Question:

A sale of goods to Laxman for cash should be debited to

A.

Laxman A/c

B.

Cash A/c

C.

Sales A/c

D.

Capital A/c

Answer» b. Cash A/c

Question:

A withdrawal of cash from business by the proprietor should be credited to

A.

Drawing Account

B.

Capital Account

C.

Cash Account

D.

Purchase Account

Answer» c. Cash Account

Question:

Which balance is not considered for closing entries on t he basis of trial balance fortransferring to Trading and Profit & Loss Account?

A.

Salary and Wages

B.

Discount Received

C.

Commission Paid

D.

Cash in Hand

Answer» d. Cash in Hand

Question:

If X co-venture takes away of goods under memorandum Joint Venture Method then he willdebit these goods in his books to

A.

Sales Account

B.

Purchase Account

C.

Personal Account

D.

Joint Venture Account

Answer» c. Personal Account

Question:

Fixed Assets and Current Assets are categorized as per concept of

A.

Separate Entity

B.

Going Concern

C.

Consistency

D.

Time period

Answer» b. Going Concern

Question:

Select correct journal entry to rectify an error “An amount of 10,000, withdrawn by owner for personal use debited to Trade Expenses Account”. Debit Credit

A.

Drawing Account Trade Expenses a/c

B.

Trade Expenses a/c Drawing Account

C.

Drawing Account Cash Account

D.

Trade Expenses a/c Cash Account

Answer» b. Trade Expenses a/c Drawing Account

Question:

The periodical total of the Sales Return Book is posted to the

A.

Debit side of Sales Account

B.

Debit side of Sales Return Account

C.

Credit side of Sales Return Account

D.

Debit side of Debtors Account

Answer» b. Debit side of Sales Return Account

Question:

A bad debt recovered during the year will be

A.

Capital Expenditure

B.

Revenue Expenditure

C.

Capital Receipt

D.

Revenue Receipt

Answer» d. Revenue Receipt

Question:

At the end of the year Bad Debts Recovered Account is

A.

Debited to Debtors Account 4

B.

Credited to Debtors Account

C.

Credited to Profit & Loss Account

D.

Debited to Profit & Loss Account

Answer» c. Credited to Profit & Loss Account

Question:

Which of these items are taken into consideration for preparation of adjusted cash book?

A.

Mistake in cash book

B.

Mistake in pass book

C.

Cheque issued but not presented for payment

D.

Cheque deposited but not cleared by bank

Answer» a. Mistake in cash book