Closing entries are generally passed:

A. Income from sale of trading goods
B. Bad debts recovered
C. Interest on FDs
D. None

A. I
B. T
C. H
D. None

Which of the following should not be treated as revenue expenditure?

A. Interest on loans and debentures
B. Annual fire insurance premiums on Plant and Equipment
C. Sales tax paid in connection with the purchase of office equipment
D. Small expenditures on long- lived assets, such as ` 20 for a paper weight.

C. A revenue expenditure is an expenditure whose benefit expires within the current
accounting period and is in the nature of recurring and is therefore written off to P&L A/c. Sales tax
paid in connection with the purchase of office equipment is a non-recurring expenditure whose
benefit is going to last for more than one accounting period and hence not a revenue
expenditure

Which of the following specialized journals records “goods returned by customers”?

A. Purchase journal
B. Sales journal
C. Purchases return journal
D. Sales return journal

i. Stock at the end of the financial year
ii. Stock at the beginning of the financial year
iii. Drawings
iv. Prepaid Rent
v. Interest received but not yet earned
A. Only (i) above
B. Only (iii) above
C. Both (i)and (iii) above
D. (i), (iii), (iv) and (v) above
Stock at the end of the financial year is the closing stock, drawings are the amounts withdrawn by the owner of the business for personal use; and prepaid rent is the amount of rent which is paid in advance of the current financial year and interest received but not yet earned is the amount of interest received which does not pertain to the current year are the items that appear in the Balance Sheet of a business. Stock at the beginning of the financial year is the opening stock that appears in Trading Account of a business and not in the Balance Sheet. Thus D., the combination of all the accounts in alternatives (i), (iii), (iv) and (v) is the correct answer.]