Closing stock appearing outside the trial balance is shown in: MCQ with Answer and Explanation

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Closing stock appearing outside the trial balance is shown in:

A. Trading A/c debit side and Balance Sheet liability side

B. Trading A/c credit side and Balance Sheet asset side

C. Only in Balance Sheet

D. Profit & Loss A/c only

Answer: Option B

Solution (By JKSSB Mock Tests)

Closing stock is shown in Trading A/c (credit side) by way of deduction from purchases and on asset side of Balance Sheet.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Rectifying an error of entering Rs 800 as Rs 80 in the Sales Book involves:

A. Crediting Suspense A/c by Rs 720

B. Crediting Sales A/c by Rs 720 and Debiting Customer A/c by Rs 720

C. Debiting Sales A/c by Rs 720

D. Debiting Suspense A/c by Rs 720

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Correct Answer: Option B

Explanation:
Since it was undercast by Rs 720 in the original book, both the Customer (Debit) and Sales (Credit) accounts need to be increased by Rs 720.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'National Company Law Tribunal' (NCLT) deals with:

A. Criminal cases

B. Tax disputes

C. Labour disputes

D. Company law matters including insolvency and merger

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Correct Answer: Option D

Explanation:
NCLT adjudicates corporate disputes, mergers, winding up, etc.

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Question #3

An amount paid for 'Goodwill' on purchase of a business is classified as:

A. Current asset

B. Deferred revenue expenditure

C. Intangible asset

D. Fictitious asset

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Correct Answer: Option C

Explanation:
Purchased goodwill is an intangible asset.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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