🔧 Repaired MCQs — the 107 questions damaged in conversion

Answers: from the book's own answer-key tables (599 of 600 parsed; only Q532 has no key).

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Ch 10 — Trial Balance (Q322–328)

322. After the preparation of ledger, the next step is the preparation of a) Trading account b) Trial balance c) Journal d) Profit and loss account — Ans: B

323. The trial balance contains the balances of a) Only personal accounts b) Only real accounts c) Only nominal accounts d) All accounts — Ans: D

324. Which of the following is/are the objective(s) of preparing a trial balance? a) Serving as the summary of all the ledger accounts b) Helping in the preparation of final accounts c) Examining arithmetical accuracy of accounts d) All of the above — Ans: D

325. While preparing the trial balance, the accountant finds the total of the credit column is short by ₹200. This difference will be a) Debited to suspense account b) Credited to suspense account c) Adjusted to any debit balance d) Adjusted to any credit balance — Ans: B

326. A list which contains balances of accounts to know whether the debit and credit balances are matched is a) Journal b) Day book c) Trial balance d) Balance sheet — Ans: C

327. The account which has a debit balance and is shown in the debit column of the trial balance is a) Sundry creditors account b) Bills payable account c) Drawings account d) Capital account — Ans: C

328. The difference of the totals of both debit and credit sides of the trial balance is transferred to: a) Trading account b) Difference account c) Suspense account d) Miscellaneous account — Ans: C

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Ch 15 — Bank Reconciliation Statement (Q350–356)

350. A bank reconciliation statement is prepared by a) Bank b) Business c) Debtor to the business d) Creditor to the business — Ans: B

351. A bank reconciliation statement is prepared with the help of a) Bank statement b) Cash book c) Bank statement and bank column of the cash book d) Petty cash book — Ans: C

352. A debit balance in the bank column of the cash book means a) Credit balance as per bank statement b) Debit balance as per bank statement c) Overdraft as per cash book d) None of the above — Ans: A

353. A bank reconciliation statement is prepared to know the causes for the difference between: a) Cash column of cash book and bank column of cash book b) Cash column of cash book and bank statement c) Bank column of the cash book and the bank statement d) Petty cash book and the cash book — Ans: C

354. When money is withdrawn from the bank, the bank a) Credits customer's account b) Debits customer's account c) Debits and credits customer's account d) None of these — Ans: B

355. Balance as per cash book is ₹2,000. A bank charge of ₹50 debited by the bank is not yet shown in the cash book. What is the bank statement balance now? a) ₹1,950 credit balance b) ₹1,950 debit balance c) ₹2,050 debit balance d) ₹2,050 credit balance — Ans: A

356. Balance as per bank statement is ₹1,000. Cheque deposited but not yet credited by the bank is ₹2,000. What is the balance as per the bank column of the cash book? a) ₹3,000 overdraft b) ₹3,000 favourable c) ₹1,000 overdraft d) ₹1,000 favourable — Ans: B

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Ch 2 — Depreciation & Basic Terms (Q364–370)

364. Depreciation is caused by a) Lapse of time b) Usage c) Obsolescence d) a, b and c — Ans: D

365. Depreciation is the process of a) Allocation of cost of the asset over its useful life b) Valuation of assets c) Maintenance of an asset in a state of efficiency d) Adding value to the asset — Ans: A

366. For which asset is the depletion method adopted for writing off cost? a) Plant and machinery b) Mines and quarries c) Buildings d) Trademark — Ans: B

367. 🚩 A depreciable asset may suffer obsolescence due to ___ a) Passage of time b) Wear and tear c) Technological changes d) None of the above — Key says: D

🚩 The key looks wrong. Obsolescence is precisely caused by technological change → the defensible answer is C. Go with C in the exam.

368. Which method is efficient if repairs and maintenance cost increases as the asset grows older? a) Straight line method b) Reducing balance method c) Sinking fund method d) Annuity method — Ans: B

369. Depreciation is to be calculated from the date when a) Asset is put to use b) Purchase order is made c) Asset is received at premises d) Invoice is received — Ans: A

370. Residual value of an asset means the amount it can fetch on sale at the ___ of its useful life. a) Beginning b) End c) Middle d) None — Ans: B

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Ch 3 — Accounting Concepts (Q392–397, 404–421 partial)

392. The John Marketing Company provides advertising services to an investment company in year A but receives the advertising fee in year B. It recognises this revenue in year A. This is justified by: a) business entity concept b) revenue recognition principle c) economic entity concept d) going concern concept — Ans: B

