SOLVED JAIIB COMBINED PAPER 20:
1. Fundamental rule of debit and credit with regard to assets or real accounts is not ......
(i) Debit what comes in and credit what goes out,
(ii) Debit the receiver and credit the giver,
(iii) Debit expenses and losses and credit gains
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
2. How do profits made from normal operations retained in business appear in the balance sheet?
(i) Capital, (ii) Reserves, (iii) Surplus
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
3. Construction of building is a ......
a. Capital Expenditure
b. Revenue Expenditure
c. Deferred Revenue Expenditure
d. None of the above
Ans - a
4. Trial balance validates ......
a. Accuracy of the book keeper
b. Arithmetical accuracy of books
c. Honesty of the book keeper
d. None of these
Ans - b
5. Retiring a bill under rebate means...
a. Dishonouring the bill
b. Making payment of the bill after the due date
c. Making payment of the bill before the due date
d. Making payment of the bill on the due date
Ans - c
6. Sale of Rs. 8000 not recorded into sales book is an ......
a. Errors of commission
b. Errors of omission
c. Errors of principle
d. None of the above
Ans - b
7. In double entry bookkeeping, entry is not balanced with a corresponding ...... entry.
(i) Reverse entry, (ii) Adjusting entry, (iii) Contra entry
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
8. What is a Ledger?
a. A book, where all transactions relating to a particular account are recorded at one place.
b. A book where only cash transactions are recorded.
c. A book where all business transactions are recorded daily.
d. None of the above.
Ans - a
9.Total of returns inward book was added Rs. 3000 short. Trial balance Debit side presently shows a total of Rs. 6251280. Actually it should be?
a. 6254280
b. 6248280
c. 6251280
d. None of the above
Ans - a
10. If an expenditure helps in increasing the earning capacity of a firm, it is a ......
a. Capital Expenditure
b. Revenue Expenditure
c. Deferred Revenue Expenditure
d. None of the above
Ans - a
11. Trial Balance is a ......
a. Nominal Account
b. Personal Account
c. Real Account
d. None of these
Ans - d
12. Balance with the bank as per cash book of the customer is Rs. 14700 and the bank has paid Rs. 2000 as per standing instruction. The said amount should be ......, to reconcile the cashbook with bank passbook.
a. Added
b. Deducted
c. No entry required
d. None of the above
Ans - b
(i) Debit what comes in and credit what goes out,
(ii) Debit the receiver and credit the giver,
(iii) Debit expenses and losses and credit gains
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
2. How do profits made from normal operations retained in business appear in the balance sheet?
(i) Capital, (ii) Reserves, (iii) Surplus
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - d
3. Construction of building is a ......
a. Capital Expenditure
b. Revenue Expenditure
c. Deferred Revenue Expenditure
d. None of the above
Ans - a
4. Trial balance validates ......
a. Accuracy of the book keeper
b. Arithmetical accuracy of books
c. Honesty of the book keeper
d. None of these
Ans - b
5. Retiring a bill under rebate means...
a. Dishonouring the bill
b. Making payment of the bill after the due date
c. Making payment of the bill before the due date
d. Making payment of the bill on the due date
Ans - c
6. Sale of Rs. 8000 not recorded into sales book is an ......
a. Errors of commission
b. Errors of omission
c. Errors of principle
d. None of the above
Ans - b
7. In double entry bookkeeping, entry is not balanced with a corresponding ...... entry.
(i) Reverse entry, (ii) Adjusting entry, (iii) Contra entry
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
8. What is a Ledger?
a. A book, where all transactions relating to a particular account are recorded at one place.
b. A book where only cash transactions are recorded.
c. A book where all business transactions are recorded daily.
d. None of the above.
Ans - a
9.Total of returns inward book was added Rs. 3000 short. Trial balance Debit side presently shows a total of Rs. 6251280. Actually it should be?
a. 6254280
b. 6248280
c. 6251280
d. None of the above
Ans - a
10. If an expenditure helps in increasing the earning capacity of a firm, it is a ......
a. Capital Expenditure
b. Revenue Expenditure
c. Deferred Revenue Expenditure
d. None of the above
Ans - a
11. Trial Balance is a ......
a. Nominal Account
b. Personal Account
c. Real Account
d. None of these
Ans - d
12. Balance with the bank as per cash book of the customer is Rs. 14700 and the bank has paid Rs. 2000 as per standing instruction. The said amount should be ......, to reconcile the cashbook with bank passbook.
a. Added
b. Deducted
c. No entry required
d. None of the above
Ans - b