MCQs on Financial Accounting - 9

1. If sales returns are Rs. 25,000, sales are Rs. 1,25,000, net purchases are Rs. 84,000, and gross profit is Rs. 21,000, then the cost of goods sold will be

(a) Rs. 84000
(b) Rs, 64,000
(c) Rs. 79,000 
(d) Rs. 92,000.

2. If opening stock Rs. 10,000, closing stock Rs. 11,000, purchases Rs,70,000 and goods sold @ 30% profit on cost, the amount of sales will be

(a) Rs. 86,000
(b) Rs. 89,700
(c) Rs. 21,000 
(d) Rs. 91,000.

3. If sales are Rs. 60,000 gross profit is 1/3 of cost, purchases are Rs. 49,000 and closing stock is Rs. 9,000, then opening stock will be

(a) Rs. 5,000
(b) Rs. 20,000
(c) Rs. 15,000 
(d) Nil.

4. Raju has a capital of Rs. 60,000 on 31-12-09. During the year, he has made a profit of Rs. 24,000. If his drawings had amounted to Rs.18,000, his capital on 01-01-09 will be

(a) Rs. 72,000 
(b) Rs. 54,000
(c) Rs. 36,000
(d) Rs. 18,000

5. If opening stock is Rs. 8,800, closing stock is Rs. 5,280 and cost of goods sold is Rs. 91,520, the amount of purchase will be

(a) Rs. 77,440
(b) Rs. 82,720
(c) Rs. 88,000
(d) Rs. 72,160

6. Madhu purchased goods costing Rs. 20,000 at 5% trade discount and 2% cash discount. Madhu will immediately pay for the goods

(a) Rs. 18,620 
(b) Rs. 18,660,
(c) 18,360
(d) Rs. 18,600.

7. Contingent liability is shown

(a) on the liability side of the balance sheet
(b) on the asset side of the balance sheet
(c) in the profit and loss account
(d) below the balance sheet as a foot note.

8. In double entry system every business transaction affects

(a) debit and credit side of the same account
(b) two accounts
(c) the same side of the same account
(d) none of the these.

9.In accounting debit means

(a) an entry on the left hand side of an account
(b) decrease in asset
(c) increase in liability
(d) none of these.

10. In accounting credit means

(a) an entry on the right hand side of an account
(b) increase in asset
(c) decrease in liability
(d) none of these.

More MCQs on Financial Accounting


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