You can study mcq objective type question answer set 2 for online assignment and exam of distance learning program. DistPub bring collection of online multiple choice objective type questions.
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Account for Manager Online Assignment Set 2
Accounting for manager MCQ Online 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: If del-credere commission is allowed, bad debt will not be recorded in the books of consignor-T/F
Answer
Answer: TRUE
Q2: If separate sets of books is maintained and suppliers grant discount at the time of making the payment for purchase of goods, such discount received will be treated as
Answer
Answer: Income of Joint Venture, hence credited to Joint Venture A/c
Q3: If the due date is a public holiday, what will be the due date of the bill
Answer
Answer: Preceding day
Q4: If unsold goods costing Rs.20,000 is taken over by Venturer at Rs.15,000, the Joint Venture A/c will be credited by
Answer
Answer: $15000
Q5: In a Joint venture A contributes Rs.5,000 and B contributes Rs.10,000. Goods are purchased for Rs.11,200. Expenses amount to Rs.800. Sales amount to Rs.14,000 the remaining goods were taken by B at an agree price of Rs.400. A and B share profit and losses in the ratio of 1:2 respectively. As a final settlement, how much A will receive
Answer
Answer: $5800
Q6: In case of Joint Venture, the number of third party is one only-T/F
Answer
Answer: FALSE
Q7: In case of separate sets of books method of Joint Venture, co-venturer’s contribution of goods is debited in Joint Bank A/c-T/F
Answer
Answer: FALSE
Q8: In joint venture, provisions of partnership act applies-T/F
Answer
Answer: TRUE
Q9: In the books of consignee, the profit on consignment will be transferred to
Answer
Answer: None of these-a. General Trading Account
b. General Profit and Loss Account
c. Drawings Account
Q10: In the books of consignor, the loss on consignment business will be charged to
Answer
Answer: General P/L A/c
Q11: In the books of consignor, the profit of consignment will be transferred to
Answer
Answer: General P/L A/c
Q12: In the Sale or Return Ledger
Answer
Answer: all the customers are individually debited and the sale or return account is credited with the periodical total of the Sale or Return Day Book.
Q13: Joint venture does not follow accrual basis of accounting-T/F
Answer
Answer: TRUE
Q14: Joint venture is a going concern-T/F
Answer
Answer: FALSE
Q15: Joint venture is terminable in nature-T/F
Answer
Answer: TRUE
Q16: Kuntal draws a bill on Shyam for Rs.3,000. Kuntal endorsed it to Ram. Ram endorsed it to Rahim. The payee of the bill will be
Answer
Answer: Rahim
Q17: Lara draws an accommodation bill on Sachin. The proceeds are to be borne between Sachin and Lara in the ratio of 3:1. The amount of bill Rs.6000, discounting charges Rs.120. Discount borne by Sachin will be
Answer
Answer: $90
Q18: M and N enter into a Joint venture where M supplies goods worth Rs.6,000 and spends Rs.100 on various expenses. N sells the entire lot for Rs.7,500 meeting selling expenses amounting to Rs.200. Profit sharing ratio is equal. N remits to M the amount due. The amount of remittance will be
Answer
Answer: $6700
Q19: M of Kolkata sent out goods costing Rs.45,000 to N of Mumbai at cost +331/3 %. 1/10th of goods were lost in transit. 2/3rd of the goods are sold at 20% above invoice price. 1/2 of the sales are on credit. The amount of credit sales will be
Answer
Answer: $21600
Q20: M sold goods worth of Rs.50,000 to N. On 1.10.2011, N immediately accepted a three month bill. On due date, N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18% p.a. in cash. How much interest to be paid in cash by N
Answer
Answer: $2250
Q21: Mr. A draws a bill on Mr. Y for Rs.30,000 on 1.1.2011 for 3 months. On 4.2.2011, X got the bill discounted at 12% rate. The amount of discount will be
Answer
Answer: $600
Q22: Mr. Bobby sold goods worth Rs.25,000 to Mr Bonny. Bonny immediately accepted a bill on 1.11.2011, payable after 2 months. Bobby discounted this bill @ 18% p.a. on 15.11.2011. On the due date Bonny failed to discharge the bill. Later on Bonny became insolvent and 50 paise is recovered from Bonny’s estate. How much amount of bad debt will be recorded in the books of Bobby
Answer
Answer: $12500
