Advanced Accounting VI

Advanced Accounting- II

B.com Third Year

Semester VI

As per S. R. T. M. U. Nanded Syllabus

Prepared by-

Prof. Shrawan B. Bansode

M.com (Advanced Accounting and Taxation), SET, Ph. D Register

Prof. Shrawan B Bansode

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 Advanced Accounting VI

Advanced Accounting - II

Question paper I

1. The departmental accounting enables a business firm to Maximize

a) Profit
b) Losses
c) Cash
d) Assets

2. In departmental accounting, where separate books are kept for each department. It is
commonly referred to as________

a) Columnar accounting
b) Independent Accounting
c) Consolidated accounting
d) Single entry system

3. Which of the following is a method of departmental accounting ?

a) Debtor’s system
b) Independent method
c) Stock and Debtor’s system
d) Single entry system

4. In Departmental of Accounting canteen expenses are apportioned on the basis of

a) Food items purchased

b) Number of employees
c) Food items sold
d) Average stock

Prof. Shrawan B Bansode

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5. Work manager salary is apportioned on the basis of_________

a) Purchase of each department
b) Sales of each department
c) Time spent in each department
d) Value of plant & machinery

6. Selling expenses are apportioned on the basis of –

a) No of customers
b) Sales
c) Purchase
d) No of employees

7. Group insurance premium is apportioned on the basis of –

a) No of employees
b) No of managers
c) No of supervisors
d) Direct wages

8. Depreciation is apportioned on the basis of –

a) Purchase
b) Sales
c) Advertisements
d) None of these (Dep-Value of machine )

9. Rent, rates and taxes are apportioned on the basis of

A] Sales
B] Purchase
C] No of employees
D] Area

Prof. Shrawan B Bansode

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 Advanced Accounting VI

Q.10 Discount allowed is apportioned on the basis of –

A] Purchase
B] No of customers
C] Goods manufactured
D] Sales

Q.11 Preliminary expenses is shown on

A] Expenditure side of capital A/c
B] Receipt side of capital A/c
C] Dr. side of Revenue A/c
D] Cr. side of Revenue A/c

Q.12 Cost of License is shown on –

A. Expenditure side of capital A/c

B. Receipt’s side of capital A/c
C. Dr. side of Revenue A/c
D. Cr. side of Revenue A/c

Q.13 Parliamentary charges is shown on –

A] Receipt’s side of capital A/c
B] Expenditure side of capital A/c
C] Revenue A/c
D] Net Revenue A/c

Q.14 Law charges is shown on ........

A] Net Revenue A/c
B] Revenue A/c
C] Capital A/c
D] None of these

Q.15 Investment is shown on -

A] Revenue A/c
Prof. Shrawan B Bansode
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 Advanced Accounting VI

B] Net Revenue A/c

C] General Balance Sheet
D] Capital Account

Q.16 Reserve & Funds (All types) is shown on -

A] Revenue A/c
B] Net Revenue A/c
C] General Balance Sheet – Liabilities side
D Capital Account

Q.17 Compulsory transfer to contingency Reserve ...........% of the cost fixed Assets.
A. mini. 25%, max. 50%
B. mini. 50%,, max. 75%,
C. mini. 0.025%,, max. 0.05%,
D. mini. 0.25%,, max. 0.50%,

Q.18 Capital Account on each side there are ........ columns for amount.
a) 1
b) 2
c) 4 (Expenditure 4 Receipt 4=8)
d) 5
Q.19 In Electricity company the ordinary balance sheet is split in .......... parts.
a) Five
b) Four
c) Three
d) Two (Capital Account & General Balance sheet )

Q.20 Electricity Generation Expenses is -

a) Coal
b) Wages
c) Oil
d) All of the above

Prof. Shrawan B Bansode

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 Advanced Accounting VI

Q.21 Credit side of Memorandum Debtor’s Account indicates -

a) Container’s retained (sold)
b) Container’s sent
c) Opening Balance
d) None of the above
Q.22 If the buyer returned the barrel within a month then only ........ will be charged.
a) Rent
b) Cost Price
c) Sales Price
d) None of these
Q.23 Packages or containers play an important role in ........... sales.
a) Decreasing
b) Increasing
c) Both A & B
d) None of these

Q.24 LIFO means -

a) Last in final out
b) Last in first out
c) Both A and B
d) None of these
Q.25 When barrel/Drum sold as scrap ........... A/c is credited.
a) Stock
b) Trading
c) Both A & B
d) None of these

Q.26 Drums with the company on closing date is shown on _______

a) Dr. side of Memorandum Debtor’s A/c
b) Cr. side of Memorandum Debtor’s A/c
c) Cr. side of Drums Stock A/c
d) Dr. side of Drums Stock A/c

