JAIIB QUESTIONS ACCOUNTING & FINANCE MODULE D part 1 JAIIB SPECIMEN QUESTIONS ACCOUNTING & FINANCE FOR BANKERS MODULE D 1. Select from the following, a statement which speaks about liabilities of an entity. (a) The liabilities consist of claims of the owners (b) The liabilities consist of claims of the owners and outsiders (c) The liabilities consist of claims of the outsiders (d) None of the above 2. 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? (a) Rs. Nil (b) Rs. 1100 (c) Rs.500 (d) Rs .600 . 3. Select from the following a sentence which is wrong (a) If assets increase and liabilities do not , the capital will increase (b) If assets increase and liabilities also increase by same sum , the capital will remain same (c) A reduction in the amount of assets will amount to equivalent reduction in the net worth (d) An increase in the amount of liabilities with no corresponding increase in liabilities will increase the amount of capital 4. The firm sells goods on credit for Rs.50000, the cost of the goods sold is Rs.30000.The effect of the transaction is that, the capital of the firm----- (a) increases by Rs.50000 (b) reduces by Rs.40000 (c) increases by Rs. 20000 (d) reduces by Rs. 20000 5. Mr.Ghatge commenced his business on 1 st April, 2006 with Capital of Rs.1,00,000. He did good business during the year and earned handsome profit. At the end of 31 st March, 2007, his financial position was: Fixed Assets Rs.1, 20,000 and bank balance of Rs.33000 and Creditors Rs. 17000. What was his net profit for the year 05-06? (a) Rs. 36000 (b) Rs.70000
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JAIIB QUESTIONS ACCOUNTING & FINANCE MODULE D part 1 JAIIB SPECIMEN QUESTIONSACCOUNTING & FINANCE FOR BANKERSMODULE D
1. Select from the following, a statement which speaks about liabilities of an entity.(a) The liabilities consist of claims of the owners(b) The liabilities consist of claims of the owners and outsiders(c) The liabilities consist of claims of the outsiders(d) None of the above2. 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?(a) Rs. Nil(b) Rs. 1100(c) Rs.500(d) Rs.600.3. Select from the following a sentence which is wrong(a) If assets increase and liabilities do not , the capital will increase(b) If assets increase and liabilities also increase by same sum , the capital will remain same(c) A reduction in the amount of assets will amount to equivalent reduction in the net worth (d) An increase in the amount of liabilities with no corresponding increase in liabilities will increase the amount of capital4. The firm sells goods on credit for Rs.50000, the cost of the goods sold is Rs.30000.The effect of the transaction is that, the capital of the firm-----(a) increases by Rs.50000(b) reduces by Rs.40000(c) increases by Rs. 20000(d) reduces by Rs. 200005. Mr.Ghatge commenced his business on 1st April, 2006 with Capital of Rs.1,00,000. He did good business during the year and earned handsome profit. At the end of 31st March, 2007, his financial position was: Fixed Assets Rs.1, 20,000 and bank balance of Rs.33000 and Creditors Rs. 17000. What was his net profit for the year 05-06?(a) Rs. 36000(b) Rs.70000(c) Rs.53000(d) None of the above. 6. One of the pairs given below is wrong. Select the wrong pair.(a) Outstanding expenses - Nominal account(b) Profit and Loss Account (Dr. balance) Application of funds(c) Net worth less reserves & surplus - Capital(d) Balance sheet - Financial position
7. Choose the sentence which speak about illegal association(a) The unregistered association of 10 persons to do banking business(b) The unregistered association of 50 persons to do non banking business(c) The unregistered association of 20 persons to do business other than banking (d) The unregistered association of 10 persons to do business other than banking 8. From the following ,find a sentence which is false in respect of partnership(a) If the partnership is following the Fixed Capital Account Method salary payable to a partner is credited to the partners current account(b) Drawings made by partners are never entered in the Profit and Loss Appropriation Account. (c) In the Fluctuating Capital Account Method the balance in the capital account always remains the same(d) The capital account of a partner is required to be opened in both the Fixed Capital Account Method and Fluctuating Capital Account Method
9. From the account given below, select the account which is wrongly included in Profit & Loss Appropriation Account at the debit side a. Drawings Accountb. Partners Salary Accountc. Interest on Loan Accountd. Commission to Partners Account10. The average net profits expected are Rs.108000 per annum before charging remuneration of Rs. 18000 to partner . The capital employed in the business is Rs.6,00,000. The rate of return expected on capital employed of a firm is 10%. What is the value of goodwill on the basis of two years purchase of super profits.a. Rs.108,000b. Rs.60,000c. Rs.78,000d. None of the above11. A and B are two partners in a firm sharing profits and losses as 2:1. they admitted C as a partner with 25% share in the profits of the firm. Hence , the new profit sharing ratio , after admission of C would be -----(a) 15:15:10(b) 20:10:10(c) 3:1:1(d) None of the above12. Mr. Q and Mr. R were partners of a firm sharing profit and losses in the ratio of 3:2. They take S into partnership. It was agreed that S will pay Rs.1,00,000 as his share of goodwill which will be retained in business and also bring Rs.3,00,000 as capital for one fourth share in the future profits. The book value of the stock was 41,000 but was to be revalued at Rs.50,000, Accountant has passed following entries, but Mr. Q feels that one of the entry is wrong. Select the wrong entry from the following.(a) Debit cash and credit Goodwill for Rs.1,00,000(b) Debit cash and credit Ss Capital for Rs.3,00,000(c) Debit Goodwill for Rs.1,00,000 and credit Qs Capital by Rs. 60000 & Rs Capital by Rs. 40,000(d) Debit Stock and credit Profit & Loss Adjustment A/c by Rs.9,00013. Read the following four journal entries which are passed to consider revaluation of assets and liabilities at the time of admission of a partner. One of the journal entries is wrong, choose the entry which is wrong.(a) For increase in the value of assets-Debit Asset Account and Credit Revaluation Account.(b) For decrease in the value of liabilities- Debit Liabilities Account and Credit Revaluation Account.(c) For Profit on revaluation of assets and liabilities Debit Old Partners Capital Account in old profit sharing ratio and Credit Revaluation Account(d) For decrease in the value of assets -Debit Revaluation Account and Credit Asset Account 14. Any facts, observations, occurrences are called -----(a) data(b) record(c) file(d) system15. 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.(a) Stock is revalued upwardly by Rs. 25000(b) Creditors are revised upwardly by Rs.8000(c) Premises are revised upwardly by Rs.52000(d) A provision on debtors of Rs. 15,000 is made for doubtful debts 16. Select the True statement from the following(a) Interest on drawing is an income to the partnership firm(b) Joint Venture is a permanent partnership firm(c) Goodwill is a tangible asset of the firm(d) In the absence of partnership agreement , partners share profit and loss in proportion to the capital contributed by the partners.17. Select the incorrect statement in respect of companies.(a) A member of a company can enter into contract with a company(b) It is compulsory to register a joint stock company(c) If all but one member of a private company becomes insolvent ,it affects the existence of the organisation(d) Shareholders are not liable for the acts of the company18. Select the incorrect sentence(a) Whenever, there is no profit or inadequate profit, dividend cannot be declared(b) The right to claim dividend lapses when there is no profit in case of cumulative preference shares(c) When the company makes profit , arrears of preference dividend are cleared first(d) The Act prohibits the issue of any preference shares which are irredeemable19. Select the incorrect statement(a) Authorized capital is the capital with which the company is registered(b) Issued capital is equal to its authorized capital(c) Authorized capital, issued capital, subscribed capital, called up capital and paid up capital cannot be same (d) The amount which the company has asked its shareholders to pay is called up capital of the company.20. Following are the journal during the process of application to allotment stage . One of the entries is wrong. Select the wrong entry.(a) Debit bank account and credit share application account ( when application money is received)(b) Debit share application account and credit share capital account (application transferred to share capital account)(c) Debit share capital and credit share allotment account ( for recording allotment money being fallen due )(d) Debit bank account and credit share allotment account ( for receipt of allotment money)
21. Select the incorrect statement in respect of calls in advance
(a) The company may accept from shareholders , the uncalled amount on shares even before it is fallen due(b) The article of association must permit such acceptance of advance call money(c) Interest on calls in advance can be paid but the maximum is upto 6%(d) The amount of calls in advance is part of the paid up share capital 22. Select the incorrect statement in respect of utilization of share premium(a) it is used for the purpose of buy back of shares(b) it used for payment of dividend in case of inadequacy of profits(c) it is used for writing off preliminary expenses(d) it is used for issue of fully paid bonus shares23. 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.(a) Debit bank account by Rs.900(b) Debit forfeited shares by Rs.500(c) Credit share capital by Rs.1000(d) Credit forfeited shares by Rs.40024. DT Ltd. issued shares of Rs.10 each at 10 % premium, payable on application Rs.2, on allotment Rs.3 (including premium), on first call Rs.2 and on final call Rs.4. One of the shareholders, applied for 100 shares but fail to pay allotment and first call money. At this stage, the said shares were forfeited. Select the account which was wrongly credited.(a) Credit Forfeited shares Account by Rs.200(b) Credit Share allotment Account by Rs.200(c) Credit share premium Account by Rs.100(d) Credit Share first call Account by Rs.20025. Select the source which is not valid for issue of bonus shares(a) Share premium (b) Revaluation reserve created by revaluation of fixed assets(c) Capital reserve (d) Capital redemption reserve26. The liability side of the balance sheet of ABC International Ltd. is showing following position: Paid up share capital Rs.25 Lakh ( 25,000 shares of Rs.100 each fully paid up)Share premium Rs.5 Lakh, Capital Reserve Rs. 3 Lakh, General Reserve Rs. 15 Lakh and Profit & Loss account Rs. 15 Lakh .It was decided to use minimum free reserve for issue of 1:1 bonus shares.. The accounts and the amount with which the account is debited are given below in sets. One of the set is correct. Select the same.
