Showing the 12 most recent of 18 on this concept.

1. CBSE 2026Set ANNUAL1 mark
   Q.Complete the table: Cost of goods sold = Opening Stock + Purchases − .........

   ›Reveal solutionSolution

   The missing term is Closing Stock. Cost of goods sold measures only the goods actually sold, so the stock still on hand at the year end must be removed from the goods available for sale.

   Method

   Goods available for sale during the year = Opening Stock + Purchases (plus any direct expenses). The stock that remains unsold at the close of the year has not yet been sold, so it is deducted to arrive at the cost of the goods that were actually sold.

   | Item | Amount | …

   🔒 Start your 14-day free trial to see the full solution →
2. CBSE 2026Set ANNUAL1 mark
   Q.Complete the table:

   Sales	Purchases	Gross Profit
   ........	1,80,000	20,000

   ›Reveal solutionSolution

   Sales = ₹2,00,000. Gross Profit = Sales − Cost of goods sold, so Sales = Cost of goods sold + Gross Profit. With only purchases given (no opening/closing stock), purchases stand for the cost of goods sold.

   Method

   In the Trading Account, Gross Profit = Sales − Cost of goods sold. Re-arranging gives Sales = Cost of goods sold + Gross Profit. As no opening or closing stock is stated, purchases (₹1,80,000) are taken as the cost of goods sold.

   …

   🔒 Start your 14-day free trial to see the full solution →
3. CBSE 2026Set ANNUAL1 mark
   Q.Expenses which are paid before due date are called as _____.

   ›Reveal solutionSolution

   Expenses paid before their due date are called Prepaid Expenses (expenses paid in advance).

   Under the accrual/matching principle, only the expense relating to the current accounting year is charged to the Profit and Loss Account. When an expense is paid before it becomes due — i.e. its benefit will be received in the next period — the amount paid in advance is a Prepaid Expense.

   …

   🔒 Start your 14-day free trial to see the full solution →
4. CBSE 2025Set ANNUAL1 mark
   Q.Trading Account is prepared on the basis of ______ expenses.

   ›Reveal solutionSolution

   The missing word is Direct.

   Final accounts split expenses into two groups:

   Expense type	Where recorded	Examples
   Direct (incurred to bring goods to saleable condition)	Trading Account	Wages, carriage inward, freight, import duty, factory power
   Indirect (running the business)	Profit & Loss Account	Salary, rent, advertising, office expenses
   …

   🔒 Start your 14-day free trial to see the full solution →
5. CBSE 2025Set ANNUAL1 markMCQ
   Q.Find the odd one:

   (a) Wages account

   (b) Salary account

   (c) Royalty account

   (d) Import duty account

   ›Reveal solutionSolution

   The odd one is the Salary account.

   Group the four items by where they are recorded in final accounts:

   Item	Nature	Recorded in
   Wages account	Direct expense	Trading A/c
   Royalty account	Direct expense	Trading A/c
   Import duty account	Direct expense	Trading A/c
   Salary account	Indirect expense	Profit & Loss A/c
   …

   🔒 Start your 14-day free trial to see the full solution →
6. CBSE 2025Set ANNUAL1 markMCQ
   Q.Find the odd one:

   (a) Machinery account

   (b) Furniture account

   (c) Computer account

   (d) Rent account

   ›Reveal solutionSolution

   The odd one is the Rent account.

   Group the four items by their nature:

   Item	Nature	Shown in
   Machinery account	Fixed asset	Balance Sheet (Assets)
   Furniture account	Fixed asset	Balance Sheet (Assets)
   Computer account	Fixed asset	Balance Sheet (Assets)
   Rent account	Expense (nominal)	Profit & Loss A/c
   …

   🔒 Start your 14-day free trial to see the full solution →
7. CBSE 2025Set ANNUAL1 markMCQ
   Q.Find the odd one:

   (a) General reserve account

   (b) Creditors account

   (c) Machinery account

   (d) Capital account

   ›Reveal solutionSolution

   Group the four accounts by where they appear in the books. Three of them are liabilities/owners' claims; only Machinery account is an asset, so it is the odd one out.

