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Account for Manager Online Assignment Set 1
Accounting for manager MCQ Test
Accounting for manager MCQ Test Assignment for your amity mba bba courses, ignou mba, imt cdl, smu and upes management program. This is important online mcq question answer for various distance learning program.
Q1: 1,000 kg of apples are consigned to a wholesaler, the cost being Rs.3 per kg plus Rs.400 of freight, it is known that a loss of 15% is unavoidable. The cost per kg will be
Answer
Answer: $4
Q2: A and B enter into a Joint Venture by opening a joint bank account contributing Rs.10,00,000. The profit sharing ratio between A and B is 3:2. How much amount to be contributed by A
Answer
Answer: $600000
Q3: A and B enter into a joint venture for purchase and sale of Typewriter. A purchased old Typewriter costing Rs.1,00,000. Repairing expenses Rs.10,000, ink expenses Rs.10,000. B sold it at 20% margin on selling price. The sales value will be
Answer
Answer: $150000
Q4: A and B enter into a joint venture sharing profit and losses equally. A purchased 5,000 kg of rice @ Rs.50/kg. B purchased 1,000 kg of wheat @ Rs.60/kg. A sold 1,000 kg of wheat @ Rs.70/ kg and B sold 5,000 kg of rice @ Rs.60/kg. The profit on venture when same sets of books is maintained will be
Answer
Answer: $60000
Q5: A and B enter into a joint venture sharing profit and losses in the ratio 2:1. A purchased goods costing Rs.2,00,000. B sold the goods for Rs.2,50,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. The profit on venture will be
Answer
Answer: $35500
Q6: A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs.200,000. B sold it for Rs.3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be
Answer
Answer: $20000
Q7: A and B enter into a joint venture sharing profits and losses equally. A purchased 5000 kg of rice @ Rs.50/kg. B purchased 1,000 kg of wheat @ Rs.60/kg. A sold 1,000 kg of wheat @ Rs.70/ kg and B sold 5,000 kg of rice @ Rs.60/kg. What will be the final remittance
Answer
Answer: B will remit Rs.2,10,000 to A
Q8: A and B enter into a joint venture sharing profits and losses in the ratio 2:3. Goods purchased by A for Rs.45,000. Expenses incurred by A Rs.13,500 and by B Rs.5,200. B sold the goods for Rs. 85,000. Remaining Inventories taken over by B at Rs.7,200. What will be the final remittance to be made by B to A
Answer
Answer: $69900
Q9: A and B enter into a joint venture to underwrite shares of K Ltd. K Ltd make an equity issue of 2,00,000 equity shares. 80% of the shares underwritten by the venturer. 1,60,000 shares are subscribed by the public. How many shares are to be subscribed by the venturer
Answer
Answer: 32,000 shares
Q10: A and B enter into a joint venture to underwrite the shares of K Ltd. K Ltd make an equity issue of 1,00,000 equity shares of Rs.10 each. 80% of the issue was subscribed by the public. The profit sharing ratio between A and B is 3:2. The balance shares not subscribed by the public, purchased by A and B in profit sharing ratio. How many shares to be purchased by A
Answer
Answer: 12,000 shares
Q11: A and B enter into a venture sharing profits and losses in the ratio 2:3. Goods purchased by A for Rs.45,000. Expenses incurred by A, Rs.13,500 and by B Rs.5,200. B sold the goods for Rs. 85,000. Remaining Inventories taken over by B at Rs.7,200. The profit on venture will be
Answer
Answer: $28500
Q12: A and B enter into joint venture sharing profit and loss equally. A purchased 100 kg of rice @ Rs.20/kg. Brokerage paid Rs.200, carriage paid Rs.300. B sold 90 kg of rice @ Rs.22/kg. Balance rice were taken over by B at cost. The value of rice taken over to be recorded in joint venture will be
Answer
Answer: $250
Q13: A and B entered into a joint venture. They opened a joint bank account by contributing Rs.2,00,000 each. The expenses incurred on venture is exactly equal to Rs.2,00,000. Once the work is completed, contract money received by cheque Rs.4,00,000 and in shares Rs.50,000. The shares are sold for Rs.40,000. What will be the profit on venture
Answer
Answer: $240000
Q14: A and B purchased a piece of land for Rs.20,000 and sold it for Rs.60,000 in 2011. Originally A had contributed Rs.12,000 and B Rs.8,000. What will be the profit on venture
