FS of Sole Proprietorship Test

Result

FS of Sole Proprietorship Test - 5

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Weekly Quiz Competition

Question 1
1 / -0

Match the following. Options are as follows:

a. Office and admn. Expenses i. Interest on loan

b. selling and distribution Expenses ii. Printing & stationery

c. Financial Expenses iii. Discount allowed

A
a - (iii), b - (ii), c - (i)

B
a - (ii), b - (iii), c - (i)

C
a - (ii), b - (i), c - (iii)

D
a - (i), b - (iii), c - (ii)

Solution

office expenses are printing and stationery, selling and distribution expenses is discount allowed and financial expense is interest on loan.
Question 2
1 / -0

Accounting treatment of Deferred Revenue Expenditure is based on which principle

A
Going concern concept

B
Cost concept

C
Matching Principle

D
Money Measurement

Solution

deferred revenue expenditure is if of revenue in nature then its treatment is done according to matching principle i.e expenses of current year will be matched with the income of current year.
Question 3
1 / -0

What should be the journal entry when the amount of bad debt is recorded in the books

A

Bad Debts Dr.

To Sundry Debtors A/c

B

Profit and Loss A/c Dr.

To Sundry Debtors A/c

C

Bad Debts Dr.

To Profit And Loss A/c

D

Bad Debts recovered Dr.

To Sundry Debtors A/c

Solution

since bad debts is loss for the business it is debited and debtors that is asset is decreasing so it is credited.
Question 4
1 / -0

Packaging material will be

A
Credited to Profit and loss A/c

B
Debited to Profit and loss A/c

C
Credited to trading A/c

D
Debited to trading A/c

Solution

since it is direct expense it will be shown on debit side of trading account.
Question 5
1 / -0

What should be the journal entry when managers commission due

A

Outstanding Manager's Commission A/c Dr.

To Manager's Commission A/c

B

Manager's Commission A/c Dr.

To Outstanding Manager's Commission A\c

C

Manager's Commission A/c Dr.

To Outstanding Manager's A/c

D

Manager's Commission A/c Dr.

To Outstanding Manager's Commission A/c

Solution

manager commission is expense so it is debited and since it is outstanding hence outstanding manager commission account is credited.

Manager's Commission A/c Dr.

To Outstanding Manager's Commission A/c
Question 6
1 / -0

Which of the following is Revenue Receipt

A
Loan raised.

B
Income from non-operating business activities

C
Fresh capital introduced or additional capital introduced

D
Amount received which is not is the normal and ordinary course of business like sale of fixed assets.

Solution

revenue receipts are those which do not affect the asset and liabilities. since income from non operating business activities do not affect asset and liabilities it is revenue receipt.

Question 7

1 / -0

Match the following. Options are as follows

a. Revenue	i. Expenses incurred on purchase of fixed asset
b. Capital receipt	ii. Renewal expenses/fee of patent
c. Revenue Expenditure	iii. Fresh capital introduced or additional capital introduced
d. Capital expenditure	iv. Commission and other fees received for non-operating business ser - vice rendered.

a - (iv), b - (ii), c - (iii), d - (i)

a - (iii), b - (iv), c - (ii), d - (i)

a - (iv), b - (iii), c - (ii), d - (i)

a - (iv), b - (iii), c - (i), d - (ii)

Solution

revenue receipt and expenditure does not affect assets and liabilities. capital receipt and expenditure affects the assets and liabilities.

Question 8
1 / -0

Expenditure incurred by a publisher for acquiring copyrights is a _________.

A
Capital receipts

B
Capital expenditure.

C
Deferred reserve expenditure

D
Reserve expenditure.

Solution

copyrights is considered as an asset so expenditure which increases the asset is capital expenditure.
Question 9
1 / -0

Which one of the following should be considered revenue expenditure?

A
Damage paid on account of breach of a contract to supply certain goods.

B
Rs. 1000 paid for the execution of a new plant.

