cpt questions Fundamentals of Accounting

The purpose of Accommodation bill

A draws a bill for Rs. 20,000 on ‘B’. ‘B’ Accepts for 2 months. After 1 month ‘B’ paid the bill amount @9%. Journal entry in the Books of ‘B’ will be

Promissory note features. 1) Must be stamped 2) Payee must sign 3) Conditional undertaking 4) Certain amount 5) Not transferable to bearer

In the absence of agreement, the loss of goods in consignee godown is borne by

Goods sent on consignment for Rs.50,000.During transit 1/10th of goods were destroyed by fire. Again 1/9th of goods received by consignee were destroyed by fire in godown.Half of the remaining goods were sold for Rs.30,000. Freight & insurance paid by consignor Rs.2,500 and Rs.1500 respectively. Calculate closing Stock.

In case of Joint Venture business, method of Accounting to be followed and decided by

In case of purchase of machinery in joint venture through joint bank A/c, while separate set of books is maintained. Which of the following is the correct entry

‘A’ and ‘B’ enter into a joint venture business ‘A’ purchased goods worth Rs. 30,000 and ‘B’  sold for Rs. 40,000. ‘A’ is entitled to 1% commission on purchases and ‘B’ is entitled to 5% commission on sales. The profit on venture to be shared by A & B is (The profit sharing ratio is 2:1)

Rohan Ltd is in the business of extracting coal from mines. It should charge depreciation as per _____ method.

Cost of machine is Rs.1,00,000 Scrap value Rs. 10,000 and life is 4 years. What will be the amount of depreciation in 3rd year according to sum of years digits method

A Trader followed WDV method of depreciation, the book value of Asset after 4 years is 24% of original cost. Find rate of depreciation.

Loss on sale of machinery is credited to __account.

A machine purchased for Rs. 2,50,000 on 1.1.2010. It can produce 30,000 units during its useful life, its estimated scrap value is Rs.10,000. The pattern of production over the next 4 years is as follows 2010 – 6250 units, 2011-2275 units, 2012-12,000 units, 2013-3452 units, the WDV of the machine after 3rd year will be

After rectification of the following errors, effect on Net profit will be i) A cheque dishonoured Rs.3,100 debited to discount A/c . ii) Sales book (undercast) short by Rs.23,000 iii) A customer returned goods of value of Rs.1,200, included in stock but not recorded

The following are the errors committed while the entries are posted in ledger.1) Errors of Principle 2) Errors of commission. 3) Errors of Partial omission 4) Errors of complete omission.

InCase of insufficient profits i.e., profits less than interest on capital then the profits are distributed in :

The assets which were earlier revalued upward and now revalued downward, to the extent of earlier upward revaluation amount should be.

A, B are partners sharing profit & losses in the ratio of 5 : 3. ‘C’ admitted as a new partner for 1/5th share and his capital is Rs. 1,20,000 & goodwill Rs. 60,000 Capitals of A, B & C were RS.

At the time of admission the unrecorded investments Rs. 30,000 should be treated, the adjustment entry will be

Kapur and sharma are partners in partnership firm. Calculate the interest on drawings of kapur and sharma @ 10% p.a. for the year ending on 31st December 2013. Kapur withdrew Rs. 2,000/- per month in the beginning where as sharma withdrew same amount at the end of every month