Answer
Answer: $40000
Q15: A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs.60,000 and incurs expenses amounting Rs.6,000. B supplies goods to the value of Rs.16,000 and his expenses amount to Rs.3,000. B sells goods on behalf of the joint venture and realizes Rs.1,20,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. How much amount, B will pay to A as final settlement
Answer
Answer: $83400
Q16: A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs.60,000 and incurs expenses amounting s.6,000. B supplies goods to the value of Rs.14,000 and his expenses amount to Rs.1,000. B sells goods on behalf of the joint venture and realizes Rs.1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture
Answer
Answer: $14000
Q17: A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs.80,000 and incurs expenses amounting Rs.6,000. B supplies goods to the value of Rs.14,000 and his expenses amount to Rs.2,000. B sells goods on behalf of the joint venture and realizes Rs.1,50,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out A’s share of profit on venture
Answer
Answer: $24300
Q18: A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. A supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. B supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92,000. B is entitled to a commission of 5 percent on sales. B settles his account by bank draft. What will be the final remittance
Answer
Answer: B will remit Rs.69,160 to A
Q19: A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. A supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. B supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92,000. B is entitled to a commission of 5 percent on sales. B settles his account by bank draft. What will be the profit on venture
Answer
Answer: $17200
Q20: A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from Inventories Rs.10,000. He pays expenses amounting to Rs.1,000. V incurs further expenses on carriage Rs.1,000. He receives cash for sales Rs.15,000. He also takes over goods to the value of Rs.2,000. Find out profit on venture
Answer
Answer: $5000
Q21: A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from Inventories Rs.10,000. He pays expenses amounting to Rs.1,000. V incurs further expenses on carriage Rs.1,000. He receives cash for sales Rs.15,000. He also takes over goods to the value of Rs.2,000. What will be the amount to be remitted by V to A?
Answer
Answer: $13500
Q22: A bill cannot be endorsed more than two times-T/F
Answer
Answer: FALSE
Q23: A bill contains an unconditional promise to pay-T/F
Answer
Answer: FALSE
Q24: A bill drawn in India, on a person resident outside India and made payable outside India
Answer
Answer: This is foreign bill
Q25: A bill drawn on a person resident in India made payable in India
Answer
Answer: This is not a foreign bill
Q26: A bill drawn outside India, made payable in India
Answer
Answer: This is foreign bill
Q27: A bill drawn outside India, on a person resident outside India
Answer
Answer: This is foreign bill
Q28: A bill is drawn by purchaser-T/F
Answer
Answer: FALSE
Q29: A bill is drawn on 29th Jan. 2011 for one month after date. The date of acceptance is 2nd Feb.2011. The maturity date of the bill will be
Answer
Answer: 3rd March
Q30: A bill of Rs.12,000 was discounted by A with the banker for Rs.11,880. At maturity, the bill returned dishonoured, noting charges Rs.20. How much amount will the bank deduct from A’s bank balance at the time of such dishonour
Answer
Answer: $12020
Q31: A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a joint venture, profits being divided equally, A paid Rs.1,000 for freight and insurance. A draws a bill on B for Rs.10,000. A got it discounted at Rs.9,500. B sold the goods for Rs.15,000. Commission payable to B, Rs.500. Find out the profit on venture
Answer
Answer: $3000
Q32: A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a joint venture, profits being divided equally, A paid Rs.1,000 for freight and insurance. A draws a bill on B for Rs.10,000. A got it discounted at Rs.9,500. B sold the goods for Rs.15,000. Commission payable to B, Rs.500. The amount to be remitted by B to A will be
