Accounting MCQ

[Mohammad Hasham]

27 A limited company provided the following information.
$
non-current (fixed) assets 35 000
ordinary share capital 40 000
5% debentures 10 000
net current assets (working capital) 30 000
What was the retained profit (profit and loss account)?
A $15 000 B $25 000 C $55 000 D $115 000 .......... I m facing difficulty in answering it... someone plz assist me .......

 

[Saifyyy]

B is answer...

 

[M.Hamza]

27 A limited company provided the following information.
$
non-current (fixed) assets 35 000
ordinary share capital 40 000
5% debentures 10 000
net current assets (working capital) 30 000
What was the retained profit (profit and loss account)?
A $15 000 B $25 000 C $55 000 D $115 000 .......... I m facing difficulty in answering it... someone plz assist me .......

Hi Hasham,firstly calculate capital employed,(30000+35000=65000),then calculate net assets(65000-10000=55000).Hence,55000 is balancing figure.
Now,consider equity side,total will comprise of ordinary share capital+retained profit,thus 40000+x=55000.i HAVE assumed retained profit x in equation,thus 15000 is ur answer(A).

 

[Waleed Ali]

help me in these MCQs...
1. A company began trading on 1 January 2012. During that month, the following transactions took
place.
received capital from shareholders, $10 000
received goods for resale, $4000
despatched goods to customer, $5000
paid $3000 for goods received
What was the total in the bank account on 31 January 2012?
A$7000 B$8000 C$11 000 D$12 000

2. Which is true about a bank reconciliation statement?
A It may uncover any theft of funds.
B It is part of the double entry records of a business.
C It is prepared by the bank.
D It shows items which are in both the cash book and the bank statement.

3. Hasina buys radios from Nazneen at a list price of $10 each. Hasina bought 12 radios and was
offered 20% trade discount and 4% cash discount. Two radios were faulty and returned to
Nazneen.
What was the total of the credit note issued by Nazneen?
A$15.36 B$16.00 C$19.20 D$20.00

4.Which total is shown by the closing balance on a purchases ledger control account?
A cash purchases
B credit purchases
C trade payables
D trade receivables

5.James is a business advisor. His year-end accounts included the following.
$
wages 70 000
general expenses 18 200
depreciation 800
fixtures (book value) 8 000
debtors 19 500
creditors 3 100
net profit 33 000
How much was his fee income?
A$108 500 B$113 400 C$122 000 D$141 500

6.Li, a trader, discovered an error in her accounting records. She made the following entry in her
general journal to correct this error.
2009
dr
$
cr
$
March 31
Stationery 20
Purchases 20
Which error made this entry necessary?
A Goods purchased for re-sale had been credited to the stationery account.
B Goods purchased for re-sale had been debited to the stationery account.
C Stationery purchased for office use had been credited to the purchases account.
D Stationery purchased for office use had been debited to the purchases account.


7. Helmuth provided the following information.
$
opening stock 10 000
purchases for year 32 500
closing stock 9 500
All goods are sold at a profit margin of 33.3%.
What were the sales for the year?
A $40 000 B $44 000 C $48 000 D $49 500

 

[Waleed Ali]

8. Zafar returns goods bought on credit from Khalid.
How is this recorded in Zafar’s books?
account to be debited account to be credited
A Khalid purchases returns
B Khalid sales returns
C purchases returns Khalid
D sales returns Khalid

9.Which is a compensating error?
A cheque received from J. Wilks debited to the account of J. Wilson
B drawings debited to the cash accountand credited to the drawings account
C purchase of a motor vehicle on credit debited to the motor expenses account
D sales account and purchases account both undercast by the same amount

10. On 1 September the bank statement showed an overdrawn balance of $2015.
A refund for insurance, $74, and bank charges, $86, have not been entered in the cash book.
What was the balance on the cash book on 1 September before it was updated?
A$2003 credit
B$2003 debit
C$2027 credit
D$2027 debit

11. A limited company provided the following information.
$
non-current (fixed) assets 35 000
ordinary share capital 40 000
5% debentures 10 000
net current assets (working capital) 30 000
What was the retained profit (profit and loss account)?
A $15 000 B $25 000 C $55 000 D $115 000

 

[Waleed Ali]

Hi Hasham,firstly calculate capital employed,(30000+35000=65000),then calculate net assets(65000-10000=55000).Hence,55000 is balancing figure.
Now,consider equity side,total will comprise of ordinary share capital+retained profit,thus 40000+x=55000.i HAVE assumed retained profit x in equation,thus 15000 is ur answer(A).

bro. i didnot get this... kindly explain again..

