Accounting Process [CA (Chartered Accountant) Foundation Principles of Accounting]: Questions 5 - 6 of 67
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Question 5
Question MCQ▾
ABC & Co. started business on 1st January 2014 with a capital of ₹ 240000.
During the month, the following transactions took place:
2nd Bought goods from XYZ on credit ₹ 60000
5th Sold goods to MNO ₹ 75000
5th Cash Purchases ₹ 75000
8th Cash Sales ₹ 45000
9th Goods returned to XYZ ₹ 6000
15th Bought Furniture ₹ 45000
16th Cash paid to XYZ ₹ 36000
16th Loan taken from Mr. K ₹ 90000
17th Goods Returned by MNO ₹ 9000
20th ABC takes stock for personal use ₹ 9000
21st Cash received from MNO ₹ 36000
25th Salary paid ₹ 15000
28th Purchase of Stationery ₹ 3000
29th Amount paid to Mr. K on loan Account ₹ 54000
30th Interest received ₹ 12000
From the above information prepare the cash and stock account of ABC & Co. and calculate balance
Choices
Choice (4) | Response | |
---|---|---|
a. | 6000 | |
b. | 4000 | |
c. | 9000 | |
d. | 12000 |
Question 6
Question MCQ▾
In what ways replacement of fixed assets are treated?
Choices
Choice (4) | Response | |
---|---|---|
a. | If the asset is replace with a superior kind of asset, then such expenditure will be treated as partly capital and partly revenue in nature | |
b. | The normal value of the asset is treated as revenue expenses | |
c. | If the asset is replaced with a similar kind of asset, then such expenditure will be treated as a revenue expenditure as no new acquisition is made | |
d. | All a., b. and c. are correct |