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JAIIB-ACCOUNTING & FINANCE FOR BANKERS-MOD-C

MODEL QUESTIONS
1) Which of the following may not be part of the Bank
reconciliation process.
a) Interest on overdraft
b) Dishonour of cheque
c) Cash drawn from bank
d) heque deposited but not collected
!) "econciliation of overcasting on receipts side of cash book
a) Increases the balance in the cash book.
b) Increases the balance in the passbook.
c) Decreases the balance in the cash book.
d) Decreases the balance in the passbook.
#) Which of the following is true
a) Bank "econciliation $tatement%B"$) is an account.
b) B"$ is prepared by the bank.
c) BRS shows causes of disagreement between cash book &
passbook.
d) B"$ shows only e'cess of cash book over passbook.
() If a trader en)oys an overdraft facility* then
a) His passbook will show debit balance.
b) +is cash book will show debit balance .
c) e'cess of deposits over withdrawals
d) ,one of the above
-) Direct deposit by a customer in the bank
a) Shows a higher passbook balance than cash book.
b) $hows a lesser passbook balance than cash book.
c) $hows no difference.
d) ,one of the above.
.) /oods worth "s.!000 sold to 1i)ay was entered in purchase
account2
3he rectification is
a) redit purchases and credit sales to the e'tent of "s.!000
each & debit 1i)ay by "s.!000
b) Debit purchases and debit sales to the e'tent of "s.!000 each
& credit 1i)ay.
c) Debit sales to the e'tent of "s.(000.
d) redit purchases to the e'tent of "s.(000.
4) 5achinery worth %WD1) 100067 sold for 1!0067 is entered in
sales register. 3he rectification is
a) redit sales 1!0067* debit machinery 100067 and debit 8&9 a6c
!0067.
b) Debit sales 1!0067 * credit machinery 100067 and credit 8&9 a6c
!0067.
c) redit machinery 1!0067* debit sales 100067 and debit 8&9 a6c
!0067.
d) Debit machinery 1!0067* credit sales 100067 and credit 8&9 a6c
!0067.
:. $ales return of amount "s.1000 from 1i)ay was wrongly
entered in purchase book.
3he rectification is
a) Debit sales to the e'tent of "s.!000.
b) redit purchases to the e'tent of "s.!000
c) redit 1i)ay "s.!000* debit sales and purchases to the e'tent
"s.1000* each.
d) Debit sales return by "s.1000 and credit purchases by
"s.1000
;) Which of the following will not affect 3rial Balance
a) Goods sold on credit not recorded in books.
b) <verstating of sales register.
c) "ent account credited instead of debit.
d) $alary debited to the e'tent = the amount.
10) $uspense a6c is not used in which of the following cases.
a) before trial balance.
b) after trial balance.
c) before final accounts.
d) none of the above.
11) Which of the following is true
a) 3rial balance ensures arithmetical accuracy.
b) 3rial balance errors are not located then the difference is sent
to suspense a6c.
c) 3rial balance is base for final accounts.
d) All of the above.
1!) Which of the following are true
a) ,ominal accounts always have credit balances.
b) Real accounts always have debit balances.
c) Debit balance in ledger account is credit balance in trial
balance.
d) 8&9 a6c appears in trial balance.
1#) >reight e'penses for moving new machinery to factory is
a) "evenue e'penses
b) Deferred revenue e'penditure
c) Capital e'penditure
d) ,one of the above
1() Which of the following is false
a) "eplacement of defective part of machinery is revenue
e'penditure
b) Daily wages paid for erection 6installing of machinery is capital
e'penditure
c) Underwriting commission for issue of shares is revenue
e'penditure
d) ?'cess of sale price of 5achinery over its W D 1alue but less
than cost price is treated as revenue receipt
1-) Which of the following is not a deferred revenue e'penditure
a) 8reliminary e'penses for setting up a company.
b) Amount raised through "ights issue.