 

[Mohammad Hasham]

Hi Hasham,firstly calculate capital employed,(30000+35000=65000),then calculate net assets(65000-10000=55000).Hence,55000 is balancing figure.
Now,consider equity side,total will comprise of ordinary share capital+retained profit,thus 40000+x=55000.i HAVE assumed retained profit x in equation,thus 15000 is ur answer(A).

thanks alot buddy... u are assisting me a lot...

 

[Mohammad Hasham]

Hi Hasham,firstly calculate capital employed,(30000+35000=65000),then calculate net assets(65000-10000=55000).Hence,55000 is balancing figure.
Now,consider equity side,total will comprise of ordinary share capital+retained profit,thus 40000+x=55000.i HAVE assumed retained profit x in equation,thus 15000 is ur answer(A).

thanks dear.... i m an olevel student and will give my MCQ paper on 15 may 2013

 

[Mohammad Hasham]

Hi Hasham,firstly calculate capital employed,(30000+35000=65000),then calculate net assets(65000-10000=55000).Hence,55000 is balancing figure.
Now,consider equity side,total will comprise of ordinary share capital+retained profit,thus 40000+x=55000.i HAVE assumed retained profit x in equation,thus 15000 is ur answer(A).

.............. what was ur grade in accounting???????

 

[Sarah Paul]

help me in these MCQs...
1. A company began trading on 1 January 2012. During that month, the following transactions took
place.
received capital from shareholders, $10 000
received goods for resale, $4000
despatched goods to customer, $5000
paid $3000 for goods received
What was the total in the bank account on 31 January 2012?
A$7000 B$8000 C$11 000 D$12 000

2. Which is true about a bank reconciliation statement?
A It may uncover any theft of funds.
B It is part of the double entry records of a business.
C It is prepared by the bank.
D It shows items which are in both the cash book and the bank statement.

3. Hasina buys radios from Nazneen at a list price of $10 each. Hasina bought 12 radios and was
offered 20% trade discount and 4% cash discount. Two radios were faulty and returned to
Nazneen.
What was the total of the credit note issued by Nazneen?
A$15.36 B$16.00 C$19.20 D$20.00

4.Which total is shown by the closing balance on a purchases ledger control account?
A cash purchases
B credit purchases
C trade payables
D trade receivables

5.James is a business advisor. His year-end accounts included the following.
$
wages 70 000
general expenses 18 200
depreciation 800
fixtures (book value) 8 000
debtors 19 500
creditors 3 100
net profit 33 000
How much was his fee income?
A$108 500 B$113 400 C$122 000 D$141 500

6.Li, a trader, discovered an error in her accounting records. She made the following entry in her
general journal to correct this error.
2009
dr
$
cr
$
March 31
Stationery 20
Purchases 20
Which error made this entry necessary?
A Goods purchased for re-sale had been credited to the stationery account.
B Goods purchased for re-sale had been debited to the stationery account.
C Stationery purchased for office use had been credited to the purchases account.
D Stationery purchased for office use had been debited to the purchases account.


7. Helmuth provided the following information.
$
opening stock 10 000
purchases for year 32 500
closing stock 9 500
All goods are sold at a profit margin of 33.3%.
What were the sales for the year?
A $40 000 B $44 000 C $48 000 D $49 500

1. i'm not sure of the 1st one but i think its D

2. C

3. B

4. B

5. C

6. C

7. B

 

[M.Hamza]

H

.............. what was ur grade in accounting???????

Hi Hasham,i got B in O level Acounts,and A in A level Accounts.

 

[M.Hamza]

thanks dear.... i m an olevel student and will give my MCQ paper on 15 may 2013

Ohk Hasham,gud luck dude,and i will try to answer ur queries.Though i have done my a level,but i am retaking a level business studies fr university purposes.

