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Online Tests for Accounting & Finance for Bankers

In this Question Paper given 50 questions for Accounting & Finance for Bankers, You have to complete them within 60 minutes. After clicking on FINISH TEST button a result of your test will be displayed.

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ques of 50 Last

Q - 1 .In case any sum has been written off on a reduction of capital or revaluation of assets, each balance sheet subsequent to such reduction or revaluation must show the reduced figures and date of reduction for a period of _________

1 year thereafter
2 years thereafter
3 years thereafter
5 year thereafter

Q - 2 .Companies are required to transfer certain percentage of their profit after tax to reserves, to declare dividend. The various rates of transfer based on the rates of dividend are given below in pair. Select the wrong pair.

Rate of dividend exceeds 10% but not 12.50- Transfer to reserve @ Nil%
Rate of dividend exceeds 12.50% but not 15%- Transfer to reserve @ 5%
Rate of dividend exceeds 15% but not 20%- Transfer to reserve @ 7.50%
Rate of dividend exceeds 20% - Transfer to reserve @ 10%

Q - 3 .In comparing lease & hire purchase (H P) Of the following which one is not true?

In lease the user of the asset does not retain it, while in H P he does.
In lease the user does not claim depreciation while he does in H P.
Payment of rentals is on instalment basis in both.
The users of assets in both lease & H P run the risk of obsolescence.

Q - 4 .Suspense a/c is not used in which of the following cases.

before trial balance.
after trial balance.
before final accounts.
none of the above.

Q - 5 .Choose the wrong pair from the following. The information given in the pair is pertaining to banking companies

Demand Deposits -
rebate on bills discounted - unexpired discount
Operating Expenses
Other Income - Profit on sale of investments less loss on sale of investments

Q - 6 .A, B and C are three partner sharing profits in the ratio of 3:1:1. C retires and his share is purchased by B. the new profit sharing ratio shall be-----

03:01
07:03
03:02
None of the above

Q - 7 .One of the items is a misfit in a group namely other income of a banking company. Select this item from the following

Income on Investments
Profit on sale of investments
Profit on revaluation of investments
Profit on exchange transactions

Q - 8 .On the retirement of the partner, the profits on revaluation of assets should be credited to the accounts of-----

All the partners in their profit sharing ratio
The remaining partners in their new profit sharing ratio
The remaining partners in their old profit sharing ratio
None of the above

Q - 9 .Depreciation on banks property is part of Operating Expenses. Some of the items included under this category are listed below. One of the expenses is wrongly included. Identify that item of expense.

depreciation on motor cars
depreciation on stationary and stamps
depreciation on furniture
depreciation on non-banking assets

Q - 10 .If a trader enjoys an overdraft facility, then

His passbook will show debit balance.
His cash book will show debit balance .
excess of deposits over withdrawals
None of the above

Q - 11 .A, B and C share profits as 3:2:1. C retires. Calculate the gain ratio of A and B

03:02
01:00
02:00
None of the above

Q - 12 .In sum of digits method for 5 years which of the following is the 1st year s allocation ratio

1/15
2/15
4/15
5/15

Q - 13 .Which of the following is true

Trial balance ensures arithmetical accuracy.
Trial balance errors are not located then the difference is sent to suspense a/c.
Trial balance is base for final accounts.
All of the above.

Q - 14 .Select the incorrect statement in respect of calls in advance

The company may accept from shareholders , the uncalled amount on shares even before it is fallen due
The article of association must permit such acceptance of advance call money
Interest on calls in advance can be paid but the maximum is upto 6%
The amount of calls in advance is part of the paid up share capital

Q - 15 .Advances given to a staff by a bank as a employer should be included in-----

other assets
advances
investments
none of the above

Q - 16 .Any facts, observations, occurrences are called -----

data
record
file
system

Q - 17 .L,K and P are partners. The following differences as listed at (i) to (iv) have arisen due to misunderstanding. The answer to each point is given at (a) to (d). One of the solutions is incorrect. Identify the wrong solution. (i) L used Rs.25,000 belonging to the firm and made a profit of Rs.4,000. K wants the amount to be given to the firm (ii) P used Rs.10,000 belonging to the firm and suffered a loss of Rs. 3000. He wants the firm to bear the loss (iii) L & K wishes to appoint S as new partner. P does not agree (iv) L has given loan of Rs. 50,000 to the firm, he wants interest at 6% ( there is no partnership deed)

K is right .L must pay Rs.29,000 to the firm
P is right . Firm should bear profit as well as losses.
P is right. No new partner can be admitted without the consent of all.
L is right. He is entitled for interest at 6% in the absence of partnership agreement.

Q - 18 .In the books of ABC Enterprises, a partnership firm, when Mr. C, a partner decided to resign from the firm, a revaluation of assets and liabilities was done and Revaluation account was prepared which showed the following position: At the credit side of Revaluation Account, Stock A/c Rs.25000, Premises A/c Rs.52000 and Creditors A/c Rs. 8000 were shown while at debit side of Revaluation Account Reserve for Doubtful Debts A/c. Rs.15000, As Capital A/c.Rs.20000, Bs Capital A/c. Rs.20,000 and Cs Capital A/c. Rs.20000 were shown. Accountant has interpreted the Revaluation Account as follows. One of the interpretations by him is incorrect. Select the incorrect sentence.

