Questions and Answers on Costing and Taxation

1. Opening balance of raw materials 100 units @ 13. In computation of income from house
Rs. 5 per unit. Purchase 200 units Rs. 6 per unit property interest on house build in loan is
and issues 250 units. Value of closing stock under allowed under section
FIFO method is A. 24 B. 22 C. 25 D. None of these
A. 200 B. 250 C. 300 D. 500
14. The rate of standard deduction on net annual
2. The method of pricing materials issues is highly value in case of a rented house property is
useful where the cost of material is very high and A. 10% B. 20% C. 30% D. 40%
the material is bulky is
15. Under which section the assessee is treated
A. FIFO B. LIFO C. Simple Avg. D. None of these
as the owner of a house property?
3. Which department prepare the bill of materials A. U/s 22 B. 24 C. 25 D. 27
A. account dept B. stores dept
16. Dividends are chargeable under the head,
C. R&D dept D. none of these
income from
4. Which losses are normally occurred in case of A. Salary B. house property
production process? C. capital gain D. Other sources
A. normal loss B. abnormal loss
17. Income from lottery
C. both of them D. none of them
A. fully taxable B. 50% taxable
5. Standard time 12 hours. lime taken 10 hours. C. exempt from tax D. none of these
Rate per hour Rs. 40. The bonus under the Halsey
18. Which section the incomes are taxable under
premium plan is
the head income from other sources is
A. 80 B. 60 C. 40 D. 20
A. 55 B. 56 C. 57 D. 59
6. Prime cost includes which of the following
19. How many types of capital assets according to
costs:
Indian income tax act
A. indirect material B. indirect labour
A. 2 B. 3 C. 4 D. none of these
C. direct labour D. staff salary
20. Which of the following is not a capital assets
7. Wages for idle time can be included in
A. Residential House B. Silver ornaments
A. administrative exp. B. selling exp.
C. Debenture of company D. Stock in trade
C. production exp. D. none of these
21. Which of the following is a capital asset?
8. Overhead includes
A. 64% gold bond, 1977 B. 7% gold bond, 1980
A. indirect material B. indirect labour
C. special bearer bonds, 1971 D. none of these
C. indirect expenses D. all of these
22. Deduction from income under the head of
9. Example of fixed expenses is
income from other sources is available under
A. direct material B. office rent
section
C. direct labour D. electricity bill
A. 80C B. 80G C. 10 D. 57
10. Indirect materials+ indirect labour + indirect
23. According to the Indian Income tax act 1961
expenses =
income from house property includes in the
A. prime cost B. works cost
section
C. overhead D. cost of sales
A. 10-14 B. 22-27 C. 28-29 D. 30-35
11. With the increases in production the variable
24. Family pension is taxable under the head
cost per unit is
income from
A. Increase B. Decrease
A. Salary B. Profession
C. Fixed D. none of these
C. capital gain D. other sources
12. Prime costs + works overhead = ………………
A. factory cost B. cost of sales
C. cost of goods sold D. none of these
25. Opening balance 1000 units @ Rs. 46 Per unit. 35. Realised or Unrealised rent of any year will be
Purchases 200 units @ Rs. S0 per unit. Issue 800 taxable under the section
units. Closing stock to be valued under simple A. 23 B. 24 C. 25AA D. None of these
average method at-
36. Municipal Tax of a house in Kolkata is Rs.
A. Rs 48/unit B. 46/unit
5,400. Municipal Tax @ 15% on Municipal Value.
C. 50/unit D. 46.67/unit
What is the Gross Municipal value of house in
26. Method which is not applicable for frequently Kolkata?