 

[M.Hamza]

8. Zafar returns goods bought on credit from Khalid.
How is this recorded in Zafar’s books?
account to be debited account to be credited
A Khalid purchases returns
B Khalid sales returns
C purchases returns Khalid
D sales returns Khalid

9.Which is a compensating error?
A cheque received from J. Wilks debited to the account of J. Wilson
B drawings debited to the cash accountand credited to the drawings account
C purchase of a motor vehicle on credit debited to the motor expenses account
D sales account and purchases account both undercast by the same amount

10. On 1 September the bank statement showed an overdrawn balance of $2015.
A refund for insurance, $74, and bank charges, $86, have not been entered in the cash book.
What was the balance on the cash book on 1 September before it was updated?
A$2003 credit
B$2003 debit
C$2027 credit
D$2027 debit

11. A limited company provided the following information.
$
non-current (fixed) assets 35 000
ordinary share capital 40 000
5% debentures 10 000
net current assets (working capital) 30 000
What was the retained profit (profit and loss account)?
A $15 000 B $25 000 C $55 000 D $115 000

Hi waleed ali,fr 8- c is answer as purchases returns journal is for individual purchases returns.
9-d is answer.A compensating error is when two errors compensate each other.In this case,sales account is understated which means a credit account is understated,purchases account is understated which means a debit account is understated,and r both r understated by same amount thus they compensated each other.

 

[M.Hamza]

help me in these MCQs...
1. A company began trading on 1 January 2012. During that month, the following transactions took
place.
received capital from shareholders, $10 000
received goods for resale, $4000
despatched goods to customer, $5000
paid $3000 for goods received
What was the total in the bank account on 31 January 2012?
A$7000 B$8000 C$11 000 D$12 000

2. Which is true about a bank reconciliation statement?
A It may uncover any theft of funds.
B It is part of the double entry records of a business.
C It is prepared by the bank.
D It shows items which are in both the cash book and the bank statement.

3. Hasina buys radios from Nazneen at a list price of $10 each. Hasina bought 12 radios and was
offered 20% trade discount and 4% cash discount. Two radios were faulty and returned to
Nazneen.
What was the total of the credit note issued by Nazneen?
A$15.36 B$16.00 C$19.20 D$20.00

4.Which total is shown by the closing balance on a purchases ledger control account?
A cash purchases
B credit purchases
C trade payables
D trade receivables

5.James is a business advisor. His year-end accounts included the following.
$
wages 70 000
general expenses 18 200
depreciation 800
fixtures (book value) 8 000
debtors 19 500
creditors 3 100
net profit 33 000
How much was his fee income?
A$108 500 B$113 400 C$122 000 D$141 500

6.Li, a trader, discovered an error in her accounting records. She made the following entry in her
general journal to correct this error.
2009
dr
$
cr
$
March 31
Stationery 20
Purchases 20
Which error made this entry necessary?
A Goods purchased for re-sale had been credited to the stationery account.
B Goods purchased for re-sale had been debited to the stationery account.
C Stationery purchased for office use had been credited to the purchases account.
D Stationery purchased for office use had been debited to the purchases account.


7. Helmuth provided the following information.
$
opening stock 10 000
purchases for year 32 500
closing stock 9 500
All goods are sold at a profit margin of 33.3%.
What were the sales for the year?
A $40 000 B $44 000 C $48 000 D $49 500

Hi Waleed Ali,
1-B in answer,debit side(10000+5000)less credit side(4000+3000),net balance debit is 8000.
3-credit note is issued by a supplier when a customer returns goods to supplier.So,cost of two radios 2x10=20,then 20% discount will be deducted ,20x20/100=4,then 20-4=16.and $16 goods r returned by haseena to nazneen.
Note=trade discount is discount given initially by supplier to encourage bulk-buying or to attract customers etc.It will be deducted from list price.Cash discount is discount given when a credit customer pays his dues to supplier,thus it will not be deducted unless payment is made by customer.
4.B is answer as purchases ledger control account shows total of credit purchases.it is important to remember that cash purchases will not be recorded in purchases ledger control account.
6.D is answer as initially purchases account was debited with amount to be entered in stationery account,then error was corrected as per entry given in option.
7.D is answer firstly change margin to markup and it will be 50%,total cost of sales is 33000(10000+32500-9500),gross profit is 16500(33000x50/100).Then 16500=x-33000.i have assumed x for sales and it will be 49500.