Stock is revalued upwardly by Rs. 25000
Creditors are revised upwardly by Rs.8000
Premises are revised upwardly by Rs.52000
A provision on debtors of Rs. 15,000 is made for doubtful debts

Q - 19 .Freight expenses for moving new machinery to factory is

Revenue expenses
Deferred revenue expenditure
Capital expenditure
None of the above

Q - 20 .Which of the following is not a deferred revenue expenditure

Preliminary expenses for setting up a company.
Amount raised through Rights issue.
Huge sales promotion expenditure in launch of new product
Cost of preparing project report

Q - 21 .Identify a pair which is mismatch from the following pairs in respect of Company Accounts

Discount on issue of shares Profit and Loss Account
Bill discounted contingent liabilities
Interest accrued and due on debentures Secured Loans
Mortgage Loan Secured Loans

Q - 22 .Income for the year = I, Outstanding Income for previous year = Id, Outstanding Income of current year = Idi, then Receipts for the year is

I - Idi + Id
I + Idi - Id
I + Idi + Id
None of the above.

Q - 23 .While preparing the final accounts of the company, the adjustments [(i) to (iv)] are to be made by passing necessary entries. One of the entries passed is wrong entry. Select the wrong entry.(i) Provide dividend 5% of paid up share capital (Share capital of Rs. 5,00,000 consisting of shares of Rs. 10 each fully paid) (ii) Insurance for unexpired period is Rs.2000 (iii) A provision of Rs. 25,000 is to be made for income tax (iv) a provision of Rs. 5000 is to be made for doubtful debts

Debit Dividend by Rs.25000 & Credit Bank by Rs.25000
Prepaid Insurance by Rs.2000 & Insurance by Rs.2000
Debit Profit & Loss Account by Rs.25,000 & Credit Provision for Tax by Rs.25,000
Debit Profit & Loss by Rs.5,000 & Credit Provision for doubtful debts by Rs.5,000

Q - 24 .If the net worth of the business is Rs.500, fixed assets are Rs. 500, current assets Rs.300, investments Rs.300, current liabilities Rs. Nil, what is the amount of claim to outsiders?

Rs. Nil
Rs. 1100
Rs.500
Rs.600

Q - 25 .The provisional requirement for standard asset is-----

0.40%(revised) of total outstanding
10%(revised) of total outstanding
40%(revised) of total outstanding
100%(revised) of total outstanding

Q - 26 .In banking company, matured term deposit to be shown under-----

demand deposits
saving bank deposits
term deposits
other liabilities and provisions

Q - 27 .Due to heavy flooding a truck carrying consignment goods sinks. This loss is called

contingent loss
Nominal loss
Abnormal loss
Casual loss

Q - 28 .Select the false statement in respect of assets

a banking company is allowed to acquire assets for its own use
a banking company is allowed to grant loans against the security of assets belonging to its customers
a banking company is allowed to take possession of such assets in case of default committed by the borrower
a banking company is not allowed to sale the assets against the security of which it has granted loans

Q - 29 .If Rs.10 share has been issued at a premium of Rs.5, on which entire amount has been called up, has been forfeited for non payme

Rs.15
Rs.10
Rs.4
Rs.6

Q - 30 .The two portion of each pair relating to admission of a partner has got some relationship. However one of the pairs is mismatch and has no relationship. Select this pair from the following

Admission of a partner - gain ratio
Reserves & surplus - Old partners
Goodwill - new partner
Revaluation of assets & liabilities - Profit & Loss adjustment account

Q - 31 .Identify a pair which is mismatch from the following pairs in respect of Company Accounts

Miscellaneous Expenditure Preliminary Expenses
Contingent Liabilities footnote to balance sheet
Debentures Unsecured Loans
Outstanding Expenses Current Liabilities

Q - 32 .Select the false statement in respect of banking

A company accepting deposits for the purpose of lending or investment is a banking company
A manufacturing company accepting deposits from the public and some portion of it is lending to its employees as home loans is a banking company
A company besides accepting deposits and lending is dealing in goods in connection with the realisation of a security is a banking company
A company besides accepting deposits and lending is in the business of collections or negotiating bills of exchange is a banking company.

Q - 33 .Choose the correct treatment for premium paid on Joint Life Policy when premium paid is treated as an expense.

Premium amount is debited to P & L account every year and when claim becomes due then to be shared by all partners
Every year amount debited to Joint Life Policy Account and balance is shown on asset side at surrender value . The difference between surrender value and premium paid is written off to Profit and Loss account
Joint Life Policy and Joint Life reserve Account are adjusted to bring them down to surrender value of policy.
None of the above.