Answer
Answer: $3000
Q33: A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a joint venture, profits being divided equally. A draws a bill on B for an amount equivalent to 80% of cost on consignment. The amount of bill will be
Answer
Answer: $8000
Q34: A company sends its cars to dealers on ‘sale or return’ basis. All such transactions are however treated like actual sales and are passed through the sales day book. Just before the end of the financial year, two cars which had cost Rs.55,000 each have been sent on ‘sale or return’ and have been debited to customers at Rs.75,000 each, cost of goods lying with the customers will be
Answer
Answer: $110000.00
Q35: A draws a bill on B for Rs.1,00,000. A endorsed the bill to C. The bill return dishonoured. Noting charges Rs.1,000. B request A to accept the amount at 2% discount by a single cheque. The cheque amount will be
Answer
Answer: $98980
Q36: A draws a bill on B for Rs.30,000. A wants to endorse it to C in settlement of Rs.35,000 at 2% discount with the help of B’s acceptance and balance in cash. How much cash A will pay to B
Answer
Answer: $4300
Q37: A draws a bill on B for Rs.4,500 for mutual accommodation in the ratio 2:1. A got it discounted at Rs.4,230 and remitted 1/3rd of the proceeds to B. At the time of maturity, how much amount A should remit to B such that B can pay off the bill
Answer
Answer: $3000
Q38: A draws a bill on B for Rs.50,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs.500. 40 paise in a rupee is recovered from B’s estate. The amount of deficiency to be recorded on insolvency in the books of B will be
Answer
Answer: $30300
Q39: A draws a bill on B for Rs.50,000. A endorsed it to C in full settlement of Rs.50,500. Noting charges of Rs.200 as the bill returned dishonoured. A want to pay the amount to C at 2 % discount. The amount to be paid by A to C will be
Answer
Answer: $49686
Q40: A drew a bill on B for Rs.50,000 for 3 months. Proceeds are to be shared equally. A got the bill discounted at 12% p.a. and remits required proceeds to B. The amount of such remittance will be
Answer
Answer: $24250
Q41: A merchant sends out his goods casually to his dealers on approval basis. All such transactions are, however, recorded as actual sales and are passed through the sales book. On 31-12-2011, it was found that 100 articles at a sale price of 200 each sent on approval basis were recorded as actual sales at that price. The sale price was made at cost plus 25%. The amount of Inventories on approval will be amounting
Answer
Answer: $16000.00
Q42: A of Ahmedabad sent out certain goods so as to show a profit of 20% on invoice price. 1/10th of the goods were lost in transit. The cost price of goods lost is Rs.20,000. The invoice value of goods sent out is
Answer
Answer: $250000
Q43: A of Kolkata sends out 500 boxes to B of Delhi costing Rs.200 each. Consignor’s expenses Rs.5,000. 1/5th of the boxes were still in transit. 3/4th of the goods received by consignee, were sold. The amount of goods still in transit will be
Answer
Answer: $21000
Q44: A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is Rs.12,500 were destroyed. 75% of the total consignment is sold by B at Rs.1,00,000. What will be the amount of commission payable to B
Answer
Answer: $10937.50
Q45: A proforma invoice is sent by
Answer
Answer: Consignor to Consignee
Q46: A purchased 1000 kg of rice costing Rs.200 per kg. Paid carriage Rs.2,000 and insurance Rs.3,000. 4/5th of the same were sold by B at Rs.250 per kg. Remaining Inventories were taken over by B at cost. The amount of Inventories taken over will be
Answer
Answer: $41000
Q47: A purchased goods costing Rs.1,00,000. B sold the goods for Rs.1,50,000. Profit sharing ratio between A and B equal. If same sets of books is maintained, what will be the final remittance
Answer
Answer: B will remit Rs.1,25,000 to A
Q48: A purchased goods costing Rs.2,00,000, B sold 4/5th of the goods for Rs.2,50,000. Balance goods were taken over by B at cost less 20%. If same sets of books is maintained, find out profit on venture
Answer
Answer: $82000