c) +uge sales promotion e'penditure in launch of new product
d) ost of preparing pro)ect report
1.) 5atch the columns@
a) 8urchase of land for premises 1) Deferred "evenue
?'penditure %c)
b) 8urchase of machinery for sale !) apital ?'penditure
%a)
c) 9egal e'penses for issue of shares #) "evenue ?'penses
%b)
d) ?'cess of sale price of asset over
W D 1alue () apital "eceipt %e)
e) ?'cess of sale price of asset over
cost price -) "evenue "eceipt %d )
14) >or an e'pense to be classified as revenue or capital depends
on
a) Aind of e'pense
b) Duration of the benefit of the e'penditure
c) ?ffect on revenue earning capacity
d) All of the above
1:) ost of goods sold is
a) <pening stock B purchases B closing stock
b) Opening stock B purchases C closing stock
c) <pening stock C purchases B closing stock
d) ,one of above
1;) In 9I>< method of inventory valuation
a) Issue of stocks to production is at latest price
b) losing stock is at latest price
c) Both a) & b)
d) ,either a) nor b)
!0) In >I>< method of inventory valuation
a) losing stock is at latest price
b) Issue of stocks to production is at earliest price
c) Both a) & b)
d) ,either a) nor b)
!1)Which of the following is most desirable
a) Pricing issue of goods to match current material costs
b) <verstating profits
c) Dnderstating profits
d) none of the above
!!) Es per accounting standards which of the following is not a
preferred method
a) I!O
b) >I><
c) WE5
d) Ell of them
!#) onsider the following@
0160( <pening stock of 1000 units at "s. 1067 each
1060( 8urchases of -00 units at "s. ;67 each
1.60( 8urchases of #00 units at "s. 1167 each
1:60( /oods of #00 units released to production
#160( Books closed
Enswer the following@ under 9I>< under >I><
under WE5
/oods released to production F "s 1167 F "s. 1067
F "s. ;.:;67
losing stock F "s.1067 F "s. 1167
F "s. ;.:;6
!() "ead the following and answer @
Drawer is GEH
Drawee is GBH
?ndorsee is GH
In the books of GEH* Bills receivable a6c is debited and BHs a6c
is credited* then
a) Bill accepted by GEH
b) Bill accepted by G BH
c) Bill retired by GBH
d) ,one of the above
In the books of B * Bills payable a6c is debited and bank account
is credited
a) Bill accepted by GBH
b) Bill retired by GBH
c) Bill dishonoured by GBH
d) Bill sent by GEH for payment
!-) Which of the following is not true
a) there is no difference in appearance between trade
and accommodation bill.
b) E bill of e'change must be accepted
c) Drawee is maker of a bill
d) Eccommodation bill is for an imaginary transaction
!.. ,oting charges are
a) 8aid to bank for dishonour
b) 8aid to drawer for dishonour
c) Paid to notary public for recording dishonour
d) ,one of the above.
!4. /oods lost in transit is
a) "ominal loss
b) Ebnormal loss
c) asual loss
d) onditional loss
!:. Due to heavy flooding a truck carrying consignment
goods sinks. 3his loss is called
a) contingent loss
b) ,ominal loss
c) Abnormal loss
d) asual loss
!;. Which of the following is true for leasing and hire
purchase
a) 9essor and vendor can claim depreciation.
b) essor and hirer can claim depreciation.
c) 9essee and hirer can claim depreciation.
d) 9essee and vendor can claim depreciation.
#0. In sum of digits method for - years which of the following
is the 1
st
yearHs allocation ratio.
a) 161-
b) !61-
c) #61-
d) (61-
e# $%&$
#1. Which of the following is true
a) 3otal lease rent I cost of asset 7 total finance income B
residual value
b) 'otal finance income I total lease rent C cost of asset B
residual value
c) 3otal finance income I cost of asset C total lease rent B
residual value
d) ost of the asset I total lease rent B residual value B total
finance income
#!. In operating lease the period is
a) ess than the useful life of the asset.
b) /reater than the useful life of the asset.
c) ?qual to the useful life of the asset.
##. In comparing lease & hire purchase %+ 8) there are
differences & similarities.
<f the following which one is not trueJ
a) In lease the user of the asset does not retain it* while in + 8 he
does.
b) In lease the user does not claim depreciation while he does in
+ 8.
c) 8ayment of rentals is on instalment basis in both.
d) 'he users of assets in both lease & + 8 run the risk of
obsolescence.
#(. "eceipts and payments statement shows
a) <nly revenue receipts and payments during a year.
b) <nly capital receipts & payments during a year.
c) Both capital and revenue receipts during a year.
d) Gash <nlyH transactions.
#-. Income for the year I I* <utstanding Income for previous
year I Id*
<utstanding Income of current year I Idi* then "eceipts for
the year is
a# I ) Idi * Id
b) I B Idi C Id
c) I B Idi B Id
d) ,one of the above.
#.. <pening balance of asset I <i* losing balance of asset
I <c* Depn. I D*
3hen addition to the asset during the year is
a) <c C D C <i
b) <i B D C <c
c# Oc * D ) Oi
d) <i C D C <c
#4) 3ick in the appropriate column for a ,on73rading
<rganiKation
Item "evenue "eceipt apital
"eceipt
a) Donations for sports meet L
b) Donations by 9egacy6Will L
c) /rant for playground L
d) 9ife membership fees L
e) 8rofit on sale of fi'ed assets L
#:) >or a ,on7 3rading <rganiKation* a 8 & 9 E6c called an
Income & ?'penditure E6c because.
%a)3hey often make losses.
%b)3hey are forbidden by statute to make profits
%c) B+ ob)ect of their association they are non profit making bodies.
%d)3heir income & e'penditure statement are a combination of
capital & revenue receipts.
#;) Which of the following is not true
%a)Depreciation is an e'pense charged to the 8 & 9 a6c.
%b)Depreciation is not a part of the operating costs.
%c) Essets that are depreciated are tangible assets.
%d)Depreciation is like an insurance e'pense.
(0) Dnder written down value method of Depn.* the W D 1 of the
asset is always
a) equal to Kero
b) M Kero
c# , -ero

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