Closing stock is valued at ______.

(a)

Cost price

(b)

Market price

(c)

Cost price or market price whichever is higher

(d)

Cost price or net realisable value whichever is lower

Return inwards are deducted from ______

(a)

Purchase

(b)

Sales

(c)

Returns outward

(d)

Gross profit

The Trial balance as on 31-03-2016 shows. Sundry debtors Rs.25,000. Write off Rs.1,000 as bad debts. The amount of provision for bad and doubtful debts at 5% will be ______

(a)

Rs.1,300

(b)

Rs.1,200

(c)

Rs.1,250

(d)

Rs.1,050

Prepaid insurance is _______

(a)

an asset

(b)

a liability

(c)

an income

(d)

an expense

Interest on drawings is credited to ______ Account.

(a)

Trading

(b)

Profit and loss

(c)

Liabilities

(d)

Assets

Expenses which have been incurred in the accounting period but not paid till the end of the accounting period are called______.

(a)

Outstanding expenses

(b)

Prepaid expenses

(c)

Accrued income

(d)

Income received in advance

The trial balance shows Investment 3,00,000 at 10% on 01-01-2017. Income received 20,000. Accrued Interest on investment, yet to be received is Rs._________as on31-12-2018.

(a)

30,000

(b)

10,000

(c)

50,000

(d)

25,000

Debts which cannot be recovered or irrecoverable are called _________.

(a)

Bad debts 

(b)

Depreciation

(c)

Closing stock

(d)

Capital

If closing stock is already adjusted, adjusted purchase account and ____________ stock will appear in trial balance

(a)

Opening

(b)

Closing

(c)

Average

(d)

None of these

Income tax paid by the business for the proprietor is treated as _________

(a)

Expense

(b)

Profit and Loss A/c

(c)

Drawings

(d)

None of these