Q No 1  Which of the following statement is not true:
(a) If del-creder’s commission is allowed, bad debt will not be recorded in the books
of consignor
(b) If del-creder’s commission is allowed, bad debt will be debited in consignment
account
(c) Del-creder’s commission is allowed by consignor to consignee
(d) Del-creder’s commission is generally relevant for creditIf Cost of goods sold is Rs.80,700,

2) Opening stock Rs.5,800 and Closing stock
Rs.6,000. Then the amount of purchase will be
(a) Rs.80,500
(b) Rs.74,900
(c) Rs.74,700
(d) Rs.80,900. sales

3). A new firm commenced business on 1st January, 2006 and purchased goods costing
Rs. 90,000 during the year. A sum of Rs. 6,000 was spent on freight inwards. At the
end of the year the cost of goods still unsold was Rs. 12,000. Sales during the year Rs.
1,20,000. What is the gross profit earned by the firm?
(a) Rs. 36,000
(b) Rs. 30,000
(c) Rs. 42,000
(d) Rs. 38,000

4). X of Kolkata sends out goods costing 300,000 to Y of Mumbai at cost + 25%.
Consignor’s expenses Rs 5000. 1/10th of the goods were lost in transit. Insurance claim
received Rs 3000. The net loss on account of abnormal loss is
(a) Rs.27,500
(b) Rs.25,500
(c) Rs.30.500
(d) Rs.27,000

5). A and V enter into a joint venture to sell a consignment of biscuits sharing profits and
losses equally. A provides biscuits from stock Rs 10000. He pays expenses amounting
to Rs 1000. V incurs further expenses on carriage Rs 1000. He receives cash for sales
Rs 15000. He also takes over goods to the value of Rs 2000. The profit on joint venture
is
(a) Rs.3000
(b) Rs.5000
(c) Rs.6000
(d) Rs.3500

6). X sent out certain goods to Y of Delhi. 1/10 of the goods were lost in transit. Invoice
value of goods lost Rs 12,500. Invoice value of goods sent out on consignment will be:
(a) Rs.120,000
(b) Rs.125,000
(c) Rs.140,000
(d) Rs.100,000

7). A and B enter into a joint venture for purchase and sale of Type-writer. A purchased
Typewriter costing Rs 100000. Repairing expenses Rs 10000, printing expenses Rs
10000. B sold it at 20% margin on selling price. The sales value will be:
(a) Rs. 125000
(b) Rs. 150000
(c) Rs. 100000
(d) Rs. 140000

8). P of Faridabad sent out goods costing Rs. 45,000 to Y of Delhi at cost + 331/3 %. 1/10th
of goods were lost in transit. 2/3rd of the goods are sold at 20% above IP. The amount
of sale value will be:
(a) Rs.54,000
(b) Rs.43,200
(c) Rs.60,000
(d) Rs.36,000

9). Consignment account is
(a) Real account
(b) Personal account
(c) Nominal account
(d) None of the above

10). A proforma invoice is sent by ________
(a) Consignee to Consignor
(b) Consignor to Consignee
(c) Debtors to Consignee
(d) Debtors to Consignor

11) If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with
same sets of books maintained, the discounting charges will be borne by________
(a) The drawer of the bill
(b) The drawee of the bill
(c) The discounting charges will be recorded in memorandum account
(d) The discounting charges will be borne by bank

12) X sent out certain goods to Y of Delhi. 1/10 of the goods were lost in transit. Invoice
value of goods lost Rs 12,500. Invoice value of goods sent out on consignment will be:
(a) Rs.120,000
(b) Rs.125,000
(c) Rs.140,000
(d) Rs.100,000

13) A and B enter into a joint venture sharing profit and losses in the ratio 2:1. A purchased
goods costing Rs 2,00,000. B sold the goods for Rs 2,50,000. A is entitled to get 1%
commission on purchase and B is entitled to get 5% commission on sales. The profit on
venture will be:
(a) Rs. 35,500
(b) Rs. 36,000
(c) Rs. 34,000
(d) Rs.38,000

14) Goods costing Rs 2,00,000 sent out to consignee at Cost + 25%. Invoice value of the
goods will be
(a) Rs.250,000
(b) Rs.2,40,000
(c) Rs.300,000
(d) None of the above.

