SSC CGL Tier-2 28th January 2022 Assistant Audit Officer

In case of precious metals like gold, the revenue is recognised when the gold is mined and not necessarily when it is sold.

In case of sale on instalment basis under hire purchase transactions, cash received in the form of instalment is the amount of revenue recognised.

Accounting systems based on the accural concept is also known as the Mercantile System of Accounting.

The realization concept is related to both revenues and expenses.

A sum of ₹ 500 paid to Mr A's account posted twice in his account.

Not recording a credit purchase of furniture.

Treating a sale of fixed assets as a normal sale.

An amount received from Mr A credited to Mr B's account wrongly.

XYZ Ltd. is negotiating with the customer regarding the supply of goods.

XYZ Ltd. paid ₹10,000 for buying furniture for the shop.

XYZ Ltd. appreciated Mr. A and awarded a bonus of ₹5,000.

XYZ Ltd. availed a discount for prompt payment to its suppliers.

Accumulated depreciation

Purchase of stationaiy

Purchases return

Outstanding salaries

Convention of prudence

Convention of full disclosure

Convention of materiality

Convention of conservatism

Fixed and variable production overheads

Selling and marketing costs

Trade discounts and rebates

Taxes and import duties on purchase of raw material

Profit and Loss Account Dr
To Asset Account

Asset Account Dr
To Depreciation Account

Depreciation Account Dr
To Profit and Loss Account

Depreciation Account Dr
To Asset Account

1 - b, 2 - a, 3 - c

1 - a, 2 - b, 3 - c

1 - c, 2 - b, 3 - a

1 - a, 2 - c, 3 - b

Convention of full disclosure is also known as convention of prudence.

Accounting conventions are established by law.

There is no personal bias in the adoption of accounting conventions .

There is no uniformity in the application of accounting conventions in different enterprises.

deducted from the respective income on the credit side; shown on the liabilities side

deducted from the respective income on the credit side; shown on the assets side

added to the respective income on the credit side; shown on the assets side

added to the respective income on the credit side; shown on the liabilities side