Accountancy Nios Plus Two PQ II Welcome to your Accountancy Nios Plus Two PQ II Total Questions: 157 Name Mobile No: 1. Balance of Provision for Doubtful Debts as on 1st April 2023 was ₹ 2,500. Bad debts during the year were ₹ 600. A provision for Doubtful Debts is to be credited @ 5% on debtors of ₹ 20,000. Provision for doubtful Debts credited to Profit and Loss Account will be : ₹ 1,200 ₹ 1,000 ₹ 900 ₹ 800 None Hint 2. Cash Balance ₹ 15,000, Trade Receivables ₹ 35,000, Inventory ₹ 40,000, Trade payables ₹ 24,000; Bank overdraft ₹ 6,000 Current Ratio will be : 3.75 : 1 1 : 3.75 3 : 1 1 : 3 None Hint 3. Differentiate between 'Public Company' and 'Private Company' on the basis of : Minimum number of members Public – 5; Private – 10 Public – 2; Private – 7 Public – 3; Private – 3 Public – 7; Private – 2 None Hint 4. Explain how re-issue of Forfeited shares at discount is recorded in the books of accounts. Bank A/c Dr. Forfeited Shares A/c Dr. To Share Capital A/c Bank A/c Dr. To Discount on Issue of Shares A/c Bank A/c Dr. To Share Capital A/c Share Capital A/c Dr. To Bank A/c None Hint 5. Which account will be debited on money withdrawn from bank for personal use? Capital Account Cash Account Bank Account Drawings Account None Hint 6. Fill in the blanks At the time of death of a partner, his/her executor is entitled to all the rights of a _______. Manager Partner Debtor Creditor None Hint 7. If at the time of retirement/death of a partner, goodwill already appears in the balance sheet, how will it be treated ? Also give the necessary Journal Entry. It is written off by debiting all partners’ capital accounts in old ratio. It is ignored and no adjustment is required. It is credited to Retiring Partner’s Capital Account only. It is transferred to General Reserve. None Hint 8. Complete the following sentences: Goodwill written off is shown in cash flow statement under which type of activity? None of these Financing Activity Investing Activity Operating Activity None Hint 9. Complete the Sentences In cash flow statement, the amount of interim dividend paid during the year is shown as: Operating Activity Extraordinary Item Financing Activity Investing Activity None Hint 10. What journal entry is to be made at the time of a dissolution of partnership firm when : Assets are taken over by the partners Asset A/c Dr. To Partner’s Capital A/c Realisation A/c Dr. To Partner’s Capital A/c Partner’s Capital A/c Dr. To Asset A/c No Entry None Hint 11. Complete the Sentences Buy back of equity shares is shown as cash outflow from which type of activity? Extraordinary Item Investing Activity Operating Activity Financing Activity None Hint 12. Which of the following is treated as an unrecorded asset ? Sale of old Furniture Goodwill appearing in the Balance Sheet Bad debts recovered, written off in previous year Sale of Investments None Hint 13. In Income & Expenditure A/c, 'Accrued Interest' is shown on — Income Side Payments Side Expenditure Side Receipts Side None Hint 14. That part of share capital which is uncalled and kept in reserve is called _ Share Capital Account Reserve Capital Account Securities Premium Reserve Account Capital Reserve Account None Hint 15. Write names of affected accounts while making Journal Entries of the following transactions: Salaries paid Wages A/c and Bank A/c Salaries A/c and Debtors A/c Capital A/c and Salaries A/c Salaries A/c and Cash A/c None Hint 16. In case of profit on re-issue of forfeited share, it is transferred to: Capital Reserve Account General Reserve Account Share Capital Account Securities Premium Reserve Account None Hint 17. Steps to copy a chart to Word (Choose the correct option): Copy Excel file → Paste into Word header Delete chart → Open Word → Paste Select chart → Copy → Open Word → Paste Use Snipping Tool → Paste image in Word None Hint 18. Pass necessary Journal Entries: When an unrecorded liability is discharged by a partner on behalf of the firm, the Journal Entry is: Liability A/c Dr. To Partner’s Capital A/c Realisation A/c Dr. To Partner’s Capital A/c Realisation A/c Dr. To Liability A/c Partner’s Capital A/c Dr. To Realisation A/c None Hint 19. When proprietor draws goods from the business for personal use, it is known