CLD BHOPAL ACCOUNTS MOCK TEST MODULE B

Choose the correct options for Net worth of a business: I) The liability of the business towards the owners. II) The assets of the business. III) Sum of Capital and Balance of reserves and surplus IV) sum of assets and capital

• I and III
• II and IV
• I and IV
• I , III and IV

Coversion of loan into equity results in I) Change in total assets only. II) Change in both assets and liabilities. III) Change in assets but total assets remain the same. IV) Change in liabilities but total liabilities remain the same.

• I
• II
• III
• IV

Calculate Outside liabilities for the following firm: Total Assets = 500 Capital = 200 Creditors = 50

• 700
• 300
• 150
• 350

What will be the change in below balance sheet, if a firm purchases Raw material worth Rs.5 on credit: Original Balance Sheet: Capital = 20 Cash = 20 Creditors = 10 Stock = 10

• Capital = 20 Cash = 10 Creditors = 5 Stock = 15
• Capital = 25 Cash = 20 Creditors = 10 Stock = 15
• Capital = 20 Cash = 15 Creditors = 10 Stock = 15
• Capital = 20 Cash = 20 Creditors = 15 Stock = 15

What will be the change in below balance sheet, if a firm solds good cost of which is Rs.5 on credit for Rs.10 Original Balance Sheet: Capital = 15 Cash = 10 Creditors =5 Stock = 10

• Capital = 20 Cash = 20 Creditors =15 Stock =0 Debtors = 15
• Capital = 15 Cash = 10 Creditors =5 Stock = 5 Debtors = 5
• Capital = 20 Cash = 10 Creditors =5 Stock = 5 Debtors = 10
• Capital = 15 Cash = 15 Creditors =10 Stock = 0 Debtors = 10

A borrower repaid loan installment of Rs.1000/- Choose the correct effect on Balance sheet.

• Liabilities decrease by Rs.1000/- only
• Liabilities increase by Rs.1000/- Assets decrease by Rs.1000/-
• Liabilities decrease by Rs.1000/- Assets decrease by Rs.1000/-
• Liabilities increase by Rs.1000/- Assets increase by Rs.1000/-

If Unsecured loan worth Rs.100 lakhs is converted to quasi capital by the company, what all will be the effect on Balance Sheet: I) Total Liabilities will decrease by Rs.100 lakhs II) Total Liabilities will remain same. III) Total Assets and total liabilities will increase by Rs.100 lakhs IV) TOL/TNW will change.

• Only II is correct
• III and IV are correct
• I and IV are correct
• II and IV are correct

If Total Liabilities of a firm = Rs.100, Capital = 50, Term Liabilities = 30. Calculate Current Liabilities.

• 80
• 20
• 50
• 150

If Net worth of a firm = Rs.100, Creditors = 30, Term Liabilities = 20, calculate the total assets of the firm.

• 130
• 120
• 150
• It cannot be determined

Which of the following statement/ s is/ are correct in respect of Final Accounts I) It is prepared after Trail balance is prepared. II) At the end of the accounting period. III) It shows the profit earned or loss sustained by a business entity. IV) It reflects the assets and liabilities at the beginning of the accounting period.

• I & III
• I, II & III
• III & IV
• I & IV