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The company maintains provision for bad debts at 5% and its outstanding debtors at the end of the year was 3.00,000. During the
year, opening balance ofprovision for bad debt was 5,000 and bad debt during
the year was 10,000. The debit to profit and loss account for the year ended in respect of provision for
debtors will be:
(a) 50,000
(b) 25,000
(c) 20,000
(d) 15.000
1.
2. Goodwill is :
(A) Current Asset (B) Tangible Asset
80,000
1,20,000
20,000
(D) Asset
11. Trade discount allowed on the sales, if appearing in the trial balance, is shown in the final accounts :
(a) On the debit side of trading account
(b) On the debit side of the profit and loss account
(c) By way of deduction from the sales in the trading account
(d) Credit of P&L A/c
12. Income Tax paid by a sole trader is shown:
(a) On the debit side of the trading account
C's Trial Balance contains the following information: Bad debts 8.000, Provision for Doubtful debts 6,000, Sundry
debtors
25,000. It is desired to create a provision for bad debts at 10% on sundry debtors at the end of the year. Sundry debtors (after
provision) will appear in the Balance Sheet at a figure
(a) 22,500 (b) 21,000 (c) 18,000
(d) 15,500
27. A Trial Balance contains the following information :
Bad debts
5,000
Discount allowed
4,000
Provision for discount on debtors
2,000
Provision for Doubtful debts
5,000
Sundry Debtors
50,000
At the end of the year, it is desired to maintain a provision for debts at 4.000 and provision for discount reserve
on debtors at 2,000. Sundry Debtors (after provision) will appear in the Balance Sheet at a figure : (a) 44,000
(b) 38,000
(c) 44,700
(d) 32,300
28. A Trial Balance as at 31st December contains the following information: 12% Bank loan 50,000, Interest paid 3,800. Interest
debited to the Profit and Loss Account is :
(a) 6,000 (b) 2,200 (c) 9,800
(d) 4,800
29. Return outwards appearing in Trial Balance are deducted from :
(a) Sales (b) Purchases (c) Returns Inwards
(d) Closing Stock
30. Return Inwards appearing in Trial Balance are deducted from :
(a) Purchases (b) Sales (c) Returns Outward (d) Closing Stock
31. Salaries and Wages appearing in Trial Balance are shown :
(a) on the debit side of Trading Account jig (b) on the debit side of Profit and Loss Account
(c) on the liabilities side of the Balance Sheet (d) on the assets side of the Balance Sheet
32. Wages and salaries appearing in Trial Balance are shown :
(a) on the debit side of Profit and Loss Account
(b) on the debit side of Trading Account
(c) on the liabilities side of the Balance Sheet
33. Freight inward appearing in Trial Balance Sheet is shown:
(a) on the debit side of Profit and Loss Account (b) on the debit side of Trading Account
(c) on the credit side of Trading A/c
(d) on the liabilities side of the Balance Sheet
34. Carriage outwards appearing in the Trial Balance are shown :
(a) on the debit side of Profit and Loss Account
(b) on the debit side of Trading Account
(c) on the liabilities side of the Balance Sheet
(d) on the credit side of P&L A/c
35. The Trial Balance shows Opening stock 50.000. It is
(a) Debited to the Trading Account
(b) Debited to the Profit and Loss Account
(c) Deducted from the closing stock in the Balance Sheet
(d) Shown as an asset
36. Trial Balance contains the following information: Bad debts 2,000, Provision for Doubtful debts
1,500. It is desired to make a Provision for Doubtful Debts of 2,000 at the end of the year. The amount
to be debited to the Profit and Loss Account is :
( a ) 5,500
(b) 6,000
(c) 2,500
(d) 4,500
37.
A Trial Balance provides you the following information: Bad debts 800, Provision for Doubtful debts
3,000. It is desired to maintain a Provision for Doubtful debts of 1,000. The accounting treatment of
these adjustments is :
(a) 1,800 to be debited to the Profit and Loss Account
(b) 1,200 to be credited to the Profit and Loss Account :
(c) 1,200 to be debited to the Profit and Loss Account
(d) 4,800 to be debited to the Profit and Loss Account
38. A Trial Balance contains the following information: Discount allowed 1,500. Provision for discount on
debtors 1,100. It is desired to make a provision for discount on debtors of 1,800 at the end of the year.
The amount to be debited to the Profit and Loss Account is :
(a) 2,200
(b) 4,200 (c) 1,700
(d) 3,200
39. In a trial balance, debtors appearat45,000. Provision for doubtful debtsat5%to be made after considering the following adjustments :
1. An amount of 1,000 is included in debtor who is bankrupt and his estate is expected to realize 50 (fifty) paise in the rupee.
26.