Tag: elements of accounts

Questions Related to elements of accounts

________________ account representing the liability of the acceptor in respect of bills accepted by him and will always show a credit balance.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. creditor

  2. Bill Payable

  3. Loan

  4. none

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Correct Option: B

A bill given to a creditor is called bill payable.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. True

  2. False

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Correct Option: A
Explanation:

A bill payable is a document which shows the amount owed for goods or services received on credit (meaning not paid at the time that the goods or services were received).

Hence, a bill payable is also known as an unpaid vendor invoice.

Sale of Return Account in the Sale or Return Ledger represents the value of goods still lying with the customers for approval.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. True

  2. False

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Correct Option: A

Which one of the following documents attests the fact that goods of specified quantity, value and description are entering the bounds of the country.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bill of Lading

  2. Consular invoice

  3. Documentary bill

  4. Bill of entry

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Correct Option: D

Bills receivable account is a __________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. nominal account

  2. personal account

  3. real account

  4. none of the above

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Correct Option: C

Bills payable book is a ____________.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. subsidiary book

  2. principal book

  3. ledger

  4. memorandum book

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Correct Option: A
Explanation:

There are various subsidiary books which are used to record the specific transaction pertaining to the specific activity. 

Credit sales are recorded in sales book while bills payable are recorded in bills payable book which is a subsidiary book.

Discount at the time of retirement of a Bill is a gain for the drawer.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. True

  2. False

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Correct Option: B

On receipt of promissory note, the payee records in ______.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. Bills Receivable Book.

  2. Bills payable Book.

  3. Journal Proper.

  4. None of the above.

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Correct Option: A

A bill given to a creditor is called Bills Receivable.

elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

  1. True

  2. False

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Correct Option: B

When a firm maintains a cash book, it need not maintain _______________.

elements of accounts accounting in business journal - book of original entry purchases and sales book meaning and importance of journal

  1. Journal Proper

  2. Purchase(journal)book

  3. Sales(journal)book

  4. Bank and cash account in the ledger

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Correct Option: D
Explanation:

When a firm maintains a cashbook,  it does not need to maintain Separate Bank and cash account in the ledger.