as — Expense Drawings Purchase Sales None Hint 20. Which of the following is not an error of principle ? Sale of an old car credited sales Account. Repairs on the overhauling of second hand machinery purchased is not recorded in the books of accounts. Purchase Book is totalled ₹ 20,000 instead of ₹ 15,500. Typewriter purchased for office use has been debited to Purchases Accounts. None Hint 21. Angel Ltd., a stock broker, purchase 5,000 shares of Tata Housing Ltd., it is a : Financing Activity General Activity Investing Activity Operating Activity None Hint 22. What journal entry is to be made at the time of a dissolution of partnership firm when : Payment of liabilities by the partners Liability A/c Dr. To Partner’s Capital A/c Liability A/c Dr. To Bank A/c Realisation A/c Dr. To Bank A/c Partner’s Capital A/c Dr. To Liability A/c None Hint 23. 'Dividend received' by other than financial enterprise is shown in cash flow statement under: Investing Activities Financing Activities Operating Activities General Activities None Hint 24. Using Charts/Graph tools in Excel – explain how to modify a chart: To move the chart Use chart filter Delete chart Paste into Word Click and drag to new location None Hint 25. Give a name of the accounting error for the following transactions : Wages paid for the construction of office debited to wages account. Error of Commission Error of Principle Compensating Error Error of Omission None Hint 26. In Excel software Pie chart cannot plot more than: Seven Categories Four Categories Eight Categories Ten Categories Seven Categories None Hint 27. The mostly used input devices are keyboard, ______ and ______ Speaker and Joystick Scanner and Mouse Monitor and Printer CPU and Monitor None Hint 28. Write names of affected accounts while making Journal Entries of the following transactions : Depreciation charged on furniture Expense A/c & Asset A/c Furniture A/c & Depreciation A/c Cash A/c & Furniture A/c Depreciation A/c & Furniture A/c None Hint 29. Which facility is offered to store and process transaction data in computerised accounting system to retrieve information to generate and view financial reports? Data Entry MIS (Management Information System) Ledger Posting Reporting None Hint 30. Complete the following Sentences: In cash flow statement, the amount of interim dividend paid during the year is shown as: Operating Activity Non-cash Activity Financing Activity Investing Activity None Hint 31. Gurman's A/c short credited and Manisha's A/c over credited — Error of Commission Compensating Error Error of Omission Error of Principle None Hint 32. Pass necessary Journal Entry when: An unrecorded liability has been discharged by the firm. No Entry Cash A/c Dr. To Liability A/c Liability A/c Dr. To Cash A/c Liability A/c Dr. To Capital A/c None Hint 33. Which of the following sub-unit of central processing unit stores data before being actually processed ? Output Unit Memory Unit Control Unit Logic Unit None Hint 34. Give one word answer for the following: Depreciation reduces the value of Capital Revenue Liability Asset None Hint 35. A firm earns profit of ₹ 1,30,000 on a capital of ₹ 10,00,000 and normal rate of return in similar business is 10%, super profit will be : ₹ 1,00,000 ₹ 1,13,000 ₹ 1,30,000 ₹ 30,000 None Hint 36. Give the meaning of Sacrificing Ratio. How it is calculated ? The ratio of capital contributed by partners. The ratio in which new partner sacrifices his share in favour of existing partners. The ratio in which old partners gain from the retirement of a partner. The ratio in which existing partners agree to sacrifice their share of profit in favour of a new partner. None Hint 37. Explain how re-issue of Forfeited shares at discount is recorded in the books of accounts. Discount allowed on re-issue is credited to Capital Reserve Account Discount allowed is not permitted on re-issue Discount allowed on re-issue is debited to Share Capital Account Discount allowed on re-issue is debited to Forfeited Shares Account None Hint 38. Give one word answer for the following: Transactions, when recorded in Journal, are known as Entries Posting Notes Narration None Hint 39. The Net salary payable to an employee is obtained by deducting ______ from ______. Tax from Net Salary Deductions from Gross Salary Bonus from Net Salary Allowances from Basic Pay None Hint 40. Using Charts/Graph tools in Excel – explain how to modify a chart: To reverse the data which are displayed in the rows and columns Use "Switch Row/Column" option under Chart Design Rotate chart manually Insert pivot chart Use copy-paste None Hint 41. Give one word answer to the following: Which account will be debited on money withdrawn from Bank for personal use? Drawings Account Cash Account Capital Account Bank Account None Hint 42. Share capital A/c credited by? (Share of ₹10, premium ₹2, ₹7 received) ₹10 ₹7 ₹9 ₹8 None Hint 43. Angel Ltd., a stock broker, purchases 5,000 shares of Tata Housing Ltd., it is a: Financing Activity Investing Activity General Activity Operating Activity None Hint 44. Write names of affected accounts while making Journal Entries of the following transactions : Salaries paid Salary A/c & Capital A/c Salary A/c & Cash A/c Cash A/c & Salary A/c Expense A/c & Drawings A/c None Hint 45. Give any three reasons of preparing 'Receipts and Payments Accounts' by Not-for-Profit organisations. To show summary of all cash and bank transactions during the year. To record only capital receipts and capital payments. To calculate net profit or loss of the organisation. To assess depreciation of assets. None Hint 46. Complete the following sentences: Buy back of equity shares is shown as cash outflow from which type of activity? Financing Activity Investing Activity Operating Activity Non-Cash Activity None Hint 47. Net Purchases = Cash Purchases + Credit Purchases – ? Capital Expenses Sales Purchases Return None Hint 48. Give one word answer of the following : A share of ₹ 10 issued at a premium of ₹ 2 on which the full amount is called up and ₹10 ₹8 ₹2 ₹7 None Hint 49. Write names of affected accounts while making Journal Entries of the following transactions: Goods sold for cash Cash A/c and Capital A/c Cash A/c and Purchases A/c Sales A/c and Cash A/c Sales A/c and Purchases A/c None Hint 50. As per Rules of Accounting, Increase in Asset is _______ and decrease in Asset is _______ Credited; Credited Debited; Credited Credited; Debited Debited; Debited None Hint 51. Sale of Machinery on credit is recorded in : Bank Pass-Book Journal Proper Sales Book Cash Book None Hint 52. Give a name of the accounting error for the following transactions : Purchase of Furniture is entered in Purchase Book Error of Omission Clerical Error Error of Principle Error of Commission None Hint 53. State the earning elements used in Pay Roll calculations. Also state how these are calculated ? TDS, PF, ESI, Bonus – all deducted from Net Salary Basic Pay, Loan, Rent – all added for Gross Salary Basic Pay, HRA, DA, Bonus – all added to calculate Gross Salary Commission, PF, Gratuity – added to Net Pay None Hint 54. One purpose of using Securities Premium Reserve? Declare dividend Write off preliminary expenses Pay director salary Buy back goods None Hint 55. What is meant by 'Unearned Income'? Give accounting treatment and Adjustment entry of unearned income. Unearned income is recorded only in the balance sheet and does not need adjustment. Unearned income is profit from sale of fixed assets. Adjustment Entry: Asset A/c Dr. To Profit A/c Unearned income refers to income not yet received but already earned. Adjustment Entry: Income A/c Dr. To Unearned Income A/c Unearned income refers to income already received and recorded but not yet earned. Adjustment Entry: Unearned Income A/c Dr. To Income A/c None Hint 56. Once the data type is specified, MS Access allows designer to define properties of each column. In the context of text data type, one of the general properties relate to ‘Caption’ which means: how the field's contents are displayed specifying a value for new entries of data records single, double or decimal type of numbers a label used for the field in datasheet and on forms and reports None Hint 57. Give one word answer to the following: Which facility is offered to store and process transaction data in computerised accounting system to retrieve information to generate and view financial reports? Spreadsheet Tally Accounting Software Database Management System None Hint 58. In MS Access, the 'Caption' property for text data type means: specifying a value for new entries of data records single, double or decimal type of numbers how the field's contents are displayed a label used for the field in data sheet and on forms and reports None Hint 59. Calculate the gross profit ratio from the following data : Sales ₹ 3,25,000; Sales returns ₹ 25,000 and Cost of revenue from operations ₹ 2,40,000. 