GK-Financial MCQ Question and Answer

GK-Financial MCQ Question and Answer
71. V. V. Bros. purchased a machine on 1st October, 2003 at cost Rs. 2,70,000 and spent Rs. 30,000 on its installation. The firm written off depreciation 10% per annum on original cost every year. The books are closed on 31st March every year. The machine is sold on 30 September, 2006 for Rs. 1,90,000. How much amount will be transferred to P & L A/c as loss

on sale of machinery ?
  • Rs. 10,000
  • Rs. 20,000
  • Rs. 30,000
  • Rs. 40,000
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72. Accounting for Intangible Assets are related to—
  • AS - 10
  • AS - 12
  • AS - 24
  • AS - 26
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73. Indian Accounting Standard – 28 is related to—
  • Accounting for taxes on income
  • Financial Reporting of Interests in Joint Venture
  • Impairment of Assets
  • Provisions, Contingent Liabilities and Contingent Assets
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74. Recording of capital contributed by the owner as liability ensures the adherence of principle of—
  • Consistency
  • Going concern
  • Separate entity
  • Materiality
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75. A company made the purchases of an item during its financial year.
January 2007 200 @ Rs. 50 each
May 2007 400 @ Rs. 60 each
August 2007 600 @ Rs. 70 each
Novem- 2007 300 @ Rs. 80 each ber
Closing inventories were 500 articles. Find out the value of closing stock as per Weighted Average Method—
  • 33,333•33
  • 16,666•66
  • 66,666•67
  • 96,666•66
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76. A fire occurred in the premises of ‘M’ Ltd. on 30th September, 2007. The stock was destroyed except to the extent of
Rs. 10,000. From the information given below, calculate the value of stock burnt by fire on 30th September, 2007. Stock on
1st April 2006, Rs. 90,000, Purchases less returns during 2006-07—10,00,000, Sales less returns during 2006-07, 15,00,000;
Stock on 31st March, 2007—1,80,000, Purchases less returns from 1st April 2007 to 30th September 2007, 7,00,000. Sales
less returns from 1st April, 2007 to 30th September 2007, 10,00,000.
It was the practice of the company to value stock less 10%—
  • 3,00,000
  • 2,90,000
  • 1,90,000
  • 2,80,000
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77. Social Accounting means—
  • Accounting for social benefits and social costs
  • Accounting for Government Revenue & Govt. Cost
  • Accounting for private revenue and private cost
  • None of the above
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78. It is given that cost of stock is Rs. 100. However, its market price is Rs. 98 (buying) and Rs. 140 (selling). If the market price is interpreted as the replacement cost, then the stock should be valued at—
  • Rs. 98
  • Rs. 100
  • Rs. 140
  • Rs. 40
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79. If the goods purchased are in transit, then the Journal Entry at the end of the period will be—
  • Goods in Transit A/c Dr. To Supplier’s A/c
  • Goods in transit A/c Dr. To Purchases A/c
  • Stock A/c Dr. To Goods in Transit A/c
  • Supplier’s A/c Dr. To Goods in Transit
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80. Calculate Return on Investment/ Return on Proprietor’s fund. Gross profit of a firm is Rs. 3,20,000, Operating expenses Rs. 1,00,000, Taxes Rs. 20,000, Owner’s fund Rs. 5,00,000, Debenture Interest Rs. 50,000—
  • 20%
  • 30%
  • 40%
  • 50%
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