15) X of Kolkata sends out certain goods at cost + 25%. Invoice value of goods sends out
Rs 200,000. 4/5th of the goods were sold by consignee at Rs.1,76,000. Commission 2%
upto invoice value and 10% of any surplus above invoice value.
The amount of commission will be:
(a) Rs.4800
(b) Rs.5200
(c) Rs.3200
(d) Rs.1600

16) A purchased goods costing 42500. B sold goods costing Rs 40000 at Rs 50000.
Balance goods were taken over by A at same gross profit percentage as in case of
sale. The amount of goods taken over will be:
(a) Rs. 3125
(b) Rs. 2500
(c) Rs. 3000
(d) None of the above

17) A and B entered into a joint venture agreement to share the profits and losses in the
ratio of 2:1. A supplied 100 ratio sets worth Rs.1,00,000 to B incurring expenses of
Rs.5,000 for freight and issuance. B sold the 95 ratio sets for Rs.1,20,000. 5 radio
sets were taken over by B. The profit/loss on venture will be
(a) Profit of Rs.20,000.
(b) Profit of Rs.15,000.
(c) Loss of Rs.20,000.
(d) Profit of Rs.20,250.

18. A purchased a computer costing Rs.10,000. Repairing expenses Rs.1,000 and
miscellaneous expenses Rs.500 were incurred by him. He sold the computer at 20%
margin on selling price. The sales value will be
(a) Rs.12,500.
(b) Rs.11,000
(c) Rs.14,375
(d) Rs.13,800

19. Drawings account is in the nature of
(a) Personal account
(b) Real account
(c) Nominal account
(d) None of the above

20) Memorandum Joint venture account is a ________
(a) Personal account.
(b) Real account.
(c) Nominal account.
(d) None of the above.

21) Commission provided by the consignor to the consignee to promote credit sale is
known as _____________
(a) Ordinary commission
(b) Del-credere commission
(c) Over riding commission
(d) Special commission

22. _________ is unavoidable and should be spread over the entire consignment while
valuing consignment stock.
(a) Abnormal loss
b) Normal loss
(c) Extra-ordinary loss
(d) None of the three

23. Generally, when the size of the venture is ________, the co-venturers keep separate
set of books of account for the joint venture.
(a) Small
(b) Medium
(c) Big
(d) All of the above

24. Sujal consigned goods costing Rs. 2,50,000 to Mridul on 1st January 2006 by incurring
Rs. 20,000 on freight. Some goods were lost in transit. For remaining goods Mridul
spend Rs. 15,000 to take the delivery including storage charges. During the quarter,
Mridul sold 3/4 of the goods received by him for Rs. 3,00,000 and charged commission
@10% on it to Sujal. At the end of the quarter, Sujal asked the details of goods lost,
sold, expenses commission and balance due to him alongwith the consignment stock
from Mridul. As desired, Mridul sent the periodical detail statement commonly known as
(a) Account statement
(b) Account sales
(c) Statement of affairs
(d) Summary statement.

25. X of Kolkata sent out 2000 boxes costing 100 each with the instruction that sales are to
be made at cost + 45%. X draws a bill on Y for an amount equivalent to 60% of sales
value. The amount of bill will be
(a) Rs.1,74,000
(b) Rs.2,00,000
(c) Rs.2,90,000
(d) Rs.1,20,000

27. A consignee sold goods costing Rs. 50,000 at a profit of Rs. 10,000. Out of total sale
30% was credit sale. As per the agreement the consignee will get 5% ordinary
commission, 2% del-credere commission on credit sale and 3% over-riding commission
on amount in excess of cost price. The amount of commission will be
(a) Rs. 3,540
(b) Rs.3,840
(c) Rs.4,500
(d) Rs.3,000

28. In a Joint venture between A and B, A spend Rs.2,000 on freight, Rs.1,000 as godown
rent, and also raised a loan from bank of Rs.50,000 at 18% p.a. repayable after 1
month. B spend Rs. 5,000 as selling expenses and he also raised a loan from bank of
Rs.1,50,000 at 18% repayable after 2 months. The total expenses of Joint venture will
be
(a) Rs. 8,000
(b) Rs.8,250
(c) Rs. 5,250
(d) Rs.13,250

29. Fena sent out certain goods to Kena of Delhi. 1/10 of the goods were lost in transit.
Invoice value of goods lost Rs 25,000. Invoice value of goods sent out on consignment
will be:
(a) Rs.2,50,000
(b) Rs.25,000
(c) Rs.2,500
(d) Rs.1,25,000

30. Deepak consigned 100 sets of TVs to Sudeep @ Rs.10,000 each. 5 TVs were
damaged in transit due to unavoidable reason whose price was adjusted in the
remaining TVs. The new price of each TV will be
(a) Rs.10,000.
(b) Rs. 10,200
(c) Rs. 15,000.
(d) Rs.10,526

31. A and B enter into a joint venture for purchase and sale of Type-writer. A purchased
Typewriter costing Rs 1,00,000. Repairing expenses Rs 10,000, printing expenses Rs
10,000. B sold it at 20% margin on selling price. The sales value will be:
(a) Rs. 1,25,000
(b) Rs. 1,50,000
(c) Rs. 1,00,000
(d) Rs. 1,40,000

32. The total cost of goods available for sale with a company during the current year is
Rs.12,00,000 and the total sales during the period are Rs.13,00,000. If the gross profit
margin of the company is 33 1/3% on cost, the closing inventory during the current year
is
(a) Rs.4,00,000
(b) Rs.3,00,000
(c) Rs.2,25,000
(d) Rs.2,60,000.