15% 20% 25% 18% None Hint 60. Explain the Accounting treatment of settlement of Partner's Capital Accounts at the time of dissolution of a partnership firm : When Partner's Capital Account shows a credit balance. Adjusted through Reserve A/c Firm pays the amount to the partner Shown as expense Partner pays the firm None Hint 61. Fill in the blanks At the time of dissolution of partnership firm, balance of general reserve is transferred to _______. Partner’s Capital Accounts Reserve Fund Account Revaluation Account Realisation Account None Hint 62. What is meant by Cash Flow Statement? State two objectives. A statement showing total revenue and taxes Shows fund flow from capital structure only Shows only cash inflow from operating activities and net worth A statement showing inflows/outflows of cash and cash equivalents None Hint 63. Complete the sentence The mostly used input devices are keyboard, ______ and ______ monitor, printer mouse, monitor printer, speake mouse, scanner None Hint 64. What is meant by cash flow statement ? State two objectives of preparing cash flow statement. It is a statement that shows cash inflows and outflows during a specific period, and helps assess liquidity and cash management. It is used only for taxation purposes. It shows only the profits and losses of a business. It is a statement used to record non-cash transactions. None Hint 65. Explain how issue of shares for consideration other than cash is recorded in the books of accounts. Purchase A/c Dr. To Share Capital A/c Vendor A/c Dr. To Share Capital A/c Fixed Asset A/c Dr. To Cash A/c Asset A/c Dr. To Share Capital A/c None Hint 66. Ideal Current Ratio is: 1:2 1:1 2:1 1:3 None Hint 67. 'Life-Membership-fee' received by Not-For-Profit Organisation is shown as : Income in 'Income and Expenditure Account' Capital receipt and added in the capital fund of Balance sheet Payment in 'Receipts and Payments Account' Expenditure in 'Income and Expenditure Account' None Hint 68. Accrued Interest is shown on which side of Income & Expenditure A/c? Liability side Credit side Asset side Debit side None Hint 69. Which of the following are limitations of a cash flow statement? Historical in nature and not predictive All of the above Cannot reflect profitability accurately Ignores non-cash transactions None Hint 70. Using Charts/Graph tools in Excel – explain how to modify a chart: To change the data included in the chart Use “Select Data” option under Chart Design Change workbook theme Resize columns Delete cells None Hint 71. Data Base management system overcomes the limitation such as : Data isolation Data redundancy and inconsistency All of the above Data duplicity None Hint 72. Cash Balance ₹15,000, Trade Receivables ₹35,000, Inventory ₹40,000, Trade Payables ₹24,000, Bank Overdraft ₹6,000; Current Ratio will be: 1 : 3.75 3.75 : 1 3 : 1 1 : 3 None Hint 73. Explain how issue of shares for consideration other than cash is recorded in the books of accounts. Cash A/c Dr. To Share Capital A/c Share Capital A/c Dr. To Asset A/c Vendor A/c Dr. To Asset A/c Asset A/c Dr. To Share Capital A/c To Securities Premium A/c (if any) None Hint 74. Calculate the gross profit ratio from the following data : Sales ₹ 3,25,000; Sales returns ₹ 25,000 and Cost of revenue from operations ₹ 2,40,000. 