Accounting Questions MCQs
Accounting Comprehensive Exam: 20 MCQs, 30 minutes. Time: 9:30am – 10:00am
Concepts to be explained
Adjusting and closing entries
Unpaid salaries Rs. 7,500 (accrued expense)
Outstanding electric bills Rs. 6,500 (accrued expense)
Commission Receivable Rs. 5,000 (accrued revenue)
Depreciation of office furniture at 10% office equipment 15% (Office furniture Rs. 35, 000 and office equipment Rs. 45,000)
Allocate allowances for uncollectible 2% on accounts receivable. (Accounts Receivable Rs. 17,000)
Closing entries for Debit Credit
Revenue Rs. 1, 000 Revenue Rs. 1, 000 Income Summary Rs.1, 000
Expenses Rs. 700 IS Rs. 700 Expenses Rs. 700 Income Summary (in case of profit) IS Rs. 300 Capital Rs.700
Drawings Rs.100 Capital Rs.100 Drawings Rs.100
Adjusting entries to record Debit Credit
Accrued Revenue: Revenue Receivable Revenue
Depreciation: Dep. Exp Allowance for Dep.
Accrued Salaries Expenses Salary Exp Salary Payable
Bad debts expense B/D exp All. For B/D
Depreciation
Calculating Depreciation Expense per year under Straight Line Method when cost, estimated residual value and estimated useful life are given.
Cost of a machine is Rs. 50, 000,
ERV is Rs. 5, 000 and
EUL is 5 years year Cost Working Dep. Exp Acc. Dep. Book value
1 50,000 2 50,000 3 50,000 Taha purchased a vehicle on 1 November 2007 for Rs.150,000 and books are closed at Dec 31 each year, The estimated useful life of vehicle is 10 years and its resale value at the end of that time is estimated to be Rs. 30,000.
Concepts to be explained
Adjusting and closing entries
Unpaid salaries Rs. 7,500 (accrued expense)
Outstanding electric bills Rs. 6,500 (accrued expense)
Commission Receivable Rs. 5,000 (accrued revenue)
Depreciation of office furniture at 10% office equipment 15% (Office furniture Rs. 35, 000 and office equipment Rs. 45,000)
Allocate allowances for uncollectible 2% on accounts receivable. (Accounts Receivable Rs. 17,000)
Closing entries for Debit Credit
Revenue Rs. 1, 000 Revenue Rs. 1, 000 Income Summary Rs.1, 000
Expenses Rs. 700 IS Rs. 700 Expenses Rs. 700 Income Summary (in case of profit) IS Rs. 300 Capital Rs.700
Drawings Rs.100 Capital Rs.100 Drawings Rs.100
Adjusting entries to record Debit Credit
Accrued Revenue: Revenue Receivable Revenue
Depreciation: Dep. Exp Allowance for Dep.
Accrued Salaries Expenses Salary Exp Salary Payable
Bad debts expense B/D exp All. For B/D
Depreciation
Calculating Depreciation Expense per year under Straight Line Method when cost, estimated residual value and estimated useful life are given.
Cost of a machine is Rs. 50, 000,
ERV is Rs. 5, 000 and
EUL is 5 years year Cost Working Dep. Exp Acc. Dep. Book value
1 50,000 2 50,000 3 50,000 Taha purchased a vehicle on 1 November 2007 for Rs.150,000 and books are closed at Dec 31 each year, The estimated useful life of vehicle is 10 years and its resale value at the end of that time is estimated to be Rs. 30,000.