(a) Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 1 Lakh), General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 4 Lakh(b) Share Premium Account (Rs. Nil Lakh), Capital Reserve Account ( Rs. Nil Lakh), General Reserve Account (10 Lakh) & Profit & Loss Account by Rs. 15 Lakh(c) Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 3 Lakh), General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 2 Lakh(d) Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 1 Lakh), General Reserve Account (4 Lakh) & Profit & Loss Account by Rs. 15 Lakh.
27. Select the incorrect statement in case of Share Capital and Reserves and Surplus as shown in the balance sheet.(a) Under share capital, the following order is maintained: Authorised capital, issued capital, subscribed capital(b) The called up amount per share is indicated and in the amount column total amount i.e. number of shares multiplied by amount called up per share is shown(c) The amount of unpaid calls is deducted from (b) above(d) The amount of forfeited shares account is shown under Reserves & surplus
28. Select the incorrect statement in respect of form of balance sheet of companies(Liabilities side).(a) sinking fund is shown under unsecured loans(b) Loans and Advances from banks are grouped under the head Secured Loans(c) Unclaimed Dividend is grouped under the head current liabilities(d) Proposed dividend is grouped under provisions.
29. Select the incorrect statement in respect of form of balance sheet of companies ( Asset side).(a) Live Stock is grouped under the head current Asset(b) Balance of unutilized monies raised by issue is grouped under the head Investments(c) Interest paid out of capital during construction is grouped under the head Miscellaneous Expenditure(d) Vehicles are grouped under the head Fixed Asset
30. 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 -----(a) 1 year thereafter(b) 2 years thereafter(c) 3 years thereafter(d) 5 year thereafter31. One of the accounts is wrongly grouped under the head Investments while preparing the balance sheet of the company. Single out the wrong account.(a) Investments in government or trust securities(b) Investments in shares ,debentures or bonds(c) Immovable properties(d) Interest accrued on investments
32. One of the accounts is wrongly debited to Profit and Loss Appropriation A/c of a company. Name the wrong account debited
(a) Interim dividend(b) Proposed dividend(c) Provision for tax(d) Capital redemption reserve33. Select the false statement in respect of assets(a) a banking company is allowed to acquire assets for its own use(b) a banking company is allowed to grant loans against the security of assets belonging to its customers(c) a banking company is allowed to take possession of such assets in case of default committed by the borrower(d) a banking company is not allowed to sale the assets against the security of which it has granted loans
34. The scheduled banks are required by RBI to transfer at least ------ of their disclosed profit after adjustment/provision towards bonus to staff a. 20%b. 15%c. 10%d. None of the above35. Select the incorrect statement in respect of financial Statements of Banks(a) a banking company is not required to prepare financial statements in accordance with Schedule VI of the Companies Act , 1956. (b) The Act prescribes special forms of balance sheet and profit and loss account for the preparation of its final accounts(c) These are set out in form A and form B of the first schedule to the Banking regulation Act, 1949(d) Form A gives format of a balance sheet and form B gives the format of a profit and loss account36. The financial statement of bank consists of ------- schedules(a) 18 Schedules(b) 16 Schedules(c) 17 Schedules(d) Schedules37. Investments, Advances, Fixed Assets and other Assets are part of Schedule Nos.--respectivelya. 6,7,8,9b. 7,8,9,10c. 8,9,10,11d. 9,10,11,1238. Liability for partially paid investments in respect of banking companies is grouped under the head-----(a) Investments(b) Other assets(c) Other liabilities and provisions(d) Contingent liabilities 39. One of the items is a misfit in a group namely other income of a banking company. Select this item from the following (a) Income on Investments(b) Profit on sale of investments(c) Profit on revaluation of investments(d) Profit on exchange transactions 40. In banking company, matured term deposit to be shown under-----(a) demand deposits(b) saving bank deposits(c) term deposits(d) other liabilities and provisions
PRINCIPLES OF BANKING MODULE A & B cont...
26) The apex institution which handles refinance for agriculture and rural development is called:a) RBIb)SIDBIc)NABARDd)SEBI( c )
27) Long Form Audit Report (LFAR) is prepared and submitted bya) RBI inspectorsb) Internal inspectorsc) Statutory auditors( c )d)Concurrent auditors
28) As per FIMMDAs guidelines, the Mid-Office is responsible for:a) Dealing activitiesb) Risk Managementc) Reconciliationd) Confirmation of deals(b)
29) Interest is calculated on actual/365 days basis in respect of the following products, except one :a) Call Moneyb) Notice Moneyc) Term Moneyd) GOI dated securities(d)
30) Which was the first Mutual Fund started in India:a) SBI Mutual Fundb) Kotak Pioneer Mutual Fundc) Indian Bank Mutual Fundd) None of the above(d)
31) The regulator for Mutual Funds in India is:a) FIMMDAb) AMFIc) RBId) SEBI(d)
32) FIMMDAs general principles and procedures are applicable to:a) Fixed Income Marketsb) Money Marketsc) Derivatives Marketsd) All of the above(d)
33) Your banks customer XYZ Ltd, enjoys a CC limit of Rs.1,00,000.00 The CC account shows a credit balance of Rs,10,205.00. The relationship between your bank and XYZ Ltd is:a) Debtor/Creditorb) Creditor/Debtorc) Bailor/Baileed) Bailee/Bailor(a)
34) The right of set-off is:a) Customers Rightb) Customers Obligationc) Bankers Rightd) Bankers Discretion(d)
35)Which of the following forms of business are permissible under BR Act:a) Borrowing b) Issuance of Letters of Creditc) Buying and selling of bulliond) All of the above(d)
36) A Co-Operative Bank operating in different States are regulated by:a) State Co-Operative Societies Actb) Banking Regulation Actc) Multi Unit Co-Operative Societies Actd) Banking Laws (applicable to Co-Operative Societies)( c )
37) In respect of Regional Rural Banks, the share holding pattern is:a) Central Government 50%,State Government 35%,Sponsoring Bank 15%b) Central Government 50%,State Government 15%,Sponsoring Bank 35%b) Central Government 15%,State Government 35%,Sponsoring Bank 50%b) Central Government 35%,State Government 50%,Sponsoring Bank 15%(b)38) Law of limitation is not applicable in respect of :a) Advance against pledge of sharesb) CC granted against hypothecation of inventoryc) Term loan secured by mortgage of Plant & Machineryd) Bank Term Deposit(d)
39) A bank in India, wants to undertake capital market activities, it should:a) Obtain special license from AMFIb) Obtain special license from FIMMDA c) Both a and b d) Register with SEBI(d)
40) FIMMDA stands for: a) Foreign Exchange Markets and Derivative Markets b) Fixed Income Markets Money Markets and Derivatives Markets c) Fixed Income Markets and Derivatives Markets d) None of the above(b)
41) The Capital Adequacy Ratio is : a) 6% b) 8% c) 9% d) 10%( c )
42) Except one of the following others are known as Non Fund based facilities:a) Letters of Creditb) Bank Guaranteesc) Co-acceptance of Billsd) Trust Receipt(d)
43) FIMMDAs guidelines cover the following products, except one:a) Call Moneyb) Cross Currency Interest Rate swapsc) Commercial Paperd) Certificate of Deposit(b)
44) Except one of the following others are part of Public Sector Banks:a) State Bank of Hyderabadb) Central Bank of Indiac) Regional Rural Bank, sponsored by a nationalized bankd) HDFC Bank(d)
45) A banker is expected to honour the cheques within the specified banking hours as per Section of NI Act,1881a) 22b) 25c) 31d) 65(d)PRINCIPLES OF BANKING MODULE A & B
1) Reserve Bank of Indias functions are classified into:a) Supervisory & Regulatory b) Promotional & Developmentalc) Refinance Activitiesd) All of the above(d)
2) Minimum Bank Rate is:a) 3%b) 4%c) 5%d) None(d)
3) Sec ---- of RBI Act,1934 gives sole power to RBI to issue currency notesa) 10b) 18c) 22d) 26( c )
4) KYC meansa) Know Your Customer very wellb) Know Your existing Customer very wellc) Know Your prospective Customer very welld) Satisfy yourselves about the customers identity and activities. (d)
5) In a Garnishee Order, the banker on whom garnishee order served is:a) Judgement Debtors Creditorb) Judgement Creditors Creditorc) Judgement Creditors Debtord) Judgement Debtors Debtor(d)
6) Sec 131 of NI Act,1881 extends protection to thea) Paying Bankerb) Collecting Bankerc) Advising Bankerd) Issuing Banker(b)
7) Hypothecation is applicable in the case of a) Movable goodsb) Immovable propertyc) Book debtsd) Corporate guarantee(a)
8) A cheque is dated 12/05/05.the due date is:a) 12/08/05b) 14/09/05c) 12/11/05d) None (d)
9) Charge created on LIC Policy is:a) Hypothecationb) Pledgec) Assignmentd) Mortgage( c )
10) Your bank grants a working capital finance to ABC & Co, a partnership firm, against hypothecation of inventory. The charge is to be registered with Registrar of Companies withina) 30 days from the date of advanceb) 30 days from the date of hypothecation agreementc) 30 days from the date of sanction of loand) None(d)