Q49: A purchased goods costing Rs.2,00,000. B sold the goods for Rs.2,80,000. Unused material costing Rs.10,000 taken over by A at Rs.8,000. A is entitled to get 1% commission on purchase. B is entitled to get 2% commission on sales. Profit sharing ratio equal. A’s share of profit on venture will be
Answer
Answer: $40200
Q50: A purchased goods costing Rs.42,500. B sold goods costing Rs.40,000 at Rs.50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be
Answer
Answer: $3125
Q51: A sent some goods costing Rs.3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs.800. At the end of the accounting period i.e. on 31st December, 2011, the remaining goods were neither returned nor were approved by him. The Inventories on approval will be shown in the balance sheet at Rs
Answer
Answer: 2700.00
Q52: A sold goods to B for Rs.20,000. A will grant 5% discount to B. B requested A to draw a bill. The amount of the bill will be
Answer
Answer: $19000
Q53: A trader has credited certain items of sales on approval aggregating Rs.60,000 to Sales Account. Of these, goods of the value of Rs.16,000 have been returned and taken into Inventories at cost Rs.8,000 though the record of return was omitted in the accounts. In respect of another parcel of Rs.12,000 (cost being Rs.6,000) the period of approval did not expire on the closing date. Cost of goods lying with customers should be
Answer
Answer: $6000.00
Q54: A, B and C are co-venturer. The relative Profit sharing ratio between A and B is 3:2 and between B and C is also 3:2. Find out the profit sharing ratio between A, B and C
Answer
Answer: 09:06:04
Q55: Account payables can draw a bill on Account receivables-T/F
Answer
Answer: TRUE
Q56: Account receivables can draw a bill on Account payables-T/F
Answer
Answer: FALSE
Q57: Advise which of the statement is true
Answer
Answer: The profit to be shared between the venturer in agreed ratio
Q58: All proportionate consignee’s expenses will be added up for valuation of consignment Inventories-T/F
Answer
Answer: FALSE
Q59: B/R is a negotiable instrument-T/F
Answer
Answer: TRUE
Q60: B/R must be accepted by drawee-T/F
Answer
Answer: TRUE
Q61: Bank will draw a bill on customer at the time of overdraft-T/F
Answer
Answer: FALSE
Q62: C and D entered into a Joint Venture to construct a bridge. They did not open separate set of books. They shared profits and losses as 3:2. C contributed Rs.1,50,000 for purchase of materials. D paid wages amounting to Rs.80,000. Other expenses were paid as
Answer
Answer: $40000
Q63: C of Bangalore consigned goods costing Rs.3,000 to his agent at Delhi. Freight and insurance paid by consignor Rs.100. Consignee’s expenses Rs.200. 4/5th of the goods were sold for Rs.3,000. Commission 2% on sales. Consignee want to settle the balance with the help of a bank draft. The amount of draft will be
Answer
Answer: $2740
Q64: Co-venturer’s contribution in cash is debited in Venturer’s personal account-T/F
Answer
Answer: FALSE
Q65: Commission will be shared by
Answer
Answer: Only Consignee
Q66: Consignee will not pass any journal entry in his books at the time of receiving goods from consignor-T/F
Answer
Answer: TRUE
Q67: Consignee will pass a journal entry in his books at the time of receiving goods from consignor-T/F
Answer
Answer: FALSE
Q68: Consignee will treat consignor as creditor at the time of receiving goods-T/F
Answer
Answer: FALSE
Q69: Consignment A/c is prepared in the books of
Answer
Answer: Consignor
Q70: Consignment account is
Answer
Answer: Nominal account
Q71: Consignment and Joint Venture is same-T/F
Answer
Answer: FALSE
Q72: Consignment Inventories will be recorded in the balance sheet of consignor on asset side at
Answer
Answer: At Invoice value less Inventories reserve
Q73: Consignor is the owner of the consignment Inventories-T/F
Answer
Answer: TRUE
Q74: Contract money received is credited to Joint Venture Account-T/F
Answer
Answer: TRUE
Q75: Del-credere commission is allowed by consignor to consignee-T/F
Answer
Answer: TRUE
Q76: Del-credere commission is allowed by consignor to protect himself from bad debt-T/F
Answer
Answer: TRUE
Q77: Del-credere commission is generally relevant for credit sales-T/F
Answer
Answer: TRUE
Q78: Discount on discounting of B/R is debited to Venturer’s personal account-T/F