393. A company is a going concern if: a) its balance sheet shows a strong financial position b) its income statement shows huge profit c) there is no evidence it will or will have to cease operations in the foreseeable future d) it is a public limited company — Ans: C

394. The business/economic entity concept is applicable to: a) sole proprietorship b) partnership c) corporate form d) all of the above — Ans: D

395. "Revenue is not recognised until it is earned and realised or at least realisable." This belongs to which principle? a) Separate entity concept b) Revenue recognition principle c) Going concern concept d) Conservatism concept — Ans: B

396. Sony rounds Rupee amounts in its financial statements to the nearest ₹1,000. Which concept justifies this? a) Realization concept b) Business entity concept c) Materiality concept d) Historical Cost concept — Ans: C

397. A fixed asset costing ₹1,00,000 is depreciated over its estimated useful life of 10 years. This is related to: a) matching principle b) monetary unit assumption c) full disclosure concept d) None of the above — Ans: A

404. If wages are paid for construction of business premises, ___ A/c is credited and ___ A/c is debited. a) Wages, Cash b) Premises, Cash c) Cash, Wages d) Cash, Premises — Ans: D

405. The process of recording financial data up to trial balance is a) Book keeping b) Classifying c) Summarising d) Analysing — Ans: A

406. Amount spent on increasing the earning capacity is a ___ expenditure. a) Capital b) Revenue c) Deferred revenue d) Capital Loss — Ans: A

407. Change in the capital A/c of the proprietor may occur due to ___ a) Profit earned b) Loss incurred c) Capital introduced d) All of the above — Ans: D

408. Provision for discount on debtors is calculated on the amount of debtors a) Before deducting provision for doubtful debts b) After deducting provision for doubtful debts c) Before deducting actual bad debts and provision d) After adding actual bad and doubtful debts — Ans: B

409. Value of goods withdrawn by the proprietor for personal use should be credited to ___ a) Capital A/c b) Sales A/c c) Drawings A/c d) Purchases A/c — Ans: D

410. M/s Stationery Mart will debit the purchase of stationery to ___ a) Purchases A/c b) General Expenses A/c c) Stationery A/c d) None — Ans: A

Logic: stationery is this firm's goods, so it is a purchase, not an expense.

418. Profit and loss is calculated at the stage of a) Recording b) Posting c) Classifying d) Summarising — Ans: D

419. Diwali advance given to an employee is a) Revenue Expenditure b) Capital Expenditure c) Deferred Revenue Expenditure d) Not an Expenditure — Ans: D

It is an advance (an asset/receivable), not an expense.

420. If a car purchased by a car dealer is used for business instead of resale, it is recorded by a) Dr Drawings & Cr Purchases b) Dr Office Expenses & Cr Motor Car c) Dr Motor Car A/c & Cr Purchases A/c d) Dr Motor Car & Cr Sales — Ans: C

421. Cost concept basically recognises ___ a) Fair Market value b) Historical cost c) Realisable value d) Replacement cost — Ans: B

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Ch 19 & Ch 26 — Audit / Financial System (Q422–424, 439–441)

422. Which is of least concern to an auditor regarding the client's internal control system? a) Efficiency and effectiveness of operations b) Controls related to reliability of financial reporting c) Controls over classes of transactions d) Auditors are equally concerned with each — Ans: D

423. Long-term assets with no physical existence but which are rights having value are a) Current Assets b) Fixed Assets c) Intangible Assets d) Investments — Ans: C

424. The capital market in India is controlled by a) RBI b) NABARD c) SEBI d) IRDA — Ans: C

439. The lender of last resort to the market is the ___ a) Commercial banks b) Indigenous banks c) Money lenders d) RBI — Ans: D

440. The market in which securities with less than one year maturity are traded is a) money market b) capital market c) transaction market d) global market — Ans: A

441. To protect investors and regulate stock exchanges, the Government in 1988 set up a) SEBI b) SIDBI c) RBI d) Bank of India — Ans: A

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Ch 17 & Ch 16 — Single Entry / Partnership (Q442–450)

442. ⭐ Opening statement of affairs is usually prepared to find out the a) Capital in the beginning of the year b) Capital at the end of the year c) Profit made during the year d) Loss occurred during the year — Ans: A