calculating market price A. Rs. 40,000 B. Rs. 54,000
A. Weighted Average Price Method C. Rs. 36,000 D. None of these
B. Simple Average Price Method
37. Net Annual value of Let out house property is
C. Both of these D. None of these
Rs. 2,00,000 and Interest on house building Loan
27. In weighted average cost price method, the Rs. 30,000. Income from house property will be
value of closing stock is- A. Rs. 1,20,000 B. Rs. 1,10,000
A. Realistic B. Unrealistic C. Rs. 1,00,000 D. None of these
C. Complicated D. Both A and B
38. Under the head Income from house Property,
28. The documents on the basis of which entries Income from Local Authority house is-
are made in the stores Ledger are A. Not taxable B. Taxable
A. Goods Received Note C. 50% taxable D. None of these.
B. Material Requisition Note
39. The section of Income Tax Act, 1961 deals
C. Material Return Note
with the meaning of term transfer of capital
D. All of these
assets is-
29. In a situation of rising market price of raw A. 2(47) B. 2 (14) C. 2(42 A) D. 2(29 A)
material the type of pricing method which is
40. Any agricultural land will be considered as
appropriate is-
capital assets if its distance from Municipal area
A. First In First out B. Simple Average
is –
C. Last In First out D. Weighted Average
A. 4 km B. 6 km C. 8 km D. 10 km
30. Under Halsey Premium Plan, Bonus is to be
41. Loss for transfer of capital assets may be
given at the rate of
assessed against
A. 10% of time saved B. 20% of time saved
A. Income from business
C. 50% of time saved D. Not in a definite rate
B. Income from other source
31. The limitation(s) of Rowan Premium Scheme C. Capital Gain D. None of these
is/are-
42. Which of the following is not a capital Assets
A. Complexity
under Income Tax Act 1961?
B. Less Bonus for high efficiency
A. House B. stock-in-trade
C. Lack of Worker’s Unity
C. Gold D. Share
D. All of those
43. Wining from Lottery (net after deduction of
32. Standard time 40 hours, actual time 32 hours,
tax 30%) Rs. 14,000 Gross Taxable Income from
wages per hour Rs 15. Bonus under Halsey
Lottery will be.
scheme is
A. Rs. 18200 B. Rs. 20,000
A. Rs. 60 B. Rs. 34
C. Rs. 9,800 D. None of these
C. Rs 120 D. None of these
44. Dividend received from a Indian Company is
33. Raw Material Cost is
Fully exempted in which section of Income Tax
A. Semi Variable Cost B. Fixed Cost
Act?
C. Variable Cost D. None of these
A. 10 (15) B. 10 (34) C. 10 (35)
34. In overhead one can include- D. None of these
A. Indirect material B. Indirect wages
C. Indirect expenses D. All of these
45. Interest on debenture is taxable under the 48. Time-keeping means
head of- A. he keeping of records of the worker being
A. Income from other source B. the keeping of records for actual time taken to
B. Income from business and profession finish a job
C. Capital Gain D. None of these C. The of records of the workers attendance in
and out of the factory
46. Which of the following incomes are to be
D. None of these
charged under Income other source
A. Pension B. Family Pension 49. Ideal time means
C. Interest on bonds D. Both B and C A. Total hours attended minus hours spent for
production
47. FIFO method is suitable
B. Standard time minus total hours attended
A. Materials are slow moving
C. Standard time minus actual time taken
B. material are perishable nature
D. None of the above
C. prices are falling D. All
50. Depreciation of factory furniture is-
A. Factory overhead B. A part of prime cost
C. Selling overhead D. None of these