11) Which one of the following is not barred by law of limitation? a) Pledge b) Hypothecation c) Bankers lien d) Guarantee ( c )
12) The term Credit Management covers a) Capital adequacy norms b) Risk management including Asset/Liability management c) Credit appraisal decision and review of loans & advances d) All of the above (d)
13) Banks Assets are classified in to standard assets, substandard assets doubtful assets and loss assets, based on the recommendations of -------------------- Committee a) Rangarajan b) Narasimham c) Ghosh d) Tandon(b)
14) The time taken to convert cash into raw materials, semi finished goods, finished goods and into cash , is known asa) Trade cycleb) Cash cyclec) Operating cycled) Revolving cycle( c )
15) A company which pools money from investors and invests in stocks,bonds, shares is calleda) A bankb) An insurance companyc) Bancassuranced) Mutual Fund(d)16) Bancassurance isa)An insurance scheme to insure bank depositsb) An insurance scheme to insure bank advancesc) A composite financial service offering both bank and insurance productsd) A bank deposit scheme exclusively for employees of insurance companies( c )
17) John & James are friends aged 14 & 15 respectively. They want to open a joint account in your bank. You willa) Allow them to open a joint account to be operated jointlyb) Allow them to open a joint account with operating instructions Either or Survivor c) Allow them to open a joint account with operating instructions Former or Survivord) Allow them to open a joint account with operating instructions Any one or Survivor(a)
18) Mr.Atmaram as director of a Ltd company expired. Bank received a cheque signed by Mr.Atmaram as director of the Ltd company. The banka) Can honour the cheque only after obtaining confirmation from other directorsb) Can honour the chequec) Cannot hounour the chequed) The company should issue a stop payment instructions to the bank (b)19) Tele banking service is based on a) Virtual Bankingb) Online Bankingc) Voice processingd) Core Banking ( c )
20) In a securitisation deal, the role of a Special Purpose Vehicle (SPV) isa) To acquire large Non Performing Loans (NPA)b) To acquire such loans from a bank or financial institutionc) To acquire such loans for a transfer price, with or without recoursed) To manage the acquired loans for the purpose of realization or holds them as investment till maturity(d)
21)Securitisation is a process of acquiring the loans classified asa) Bookdebtsb) Performing debtsc) Bad debtsd) Non performing debts (d)
22)The minimum percentage of Priority Sector advances to be maintained by foreign banks in Indiaa) 40%b) 18%c) 32%d) 60%( c )
23) Loan for fish rearing is covered under Prirority Sector as ----------- advancesa) Direct Agricultureb) Indirect Agriculturec) Self Employment Scheme d) Allied to indirect Agriculture(a)
24) Cash Budget is a statement ofa) Cash-Non cash fundsb) Cash receipt and Cash paymentsc) Another name for cash flowd) None(b)
25) In banks parlance credit risk in lending isa) Default of the banker to maintain CRRb) Default of the banker to maintain SLRc) Default of the banker to release credit to the customerd) Default of the customer to repay the loan(d)JAIIB QUESTIONS ACCOUNTING & FINANCE MODULE D_cont...
58. 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(a) Admission of a partner - gain ratio(b) Reserves & surplus - Old partners(c) Goodwill - new partner(d) Revaluation of assets & liabilities - Profit & Loss adjustment account59. The two portion of each pair relating to retirement of a partner has got some relationship. However one of the pair is mismatch and has no relationship. Select this pair from the following(a) Retirement - voluntary action(b) Gain - retiring partner(c) Share of goodwill - borne by continuing partners(d) Reserve & surplus - belong to all partners60. If the partners capital accounts are fixed, where will you record (either debit side or credit side of which account ) the following transactions (i) Salary payable to partner (ii) Fresh capital introduced by a partner (iii) Drawing made by a partner (iv) Share of profit earned by a partner. The effect to one of the journal entries is wrongly given. Identify that account from the following.(a) Debit side of partners current account(b) Credit side of partners capital account(c) Debit side of partners current account(d) Credit side of partners current account61. 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)(a) K is right .L must pay Rs.29,000 to the firm(b) P is right . Firm should bear profit as well as losses.(c) P is right. No new partner can be admitted without the consent of all. (d) L is right. He is entitled for interest at 6% in the absence of partnership agreement.62. Below are some statements about partnership. One of them is correct, identify that statement.(a) Partnership arises from reputation(b) A partnership is formed only for a legal business(c) The liability of partners is limited(d) The business of the firm is conducted by two partners63. O and P are two partners sharing profits in the ratio of 7:3. They admit Q into partnership as a partner from 1st April 2006 on 3/7th share in the profit. What is the new profit sharing ratio(a) 14: 6 : 15(b) 7: 3: 3(c) 2: 2: 3(d) None of the above.64. A firm earns Rs.10,000 as its normal profits. The rate of normal return being 10%. The assets of the firm amount to Rs.72,000 and liabilities to Rs.24,000. Find out the value of goodwill.(a) Rs.52,000(b) Rs.1,00,000(c) Rs.28,000(d) Nil65. When a new partner gives cash for goodwill, the amount is credited to-----(a) Goodwill account(b) Capital account of new partner(c) Cash account(d) None of the above66. If the goodwill account is raised for Rs.50,000, the amount is debited to-----(a) The capital accounts of partners(b) Goodwill account(c) Cash account(d) None of the above67. A and B sharing profits and losses in the ratio of 2:1. C is admitted as partner giving him share. The new profit sharing ratio will be-----(a) 2:1:1(b) 4: 4:3(c) 3: 3: 2(d) None of the above68. If the adjustment in the values of assets at the time of the admission of a partner shows a profit, it should be credited to the capital accounts of-----(a) The old partners in their new profit-sharing ratio(b) All partners in their new profit sharing ratio(c) The old partners in their old profit sharing ratio(d) None of the above69. 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-----(a) 3:1(b) 7:3(c) 3:2(d) None of the above.70. On the retirement of the partner, the profits on revaluation of assets should be credited to the accounts of-----(a) All the partners in their profit sharing ratio(b) The remaining partners in their new profit sharing ratio(c) The remaining partners in their old profit sharing ratio(d) None of the above71. A, B and C share profits as 3:2:1. C retires. Calculate the gain ratio of A and B(a) 3:2(b) 1:1(c) 2:1(d) None of the above.72. Choose the incorrect statement in case of dissolution of partnership from the following statements(a) On the dissolution of the firm , first creditors like wages outstanding etc. will have to be paid(b) Goodwill will be raised in the books when a firm is dissolved(c) The loan from the spouse of a partner is treated just like a loan from outside parties(d) After the books are closed, no account will show any balance.73. Choose the incorrect statement from the following statement which are pertaining to company accounts(a) The company is an artificial person(b) A member of a company may bind the company by its actions.(c) The shareholders are not liable for the acts of the company(d) The premium received on shares may be distributed among shareholders.76. A new company cannot issue shares-----(a) at par(b) at discount(c) at premium(d) none of the above77. A company wishes to pay dividend on shares. State which of the following may be used for the purpose.(a) Premium of shares(b) Profit on re-issue of forfeited shares(c) General Reserve(d) None of the above 78. 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 payment of Rs. 4, the Share Capital Account will be debited by----- (a) Rs.15(b) Rs.10(c) Rs.4(d) Rs.6 .79. Money received in advance from shareholder before it is actually called up by the company is -----(a) Debited to Calls in arrears Account(b) Debited to Calls in Advance Account(c) Credited to Calls in Advance Account(d) Credited to Share Capital Account80. If a share of Rs.10 issued at a premium of Rs.1 on which Rs.9 ( including premium) have been called and Rs.7( including premium) paid is forfeited, the capital account should be debited by-----(a) Rs.8(b) Rs.10(c) Rs.9(d) Rs.781. Dividend are usually paid on(a) Called up capital(b) Paid up capital(c) Authorised capital(d) None of the above82. Preliminary Expenses is-----(a) Fictitious Asset(b) Current liability(c) Current asset(d) None of the above83. A and B are partners sharing profits in the ratio of 3:2. C is admitted as a partner. The new profit sharing ratio among A, B and C is 4:3:2. Find out the sacrificing ratio(a) 7:3(b) 4:3(c) 1:1(d) None of the above.84. Choose the correct treatment for premium paid on Joint Life Policy when premium paid is treated as an expense.(a) Premium amount is debited to P & L account every year and when claim becomes due then to be shared by all partners(b) 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(c) Joint Life Policy and Joint Life reserve Account are adjusted to bring them down to surrender value of policy.