MODEL QUESTIONS

Intermediate Vocational Exam 2018

ACCOUNTANCY(ACY)

Candidates are required to give their answer in their own words as far as practicable :

Time :- 3 Hours 15 Minutes Full Marks :- 100

Instructions : There are three sections of questions papers :

Section A contains 50 questions. Each question is multiple choice type having 1

mark each. Total Marks 50

Section B contains 22 questions. Each question is short answer type having 2 marks

each. Students are instructed to answer any 15 questions out of total 22.

Total Marks 30.

Section C contains only 4 questions with substitute. Each question is long answer

type having 5 marks each. Total marks 20.

Group - A

{ }

(Objective Type Questions )

***

*** For Questions Nos. I to 50 there is only one correct answer. In each Question you

have to choose correct answer from the given options :

Q1. Accounting is:

A. (An Art) B. (A Science)

C (An Art and a Science both) D. (None of the above) Q2.

Who invented the Double Entry System of book-keeping?

A. (William Pickles) B. (Lucas Pacioli)

C. (J.R. Batliboi) D. (Karl Marx)

Q3.

Kinds of goods are:

A. (Purchase) B. (Sales)

C. (Purchase Returns) D. (All of these)

Q4.

Which of the following is not an expense?

A. (Salaries) B. (Rent)

C. (Purchase) D. (Drawings)

Q5.

Which is an Intangible Asset in the following?

A. (Goodwill) B. (Trademark)

C. (Patents) D. (All of These)

Q6.

Fixed assets include:

A. (Furniture) B. ( Cash)

C. (Closing Stock) D. (Payment in advance)

Q7.

Accounting Standards are mandatory for :

A. (Companies) B. (Partnership Firm)

C. (Charitable Organisations)

D. (Sole Proprietorship)

Q8.

Which of the following will not be recorded in the book of account:

A. (Sale of Goods) B. (Payment of Salary)

C. (Salary to Staff)

D. (Order for Supply of Goods)

Q9.

Source document used for cash sales is

A. (Cash Memo) B. (Invoice and Bill )

C. (Cash Receipt) D. (Debit Note)

Q10.

........... is sent to a customer when he returns goods.

A. (Debit Note) B. (Credit Note)

C. (Invoice) D. (None of these)

Q11.

Debit indicates which of the following:

A. (Increase in Assets) B. (Decrease in Liabilities)

C. (Decrease in Capital ) D. (All of these)

Q12.

Accounting Equation is satisfied by:

A. = + (Capital=Assets+ liabilities )

B. = (Liabilities=Capital-Assets )

C. = (Capital=Net Assets)

D. = + (Capital=Assets+Profit)

Q13.

Bank Overdraft A/c is :-

A. (Personal A/c) B. (Real A/c)

C. (Nominal A/c)

D. (Representive Personal A/c)

Q14.

Advantage of Double Entry System are :

A. (Scientific System)

B. (Knowledge of Financial Position )

C. (Knowledge of Different A/c )

D. (All of these)

Q15.

Goods taken by proprietor the account will be credited to?

A. (Goods A/c) B. (Purchase A/c )

C. (Drawings A/c) D. (Capital A/c)

Q16.

The left hand side of an account is known as

A. (Debit Side) B. (Cridit Side)

C. (Free Side) D. (None of these)

Q.17

What is a Ledger?

A. (Subsidiary Book) B. (Memorandum Book )

C. (Principal Book) D. (None of these)

Q18.

Cash Book is

A. (An Account) B. (A Subsidiary Book)

C. A+B (Both) D. (None of these)

Q19.

The balance of Petty Cash Book is a ……

A. (Assets) B. (Liability)

C. (Expense) D. (Income)

Q20. Which of the following is not a book of original entry?

A. (Journal) B. (Ledger) C. (Cash Book) D. (Bills Receivable Book)

Q21.

Closing entries are recorder in the following ?

A. (Cash Book ) B. (Ledger)

C. (Journal Proper) D. (Balance Sheet)

Q22.

A Bank Reconciliation reconuliation statement is prepared by A. (Customers of the Bank) B. (By Bank) C. (By Creditor ) D. (None of these)

Q23.

A Trial Balance is

A. (Personal A/c) B. (Real A/c)

C. (Nominal A/c) D. (Schedule of Balance)

Q24.

While Posting one zero is missing ………. is it called A. (Error of Omission)

B. (Error of commission)

C. (Compensating Error)

D. (Error of principle)

Q25.

When Trial balance is not matched which A/c is opened?

A. (Trading A/c) B. (Suspense A/c)

C. (Profit and loss A/c) D. (None of these)

Q26.

Depreciation is an

A. (Expenses) B. (Provision)

C. (Income) D. (None of these)

Q27.

One who draws the Bill is Called ……….

A. (Drawer) B. (Drawee)

C. (Payee) D. (None of these)

Q28.

A Bill of Exchange is drawn by

A. (Debtor) B. (Creditor)

C. (Both of them) D. (None of these)

Q29.

A Promissory Note does not require

A. (Noting) B. (Discounting)

C. (Accepting) D. (None of these)

Q30.

2000 spent on the repair of a Machine

A. (Capital Expenditure) B. (Revenue Expenditure)

C. (Deferred Revenue Expenditure)

D. (None of these)

Q31. %

If profit of cost is 25% then profit on net sales which be ……

A. 20% B. 30% C. 33

% D. 40%

Q32.

