Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

Purchase of furniture for cash would ______________________.

book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

  1. Increase the fixed assets and reduce the current assets

  2. Reduce the fixed assets and increase the current assets

  3. Increase total assets

  4. Both (a) and (b)

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Correct Option: A

If an individual asset is increased, there will be a corresponding ____________________.

book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

  1. Increase of another asset or increase of capital

  2. Decrease of another asset or increase of liability

  3. Decrease of specific liability or decrease of capital

  4. Increase of drawings and liabiltiy

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Correct Option: B

Purchase of office equipment on credit results in ________________.

book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

  1. Decrease in liability

  2. Decrease in Capital

  3. Increase in Capital

  4. Increase in assets

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Correct Option: D

Purchase of machinery for cash ________________.

book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

  1. Decrease total assets

  2. Increases total assets

  3. No change in the total assets

  4. Decreases total liabilities

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Correct Option: C

Which of the following is true when a debtor pays his dues?

book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

  1. The asset side of the balance sheet will decrease

  2. The asset side of the balance sheet will increase

  3. The liability side of the balance sheet will increase

  4. There is no change in total assets or total liabilities

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Correct Option: D

Mr. Bhandari purchased a car for Rs. 50,000, making a down payment of Rs. 10,000 and signing a Rs. 40,000 bill payable due in 60 days. As a result of this transaction ___________________.

book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

  1. Total assets increased by Rs. 50,000

  2. Total liabilities increased by Rs. 40,000

  3. Total assets increased by Rs. 40,000

  4. Total assets increased by Rs.. 40,000 with corresponding increase in liabilities by Rs. 40,000

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Correct Option: D

Loss on sale of plant and machinery should be written off against _________.

book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

  1. Share premium

  2. Depreciation fund account

  3. Sales account

  4. Profit & Loss account

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Correct Option: B

Income earned and collected results in _________________.

book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

  1. Increase of assets and increase in capital

  2. Decrease in assets and increase in capital

  3. Increase in assets and decrease in liability

  4. Decrease in assets and increase in liability

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Correct Option: A

Capital brought in by the proprietor will result in _______________.

book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

  1. Increase in asset and increase in liability

  2. Increase in liability and decrease in asset

  3. Increase in asset and decrease in liability

  4. Increase in one asset and decrease in another asset

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Correct Option: A

In case of unexpired entry following entry should be made _________________.

book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

  1. It should be shown as an asset in the balance sheet

  2. It is shown as a expense in profit and loss account

  3. Both A & B

  4. None the above

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Correct Option: C