Explore topic-wise MCQs in Accounting And Auditing.

This section includes 4 Mcqs, each offering curated multiple-choice questions to sharpen your Accounting And Auditing knowledge and support exam preparation. Choose a topic below to get started.

1.

Accounting entry for recording loss on the realization of sinking fund investment is

A. Sinking fund a/c DrSinking fund investment a/c
B. Sinking fund investment a/c DrSinking fund A/c
C. Profit & loss A/c DrSinking Fund Investment A/c
D. Sinking fund investment A/c DrProfit & loss A/c
Answer» B. Sinking fund investment a/c DrSinking fund A/c
Discussion
2.

Adjustment Entry for rent received in advance would be-

A. Cash A/c ’ Dr,To Rent Received in Advance A/c
B. Cash A/c Dr.To Rent A/c
C. Rent A/c Dr.To Rent Received in Advance A/c
D. Advance Rent A/c Dr.To Rent A/c
Answer» D. Advance Rent A/c Dr.To Rent A/c
Discussion
3.

If stock worth Rs. 10,000 (that has not been insured) is destroyed by fire, the accounting entry is

A. Dr Profit &Loss A/c 10,000 Cr Trading A/c10,000
B. Dr Stock A/c10,000 Cr Trading A/c 10,000
C. Dr Trading A/c 10,000 Cr Stock A/c10,000
D. None of the above
Answer» B. Dr Stock A/c10,000 Cr Trading A/c 10,000
Discussion
4.

If M.Gul a debtor of Rs. 4000 has become insolvent and a dividend of 50% is declared, the entry is

A. Dr Bad Debts 2000 To P & L A/c 2000
B. Dr Cash 2000 To Bad Debts 2000
C. Dr Cash 2000 To Debtors 2000
D. Dr Bad Debts 2000 To Debtors 2000
Answer» E.
Discussion