MCQ'S on Trial Balance (Accountancy)

Trial Balance MCQs

1. 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

Answer: B

2. In the books of account if a transaction is completely deleted, will it affect the trial balance?

A) No

B) Yes

C) A transaction cannot be omitted

Answer: A

3. What is used in preparing trial balance?

A) Specialized Journals

B) Balance Sheet

C) Ledger Accounts

D) General Journal

Answer: C

4. What is the trial balance used?

A) It is a financial statement

B) It records balances of a balance sheet

C) It doesn’t contribute to the accounting cycle

D) It records balances of accounts

Answer: D

5. When debit balance is equal to credit balance then the trial balance means

A) Account balances are correct

B) Mathematically Capital+Liabilities=Assets

C) No mistake in recording transactions

D) No mistake in posting entries to ledger accounts

Answer: B

6. When is trial balance prepared?

A) At the end of an accounting period

B) At the end of a year

C) Frequently during the year

D) At the end of a month

Answer: A

7. Which items influence the trial balance agreement?

A) Deposit in transit

B) Compensating errors

C) Complete omission of a transaction

D) Partial omission of a transaction

Answer: D

8. When credit balances = debit balances, the trial balance check and shows ____________ . It also indicates that there were no errors made during posting and recording and posting.

A) Understatements of Balances

B) Errors of Commission

C) Arithmetic Accuracy

D) Omissions of Economic Events

Answer: C

9. Which of the following account with normal balance is shown at the debit side of a trial balance?

A) Creditors account

B) Unearned income account

C) Rent income account

D) Cash account

Answer: D

10. In trial balance, which accounts with normal balance is recorded at the credit side?

A) Bank account

B) Equipment account

C) Cash account

D) Accrued expenses account

Answer ; D 

11.  Which of the following errors are not disclosed by Trial balance 

A) Compensating errors 

B) posting to the wrong account

C) twice entry in the ledger 

D) All of the above.

Answer : D

12. Which of the following is correct order 

A) Ledger-> Journal - >Trial Balance 

B) Journal -> Ledger -> Trial Balance 

C) Both A & B are possible 

D) NOTA 

Answer : B

13. There are ...types of trial balance 

A) 4

B) 3

C) 2

D) NOTA 

Answer :B 

14. Suspense account in the trial balance is entered in 

A) Balance sheet 

B) Cash book

C) statement sheet

D) NOTA

Answer : A

15. Which errors are deduced by trial balance

A) incorrect amount entered in Journal

B) Errors of complete omissions

C) Errors or principle

D) Clerical errors 

Answer :- D

YOUR JOURNEY depends on foot not upon luxury , destination  is same ....but ways to connect goals differ by ratio of 9:11.@ AJIT SINGH 

By AJIT SINGH.

To be continued....

VITAMINS

• Vitamin is an organic compound (Bio-molecules) which are required in small amounts for normal metabolic processes. 
• Vitamin provides no Calorie .i.e they neither supply energy nor help in building tissues of the cells , they only participate in biochemical reactions taking place in cell.
• Vitamins are not synthesized in our body , they therefore must be supplied in the food.However,  Vitamin D- may be supplied via food or can be synthesized or produced in skin by irradiation  of ergosterol ( a sterol present in our body ) with UV rays of sunlight 
• Vitamin K- is synthesized in our Colon by the bacteria 
• Vitamin B12- is present in only animals & not in plants. 
• 
  

Discovered by :- FG Hopkin 

 VITAMINS :-( Latin , Vita= life )

Term Coined by :- C Funk - The father of Vitamins 

So far 25 vitamins are discovered & divided into two broad types based upon solubility 

1) WATER SOLUBLE VITAMINS -Vitamin B-Complex & Vitamin C 
2) FAT SOLUBLE VITAMINS:- Vitamin A, D, E &  K 

