#1821

Which crop is associated with the improved varieties Arkel, Early Badger, Bonneville, and Early December?

(a) Safflower

(b) Gram

(c) Pea

(d) Lentil

Explanation: Arkel, Early Badger, Bonneville, and Early December are well-known cultivars of the garden pea (Pisum sativum). Arkel is an early-maturing variety with double pods, while Bonneville is a popular medium-tall variety. Early December, also known as Jawahar Matar 3, was developed through hybridization to provide high shelling percentages. These varieties are widely cultivated for their specific growth habits and yield characteristics.

#1822

Calculate the gross assets of a business on December 31, 1996, given an initial investment of Rs. 22,000 cash and Rs. 3,000 stock, a profit of Rs. 6,000, a payment of Rs. 4,500 to creditors for furniture, and a withdrawal of Rs. 3,500 in goods.

(a) Rs. 20,500

(b) Rs. 27,500

(c) Rs. 23,500

(d) Rs. 26,500

Explanation: Initial assets were 25,000. Adding profit (6,000) increases equity/assets. Buying furniture (4,500) replaces cash with furniture (no net change in total assets). Drawings (3,500) reduce assets. Calculation: 25,000 + 6,000 - 3,500 = 27,500. The payment to creditors reduces both cash and liabilities, keeping net assets consistent with the equity increase.

#1823

A machine was acquired on January 1, 2001, for Rs. 100,000. Depreciation is applied at 10% per annum using the diminishing balance method. Calculate the depreciation expense to be recorded in the profit and loss account for the year ending December 31, 2004.

(a) Rs. 10,000

(b) Rs. 8,100

(c) Rs. 20,000

(d) Rs. 7,290

Explanation: Under the diminishing balance method, depreciation is calculated on the written-down value. Year 1: 100,000 * 10% = 10,000 (Value: 90,000). Year 2: 90,000 * 10% = 9,000 (Value: 81,000). Year 3: 81,000 * 10% = 8,100 (Value: 72,900). Year 4: 72,900 * 10% = 7,290. Thus, the depreciation for the fourth year is Rs. 7,290.

#1824

Calculate the closing balance of the plant and machinery account on December 31, 1992, given an opening balance of Rs. 4,000 on January 1, 1992, and an addition of Rs. 2,000 on July 1, 1992, with a 10% annual depreciation rate.

(a) Rs. 5,600

(b) Rs. 5,300

(c) Rs. 5,400

(d) Rs. 5,500

Explanation: The depreciation on the opening balance of Rs. 4,000 for the full year is Rs. 400. The depreciation on the addition of Rs. 2,000 for six months (July to December) is Rs. 100. Total depreciation is Rs. 500. The closing balance is (4,000 + 2,000) - 500 = Rs. 5,500.

#1825

A machine was acquired on January 1, 1992, for Rs. 5,00,000. Additional costs included Rs. 5,000 for freight, Rs. 500 for carriage, and Rs. 5,000 for installation. If depreciation is charged at 10% per annum using the written-down value method, what is the book value of the machinery on December 31, 1994?

(a) Rs. 3,72,154.00

(b) Rs. 3,64,500.00

(c) Rs. 3,68,145.00

(d) Rs. 3,50,000.00

Explanation: The total cost of the machine is Rs. 5,10,500 (5,00,000 + 5,000 + 500 + 5,000). Applying 10% depreciation on the written-down value for three years: Year 1: 5,10,500 - 51,050 = 4,59,450. Year 2: 4,59,450 - 45,945 = 4,13,505. Year 3: 4,13,505 - 41,350.5 = 3,72,154.5. Rounding to the nearest whole number gives Rs. 3,72,154.

#1826

Given stock on January 5th is Rs. 27,000, purchases between December 31st and January 5th are Rs. 700, and cost of sales for the same period is Rs. 1,500, calculate the stock value as of December 31st.

(a) Rs. 26,200

(b) Rs. 27,800

(c) Rs. 28,500

(d) Rs. 26,300

Explanation: To find the opening stock, use the formula: Opening Stock = Closing Stock + Cost of Sales - Purchases. Substituting the values: 27,000 + 1,500 - 700 = 27,800. Wait, 27,000 + 1,500 = 28,500; 28,500 - 700 = 27,800. The provided answer B (26,200) appears to conflict with standard calculation.

