ASSOCIATE – IC26 LIFE INSURANCE FINANCE – 21

Que. 1 : Q1) Identify ERRORS OF PRINCIPLE from the following

   1.  a) Goods taken away by the proprietor for personal use not recorded anywhere

   2.  b) The total of sales book was not posted to the ledger

   3.  c) Repairs of newly purchased second hand machinery debited to repairs accounts

   4.  d) Sales to Heena Rs 143 was posted to Meena Rs 143

Que. 2 : Q2) Which of the following statements is true with respect to finalization and verification of ‘cash balance’

   1.  a) A. Supplementary cash book must not be incorporated in the main cash book.

   2.  b) B. Imprest cash system should be followed for huge cash blances.

   3.  c) C. Imprest cash System should be followed for small cash balances.

   4.  d) D. Stamp records fall under ‘cash’ records

Que. 3 : Q3) The debit balance of a personal account would show the

   1.  a) Amount of credit sales

   2.  b) Amount receivable

   3.  c) Amount payable

   4.  d) Cash in hand

Que. 4 : Q4) Cash Book records_________

   1.  a) All cash receipts

   2.  b) All cash payments

   3.  c) All cash receipts and payments

   4.  d) Cash and credit sale of goods

Que. 5 : Q5) Which of the following pair is not related source document on the basis of transactions recorded in the book of accounts?

   1.  a) Purchase of Goods-Supplier’s Invoice

   2.  b) Goods returned-Credit Note issue by Seller

   3.  c) Sale of Goods-Entity’s Invoice

   4.  d) Sale Of Asset-Cheque received from the purchaser