30% 18% 20% 25% None Hint 75. What is meant by 'Unearned Income'? Give accounting treatment and Adjustment entry of unearned income. Show as capital reserve Shown under drawings Treat as accrued income Deduct from income and shown as liability None Hint 76. Write names of affected accounts while making Journal Entries of the following transactions : Goods sold for cash Purchases A/c & Cash A/c Cash A/c & Capital A/c Sales A/c & Cash A/c Capital A/c & Sales A/c None Hint 77. Differentiate between 'Public Company' and 'Private Company' on the basis of : Maximum number of members Public – 500; Private – 100 Public – 100; Private – 50 Public – 200; Private – Unlimited Public – Unlimited; Private – 200 None Hint 78. At the time of retirement of a partner, Loss on revaluation will be debited to the partners' Capital Account in which Ratio? Sacrificing Ratio Equal Ratio Old Profit Sharing Ratio Gaining Ratio None Hint 79. Calling cells by just their columns and row labels is called Relative referencing Absolute referencing Both (A) and (B) Mixed referencing None Hint 80. Calling cells by just their columns and row labels is called: Relative referencing Absolute referencing Both (A) and (B) Mixed referencing None Hint 81. Give a name of the accounting error for the following transactions : Goods sold for ₹4,200 to Hari Om on credit were omitted from accounts although cash received Error of Principle Compensating Error Error of Commission Error of Omission None Hint 82. Give a name of the accounting error for the following transactions : Goods sold on credit to Hari Om omitted from books — Error of Commission Compensating Error Error of Omission Error of Principle None Hint 83. Give the meaning of : Paid-up Capital means: Portion of called-up capital actually paid Total face value of shares issued Future capital to be paid Amount demanded but not paid None Hint 84. Liabilities of a firm are ₹ 8,000 and total Assets are ₹ 20,000. What is the capital of the proprietor ? ₹ 12,000 ₹ 20,000 ₹ 8,000 ₹ 28,000 None Hint 85. What is meant by cash flow statement ? State two objectives of preparing cash flow statement. A report showing cash inflows/outflows during a period; Helps in assessing liquidity and cash generation A summary of bank balance; Used to track profitability A summary of all accounting records; Helps calculate depreciation and tax A financial report showing cash inflows and outflows; Helps in budgeting and tax filing None Hint 86. Which of the following Component of MS Access is used to create various reports as per the requirement of the end user? Queries Table Object Forms Object Report Object None Hint 87. Ideal Current Ratio is: 1:3 2:1 1:2 1:1 None Hint 88. That part of share capital which is uncalled and kept in reserve is known as? Authorised Capital Issued Capital Called-up Capital Reserve Capital None Hint 89. Debt equity ratio indicates risky financial position from the long term point of view if it exceeds: 1:1 2:1 1:2 3:1 None Hint 90. "Cash from operating activities" will decrease due to: Both (A) and (B) above Increase in Current Assets Decrease in Current Liabilities Increase in Current Liabilities None Hint 91. Pass necessary Journal Entry when : An unrecorded liability has been discharged by the firm. Realisation A/c Dr. To Cash/Bank A/c Liability A/c Dr. To Realisation A/c Realisation A/c Dr. To Liability A/c Cash/Bank A/c Dr. To Realisation A/c None Hint 92. After the preparation of realisation account, gain or loss on realisation is transferred to Profit and Loss Account Partner’s Capital Account Loan Account Revaluation Account None Hint 93. Ideal Current Ratio is : 1 : 1 1 : 3 2 : 1 1 : 2 None Hint 94. When proprietor draws goods from the business for his/her personal use, it is known as? Expense Liability Drawings Capital None Hint 95. State any three features of 'Single Entry - System'. It is a scientific method of accounting. It records only credit transactions systematically. It is incomplete and unscientific method of accounting. It maintains double entry for all transactions. None Hint 96. Give a name of the accounting error for the following transactions : Wages paid for construction of office building debited to wages account — Error of Commission Error of Omission Error of Principle Compensating Error None Hint 97. Transactions, when recorded in Journal, are known as: Entries Postings Accounts Vouchers None Hint 98. After the preparation of realisation account, gain or loss on realisation is transferred to: Revaluation Account Partners’ Capital Accounts Partners' Drawing Account Cash Account None Hint 99. What journal entry is to be made at the time of a dissolution of partnership firm when : For transfer of assets to Realisation Account Realisation A/c Dr. To Partner’s Capital A/c Assets A/c Dr. To Realisation A/c Realisation A/c Dr. To Assets A/c Bank A/c Dr. To Realisation A/c None Hint 100. Debt equity ratio indicates risky financial position from the long term print of view if it exceeds : 2 : 1 1 : 2 1 : 1 3 : 1 None Hint 101. Which account shows Surplus or Deficit in Not-For-Profit Organisation — Income and Expenditure Account Receipts and Payments Account Capital Fund Account General Fund None Hint 102. Fill in the blanks: At the time of death of a partner, his/her executor is entitled to all the rights of a _______ to _______. shareholder; dividends partner; liabilities creditor; receive dues creditor; the firm None Hint 103. Gurman’s A/c short credited by ₹1,000; Manisha’s A/c excess credited by ₹1,000 Error of Principle Error of Commission Compensating Error Error of Omission None Hint 104. Write the steps involved to copy a chart to Word. Select chart → Copy (Ctrl + C) → Open Word → Paste (Ctrl + V) Select chart → Press Delete → Open Word → Paste Insert new chart in Word manually Screenshot chart → Paste in Word None Hint 105. Which element of a chart provides the additional information about a data marker to identify the details of data point in a data series? The legend The Data points The plot area The Data Labels None Hint 106. When a company decides to raise capital by issuing shares, at that time give the meaning of : Under Subscription refers to: All shares are allotted Oversold shares Shares applied are less than issued Shares applied are more than issued None Hint 107. If a share of ₹ 10 on which ₹ 8 called up and ₹ 5 paid up has been forfeited the share capital. Account will be debited by :* ₹ 8 ₹ 5 ₹ 6 ₹ 10 None Hint 108. Fill in the blanks: At the time of dissolution of partnership firm, balance of general reserve is transferred to _______. Partner’s Loan Account Partner’s Capital Accounts Realisation Account Revaluation Account None Hint 109. In case of profit on re-issue of forfeited share is, it is transferred to : Capital Reserve Account Share Capital Account Securities Premium Reserve Account General Reserve Account None Hint 110. Complete the following sentences: In cash flow statement, the amount of interim dividend paid during the year is shown as: Non-Cash Activity Investing Activity Operating Activity Financing Activity None Hint 111. Explain the Accounting treatment of settlement of Partner's Capital Accounts at the time of dissolution of a partnership firm : When Partner's Capital Account shows a debit balance. The firm pays the amount to the partner Transferred to Profit and Loss A/c Shown in the balance sheet The partner pays the amount to the firm None Hint 112. When a company decides to raise capital by issuing shares, at that time give the meaning of : Full Subscription refers to: Shares applied exactly equal to shares issued Shares issued more than required Government subscription Partial share application None Hint 113. In Excel software Pie chart cannot plot more than: Four Categories Eight Categories Ten Categories Seven Categories None Hint 114. Write names of affected accounts while making Journal Entries of the following transactions: Depreciation charged on furniture Furniture A/c and Profit & Loss A/c Depreciation A/c and Furniture A/c Furniture A/c and Cash A/c Depreciation A/c and Capital A/c None Hint 115. Give the meaning of : Reserve Capital refers to: Portion of subscribed capital not to be called up except in winding up Authorized capital Capital used for bonus shares Capital kept in a separate bank None Hint 116. Write names of affected accounts while making Journal Entries of the following transactions: Goods purchased on credit Purchases A/c and Creditor’s A/c Purchases A/c and Debtor's A/c Capital A/c and Purchases A/c Cash A/c and Purchases A/c None Hint 117. Which of the following Component of MS Access is used to create various reports as per the requirement of the end user? Report Object Forms Object Queries Table Object None Hint 118. Which of the following is a limitation of a Cash Flow Statement? It records only cash transactions, ignoring non-cash items It is useful for assessing cash generation ability It shows