#1827

A company incorporated on April 1st, 2001, acquired a business operating since January 1st, 2001. Given a total gross profit of Rs. 24,000 for the year ending December 31st, 2001, and specific monthly sales data, what is the gross profit earned prior to incorporation?

(a) Rs. 7,500

(b) Rs. 7,000

(c) Rs. 8,500

(d) Rs. 8,000

Explanation: To calculate pre-incorporation profit, total gross profit is allocated based on the sales ratio between the pre-incorporation period (Jan-Mar) and the post-incorporation period (Apr-Dec). By calculating the weighted sales for each month based on the provided multipliers, the pre-incorporation portion is determined to be Rs. 7,000.

#1828

A company issued Rs. 60,000 in debentures at a Rs. 3,000 discount on April 1, 1996, repayable in three equal annual installments. Given the financial year ends December 31, calculate the discount written off in the second year.

(a) Rs. 625

(b) Rs. 1,000

(c) Rs. 1,125

(d) Rs. 1,500

Explanation: The discount is written off based on the amount of debentures outstanding each year. Year 1 (Apr-Dec): 60,000 for 9 months. Year 2: 60,000 for 3 months and 40,000 for 9 months. Calculating the weighted average outstanding balance for the second financial year results in a write-off of Rs. 1,125.

#1829

A company purchased 8% bonds with a face value of Rs. 10,00,000 for Rs. 12,00,000 on January 1, 2003. Interest is paid semi-annually on June 30 and December 31. For the financial year ending March 31, 2003, what amount of accrued interest should be recognized?

(a) Rs. 40,000

(b) Rs. 20,000

(c) Rs. 60,000

(d) Rs. 80,000

Explanation: Interest is calculated on the face value of the bonds. The annual interest is 8% of Rs. 10,00,000, which equals Rs. 80,000. Since interest is paid semi-annually, the interest for three months (January to March) is calculated as (80,000 / 12) * 3 = Rs. 20,000. This represents the interest earned but not yet received by the company as of the balance sheet date.

#1830

Calculate the stationary expense to be reported in the Income and Expenditure account for the year ending December 31, 2002, given: Opening stock Rs. 300, Payments Rs. 1,080, Closing stock Rs. 50.

(a) Rs. 830

(b) Rs. 1,080

(c) Rs. 1,380

(d) Rs. 1,330

Explanation: To determine the consumption of stationary, we add the opening stock to the purchases made during the year and subtract the closing stock. Calculation: Opening Stock (300) + Payments (1,080) - Closing Stock (50) = 1,330. Note: The provided answer key indicates D (1,380), which conflicts with the standard accounting calculation of 1,330. This may be due to a calculation error in the source material regarding the treatment of opening and closing balances.

#1831

A non-profit organization received total donations of Rs. 1,00,000 during the year 1998. This total includes Rs. 15,000 received on December 31, 1998 (for 1999) and Rs. 20,000 received on December 31, 1997 (for 1998). Calculate the donation income for the year 1998.

(a) Rs. 90,000

(b) Rs. 95,000

(c) Rs. 1,05,000

(d) Rs. 1,15,000

Explanation: To calculate the income for 1998, we take the total cash received (1,00,000), subtract the advance received for the next year (15,000), and add the amount received in the previous year that pertains to the current year (20,000). Thus, 1,00,000 - 15,000 + 20,000 = 1,05,000. Note: The provided answer key suggests 95,000, which may imply a different treatment of opening/closing adjustments.

#1832

Calculate the interest on drawings for the year ending December 31, 2016, given a 10% annual interest rate and monthly withdrawals of Rs. 2,000 made at the start of each month.

(a) Rs. 1,100

(b) Rs. 1,400

(c) Rs. 1,200

(d) Rs. 1,300

Explanation: Total annual drawings = 2,000 * 12 = 24,000. For withdrawals at the beginning of each month, the average period is (12+1)/2 = 6.5 months. Interest = 24,000 * 10% * (6.5/12) = 2,400 * 0.54166 = 1,300. Thus, Rs. 1,300 is the correct interest amount.

#1833

Determine the residential status for the assessment year 2019-20 for a US citizen who arrived in India on July 1, 2018, left on December 15, 2018, and returned on January 1, 2019, staying until the end of the financial year.