(d) None of the above.JAIIB QUESTIONS ACCOUNTING & FINANCE MODULE D_cont... 33. Advances given to a staff by a bank as a employer should be included in-----(a) other assets(b) advances (c) investments(d) none of the above34. 87.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.(a) depreciation on motor cars(b) depreciation on stationary and stamps(c) depreciation on furniture(d) depreciation on non-banking assets35. Select the correct statement in respect of doubtful debts (a) Which has remained NPA for a period not exceeding 18 months?(b) Which has remained NPA for a period exceeding 18 months(c) Which is considered uncollectible by bank/ internal auditor or RBI Inspection(d) None of the above36. The provisional requirement for standard asset is-----(a) 0.40%(revised) of total outstanding(b) 10%(revised) of total outstanding(c) 40%(revised) of total outstanding(d) 100%(revised) of total outstanding37. The investment under held to maturity should not exceed -----of banks total investment. (a) 25%(b) 75%(c) 5%(d) None of the above38. The list given below consists of various securities. Identify the security which is SLR security(a) Securities issued by local authorities(b) Shares(c) Bonds(d) subsidiaries39. Acceptances, endorsements and guarantees are shown as-----(a) other assets(b) contingent liabilities(c) advances(d) other liabilities and provisions40. Select the false statement in respect of banking(a) A company accepting deposits for the purpose of lending or investment is a banking company (b) 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(c) A company besides accepting deposits and lending is dealing in goods in connection with the realisation of a security is a banking company(d) A company besides accepting deposits and lending is in the business of collections or negotiating bills of exchange is a banking company.41. The list given below provides the close relationship between the items of each pair. One of the pairs has no such close relationship. Identify this pair.(a) Banking company trustees and executors(b) Form B - Profit and Loss Account (c) Ledger book - Letter of credit register(d) Other liabilities and provisions - Schedule 542. Choose the wrong pair from the following. The information given in the pair is pertaining to banking companies(a) Reserves & surplus - Share premium(b) Time deposits - Matured time deposits(c) Borrowings in India - Refinance from NABARD(d) Other Liabilities & Provisions - Inter office/branch adjustments(net43. Choose the wrong pair from the following. The information given in the pair is pertaining to banking companies(a) Demand Deposits - Compulsory deposits under excise rules(b) rebate on bills discounted - unexpired discount(c) Operating Expenses Schedule 14(d) Other Income - Profit on sale of investments less loss on sale of investments44. 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(a) Closing balance of provisions held towards NPA - Opening Balance plus provisions made during the year less write off of bad debts/write back of excess provisions(b) 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(c) Reserves & surplus - Opening balance plus additions during the year less deductions during the year(d) Term deposits - from banks and from Others45. Identify a pair which is mismatch from the following pairs in respect of Company Accounts(a) Miscellaneous Expenditure Preliminary Expenses(b) Contingent Liabilities footnote to balance sheet(c) Debentures Unsecured Loans(d) Outstanding Expenses Current Liabilities46. Identify a pair which is mismatch from the following pairs in respect of Company Accounts(a) Discount on issue of shares Profit and Loss Account(b) Bill discounted contingent liabilities(c) Interest accrued and due on debentures Secured Loans(d) Mortgage Loan Secured Loans47. 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.(a) Rate of dividend exceeds 10% but not 12.50- Transfer to reserve @ Nil%(b) Rate of dividend exceeds 12.50% but not 15%- Transfer to reserve @ 5%(c) Rate of dividend exceeds 15% but not 20%- Transfer to reserve @ 7.50%(d) Rate of dividend exceeds 20% - Transfer to reserve @ 10%48. 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.(a) 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(b) Debit Profit and Loss Account by Rs.5,000 and Credit Preliminary Expenses(c) 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(d) 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.25,000.49. 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(a) Debit Dividend by Rs.25000 & Credit Bank by Rs.25000 (b) Prepaid Insurance by Rs.2000 & Insurance by Rs.2000 (c) Debit Profit & Loss Account by Rs.25,000 & Credit Provision for Tax by Rs.25,000(d) Debit Profit & Loss by Rs.5,000 & Credit Provision for doubtful debts by Rs.5,000.50. In respect of asset side of the balance sheet one of the items is presented in a proper order, rests are disorderly. Select the orderly presented item from the following.(a) Investments, Fixed Assets, Current Assets & Loan Advances, Profit & Loss Account(Dr. balance), Miscellaneous Expenditure (b) Fixed Assets, Investments, Current Assets & Loan Advances, Profit & Loss Account(Dr. balance) , Miscellaneous Expenditure(c) Fixed Assets, Investments, Current Assets & Loan Advances, Miscellaneous Expenditure, Profit & Loss Account(Dr. balance) (d) Fixed Assets, Current Assets & Loan Advances, Profit & Loss Account(Dr. balance), Miscellaneous Expenditure59. One of the statements in respect of Profit & Loss Adjustment account is incorrect, rest are correct. Mark the incorrect sentence.(a) The account is credited with closing balance of profit and loss account of last year (b) The account is credited with current years net profit (c) The account is debited with provision for taxes(d) The account is debited with provision for dividend
60. The two portion of each pair relating to partnership accounts has got some relationship. However one of the pairs is a mismatch and has no relationship. Select this pair from the following(a) Management of business - business may be run by one or some or all partner(b) Treatment of losses - insolvency of a partner(c) Loan from partners - No interest as partners are owners(d) Goodwill - super profit method61. 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(a) Admission of a partner - gain ratio(b) Reserves & surplus - Old partners(c) Goodwill - new partner(d) Revaluation of assets & liabilities - Profit & Loss adjustment account62. The two portion of each pair relating to retirement of a partner has got some relationship. However one of the pair is mismatch and has no relationship. Select this pair from the following(a) Retirement - voluntary action(b) Gain - retiring partner(c) Share of goodwill - borne by continuing partners(d) Reserve & surplus - belong to all partners63. If the partners capital accounts are fixed, where will you record (either debit side or credit side of which account ) the following transactions (i) Salary payable to partner (ii) Fresh capital introduced by a partner (iii) Drawing made by a partner (iv) Share of profit earned by a partner. The effect to one of the journal entries is wrongly given. Identify that account from the following.(a) Debit side of partners current account(b) Credit side of partners capital account(c) Debit side of partners current account(d) Credit side of partners current account64. 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)(a) K is right .L must pay Rs.29,000 to the firm(b) P is right . Firm should bear profit as well as losses.(c) P is right. No new partner can be admitted without the consent of all. (d) L is right. He is entitled for interest at 6% in the absence of partnership agreement.65. Below are some statements about partnership. One of them is correct, identify that statement.(a) Partnership arises from reputation(b) A partnership is formed only for a legal business(c) The liability of partners is limited(d) The business of the firm is conducted by two partnersJAIIB QUESTIONS ACCOUNTING & FINANCE MODULE D part 1 JAIIB SPECIMEN QUESTIONSACCOUNTING & FINANCE FOR BANKERSMODULE D
1. Select from the following, a statement which speaks about liabilities of an entity.(a) The liabilities consist of claims of the owners(b) The liabilities consist of claims of the owners and outsiders(c) The liabilities consist of claims of the outsiders(d) None of the above2. 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?(a) Rs. Nil(b) Rs. 1100(c) Rs.500(d) Rs.600.3. Select from the following a sentence which is wrong(a) If assets increase and liabilities do not , the capital will increase(b) If assets increase and liabilities also increase by same sum , the capital will remain same(c) A reduction in the amount of assets will amount to equivalent reduction in the net worth (d) An increase in the amount of liabilities with no corresponding increase in liabilities will increase the amount of capital4. The firm sells goods on credit for Rs.50000, the cost of the goods sold is Rs.30000.The effect of the transaction is that, the capital of the firm-----(a) increases by Rs.50000(b) reduces by Rs.40000(c) increases by Rs. 20000(d) reduces by Rs. 200005. Mr.Ghatge commenced his business on 1st April, 2006 with Capital of Rs.1,00,000. He did good business during the year and earned handsome profit. At the end of 31st March, 2007, his financial position was: Fixed Assets Rs.1, 20,000 and bank balance of Rs.33000 and Creditors Rs. 17000. What was his net profit for the year 05-06?(a) Rs. 36000(b) Rs.70000(c) Rs.53000(d) None of the above. 6. One of the pairs given below is wrong. Select the wrong pair.(a) Outstanding expenses - Nominal account(b) Profit and Loss Account (Dr. balance) Application of funds(c) Net worth less reserves & surplus - Capital(d) Balance sheet - Financial position