_______________________________________________________________________________________

1.Answer the following questions: (viii) Which section of the Income Tax Act, 1961
deals with the meaning of the term Long term
(i) Gross annual value in case of self- occupied capital assets?
house property is: (a) 2(14) (b) 2(29A) (c) 2(45A) (d) 2(47)
(a) Standard rent (b) Gross municipal value (c) Fair
rent (d) None of the above. (ix) Winning from lottery (net after TDS and HEC)
₹ 137,600 during P.Y.2022-23, cost of lottery ticket
(ii) In no case, deduction in respect of interest on ₹ 2000, Income from other source is (a) ₹ 1,35,600
loan on self-occupied house (b) ₹ 1,37,600 (c) ₹ 1,98,000 (d) ₹ 2,00,000
property can exceed in a year: (a) ₹ 30,000 (b) ₹
2,00,000 (c) 1/3rd of net annual value (d) None (x) Dividend received from Indian company is
chargeable under :
(iii) Answer scripts evaluation fees received from (a) Income from other sources (b) Fully exempted
employer’s school is chargeable under: (c) Foreign Business income (d) None
(a) Salary (b) Income from profession (c) Income
from other sources (d) None (xi) Type of capital assets are—
(a) 1 (b) 2 (c) 3 (d) 4
(iv) Which of the following is a capital asset?
(a) Business Motor car (b) Stock in trade (c) Gold (xii) Family pension received p.m. ₹ 18,000,
bond (d) None taxable amount is:
(a) ₹ 1,44,000 (b) ₹ 2,16,000 (c) ₹ 2,01,000 (d)
(v) A land was purchased on 15.7.2020. It was sold None
on 15.7.2022. It will be coming under:
(a) Short term capital gain (b) Long term capital [Ans. (i) (d) None of the above, (ii) (b) ₹ 2,00,000,
gain (c) Both (d)None (iii) (a) Salary, (iv) (a) Business Motor car, (v) (b)
Long term capital gain, (vi) (a) Income from other
(vi) Rent received from sub-letting house is sources, (vii) (b) 32,400, (viii) (b) 2(29A), (ix) (d)
chargeable under: 200000, (x) (a) Income from other sources, (xi)(b)
(a) Income from other sources (b)House property 2, (xii) (c) 201,000]
(c) Salary (d) None.
Answer the following questions:
(vii) GMV ₹ 5,00,000, Municipal tax rate 12% out (i) LIFO method is suitable where:
of which 40% was paid by tenant. Allowable (a) Prices of materials are falling (b) Prices of
Municipal tax is: (a) 24,000 (b) 32,400 (c) 36,000 material are increasing
(d) None (c) materials are of perishable nature (d) None
(ii) Normal idle time is: (a) Controllable (b) Choose the correct alternative :
Avoidable (c) Unavoidable (d) None (i) income from vacant land will be taxed under :
(a) Income from house property (b) Income from
(iii) Time booking hours is________ than time salary (c) Income from other sources (d) None of
keeping hours: (a) higher (b) lesser (c) both (d) these.
None
(ii) How many types of capital assets are there? (a)
(iv) Purchases: 4.12.22 900 units@ ₹ 5 per 2 (b) 1 (c) 3 (d) 4
units,10.12.22 400 units @ ₹ 5.50 per unit, Issued
on 12.12.22 700 units under weighted average (iii) Shares of TATA Steel will be treated as long
method. Cost of materials issued is:- term capital asset :
(a) ₹ 3,675 (b) ₹ 3,700 (c) ₹ 3,608 (d) None (a) If holding for more than 36 months (b) If
holding for less than 36 months
(v) Depreciation of delivery van is: (a) Factory (c) If holding for more than 24 months (d) If
overhead (b) A part of prime cost (c) selling holding for more than 12 months
overhead (d) None
(iv) Income from house property is taxable under
section : (a) 22-27 (b) 56-60 (c) 16-20 (d) 12-20
(vi) Units 800 then total cost ₹ 3000, Units 1200,
then total cost is ₹ 4200. Fixed cost— (v) Standard deduction is ₹ 21000 of a let out
(a) ₹ 600 (b) ₹ 300 (c) ₹ 2800 (d) None house property, then net annual value will be :
(a) ₹ 70000 (b) ₹ 42000 (c) ₹ 49000 (d) ₹ 21000
(vii) Time allowed 40 hours, time taken 30 hours.
The earning of a worker under Halsey plan will be: (vi) Which one of the following is an example of
(a) Equal to Rowan plan (b) greater than Rowan fixed overhead?
plan (c) lesser than Rowan plan (d) Not possible to (a) Direct Material (b) Direct Labour (c) Office Rent
calculate (d) None of these.

