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Principles of Hotel Accountancy Sem II Sample Paper

The document contains sample questions for a Principles of Hotel Accountancy exam, covering various topics related to accounting principles, journal entries, financial transactions, and account types. It includes multiple-choice questions that test knowledge on concepts such as cash books, trial balances, and the double-entry system. The questions are structured to assess understanding of fundamental accounting practices relevant to the hospitality industry.

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Shivakumar Arumugam
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63 views9 pages

Principles of Hotel Accountancy Sem II Sample Paper

The document contains sample questions for a Principles of Hotel Accountancy exam, covering various topics related to accounting principles, journal entries, financial transactions, and account types. It includes multiple-choice questions that test knowledge on concepts such as cash books, trial balances, and the double-entry system. The questions are structured to assess understanding of fundamental accounting practices relevant to the hospitality industry.

Uploaded by

Shivakumar Arumugam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SAI SHIVA EDUCATIONAL TRUST,

ARUN MUCHHALA INTERNATIONAL COLLEGE OF HOTEL MANAGEMENT


PRINCIPLES OF HOTEL ACCOUNTANCY
SEM 2 Sample Questions

1. A short explanation of each transaction is written under each journal entry is


known as _____
a. Statement
b. Narration
c. Explanation
d. Documentation

2. Cash book enters all _________.


a. Cash Transactions only
b. Credit Transactions only
c. Cash and credit transactions both
d. Cash, credit and goods withdrawn transaction

3. Which of the following journal records, “Goods returned by customer”?


a. Purchase Journal
b. Purchase Return Journal
c. Sales Journal
d. Sales Return Journal

4. What is the other name of the Journal Book?


a. Specialized Book
b. Day Book
c. Cash Book
d. Record Book

5. Which of the following is not Subsidiary Book?


a. Purchase Book
b. Sales book
c. Ledger book
d. Purchase return Book
6. Personal accounts are related to:

a. Assets and liabilities


b. Expenses, losses
c. Debtors and creditors
d. Income and Gain
e.
7. In accounts recording is made of :
a. Only financial transactions
b. Only non-financial transactions
c. Financial and non-financial transactions
d. Personal transactions of the proprietor

8. Which of the following transactions is not of financial character :


a. Purchase of goods on credit
b. Purchase of a building
c. Payment of salaries
d. Strike by employees

9. Trial balance is used to check the accuracy of


a. Balance sheet balances
b. Ledger accounts balances
c. Cash flow statement balances
d. Income statement balances

10.“Debit What Comes in, Credit what goes out”, is the rule for which type of
account?
a. Nominal account
b. Real account
c. Personal account
d. Debit Account

11.When expenses are more than Revenue, the firm is in


a. Profit
b. Loss
c. Neutral
d. Not measurable

12.The amount invested by the owner in the firm is known as ____.


a. Capital
b. Drawing
c. Liability
d. Asset
13.Creditors, and Bill Payable are the example of
a. Current asset
b. Current Liability
c. Non-current asset
d. Non-current Liability

14.The objective of ________ is to encourage the debtors to pay the dues


promptly. And this discount is recorded in the accounting books.

a. Trade Discount
b. Cash Discount
c. Buyer Discount
d. Seller Discount

15.“Sold goods on credit”, What are the accounts involved in the Transaction?

a. Sales A/c, Debtor A/c


b. Sales A/c, creditor A/c
c. Sales A/c, cash A/c
d. Sales A/c, goods A/c

16.Select the right example of Representative Personal A/c


a. Amit A/c
b. TMC A/c
c. Salary A/c
d. Outstanding Expense A/c

17.Which of the following is the incorrect principle of Double entry System?


a. In every transaction there are minimum two aspect
b. These aspects involve one account
c. One is receiver and other is giver
d. One is debited other will be credited

18.The expenditure incurred to acquire fixed assets is known as ______


a. Revenue Expenditure
b. Long term expenditure
c. Capital Expenditure
d. Short Tem Expenditure

19.Land, building, Furniture are the examples of _____


a. Current Assets
b. Current Liabilities
c. Non-current assets
d. Non-current Liabilities

20.What are the two accounts involved in, “Interest Received”/


a. Cash A/c, Received A/c
b. Interest A/c, Cash A/c
c. Cash A/c, Income A/c
d. Income A/c, Interest A/c

21.Select the right example of Real account


a. Motor Car A/c
b. Capital A/c
c. Life insurance Corporation A/c
d. Saurabh A/c

22.What is the correct sequence of preparing final accounts?


a. Journal-Trial Balance-Balance sheet
b. Journal-Ledger-Profit & Loss
c. Journal-Ledger-Trial Balance-Profit & loss-Balance sheet
d. Journal-Subsidiary Books-Profit & Loss- Balance sheet