FAT SOULBLE VIT.	DEFICIENCY DISEASE	CHARACTERISTICS	SOURCES
Vit. A (RETINOL )	Nyctalopia(night-blindness) , Hyperkeratosis, Keratomalacia	Promotes growth & vision & increases resistance to diseases.	Milk & Milk Products , fish, Carrots, green vegetables, Mangoes , sweet potato etc.
Vit. D ( Calciferol )	Rickets & Osteomalacia	Also Called – Sunshine vitamin or Anti-rachitic  or Ergocalciferol ) .It controls metabolism of K & P.	Fruits & vegetables, Fish , milk , meat etc
Vit. E ( Tocopherols ) Anti-sterility vitamin	Loss of Sexual power of reproduction	Soluble in fat & oils. Promotes hair gain, sexual power, skin tuning etc	Eggs, milk, fish , cotton seed oil, peanut etc
Vit. K ( Phylloquinone or Anti-haemorrahagic )	Haemorrahage, shortening BT &lengthening  CT	Sensitive to light & alkali	Green vegetables , Carrot tops, alfalfa etc

Water soluble Vitamin	Deficiency Diseases
Vit. B1( Thiamine, aneurin, antineuritic vit.)	Beri-Beri , Wernicke-Korskoff syndrome,
Vit. B2( Riboflavin or lactoflavin )	Cheilosis
Vit.B3( Niacin & Nicotinic Acid)	Pellagara, glossitis
Vit. B5( pentothenic acid)	Achromotrichia( premature graying of hair)
Vit. B6( Pyridoxine, Adermin )	Dermatitis, Anaemia(bloodlessness) , Pellagara(shrivelled skin) , Insomnia, irritability –mental disorder etc.
Vit. B7( Biotin )	Dermatitis, enteritis, anaemia
Vit. B9( Folic acid)	Megablastic anaemia & birth defects
Vit. B12( Cyanocobalamin )- It consists of  Co(cobalt)  & Corrin Rings	Pernicious anaemia , inflammation of tongue & mouth
VITAMIN C ( Ascorbic acid )	Scurvy (bleeding of gums- Sailer’s disease) , Pyorrhea( loosening & bleeding of teeth )

Vitamins remain stored in body to fight out disease . In balanced diet all the important nutrients are available in sufficient quantity. Eat healthy & stay wealthy. 

Drainage system of J&K

Rivers, lakes & Glaciers of J&K 

The drainage system of J&K consists of rivers, lakes & glaciers. There are many rivers , lakes & glaciers in J&K. First we discuss the rivers of J&K :-

RIVERS IN JAMMU DIVISION 

1.Chenab 

2. Marusudar 

3.Tawi 

4. Ravi 

5. Ujh 

Rivers	Origin	Remarks
Chenab ( Chandrabhaga / Asikni)	Baralacha La Pass(Lahaul & Spiti ) Chandra & Bhaga meets at Tandi (Lahaul Spiti, HP)  Chamba-  Kishtwar Thathri-Doda- Ramban-Akhnoor- Sailkot -Pakistan - Indus -Arabian sea	960Km (600Km approx In India) HEP- Baglihar, Dul Hasti, Pakal Dul, Rattle, Salal,
Marusudar	Biggest right bank tributary of Chenab Origin-lahaul valley
Ravi( Iravati /Parushni /Hydraotes)	Bara Bangal , Dhauladhar , H.P	720Km( 450Km ) Ranjit sagar Dam
Tawi ( suryaputri)	Kailash Kund, bhaderwah	140Km HEP- Chenani
Ujh	Kailash mountains(near Bhaderwah hills(Seojdhar)  , the part of Pir Panjal range)	65km in J&K

Kashmir Rivers 

1.Jhelum(Vitasta/ Vyath) 177km -originated from Verinag Anantnag. It is lifeline of Srinagar . It has 24 tributries . The important ones are- Sindh, Pohru, Vishow, Rambaira etc 

2.Liddar:-originated from Kolahoi Glacier , phalagam. It covers length of 73Km in kashmir valley .It has two main tributries - Lidder East & Lidder West 

. 

