Tag: elements of accounts

Questions Related to elements of accounts

The process of balancing of an account involves equalization of both sides of the account. If the debt side of an account exceeds the credit side, the difference is put on the credit side. The said balance is -
(i) A debit balance
(ii) A credit balance
(iii) An expenditure or an asset
(iv) An income or a liability
Select the correct answer from the options given below -

elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

  1. Only (ii) above

  2. Only (iv) above

  3. Both (i) and (iii) above

  4. Both (ii) and (iii) above

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Correct Option: C

Which of the following reflects 'child ego' as per the concept of Transactional Analysis?

elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

  1. I would not do so again

  2. Everything will be OK

  3. Never do so again

  4. All of the above

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Correct Option: A

The words 'To Balance b/f' or 'By Balance b/f' are recorded in the 'Particular Column' at the time of posting of _________________.

elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

  1. all compound entries

  2. an opening entry

  3. a closing entry

  4. an adjusting entry

  5. a transfer entry.

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Correct Option: B

The balance of an account is always known by the side which is _______________.

elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

  1. Shorter

  2. Higher

  3. Equal

  4. None of these

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Correct Option: B

The words 'To Balance b/f' or 'By Balance b/f' are recorded in the particulars column at the time of _________________.

elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

  1. Journalising

  2. Posting of an entry other than opening entry

  3. Balancing

  4. Carry forwarding

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Correct Option: D

Normally, the following accounts are balanced ____________________.

elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

  1. Personal Accounts and Nominal Accounts

  2. Real Accounts and Nominal Accounts

  3. Personal Accounts and Real Accounts

  4. Personal, Real and Nominal Accounts

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Correct Option: C

While balancing an account, the balance of an account is recorded on the side which is _____________.

elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

  1. Shorter

  2. Higher

  3. Equal

  4. None of these

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Correct Option: A

While balancing an account in case of a debit balance, the Words By Balance c/d are recorded in the particulars column of an account _________________.

elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

  1. on the debit side

  2. on the credit side

  3. on the both side

  4. None of these.

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Correct Option: B

Balance of personal account is brought down for the next year.

elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

  1. True

  2. False

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Correct Option: A
Explanation:

Personal accounts are accounts related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.

The balance of personal account is brought down for the next year. Every year, the balance of the previous accounting period is brought down for the next year. Debit balance will be shown in the debit column and credit balance will be shown in the credit column. Thus, the balance of personal account is brought down for the next year.

The following relate to the recording process. Which of these statements is correct?

elements of accounts ledger and posting distinction between subsidiary books and ledger explain the meaning of ledger posting methods of posting entries

  1. The general ledger is chronological record, of transactions.

  2. The general ledger is posted from transactions recorded in the general journal

  3. The trial balance provides the primary source document for recording transactions into the journal.

  4. Transposition is the transfer of information from the general journal to the general ledger.

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Correct Option: B