liquidity position of the business It helps in short-term financial planning None Hint 119. Which of the following Component of MS Access is used to create various reports as per the requirement of the end user ? Forms Object Report Object Queries Table Object None Hint 120. Which element of a chart provides the additional information about a data marker to identify the details of data point in a data series ? The plot area The legend The Data Labels The Data points None Hint 121. When shares are issued to promoters of the company as remuneration for their services, which account is debited? Promoters' Capital Account Goodwill Account Share Capital Account Preliminary Expenses Account None Hint 122. Data Base management system overcomes the limitation such as : Data duplicity Data isolation Data redundancy and inconsistency All of the above None Hint 123. When shares are issued to promoters for their services, which account is debited? Capital Reserve A/c Goodwill A/c Share Capital A/c Cash A/c None Hint 124. Once the data types are specified, MS Access allows the designer to define properties of each column. In the context of text data type, one of the general properties related to 'Caption' means: Specifying a value for new entries of data records Single, double or decimal type of numbers How the field's contents are displayed A label used for the field in datasheet and on forms and reports None Hint 125. Explain formatting the chart using the design option. Modify chart layout, style, switch row/column, add chart elements Add text box Insert video into chart Change background color only None Hint 126. Which element of a chart provides additional information about a data marker? The Data points The legend The Data Labels The plot area None Hint 127. Complete the following sentences: In cash flow statement, under which head “Purchase of fixed assets during the year” is shown? Operating Activity Investing Activity Financing Activity Exceptional Activity None Hint 128. Depreciation reduces the value of: Liabilities Expenses Assets Income None Hint 129. Using Charts/Graph tools in Excel – explain how to modify a chart: To modify the labels and titles Insert shapes Change font from Home tab Use “Chart Elements” (+ icon) and select Titles/Labels Format axis only None Hint 130. State any three limitations of cash flow statement. It reflects profitability accurately. t ignores non-cash transactions, does not assess true profitability, and may be misinterpreted. It is a complete replacement of the income statement. It records all types of transactions including non-cash ones. None Hint 131. As per Rules of Accounting, Increase in Asset is ______ and decrease in Asset is ______ Credit, Credit Debit, Credit Debit, Debit Credit, Debit None Hint 132. Differentiate between 'Public Company' and 'Private Company' on the basis of : Name Public – Ltd.; Private – Pvt. Ltd. Public – Corporation; Private – Firm Public – Pvt. Ltd.; Private – Ltd. Public – Inc.; Private – LLP None Hint 133. Pass necessary Journal Entry when: An unrecorded liability is discharged by a partner on behalf of the firm No Entry Liability A/c Dr. To Cash A/c Partner’s Capital A/c Dr. To Liability A/c Liability A/c Dr. To Partner’s Capital A/c None Hint 134. If goodwill already appears in the books at the time of a partner's retirement or death, how is it treated? It is distributed in the new ratio It is transferred to the retiring partner only It is written off among all partners in the old ratio It is ignored in books of accounts None Hint 135. Calling cells by just their columns and row labels is called: Absolute referencing Relative referencing Both (A) and (B) Mixed referencing None Hint 136. Buy back of equity shares is shown as cash outflow from which type of activity? Buy back of equity shares is shown as cash outflow from which type of activity? Operating Activity Trading Activity Investing Activity Financing Activity None Hint 137. Give a name of the accounting error for the following transactions : Purchase of Furniture entered in Purchase Book — Error of Principle Error of Totalling Error of Commission Error of Posting None Hint 138. Angel Ltd., a stock broker, purchases 5,000 shares of Tata Housing Ltd., it is a: Operating Activity Investing Activity Financing Activity General Activity None Hint 139. Calculate the gross profit ratio from the following data: Sales ₹ 3,25,000; Sales returns ₹ 25,000 and Cost of revenue from operations ₹ 2,40,000. 