📘 Grade 12 NEB Accounts – Final Accounts MCQ (30)
Trading A/c • Profit & Loss A/c • P&L Appropriation A/c
Sponsored by Empirical Ten with The Big Jump Academy
How to use: Click an option to check your answer. You’ll instantly see ✅/❌ and a short explanation. Use Reset Quiz to try again.
Q1. Return inwards is also called:#1 Easy
✅ Sales return. Goods returned by customers reduce Sales in the Trading A/c.
Q2. Wages for factory workers are:#2 Easy
✅ Factory wages are direct costs of production; debit Trading A/c.
Q3. Carriage inward is shown in:#3 Easy
✅ Carriage inward is a direct expense to bring materials to factory; debit Trading A/c.
Q4. Carriage outward is:#4 Easy
✅ Carriage outward relates to delivery to customers; an indirect selling expense in P&L A/c.
Q5. Closing stock appears in:#5 Easy
✅ Dual effect: reduces COGS (Trading A/c credit) and is a current asset in Balance Sheet.
Q6. Gross Profit is transferred to:#6 Easy
✅ GP from Trading A/c is carried down to the credit of P&L A/c.
Q7. Which appears on Trading A/c debit side?#7 Easy
✅ Net purchases are part of direct costs; debit Trading A/c.
Q8. Bad debts are shown in:#8 Easy
✅ Bad debts are indirect losses; debit P&L and reduce Debtors in B/S when adjusted.
Q9. Provision for doubtful debts is:#9 Easy
✅ Increase in provision is charged to P&L; Debtors shown net of provision.
Q10. Which is an appropriation of profit in partnership?#10 Easy
✅ Appropriation items (e.g., interest on capital, partners’ salary/commission) are shown in P&L Appropriation A/c.
Q11. Goods withdrawn by owner for personal use should be:#11 Medium
✅ Reduces business goods; hence credit Purchases and debit Drawings (reduces capital).
Q12. Adjusted (net) purchases equal:#12 Medium
✅ Net purchases = Purchases – Purchase returns.
Q13. Given: Opening ₹40,000; Purchases ₹1,60,000; Direct exp ₹20,000; Sales ₹2,80,000; Closing ₹60,000. Gross Profit?#13 Medium
✅ COGS = 40,000 + 1,60,000 + 20,000 − 60,000 = 1,60,000. GP = 2,80,000 − 1,60,000 = ₹1,20,000.
Q14. “Salaries & wages” are generally treated as:#14 Medium
✅ Phrase indicates primarily salaries; hence indirect expense → P&L A/c.
Q15. Manager’s commission @10% on Net Profit before charging such commission; NP before = ₹1,00,000. Commission?#15 Medium
✅ Before-basis: 10% × 1,00,000 = ₹10,000 (debit P&L).
Q16. Manager’s commission @10% on Net Profit after charging such commission; NP before = ₹1,00,000. Commission?#16 Medium
✅ After-basis: Commission = 10/110 × 1,00,000 = ₹9,090.91 ≈ ₹9,091.
Q17. Interest on drawings (partnership) is shown as:#17 Medium
✅ It is a gain for the firm collected from partners; credited in Appropriation A/c; charged to partners’ capital.
Q18. Partners’ salary is:#18 Medium
✅ It is not a business expense; it is an appropriation from profit in P&L Appropriation A/c.
Q19. Which will not appear in P&L Appropriation A/c?#19 Medium
✅ Office rent is an indirect expense and belongs to P&L A/c, not Appropriation.
Q20. Abnormal loss of goods by fire (uninsured) should be transferred to:#20 Medium
✅ Abnormal items bypass Trading A/c and are charged to P&L A/c.
Q21. Which item increases Gross Profit?#21 Medium
✅ Higher closing stock lowers COGS, thus raising GP.
Q22. Prepaid insurance is treated as:#22 Medium
✅ The prepaid portion is carried forward as current asset and excluded from current period expense.
Q23. Outstanding wages at year‑end appear as:#23 Hard
✅ Being a direct expense, add to Trading A/c; also show as current liability.
Q24. Discount allowed appears in:#24 Hard
✅ Discount allowed is an indirect expense; debit P&L.
Q25. Discount received appears in:#25 Hard
✅ It’s an indirect income; credit P&L A/c.
Q26. For a sole proprietor, transfer to General Reserve is shown:#26 Hard
✅ In sole proprietorship, appropriations are made from net profit in P&L and accumulated in capital/reserve.
Q27. Under‑stated opening stock will:#27 Hard
✅ Lower opening stock → lower COGS → higher GP (overstated).
Q28. Cost of Goods Available for Sale equals:#28 Hard
✅ Goods available before sales = Opening + (Purchases − returns) + direct expenses (e.g., carriage inward) .
Q29. Net profit transferred to P&L Appropriation A/c is:#29 Hard
✅ Net profit is the balance of P&L A/c after indirect items and other incomes; this is carried to Appropriation A/c.
Q30. Order of appropriation (typical partnership):#30 Hard
✅ Usual flow: start with net profit from P&L; appropriate as per agreement; distribute balance among partners.
Want chapter-wise packs (Manufacturing A/c, Consignment, Bills of Exchange, Partnership, Company A/c)? Message us and we’ll add them in this same clickable format.
Comments
Post a Comment