(vii) Full form of S.R.N. is : (a) Stores requisition (vii) If total earning of a worker is ?660 and time
note (b) stores requisition number (c) both (d) taken by the worker is 30 hours, then effective
None hourly rate will be :
(a) ₹ 22 (b) ₹ 21 (c) ₹ 33 (d) ₹ 30
(ix) Manual method of time keeping is: (a) Metal
disc. Method (b) Dial time records (c) both (d) (viii) If time taken to produce one unit is 30
None seconds and production of a worker is 240 units,
then time taken by the worker is—
(x) Bill of materials is prepared by – department: (a) 2 hours (b) 8 hours (c) 4 hours (d) None of
(a) Production (b) Stores (c)Accounts (d) these.
Engineering
(ix) FIFO is used when—
(xi) Standard time allowed is 24 hours, time taken (a) Price is increasing (b) price is decreasing (c)
20 hours. The level of efficiency is: Price is constant (d) None of these
(a) 83.33% (b) 125% (c)120% (d) None
(x) In which level of efficiency a labour gets more
(xii) Workers are not paid under Normal piece rate wages in Taylor than Merrick—
under: (a) 83% (b) 110% (c) 99% (d) 100%
(a) Halsey plan (b) Rowan Plan (c) Taylor’s piece
rate (d) None (xi) Opening balance of material 150 units @ ₹ 6
per unit, purchased 400 units @ 5 per unit, Issued
[Ans. (i) (b) Prices of material are increasing, (ii) 500 units under simple average method, then
(c) Unavoidable, (iii) (b) lesser, (iv) (c) ₹ 3,608, (v) value of closing stock will be : (a) ₹ 250%(b) ₹ 150
(c) selling overhead, (vi) (a) ₹ 600, (vii) (c) lesser (c) ₹ 300 (d) ₹ 275
than Rowan plan, (viii) (a) Stores requisition note,
(ix) (c) both, (x) (d) Engineering, (xi) (c) 120%, (xii) (xii) Income received from agricultural land
(c) Taylor’s piece rate] situated outside India is taxable under :
(a) Agricultural income (b) Income from house
property (c) Income from other sources (d) None
of these.
(xiii) Net income from lottery ₹ 1,38,200, Rate of Choose the correct alternative :
Tax 30.9%, then total income from lottery is : (i) Bill of Materials in prepared by....
(a) ₹ 200000 (b) ₹ 138200 (c) ₹ 238200 (a) stores dept (b) costing dept (C) engineering
(d) ₹ 300000 dept (d) production dept.

(xiv) Indexation is not applicable for which type of (ii) When market value of raw materials raises
assets? which method is suitable?
(a) Shares (b) Furniture & Fittings (c) Short term (a) LIFO (b) FIFO (c) Simple average (d) Weighted
capital assets (d) Bonds average.

(xv) Capital asset is defined under which section? (iii) Stores Ledger is prepared by—
(a) 2(29A) (b) 2(42A) (c) 2(14) (d) 2(42B) (a) posting Dept, (b) Purchase Dept, (c) Sales Dept,
(d) Stores Dept.
(xvi) Maximum limit of interest on loan of a let-out
property, is : (iv) Shortage of raw materials is posted
(a) ₹ 200000 (b) ₹ 150000 (c) No limit (d) ₹ 100000 to________ side of stores ledger.—
(a) Received side (b) Issue side (c) both side (d) no
(xvii) Annual reiil of a house property ₹ 240000, entry.
unrealised rent ₹ 5000, vacancy period 1 month, (v) The objective of time keeping is—
then actual rent will be—(a) ₹ 215417 (b) ₹ 235000 (a) Preparation of Wages bill (b) Keep Discipline (c)
(c) ₹ 215000 (d) ₹ 240000. Overhead Fixation (d) All of these

(xviii) Factory manager is an example of : (vi) As per Factory Act Daily Work
(a) Indirect Labour (b) Direct Labour (c) Prime Cost above_____________ hours is called overtime.—
(d) None of these. (a) 8 hours hours (c) 10 hours (d) 12 hours

(xix) Fixed cost per unit is—(a) Fixed (b) Variable (vii) Founder of motion study is- (a) Taylor (b)
(c) Semi-variable (d) None of these Halsey (c) Gilbirth (d) Wilson

(xx) Time lost due to breakdown of machine is an (viii) Number of wages rates mentioned in
example of— Merrick's Multiple Piece rate –
(a) Normal idle time (b) Abnormal idle time (c) (a) 2 (b) 3 (c) 4 (d) Uncountable
Bonus time (d) None of these
(ix) Time allowed 8 hours. Time taken 10 hours.
(xxi) Income from family pension will be taxable Efficiency is —
under— (a) 80% (b) 83.33% (c) 100% (d) 125%
(a) Income from Salary (b) Income from other
Sources (c) Income from Business (d) None of (x) The cost which changes with the change of
these. production is called—
(a) Fixed cost (b) variable cost (c) prime cost (d)
(xxii) Standard production 1200 units, actual Minor cost
production 1000 units, Rate per unit ₹ 5, then
wages under Taylor differential piece rate will (xi) Factory rent is _________ overhead —
be—(a) ₹ 5000 (b) ₹ 4150 (c) ₹ 6000 (d) ₹ 4000 (a) Fixed (b) variable
(c) Semi-variable (d) Semi-Fixed
(xxiii) Purchase requisition is prepared by—
(a) Purchase manager (b) Storekeeper (c) (xii) Manager's salary is_________ overhead.—(a)
Accountant (d) None of these Factoiy (b) Office (c) Sales (d) all of these.