(a) not ordinarily resident

(b) resident (ordinarily resident)

(c) non-resident

(d) None of the above

Explanation: To be a resident in India, an individual must satisfy basic conditions under Section 6(1) of the Income Tax Act. The individual stayed for approximately 168 days in the financial year 2018-19. Since they do not meet the 182-day threshold, they are generally classified as a non-resident. The provided answer 'not ordinarily resident' may conflict with standard residency calculations based on the 182-day rule.

#1834

What is the mandatory percentage of advance tax that an assessee must pay by the due date of December 15th?

(a) 30% of advance tax payable

(b) 10% of advance tax payable

(c) 75% of advance tax payable

(d) 5% of advance tax payable

Explanation: Advance tax payment schedules are structured to ensure the government receives revenue throughout the financial year. By December 15th, which represents the third installment for most corporate and individual taxpayers, the cumulative amount of advance tax paid must reach at least 75% of the total estimated tax liability for the year.

#1835

What is the membership status of countries that joined the World Bank after December 31, 1945?

(a) founder member

(b) general member

(c) permanent member

(d) temporary member

Explanation: The original signatories who joined by the end of 1945 are considered founder members of the World Bank. Countries that joined subsequently are classified as general members, as they did not participate in the initial drafting and ratification process of the Articles of Agreement in 1945.

#1836

Following the launch of the Badr II satellite on December 10, 2001, when did Pakistan successfully launch Pak Sat I?

(a) January 25, 2003

(b) December 29, 2002

(c) December 25, 2002

(d) February 15, 2003

Explanation: Pakistan's space program achieved a significant milestone with the launch of Pak Sat I. Following the earlier deployment of the Badr II satellite in late 2001, the nation continued its efforts in satellite technology. The official launch date for Pak Sat I was January 25, 2003, which represented a major step forward in enhancing the country's telecommunications and satellite communication capabilities.

#1837

In December 1793, under the pseudonym 'Silas Tomkyn Comberbache', which military organization did Coleridge join?

(a) Solicitors office

(b) Royal Dragoons

(c) The Poets society

(d) British Royal Navy

Explanation: In a moment of personal crisis and financial distress, Coleridge enlisted in the 15th Light Dragoons under the assumed name Silas Tomkyn Comberbache. His time in the military was brief and largely unsuccessful, as he was reportedly a poor horseman. He was eventually discharged after his family intervened, allowing him to return to his academic and literary pursuits.

#1838

On the date of the winter solstice, approximately December 21, where is the Sun positioned directly overhead?

(a) Tropic of Cancer

(b) Tropic of Capricorn

(c) Tropic of Virgo

(d) Tropic of Scorpio

Explanation: The winter solstice occurs when the Sun reaches its most southerly declination of -23.5 degrees. This means the Sun is directly overhead at the Tropic of Capricorn, which is located at 23.5 degrees south latitude, marking the shortest day of the year in the Northern Hemisphere.

#1839

What major international organization was formally established by the Maastricht Treaty, signed on December 10, 1991?

(a) NATO

(b) European Union

(c) Free Trade Area

(d) European Common Defence

Explanation: The Maastricht Treaty, also known as the Treaty on European Union, was a landmark agreement that transformed the European Community into the European Union. It introduced the concept of European citizenship, laid the groundwork for the single currency (the Euro), and expanded cooperation into areas such as foreign policy, security, and judicial matters, significantly deepening the integration process among member states.

#1840

In which city was the meeting held on December 21, 1991, where eight additional republics—Moldova, Tajikistan, Armenia, Azerbaijan, Turkmenistan, Kazakhstan, Kyrgyzstan, and Uzbekistan—joined the Commonwealth of Independent States?

(a) Alma’ata (now Astana)

(b) Ashgabat

(c) Moscow

(d) Dushanbe

Explanation: The Alma-Ata Protocol, signed on December 21, 1991, in Alma-Ata (now Almaty, Kazakhstan), expanded the Commonwealth of Independent States. This meeting was crucial for the transition from the Soviet Union to the new regional framework, as it solidified the participation of the majority of former Soviet republics in the newly formed organization.

December 2025 Current Affairs MCQs & Solutions