Q.27 Drums returned by customer is shown on -

Prof. Shrawan B Bansode
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a) Drums stock A/c

b) Drums Trading A/c tor’s A/c
c) Dr. side of Memorandum Debtor’s A/c
d) Cr. side of memorandum Debtor's A/c

Q.28 Drums sent out to customer is shown on -

a) Dr. side of Drums Stock A/c
b) Cr. side of Drums Stock A/c
c) Cr. side of Memorandum Debtor’s A/c
d) Dr. side of Memorandum Debtor’s A/c

Q.29 Drums purchase is shown on -

a) Cr. side of Drums Trading A/c
b) Dr. side of Drums Trading A/c
c) Cr. side of Drums stock A/c
d) Dr. side of Drums stock A/c

Q.30 No opening or closing stock in the .......... account

a) Memorandum Debtor’s A/c
b) Container’s stock A/c
c) Profit and Loss A/c
d) Container’s Trading A/c

Q.31 The persons who come to the solicitor for such Legal matters are called -
a) Clients
b) Customers
c) Seller
d) Purchaser 0

Q.32 A solicitor’s main income in his fees, this is known as .......

a) Loss cost
b) Profit cost
c) Average cost
d) None of these
Prof. Shrawan B Bansode
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 Advanced Accounting VI

Q.33 Profit cost it is shown on the .......... side of his Profit & Loss Account.

a) Debit
b) Credit
c) Either Credit or Debit
d) None of these

Q.34 The total bill is known as ........

a) Profit cost
b) Bill of cost
c) Both A & B
d) None of these

Q.35 List ‘E’ indicates ........

a) Deficiency
b) Book Debts
c) Property
d) Bills of Exchange

Q.36 List ‘F’ indicates ........

a) Deficiency
b) Property
c) Book Debts
d) Bills of Exchange

Q.37 List ‘G’ indicates ........

a) Property
b) Book Debts
c) Deficiency
d) Bills of Exchange

Q.38 List ‘H’ indicates ........

a) Property
b) Book Debts
Prof. Shrawan B Bansode
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 Advanced Accounting VI

c) Bills of Exchange
d) Deficiency

Q.39 Solicitors maintain the books of Account ........

Cash Book
Petty Cash Book
Clients Disbursement Ledger
All of the above

Q.40 Client’s Ledger is ruled with ........... column on the debit side.
a) Two
b) Four
c) Five
d) Three (this account contains personal account of client so ans is three)

Prof. Shrawan B Bansode

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 Advanced Accounting VI

Advanced Accounting II

Question paper II

1 The final account of Electricity Company consist of______________

a) Revenue A/C, Net revenue Account

b) Capital Account
c) General Balance sheet
d) All of these

2. Interest paid or received is shown in ____

a) Net Revenue account

b) Revenue account
c) Capital Account
d) None of these

3. Which of the following is capital Receipts_________

a) Shares
b) Debentures
c) Shares Premium
d) All of these

4. Capital receipts is shown on___

a) Liability side
b) Assets Side
c) Both of A & B
d) None of these

5. Capital expenditure is shown on ____________

a) Liability side

Prof. Shrawan B Bansode

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 Advanced Accounting VI

b) Assets Side
c) Both of A & B
d) None of these

6 When capital Expenditure is Rs. 500,000 then contingency Reserve 1/2% = ________

a) 2540
b) 2500
c) 2600
d) 2700

7 When Equity shares of Rs. 200,000 Debentures of Rs. 150,000 and bank Loan is Rs. 50,000 then total
capital Receipts = _____

a) 3,50,000
b) 4,00,000
c) 5,00,000
d) 4,50,000

8 When building is Rs. 2,50,000 Machinery of Rs. 1,00,000 and mains of Rs.1,50,000 then Total capital
expenditure__________

a) 3,50,000
b) 4,00,000
c) 5,00,000
d) 4,50,000

9 Income tax is debited to ___________

a) Net Revenue account

b) Revenue account
c) Capital Account
d) None of these

10 Building is costing rs 5,00,000 depreciation rate is 15% calculate depreciation ?

a) 25,000
b) 50,000
c) 75,000
d) 1,00,000

11 Departmental accounts are prepared for finding out ________

Prof. Shrawan B Bansode

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 Advanced Accounting VI

a) Departmental Profit
b) Liabilities
c) Assets
d) All of these

12 Labour welfare expenses is allocated as per ______

a) Purchase
b) Sales
c) No. of workers
d) None of these

13 When departmental salary of Rs. 40,000 Allocated between 'A' and 'B' as per 4:1, then salary of 'A'
department =______

a) 8,000
b) 32,000
c) 4000
d) 30,000
14 When total sales of Rs. 2,00,000 and Gross profit = Rs. 40,000 then rate of gross profit =______

a) 20% (G.P . Ratio = G.P./Sales*100)

b) 10%
c) 25%
d) 30%

15 'X' transfer to 'Y' goods of Rs. 2,000 is debited to _________

a) X’s Account
b) Y’s Account
c) Z’ Account
d) XYZ Account

16 Non- departmental expenses are shown to _____

a) Departmental Trading A/C

b) Departmental Profit & Loss Account
c) General Profit & Loss Account
d) None of the above