Ladakh Rivers:-

Rivers	Origin	Other remarks
Indus	Kailash range in Tibet , Mansarovar	Trubutries- Shyok, Suru, Zanaskar, jhelum , Chenab, Ravi, Beas & Sutlej
Kishanganga(Neelam )	Drass(Kargil)	Meets jhelum at Domal,  Muzzafarabad Tributries- Sindh & lidder
Shyok( River of Death)	Rimo Glacier a part of Siachen glacier Penzella Glacier	Tributaries- Chang Chen Mo, Galwan , Nubra & Saltroo It joins Indus at Skardu city , Pakistan
Suru	Machoi Glacier , Zoji la pass	Tributries- Shafat Nala
Drass	Siachen glacier	Tributries- Mashko & Gomru river
Nubra	Siachen glacier
Doda	Drang Drung glacier , Pensi La

To be Continued ..... 

J&K Panchayati Raj Act, 1989 :-

Panchayati Raj in J&K is a symbol of democratic decentralization. It is system wherein , local-government functions for the development of people at local level & provides effective participation to the people.

The J&K PRA, 1989 was passed in March, 1989. In July, 1989, the Governor of the state(then)  gave his assent to the bill. This act implies the promotion of PR in J&K. It provides a three-tier model consisting of:-

SOURCE_ FROM INTERNET 

1.Halqa Panchayat (Village Level) 
2.Block Development Council (Block Level) 
3.District Planning & Development Board ( District Level)

Total Chapters= 15

Total sections = 58

Total schedules= 6  

Besides these , the act also provides a Panchayat Adalat for every Halqa(Village).

This act was amended in 2004,2011,2013 & 2018 

HALQA PANCHAYAT :- 

Chapters:- I - V 

Chapter 1- Important Definitions under section 2
              1-A Halqa Majlis( Gram Sabha) & Ward Majlis( Ward Sabha) 

Chapter 2- Provisions of Halqa Panchayat 

Chapter 3- Power & functions of Halqa Panchayat 

Chapter 4- Property of Halqa Panchayat 

Chapter 5- Conduct of Business 

CHAPTER 1-IMPORTANT DEFINITION IN ACT :-

Halqa- refers to area of village or villages that may be determined by government form time to time 

Halqa Panchayat- refers to HP constituted under section 4 of this act 

Panch - refers to member of HP -elected or nominated & belong to the area of village & must be rolled in electoral list.

Panchayati Adalat- means a adalat constituted under section 47 of this act for  the purpose of trail of suit & cases . Section 2(n).

Block- refers to area containing number of Halqa panchayats- Section 2(a) 

Block Development Council- refers to council constituted under section 27 of this act 

Chairman - means chairman of -Panchayat Adalat, BDC & DPDB 

Vice-Chairman- means Vice-chairman of BDC & DPDB 

DPDB- refers to Board constituted under section 45 of  this act, at district level that comprise of number of blocks. 

Ward Majlis & Halqa Majlis 

Chapter-1A deals with Ward majlis ( ward Sabha) & Halqa majlis( Gram sabha)

• Halqa Majlis  ( 3-C) (1) 

Every Halqa panchayat has Halqa Majlis -comprising of all the persons whose names are included in the electoral roll for such HP. 

There shall be at least two meeting of HM every year (3-C) (4) 

Functions of HM :- (3-D) 

• To Conduct social audit 
• To approve plans , programs & projects for social & economic development
• To plan & manage minor water bodies
• To exercise control over institution & functionaries in all social sector. 

Ward Majlis :-  

All adult persons whose names are included in the electoral roll constitute ward 

Functions of WM (3-B) 

hold -Three meeting per year 

• To promote harmony & unity , literacy , education , health , childcare, nutrition 
• To assist the activities of parent teacher -teacher associate
• To render assistance in the effective implementation of development scheme. 

some important sections related with HQ:-

• Section 4(3)- deals with membership. The total no. of members of HP is from 7-11-including sarpanch. 
• Section 5- Term of office of sarpanch= 5yr
• Section 6- Disqualification for membership-
• Section 7- Removal or resign of Sarpanch & Naib sarpanch from office
•  Section 11-Resignation of sarpanch ,Panch & Naib sarpanch 
• Section 13- Powers & functions of HP 
• Section 14- Funds of HP 
• Section 24(1)- One meeting of HP per year
• Section 25- Powers & functions of sarpanch & Naib Sarpanch 

BLOCK DEVELOPMENT COUNCIL (BDC) 

