(A) Credited to capital accounts
(B) Debited to capital accounts
(C) Debited to partners’ current accounts
(D) Credited to partners’ current accounts
The answer is (D) Credited to partners’ current accounts
When a petty cash book is kept there will be
(A) No entries made at all in the general ledger for items paid by petty cash
(B) The same number of entries in the general ledger
(C) Fewer entries made in the general ledger
(D) More entries made in the general ledger
The answer is (C) Fewer entries made in the general ledger
If we take goods for own use we should
(A) Debit Drawings Account, Credit Purchases Account
(B) Debit Drawings Account: Credit Stock Account
(C) Debit Sales Account: Credit Stock Account
(D) Debit Purchases Account: Credit Drawings Account
The answer is (A) Debit Drawings Account, Credit Purchases Account
At the balance sheet date, the balance on the Accumulated Provision for Depreciation Account is
(A) Simply deducted from the asset in the Balance Sheet
(B) Transferred to Profit and Loss Account
(C) Transferred to the Asset Account
(D) Transferred to Depreciation Account
The answer is (A) Simply deducted from the asset in the Balance Sheet
Entered in the Purchases Journal are
(A) Discounts received
(B) Purchases invoices
(C) Payments to suppliers
(D) Trade discounts
The answer is (B) Purchases invoices
Sales invoices are first entered in
(A) The Cash Book
(B) The Purchases Journal
(C) The Sales Journal
(D) The Sales Account
The answer is (C) The Sales Journal
Discounts received are
(A) Buyer of goods granted discount by seller
(B) Deducted when we receive cash
(C) Given by us when we sell goods on credit
(D) None of these
The answer is (A) Buyer of goods granted discount by seller
If you want to ensure that your money will be secured if cheques sent are wasted in the post, you should
(A) Always pay by cash
(B) Cross your Cheques ‘Account Payee only, Not Negotiable.’
(C) Always get the money in person
(D) Not use the postal service in future
The answer is (B) Cross your Cheques ‘Account Payee only, Not Negotiable.’
The charges of placing commodities into a saleable condition should be charged to
(A) Trading account
(B) P & L a/c
(C) Balance Sheet
(D) None of the above
The answer is (B) P & L a/c
Which of these best explains fixed assets?
(A) Are bought to be used in the business
(B) Are expensive items bought for the business
(C) Are items which will not wear out quickly
(D) Are of long life and are not purchased specifically for resale
The answer is (D) Are of long life and are not purchased specifically for resale