Tag: elements of book keeping and accountancy

Questions Related to elements of book keeping and accountancy

Income Tax Liability of a Proprietor paid should be debited to ________.

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Income Ta Account

  2. Drawing Account

  3. Income Tax Payable Account

  4. Business Expenses Account

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Correct Option: B

Which account is the odd one out?

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Advance to supplier

  2. Bills Receivable

  3. Debtors

  4. Cash

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Correct Option: D

Which account is the odd one out?

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Work-in progress

  2. Capital Work-in progress

  3. Technical know-how

  4. Patents

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Correct Option: A

Rent paid to Ram (landlord), it should be credited to __________.

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Rent A/c

  2. Ram

  3. Landlord A/c

  4. Cash A/c

Show answer
Correct Option: B
Explanation:

The accounting entry will be :

Rent A/c   Dr.     
  To Ram   A/c
(Being rent paid to ram)
  • Here Rent paid will be credited in Ram's account.

Which account is the odd one out?

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Interest Received A/c

  2. Interest Receivable A/c

  3. Interest Outstanding A/c

  4. Unaccrued Interest A/c

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Correct Option: A

Cash Embezzlement Account is _______________.

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. An Asset Account

  2. A Liability Account

  3. A Revenue Account

  4. An Expense Account

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Correct Option: D

Which account is the odd one out?

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Land

  2. Building

  3. Furniture

  4. Machinery

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Correct Option: A

The return of goods by a customer should be debited to ________________.

elements of book keeping and accountancy ledger and posting develop the understanding for posting of transactions and balancing of accounts classification of ledger (subdivision of ledger) and balancing of account meaning and importance of ledger

  1. Return Outward Account

  2. Carriage Inward Account

  3. Customer's Account

  4. Return Inward Account

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Correct Option: D

Closing balance of cash book is _____________ balance.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Debit

  2. Credit

  3. Zero

  4. Either (A) or (C)

Show answer
Correct Option: D
Explanation:

Total of the debit side of the cash book or cash A/c always exceeds its credit side because payments of a business cannot exceed the receipts amount. So, the cash book shows debit balance. When payments are exactly equal to the receipt of the business, it will show zero balance, but it can never show the credit balance. Thus, the cash book will always show debit balance or zero balance.

Credit balance of bank account in cash book shows ______________.

elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

  1. Overdraft

  2. Cash deposited in our bank

  3. Cash withdrawn from bank

  4. None of the above

Show answer
Correct Option: B
Explanation:

The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals.