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2) When Cash is withdrawn from bank, the bank ______ customers account.
Ans :Debit
5) Taking cash as source book with debit balance , cash dishonored will be added or subtracted
from source bk
Ans : Subtracted
6) When balance as per cash bk is te starting point to ascertain te balance as per pass bk, interest
charged by bank is _______
Ans : subtracted.
Ans : Credit
10. what is the difference between work in progress and work in process?
Ans: There are two types of manufacturing : discrete manufacturing[normal
manufacturing] n continuous manufacturing[oil refinery].
12. Details of salary,wages etc nominal accounts are presented in general ledger
These items did appear on the bank statement, but they did not appear on the company’s books.A
common example of a bank reconciliation item that will require a journal entry is the bank
service charge. The bank service charge is often shown on the last day of the bank statement.
Since it is on the bank statement, but not yet on the company’s books, you will need to credit
Cash and to debit an expense such as Bank Charges or Miscellaneous Expense.
14. What is retained earnings?
Retained earnings represent the corporation’s cumulative earnings that have not been distributed
to its stockholders.
a transaction not being recorded in a journal in the first place (or being recorded incorrectly)
a journal entry not being posted to the ledger (or being posted twice)
an entry being made in an incorrect ledger account (on the correct side)
entries being made on the wrong side of two ledger accounts (that is, reversing what should
be debited and credited)
offsetting errors (also known as compensating errors)
21. Withdrawal of cash from bank by the properitor for office use should be credited to
Ans. Bank a/c
22. Repairs incurred before using a 2nd hand machine purchase recently is what kind of revenue?
Ans. Capital revenue
1) The sales book is undercast by Rs. 2000 – what type of error is this?
Error of commission
3) The provisions for bad debts is charged to profit and loss a/c and is deducted from
debtors in the bal sheet.
2.Under inflationary condition which method shows highest value of closing stock?
Ans.FIFO
6.Carriage inward and carriage outward put in ___________ side of Trial balance
Ans.Debit
10.opening stock________
Ans.increases gross profit
decreases gross profit
does not affect the gross profit
12.posting the correct amount to the correct side of a wrong ledger a/c will it affect tb or not?
Ans. It won't
13.posting the wrong amount to the correct side of a wrong ledger a/c will it affect the tb?
Ans.It will.
2) For providing depreciation on lease hold property the appropriate method of depreciation is
a) Replacement method
b) Revaluation method
c) Fixed instalment method
Ans: Fixed instalment method
1) Depreciation is charged on the book value of the asset each year in case of diminishing
balance method – True
2) The asset appears always at original cost in case depreciation is credited to provision for
depreciation account. – True
3) Inventory is valued at lower of the cost or net realisable value on account of the accounting
principle of:
a) Consistency
b) Conservatism-Correct answer
c) Realisation
1) The system which gives a continuous information regarding quantum and value of inventory
is known as:
a) Continuous stock taking
b) Periodic inventory
c) Perpetual inventory- Correct answer
1) What are the causes of depreciation?
a) Wear and tear
b) Exhaustion
c) Obsolescence
d) Efflux of time
e) Accidents
1) Factors affecting the amount of depreciation.
a) Cost of the asset
b) Estimated scrap value
c) Estimated useful life
1) Profit or loss on depreciation fund investment is transferred to:
a) Profit and Loss account
b) Asset Account
c) Depreciation Reserve Account-Correct answer
1) The interest lost on the acquisition of an asset is taken into account in calculating
depreciation in
a) Annuity method
1. The charge for the use of the asset remains uniform each year in case of straight line
method
False
2. The error of complete omission does not affect the agreement of trial balance.
3. Salaries & wages are debited to –
a) Trading account
b) Profit & loss account
c) Profit & loss appropriation account
d) None
1. What is imprest system?(system of petty cash book where a certain amount is given to
petty cashier at the beginning of a fixed month)
2. How will you journalise the transaction 'Interest due on a loan'?(
3. An estimate of future bad debts is ____________ (provision for doubtful debt)
4. __________ discount is not recorded in the book of accounts. (Ans. Trade)
5. Errors disclosed by trial balance (partial omission of transaction, posting of the wrong
amount, posting on the wrong side, wrong totalling or balancing)
6. Drawings account is a ______ account (Ans.personal)
7. _________ columns of the cash book are never balanced (discount)
8. The entry made on both the sides of the cash book is _________ (contra entry)
9. The interest on customer's deposit account is entered in the ______ side of the pass
book (credit)
10. ______ stock will not be appearing in the trial balance ( Closing)
1. What Type of Error is : Ignoring Depreciation on Fixed Assets completely
Error of Omission
3. What Statement gives the details regarding investment in assets and how they are
financed in an accounting period
Cash Flow Statement
7. Assets which are held for produce and not for selling are called -----------------
Fixed Assets
10. The Audit report that doesn't agree with the Management's version is called ...........
Adverse Report
Cash sales are entered in sales day book. true or false ans:false.
The sales day book is used to record all credit sales of goods dealt
with by the trader in his business. Cash sales, cash and credit sales
of assets are not entered in this book.
Ans: Each negotiable instrument has a validity. A cheque which has crossed maximum 6 months
from the date of signing the cheque is stale cheque.
What is cartage?
My list of questions
1. How will you journalize when bad debts are recovered?
(Ans. Cash account debited and bad debt recovery account credited)
4. The debit & credit both may represent either increase or decrease in an account balance.
5. What are the types of provisions?(Provisions for doubtful debts, provision for discount on
debtors)
6. What are the determinants of depreciation?(cost of assets installed, estimated useful life,
estimated salvage value)
8. A suspense account facilitates the preparation of financial statement even when the trial
balance has not tallied.
1.what is a reserve?
ans .the earnings of a company that remain after payment of dividends.
2. Is bad debt debited /credited?
ans.debited
3.Is provision for bad debt debited/credited?
ans.credited
4.what r wasting assets?
ans.assets which of lose their value because of use.eg.mines
5.which is the book of chronological record?
-----journal
6.The debts owing to others by the business is known as liabilities/ expenses
------liabilities
7.Goodwill is an example of what type of account?
---- intangible real A/c
8.An entry passed in the beginning of each current year is called Original entry/Opening entry?
-----Opening entry
9.When the total of debits and credits are equal, it represents debit balance/credit balance/nil
balance?
-------nil balance
10.When a cheque received from a customer is dishonoured, his account is debited/credited?
ans.debited
1) _________ inventory valuation method gives a more meaningful income statement but less
realistic
balance sheet.
LIFO
2) In ______ system of accounting inventory is considerd as nominal account.
Non Integrated
3) Whenever a cheque deposited is dishonoured, firm need to pass an adjusting entry.
True
4)Cost that cannot be directly related to the products.
Overhead
5)Two type of methods for charging depriciation-
Uniform charge methods
Declining charge depriciation methods