QUESTIONS ON ACCOUNTANCY FOR BANKERS

PAPER 3 JAIIB
91.A bonds redemption value is Rs. 1000 bears
a annual coupon rate of 12% and has a term to
maturity of 3 years. The going market rate for
similar, new investments is 10% what is the
price of this bond in secondary markets?
a) Rs. 1049.44 b)Rs.1059.55 c)Rs.1409.44
d)Rs.999.55
92. What is true about the duration of a bond?
a)Duration is expressed in terms of years.
b)duration of a coupon-paying bond is always
less than its maturity.
c)In zero coupon bonds where periodical
interests are not paid out, duration will be equal
to its maturity.
d)All of the above
93.The duration of a perpetual bond is equal
to 1 + r/r ,where R=current yield of the bond?
a)true

b)false

94 .Zero coupon bonds are those ?

a)which do not make a periodical coupon
payment.

b)these bonds are bought of less than their

face value(at a
discount).
c) Are mostly issued in auctions by treasuries
d) All of the above
95. Debentures are?
a)normal types of bonds issued by corporate.
b)it is unsecured debt, backed only by the name
and goodwill of the company.
c)in the event of the liquidation of the
corporation ,holders of debentures are repaid
before stock holders, but after other secured
creditors.
d)All of the above
96.If the coupon rate and the discount rate or
the expected rates of return are same?
a) The bond will be trading at par
b)bond will trade at a discount
c)bond will trade at a premium
d)coupon rate & discount rate have no
connection with each other.
97.Bill of exchange cannot be?

a)Retained till maturity b) discounted with

bank
c) Endorsed to anybody d) None of these
98.Left side asset a/c is for?
a) recording decrease b) recording increase
c) recording depreciation

d) recording sale

99. Which of the following have a credit

balance?
a) A/c payable b) A/c receivable c) Current A/c
d) Discount A/c
100. Bill receivable endorsed are debited to?
a) Debtor a/c b)Creditor a/c c)Bill payable a/c
d)Bill receivable a/c
101.Straight-line method charges depreciation?
a) same account b)amount is reduced every
year
c) same rate
year

d) amount is increased every

102.Amount received from insurance company

on maturity of joint life policy is distributed
among partners?

a)Equally b)In profit sharing ratio c) Capital

ratio d)Not mentioned
103.At time of dissolution, an asset was taken
by partner should be debited to?
a) partner capital a/c b)Realization a/c c)Asset
a/c d)none
104.Which of the following is a fixed asset?
a)goodwill b)land & building c)cash d)capital
105.Amount of depreciation provided in sinking
fund method when compared to annuity method
is?
a)higher b)lower c)equal d)unpredictable
106.Clerical error includes?
a)error of omission b)principal error
c)error of commission d)both a&c
107.Capital expenditure relate to:?
a)wages of construction b)repair of machinery
c)payment of wages to Mr. X d)both a&b
108.In partnership aim of joint life policy is?
a)make profit

b)sufficient cash to settle claim of deceased

partner
c)strength financial position
d)none
109.Revenue expenditure are?
a)day to day expenditure
b)monthly c)yearly expenditure d)half yearly
120.Drawings do not include?
a)payment of rent for proprietor residence
b)goods taken by proprietor
c)amount withdrawn from bank
d)amount withdrawn from bank for domestic
use
121.Nominal capital is?
a)part of authorized capital issued
b)maximum amount of share capital which
company is authorized to issue
c)Amount of capital actually applied for
d) Amount of capital actually paid
122.Profit & loss a/c shows?

a)Nominal a/c b)Real a/c c)personal a/c d)both

a&b
123.Bad debts are..for business?
a)loss b)revenue c)expense d)expenditure
124.Value of asset can become zero in
.method?
a)straight line b)Written down c)sinking fund
d)insurance policy
125.Depreciation is calculated on . Of
asset.?
a)cost price b)market price c)book value
d)invoice price
126.The amount realized from sale of obsolete
asset is?
a)scrap value b)residual value c)both a&b
d)neither a nor b.
127.If last installment is not paid, seller
can..the goods?
a)take away b)not retain c)sale d)return
128.Interest suspense a/c is shown in?
a)trading a/c b)balance sheet c)profit & loan a/c
d)venture a/c

129.Account sale statement shows?

a)gross sales b)expenses incurred c)bills
expected d)all above
130.Relationship of consignor and consignee is?
a)principal/agent b)partner c)share holder
d)members
131.Parties involved in joint venture called ?
a)Co-ventures b)Co-owners c)shareholder
d)both a&b
132.Net worth of business mean?
a)equity capital b)total asset c)fixed asset
d)total asset-total liability
133.What is tangible net-worth of a firm?
a)capital only b)bank OD c)capial+reserve &
surplus-intangibles
d)debtors
134.In a banks balance sheet bad debts and
provisions for doubtful debts are shown under?
a)loans and advances b)provisions c)reserves
d)contingent liabilities
135.Capital expenditure relate to?

a)wages of construction b)repair of machinery

c)payment of wages to mr.X d)both a & b
136is an example of contingent
liability ?
a)bank guarantee b)deposits c)loans and
advances d)provisions
137.Nominal capital is ?
a)part of authorized capital issued
b)maximum amount of share capital which
company is authorized to issue
c)amount of capital actually applied for
d) amount of capital actually paid for
138.Profit & loss a/c shows?
a)nominal a/c b)real a/c c)personal a/c d)both a
&b
139.Bad debts are..for business?
a)loss b)revenue c)expense d)expenditure
140.Bonus shares are issued to?
a)existing share holders b)new share holders

c)holders of partly-paid up shares d)none of the

above
141.Account sale statement shows?
a)gross sales b)expenses incurred c)bills
accepted d)all above
142.Relationship of consignor and consignee is?
a)principal/agent b)partner c)shareholder
d)members
143.Parties involved in joint venture are called/
a)Co-ventures b)Co-owners c)shareholder
d)both a & b
144.Net worth of business means?
a)equity capital b)total asset c)fixed asset
d)total asset- total liability
145.The balance of petty cash a/c is shown as?
a)expense b)asset c)loss d)revenue
146.If BRS is prepared with balance of cash
book, it will show..per pass book?
a) balance b)overdraft c)both a & b d)Either a or
b
147.Who is the debtor?

a)a person from whom the firm has made credit

purchases
b)a person to whom goods have been sold on
credit
c)the owner d)bank
148.Interest allowed on capital of a partner is
calculated on?
a)opening capital b)capital at end
c)average capital d)capital less drawing
149.Goodwill means..?
a)value of reputation of the firm
b)good wishes of the partners
c) good wishes of the customers
d)type of will made with good intentions
150.Debit side of partner capital a/c consist of?
a)drawing b)interest on drawing c)loss
transferred d)above all
151.If a bill made on 25th may matures after 4
months,then maturity date will be?
a)26thsept. b) 25thsept. c)28thsept. d)1stsept.

152.Double entry system is based on ?

a)somebody loss=to somebody gain
b)every debit equal to every credit
c)what comes in is=to what goes out d)all of
the above
153.Capital at end is Rs,21500, drawings are Rs
4,000 and profits given to partner is equal to Rs
6000 then opening capital is equal to?
a)14000 b)19500 c)20000 d)14500
154.Balance sheet contains only personal and
real accounts?
a)true b)false c)none of the above d)a and b
155.Goods lost by fire should be credited to?
a)purchase a/c b)goods lost by fire a/c
c)sales a/c d)no entry.