17 In package accounting stock account is prepared at_____

a) Cost price
b) Sale price
c) Cash price
d) None of above
Prof. Shrawan B Bansode
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 Advanced Accounting VI

18 Advertise expenses is allocated as per ______

a) Sales
b) Purchase
c) Both of these
d) None of these

19 The period is expired it can be called _______

a) Rent
b) Sale
c) Both of these
d) None of these

20 If the barrel returned within a period then _________ only charged ?

a) Rent
b) Cost
c) Sale
d) Purchases

21 If barrel charged at Rs 500 each, customer return barrel within a month then credited to rs 450. Then
rental charges are ?

a) 500
b) 450
c) 50
d) 950

22 Purchase are __________ to barrel stock account.

a) Debited
b) Credited
c) Both a and b
d) None of these

23 Increase in stock is _________

a) Debited
b) Credited
c) Both a and b
d) None of these

Prof. Shrawan B Bansode

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 Advanced Accounting VI

24 Decrease in stock is __________

a) Debited
b) Credited
c) Both a and b
d) None of these

25 The word ' profession is relating to _______

a) Intellectual skill
b) Manual skill
c) Both a and b
d) None of these

26 Provision for unrealised profit of opening balance is _______

a) Expenditure
b) Receipts
c) Both a and b
d) None of these

27 Closing work in progress as per adjustment is recorded to _____

a) Receipt
b) Expenditure
c) Both a and b
d) None of these

28 Amount of profit cost is _____

a) Receipt
b) Expenditure
c) Both a and b
d) None of these

29 Clients deposit is_________

a) Assets
b) Liabilities
c) Both a and b
d) None of these

30 Interest on capital as per adjustment is recorded to _____

a) Profit & Loss DR side

Prof. Shrawan B Bansode

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 Advanced Accounting VI

b) Liabilities –Capital
c) Both a and b
d) None of these

31 Sundry debtors are ________

a) Good
b) Doubtfull
c) Bad
d) All of these

32 Bills payable and S. creditors are ___________

a) Unsecured Creditors
b) Fully secured Creditors
c) Partly secured Creditors
d) Preferential Creditors

33 debit side of deficiency account is shown _______

a) Capital
b) Profit
c) Other income
d) All of these

34 Book value of stock is Rs. 30,000 and realised value is Rs. 28000 then diffference is_____

a) Other Loss
b) Other Income
c) Both a and b
d) None of the above

35 Taxes due is ______

a) Preference creditors
b) Debtors
c) Both of these
d) None of these

36 If doubtful debtors of Rs. 5,000 and realised Rs. 3,000 then the difference is______

a) Good
b) Bad

Prof. Shrawan B Bansode

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 Advanced Accounting VI

c) Both of these
d) None of these

37 Unsecured creditors is concern with ______

a) List 'A'
b) List 'B'
c) List 'D'
d) List 'C'

38 Preference creditors is concern with _______

a) List 'A'
b) List 'B'
c) List 'D'
d) List 'C'

39 Property is concern with _______

a) List 'A'
b) List 'B'
c) List 'D'
d) List 'E'

40 If amount of creditors Rs. 80,000 and security value is Rs. 1,00,000 then it is______

a) Fully secured
b) Unsecured
c) Preference
d) All of these

Prof. Shrawan B Bansode

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Unit I Departmental Accounting

1. Indirect expenses is also called____________.

A. prime cost.

B. common expenses.

C. direct expenses.

D. management expenses.

2. Expenses which cannot be apportioned to department must be shown in the _____.

A. balance sheet.

B. trading account.

C. P & L account.

D. P & L Appropriation account.

3. When goods are transferred from one department to other department, they are called __________.

A. Inter-departmental transfers.

B. outer-departmental transfers.

C. not a transfer.

D. regular transfer.

4.When goods are transferred from one department to other, the department transferring the goods should
be ___________.

A. debited.

B. credited.

C. added.

D. subtracted .

5.When goods are transferred from one department to other, the department transferring the goods should
be credited and department receiving the goods should be _________.

Prof. Shrawan B Bansode

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A. debited.

B. credited.

C. added.

D. subtracted.

6.In departmental accounts expenses like director fees, interest is transferred to ______.

A. balance sheet.

B. trading account.

C. general P & L account .

D. P & L Appropriation account.

7.The departmental accounting enables a business firm to maximize _________.

A. profit.

B. losses.

C. cash.

D. assets .

Prof. Shrawan B Bansode

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