FS of Sole Proprietorship Test

Result

FS of Sole Proprietorship Test - 6

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Weekly Quiz Competition

Question 1
1 / -0

Which one of the following is treated as revenue expenditure?

A
A dealer in purchasing sewing machines and spent some money on the repairs.

B
Cost incurred for a new exit as required under the local bodies by laws

C
Interest paid on loan during the construction of works.

D
Cost of pulling down an old building

Solution

it does not increase the asset so it is revenue expenditure.
Question 2
1 / -0

Expenditure incurred on research is an example of _______.

A
Revenue expenditure.

B
Deferred revenue expenditure

C
Capital expenditure.

D
Partly capital expenditure

Solution

as the benefits of research will be distributed over the years so it is deferred revenue expenditure
Question 3
1 / -0

The balance sheet is a ________ of the assets, liabilities and capital of a concern as on particular date.

A
Document

B
Picture

C
Balance

D
Statement

Solution

as it shows the position of assets and liabilities of the business.
Question 4
1 / -0

A gross profit is transferred to the __________side of the profit and loss account.

A
Debit

B
Asset

C
Current

D
Credit

Solution

profit and loss account is nominal account so all profit and gains are credited
Question 5
1 / -0

Income tax paid by a solo trader is shown

A
On the debit side of the Trading account

B
On the debit side of the Profit and loss account

C
By way of deduction from capital in the balance sheet

D
None of these

Solution

since it is personal expense of the owner it is considered as drawings so it is subtracted from capital in the balance sheet.
Question 6
1 / -0

Training fee received appearing in the Trail balance is shown

A
On the Credit side of the Trading account

B
On the credit side of the Profit and loss account

C
On the credit side of the Profit and loss account

D
On the debit side of the Trading account

Solution

it is indirect income so it will be shown on the credit side of profit and loss account.
Question 7
1 / -0

On which side of the Balance sheet the prepaid expenses shows

A
Outside the balance sheet

B
Liabilities side

C
Assets side

D
None of these

Solution

it is current asset so it will be shown on the asset side of balance sheet.
Question 8
1 / -0

Closing stock is not shown in

A
Profit and Loss Account

B
Trading Account

C
Balance sheet

D
None of these

Solution

it is shown in trading account credit side and balance sheet asset side
Question 9
1 / -0

Calculate gross profit if rate of gross profit is 20% on sale and cost of goods sold is Rs.120000

A
Rs.25000

B
Rs.35000

C
Rs.30000

D
Rs.12000

Solution

gross profit = 1/4 of cost = 30,000
Question 10
1 / -0

If the rent received in advance Rs.1000 the adjusting entry will be

A
Cr. Rent A/c and Dr. Rent Received in advance A/c

B
Dr. Rent A/c and Cr. Rent Received in advance A/c

C
Dr. Profit and Loss c and Cr. Rent Received in advance A/c

D
Dr. Rent A/c and Cr. Profit and Loss A/c

Solution

rent is expense so it is debited rent received in advance is liablity it is credited.

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Re-Attempt Weekly Quiz Competition

FS of Sole Proprietorship Test - 6

Result

FS of Sole Proprietorship Test - 6

Score

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Rank

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SHARING IS CARING

Question 1

A dealer in purchasing sewing machines and spent some money on the repairs.

Cost incurred for a new exit as required under the local bodies by laws

Interest paid on loan during the construction of works.

Cost of pulling down an old building

Solution

Question 2

Revenue expenditure.

Deferred revenue expenditure

Capital expenditure.

Partly capital expenditure

Solution

Question 3

Document

Picture

Balance

Statement

Solution

Question 4

Debit

Asset

Current

Credit

Solution

Question 5

On the debit side of the Trading account

On the debit side of the Profit and loss account

By way of deduction from capital in the balance sheet

None of these

Solution

Question 6

On the Credit side of the Trading account

On the credit side of the Profit and loss account

On the credit side of the Profit and loss account

On the debit side of the Trading account

Solution

Question 7

Outside the balance sheet

Liabilities side

Assets side

None of these

Solution

Question 8

Profit and Loss Account

Trading Account

Balance sheet

None of these

Solution

Question 9

Rs.25000

Rs.35000

Rs.30000

Rs.12000

Solution

Question 10

Cr. Rent A/c and Dr. Rent Received in advance A/c

Dr. Rent A/c and Cr. Rent Received in advance A/c

Dr. Profit and Loss c and Cr. Rent Received in advance A/c

Dr. Rent A/c and Cr. Profit and Loss A/c

Solution

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