• Chapter VI - IX

Chapter 6- Provisions of BDC
chapter 7-Powers & functions of BDC
chapter 8-Property & finance of BDC
Chapter 9- Conduct of business of BDC

• Sections:- related with BDC 
• Section 27:- deals with the constitution of BDC
• Section 27(3) - composition of BDC 
• Chairman & Vice Chairman> All sarpanch in block > 1/3 of reveseved seats for Sc/ST/Women-in case in not elected then 2 persons will be nominated by the prescribed authority then 
• Section 29- term of  office of Chairman of BDC= 5 yr
• Section 30- Powers & functions of BDC
• Section 31- Powers & functions of the chairman & vice-chairman of BDC 
• Section 34- Property & finance of BDC
• Section 35 -conduct of business of BDC 

ELECTIONS 

Chapter X- Inserted in 2011 by JKPRA, 2011 The act deals with elections & State election Commission 

• Section 36- -The state election commission is the election authority which has the responsibility of superintendence , direction & control of the preparation of electoral rolls for all general elections 
•  Section 36(A)- Tenure of office of SE commissioner =5yr or 65 years of age 
• Section 36(B)- removal of SEC 
• Section 36(D) - Powers & functions of SEC 

DISTRICT PLANNING & DEVELOPMENT BOARD (DPDB):-

Chapters 11- Constitution of DPDB 

Chapter 12- Powers , functions & finance of DPDB

SECTION Related with DPDB 

Section 45 - deals with constitution of DPDB 

Section 46- Powers & functions of DPDB 

Composition of DPDB:-

All chairman of DBC of District 

M.P & MLA of the Area

Chairman of town area committee of all district 

President of Municipal Corporation 

CHAPTER XIII_ Panchayat Adalat :-

Every HP has Panchayat Adalat-that consists of 5 members to be nominated by Government on recommendation of HP 

The age of members must be 30 yrs

The quorum which is required to conduct the a meeting is 3 members.

IMPORTANT SECTION 

• Section 48- Deals with composition of panchayat Adalat
• Section 56- deals with the criminal jurisdiction of panchayat Adalat. 

All decisions taken by Panchayat Adalat are null & void in front of Court. 

 AMENDMENT (s) :-

JKPRA,2004- amends reservation for SC/ST for HP. It includes 1/3 Panch seats for women candidates(including SCs & STs women seats) will be filled by the direct election. 

JKPRA, 2013 - amends section 28 of JKPRA-1989 -includes 1/3  women reservation of the total number of offices of chairman of BDC in every district  

Panchayat raj rules, 1996 -The section 80 of J&K PRA, 1989 made details of rule, powers & functions, finance & election for various local self government bodies. Now, it is divided into 11 chapters 

Introduction to Economics -Concept & Principles

Definition of Economics :- 

Adam Smith (father of Modern Economics ) was a Scottish philosopher, widely considered as the first modern economist. Smith defined economics as “an inquiry into the nature and causes of the wealth of nations.”

Lionel Robbins defined economics as. “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses’’

Samuelson's Definition (Modern Definition of Economics) According to Samuelson, 'Economics is a social science concerned chiefly with the way society chooses to employ its resources, which have alternative uses, to produce goods and services for present and future consumption'.

A.J.Brown, Economy is a system by which people get a livelihood & satisfy their wants.’

CONCEPT OF ECONOMICS:-

Economics is a science as well as art. As science, the nature of economics can be studied with respect to following two concepts:-

1.    POSITIVE SCIENCE

2.    NORMATIVE SCIENCE

Positive Science	Normative science
·         It is confined to stating causes & effect relationship between two related variables ·         Based on data & facts ·         Descriptive ·         Describes economic issues ·         Statements can be tested Or proved	·         It is about viewpoint & decisions/opinions whether certain economic events are desirable or not ·         Based on opinions & values ·         Narrow ·         Provides solutions  based on value ·         Statements Can’t be tested
Asks - What are the causes of unemployment?	Asks – How can unemployment be reduced in the country?
Why prices are rising? Verifiable facts /figures	How can be prices be controlled? Was demonetization justified? What should be…. What ought to be … Facts not verified at all.