(xxiv) Store Ledger is prepared by— (xiii) As per Income Tax Act standard deduction on
(a) Purchase department (b) Cost department (c) let out house is _______
Accounts department (d) Production department (a) 30% of Gross Annual Value (b) 30% of Net
Annual Value (c) 20% of Net Annual Value (d) 20%
[(i) (c), (ii) (a), (iii) (d), (iv) (a), (v) (a), (vi) (c), (vii) of Gross Annual Value
(a), (viii) (a), (ix) (b), (x) (d), (xi) (b), (xii) (c), (xiii)
(a), (xiv) (c), (xv) (c), (xvi) (c), (xvii) (c), (xviii) (a),
(xix) (b), (xx) (a), (xxi) (b), (xxii) (d), (xxiii) (a),
(xxiv) (b).]
(xiv) Income from the house which is used by Find out the correct answer out of the options
owner for his profession is taxable under the given against each question :
head— (i) During the period of rising prices, the
(a) Income from house property (b) income from appropriate method of pricing material issues
business and profession from the store is :—(a) FIFO (b) LIFO (c) Simple
(c) Capital gains (d) Income from other sources average (d) Weighted average.

(xv) Which one is not considered in determining (ii) Stores ledger is prepared by—(a) Cost dept (b)
Reasonable expected Rent of a let out house.— Purchase dept (c) Stores dept (d) Engineering dept
(a) Gross Municipal Value (b) Standard Rent (c)
Actual Rent (d) Fair Rent. (iii) Bill of Material is a –
(a) List of Materials to be purchased (b) List of
(xvi) The Gross Municipal Value of a house situated Materials required to execute a job
in Kolkata is ₹ 500000 and rate of Municipal Tax is (c) List of Materials to be issued by the store
20%; Find Municipal Tax. — keeper to execute a job (d) Both (b) & (c)
(a) ₹ 1,00,000 (b) ₹ 90,000 (c) ₹ 1,20,000 (d) No Tax

