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Important Commerce MCQS

The document contains multiple choice questions related to accounting concepts such as depreciation, stock, gross profit calculation, allocation of expenses, branch accounts, insurance average clause, royalty accounts, receipts and payments account, income and expenditure account. Specifically, it asks about how different accounts would be debited or credited in transactions involving stock, expenses, branch transfers, insurance claims, royalty payments, receipts and payments.

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279 views2 pages

Important Commerce MCQS

The document contains multiple choice questions related to accounting concepts such as depreciation, stock, gross profit calculation, allocation of expenses, branch accounts, insurance average clause, royalty accounts, receipts and payments account, income and expenditure account. Specifically, it asks about how different accounts would be debited or credited in transactions involving stock, expenses, branch transfers, insurance claims, royalty payments, receipts and payments.

Uploaded by

Advance Knowledge
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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The amount of interest is credited by the buyer to……………...

Ans.
vendoraccount
(16) The depreciation in the books of buyer is charged on……………..
Ans.
thecashprice
(17)
Stock at the shop is debited to ………………
Ans.
shopstockaccount
(18) The goods with customers are transferred from stock in shop account……….
Ans.
athire-purchaseprice
(19)

IftherateofgrossprofitfordepartmentXis25%ofthecostanditssalesamounttoRs.1,00,000,thentheamountofgrossprofitwillbeequal
to…………
Ans.
Rs.20,000(20)Repairstomachinesindifferentdepartmentsaretobeallocatedonthebasisof…............
Ans:
actualcost(13)

Under debtors system, the branch account is……………..


Ans.
nominalaccount.
(14)

Petty expenses paid by the branch out of petty cash maintained on imprested systemwillbeshownonthe
……………..branchaccount.
Ans.
debitside
(15)

Under the branch trading and profit and loss account system, the branch account isofthenatureof
…………….
Ans.
personal account
(16)Undertradingandprofitandlosssystem,theremittancesmadetothebranch
are……………tothebranchaccount
Ans.
Credited(17)

Under trading and profit and loss system, the profits of a branch are……….branchaccount
Ans.
debitedtobranchaccount(18)The difference of the two sides of the branch account, under branch trading
and profit and loss account system, shows ………….. from the branch.
Ans.
amountdue
(19)Branch adjustment account is in the nature of………..
Ans.
nominalaccount
(20)If the branch has collected money from a customer of the head office, then (in theheadoffice
books)branchaccountis………..
Ans.
Debited
(21)In case of foreign branches, the remittances to and from head office should beconverted
at……………
Ans.
actual rate at which the remittances were made.(22)Cash remitted by branch but not received by the
head office is debited by the headoffice to………………
Ans.
cash-in-transitaccount.(23)Goods sent by the head office to the branch not received by the branch are
credited by H.O. to………………
Ans.
branch account(24)Goods sent by branch x to branch y, will be debited to………………
Ans.
branch y(25)Closing stock + cost of goods sold—Purchases =…………………
Ans.
openingstock(26)The main object of the average clause is to discourage……………..
Ans.
underinsurance(27)

Under the average clause, the loss is suffered by both insurer and insured ………a.
Ans.
intheratioofriskcovered(28)

Royaltyaccountisinthenatureof………..a.
Ans.
nminalaccount(28)If the right to recoup the shortcomings has expired, they are
transferred by thelessee to…………
Ans.
Profitandlossaccount(29)The receipts and payments account records receipts and payments
of both apitaland …………….nature.
Ans.
revenue( 3 0 ) I n c o m e a n d E x p e n d i t u r e a c c u n t i s a … … … … … … …
Ans.
nominalaccount(31)The income and expenditure account begins with …………….
Ans.
nobalance(16)When the lessor receives payment, the credits — (i)Lesseeaccount(ii)Royaltyaccount(iii)
Shortworkingsaccount.
Ans.
(i)Lesseeaccount( 1 7 ) R o ya l t y e a r n e d b y t h e l e s s e e i s c r e d i t e d t o — (i)Sub-lesseeaccount

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