Accounting Practice MCQ Page 42

Multiple Choice questions for Accounting in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 4104   A firm buys an asset for RS. 10,000 and depreciates it using the diminishing balance method.which of the following amounts world be the second yearl's depreciation charge at 10% per annum
  1. RS. 800
  2. RS. 810
  3. RS. 900
  4. RS. 1,000
Question: 4107   On Ist january a firm,s loose tools are valued at RS. 4,500. A year later they are revalued at RS. 3000. The depreciation charge for the year is
  1. RS. 500
  2. RS. 1,000
  3. RS. 1,500
  4. RS. 3,OOO
Question: 4110   The book value of a motor van on Ist January is RS. 20,000.Two years later the book value is Rs. 10,000.. The straight line depreciation rate of charge each years is
  1. 12%
  2. 25%
  3. 33%
  4. 50%
Question: 4114   The vehicles in a company's fieet usually last three years. it would probably chrage depreciation on a fixed instalment basis at a rate of
  1. 25% per annum
  2. 33% per annum
  3. 50% per annum
  4. 665% per annum
Question: 4116   A firm buys a lathe for Rs. 20,000 on Ist January and another one for RS.24,000 on Ist july. Deprecation is charged at the rate of 10% per annum or cost, using the basis of one month's ownership needs one month's depreciation. The total depreciation charge on the 31 December should be
  1. RS. 2,200
  2. RS. 3,200
  3. RS. 3,600
  4. RS.4,400
Question: 4119   An asset cost RS. 12,000 and is expected to last ten years, so depreciation is charged at RS. 1,200 per year. How-ever, after ten years the asset is still in use. Which of the following would be the future charge for deprebiation
  1. Continue to charge RS. 1,200per year depreciation
  2. Credit profit and loss account with RS. 1,200 every year the asset continues to be in use.
  3. Stop charging depreciation after the ten years
  4. Reduce the depreciation charge on another asset
Question: 4121   A firm's assets at total RS. 1,00,000. The total depreciation charged to date is RS.45,000. The book value of the assets is
  1. RS. 45,000
  2. RS. 55,000
  3. RS. 1,00,000
  4. RS. 1,45,000
Question: 4125   A firm's assets at cost total Rs.1,00,000 .The total depre.. 2,40,000. ciate charged to date is Rs.2,40000. Depreciation was charged at the rate of 10% annum by the straight line method. It decided to change its method to dimminishing balance at 10% per annum, with retrospectve effect. The total difference in the profits over the three years would be
  1. RS, 6,690
  2. Rs, 6,960
  3. RS. 9,660
  4. RS. 9,690
Question: 4174   If the provision for bad debts account is adjusted at the end of this finacial year to equal 5% of the debtors. the balance on the total debtors account at 31st December must have been
  1. RS. 10,000
  2. RS. 25,000
  3. RS. 40,000
  4. RS. 50,000
Question: 4175   The nit figure for debtors which appeared in the balance sheet at the end of the previous year was
  1. RS. 47,500
  2. RS. 48,000
  3. RS. 51,500
  4. RS. 52,500
Question: 4176   If the RS. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, debts and provision for bad debts is
  1. a decrease of TS. 1,500
  2. a decrease of RS. 1,500
  3. an increase of RS. 500
  4. an increase of RS. 1,500
Question: 4183   If the Rs. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, bad provision for bad debts would have been
  1. nil
  2. a decrease of Rs. 500
  3. an increase of RS. 500
  4. an increase of RS. 1,500

Answers to the questions of Accounting on this page

Following list gives the correct choice for the answer of the Accounting mcqs.
4104 . C       4107 . C       4110 . B       4114 . B       4116 . B       4119 . C       4121 . B       4125 . B       4174 . C       4175 . A       4176 . B       4183 . C      

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