Which one of the following will be treated as revenue expenditure?
A. Cost incurred for a new exit as required under the local bodies, by laws
B. Interest paid on loan during the construction of works
C. Cost of pulling down on old building as also the payment made to the architect for the plan of a new building
D. A dealer in purchases sewing machines and spends some money on the repair of the machines damaged while goods in transit
Select an option to see the answer and solution.
Bill Receivable Book is a part of the:
A. Ledger
B. Balance Sheet
C. Journal
D. Profit and Loss Account
Select an option to see the answer and solution.
Preliminary expenses are an example of:
A. Deferred Revenue Expenditure
B. Revenue Expenditure
C. Capital Expenditure
D. Common Expenditure
Select an option to see the answer and solution.
Ayush started business on 1st April, 1995 with a capital of Rs. 25,000 and a loan of Rs. 12,500. Total assets and liabilities at the end of 31st March, 1996 amounted to Rs. 75,000 and Rs. 12,500 respectively. He invested a further capital of Rs. 12,500 during the year and withdrew Rs. 7,500 during the relevant financial, period. His closing capital and profits would be respectively:
A. Rs. 62,500 and Rs. 32,500
B. Rs. 50,000 and Rs. 40,000
C. Rs. 70,000 and Rs. 47,500
D. Rs. 55,000 and Rs. 42,500
Select an option to see the answer and solution.
Errors which affect one side of an account are called:
A. single sided errors
B. double sided errors
C. triple sided errors
D. compensation errors
Select an option to see the answer and solution.
Subscription received in advance is . . . . . . . .
A. an income
B. an asset
C. a liability
D. an expense
Select an option to see the answer and solution.
The term "Imprest system" is used in relation to:
A. Purchase book
B. Sales book
C. Cash book
D. Petty cash book
Select an option to see the answer and solution.
Which one of the following is an example of an intangible asset?
A. Preliminary expenses
B. Discount on issue of debentures
C. Investments
D. Copyrights
Select an option to see the answer and solution.
Premium on issue of debentures is a . . . . . . . .
A. capital loss
B. capital profit
C. revenue profit
D. revenue loss
Select an option to see the answer and solution.
The credit balance in the bank account is:
A. an asset
B. a liability
C. an expense
D. contingent liability
Select an option to see the answer and solution.
Petty cash may be used to pay . . . . . . . .
A. the expenses relating to postage and conveyance
B. salaries and wages to the final staff
C. for the purchase of furniture and fittings
D. other recurring expenses
Select an option to see the answer and solution.
A debit balance in the income and expenditure account denotes excess of . . . . . . . . over . . . . . . . .
A. income, expenditure
B. assets, liabilities
C. liabilities, assets
D. expenditure, incomes
Select an option to see the answer and solution.
Which of the following errors will not cause the trial balance to be out of order?
A. Rs. 590 received from P. Das has been debited to (b) Rs. 10 Das
B. A purchase of Rs. 258 from Lekhi has been debited to his account as Rs. 285
C. The total of the discount columm of the cash book (cr.) is Rs. 20 short
D. An invoice for Rs. 460 is entered in the sales book as Rs. 640
Select an option to see the answer and solution.
Noting charges account is debited by . . . . . . . .
A. the presenter of bill
B. the discounting banker
C. the acceptor
D. the endorser
Select an option to see the answer and solution.
Share application account is a . . . . . . . .
A. nominal
B. real
C. personal
D. None of these
Select an option to see the answer and solution.
Which of the following is considered while calculating purchase consideration under Net asset method?
A. Assets taken over
B. Liabilities taken over
C. Goodwill taken over
D. All of the above
Select an option to see the answer and solution.
An item of Rs. 72 has been debited to a personal account as Rs. 27, is an error of:
A. Commission
B. Omission
C. Principle
D. None of these
Select an option to see the answer and solution.
Purchases made on credit not recorded at all would affect . . . . . . . .
A. Purchases account
B. Suppliers account
C. Purchases account and suppliers account
D. Wages account
Select an option to see the answer and solution.
Bills payable book is a . . . . . . . .
A. subsidiary book
B. principal book
C. ledger
D. memorandum book
Select an option to see the answer and solution.
Book-keeping is often confused with:
A. Algebra
B. Statistics
C. Cashier
D. Accounting
Select an option to see the answer and solution.