Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

A, B, & C were partners sharing profits and losses in the ratio of 3:2:1 A Retired and firm received the joint life policy as 7,500 appearing in the balance sheet at 10,000 JLP is credited and cash debited 7,500 what will be the treatment for the balance in Joint Life Policy?

book keeping and accountancy dissolution of firm accounting record at the time of dissolution procedure of settlement of accounts partnership account (dissolution of partnership)

  1. Credited to partner's current account in profit sharing ratio.

  2. Debited to revaluation account.

  3. Debited to partner's capital account in profit sharing ratio.

  4. Either (B) or (C)

Show answer
Correct Option: D

A, B & C takes a joint life policy, after 5 years B retire from the firm. Old profit sharing ratio is 2:2:1. After retirement A and C decided to share profits equally. They had taken a joint life policy of 2,50,000 with the surrender value 50,000 What will be the treatment in the partner's capital account on receiving the JLP amount if joint life policy is maintained at the surrender value along with the reserve?

book keeping and accountancy dissolution of firm accounting record at the time of dissolution procedure of settlement of accounts partnership account (dissolution of partnership)

  1. 50,000 credited to all the partners in old ratio.

  2. 2,50,000 credited to all the partners in old ratio

  3. 2,00,000 credited to all the partners in old ratio.

  4. Distribute JLP Reserve A/c in old profit sharing ratio.

Show answer
Correct Option: D

Commercial accounting is based on ________________.

book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Single entry book keeping

  2. Double entry book keeping

  3. Both single and double entry book keeping

  4. Cash basis of book keeping

Show answer
Correct Option: B

Who is the father of Double entry- Book Keeping?

book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. F.W. Taylor

  2. Henry Fayol

  3. Lucas Paciol

  4. None of the above

Show answer
Correct Option: C
Explanation:

Luca Pacioli was an Italian mathematician and is famously known as The Father of Accounting and Bookkeeping due to his tremendous contributions in the field of accounting. 

______ covers procedural aspects of accounting work and includes record keeping function.

book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Accounting

  2. Book-keeping

  3. Posting

  4. Journalizing

Show answer
Correct Option: B

Book-keeping is concerned with the ______ of transactions while Accounting is concerned with the _______ of the recorded transactions. 

book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. Recording, Summarizing

  2. Summarizing, Recording

  3. Posting, Recording

  4. Summarizing, Posting

Show answer
Correct Option: A

Financial statement do not form part of book-keeping.

book keeping and accountancy conceptual framework of accounting distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

  1. True

  2. False

  3. Partly true

  4. None of above

Show answer
Correct Option: A

Accrued income is also been called as ________.

book keeping and accountancy adjustments in preparation of financial statements accrued income earned or accrued income need for adjustment, closing stock and outstanding expenses

  1. Outstanding income

  2. Outstanding expense

  3. Prepaid income

  4. Prepaid expense

Show answer
Correct Option: A
Explanation:

It may happen that certain items of income such as interest on loan, commission, rent, etc. are earned during the current accounting year but have not been actually received by the end of the same year. Such incomes are known as accrued income. It is the income which has been earned during a particular accounting period, also known as outstanding income. 

Examples include accrued interest, accrued rent (to be received), etc. Accrued income is recorded in the books at the end of an accounting period to show true numbers of a business.

The recording of wages earned but not yet paid is an example of an adjustment that _____________.

book keeping and accountancy adjustments in preparation of financial statements accrued income earned or accrued income need for adjustment, closing stock and outstanding expenses

  1. apportions revenues between two or more periods

  2. recordings an accrued expense

  3. recordings an unrecorded revenue

  4. None of the above.

Show answer
Correct Option: B

Payment received from debtor _______________.

book keeping and accountancy adjustments in preparation of financial statements accrued income earned or accrued income need for adjustment, closing stock and outstanding expenses

  1. decreases the total assets

  2. increases the total assets

  3. results in no change in the total assets

  4. increases the total liabilities

  5. decreases the total liabilities

Show answer
Correct Option: C