(xvii) The Section in which transfer of Capital (iv) The overhead whose one part is fixed and
Assets is mentioned in Income Tax Act.— other part is variable is known as—
(a) 2(14) (b) 54D (c) 2(47) (d) 2(50) (a) Fixed overhead) (b) Variable overhead (c) Semi-
variable overhead (d) None of these
(xviii) Which one of the following is not capital
asset? (a) Goodwill (b) Route permit (c) House (d) (v) Which of the following is not used for the
Land in Rural Area preparation of stores ledger—
(a) Stores requisitions (b) Name and code no. of
(xix) Other than share the minimum holding time raw materials
of an asset to be considered as long term capital (c) Goods Received Note (d) Purchased
asset is__________ (a) 12 months (b) 36 months Requisition.
36 months or more (d) Less than 36 months
(vi) Objectives of time booking is/are—
(xx) On the basis of holding time capital assets are (a) evaluate performance of worker (b)
.................. type. (a) 2 (b) 3 (c) 4 (d) 5 determination of idle time
(c) Proper utilization of time (d) All of these
(xxi) The section of Income lax Act where income
from other sources is mentioned. (vii) Which of the following is a part of overhead—
(a) 56 (b) 65 (c) 80 (d) 79 (a) Depreciation (b) Factory rent (c) Salary of
Foreman (d) All of these
(xxii) The maximum deductable amount on Family
pension is— (viii) Salary of supervisor is included in which of the
(a) ₹ 10000 (b) ₹ 15000 (c) ₹ 20000 (d) ₹ 25000 following overheads?
(a) Factory overhead (b) Office overhead (c) Selling
(xxiii) Dividend received from foreign company is overhead
taxable in____________ heading
(a) Income from salary (b) Income from other (ix) Idle time can be controlled through—
sources (c) Capital gains (d) Not taxable (a) RRR i»iw Time rate wages (b) Straight piece
rate wages (c) (a) (b) Snsuk (c) Both a and b (d)
(xxivThe maximum limit of deduction on income None of these
from horse race is)—
(a) ₹ 50,000 (b) ₹ 1,00,000 (c) ₹ 50,0000 (d) No (x) For what % age of time taken to time allowed,
upper limit bonus under Halsey and Rowan Premium method
will be equal? (a) 50% (b) 40% (c) 30% (d) 33.33%
[Ans : (i) c (ii) a (iii) a (iv) b (v) d (vi) b (vii) c (viii) b
(ix) a (x) b (xi) a (xii) b (xiii) b (xiv) b (xv) c (xvi) b (xi) Time allowed to a job is 40 hours. The % age of
(xvii) c (xviii) d (xix) c (xx) a (xxi) a (xxii) b (xxiii) b efficiency of a worker who has cpmpleted the job
(xxiv) d.] worked out at 125%. Time taken to complete the
job is — (a) 32 hours (b) 48 hours (c) 50 hours (d)
36 hours
(xii) Rate of wage per hour is ₹ 60. If one unit of (c) Income from Business or profession (d) None of
product requires 10 minutes to produce, then the these.
rate of wages per unit will be—
(a) ₹ 4 (b) ₹ 5 (c) ₹ 6 (d) ₹ 10 (xxiii) Which of the following is not considered
while computing reasonable expeclcd rent of a let
(xiii) Under income from house property income out house-(a) Gross Municipal Value (b) Actual
from farm house is— Rent (c) Standard Rent (d) Fair Rent
(a) Not taxable (b) taxable) (c) 50% taxable (d)
None of these (xxiv) Dipak purchased a lottery ticket, for ₹ 500
and wins a prize money ₹ 1,00,000. If IDS is ₹
(xiv) Gross Municipal value of a house in Kolkata is 30,900, then the taxable amount of income will
₹ 40,000. If municipal tax 15%, municipal tax is— be—
(a) ₹ 4,000 (b) ₹ 6,000 (c) ₹ 5,400 (d) None of these (a) ₹ 69,100 (b) ₹ 68,600 (c) ₹ 9,950 (d) ₹ 1,00,000.

Choose the correct alternative :

(i) The document on the basis of which raw
(xv) Which of the following is not a capital asset materials are issued from the stores—
under Income Tax Act, 1961?— (a) Bill of materials (b) Material requisition note
(a) House (b) Goodwill (c) Route permit (d) Rural (c) Material issue analysis sheet (d) None of the
agricultural land in India above

(xvi) An asset (excluding shares) will be treated as (ii) Though this loss is natural, but it has minimum
long term capital asset if it is held before transfer sale value—(a) Waste (b) Scrap (c) Spoilage
for— (d) Defective
(a) 12 months (b) 12 months or more
(c) 36 months or less More than 36 months, (iii) The time lost foi regulai maintanance of
machineries in the factory is termed as —
(xvii) Under IT Act. 1961 maximum limit for (a) Abnormal idle time (b) Additional time
deduction of interest on loan taken for (c) Normal idle time) (d) None of these
construction of let out house is (a) 30,000 (b)₹
2,00,000 (c) ₹ 1,50,000 (d) No limit. (iv) Objective of lime booking is/are-
(a) Evaluate performance of workers
(xviii) Rent of same type of house in the same (b) Determination of idle time
locality is known as— (c) Proper utilisation of time (d) All of these
(a) Standard rent (b) Actual rent (g) Fair rent
(d) Unrealised rent (v) Which wage payment system is appropriate in
making of idols?—
(xix) Transfer of capital assets means — (a) Time rate system (b) piece rate system
(a) Sale only (b) Exchange only (c) Relinquishment (c) Bonus premium system (d) All the above
only (d) All of these. system