33. A bad debt recovered during the year is a
(a) Capital expenditures
(b) Revenue expenditures
(c) Capital receipt
(d) Revenue receipt

34. Proforma invoice is a statement of information in the firm of invoice prepared by the
__________to appraise the __________ about certain essential particulars of the
goods.
(a) Consignee, Consignor.
(b) Buyer/Seller.
(c ) Consignor, consignee.
(d) None of the three.

35. Mr. Yatharth consigned to Mr. Ramesh 100 cases of tea costing Rs.100 per case. He
paid Rs.1,000/- as freight and cartage. Mr. Ramesh could take delivery of only 90
cases since 10 cases were loss in transit. The amount of abnormal loss will be
(a) Rs.1,000/-.
(b) Rs.1,100/-.
(c) Rs.1,050/-.
(d) None of the three.

36. Goods costing Rs.4,80,000 were sent on consignment basis. Goods are invoiced at
125% of the cost price. The invoice price and the loading will be:
(a) Rs.6,00,000 and Rs.1,00,000.
(b) Rs.5,00,000 and Rs.1,00,000.
(c) Rs.6,00,000 and Rs.1,20,000.

37) Mr. A sent 250 units costing Rs.10,000 each to Mr. B. The goods were to be sold as to
yield a gross profit of 20% on sales. Mr. B sold 150 units @ Rs.14,200 per unit on
credit and 75 units @ Rs.14,000 for cash. Mr. B is entitled to a commission Rs.500 per
unit. The amount of commission will be:
(a) Rs.75,000
(b) Rs.37,500
(c) Rs.1,12,500
(d) Rs.85,000
(e) Rs.5,00,000 and Rs.1,20,000.

38). Ram and Shyam enter into a joint venture. Both of them deposited Rs.65,000 and
Rs.32,500 respectively into a joint venture. Goods were purchased for Rs.75,000 and
expenses amounting Rs.10,950 were incurred. Goods sold for Rs.90,000 and goods
unsold were taken over by Ram at an agreed value of Rs.2,700. The profit on joint
venture is:
(a) Rs. 17,700
(b) Rs. 4,500
(c) Rs. 4,050
(d) Rs.6,750

40). Goods costing Rs.1,20,000 were sent on consignment basis. These goods are
invoiced to give a gross margin of 20% on invoice price. The amount of loading is:
(a) Rs.24,000.
(b) Rs.30,000.
(c) Rs.20,000.
(d) None of the above.

41) Memorandum joint venture account is prepared _________
(a) When separate set of joint venture books is prepared.
(b) When each co-venturer keeps records of all the the joint venture transactions
himself.
(c) When each co-venturer keeps records of their own joint venturer transactions.
(d) None of the above.

42) In case of del-credere commission provided by consignor to consignee, bad debts is a
loss of _________
(a) Consignee.
(b) Consignor.
(c) Both consignor and consignee.
(d) Neither of the two.

43) The party who sends the goods for sale on fixed commission basis is __________
(a) Consignee.
(b) Consignor.
(c) Drawee.
(d) Drawer

.44). Ram in a joint venture with Shyam purchased goods costing Rs. 20,000 and sends to
Shyam for sale incurring Rs.1,000 on freight. Shyam took the delivery and paid Rs.500
as carriage. He sold the goods costing Rs.18,000 for Rs. 25,000 and kept the
remaining goods at cost price. Sharing equal profits of the venture, amount to be paid
by Shyam to Ram will be
(a) Rs.25,000.
(b) Rs.22,250.
(c) Rs.23,750.
(d) Rs.24,500.

45. Expenses incurred by the consignor on sending the goods to the consignee is Rs.1,000
for insurance, Rs.1,500 on freight and Rs.500 on packing the goods. While expenses
incurred by the consignee on behalf of the consignment are Rs.800 on octroi, Rs.600
as godown charges and Rs. 1,200 as selling expenses. The amount to be excluded
while calculating consignment stock will be
(a) Rs.2,600.
(b) Rs.600.
(c) Rs.1,200.
(d) Rs.1,800

46. Goods costing Rs. 80,000 are consigned by Manjari & Co. to Anjali & Co. for
Rs.1,00,000. Expenses of the consignor in this respect was Rs. 5,000. Consignee
spends Rs. 6,000 for taking the delivery. Some of the goods were returned by the
consignee costing Rs.10,000. The amount to be credited to consignment account for
goods returned will be
(a) Rs.12,500.
(b) Rs.11,100.
(c) Rs.11,375.
(d) Rs.13,875.

