Accounts Objectives with solutions

Q. 1   Attempt any FOUR sub-questions of the following:                                            (20)
A]      Answer in ‘One’ sentence each:                                                                           (5)
          (1)      What is Partnership Deed?
Ans:    A partnership deed is a written agreement duly stamped, signed and registered document containing the terms and conditions of the partnership.

          (2)      What is CPU?
Ans:   The central processing unit is that hardware part of a computer that controls the entire working of the computer, processes the commands and data, and outputs the result.

          (3)      What do you mean by Scrap Value of an asset?
Ans:   The net amount which is expected to be realised on the final disposal of a fixed asset is called ‘scrap value’.

          (4)      What are Noting Charges?
Ans:   Noting charges are the fees charged by the Notary Public for noting the dishonour on the face of the bill and in his official register.

[5]      What is the relationship between the Co-ventures?
Ans:   The relationship between the co-ventures is similar to that of temporary partners i.e., principal and agent.

B]      Write a word / term / phrase which can substitute each of the following statements:                                                                                                 (5)
          (1)      An intangible asset which has realisable value:- Goodwill.
(2)      An organisation not having object of earning profit:- Not for Profit Concern / Non-trading organisation.
          (3)      Credit balance on Joint Venture Account:- Profit on Joint Venture.
(4)      A system which have no hard and fast rules for accounting:- Single Entry System.
          (5)      A movable mark on the display screen of computer:- Cursor.
C]      Match the following pairs:                                                                          (5)
Group ‘A’
(1)      Fixed Asset
(2)      Statement of Affairs
(3)      Co-venturers’ Liabilities
(4)      Dishonour of Bill
(5)      Active Partner
Plant & Machinery
-  Single Entry System
-  Unlimited
-  Noting Charges
- Takes Active Part in the Partnership

D]      Select the most appropriate alternative from those given below and rewrite the sentences:                                                                                         (5)
(1)      Single entry system is Incomplete.
          (a)  Complete                   (b)  Scientific                   (c)  Incomplete       (d)  Accurate
(2)      Credit balance of Trading account shows Gross Profit.
          (a)  Net Profit         (b)  Net loss           (c)  Gross Profit      (d)  Gross loss
(3)      A person to whom a bill is endorsed is the Endorsee
          (a)  Endorser                   (b)  Endorsee                   (c)  Drawer            (d)  Drawee
(4)      Income and expenditure account is Nominal Account.
          (a)  Real A/c           (b)  Nominal A/c     (c)  Personal A/c      (d)  Capital  A/c
(5)      Amount contributed by co-venturer’s is debited to Joint Bank Account.
          (a)  Joint venture account                            (b)  Joint Bank account                        (c)  Co-venturer’s account                    (d)  Shares’ account
E]      State with reasons whether the following statements are True / False:       (5)
          (1)      Public Library is a “Not for Profit” concern.
Ans:   This statement is TRUE.
Public Library is setup not to earn profit but to serve the society. Hence, it is a not for profit concern.
          (2)      Payment of bill after due date is called “Retirement of Bill”.
Ans:   This statement is FALSE.
Payment of the bill before the due date is called Retirement of Bill.

F]       Preparation a Formate of Bill of Exchange from the following information: (5)
(1)      Drawer:-  Ankur Shah, Anand Park, Borivali (W), Mumbai: 90.
          (2)      Drawee:-  Sharad Shah, Anand Sadan, Bandra (W), Mumbai: 50.
          (3)      Payee:-    Anish Shah, Anand Mahal, Kandiwali (W), Mumbai: 57.
          (4)      Amount:-  Rs.  15,555.
          (5)      Period :     3 months.
          (6)      Date of Bill:-  1st January, 2008.
          (7)      Date of Acceptance:-  3rd January, 2008
          (8)      Accepted for :-   Rs.  12,000.