Accounting Period Concept

Q.

Year that begins from 1st of January and ends on 31st of December, is known as _____ The year that begins from 1st of April and ends on 31st of March of the following year, is known as _____

1. Financial Year & Calendar Year

2. Financial Year

3. Calendar Year

4. Calendar Year & Financial Year

Q. Following balances appear in the Trail Balance of a firm as on 31st March, 2018:

		₹
Opening Stock:	Raw Material	80, 000
	Finished Goods	1, 40, 000
Purchases		3, 60, 000
Sales		7, 00, 000
Returns:	Purchases	10, 000
	Sales	6, 000
Wages		1, 30, 000
Factory Expenses		90, 000
Freight:	Inwards	20, 000
	Outwards	30, 000
At the end of the accounting period, stock was:
Raw Materials		70, 000
Work-in-Process		20, 000
Finished Goods		1, 10, 000

Prepare Trading Account of the firm.

Q.

What are the 4 phases of accounting?

Q.

Explain the functions of accounting

Q.

What are the six steps for recording a business transaction?

Q.

The business transactions are recorded date wise to create proper record for all transactions. This is part of which of the following

1. Accounting Period Concept

2. Realization Concept

3. Materiality Concept

4. Historical Record Concept

Q.

Rectify the following errors by passing entries:

(i) Credit sale of old furniture to Mohan for 1, 500 was posted as 5, 100.

(ii) Goods purchased from David Rs.2, 000 passed through sales book.

(iii) Sales Book has been totaled Rs.2, 000 short.

Q.

According to which concept, Financial statements are prepared on regular intervals which is generally yearly.

1. Accounting period

2. Dual Aspect

3. None of these

4. Business Entity

Q. is the time span into which the life of a business is divided for the purpose of preparing financial statements.

1. Calender Year
2. Fiscal Year
3. Accounting period
4. Accrual period

Q.

How many days in a week?

Q.

On 31st March 2017, Ram purchased goods worth Rs 10, 000 from market & sold them for Rs 15, 000 on the same day. On 1st April, he purchased goods worth Rs 20, 000 & sold them for Rs 25, 000 on 5th April. There are no more transactions uptill 31st Dec 2017. What shall be the profit for the Financial Year & Calendar Year respectively?

1. Rs 10, 000 & Rs 5, 000

2. Rs 5, 000 & Rs 5, 000

3. Rs 5, 000 & Rs 10, 000

4. Rs 10, 000 & Rs 10, 000

Q.

What is the purpose of a suspense account?

Q.

According to which concept, the financial records should always be published in a definite time period?

1. Accounting period

2. Consistency

3. Money Measurement

4. Cost Concept

Q.

Which of the following is the time span into which the total life of a business is divided for the purpose of preparation of financial statements?

1. Fiscal Year

2. Calendar Year

3. Accounting Period

4. Accrual Period

Q. State the following statement is True or False:

1. True
2. False

Q.

Enter the following transactions is an Analytical petty cash book under the Imprest system for the month of February 2011.

2011 Feb.
1 4 6 10 13 17 19 21 24 26 27	Received cheque from Head Cashier Rs 2700.
	Purchased pencils for Rs 45, inkpot Rs 25 and papers Rs 55.
	Paid for repairs Rs 190.
	Paid Taxi fare to Manager Rs 168.
	Paid subscription for newspaper Rs 212.
	Paid for refreshments to customers Rs 175.
	Paid for Ranjeet in settlement of his account Rs 230.
	Paid wages to casual labour Rs 220.
	Paid electricity bill Rs 525.
	Paid for carriage Rs 105.
	Purchase a wooden chair for Rs 275.

Q.

From the following Subsidiary Books prepare necessary ledger accounts and balance them.

Sales Book
Date	Particulars	Outward Invoice No.	L.F.	Amount Rs
2011 Apr.1	Amit			6, 000
5	Pravin			8, 000
20	Santosh			4, 000
30	Mehta and Co.			12, 000
	Total			30, 000

Sales Return Book
Date	Particulars	Credit Note No.	L.F.	Amount Rs
2011Apr. 1	Pravin			2, 000
2	Santosh			1, 000
	Total			3, 000

Q. concept states that the financial records should always be published in a definite time period.

1. Going Concern
2. Accounting equation
3. Accounting period
4. Money Measurement

Q. ____________ is used by business entities for keeping records of their monetary or financial transactions.

1. Accounting
2. Cost accounting
3. Costing
4. Budgetary Control

Q.

Enter the following transactions in the petty cash book. The imprest is Rs 500.

2013

March 1 Chowkidar’s wages Rs 1800

March 2 Pencils purchased Rs 60

March 8 Postage stamps Rs 400

March 12 Courier charges Rs 450

March 14 Cartage Rs 150

March 15 Scooter fare for assistant Rs 75

March 16 Cleaning expenses Rs 185

March 20 Taxi fare to manager Rs 175

March 24 Refreshment for customers Rs 120

March 25 Writing pads and registers Rs 180

March 27 Bus fare to peon Rs 20

March 28 Cartage Rs 210

March 29 Postage stamps Rs 210

March 29 Courier charges Rs 220

March 30 Purchase of 4 tube lights Rs 135

March 31 Cleaning charges Rs 110

Q. Which of the following is a time span in which the total life of a business is divided for the purpose of preparing financial statements?

1. Accounting period
2. Accrual period
3. Fiscal year
4. Calendar year

Q.

From the following cash Book of Mr. Patel for the month of April 2011, Prepare necessary ledger A/c’s and Balance the same.

Cash Book
Dr.						Cr.
Date	Particulars	R.No	L.F.	Amount Rs	Date		Particulars	V.No.	L.F.	Amount Rs
2011 April					2011 April
1	To Balance b/d			5, 000	1		By Purchases A/c			800
3	To Rohan’s A/c			1, 400	4		By Wages A/c			500
6	To Sales A/c			3, 600	8		By Purchases A/c			3, 400
8	To Interest A/c			1, 000	10		By Rekha’s A/c			1, 900
10	To Imran’s A/c			2, 000	12		By Drawing A/c			1, 700
15	To Sales A/c			6, 000	22		By Purchases A/c			1, 600
20	To Rohan’s A/c			700	30		By Bank A/c			6, 800
30	To Capital A/c			7, 000	30		By Balance c/d			10, 000
				26, 700						26, 700
May 1	To Balance b/d			10, 000