443. The excess of assets over liabilities is a) Loss b) Cash c) Capital d) Profit — Ans: C

444. Which statement is not true in relation to incomplete records? a) It is an unscientific method b) Records are maintained only for cash and personal accounts c) It is suitable for all types of organisations d) Tax authorities do not accept — Ans: C

445. Opening capital ₹10,000; drawings ₹6,000; profit ₹2,000; additional capital ₹3,000 → capital at the end? a) ₹9,000 b) ₹11,000 c) ₹21,000 d) ₹3,000 — Ans: A

10,000 − 6,000 + 2,000 + 3,000 = ₹9,000

446. Which is shown in the Profit and Loss Appropriation account? a) Office expenses b) Salary of staff c) Partners' salary d) Interest on bank loan — Ans: C

447. Under the fixed capital method, which item appears in the capital account? a) Additional capital introduced b) Interest on capital c) Interest on drawings d) Share of profit — Ans: A

All the others go to the Current account.

448. In the absence of an agreement, partners are entitled to a) Salary b) Commission c) Interest on loan (@6% p.a.) d) Interest on capital — Ans: C

449. Profit or loss on revaluation of assets and liabilities is transferred to the capital account of a) The old partners b) The new partner c) All the partners d) The sacrificing partners — Ans: A

450. At admission, goodwill brought by the new partner may be credited to the capital accounts of a) all the partners b) the old partners c) the new partner d) the sacrificing partners — Ans: D

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Ch 24 — Cost Accounting (Q458–476)

458. The branch of accounting dealing with the classification, recording, allocation, summarising and reporting of current and prospective costs is known as a) Financial Accounting b) Management Accounting c) Cost Accounting d) Cost Accountancy — Ans: C

459. Costs are classified between direct and indirect according to classification by a) Nature or Element b) Functions c) Degree of traceability to product d) Change in Activity or Volume — Ans: C

460. When output volume increases, the per unit fixed cost will a) increase in proportion to output b) decrease in the reverse proportion of output c) change but not in proportion d) remain unchanged — Ans: B

461. Which costing method suits a Toy Making Industry? a) Contract Costing b) Process Costing c) Job Costing d) Batch Costing — Ans: D

462. Which is not a technique of costing? a) Marginal Costing b) Process Costing c) Standard Costing d) Budgetary Costing — Ans: B

Process costing is a method, not a technique.

463. Works cost plus administration expenses represents a) Total cost b) Cost of production c) Cost of sales d) Factory cost — Ans: B

464. Prime cost may be correctly termed as a) Sum of direct material and labour with all other costs excluded b) The total of all cost items which can be directly charged to production units c) Total costs incurred in producing a finished unit d) The sum of the large costs in a product cost — Ans: B

473. ___ is the maximum possible alternative earning that might have been earned if productive capacity were put to alternative use. a) Opportunity cost b) Incremental revenue c) Alternative revenue d) None of these — Ans: A

474. An item of cost that is direct for one business may be ___ for another. a) Important b) Direct c) Indirect d) None of the above — Ans: C

475. The total of all direct expenses is known as ___ cost. a) Prime b) Works c) Production d) None of these — Ans: A

476. ___ costs are partially fixed and partially variable in relation to output. a) Variable b) Semi-variable c) Fixed d) Both a and b — Ans: B

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Ch 25 — Budgeting (Q477–485)

477. Which is not an element of the master budget? a) Capital Expenditure Budget b) Production Schedule c) Operating Expenses Budget d) All above — Ans: B

478. Which is not a potential benefit of using a budget? a) Enhanced coordination of firm activities b) More motivated managers c) Improved interdepartmental communication d) More accurate external financial statements — Ans: D

479. Which of the following is a long-term budget? a) Master Budget b) Flexible Budget c) Cash Budget d) Capital Budget — Ans: D

480. Materials become a key factor if a) quota restrictions exist b) insufficient advertisement prevails c) there is low demand d) there is no problem with supplies of materials — Ans: A

481. The distinction between fixed and variable cost is significant in preparing which budget? a) Master Budget b) Flexible Budget c) Cash Budget d) Capital Budget — Ans: B

482. The budget that is prepared first of all is a) Master budget b) Budget with the key factor c) Cash Budget d) Capital expenditure budget — Ans: B

483. Sales budget is a a) expenditure budget b) functional budget c) Master budget d) None of these — Ans: B

484. The entire budget organisation is controlled and headed by a senior executive known as: a) General Manager b) Accountant c) Budget Controller d) None of the above — Ans: C

485. A flexible budget requires a careful study of a) Fixed, semi-fixed and variable expenses b) Past and current expenses c) Overheads, selling and administrative expenses d) None of these — Ans: A