47. If cost of goods sold is Rs.1,00,000, sales is Rs.1,25,000, closing stock is Rs.20,000,
the gross profit will be
(a) Rs.45,000
(b) Rs. 5,000
c) Rs. 25,000
(d) None of the three.

48). X enters into a joint venture with Y. The goods were purchased by X and Y amounting
Rs.20,000 and Rs.40,000 respectively. Y incurred the expenses of Rs.5,000 and
received cash of Rs.1,000. Goods were sold by X and Y amounting Rs.22,000 and
Rs.39,000. Goods unsold were taken over by Y for Rs.2,000. The profit or loss on joint
venture is
(a) Profit of Rs. 2,000.
(b) Loss of Rs. 2,000.
(c) Profit of Rs. 1,000.
(d) Loss of Rs.1,000

49). The accountant of M/s ABC & Bros. paid personal income tax for the proprietor
amounting Rs.10,000. This income tax should be
(a) To be added to capital.
(b) To be credited to Profit & Loss Account.
(c) To be debited to Trading Account.
(d) To be deducted from capital.

50). Goods costing Rs10,000 sent out to consignee at Cost + 25%. Invoice value of the
goods will be
(a) Rs.12,500.
(b) Rs.12,000.
(c) Rs.10,000.
(d) None of the above.

51. Goods costing Rs. 10,000 is supplied to Ram at an invoice price of 10% above cost and
a trade discount of 5%. The amount of sales is
(a) Rs. 11,000.
(b) Rs. 10,450.
(c) Rs. 10,500.
(d) None of the above.

52 Joint venture account is ________.
(a) Personal account.
(b) Real account.
(c) Nominal account.
(d) None of the three.

53. Abnormal loss on consignment is credited to ________
(a) Profit and loss account.
(b) Consignee’s account.
(c) Consignment account.
(d) None of the three.

54. Mr. A consigned goods costing Rs.2,50,000 to Mr. B at an invoice price of Rs.3,00,000.
The goods were to be sold at invoice price or above. Mr. B sold some of the goods at
invoice price of Rs.2,00,000 and some at 10% above cost i.e. Rs.1,10,000. For this he
gets 5% commission. The amount of commission is
(a) Rs.18,000.
(b) Rs.15,000.
(c) Rs.12,500.
(d) Rs.15,500.

55.) 1,000 kg of oranges are consigned to a wholesaler, the cost being Rs.8 per kg, plus
Rs. 925 of freight. It is concluded that a loss of 15% is unavoidable. The cost per kg of
orange will be
(a) Rs. 9.41.
(b) Rs. 10.00.
(c) Rs. 10.50.
(d) Rs. 8.93.

56.) Ajay bought goods of the value of Rs 20,000 and consigned them to Bijay to be sold by
them on a joint venture, profits being divided equally. Ajay draws a bill on Bijay for an
amount equivalent to 80% of cost on consignment. The amount of bill will be:
(a) Rs.16,000
(b) Rs.20,000.
(c) Rs.4,000.
(d) Cannot be determined.

57). X of Kolkata sends out goods costing 100,000 to Y of Mumbai at cost + 25%.
Consignor’s expenses Rs 2000. 3/5th of the goods were sold by consignee at 85000.
Commission 2% on sales + 20% of gross sales less all commission exceeds invoice
value. Amount of commission will be:
(a) Rs.3,083.
(b) Rs.3,000.
(c) Rs.2,500.
(d) Rs.2,000.

58). Anuj bought goods of the value of Rs 10,000 and consigned them to Bittu to be sold by
them on a joint venture, profits being divided equally, Anuj paid Rs 1,000 for freight and
insurance. Anuj draws a bill on Bittu for Rs 10,000. Anuj got it discounted at Rs 9,500.
Bittu sold the goods for Rs 15,000. Commission payable to Bittu Rs 500. The amount to
be remitted by Biitu to Anuj will be:
(a) Rs.12,500
(b) Rs.13,000
(c) Rs.14,500
(d) Rs.13,500

59). R sends out goods costing Rs.2,00,000 to K. Consignor’s expenses Rs.5,000.
Consignee’s expenses in relation to sales Rs 2,000. 4/5th of the goods were sold at
20% above cost. The profit on consignment will be:
(a) Rs.26,000
(b) Rs.32,000
(c) Rs.26,200
(d) Rs.(6,000)

60). Ansh and Vansh enter into a joint venture to sell a consignment of biscuits sharing
profits and losses equally. Ansh provides biscuits from stock Rs 10,000. He pays
expenses amounting to Rs 1,000. Vansh incurs further expenses on carriage Rs 1,000.
He receives cash for sales Rs 15,000. He also takes over goods to the value of Rs
2,000. Profit on venture will be
(a) Rs.3,000
(b) Rs.5,000
(c) Rs.6,000
(d) Rs.3,500