SUBJECT MATTERS OF ECONOMICS:-

Subject matter of economics is broadly divided into two categories:-

i) Microeconomics & ii) Macroeconomics

Microeconomics is the study of individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments. While these two branches of economics appear to be different, they are actually interdependent and complement one another. Many overlapping issues exist between the two fields.

Variables:-

Microeconomics	Macroeconomics
Individual markets	Whole economy(GDP)
Effect on price of a good	National income
Individual labour market	Inflation & deflation
Individual consumer behaviour	Employment /unemployment
Supply of good Also known as Price theory  Father :- Adam Smith	Aggregate demand & Supply; production & consumption Also known as Theory of income & employment.  Father:- JM Kenyes

Vital theories or principles of Economics :-

MICROECONOMICS

• Theory of Consumer behavoiur & producer behaviour 
• Theory of price 

MACROECONOMICS

• Theory of multiplier 
• Theory related to equilibrium level of output & employment
• Theory related to inflation & deflation  

The Principles of Economics:-   Greg Mankiw, in his popular textbook Principles of Economics, listed Ten Principles that supposedly represent the heart of economic wisdom today. Here they are:

1. People face trade-offs
2. The cost of something is what you give up to get it
3. Rational people think at the margin
4. People respond to incentives
5. Trade can make everyone better off
6. Markets are usually a good way to organize economic activity
7. Governments can sometimes improve market outcomes
8. A country’s standard of living depends on its ability to produce goods and services
9. Prices rise when the government prints too much money
10. Society faces a short-run tradeoff between Inflation and unemployment.

Types of Economy :-

• Capitalist Economy :- Where prices are determined by demand & supply. It is associated with the term ‘Laissez –faire’
• Mixed Economy:- Where public & private sector exists together in national economy
• Closed Economy:- Where a country having no imports & exports
• Socialist Economy or Planned Economy:- A socialist economy is a system of production where goods and services are produced directly for use
• Parallel Or Block Economy:- makes the monetary policies less effective
• Dual Economy:- is a mixture of traditional agriculture sector & modern industrial sector.

Facts about Indian ECONOMY_

·         The Indian Economy is characterized by predominance of agriculture, low per capita income & massive unemployment.

·         It is developing market economy. India has labour surplus economy

• GDP =  $ 3.202 trillion (nominal 2020 est.)- 5^th Rank
•         = $ 11.321 trillion (PPP, 2020 est.)- 3^rd Rank
• GDP PER CAPITA  =   $ 2,333(nominal , 2020 est)
•                                 = $ 9027(PPP, 2020 est.)
• GDP SECTOR WISE :- AGRI( 15.4%) , Industry ( 23%) , Services( 61.5%)   - est. 2017
• Ease of doing business rank = 63^rd ( 2020)
• Human Development Index= 129^th (2018)
• Per capita income :- 139^th rank by GDP(nominal ) & 118^th rank by GDP(PPP) in 2018 .
• GDP Growth rate :- 2014-2018= 6-7%

                                 :- 2019-20f = 4.2 %

Important Facts :-

·         Dadabhai Naoroji was the exponent of the theory of “ Economic Drain’ of India during British rule.In 1867 , he put forward the ‘ Drain of wealth ‘ . He mentioned the theory in his book “ Poverty & unBritish  rule in India’

·         Ch.Charan Singh – Wrote the famous book – Indian Economy : A Gandhian Blue print.

Economic Nightmare of India-its causes & cure

Co-operative farming X-rayed

·         Amartya Sen :- ( Ist Indian who won Nobel prize in 1988 for his contribution for welfare economics, awarded Bharat ratna  )

                   Wrote books  :- Idea of Justice  &    Development as freedom

·         Nobel prize in economics established in 1968 , Presented by Royal Swedish Academy of Sciences , Stockholm , Sweden

FIRST NOBEL price : 1969 Ragner Frisch(Norway) & Jan Tinbergan( Netherlands)

2019 Nobel prize - Michael Kremer(American)  , Abhijit Banerjee( Americian-indian origin)  & Esther Duflo (American )

2021 Nobel Prize :-

David Card

“for his empirical contributions to labour economics”

and the other half jointly to

Joshua D. Angrist & Guido W. Imbens

“for their methodological contributions to the analysis of causal relationships