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Ch 23 — Direct Tax (Q513–526, 539–550)

513. Total income-tax liability on total income of ₹52,35,246 of Mr. A, aged 62, would be a) ₹15,79,380 b) ₹14,35,796 c) ₹15,79,377 d) ₹14,35,798 — Ans: A

514. Due date for payment of advance tax — 2nd instalment: a) 15th September b) 15th October c) 15th August d) 15th December — Ans: A

515. Mr. A, aged 68, having no income under "Profits and gains of business or profession" — is he liable for advance tax? a) Yes b) No c) If advance tax liability exceeds ₹10,000 d) None of the above — Ans: B

A resident senior citizen without business income is exempt from advance tax.

516. Total tax liability on total income of ₹51,00,246 of Mr. A, aged 54, would be a) ₹14,69,260 b) ₹15,35,910 c) ₹15,35,904 d) ₹13,96,278 — Ans: A

517. Surcharge is applicable on a) Total Income b) Basic Income tax c) Total tax liability d) Basic Income tax + Cess — Ans: B

518. Income-tax payment made in the Assessment year is called a) Self-assessment tax b) Tax deducted at source c) Advance tax d) None of the above — Ans: A

519. 🚩 How many heads of income are defined in the Income-tax Act? a) 5 b) 7 c) 6 d) 4 — Key says: B (7)

🚩 The key is wrong. Section 14 lists 5 heads — Salaries · House Property · PGBP · Capital Gains · Other Sources → the correct answer is A. (The key appears to have copied the answer to Q503, where 7 is right.)

520. Who administers Income tax? a) CBDT b) CBIC c) CBEC d) Both A and B — Ans: A

521. Burden of tax borne by the consumer is a) Direct tax b) Indirect tax c) Both A and B d) None of the above — Ans: B

522. Income tax is applicable on a) Whole of India b) Whole of India except Jammu and Kashmir c) Whole of India except UTs without legislature — Ans: A

(The source prints only three options for this question.)

523. Which Article of the Constitution provides that tax may be levied only by authority of law? a) Article 265 b) Article 246 c) Article 245 d) None of the above — Ans: A

524. Which section is the charging section of Income tax? a) Section 2 b) Section 4 c) Section 6 d) Section 1 — Ans: B

525. Abusing tax loopholes and manipulating the law against its moral intent is a) Tax avoidance b) Tax Evasion c) Tax Management d) Tax Planning — Ans: A

526. Under new section 115BAC, the tax rate for an individual aged 54 with income ₹8,50,000 a) 5% b) 10% c) 15% d) 20% — Ans: C

⚠️ Dated — this reflects the original 115BAC slab (₹7.5–10 lakh = 15%). The slabs have since been revised; verify against the current Finance Act.

539. Due date of filing return for Mr. A, gross professional receipts ₹75 lakh (PY 2020-21), total income ₹7,50,000: a) 31st July b) 31st October c) 30th November d) 31st December — Ans: B

Receipts exceed the audit threshold → audit case → 31 Oct.

540. M/s ABC HUF, control partly in India and partly overseas, karta Mr. A has never left India. Residential status of the HUF? a) Resident b) Non-resident c) ROR (Resident & Ordinarily Resident) d) RNOR — Ans: C

541. Residential status is determined for the: a) Previous year b) Assessment year c) Accounting year d) Financial year — Ans: A

542. Income tax is a a) Professional tax b) Direct tax c) Indirect tax d) Service tax — Ans: B

543. 🚩 A person aged ___ or more is a super senior citizen. a) 56 b) 60 c) 80 d) 85 — Key says: D

🚩 The key looks wrong. A super senior citizen is 80 years or more → the defensible answer is C. Go with 80.

544. The special tax rates in sec 115BAC for individuals are a) Optional b) Mandatory c) Not applicable for individuals d) Only for senior citizens — Ans: A

545. Rebate of income tax is defined under section ___ a) 81A b) 87A c) 81C d) 87C — Ans: B

546. Assessment year is a period of 12 months commencing from ___ every year. a) 1st March b) 31st March c) 1st April d) 30th April — Ans: C

547. As per the Income-tax Act, "Person" includes a) Individual b) HUF c) Local Authority d) All of the above — Ans: D

548. CBDT stands for a) Central Bureau of Direct Taxes b) Central Board of Direct Taxes c) Citizen's Board of Direct Taxes d) Citizen's Bureau of Direct Taxes — Ans: B

549. An Indian citizen going abroad for employment must stay in India for at least ___ days in the previous year to be a resident. a) 90 days b) 162 days c) 180 days d) 182 days — Ans: D

550. Income received in India is taxable in the hands of a) Resident only b) Resident and ordinarily resident only c) Non-resident only d) All assessees — Ans: D

⭐ Core rule: income received in India is taxable for everyone, regardless of residential status.