Answer
Answer: FALSE
Q79: Dravid of Delhi sends out goods to Sourav of Kolkata, goods costing Rs.2,00,000 at cost +25%, with the instruction to sell it at cost+ 50%. If 4/5th of the goods are sold at stipulated selling price and commission allowable 2% on sales. What will be the profit on consignment in the books of consignor
Answer
Answer: $75200
Q80: Fees paid in cash to Notary Public is charged by
Answer
Answer: Holder of the bill of exchange
Q81: For material supplied from own Inventories by any of the venturer, the correct journal entry will be: (In case of separate sets of books)
Answer
Answer: Joint Venture A/c will be debited and Venturers Capital A/c will be credited
Q82: For mutual accommodation of A and B, B accepted a bill drawn on him by A for 2 months for Rs.6,000. The said bill is discounted at 12% pa. and remitted 1/3rd of the proceeds to B. The amount remitted by A to B will be
Answer
Answer: $1960
Q83: For opening Joint Bank account, in case of separate sets of books
Answer
Answer: Joint Bank A/c is debited and Venturers Capital A/c is credited
Q84: For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be
Answer
Answer: Joint Venture A/c will be debited and Joint Bank A/c will be credited
Q85: From the following information, find out who can draw the bill if Mr A sold goods to B
Answer
Answer: A will draw a bill on B
Q86: Goods costing Rs.1,80,000 sent out to consignee to show a profit of 20% on Invoice Price. Invoice price of the goods will be
Answer
Answer: $225000
Q87: Goods costing Rs.10,000 destroyed by an accident, insurance claim nil
Answer
Answer: No Entry will be made in the books of Joint Venture
Q88: Goods costing Rs.2,00,000 sent out to consignee at Cost +25%. Invoice value of the goods will be
Answer
Answer: $250000
Q89: Goods of the Invoice value Rs.2,40,000 sent out to consignee at 20% profit on cost. The loading amount will be
Answer
Answer: $40000
Q90: Goods sent on consignment Invoice value Rs.2,00,000, at cost +331/3 %. 1/5th of the goods were lost in transit. Insurance claim received Rs.10,000. The amount of abnormal loss to be transferred to General P/L is
Answer
Answer: $20000
Q91: Goods sent on consignment Rs.7,60,000. Opening consignment Inventories Rs.48,000. Cash sales Rs.7,00,000. Consignor’s expenses Rs.20,000. Consignee’s expenses Rs.12,000. Commission Rs.20,000. Closing consignment Inventories Rs.3,00,000. The profit on consignment is
Answer
Answer: $140000
Q92: Goods sent out on consignment Rs.2,00,000. Consignor’s expenses Rs.5,000. Consignee’s expenses Rs.2,000. Cash sales Rs.1,00,000, credit sales Rs.1,10,000. Consignment Inventories Rs.40,000. Ordinary commission payable to consignee Rs.3,000. Del-credere commission Rs.2,000. The amount irrecoverable from customer Rs.2,000. What will be the profit on consignment
Answer
Answer: $38000
Q93: Goods sent to consignment at cost +331/3 %. The percentage of loading on invoice price will be
Answer
Answer: 0%
Q94: Gouri sold goods to Gupta on 1.6.2011 for Rs.1600. Gupta immediately accepted a three months bill. On due date Gupta requested that the bill be renewed for a fresh period of two months. Gouri agrees provided interest at 9% was paid immediately in cash. What will be the amount of interest in the books of Gouri
Answer
Answer: $24
Q95: If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by
Answer
Answer: The discounting charges will be recorded in memorandum joint venture account
Q96: If any Inventories is taken over by the venturer, it will be treated as an
Answer
Answer: Income of the joint venture, hence credited to Joint Venture Account
Q97: If consignor draws a bill on consignee and discounted it with the banker the discounting charges will be debited in
Answer
Answer: General P/L
Q98: If del-credere commission is allowed by consignor to consignee the bad debt treatment in the books of Consignor will be
Answer
Answer: Will not be recorded in consignor’s books
Q99: If del-credere commission is allowed for bad debt, consignee will debit the bad debt amount to
Answer
Answer: Commission Earned A/c
Q100: If del-credere commission is allowed, bad debt will be debited in consignment account-T/F
Answer
Answer: FALSE
