Practice Accounts Questions and Answers

• XYZ Ltd. has furnished the following details to the bank while seeking working capital finance for the upcoming financial year: • Total Current Assets (T...
• A company follows FIFO method of inventory valuation every year. Which accounting principle is being followed?
• Which of the following types of entities are mandatorily required to adopt Ind AS?
• Under Ind AS 116, which of the following is true for lessees?
• Under Ind AS 16, after initial recognition, an entity can measure PPE using:
• XYZ Ltd. incurred R&D expenses of ₹20 lakhs for developing a new product. The product has not yet reached the commercialisation stage. How should the amo...
• Under the Income Tax Act, 1961, which of the following incomes is exempt from tax in the hands of an individual?
• ABC Ltd., a manufacturing company, undertook a series of transactions during the financial year 2024–25. It purchased a new plant worth ₹1,000 lakh and...
• A company manufactures two products, A and B. The contribution per unit for A is ₹50 and for B is ₹60. Each unit of A requires 4 machine hours, and B r...
• A company has Net Sales of ₹1,000 lakhs, Net Profit of ₹80 lakhs, Total Assets of ₹750 lakhs, and Equity of ₹250 lakhs. Calculate Return on Equity ...
• XYZ Ltd. reported a net profit of ₹120 lakhs for the year ended 31st March 2025. The depreciation for the year was ₹20 lakhs, and amortization of goodw...
• A factory has direct material cost of ₹2,40,000 and direct labour of ₹1,60,000 for a batch of 1,000 units. Factory overheads are absorbed at 75% of dir...
• The following balances are available for a company: Cash: ₹5L, Inventory: ₹12L, Debtors: ₹10L, Short-term investments: ₹3L Accounts payable: ₹8L,...
• A company purchases machinery for ₹10 lakhs and incurs ₹1 lakh on its installation. The accountant records the total ₹11 lakhs under the fixed asset ...
• A company pays insurance premium of ₹24,000 for 12 months in advance in March 2025 for the period January 2025 to December 2025. The accountant records t...
• Which of the following scenarios correctly reflects the going concern assumption?
• A firm has the following details: • Raw material holding: 25 days • WIP: 15 days • Finished goods: 20 days • Receivables: 30 days • Payables: 40 ...
• XYZ Ltd. purchases raw materials for ₹5,00,000 and pays transportation charges of ₹50,000 and GST of ₹90,000. The GST is recoverable. What amount sho...
• Gamma Textiles Ltd. manufactures a single product with the following cost structure: • Selling Price per unit: ₹500 • Variable Cost per unit: ₹300 ...
• Omega Ltd. has idle capacity and receives a special export order for 2,000 units at ₹420 per unit. Normal price = ₹500. Unit variable cost = ₹350. Fi...
• XYZ Ltd. has furnished the following details to the bank while seeking working capital finance for the upcoming financial year: • Total Current Assets (T...
• Section 80EEB of the Income Tax Act provides deduction on:
• The concept of Tax Treaty-Based Exemption (TTB) typically applies when:
• Section 115JAA allows which of the following?
• What is the maximum number of directorships a person can hold in Indian companies as per Companies Act, 2013?
• What is the minimum quorum required for a general meeting of a public company having 10,000 members?
• When a minor admitted to the benefits of a partnership attains majority, within how many months must they decide whether or not to continue as a partner an...
• XYZ Ltd has the following financial data: • Inventory Holding Period: 90 days • Receivables Collection Period: 60 days • Payables Deferral Period: 45...
• A firm reports: • Net sales: ₹500 lakh • Gross profit: ₹125 lakh • Operating expenses: ₹50 lakh • Interest: ₹15 lakh • Tax: ₹20 lakh �...
• A company produces a single product with the following cost structure: • Selling price per unit: ₹500 • Variable cost per unit: ₹300 • Fixed cost...
• A general insurance company reports the following: • Premium earned: ₹100 crore • Claims paid: ₹70 crore • Claims outstanding: ₹5 crore • Com...
• An asset is purchased for ₹10,00,000. Salvage value is ₹1,00,000. Useful life is 5 years. Using WDV @ 10%, what is the depreciation in year 3?
• An insured house valued at ₹40 lakh is insured for ₹20 lakh. A fire causes ₹10 lakh damage. What will be the claim amount under the average clause?
• Given: • Net income: ₹30 lakh • Depreciation: ₹10 lakh • Increase in inventory: ₹5 lakh • Decrease in payables: ₹4 lakh • Increase in rec...
• A fire loss incurred but not reported by balance sheet date is classified as:
• Which entity generally initiates securitization?
• According to the MSME policy, the startup status of a company ceases if its turnover exceeds ____ or it has completed ____ years from incorporation.
• If an MSME moves to a higher category due to reclassification, for how many years can it continue to avail benefits of the previous category (non-tax benef...
• What is the minimum number of members required to form a Private Limited Company in India?
• What is the minimum and maximum number of directors required in a Private Limited Company in India?