   Classifying each item

   Item	Nature	Side of Balance Sheet
   General Reserve account	Accumulated profit (owners' fund)	Liabilities side
   Creditors account	Liability (amount owed to suppliers)	Liabilities side
   Machinery account	Fixed / real asset	Assets side
   Capital account	Owners' fund	Liabilities side

   Three of the four are claims against the firm's assets (liabilities and owners' funds) and appear on the liabilities side. Machinery is the only asset in the list, so it does not fit the common feature shared by the rest.

   …

   🔒 Start your 14-day free trial to see the full solution →
8. CBSE 2024Set ANNUAL1 markMCQ
   Q.Find odd one.

   (a) Building

   (b) Machinery

   (c) Furniture

   (d) Bills payable.

   ›Reveal solutionSolution

   Three of the items are assets; one is a liability. The liability is the odd one.

   When the items are placed in a Balance Sheet they split cleanly:

   Item	Nature	Balance Sheet side
   Building	Fixed asset	Assets
   Machinery	Fixed asset	Assets
   Furniture	Fixed asset	Assets
   Bills Payable	Current liability	Liabilities
   …

   🔒 Start your 14-day free trial to see the full solution →
9. CBSE 2024Set ANNUAL1 markMCQ
   Q.Find the odd one:

   (a) General Reserve

   (b) Creditors

   (c) Investments

   (d) Capital

   ›Reveal solutionSolution

   Three items appear on the liabilities side of the Balance Sheet; one is an asset. The asset is the odd one.

   Sorting the four items into a Balance Sheet:

   Item	Nature	Balance Sheet side
   General Reserve	Accumulated profit (owners' fund)	Liabilities
   Creditors	Current liability	Liabilities
   Capital	Owners' fund	Liabilities
   Investments	Asset	Assets
   …

   🔒 Start your 14-day free trial to see the full solution →
10. CBSE 2023Set ANNUAL1 mark
    Q.Write the word/phrase/term, which can substitute the following sentence. Credit balance of Profit and Loss Account.

    ›Reveal solutionSolution

    A credit balance in the Profit and Loss Account means the total of the credit side (incomes/gains) is greater than the debit side (expenses/losses) — the term for it is Net Profit.

    Why: The Profit and Loss Account is a nominal account. Following the rule "debit all expenses and losses, credit all incomes and gains," a credit balance shows that gains have exceeded losses. This surplus is the firm's Net Profit …

    🔒 Start your 14-day free trial to see the full solution →
11. CBSE 2023Set ANNUAL1 mark
    Q.Calculate 12.5% P.A. depreciation on Furniture: on ₹ 2,20,000 for 1 year on ₹ 10,000 for 6 months

    ›Reveal solutionSolution

    Charge 12.5% p.a. on each amount for its own period: ₹2,20,000 for a full year and ₹10,000 for 6 months. Total depreciation = ₹28,125.

    Method: Depreciation = Value × Rate × (Months ÷ 12).

    Amount (₹)	Rate	Period	Depreciation (₹)
    2,20,000	12.5% p.a.	1 year (12/12)	27,500
    10,000	12.5% p.a.	6 months (6/12)	625

    🔒 Start your 14-day free trial to see the full solution →
12. CBSE 2022Set ANNUAL1 markMCQ
    Q.To find out Net Profit or Net Loss of the business __________ account is prepared.

    (a) Trading

    (b) Capital

    (c) Current

    (d) Profit & Loss

    ›Reveal solutionSolution

    The Profit & Loss Account is the account prepared to ascertain the Net Profit or Net Loss.

    The question tests where the net result of a business is determined among the final accounts.

    • Trading Account deals only with direct items (opening/closing stock, purchases, sales, direct expenses) and gives the Gross Profit or Gross Loss.
    • The Profit & Loss Account then takes that gross result and adjusts all indirect expenses (salaries, rent, depreciation, etc.) and indirect incomes to arrive at the Net Profit or Net Loss. …

    🔒 Start your 14-day free trial to see the full solution →