Balance Sheet is

A. (A Statement of Affairs) B. (An Account)

C. A+B (Both) D. (None of these)

Q33.

Excess of Income an cost is called ………

A. (Capital) B. (Profit)

C. (Assets) D. (None of these)

Q34.

Expenses relating to purchases of material are shown in ………

A. (Trading A/c) B. (B/S)

C. (P & L A/c) D. (None of these)

Q35.

Which A/c statement is proposed by a businessman after ledger?

A. (Journal) B. (Purchase Book)

C. (B/S) D. (All of them)

Q36.

Reserve for bad and doubtful debts is made on

A. (Bad Debts) B. (Debtors)

C. (Creditors) D. (All of the above)

Q37.

Payment of honorarium to Secretary is treated as

A. (Capital Expenditure) B. (Income)

C. (Revenue Expenditure) D. (None of these)

Q38.

Computer is a ……

A. (Launching Machine) B. (Calculator)

C. (Controlling Device)

D. (None of the above)

Q39.

Which of the following two digits are used in Binary System

A. 1, 2 B. 0, 1 C. 1, 3 D. 2, 1

Q40.

Computerised Accounting is

A. (Software) B. (Data base)

C. (Hardware) D. (All of these)

Q41.

Users of accounting information include

A. (Creditors) B. (Lenders)

C. (Customers) D. (All of these)

Q42.

Proprietor's A/c is ………………. A/c

A. (Real) B. (Nominal)

C. (Personal) D. (None of these)

Q43.

How many columns are there in a Journal

A. (Three) B. (Four)

C. (Five) D. (Eight)

Q44.

Wages owing is

A. (Personal A/C) B. (Impersonal A/c)

C. (Real A/c) D. (Assets A/c)

Q45.

Petty Cash Book is maintained to record

A. (Petty Cash Receipts)

B. (Petty Cash payments)

C. (Both of them) D. (None of these)

Q46.

Compensating errors affect the agreement of

A. (Trial Balance) B. (Balance Shet)

C. (Both of them) D. (None of these)

Q47.

In case of non-agreement of Trial Balance the amount is temporarily put to

A. (Debtor's A/c) B. (Creditor's A/c)

C. (Suspense A/c) D. (Stock A/c)

Q48.

Accounting Standard - 6 is related to

A. (Revenue Recognitions)

B. (Valuation of stock)

C. (Depreciation Accounting) D. (Lease)

Q49.

How many parties are there to a Bill of Exchange

A. (2) B. (3)

C. (4) D. (5)

Q50.

How many bytes are there in One Kilo Byte?

A. (1000 bytes) B. (500 bytes)

C. (1024 bytes) D. (2000 bytes)

II Section- II

Q1.

Define Accounting.

Q2.

Give two functions of accounting.

Q3.

Describe any two branches of accounting.

Q4.

What do you mean by liquid Assets?

Q5.

What is Business Transaction?

Q6.

Give the name of any two Accounting Concepts.

Q7.

Name any two accounting vouchers.

Q8.

Give Specimen of a Cash Memo.

Q9.

What do you meant by Balance Sheet Equation?

Q10.

Give any two advantages of Double Entry System.

Q11.

Give the types of Accounts according to Modern Approach.

Q12.

What is Journal? Give its form.

Q13.

State difference between Trade Discount and Cash Discount.

Q14.

Give an example of Compound Entry.

Q15.

What are the rules of Posting?

Q16.

Distinguish between Journal and Ledger.

Q17.

State any three features of Cash Book.

Q18.

What are special purpose books?

Q19.

Why Journal Proper is maintained.

Q20.

What is a Pass Book?

Q21.

Give the meaning of Overdraft.

Q22.

State any two features of Trial Balance.

III Section- III

Q1.

Give Journal entries to rectify the following :

(a)

Rs. 500 has been received from Naresh but Ram's A/c has been credited.

(b)

Rs. 200 for machine repairs has been debited to Machinery A/c

(c)

Goods worth 550 has been purchase from Mohan on credit but Ramlal's A/c

has been credited.

(d) Quick pass

Goods worth 200 has been sold to Quick Press which has not been entered

into account.

OR

What is Petty Cash Book? Explain the advantage of it.

Q2. Z Co. Ltd %

Z. Co. Ltd. purchased a machinery costing 2,00,000 as 1 April 2010. The rate

of depreciation to be charged was at 20% p.a. Write up the Machinery A/c for

5 years ending March 31, 2015 under Reducing Balance Method.

OR

Write the main features of Computerized Accounting system.

Q3.

On January 1, 2016 Mohan sold goods to Sohan for 2,500 and draw an him a

bill at 3 months for the amount. Sohan accepted and returned the bill to Mohan.

The bill was met on the due date. Give Journal entries in the book of both the

parties.

OR

What do you mean by Balance Sheet? Discuss its advantage.

Q4.

State Whether the following items of expenditure are of capital nature or

Revenue nature (with causes)

(i)

Overhauling expenures of 25,000 for the engine of a motor car to get better

fuel efficiency.

(ii)

Inauguration expenses of 25 Lakh incurred on the opening of a new

manufacturing unit in an existing business.

(iii)

Compensation of 25 Crore paid to workers, who opted for Voluntary

retirement.

OR

What is a Bank Reconciliation Statement? Why is it Prepared?