7. Choose the sentence which speak about illegal association(a) The unregistered association of 10 persons to do banking business(b) The unregistered association of 50 persons to do non banking business(c) The unregistered association of 20 persons to do business other than banking (d) The unregistered association of 10 persons to do business other than banking 8. From the following ,find a sentence which is false in respect of partnership(a) If the partnership is following the Fixed Capital Account Method salary payable to a partner is credited to the partners current account(b) Drawings made by partners are never entered in the Profit and Loss Appropriation Account. (c) In the Fluctuating Capital Account Method the balance in the capital account always remains the same(d) The capital account of a partner is required to be opened in both the Fixed Capital Account Method and Fluctuating Capital Account Method
9. From the account given below, select the account which is wrongly included in Profit & Loss Appropriation Account at the debit side a. Drawings Accountb. Partners Salary Accountc. Interest on Loan Accountd. Commission to Partners Account10. The average net profits expected are Rs.108000 per annum before charging remuneration of Rs. 18000 to partner . The capital employed in the business is Rs.6,00,000. The rate of return expected on capital employed of a firm is 10%. What is the value of goodwill on the basis of two years purchase of super profits.a. Rs.108,000b. Rs.60,000c. Rs.78,000d. None of the above11. A and B are two partners in a firm sharing profits and losses as 2:1. they admitted C as a partner with 25% share in the profits of the firm. Hence , the new profit sharing ratio , after admission of C would be -----(a) 15:15:10(b) 20:10:10(c) 3:1:1(d) None of the above12. Mr. Q and Mr. R were partners of a firm sharing profit and losses in the ratio of 3:2. They take S into partnership. It was agreed that S will pay Rs.1,00,000 as his share of goodwill which will be retained in business and also bring Rs.3,00,000 as capital for one fourth share in the future profits. The book value of the stock was 41,000 but was to be revalued at Rs.50,000, Accountant has passed following entries, but Mr. Q feels that one of the entry is wrong. Select the wrong entry from the following.(a) Debit cash and credit Goodwill for Rs.1,00,000(b) Debit cash and credit Ss Capital for Rs.3,00,000(c) Debit Goodwill for Rs.1,00,000 and credit Qs Capital by Rs. 60000 & Rs Capital by Rs. 40,000(d) Debit Stock and credit Profit & Loss Adjustment A/c by Rs.9,00013. Read the following four journal entries which are passed to consider revaluation of assets and liabilities at the time of admission of a partner. One of the journal entries is wrong, choose the entry which is wrong.(a) For increase in the value of assets-Debit Asset Account and Credit Revaluation Account.(b) For decrease in the value of liabilities- Debit Liabilities Account and Credit Revaluation Account.(c) For Profit on revaluation of assets and liabilities Debit Old Partners Capital Account in old profit sharing ratio and Credit Revaluation Account(d) For decrease in the value of assets -Debit Revaluation Account and Credit Asset Account 14. Any facts, observations, occurrences are called -----(a) data(b) record(c) file(d) system15. 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.(a) Stock is revalued upwardly by Rs. 25000(b) Creditors are revised upwardly by Rs.8000(c) Premises are revised upwardly by Rs.52000(d) A provision on debtors of Rs. 15,000 is made for doubtful debts 16. Select the True statement from the following(a) Interest on drawing is an income to the partnership firm(b) Joint Venture is a permanent partnership firm(c) Goodwill is a tangible asset of the firm(d) In the absence of partnership agreement , partners share profit and loss in proportion to the capital contributed by the partners.17. Select the incorrect statement in respect of companies.(a) A member of a company can enter into contract with a company(b) It is compulsory to register a joint stock company(c) If all but one member of a private company becomes insolvent ,it affects the existence of the organisation(d) Shareholders are not liable for the acts of the company18. Select the incorrect sentence(a) Whenever, there is no profit or inadequate profit, dividend cannot be declared(b) The right to claim dividend lapses when there is no profit in case of cumulative preference shares(c) When the company makes profit , arrears of preference dividend are cleared first(d) The Act prohibits the issue of any preference shares which are irredeemable19. Select the incorrect statement(a) Authorized capital is the capital with which the company is registered(b) Issued capital is equal to its authorized capital(c) Authorized capital, issued capital, subscribed capital, called up capital and paid up capital cannot be same (d) The amount which the company has asked its shareholders to pay is called up capital of the company.20. Following are the journal during the process of application to allotment stage . One of the entries is wrong. Select the wrong entry.(a) Debit bank account and credit share application account ( when application money is received)(b) Debit share application account and credit share capital account (application transferred to share capital account)(c) Debit share capital and credit share allotment account ( for recording allotment money being fallen due )(d) Debit bank account and credit share allotment account ( for receipt of allotment money)
21. Select the incorrect statement in respect of calls in advance
(a) The company may accept from shareholders , the uncalled amount on shares even before it is fallen due(b) The article of association must permit such acceptance of advance call money(c) Interest on calls in advance can be paid but the maximum is upto 6%(d) The amount of calls in advance is part of the paid up share capital 22. Select the incorrect statement in respect of utilization of share premium(a) it is used for the purpose of buy back of shares(b) it used for payment of dividend in case of inadequacy of profits(c) it is used for writing off preliminary expenses(d) it is used for issue of fully paid bonus shares23. 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.(a) Debit bank account by Rs.900(b) Debit forfeited shares by Rs.500(c) Credit share capital by Rs.1000(d) Credit forfeited shares by Rs.40024. DT Ltd. issued shares of Rs.10 each at 10 % premium, payable on application Rs.2, on allotment Rs.3 (including premium), on first call Rs.2 and on final call Rs.4. One of the shareholders, applied for 100 shares but fail to pay allotment and first call money. At this stage, the said shares were forfeited. Select the account which was wrongly credited.(a) Credit Forfeited shares Account by Rs.200(b) Credit Share allotment Account by Rs.200(c) Credit share premium Account by Rs.100(d) Credit Share first call Account by Rs.20025. Select the source which is not valid for issue of bonus shares(a) Share premium (b) Revaluation reserve created by revaluation of fixed assets(c) Capital reserve (d) Capital redemption reserve26. The liability side of the balance sheet of ABC International Ltd. is showing following position: Paid up share capital Rs.25 Lakh ( 25,000 shares of Rs.100 each fully paid up)Share premium Rs.5 Lakh, Capital Reserve Rs. 3 Lakh, General Reserve Rs. 15 Lakh and Profit & Loss account Rs. 15 Lakh .It was decided to use minimum free reserve for issue of 1:1 bonus shares.. The accounts and the amount with which the account is debited are given below in sets. One of the set is correct. Select the same.
(a) Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 1 Lakh), General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 4 Lakh(b) Share Premium Account (Rs. Nil Lakh), Capital Reserve Account ( Rs. Nil Lakh), General Reserve Account (10 Lakh) & Profit & Loss Account by Rs. 15 Lakh(c) Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 3 Lakh), General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 2 Lakh(d) Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 1 Lakh), General Reserve Account (4 Lakh) & Profit & Loss Account by Rs. 15 Lakh.
27. Select the incorrect statement in case of Share Capital and Reserves and Surplus as shown in the balance sheet.(a) Under share capital, the following order is maintained: Authorised capital, issued capital, subscribed capital(b) The called up amount per share is indicated and in the amount column total amount i.e. number of shares multiplied by amount called up per share is shown(c) The amount of unpaid calls is deducted from (b) above(d) The amount of forfeited shares account is shown under Reserves & surplus
28. Select the incorrect statement in respect of form of balance sheet of companies(Liabilities side).(a) sinking fund is shown under unsecured loans(b) Loans and Advances from banks are grouped under the head Secured Loans(c) Unclaimed Dividend is grouped under the head current liabilities(d) Proposed dividend is grouped under provisions.