(xx) If the amount of family pension is ₹ 54,000 (vi) A worker is told to produce 400 units of a
then the maximum deduction will be — product in 8 hours. Me produces 320 units of the
(a) ₹ 54,000 (b) ₹ 15,000 (c) ₹ 40,000 (d) ₹ 18,000 product in a period of 8 hours. What is the
efficiency level of the worker in this case?
(xxi) Which of the following income is not taxable (a) 80% (b) 100% (c) 120% (d) 125%
under the head income from other sources?
(a) Interest received on bank deposit (b) Family (vii) Under the Income Tax Act, 1961, which
pension received by the widow of a deceased sections deal with Income from House Property?
employee (a) Sec 5 to sec 10 (b) Sec 15 to sec 20 (c) Sec 22
(c) pension received by an employee (d) winning to sec 27 (d) Sec 30 to sec 35
from horse race.
(viii) If the owner of a house uses his . house for
(xxii) Salary received by MP, MLA will be taxable the purpose of his profession, then the income
under the head— from such house will be chargeable to tax under
(a) Income from salary (b) Income from other the head—
sources (a) Income from House property (b) Profits &
gains from business or profession
(c) Capital gains (d) Income from other sources
(xxi) Maximum limit of deduction in case of family
(ix) Gross Municipal Value of a house in Kolkata is pension – (a) ₹ 10,000 (b) ₹ 15,000 (c) ₹ 20,000
₹ 40,000. If Municipal tax 15%, Municipal tax is— (d) ₹ 25,000
(a) ₹ 4000 (b) ₹ 5400 (c) ₹ 6000 (d) None of these
(xxii) Salary of MP—
(x) Which of the following is not considered while (a) Is fully exempted (b) Is fully taxable
computing reasonable expected rent of a let out (c) Exempted upto ₹ 50,000 p.a. (d) Exempted
house—(a) Gross Municipal Value (b) Actual rent upto ₹ 1,00,000 p.a.
(c) Standard rent (d) Fair rent
(xxiii) The income taxable under the head Income
(xi) Which of the following is a Capital asset? from other sources is)—
(a) Raw materials (b) Land in Urban area (c) (a) Income from pension (b) Dividend received
Personal motor car (d) 7% gold bond, 1980 from Indian Company
(c) Income from Salary (d) Rent Received from
(xii) How much tax rate on long-term capital gain house property
at present? (a) 10% (b) 15% 20% (d) 25%
(xxiv) Under which section of Income tax Act, an
(xiii) During the period of rising prices, the income will be taxable under the head 'Income
appropriate method of pricing material issues from other sources?
from the store is—(a) FIFO method (b) LIFO (a) Sec. 56 (b) Sec. 45 (c) Sec. 22 (d) Sec. 15.
method (c) Simple average price method (d)
Weighted average price method [Ans : (i) b (ii) b (iii) c (iv) d (v) a (vi) a (vii) c (viii) b
(,ix) b (x) b (xi) b (xii) c (xiii) b (xiv) a (xv) b (xvif d
(xiv) Who, among the following, prepares (xvii) c (xviii) d (xix) d (xx) d (xxi) b (xxii) b (xxiii) b
purchase requisition? (xxiv) a.]
(a) Store Keeper (b) Purchase manager
(c) Production manager (d) Finance manager Choose the correct alternative :
(i) Standard time allowed for a job is 10 hours. If a
(xv) The cost, which is required to be incurred in a worker complete the job in 8 hours, then under
constant way, i.e.. if there is production or no Halsey Premium plan (50%) his bonus time will
production, is known as – (a) Variable cost (b) be—(a) 1 hour (b) 2 hours (c) 4 hours (d) 5 hours
Fixed cost (c) Mixed cost (d) None ot these
(ii) Bill of material prepared by)—
(xvi) Income tax paid comes under— (a) Sales department (b) Engineering department
(a) Factory Overhead (b) Office Overhead (c) Purchase department (d) store department
(c) Selling overhead (d) None of these
(iii) Which of the following is not an example of
(xvii) Overheads are classified into fixed, variable semi-variable overhead?
and semi-variable overheads on the basis of— (a) Repair and Maintenance cost of machinery
(a) Element (b) Function (c) Behaviour (d) None of (b) Telephone expenses (c) Electricity Charges
these (d) Salary of General Manager

(xviii) Which of the following expenses is not an (iv) Which of the following is not used for the
example of selling overhead? preparation of store ledger?
(a) Salary of sales manager (b) Advertisement (a) Store Requisition (b) Name and code no. of
expenses (c) Showroom expenses (d) Delivery raw material (c) Goods received note (d) Purchase
expenses of goods requisition