Q23: Mr. Rex accepted a bill drawn by Mr. Rabin. Mr. Rabin endorsed the bill to Mr Shekar. On the due date, the bill is dishonored as Mr Rex became insolvent. To record the dishonor of the bill in the books of Mr. Rabin, which of the following accounts should be credited
Answer
Answer: Mr Shekar’s account
Q24: Neelam sold goods to Dhiman for Rs.4,000 on 1.5.2011. On the same day, she drew on Dhiman a bill for the amount for 3 months, which Dhiman duly accepted. Neelam got the bill discounted with her bank before the due date, Dhiman became insolvent. Later, his estate could pay only 40% of the amount due. What will be the amount of deficiency in the books of Dhiman
Answer
Answer: $2400
Q25: Noting charge is an expense to be borne by bank-T/F
Answer
Answer: FALSE
Q26: Noting charge is an expense to be borne by drawee-T/F
Answer
Answer: TRUE
Q27: Noting charge is an expense to be borne by drawer-T/F
Answer
Answer: FALSE
Q28: Noting charge is an expense to be borne by payee-T/F
Answer
Answer: FALSE
Q29: Noting charges are borne by the drawee in the event of dishonour of bill-T/F
Answer
Answer: TRUE
Q30: On 1.1.2011 Vikas draws a bill of exchange for Rs.10,000 due for payment after 3 months on Ekta. Ekta accepts to this bill of exchange. On 4.3.2011, Ekta retires the bill of exchange at a discount of 12% p.a. Which of the discount is correct for premature payment in the books of Ekta
Answer
Answer: $100
Q31: On 1.1.2011, X draws a bill on Y for 3 months for Rs.10,000. On 4.3.2011, Y pay the bill to X at 12% p.a. discount, the amount of discount will be
Answer
Answer: 100
Q32: On 1.1.2011, X draws a bill on Y for Rs.10,000. At maturity Y request X to renew the bill for 2 month at 12% p.a. interest. Amount of interest will be
Answer
Answer: $200
Q33: On 1.1.2011, X draws a bill on Y for Rs.15,000 for 3 months. At maturity Y request X to accept Rs.5,000 in cash and for balance to draw a fresh bill for 2 months together with 12% p.a. interest, amount of interest will be
Answer
Answer: $200
Q34: On 1.1.2011, X draws a bill on Y for Rs.20,000 for 3 months maturity date of the bill will be
Answer
Answer: 4.4.2011
Q35: On 1.1.2011, X draws a bill on Y for Rs.30,000. At maturity Y request X to draw a fresh bill for 2 months together with 12% pa. interest. Noting charges Rs.100. The amount of interest will be
Answer
Answer: $602
Q36: On 1.1.2011, X draws a bill on Y for Rs.50,000 for 3 months. X got the bill discounted 4.1.2011 at 12% rate. The amount of discount on bill will be
Answer
Answer: $1500
Q37: On 1.1.2011, X draws a bill on Y for Rs.50,000. At maturity, the bill returned dishonoured as Y become insolvent and 40 paise per rupee is recovered from his estate. The amount recovered is
Answer
Answer: $20000
Q38: On 1.6.2011, X draws a bill on Y for Rs.25,000. At maturity Y request X to accept Rs.5,000 in cash and noting charges incurred Rs.100 and for the balance X draw a bill on Y for 2 months at 12% p.a. Interest amount will be
Answer
Answer: $400
Q39: On 1.8.2011, X draws a bill on Y “for 30 days after sight”. The date of acceptance is 8.8.2011. The maturity date of the bill will be
Answer
Answer: 10.9.2011
Q40: On 15.8.2011, X draws a bill on Y for 3 months for Rs.20,000. 18th Nov. was a sudden holiday, maturity date of the bill will be
Answer
Answer: 19th Nov
Q41: On 16.6.2011 X draws a bill on Y for Rs.25,000 for 30 days. 19th July is a public holiday, maturity
Answer
Answer: 18th July
Q42: On 18.2.2011 A draw a bill on B for Rs.10,000. B accepted the bill on 21.2.2011. The bill is drawn for 30 days after sight. The maturity date of the bill will be
Answer
Answer: 26.3.2011
Q43: On 31st December, 2011 goods sold at a sale price of Rs.30,000 were lying with customer, Mohan to whom these goods were sold on ‘approval or return basis’ and recorded as actual sales. Since no consent was received from Mohan, the adjustment entry was made, presuming goods were sent on approval at a profit of cost plus 20%. In the balance sheet, the Inventories with customers account will be shown at Rs
Answer
Answer: 25000.00
Q44: One can draw the bill on another under any circumstances-T/F
Answer
Answer: FALSE
Q45: Only one venturer bears the risk-T/F
Answer
Answer: FALSE
Q46: Only one venturer can purchase the goods-T/F
Answer
Answer: False
Q47: Only one venturer can sell the goods-T/F
Answer
Answer: FALSE
Q48: Oral bill of exchange is also valid-T/F
Answer
Answer: FALSE
Q49: Out of the following at which point the treatment of “Sales” and “Consignment” is same
Answer
Answer: Inventories outflow.
