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This set of MCQs helps students to learn about various important things such as, describe the nature of transaction and source documents, explain the preparation of accounting vouchers, supply accounting equation to explain the effect of transactions, record transactions using rules of debit and credit, explain the concept of book of original entry and recording of transactions in journal, explain the concept of ledger and posting of journal entries to the ledger accounts.
The liabilities of a firm are Rs. 60,000 and the capital of the proprietor is Rs. 40,000. The total assets are:
Journal is a book of in accounting.
Liabilities and Assets amount to Rs. 50,000 and Rs. 7,800 respectively. The difference Amount shall represent-
The basis of recording transactions is-
As per American Belief, Accounts are of how many types-
Which of the following is entered in cash – book-
Cash – book always show-
Debit means,
An increase in asset
A decrease in asset
An increase in liability
An increase in capital
The following account has a debit balance,
Creditor’s A/c
Capital A/c
Building A/c
Loan A/c
It is a system of paying advance in the beginning and reimbursing the amount spent from time to time to the petty cashier.
Imprest System
Financial System
Analytical System
Ordinary System
The Sales Book is a part of:
Journal
Trading A/c
Balance Sheet
Ledger
Which account will be debited in case the Life insurance premium is paid by the proprietor from business cash?
Drawings A/c
Capital A/c
Insurance A/c
Cash A/c
Name the transaction that is recorded in both sides of Cash book simultaneously.
Contra Entry
Dual entry
Double entry
Single entry
What are total number of subsidiary books available to record financial transactions?
8
7
6
12
If a film borrows a sum of money, there will be
Increase in capital
Decrease in capital
No effect on capital
None of the above