29. Select the incorrect statement in respect of form of balance sheet of companies ( Asset side).(a) Live Stock is grouped under the head current Asset(b) Balance of unutilized monies raised by issue is grouped under the head Investments(c) Interest paid out of capital during construction is grouped under the head Miscellaneous Expenditure(d) Vehicles are grouped under the head Fixed Asset
30. 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 -----(a) 1 year thereafter(b) 2 years thereafter(c) 3 years thereafter(d) 5 year thereafter31. One of the accounts is wrongly grouped under the head Investments while preparing the balance sheet of the company. Single out the wrong account.(a) Investments in government or trust securities(b) Investments in shares ,debentures or bonds(c) Immovable properties(d) Interest accrued on investments
32. One of the accounts is wrongly debited to Profit and Loss Appropriation A/c of a company. Name the wrong account debited
(a) Interim dividend(b) Proposed dividend(c) Provision for tax(d) Capital redemption reserve33. Select the false statement in respect of assets(a) a banking company is allowed to acquire assets for its own use(b) a banking company is allowed to grant loans against the security of assets belonging to its customers(c) a banking company is allowed to take possession of such assets in case of default committed by the borrower(d) a banking company is not allowed to sale the assets against the security of which it has granted loans
34. The scheduled banks are required by RBI to transfer at least ------ of their disclosed profit after adjustment/provision towards bonus to staff a. 20%b. 15%c. 10%d. None of the above35. Select the incorrect statement in respect of financial Statements of Banks(a) a banking company is not required to prepare financial statements in accordance with Schedule VI of the Companies Act , 1956. (b) The Act prescribes special forms of balance sheet and profit and loss account for the preparation of its final accounts(c) These are set out in form A and form B of the first schedule to the Banking regulation Act, 1949(d) Form A gives format of a balance sheet and form B gives the format of a profit and loss account36. The financial statement of bank consists of ------- schedules(a) 18 Schedules(b) 16 Schedules(c) 17 Schedules(d) Schedules37. Investments, Advances, Fixed Assets and other Assets are part of Schedule Nos.--respectivelya. 6,7,8,9b. 7,8,9,10c. 8,9,10,11d. 9,10,11,1238. Liability for partially paid investments in respect of banking companies is grouped under the head-----(a) Investments(b) Other assets(c) Other liabilities and provisions(d) Contingent liabilities 39. One of the items is a misfit in a group namely other income of a banking company. Select this item from the following (a) Income on Investments(b) Profit on sale of investments(c) Profit on revaluation of investments(d) Profit on exchange transactions 40. In banking company, matured term deposit to be shown under-----(a) demand deposits(b) saving bank deposits(c) term deposits(d) other liabilities and provisions
JAIIB-ACCOUNTING & FINANCE FOR BANKERS-MOD-CMODEL QUESTIONS
1) Which of the following may not be part of the Bank reconciliation process.a) Interest on overdraftb) Dishonour of chequec) Cash drawn from bankd) Cheque deposited but not collected
2) Reconciliation of overcasting on receipts side of cash booka) Increases the balance in the cash book.b) Increases the balance in the passbook.c) Decreases the balance in the cash book.d) Decreases the balance in the passbook.
3) Which of the following is truea) Bank Reconciliation Statement(BRS) is an account.b) BRS is prepared by the bank.c) BRS shows causes of disagreement between cash book & passbook.d) BRS shows only excess of cash book over passbook.
4) If a trader enjoys an overdraft facility, then a) His passbook will show debit balance.b) His cash book will show debit balance .c) excess of deposits over withdrawals d) None of the above
5) Direct deposit by a customer in the bank a) Shows a higher passbook balance than cash book.b) Shows a lesser passbook balance than cash book.c) Shows no difference.d) None of the above.
6) Goods worth Rs.2000 sold to Vijay was entered in purchase account; The rectification isa) Credit purchases and credit sales to the extent of Rs.2000 each & debit Vijay by Rs.2000b) Debit purchases and debit sales to the extent of Rs.2000 each & credit Vijay.c) Debit sales to the extent of Rs.4000.d) Credit purchases to the extent of Rs.4000.
7) Machinery worth (WDV) 1000/- sold for 1200/- is entered in sales register. The rectification isa) Credit sales 1200/-, debit machinery 1000/- and debit P&L a/c 200/-.b) Debit sales 1200/- , credit machinery 1000/- and credit P&L a/c 200/-.c) Credit machinery 1200/-, debit sales 1000/- and debit P&L a/c 200/-.d) Debit machinery 1200/-, credit sales 1000/- and credit P&L a/c 200/-.
8. Sales return of amount Rs.1000 from Vijay was wrongly entered in purchase book. The rectification isa) Debit sales to the extent of Rs.2000.b) Credit purchases to the extent of Rs.2000c) Credit Vijay Rs.2000, debit sales and purchases to the extent Rs.1000, each.d) Debit sales return by Rs.1000 and credit purchases by Rs.1000
9) Which of the following will not affect Trial Balance a) Goods sold on credit not recorded in books.b) Overstating of sales register.c) Rent account credited instead of debit.d) Salary debited to the extent the amount.
10) Suspense a/c is not used in which of the following cases.a) before trial balance.b) after trial balance.c) before final accounts.d) none of the above.
11)Which of the following is truea) Trial balance ensures arithmetical accuracy.b) Trial balance errors are not located then the difference is sent to suspense a/c.c) Trial balance is base for final accounts.d) All of the above.
12) Which of the following are truea) Nominal accounts always have credit balances.b) Real accounts always have debit balances.c) Debit balance in ledger account is credit balance in trial balance.d) P&L a/c appears in trial balance.
13) Freight expenses for moving new machinery to factory isa) Revenue expensesb) Deferred revenue expenditurec) Capital expenditured) None of the above
14) Which of the following is falsea) Replacement of defective part of machinery is revenue expenditureb) Daily wages paid for erection /installing of machinery is capital expenditurec) Underwriting commission for issue of shares is revenue expenditured) Excess of sale price of Machinery over its W D Value but less than cost price is treated as revenue receipt
15) Which of the following is not a deferred revenue expenditurea) Preliminary expenses for setting up a company.b) Amount raised through Rights issue.c) Huge sales promotion expenditure in launch of new productd) Cost of preparing project report
16) Match the columns: a) Purchase of land for premises 1) Deferred Revenue Expenditure (c) b) Purchase of machinery for sale 2) Capital Expenditure (a) c) Legal expenses for issue of shares 3) Revenue Expenses (b) d) Excess of sale price of asset over W D Value 4) Capital Receipt (e) e) Excess of sale price of asset over cost price 5) Revenue Receipt (d )
17) For an expense to be classified as revenue or capital depends on a) Kind of expense b) Duration of the benefit of the expenditure c) Effect on revenue earning capacity d) All of the above
18) Cost of goods sold is a) Opening stock + purchases + closing stock b) Opening stock + purchases closing stock c) Opening stock purchases + closing stock d) None of above
19) In LIFO method of inventory valuation a) Issue of stocks to production is at latest price b) Closing stock is at latest price c) Both a) & b) d) Neither a) nor b)
20) In FIFO method of inventory valuation a) Closing stock is at latest price b) Issue of stocks to production is at earliest price c) Both a) & b) d) Neither a) nor b)
21)Which of the following is most desirable a) Pricing issue of goods to match current material costs b) Overstating profits c) Understating profits d) none of the above
22) As per accounting standards which of the following is not a preferred method a) LIFO b) FIFO c) WACM d) All of them
23) Consider the following:01/04 Opening stock of 1000 units at Rs. 10/- each10/04 Purchases of 500 units at Rs. 9/- each16/04 Purchases of 300 units at Rs. 11/- each18/04 Goods of 300 units released to production31/04 Books closed Answer the following: under LIFO under FIFO under WACM Goods released to production @ Rs 11/- @ Rs. 10/- @ Rs. 9.89/- Closing stock @ Rs.10/- @ Rs. 11/- @ Rs. 9.89/
24)Read the following and answer : Drawer is A Drawee is B Endorsee is C
In the books of A, Bills receivable a/c is debited and Bs a/c is credited, then a) Bill accepted by A b) Bill accepted by B c) Bill retired by B d) None of the above
In the books of B , Bills payable a/c is debited and bank account is credited a) Bill accepted by Bb) Bill retired by B c) Bill dishonoured by Bd) Bill sent by A for payment
25) Which of the following is not truea) there is no difference in appearance between trade and accommodation bill.b) A bill of exchange must be acceptedc) Drawee is maker of a billd) Accommodation bill is for an imaginary transaction
26. Noting charges are a) Paid to bank for dishonourb) Paid to drawer for dishonourc) Paid to notary public for recording dishonourd) None of the above.