Q50: Over-riding commission is a commission payable to consignee by consignor for
Answer
Answer: For making sales above specific price
Q51: P and Q enter into a Joint Venture sharing profits and losses in the ratio 3:2. P purchased goods costing Rs.2,00,000. Other expenses of P Rs.10,000. Q sold the goods for 180,000. Remaining goods were taken over by Q at Rs.20,000. The amount of final remittance to be paid by Q to P will be
Answer
Answer: $204000
Q52: P of Delhi sends out 100 boxes of toothpaste costing Rs.200 each. Each box consist of 12 packets. 60 boxes were sold by consignee at Rs.20 per packet. Amount of sale value will be
Answer
Answer: $14400
Q53: P of Faridabad sent out goods costing Rs.45,000 to Y of Delhi at cost +331/3 %. 1/10th of goods were lost in transit. 2/3rd of the goods received, are sold at 20% above invoice price. The amount of sale value will be
Answer
Answer: $43200
Q54: Proportionate consignor’s expenses is added up with consignment Inventories-T/F
Answer
Answer: TRUE
Q55: R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs.5,000 for insurance. M spent Rs.10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs.5000. What will be the amount to be remitted by M to R as final settlement
Answer
Answer: $155000
Q56: R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs.100,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs.5,000 for insurance. M spent Rs.10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs.5,000. Find out profit on venture
Answer
Answer: $80000
Q57: Rabin consigned goods for the value of Rs.8,250 to Raj of Kanpur and paid freight etc. of Rs.650 and insurance Rs.400. He drew a bill on Raj for 3 months after date for Rs.3,000 as an advance against consignment, and discounted the bill for Rs.2,960. Further, he received Account Sales from Raj showing that, part of the goods had realized gross Rs.8,350 and that his expenses and commission amounted to Rs.870. The Inventories unsold was valued at Rs.2750. Consignee wants to remit a draft for the amount due. The amount of draft will be
Answer
Answer: $4480
Q58: Rahim of Kolkata sends out 1,000 boxes to Ram of Delhi costing Rs.100 each at an invoice price of Rs.120 each. Goods send out on consignment to be credited in general trading will be
Answer
Answer: $100000
Q59: Rahim of Kolkata sends out goods of the invoice value Rs.2,00,000 to Ram of Delhi at cost +25%. The amount of loading will be
Answer
Answer: $40000
Q60: Ram draws on Aslam a bill for Rs.60,000 on 1.4.2011 for 2 months. Aslam accepts the bill and sends it to Ram who gets it discounted for Rs.58,800. Ram immediately remits Rs.19,600 to Aslam. On due date, Ram being unable to remit the amount due and accepts a bill for Rs.84,000 for 2 months which is discounted by Aslam for Rs.82,200. Aslam sends Rs.14,800 to Ram out of the same. How much discount will be borne by Ram at the time of 14,800 remittance
Answer
Answer: $1200
Q61: Ram gets Ghosh’s acceptance for Rs.12,000 discounted at 2 months at 12% p.a. The amount of discount will be
Answer
Answer: $240
Q62: Ram of Delhi sends out goods costing Rs.2,00,000 to Krishna of Brindaban. Consignor’s expenses Rs.5,000. Consignee’s expenses in relation to sales Rs.2,000. 4/5th of the goods were sold at 20% above cost. The profit on consignment will be
Answer
Answer: $26000
Q63: Ram of Kolkata sends out 1,000 boxes to Y of Delhi, costing Rs.200 each. 1/10th of the boxes were lost in transit. 2/3rd of the boxes received by consignee is sold at cost +25%. The amount of sales value will be
Answer
Answer: $150000
Q64: Ram of Kolkata sends out goods costing Rs.1,00,000 to Y of Mumbai at 20% profit on invoice price. 1/10th of the goods were lost in transit. 1/2 of the balance goods were sold. The amount of Inventories reserve on consignment Inventories will be
Answer
Answer: $11250
Q65: Ram’s acceptance to Din for Rs.8,000 renewed at 3 months on the condition that Rs.4,000 be paid in cash immediately and the remaining amount will carry interest @ 12% p.a. The amount of interest will be
Answer
Answer: $120
Q66: S draws 2 bills of exchange on 1.1.2011 for Rs 3,000 and Rs.5,000 respectively. The bill of exchange for Rs.3,000 is for 2 months, while the bill of exchange for Rs.5,000 is for 3 months. These bills are accepted by K. On 4.3.2011 K requests S to renew the first bill with interest at 18% p.a. for a period of 2 months. S agrees to this proposal. On 20.3.2011 K retires the acceptance for Rs.5,000 the interest rebate i.e., discount being Rs.50. Before the due date of the renewed bill K becomes insolvent and only 60 paise in a rupee can be recovered from his estate. How much bad debt will be recorded in the books of S
Answer
Answer: $1236
Q67: Sale or Return Day Book and Sale or Return Ledger are known as
Answer
Answer: memorandum books
