A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car??
A. 20,000 Loss
B. 20,000 Profit
C. 10,000 Loss
D. 10,000 Profit
Category: Accounting Mcqs
The normal balance of capital account is_____________??
A. Credit balance
B. Debit balance
C. Cash balance
D. Neither debit nor credit balance
Which of the following is not correct about Errors??
A. Errors which affect one account can be errors of posting
B. Errors of omission arise when any transaction is left to be recorded
C. Errors of carry forward from one year to another year affect both Personal and Real A/c
D. Errors of commission arise when any transaction is recorded in a fundamentally incorrect manner
Based on which of the following concepts, is Share Capital Account shown on the liabilities side of a Balance Sheet??
A. Business entity concept
B. Money measurement concept
C. Going concern concept
D. Matching concept
Which of the following are/is not a fixed asset??
A. Stock
B. Vehicle
C. Fixed deposit in bank
D. Both A. and
C. above
Which of the following is a liability??
A. Cash
B. Equipment
C. Debtors
D. Creditors
Which of the following are/is a current asset??
A. Sundry Debtors
B. Stock
C. Prepaid insurance
D. All of A.
B. and
C. above
The adjustment to be made for prepaid expenses is____________??
A. Add prepaid expenses to respective expenses and show it as an asset
B. Deduct prepaid expenses from respective expenses and show it as an asset
C. Add prepaid expenses to respective expenses and show it as a liability
D. Deduct prepaid expenses from respective expenses and show it as a liability
In a three column cash book_______________does not exist??
A. Cash column
B. Bank column
C. Petty cash column
D. Discount column
Petty cash balance is a/an___________??
A. Assets
B. Expenditure
C. Liability
D. None
