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Principles of Accountancy 18UCC101 KONGUNADU ARTS AND SCIENCE COLLEGE (AUTONOMOUS) [Re-accredited by NAAC with ‘A’ Grade 3.64 CGPA-(3rd Cycle)] Coimbatore – 641 029 DEPARTMENT OF B.COM CA KASC-Commerce CA QUESTION BANKS SUBJECTS S.No Name of the Subject 1. C. P: 1 – Principles of Accountancy 2. C.P: 2 – Introduction to Information Technology 3. C.P: 5 – Cost Accounting 4. C.P: 6 – Direct Tax 5. C.P: 7 – Principles of Marketing 6. C.P: 8 – Database Management System 7. Allied. C: 1- Executive Business Communication 8. SBS: 1 – Managerial Economics 9. C.P: 12 – Principles of Auditing 10. C.P: 13 – Management Accounting 11. C.P: 14 – Financial Management 12. C.P: 15 – Programming in Visual Basic 13. E.l.P: 1 - Business Research Methods 14. SBS: 3 – Human Resource Management 15. Allied Paper: 3 – Accounting and Export Management 16. Allied Paper: 1 - Business Accounting KASC-Commerce CA Principles of Accountancy 18UCC101 SECTION- A 1 MARKS UNIT-I 1. The First and foremost step of accounting is (a) Recording (b) Summarizing (c) Classifying (d) Interpreting 2. According to the Going concern concept, a business entity is assumed to have (a) Short life (b) Limited life (c) Indefinite life (d) Long life 3. Which account is an account of a person? (a) Personal (b) Real (c) Nominal (d) Impersonal 4. Debit all the expenses and losses it is a rule of (a) Real A/C (b) Nominal A/C (c) Personal A/C (d) Expenses A/C 5. Return outwards are deducted from (a) Purchase (b) Rent (c) Sales (d) Wages 6. Gross Profit is transferred to (a) Capital (b) Trading (c) Assets (d) Profit and loss 7. All the items given in the Adjustment will appear in final Accounts (a) three places (b) two places (c) four places (d) one place 8) Outstanding expenditure is a (a) Nominal account (b) Personal account (c) Real account (d) Current account 9) The depreciation account deals with (a) AS4 (b) AS6 (c) AS10 KASC-Commerce (d) AS13 CA 10) According to which concept, proprietor of a business is treated as a creditors to the extent of his capital (a) Money measurement (b) Cost (c) Dual aspect (d) Business entity 11) The policy of anticipate no profit and provide for all possible losses arises due to (a) Convention of consistency (b) Convention of conservatism (c) Convention of materiality (d) Convention of full disclosure 12) ‘Every debit has a corresponding credit’ it is the concept of (a) Incomplete records (b) Cost sheets (c) Single entry system (d) Double entry system Page 1 Principles of Accountancy 18UCC101 13. Journal is book of (a) First Entry (b) second Entry (c) Third Entry (d) Fifth Entry 14. Ledger is a book of (a) Original entry (b) Final entry (c) Both (d) None 15. Trail balance is prepared to find out the----------. (a) P&L (b) Financial Position (c) Decision Making (d) Arithmetical accuracy of the accounts 16. The system of recording transactions dual concept is called ----------- system. (a) Double entry (b) Single entry (c) Double and Single (d) Primary 17. Which accounting a used to find out profit or loss. (a) Cost (b) Management (c) Financial (d) Corporate 18. The Assets of a business on 31st March 2017 are worth Rs.80000 and its capital is Rs.35000.Its liabilities on that date shall be (a) Rs.45,000 (b) Rs.15,000 (c) Rs.1,15,000 (d) Rs.35,000 19. Wages is an example of (a) Capital expenses (b) Direct expenses (c) Indirect expenses (d) Sundry expenses 20. Trading A/c is prepared to find out (a)Gross profit or loss (b) Net profit or loss (c) Financial position (d) Net worth UNIT - II 21. An entry of Rs.75 has been debited to Ram account as Rs.57 is an error of (a) Principle KASC-Commerce (b) Commission CA (c) Omission (d) Compensating 22. A bank reconciliation statement is prepared by (a). Customer of the bank (b) Bank (c) Company (d) RBI 23. The difference in trial balance is taken to (a) The capital account (b) The trading account (c) The suspense account (d) The profit and loss account 24. When the cash withdrawn from the bank, the bank _______the customer ‘s account. (a) Debit (b) Credit (c) No Change (d) Charge Page 2 Principles of Accountancy 18UCC101 25. The error disclosed by Trial Balance is (a) Error of principle (b) Wrong amount posted in ledger account (c) Errors of omission (d) Non‐ recording of a transaction in the books of original entry 26. A transaction not recorded at all is known as an error of (a) Principle (b) Complete omission (c) Partial omission (d) Duplication 27. Errors not affecting the agreement of trial balance are (a) Errors of principle (b) Errors of overcastting (c) Errors of undercasting (d) Errors of partial omission 28. Wages paid for installation of machinery wrongly debited to wages account is an error of (a) Partial omission (b) Principle (c) Complete omission (d) Duplication 29. Rs 200 paid as wages for erecting a machine should be debited to (a) Repair account (b) Machine account (c) Capital account (d) Furniture account 30. Recording credit sale in purchase book is an error of (a) Commission (b) Principle (c) Overcastting (d) Undercasting 31. When the balance as per cash book is the starting point, direct deposits by customers are (a) Added (b) Subtracted (c) Not required to be adjusted (d) neither of the two 32. A bank reconciliation statement is prepared with the help of (a) Bank statement (b) Cash book (c) Petty cash book (d) Bank statement and bank column of the cash book 33. Debit balance in the bank column of the cash book means (a) Credit balance as per bank statement (b) Debit balance as per bank statement (d) Overdraft as per cash book (d) None of the Above 34. A bank statement is a copy of (a) Cash column of the cash book (b) Bank column of the cash book (c) A customer’sKASC-Commerce account in the bank’s book (d) Cheques issued CAby the business 35. A bank reconciliation statement is prepared to know the causes for the difference between: (a) The balance as per the cash column of the cash book & bank column of the cash book (b) The balance as per the cash column of the cash book and bank statement (c) The balance as per the bank column of the cash book and the bank statement (d) The balance as per petty cash book and the cash book 36. When money is withdrawn from bank, the bank (a) Credits customer’s account (b) Debits customer’s account (c) Debits and credits customer’s account (d) Bank account Page 3 Principles of Accountancy 18UCC101 37. Which of the following is not the salient feature of bank reconciliation statement? (a) Any undue delay in the clearance of cheques will be shown up by the reconciliation (b) Reconciliation statement will discourage the accountant of the bank from embezzlement (c) It helps in finding the actual position of the bank balance (d) Reconciliation statement is prepared only at the end of the accounting period 38. Balance as per cash book is ` 2, 000. Bank charge of ` 50 debited by the bank is not yet shown in the cash book. What is the bank statement balance now? (a) Rs1,950 credit balance (b) Rs 1,950 debit balance (c) Rs 2,050 debit balance (d) Rs 2,050 credit balance 39. Balance as per bank statement is Rs.1,000. Cheque deposited, but not yet credited by the bank is Rs2,000. What is the balance as per bank column of the cash book? (a) Rs 3,000 overdraft (b) Rs 3,000 favourable (d) Rs 1,000 overdraft (d) Rs 1,000 favourable 40.Which one of the following is not a timing difference? (a) Cheque deposited but not yet credited (b) Cheque issued but not yet presented for payment (d) Amount directly paid into the bank (d) Wrong debit in the cash book UNIT - III 41. The Objectives of Non Trading Organization is (a) Profit motive (b) Services motive (c) Both A& B (d) None of these 42. Depreciation on fixed asset is a _______expenditure (a) Revenue (b) Capital (c) Deferred revenue (d) None of these 43. Subscription received in advance by a club is shown on the _____ side of the balance sheet (a) Liabilities (b) Assets (c) Credit KASC-Commerce (d) debit CA 44. Life membership fee received by a club are shown in (a) B/S (b) P & L A/C (c) Income & Expenditure A/C (d) Revenue A/C 45. Which concerns prepare Income and expenditure A/ C (a) Trading (b) Non – trading (c) Manufacturing (d) Processing 46. Income and expenditure Account is (a) Real A/C (b) Personal A/C (c) Nominal A/C (d) Real-Cum-Personal A/C Page 4 Principles of Accountancy 18UCC101 47. Receipts and payment account contains (a) Only receipts and payment of current year (b) All receipts and payments (c) Income and expenditure (d) All the above 48. Balance of receipts and payments account represents (a) Cash in hand or at bank (b) Surplus (c) Deficit (d) Reserve 49. Educational institutions are (a) Profit organizations (b) Non profit organizations (c) Wealth organization (d) Social organization 50. Non profit organizations trial balance shows (a) Debit (b) Credit (c) Equal balance (d) Suspense account 51. In not-for-profit organizations, excess of expenditure over income is called (a) Loss (b) Profit (c) Deficit (d) Surplus 52.
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