(xix) Transfer of capital assets means— (v) For what percentage of time taken to time
(a) Sale only (b) Exchange only allowed, hontts under Halsey and Rowan Premium
(c) Relinquishment (d) All of these method will he equal—
(a) 50% (b) 40% (c) 30% (d) 33.33%
(xx) Which of the following income will not be
taxable under the head 'Capital gain’? (vi) Rate of wages per hour of a worker is ₹ 50.
(a) Income from sale of business stock (b) income Bonus earned hy him under Halsey Premium
from sale of rural agricultural land method (50%) is 150. Time save by the worker is –
(c) income from sale of personal car (d) All of these (a) 6 hours (b) 3 hours (c) 8 hours (d) 1.5 hours
(vii) Time lost between factory gate and the place (xviii) An assets (excluding share) will be treated as
of work is called— long term capital asset if it is held before transfer
(a) Overtime (b) Normal idle time (c) Abnomial idle for—(a) 12 month (b) 12 months or more
time (d) Standard time (c) 36 months or less (d) more than 36 months

(viii) The limitation of Halsey Premium Scheme (xix) Salary received by MP, MLA will be taxable
is/are— under the head—
(a) Complexity (b) Employee unrest (a) Income from salary (b) Income from other
(c) Both (a) and (b) (d) None of these sources (c) PGBP (d) None of these

(ix) Idle time can be controlled through— (xx) If interest received from saving bank is ₹ 7800
(a) Time rate wages (b) Straight piece rate (c) Both and dividend from Indian Company is ₹ 7000. Then
(a) and (b) (d) None of these taxable income from other sources will be—
(a) ₹ 7S00 (b) ₹ 14800 (c) ₹ 7000 (d) Nil.
(x) Standard time allowed for a job to a worker is
8 hours and completed the job in 10 hours. The (xxi) Under Income Tax Act 1961 maximum limit
level of his efficiency is —(a) 83.33% (b) 80% for deduction of Interest on loan taken for
(c) 125% (d) None of these construction of let out house is — (a) ₹ 30,000
(b) ₹ 2,00,000 (c) ₹ 1,50,000 (d) No limit
(xi) Objective of time keeping is/are—
(a) Preparation of pay-roll (b) Determination of (xxii) Annual Value of a house which is used
overhead (c) Maintain discipline in factory through out the year for own residence will be –
(d) All of the above (a) Net annual value (b) Fair rent
(c) Lower of (a) and (b) zero
(xii) Which of the following is a part of overhead?
(a) Depreciation (b) Factory rent (c) Salary of (xxiii) Under which section of Income Tax Act an
foreman (d) All of these Income will be taxable under the head Income
from other sources?—(a) See.45 (b) Sec.56
(xiii) Which of the following is a capital assets (c) Sec.22 (d) Sec.15
under the Income Tax Act?
(a) House (b) Share (c) Jewellery (xxiv) Winning from Lottery (Net) 69,100. Gross
(d) All of the above taxable Income from lottery (TDS @ 31.2%) will
be—
(xiv) Rent received from a house let out for (a) ₹ 1,30,000. (b) ₹ 1,20,000 (c) ₹ 1,00,000
business purpose is taxable under the head— (d) None of these
(a) Capital Gain (b) Income from other source
(c) PGBP (d) Income from house property [Ans : (i) b (ii) b (iii) d (iv) b (v) d (vi) d (vii) b (viii)
c (ix) b (x) c (xi) d (xii) d (xiii) d (xiv) c (xv) a (xvi) d
(xv) Municipal value of a let out house is 1,44,000, (xvii) a (xviii) d (xix) b (xx) b (xxi) b (xxii) d (xxiii) b
Fair rent 1,50,000 and standard rent is 1,70,000. (xxiv) d.]
Then reasonable expected rent will be –
(a) ₹ 1,50,000 (b) ₹ 1,44,000 (C) 1,80,000
(d) None of these

(xvi) Madhabi Ghosh received ₹ 1,44,000 as family

pension during previous year 2022-23. Taxable
income under the head income from other
sources will be—(a) ₹ 1,06,000 (b) ₹ 1,82,000
(c) ₹ 1,00,000 (d) ₹ 1,29,000

(xvii) Apurba Roy sold a few share in a company on

02.01.2021, purchasing the same on 01.01.2020.
The share will be treated as short term capital
assets if share are held up to which of the
following dates? –
(a)01.01.2021 (b) 31.12.2020 (c) 31.12.2020
(d) 31.11.2020