1. small details that affect the internal working of the business are given in the __________-and not in the financial statements of an entity.
(a) Directors Report
(b)Auditors report
(c) Management Report
(d) Notes to accounts
2.Raj ltd paid rent for the current year and the next three years and entire amount was debited to profit and loss Account. Which of the following concept is violated by Raj Ltd?
(a) Cost concept
(b) Matching concept
(c) Periodicity concept
(d) Realisation concept
3.A customers cheque returned dishonoured, is recorded in.
(a) Return inward book
(b)Bills receivable book
(c) Bank book
(d)Sales book
4.Goods destroyed by fire Rs 20000 aand insurance company admitted full claim. Claim receivable from insurance company will be shown in the
(a) Manufacturing a/c
(b)Trading a/c
(c) Profit & Loss a/c
(d) Balaance sheet
5.P shows a profit of Rs 700000 for the year ended 31.3.2011. The figure has been arrived at after charging following against revenue.
(i) Purchase of car on 28.3.2011 for use in business Rs 100000 treated as vehicle expeness.
(ii) Omitting to record unpaid electricity bills for feb and march 2011 of Rs 15000 per month
The correct profit for the year ended 31st March 2011 is
(a)Rs 630000
(b)Rs 700000
(c)Rs 770000
(d)Rs 830000
6.What is the profit when plant and machinery is sold for Rs 140000 whose cost is Rs 100000and WDV is Rs 400000?
(a) Revenue receipt is of Rs 100000
(b) Capital receipt is of Rs 100000
(c) Capital profit is Rs 40000 and Revenue profit is Rs 60000
(d) Capital receipt isRs 40000 and revenue receipt is of Rs 60000
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