27. Goods lost in transit isa) Nominal lossb) Abnormal lossc) Casual lossd) Conditional loss
28. Due to heavy flooding a truck carrying consignment goods sinks. This loss is calleda) contingent lossb) Nominal lossc) Abnormal lossd) Casual loss
29. Which of the following is true for leasing and hire purchasea) Lessor and vendor can claim depreciation.b) Lessor and hirer can claim depreciation.c) Lessee and hirer can claim depreciation.d) Lessee and vendor can claim depreciation.
30. In sum of digits method for 5 years which of the following is the 1st years allocation ratio.a) 1/15b) 2/15c) 3/15d) 4/15e) 5/15
31. Which of the following is truea) Total lease rent = cost of asset - total finance income + residual valueb) Total finance income = total lease rent cost of asset + residual valuec) Total finance income = cost of asset total lease rent + residual valued) Cost of the asset = total lease rent + residual value + total finance income
32. In operating lease the period isa) Less than the useful life of the asset.b) Greater than the useful life of the asset.c) Equal to the useful life of the asset.
33. In comparing lease & hire purchase (H P) there are differences & similarities. Of the following which one is not true?a) In lease the user of the asset does not retain it, while in H P he does.b) In lease the user does not claim depreciation while he does in H P.c) Payment of rentals is on instalment basis in both.d) The users of assets in both lease & H P run the risk of obsolescence.
34. Receipts and payments statement showsa) Only revenue receipts and payments during a year.b) Only capital receipts & payments during a year.c) Both capital and revenue receipts during a year.d) Cash Only transactions.
35. Income for the year = I, Outstanding Income for previous year = Id, Outstanding Income of current year = Idi, then Receipts for the year isa) I Idi + Idb) I + Idi Idc) I + Idi + Idd) None of the above.
36. Opening balance of asset = Oi, Closing balance of asset = Oc, Depn. = D, Then addition to the asset during the year isa) Oc D Oib) Oi + D Oc c) Oc + D Oid) Oi D Oc
37) Tick in the appropriate column for a Non-Trading Organization Item Revenue Receipt Capital Receipt a) Donations for sports meet b) Donations by Legacy/Will c) Grant for playground d) Life membership fees e) Profit on sale of fixed assets
38) For a Non- Trading Organization, a P & L A/c called an Income & Expenditure A/c because.(a) They often make losses.(b) They are forbidden by statute to make profits(c) By object of their association they are non profit making bodies.(d) Their income & expenditure statement are a combination of capital & revenue receipts.
39) Which of the following is not true(a) Depreciation is an expense charged to the P & L a/c.(b) Depreciation is not a part of the operating costs.(c) Assets that are depreciated are tangible assets.(d) Depreciation is like an insurance expense.
40) Under written down value method of Depn., the W D V of the asset is always a) equal to zerob) < zeroc) > zero
JAIIB Model Questions - LEGAL_Module D
378. A _________ is free when the parties to the contract agree to the same thing in the same sense. Marks:2+ 0.5-consentcontractagreementThe Correct Answer is : consent Module : Module D Chapter : Chapter1 379. A contract without _________ is void. Marks:2+ 0.5-cashconsiderationindemnityguaranteeThe Correct Answer is : consideration Module : Module D Cha. : Chapter1 380. A person who makes a proposal is known as _______. Marks:2+promisorprincipal debtorsuretyguarantorThe Correct Answer is : promisor Module : Module D Chapter : Chapter1 381. A person is said to be competent to contract if ___________. he is a majorhe is of sound mindhe is a major and of sound mindThe Correct Answer is : he is a major and of sound mind Module : Module D Chapter : Chapter1 382. A enters into an agreement with B to rob C and share money. B runs away with all the moeny. A can suit against B to recover the money. True FalseThe Correct Answer is : False Module : Module D Chapter : Chapter1 383. Mr X (aged 17) can enter into an agreement with Mr Y (aged 25) to buy a car. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : Chapter1 384. A contract is concluded only when the party to whom the proposal is made, accepts the proposal. Marks:2+ 0.5-True FalseThe Cor rect Answer is : True Module : Module D Chapter : Chapter1 385. Insurance policies are contracts in the nature of _____. guaranteepledebailmentindemnityThe Correct Answer is : indemnity Module : Module D Chapter : Chapter2 386. There are ________ parties in a contract of indemnity. Marks:2+2345The Correct Answer is : 2 Module : Module D Chapter : Chapter2 387. A person who is indemnified can recover damages as well as costs for claming the damages. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter2 388. In a contract of indemnity the indemnifier is primarily labile True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter3 389. In a contract of guarantee the liability of the surety is secondary. True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter3 390. Anything done for the benefit of the principal debtor, is a sufficient consideration to the surety for giving the guarantee. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter3 391. Where there are co-sureties, a release by the creditor of one of them does not discharge the others. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter3 392. Principal debtor need not pay the surety after the surety has paid to the creditor. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : Chapter3 393. Surety is also known as the __________. Marks:2+ 0.5-indemnifierbailorguarantorbaileeThe Correct Answer is : guarantor Module : Module D Chapter : Chapter3 394. Liability of the surety is ________ that of the principal debtor. co-extensive withprimary tosecondary toThe Correct Answer is : co-extensive with Module : Module D Chapter : Chapter3 395. Surety is _________ if the principal debtor is released by the creditor. dischargedliableThe Correct Answer is : discharged Module : Module D Chapter : Chapter3 396. Guarantee obtained by _________ is invalid. Marks:2+ 0.5-misrepresentationconsentagreementcontractThe Correct Answer is : misrepresentation Module : Module D Cha:Chap3 397. Bailor is a person who delivers his goods to the surety to enable him to give a guarantee. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : Chapter4 398. Bailee can use the goods given by the bailor, in the manner as he likes. True FalseThe Correct Answer is : False Module : Module D Chapter : Chapter4 399. The bailee can keep the goods bailed to him and he need not return the same to the bailor. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : Chapter4 400. Giving a product on rent for use to another person is a contract of bailment.True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter4 401. If ornaments kept in the safe locker of bank is stolen in spite of due care by the bank, the bani is liable to the depositor of ornaments. TrueFalseThe Correct Answer is : False Module : Module D Chapter : Chapter4 402. It is the obligation of the bailee to keep his goods separate from the goods of the bailor. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter4 403. The bailor is liable for any loss to the bailee if the goods bailed are defective and the bailor knowingly does not disclose this fact to the bailee.True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter4 404. If the bailee has rendered any service involving the exercise of labour or skill in respect of the goods bailed to him, he has to right to retain such goods until the receives due remuneration for the services the has rendered. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter4 405. In a pledge the goods are delivered to be kept as security for a debt or borrowing. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter5 406. The pawnee can sell the goods if the pawnor fails to pay. True FalseThe Correct Answer is : True Module : Module D Chapter : Chapter5 407. The pawnee can sell the goods without giving notice to the pawnor. True FalseThe Correct Answer is : False Module : Module D Chapter : Chapter5 408. The pawnee can keep the goods even after the pawnor has paid the dues. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : Chapter5 409. Agent can be appointed by __________. Marks:2+ 0.5-express appointmentimplication of lawratification by principalany of the three modesThe Correct Answer is : any of the three modes Module : Module D Chapter : undefined 410. The usual form of contract of agency is by way of a _________. power of attorneyindemnity bondguarantee bondThe Correct Answer is : power of attorney Module : Module D Chapter : undefined 411. When a person by his words or conduct appoints someone as his agent it is known as agency by ________. Marks:2+ 0.5-estoppelpromiseconductactionThe Correct Answer is : estoppel Module : Module D Chapter : undefined 412. Consideration is the most essential element in any contract of agency. True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 413. A contract of agency is terminated if the agent does not wish to continue as agent any more. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 414. An agent can have a lien on the goods of the principal for the dues payable by the principal to the agent. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 415. Minor can be a principal or an agent. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 416. The principal has to indemnify the agent for all the lawful acts done by the agent int he course of his duties. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 417. ________means the consideration for a sale of goods. PriceLienDeliverySharesThe Correct Answer is : Price Module : Module D Chapter : undefined 418. Goods as defined under Sale of Goods Act does not include ________actionable claimssharesstockgrassThe Correct Answer is : actionable claims Module :D Chapter : undefined 419. ________ goods are to be manufactured/produced/acquired by the seller after making of the contract of sale. Marks:2+ 0.5-FutureSpecificMoveableImmoveableThe Correct Answer is : Future Module : Module D Chapter : undefined 420. __________ goods means goods identified and agreed upon at the time a contract of sale is made. Marks:2+ 0.5-FutureSpecificMoveableImmoveableThe Correct Answer is : Specific Module : Module D Chapter : undefined 421. _________ means voluntary transfer of posession from one person to another.DeliveryLienIndemnitysuitThe Correct Answer is : Delivery Module : Module D Chapter : undefined 422. When the transfer of the property in the goods is to take place at a contract is called ________. Marks:2+ 0.5-agreement to sellcontract of saleconract of future goodscontract of specific goodsThe Correct Answer is : agreement to sell Module : Module D Chapter : undefined 423. In ________ the ownership of goods is yet to pass from the seller to the buyer.agreement to sellcontract of salecontract of future goodscontract of specific goodsThe Correct Answer is : agreement to sell Module : Module D Chapter : undefined 424. Shares are goods within the meaning of the Sale of Goods Act. True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 425. Fixtures can be regarded as moveable goods only if they are intended to be severed and sold separately. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 426. If the stipulation agreed to between the parties is essential to the main purpose of the contract then such a stipulation is known as a _________. conditionwarrantyimplied conditionguaranteeThe Correct Answer is : condition Module : Module D Chapter : undefined 427. A ________ is a stipulation collateral to the main purpose of the contract.conditionwarrantyimplied conditionguaranteeThe Correct Answer is : warranty Module : Module D Chapter : undefined 428. There is an implied condition on the part of the seller that he has a right to _________ the goods. Marks:2+ 0.5-usesellretainresaleThe Correct Answer is : sell Module : Module D Chapter : undefined 429. If the sale of goos is by ________ there is an impled condition that the goods shall correspond with the desription. Marks:2+ 0.5-descriptionsampleoral agreementwritten contractThe Correct Answer is : description Module : Module D Chapter: undefined 430. In every contract of sale it is impled that the seller has got the right to sell the goods. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 431. An implied warranty as to quality or fitness for particular purpose may be annexed by the usage of trade. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 432. The seller of goods is deemed to be an unpaid seller when the ________ has not been paid Marks:2+ 0.5-priceinterestdamagespenaltyThe Correct Answer is : price Module : Module D Chapter : undefined 433. There is no _____ as to the quality or fitness of goods for any particular purpose. Marks:2+ 0.5-implied conditionimplied warrantyexpress conditionexpress warrantyThe Correct Answer is : implied condition Module : Module D Chapter : undefined 434. When the _______ is in possession of goods, a lien can be exercised. sellerbuyeragent of the buyercarrierThe Correct Answer is : seller Module : Module D Chapter : undefined 435. _________ is terminated when the buyer gets the possession of the goodslienagreementconditionwarrantyThe Correct Answer is : lien Module : Module D Chapter : undefined 436. When property in the goods has not passed to the buyer and the buyer becomes insolvent before the price is paid, the seller can withhold the delivery of goods. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 437. A seller who has accepted negotiable security as an abosolute payment is no longer an unpaid seller. Marks:2+ 0.5-True False The Correct Answer is : True Module : Module D Chapter : undefined 438. If one partner cheats a customer of the partnership firm then all the partners of the partnership firm are liable to compensate the customer. TrueFalseThe Correct Answer is : True Module : Module D Chapter : undefined 439. Registration of firms is compulsory under the Partnership Act. True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 440. It is compulsorily to enter into a partnership deed. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 441. The partners are free to decide their mutual rights and liabilities. True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 442. A partnership deed can even provide that a particular partner would not take part in the day-to-day business decision of the partnership firm. True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 443. Consent of all the partners is necessary to change the nature of business carried on by the firm. Marks:2+ 0.5-True False The Correct Answer is : True Module : Module D Chapter : undefined 444. A partnership at will can be dissolved by notice. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 445. Every partner has a right to receive remuneration` Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 446. It is necessary that all the partners in the partnership firm must receive equal share of profit in the partnership firm. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 447. No partner is entitled to use the partnership property for his private purposes.True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 448. A single partner can be authorised to carry on business and sign documents on behalf of the firm. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 449. Every partner is liable jointly with all the other partners and also severally for all acts of the firm done while he is a partner. True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 450. A minor can be a partner in a partnership firm. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 451. A minor can be admitted to the benefits of a partnership firm. True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 452. A minor is personally liable like other partners to pay the debts of the firm.True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 453. A minor who is admitted to the benefits of a partnership firm, has a choice when he attains majority as to whether he wants to continue as a partner or not.True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 454. The partners can mutually agree and dissolve the firm. True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 455. On the death of a partner the partnership firm is compulsorily dissolved.True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 456. A partner of an unregistered firm can file a suit against other partners to get his share of profits. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 457. It is compulsory for a person to hold qualification shares to get appointed as a director in a private company. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 458. Directors are the actual owners of a company Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 459. Private company can make a issue of shares by prospectus. True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 460. A company has to be compulsorily registered under the Companies Act, 1956.True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 461. A company cannot enter into contracts in its own name. True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 462. If all the members of a company die, then the company has to be wound up.(i.e. dissolved). Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 463. In case of a company limited by shares the creditors of the company can recover the money from the members if the company is not making profits.True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 464. A member cannot transfer shares in a public company without the consent of other members. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 465. The minimum number of members required in a private company is __37122The Correct Answer is : 2 Module : Module D Chapter : undefined 466. The minimum number of members required in a public company is-- 37122The Correct Answer is : 7 Module : Module D Chapter : undefined 467. The maximum number of members in a private company can be _____. 712502The Correct Answer is : 50 Module : Module D Chapter : undefined 468. The maximum number of members in a public company can be _____. any number125051The Correct Answer is : any number Module : D Chapter : undefined 469. A private company should have a minimum paid-up capital of Rupees _five crorefive lakhone croreone lakhThe Correct Answer is : one lakh Module : Module D Chapter : undefined 470. A public company should have a minimum paid-up capital of Rupees __five crorefive lakhone croreone lakhThe Correct Answer is : five lakh Module : Module D Chapter : undefined 471. In a government company the government holds at least_____ per cent.12155051The Correct Answer is : 51 Module : Module D Chapter : undefined 472. In case of conflict between the Memorandum of Association and Articles of Association, the Articles of Association prevails. True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 473. Doctrine of ultra vires lays down that every outsider is assumed to have read the Memorandum of Association and Articles of Association. True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 474. Doctrine of constructive notice states that the outsiders are not required to see the compliance of internal regulations of the company. True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 475. Doctrine of indoor management lays down that a company cannot carry on the objects not permitted by its Memorandum of Association. True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 476. A minor can be a member of a private company but not of a public company.True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 477. A member can inspect the register of members. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 478. There are no remedies available for misstatements in prospectus by directors.True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 479. The maximum number of directors in a private company can be _____37125The Correct Answer is : 12 Module : Module D Chapter : undefined 480. The maximum number of directors in a public company can be _____. 371215The Correct Answer is : 12 Module : Module D Chapter : undefined 481. The minimum number of dirctors required in a public company is __37122The Correct Answer is : 3 Module : Module D Chapter : undefined 482. The minimum number of directors required in a private company is ___37122The Correct Answer is : 2 Module : Module D Chapter : undefined 483. At least _____. of the total number of directors of a public company are to be persons whose periof of office is liable to determination by retirement by rotation. Marks:2+ 0.5-27two-thirdThe Correct Answer is : two-third Module : Module D Chapter : undefined 484. Every public company, or a private company which is a subsidiary of a public company, having a paid-up share capital of Rupees _____ must have a managing or whole-time director or a manager. Marks:2+ 0.5-five crorefive lakhone croreone lakhThe Correct Answer is : five crore Module : Module D Chapter : undefined 485. Additional directors are appointed by the ________. Marks:2+ 0.5-board of directorspromotersunderwritersshareholdersThe Correct Answer is : board of directors Module : D Chapter : undefined 486. Alternate directors are appointed by the _______. Marks:2+ 0.5-board of directorspromotersunderwritersshareholdersThe Correct Answer is : board of directors Module : Module D Chapter : undefined 487. Casual vacancies in the board of directors is filled in by the board of directorspromotersunderwritersshareholdersThe Correct Answer is : board of directors Module : Module D Chapter : undefined 488. authorised person is an individual apointed by RBI to deal in foriehn exchangeTrue FalseThe Correct Answer is : False Module : Module D Chapter : undefined 489. A current account tranaction alters the assets or liabilities outside india of person resident in india Marks:2+ 0.5-TrueFalseThe Correct Answer is : False Module : Module D Chapter : undefined 490. A capital account transaction includes payment dur in connection with forighn trade in the ordinary course of business Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter : undefined 491. Foreign exchange includes traveller's cheques. Marks:2+ 0.5-True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 492. RBI can revoke any authorisation given to an authorised person. True FalseThe Correct Answer is : True Module : Module D Chapter : undefined 493. Civil Court is having jurisdiction to entertain any suit or proceeding in respect ofa ny amtter under FEMA. Marks:2+ 0.5-True FalseThe Correct Answer is : False Module : Module D Chapter
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