Q - 34 .Money received in advance from shareholder before it is actually called up by the company is -----

Debited to Calls in arrears Account
Debited to Calls in Advance Account
Credited to Calls in Advance Account
Credited to Share Capital Account

Q - 35 .A new company cannot issue shares-----

at par
at discount
at premium
none of the above

Q - 36 .Investments, Advances, Fixed Assets and other Assets are part of Schedule Nos.--respectively

6,7,8,9
7,8,9,10
8,9,10,11
9,10,11,12

Q - 37 .Which of the following is true for leasing and hire purchase

Lessor and vendor can claim depreciation.
Lessor and hirer can claim depreciation.
Lessee and hirer can claim depreciation.
Lessee and vendor can claim depreciation.

Q - 38 .Select the incorrect statement in respect of utilization of share premium

it is used for the purpose of buy back of shares
it used for payment of dividend in case of inadequacy of profits
it is used for writing off preliminary expenses
it is used for issue of fully paid bonus shares

Q - 39 .One of the pairs given below is wrong. Select the wrong pair.

Outstanding expenses - Nominal account
Profit and Loss Account (Dr. balance) Application of funds
Net worth less reserves & surplus - Capital
Balance sheet - Financial position

Q - 40 .Choose the incorrect statement in case of dissolution of partnership from the following statements

On the dissolution of the firm , first creditors like wages outstanding etc. will have to be paid
Goodwill will be raised in the books when a firm is dissolved
The loan from the spouse of a partner is treated just like a loan from outside parties
After the books are closed, no account will show any balance.

Q - 41 .The financial statement of bank consists of ________ schedules

18 Schedules
16 Schedules
17 Schedules
Schedules

Q - 42 .Select the True statement from the following

Interest on drawing is an income to the partnership firm
Joint Venture is a permanent partnership firm
Goodwill is a tangible asset of the firm
In the absence of partnership agreement , partners share profit and loss in proportion to the capital contributed by the partners.

Q - 43 .Mr. X was issued 100 shares of Rs.10 each. He failed to pay call money of Rs. 5 per share. The shares were forfeited and re-issued to Mr. Y at Rs.9. When the entry recording the re-issue of shares was passed in all, four accounts were affected. The debit and credit effect of these four accounts is given below. One of the accounts is given wrong effect. Select that account from the following.

Debit bank account by Rs.900
Debit forfeited shares by Rs.500
Credit share capital by Rs.1000
Credit forfeited shares by Rs.400

Q - 44 .Which of the following is true

Total lease rent = cost of asset - total finance income + residual value
Total finance income = total lease rent cost of asset + residual value
Total finance income = cost of asset total lease rent + residual value
Cost of the asset = total lease rent + residual value + total finance income

Q - 45 .While preparing the final accounts of the company, the adjustments [(i) to (iv)] are to be made by passing necessary entries. One of the entries passed is wrong entry. Select the wrong entry.(i) Depreciate plant ,WDV of which is Rs.3,30,000 at 15% (ii) Write off Rs.5,000 from Preliminary Expenses (iii) Half years debenture interest due (12% debentures of Rs. 3,00,000) (iv) a claim of Rs. 25,000 for workmens compensation is disputed by the company.

Debit Depreciation on plant by Rs.49,500 credit plant by 49,500 AND Debit Profit & Loss Account by 49,500 and Credit Depreciation on plant by 49,500
Debit Profit and Loss Account by Rs.5,000 and Credit Preliminary Expenses
Debit Debenture Interest by Rs.18,000 & Outstanding Liability for Deb. Interest by 18,000 AND Debit Profit and Loss Account by Rs.18,000 and Credit Debenture Interest by Rs.18000
Debit Wages by Rs.25,000 & Credit Outstanding Liability for Workers compensation AND Debit Profit and Loss Account by Rs.25,000 and Credit Wages by Rs.25,000

Q - 46 .Receipts and payments statement shows

Only revenue receipts and payments during a year.
Only capital receipts & payments during a year.
Both capital and revenue receipts during a year.
Cash Only transactions.

Q - 47 .Select the incorrect sentence

Whenever, there is no profit or inadequate profit, dividend cannot be declared
The right to claim dividend lapses when there is no profit in case of cumulative preference shares
When the company makes profit , arrears of preference dividend are cleared first
The Act prohibits the issue of any preference shares which are irredeemable

Q - 48 .The investment under held to maturity should not exceed _____ of banks total investment

25%
75%
5%
None of the above

Q - 49 .The scheduled banks are required by RBI to transfer at least ______ of their disclosed profit after adjustment/provision towards bonus to staff

20%
15%
10%
None of the above

Q - 50 .The name of the accounts with the coverage of various items in building that account is given below. One of the items covered in on of the accounts is wrong. Select this account

Closing balance of provisions held towards NPA -
Interest Earned - interest on advances plus income on investments plus interest on deposit with RBI plus income earned by way of dividends from subsidiaries plus discount on bills less unexpired discount
Reserves & surplus - Opening balance plus additions during the year less deductions during the year
Term deposits - from banks and from Others

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Online Tests for Accounting & Finance for Bankers

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