Q68: State which of the statement is true
Answer
Answer: Memorandum Joint Venture Account is prepared to find out profit on venture
Q69: Suman drew a bill on Sonu for Rs.4,500 for mutual accommodation in the ratio 2:1. Sonu accepted the bill and returned to Suman. Suman discounted the bill for Rs.4,230 and remitted 1/3rd proceeds to Sonu. Before the due date, not having funds to meet the bill, Sonu drew a bill on Suman for Rs.6,300 on the same terms as to mutual accommodation. The second bill was discounted for Rs.6,120. The first bill was honored on the due date and a net amount of Rs. 1,080 was remitted to Suman by Sonu. The proportionate discount charge on both the bills is to be borne by Suman is
Answer
Answer: $300
Q70: The balance of goods sent out on consignment will be transferred to
Answer
Answer: General Trading
Q71: The co-venturer shares the profit in agreed ratio-T/F
Answer
Answer: TRUE
Q72: The commission received from consignor will be transferred to which account
Answer
Answer: General P/L
Q73: The consignment accounting is made on the following basis
Answer
Answer: Accrual
Q74: The nature of the consignment account is
Answer
Answer: Nominal in nature
Q75: The owner of the consignment Inventories is
Answer
Answer: Consignor
Q76: The ownership of goods will be transferred to consignee at the time of receiving the goods-T/F
Answer
Answer: FALSE
Q77: The promissory note should be signed by
Answer
Answer: Promiser
Q78: The purpose of accommodation bill is
Answer
Answer: When both parties are in need of funds
Q79: There can be three parties in respect of bills of exchange – drawer, drawee and payee-T/F
Answer
Answer: TRUE
Q80: There is no difference between Joint Venture and Partnership-T/F
Answer
Answer: False
Q81: There is no separate act for Joint Venture-T/F
Answer
Answer: TRUE
Q82: Under sales on return or approval basis, the ownership of goods is passed only
Answer
Answer: Both (a) and (b)—(a)When the retailer gives his approval
(b)If the goods are not returned with a specified period
Q83: Under sales on return or approval basis, when transactions are few and the seller at the end of the accounting year reverse the sale entry, then what will be the accounting treatment for the goods returned by the customers on a subsequent date
Answer
Answer: No entry will be passed for such return of goods
Q84: Under sales on return or approval basis, when transactions are few, the seller, while sending the goods, treats them as
Answer
Answer: an ordinary sale and entry for normal sale is passed in the books
Q85: Under which circumstances drawer and payee is same person
Answer
Answer: When drawer held the bill till maturity
Q86: When a large number of articles are sent frequently on a sale or return basis, it is necessary to maintain
Answer
Answer: Sale or return journal
Q87: When separate set of books is maintained, expenses paid by venturer will be credited to joint bank account-T/F
Answer
Answer: False
Q88: When separate set of books is maintained, expenses paid by venturer will be credited to Joint venture account-T/F
Answer
Answer: False
Q89: When separate set of books is maintained, expenses paid by venturer will be credited to Outstanding Expenses Account-T/F
Answer
Answer: False
Q90: When separate set of books is maintained, expenses paid by venturer will be credited to venturer’s capital account-T/F
Answer
Answer: True
Q91: When the bill are to be produced to notary public
Answer
Answer: At the time of dishonour of the bill
Q92: When the goods are returned by the customers within the specified time, they are recorded
Answer
Answer: initially in the Sale or Return Day Book. Thereafter, in the Sale or Return Ledger
Q93: Which of the following expenses of consignee will be considered as non-selling expenses
Answer
Answer: Insurance
Q94: Which of the following instrument is not a negotiable instrument
Answer
Answer: Account Payee – Crossed cheque
Q95: Which of the following is not a main column of sales or return journal
Answer
Answer: purchase column
Q96: Which of the following item is not credited to consignment account
Answer
Answer: Inventories Reserve on closing consignment Inventories
Q97: X draws a bill on Y for Rs.20,000 for 3 months on 1.1.2011. The bill is discounted with banker at a charge of Rs.100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited by
Answer
Answer: $20000
Q98: X draws a bill on Y for Rs.20,000 on 1.1.2011 for 3 months after sight, date of acceptance is 6.1.2011. Maturity date of the bill will be
Answer
Answer: 9.4.2011
Q99: X draws a bill on Y for Rs.3,000. X endorsed to Z. Y will pay the amount of the bill to
Answer
Answer: Z
Q100: X draws a bill on Y for Rs.30,000 on 1.1.2011. X accepts the same on 4.1.2011 for period of 3 months after date. What will be the maturity date of the bill
Answer
Answer: 4.4.2011