C
Loss of Rs. 10000 incurred in increasing the sitting accommodation of hotel.

D
Repairs to machinery purchased

Solution

this transcation does not affect the assets and liabilities so it is revenue expenditure.
Question 10
1 / -0

Which one of the following is capital expenditure?

A
Cost of advertisement for current year

B
Purchase of machine oil

C
Purchase of Land and Building

D
Purchase of raw material

Solution

since it increases the asset so it is capital expenditure.

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Question Analysis

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Re-Attempt Weekly Quiz Competition

a. Office and admn. Expenses	i. Interest on loan
b. selling and distribution Expenses	ii. Printing & stationery
c. Financial Expenses	iii. Discount allowed

Outstanding Manager's Commission A/c	Dr.
To Manager's Commission A/c

Manager's Commission A/c	Dr.
To Outstanding Manager's Commission A\c

Manager's Commission A/c	Dr.
To Outstanding Manager's Commission A/c

Bad Debts	Dr.
To Sundry Debtors A/c

Profit and Loss A/c	Dr.
To Sundry Debtors A/c

Bad Debts	Dr.
To Profit And Loss A/c

Bad Debts recovered	Dr.
To Sundry Debtors A/c

FS of Sole Proprietorship Test - 5

Result

FS of Sole Proprietorship Test - 5

Score

-

Rank

-

SHARING IS CARING

Question 1

a - (iii), b - (ii), c - (i)

a - (ii), b - (iii), c - (i)

a - (ii), b - (i), c - (iii)

a - (i), b - (iii), c - (ii)

Solution

Question 2

Going concern concept

Cost concept

Matching Principle

Money Measurement

Solution

Question 3

Bad Debts Dr. To Sundry Debtors A/c

Profit and Loss A/c Dr. To Sundry Debtors A/c

Bad Debts Dr. To Profit And Loss A/c

Bad Debts recovered Dr. To Sundry Debtors A/c

Solution

Question 4

Credited to Profit and loss A/c

Debited to Profit and loss A/c

Credited to trading A/c

Debited to trading A/c

Solution

Question 5

Outstanding Manager's Commission A/c Dr. To Manager's Commission A/c

Manager's Commission A/c Dr. To Outstanding Manager's Commission A\c

Manager's Commission A/c Dr. To Outstanding Manager's A/c

Manager's Commission A/c Dr. To Outstanding Manager's Commission A/c

Solution

Question 6

Loan raised.

Income from non-operating business activities

Fresh capital introduced or additional capital introduced

Amount received which is not is the normal and ordinary course of business like sale of fixed assets.

Solution

Question 7

a - (iv), b - (ii), c - (iii), d - (i)

a - (iii), b - (iv), c - (ii), d - (i)

a - (iv), b - (iii), c - (ii), d - (i)

a - (iv), b - (iii), c - (i), d - (ii)

Solution

Question 8

Capital receipts

Capital expenditure.

Deferred reserve expenditure

Reserve expenditure.

Solution

Question 9

Damage paid on account of breach of a contract to supply certain goods.

Rs. 1000 paid for the execution of a new plant.

Loss of Rs. 10000 incurred in increasing the sitting accommodation of hotel.

Repairs to machinery purchased

Solution

Question 10

Cost of advertisement for current year

Purchase of machine oil

Purchase of Land and Building

Purchase of raw material

Solution

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Question Analysis

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Bad Debts Dr.

To Sundry Debtors A/c

Profit and Loss A/c Dr.

To Sundry Debtors A/c

Bad Debts Dr.

To Profit And Loss A/c

Bad Debts recovered Dr.

To Sundry Debtors A/c

Outstanding Manager's Commission A/c Dr.

To Manager's Commission A/c

Manager's Commission A/c Dr.

To Outstanding Manager's Commission A\c

Manager's Commission A/c Dr.

To Outstanding Manager's A/c

Manager's Commission A/c Dr.

To Outstanding Manager's Commission A/c