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Accounting Test Module 1-3

The document outlines a test consisting of three sections: descriptive questions on accounting concepts, journal entries based on transactions for ABC Limited, and multiple-choice questions related to accounting principles. It covers topics such as the usefulness of accounting information, differences between key accounting terms, and specific journal entries for business transactions. Additionally, it includes multiple-choice questions assessing knowledge of accounting concepts and conventions.

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Ritwik Karmakar
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12 views3 pages

Accounting Test Module 1-3

The document outlines a test consisting of three sections: descriptive questions on accounting concepts, journal entries based on transactions for ABC Limited, and multiple-choice questions related to accounting principles. It covers topics such as the usefulness of accounting information, differences between key accounting terms, and specific journal entries for business transactions. Additionally, it includes multiple-choice questions assessing knowledge of accounting concepts and conventions.

Uploaded by

Ritwik Karmakar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Test- 1 Module (1-3)

Section A (Descriptive)

1. How is accounting information useful to Government and Investors? 2


2. Differentiate between Expense and Expenditure. 2
3. Differentiate between Accounting and Bookkeeping? 3
4. What are the differences between Revenue and Income (Profit)?
2
4. Name few limitations of accounting. 3
5. Explain significance of Going Concern Concept. 2
6. Write the name of all Accounting Conventions with one line definition.
3
7. Give 3 examples each for External and Internal Liability. 3

Section B (Journals)

Please go through the below details of ABC Limited. and prepare necessary
Journal entries as on 31st March 2022:
Total Marks 10

2012 Particulars Amount (₹)


April 1 Commenced business with cash 1,00,000
April 3 Payment made to Raw material supplier 30,000
April 5 Purchased goods and paid by cheque 25,000
April 8 Purchased Furniture from Mr. A 15,000
April 14 Purchased goods from Hari 35,000
April 18 Cash sales 32,000
April 20 Sold goods to Mr.A (Credit) 24000
April 21 Salary paid to employees 20000
April 25 Deposit money in HDFC Bank 70000
April 28 Proprietor took money for personal use 8000
April 30 Returned of Goods from Mr. A (sold on Ap 20) 5000
April 30 Receive money from Mr. A (Full settlement) 18000
Section C (MCQ)

2.

3.

4. Out of the following which is an item of expenditure.


1
a) Rent paid
b) Commission paid
c) Goods purchased
d) Furniture purchased
5. Out of the following which is not an item of revenue:
1
a) Sale of goods.
b) Rent received.
c) Sale of old furniture.
d) Commission received.

6. According to which of the following accounting concepts, even the owner of a


business is considered as creditor to the extent of his capital.
1
a) Money measurement concept
b) Dual aspect concept
c) Business entity concept
d) Realisation concept
7. The convention of conservatism takes into account.
1
a) All prospective losses but leaves prospective profits
b) All prospective profits & leaves prospective losses
c) All prospective profits and prospective losses
d) Leaves all prospective profits and prospective losses
8. To ascertain the operational profit or loss is:
1
a) An objective of Accounting.
b) An advantage of Accounting.
c) A limitation of Accounting.
d) Need of Accounting.

9. Book-Keeping is recording:
1
a) All events affecting a business.
b) All business transactions.
c) Only business transactions with outsiders.
d) Only internal business transaction.

10. Which of the following is not a business transaction?


1
a) Purchase of goods for business.
b) Sale of goods.
c) Payment of sales tax.
d) Payment of house tax belonging to owner.

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