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Ch 23 — Indirect Tax / GST (Q551, 573–579)

551. What is the full form of GST? a) Goods and Supply Tax b) Goods and Services Tax c) General Sales Tax d) Government Sales Tax — Ans: B

573. After the introduction of GST, export from India is subject to a) IGST b) CGST plus SGST c) Zero rated d) SGST plus CGST plus IGST — Ans: C

574. Who administers indirect taxes? a) CBDT b) CBIC c) CBEC d) Both A and B — Ans: B

575. Which central tax has been subsumed into GST? a) Central Excise duty b) Service Tax c) CVD on import d) All of the above — Ans: D

576. Which tax applies on supply of goods from Gujarat to Assam? a) CGST b) SGST c) UTGST d) IGST — Ans: D

Inter-state supply → IGST.

577. Can a person who opts for the composition scheme collect tax from the recipient? a) Yes b) No c) Yes, if the recipient is registered d) Yes, if the recipient is unregistered — Ans: B

578. Which code classifies goods and services under GST? a) HSN Code b) SAC/HSN Code c) GST Code d) SAC Code — Ans: B

HSN for goods, SAC for services.

579. Liability to pay tax by the recipient of supply is called a) Output tax b) Reverse charge c) Input tax d) None of these — Ans: B

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♻️ Recovered from the source PDF — Q501–505, 527–530

These were unreadable in MCQs.md; restored here in full.

501. The Income-tax Act came into force in which year? a) 1961 b) 1962 c) 1964 d) 1951 — Ans: B

⭐ Classic trap: the Act was enacted in 1961 but came into force on 1 April 1962.

502. A Panchayat falls under which category of "person"? a) Local Authority b) Artificial Juridical person c) AOP/BOI d) Individuals — Ans: A

503. How many categories of PERSON are defined in the Income-tax Act? a) 6 b) 7 c) 8 d) 5 — Ans: B

Individual · HUF · Company · Firm · AOP/BOI · Local Authority · Artificial Juridical Person.

504. Surcharge rate applicable for a J&K India Private Limited company with total income of ₹12,50,23,400: a) 2 b) 5 c) 7 d) 12 — Ans: D

Domestic company, income above ₹10 crore → 12% surcharge.

505. Assessment year means 12 months starting from 1st April and ending on 31st March — a) Mandatorily b) Not necessary, can be less than 12 months c) Starts when we start earning income d) None of the above — Ans: A

527. Mr. A left India on 12 Dec 2019 and visited India in PY 2020-21: arrived 4 April–30 April; again 5 Sep–12 Dec; again 1 Jan and stayed till 31 March. Determine his residential status. a) Resident and ordinarily resident b) Non-resident c) Resident but not ordinarily resident d) None of the above — Ans: A

528. Compute the tax liability of Mr. A (DOB 1 April 1961), total income ₹6,25,000, eligible deduction ₹1,50,000. a) NIL b) 36,400 c) 11,700 d) 11,250 — Ans: B

⚠️ Dated — depends on the slab year in force. Re-check against the current Finance Act.

529. When does a Finance Budget presented in the Lok Sabha become the Finance Act? a) When passed in both Houses b) When presented in Lok Sabha c) When presented in Rajya Sabha d) When the President gives assent — Ans: D

⭐ Directly matches 2024·Q54 ("Finance Bill becomes the Finance Act when passed by…" → both Houses + President's assent).

530. Mr. A, age 60, total income ₹2,00,000, Chapter VI-A deduction ₹1,00,000. Is he required to file a Return of Income? a) Yes b) No — Ans: A

Filing is judged on income before Chapter VI-A deductions, which exceeds the basic exemption limit.

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🧾 Repair summary

🚩 The three answer-key errors — know these before the exam

❌ The 5 questions still missing

Q51, 78, 81, 82, 127 — their numbering was lost at page breaks in the Part-1 conversion. Their answers are in the key, but the text is not in MCQs.md. Send me the Part-1 MCQ pages (roughly pp. 103–164) and I can restore these too.

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