.

92. Which account will be credited on giving the goods as charity?

(a) Sales Account;
(b) Purchase Account;
(c) Drawings Account;
(d) Charity Account.

93. Which account will be debited on taking goods from the business for personal use?
(a) Capital Account;
(b) Sales Account;
(c) Drawings Account;
(d) Purchase Account.

94. Purchase of goods on credit from Viv is recorded as:

(a) Purchase A/c Debit and Cash A/c Credit;
(b) Viv A/c Debit and Purchase A/c Credit;
(c) Purchase A/c Debit and Viv A/c Credit;
(d) Stock A/c Debit and Viv A/c Credit.

95. The account which is debited for payment of life insurance premium of proprietor is :
(a) Life Insurance A/c,
(b) Insurance Premium A/c;
(c) Cash A/c;
(d) Drawings A/c

96. Sale of goods on credit to Dinesh is recorded as

(a) Dinesh A/c Debit and Sales A/c Credit;
(b) Cash A/c Debit and Sales A/c Credit;
(c) Sales A/c Debit and Dinesh A/c Credit;
(d) Sales A/c Debit and Cash A/c Credit.

97. Paid Electricity Bill by NEFT ₹.500 is recorded as:

(a) Electricity Expenses A/c Debit and Cash A/c Credit;
(b) Electricity Expenses A/c Debit and Bank A/c credit;
(c) Electricity Expenses A/c Debit and NEFT A/c Credit;
(d) Electricity Expenses A/c Debit and Customer A/c Credit.

98. Goods Returned by Vishesh ₹.4,500 is recorded as:

(a) Vishesh A/c Debit and Sales Return A/c Credit;
(b) Purchase Return A/c Debit and Vishesh A/c Credit;
(c) Sales Return A/c Debit and Vishesh A/c Credit;
(d) Sales Return A/c Debit and Cash A/c Credit.

99. Goods Stolen costing ₹.45,000 is recorded as:

(a) Purchase A/c Debit and Goods Stolen A/c Credit;
(b) Cash A/c Debit and Goods Stolen A/c Credit;
(c) Purchases A/c Debit and Loss by Theft A/c Credit;
(d) Loss by Theft A/c Debit and Purchase A/c Credit.

100. Paid Interest on Loan ₹.6,000 by Credit Card is recorded as;

(a) Interest on Loan A/c Debit and Bank A/c Credit;
(b) Interest on Loan A/c Debit and Cash A/c Credit;
(c) Loan A/c Debit and Bank A/c Credit;
(d) Loan A/c Debit and Cash A/c

101. Goods Destroyed by fire is recorded as:

(a) Goods Destroyed by Fire A/c Debit and Closing Stock A/c Credit;
(b) Goods Destroyed by Fire A/c Debit and Purchase A/c Credit;
(c) Purchase A/c Debit and Goods Destroyed by Fire A/c;
(d) Goods Destroyed by Fire A/c Debit and Insurance Company A/c Credit.

102. Purchased goods from Raghunath Bros. costing .2,10,000 and payment made by RTGS after getting cash discount of ₹.10,000 is
recorded as:
(a) Raghunath Bros. A/c Debit ₹.2,10,000, Bank A/c Credit *. 2,00,000 and Discount Received A/c Credit ₹.10,000;
(b) Raghunath Bros. A/c Debit ₹.2,00,000, Discount Allowed A/c Debit ₹.10,000 and Bank A/c Credit . 2,10,000;
(c) Purchase A/c Debit ₹.2,10,000, Bank A/c Credit .2,00,000 and Discount Received A/c Credit .10,000;
(d) Purchase A/c Debit .2,10,000, RTGS A/c Credit .2,00,000 and Discount Received A/c Credit .10,000.

103. Received ₹.2,50,000 by RTGS from Kohil Bros. and allowed them discount ₹.20,000 is recorded as:
(a) Cash A/c Debit ₹.2,50,000, Discount Allowed A/c Debit ₹.20,000 and Kohil Bros. A/c Credit .2,70,000;
(d) RTGS A/c Debit ₹.2,50,000, Discount Allowed A/c Debit *.20,000 and Kohil Bros. A/c Credit .2,70,000;
(c) RTGS A/c Debit ₹.2,70,000, Discount Allowed A/c Credit ₹.20,000 and Kohil Bros. A/c Credit .2,50,000;
(d) Bank A/c Debit ₹.2,50,000, Discount Allowed A/c Debit ₹.20,000 and Kohil Bros. A/c Credit .2,70,000;

104. Goods costing ₹.40,000 were damaged in transit; a claim was made on railway authorities for the same is recorded as:
(a) Railway Claim A/c Debit and Purchases A/c Credit;
(d) Railway Authorities A/c Debit and Purchase A/c Credit;
(c) Goods Damaged in Transit A/c Debit and Purchase A/c Credit;
(d) Admitted Insurance Claim A/c Debit and Purchase A/c Credit.

105. Received an order for goods for ₹.80,000 from M/s Mohan Lal & Sons is recorded as:
(a) M/s Mohan Lal & Sons A/c Debit and Sales A/c Credit;
(b) No Entry;
(c) M/s Mohan Lal & Sons A/c Debit and Order of Mohan Lal & Sons A/c Credit;
(d) Order from Mohan Lal & Sons A/c Debit and Sales A/c Credit.

106. Paid Income Tax of ₹.80,000 by NEFT is recorded as:

(a) Income Tax A/c Debit and NEFT A/c Credit;
(b) Income Tax A/c Debit and Capital A/c Credit;
(c) Drawings A/c Debit and Bank A/c Credit;
(d) Drawings A/c Debit and Cash A/c Credit.

Ans :
a,b,c,a,c,a,b,c,a,b,b,b,b,c,b,b,c,a,c,d,b,b,d,a,b,c,c,a,b,c,a,b,a,c,b,c,d,c,b,a,b,c,d,b,a,c,a,b,c,a,b,a,b,c,a,c,a,b,a,a,c,d,d,b,c,d,b,a,c,c,c,b,a,a,c,b,
a,b,a,b,b,c,a,c,a,b,c,b,a,c,a,b,c,c,d,a,b,c,d,a,b,c,d,c,d,a,b,c,d,a,b,c.