23. Which account will be debited in the transaction, “Returned goods to S &
Co”?
a. Purchase A/c
b. Purchase Return A/c
c. S & Co. a/c
d. Cash a/c

24._______ is the major source of revenue of any business


a. Purchase
b. Sales
c. Interest
d. Commission

25.Sales return appears in Trial balance is deducted from


a. Sales
b. Purchase
c. Cash
d. Capital

26.The amount of goods unsold at the end of the year is called ____________.
a. Opening Stock
b. Unsold Stock
c. Closing stock
d. Waste Stock

27.Statement prepared with the debit and credit balances of Ledger accounts
___________.
a. Trial Balance
b. Ledger
c. Cash Book
d. Profit & Loss Statement

28.Amount invested by the owner in the firm is known as ____________.


a. Loan
b. Equity
c. Capital
d. Debenture

29.To whom business has sold goods and services on credit and amount has not
received-
a. Debtors
b. Creditors
c. Traders
d. Consumer

30.Money spent for purchase or creating of long-term assets such as building,


furniture, machines, vehicles is known as ______
a. Capital Expenditure
b. Revenue Expenditure
c. Deferred Revenue Expenditure
d. Fixed Assets

31.Obligations or debts that are payable within a period of one year is known as
a. Current Liabilities
b. Current assets
c. Expenditure
d. Loan

32.All assets of a firm, which are tangible or intangible, fall under the
category of _______
a. Real account
b. Nominal Account
c. Personal Account
d. Capital account

33.Which of the following is the correct example of Nominal Account?


a. Salary Account
b. Kumar Account
c. ICICI Bank Account
d. Cash Account

34.If the owner withdraws any money or goods from the business for his
personal use, it is known as _____
a. Capital
b. Drawings
c. Loan
d. Profit

35.“Debit the expenses and loss, Credit the profit and Gain” is the rule of
_______
a. Personal Account
b. Nominal Account
c. Personal account
d. Profit & Loss statement
36.Which of the following account is known as asset account?
a. Rent account
b. Wages Account
c. Interest on Income Account
d. Prepaid Salary Account

37.Which are the two accounts involved in the transaction, “Started Business
with Cash”?
a. Business A/c, Cash A/c
b. Cash A/c, Loan A/c
c. Cash A/c, Capital A/c
d. Profit A/c, Cash A/c

38.What are the three columns in the triple column Cash Book?
a. Cash received, Cash paid, Cash due
b. Cash, Bank, Loan
c. Bank, Loan, Capital
d. Cash, Bank, Discount

39.It is mainly for business persons, firms, companiesand there are no limits for
number of transactions.
a. Saving account
b. Recurring Deposit Account
c. Fixed Deposit Account
d. Current Account

40. What is the disadvantage of Double entry system?


a. profit and loss account can be prepared easily by taking together all
the accounts
b. It requires expert knowledge to keep accounts under this system
c. Under this system mistakes and deflections can be detected easily
d. profit or loss of different years can be compared

41.Goodwill, Patent, Trade mark are the examples of ______


a. Current asset
b. Current Liability
c. Non-current asset
d. Non-current Liability

42.The purpose of this discount is to persuade the buyer to buy more goods and
this discount is not recorded in the accounting books.
a. Trade Discount
b. Cash Discount
c. Buyer Discount
d. Seller Discount

43. What is the correct sequence of preparing final accounts?


a. Journal-trial Balance-Ledger
b. Ledger-Trial Balance-Journal
c. Trial Balance-Journal-Ledger
d. Journal-Ledger-Trial Balance

44. The Journal entries are recorded on the basis of ______


a. Amount
b. Name
c. Date
d. Account

45.The entry in which more than one account is debited or more than one
account is credited, is known as ______
a. Single Entry
b. Double entry
c. Compound Entry
d. Multiple entry

46.What are the accounts involved in the transaction, “cash withdrawn by


proprietor for private purpose”?
a. Cash A/c, Capital A/c
b. Capital a/c, Drawing A/c
c. Drawing A/c, Cash A/c
d. Cash A/c, Proprietor A/c

47. A transaction in which Cash A/c and Bank A/c are involved, is recorded on
both the sides of Double Column Cash Book, it is called ______
a. Wrong Entry
b. Double Entry
c. Contra Entry
d. Overdraft Entry

48.“Paid for salaries”, which account in the transaction will be debited?


a. Cash A/c
b. Salary A/c
c. Employee A/c
d. Employer A/c

49.Goodwill is ___________of a business.


a. Asset
b. Liability
c. Income
d. Expenditure

50.Transaction related to ________ is not shown in Journal entries.


a. Trade Discount
b. Cash Discount
c. Sales Discount
d. Purchase Discount

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