25% 20% 30% 40% None Hint 140. ‘Dividend received by other than financial enterprise is shown in cash flow statement under : General Activities Investing Activities Financing Activities Operating Activities None Hint 141. Give the meaning of : Called-up Capital means: Capital actually received Capital that is authorized to be issued Capital shown in books only Capital demanded from shareholders None Hint 142. Which account shows Surplus or Deficit in case of Not-For-Profit Organisation? Income and Expenditure Account Profit and Loss Account Capital Account Receipts and Payments Account None Hint 143. When a company decides to raise capital by issuing shares, at that time give the meaning of : Over Subscription refers to: No shares are issued Shares issued are less than applied Subscription by foreign investors Applications received are more than number of shares issued None Hint 144. Give necessary Journal Entry for treatment of goodwill on retirement of a partner stating the ratio in which goodwill is to be distributed. Goodwill A/c Dr. To All Partners’ Capital A/cs Gaining Partners’ Capital A/cs Dr. To Retiring Partner’s Capital A/c Gaining Partners’ Capital A/cs Dr. To Goodwill A/c Retiring Partner’s Capital A/c Dr. To Goodwill A/c None Hint 145. When realisation expenses are paid by a partner on behalf of the firm, which of the following account is credited ? Realisation Account Expense Account Cash Account Partner's Capital Account None Hint 146. Give the meaning of Sacrificing Ratio. How is it calculated ? The ratio in which new profit is shared by partners The ratio in which old partners sacrifice a part of their share in favour of a new partner The ratio of capital invested by the partners The ratio in which profits are distributed among all partners None Hint 147. Cash from operating activities” will decrease due to : None of these Both (A) and (B) above Decrease in Current Liabilities Increase in Current Assets None Hint 148. State any one purpose for which securities premium reserve amount can be utilized. Buy back preference shares Write off preliminary expenses Pay salaries to employees Distribute among shareholders as dividend None Hint 149. The Net salary payable to an employee is obtained by deducting ______ from ______. Deductions from Gross Salary Gross Salary from Net Salary Allowances from Gross Salary Gross Salary from Deductions None Hint 150. Net Purchases = Cash Purchases + Credit Purchases – _______ Purchase Returns Goods Lost by Fire Sales Wages None Hint 151. In Excel software Pie chart cannot plot more than : Eight Categories Four Categories Ten Categories Seven Categories None Hint 152. Gain of a partner is : Existing (Old) Ratio - New Ratio New Ratio - Existing (Old) Ratio Sacrificing Ratio - New Ratio New Ratio - Sacrificing Ratio None Hint 153. Which of the following account is prepared by a Not-For-Profit Organisation ? Income and Expenditure Account Trading Account Total Creditors Account Profit and Loss Account None Hint 154. State the earning elements used in Pay Roll calculations. Also state how these are calculated. Basic Pay + HRA + Allowances – Deductions Gross Salary – Net Salary Only Basic Pay Basic Pay – Income Tax Only None Hint 155. If a share of ₹ 10 each on which ₹ 9 called up (including premium of ₹ 2) and ₹ 7 paid up (including premium of ₹ 1) is forfeited Securities Premium Reserve Account will be debited by :* Zero ₹ 3 ₹ 1 ₹ 2 None Hint 156. At the time of retirement of a partner, Loss on revaluation will be debited to the partners' Drawing Account Revaluation Account Loan Account Capital Account None Hint 157. Write names of affected accounts while making Journal Entries of the following transactions : Goods purchased on credit Purchases A/c & Creditors A/c Sales A/c & Debtors A/c Capital A/c & Purchases A/c Cash A/c & Sales A/c None Hint Time's up Share: admin Previous post Accountancy Nios Plus Two PQ I June 30, 2025 Next post History Nios Plus Two PQ VIII July 1, 2025
