Recording of Transactions

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Recording of Transactions - I Test 22

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Weekly Quiz Competition

Question 1
1 / -0

Purchase of goods on credit from A is recorded as ________________.

A
Debit purchases A/c; Credit cash A/c

B
Debit A A/c; Credit purchase A/c

C
Debit purchase A/c; Credit A's A/c

D
Debit stock A/c; Credit purchase A/c

Solution

Journal Entry :-
Purchase A/c Dr...
To A's A/c..
(Being goods purchased from A on credit)
Question 2
1 / -0

Which of the following statements is true?

A
Building account in a nominal account

B
Outstanding rent account is a non-personal account

C
Every debit has a corresponding credit

D
Incomes are debited
Solution
Option C is a true statement, because:-
According to double entry system, Every debit has a corresponding credit.
Building a/c is a real account. Building is an asset & comes under real account.
Outstanding rent is a personal account as it related to a specific person.
All Incomes & Gains are credited - as per golden rules of Nominal Account.
Question 3
1 / -0

Proprietor's account is a __________.

A
personal account

B
real account

C
nominal account

D
none of the above

Solution

Personal accounts are related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, capital, drawings, etc.
1. Natural personal accounts: This type of personal accounts is the simplest to understand out of all and includes God's creations who have the ability to deal, who, in most cases, are people. E.g. Kumar's A/c, Adam's A/c, etc.
2. Artificial personal accounts: Personal accounts which are created artificially by law, such as corporate bodies and institutions, are called Artificial personal accounts. E.g Pvt. Lt companies, clubs, etc.
3. Representative personal accounts: accounts which represents a certain person or a group directly or indirectly.
Proprietor's account ,is related to account of a person which is a God's creations. Hence, it is classified as a personal account.
Question 4
1 / -0

Prepaid salary account is a ___________.

A
Personal A/c

B
Real A/c

C
Nominal A/c

D
None of the above

Solution

Prepaid (Unexpired) expense is a personal account and is shown on the Assets side of a balance sheet.
According to the accrual concept of accounting, transactions are recorded in the books of accounts at the time of their occurrence and not when the actual cash or a cash equivalent is received or paid.
Question 5
1 / -0

Patent Right is ________ account.

A
personal

B
real

C
nominal

D
expense

Solution

Intangible real accounts represents assets and properties which cannot be seen, touched or felt but can be measured in terms of money.
For e.g. Goodwill account, Trademark account, Patents account. Patent account is an intangible asset and hence, is classified as a real account.
Question 6
1 / -0

Patents account is a ___________.

A
Personal account

B
Real account

C
Nominal account

D
None of the above

Solution

Accounts relating to properties or assets are known as "Real Accounts". A separate account is maintained for each asset e.g. Cash, Machinery, Building, etc. Real accounts can be further classified into tangible and intangible.
Intangible real accounts represents assets and properties which cannot be seen, touched or felt but can be measured in terms of money. For e.g. Goodwill account, Trademark account, Patents account.
Patent account is an intangible asset and hence, is classified as a real account.
Question 7
1 / -0

Received a first and final dividend of $60$ paise in the rupee from the Official Receiver of Mr. Ram who owed $Rs. 2,000$ .

A
Discount allowed A/c be debited with $Rs. 800$

B
Bad debts recovered A/c be debited with $Rs. 12,00$

C
Bad debt A/c be credited with $$Rs. 800

D
Bad debt A/c be debited with $$Rs. 800

Solution

The Journal Entry will be..

Cash a/c Dr. 1200
Bad debt a/c Dr 800
To Ram a/c. 2000
Question 8
1 / -0

Bill payable account is a ___________.

A
personal A/c

B
real A/c

C
nominal A/c

D
none of the above

Solution

A bill payable is a document which shows the amount owed for goods or services received on credit (meaning not paid at the time that the goods or services were received). The provider of the goods or services is referred to as the supplier or vendor. Hence, a bill payable is also known as an unpaid vendor invoice.
Question 9
1 / -0

Goods destroyed by fire should be credited to ___________.

A
goods lost by fire account

B
sales account

C
purchase account

D
cash account

Solution

When goods are destroyed by fire, then the "Loss by fire A/c" is debited and "Purchases A/c" is credited. The goods destroyed by fire is considered to be loss for the business and is classified as a nominal account. Therefore, according to the rule of nominal account, all the expenses and losses are to be debited. Hence, "Loss by fire A/c" is debited when goods are destroyed by fire and "purchases A/c" is credited.
Question 10
1 / -0

Bank overdraft account is a ___________.

A
Personal Account

B
Real Account

C
Nominal Account

D
All of the Above

Solution

Bank Account is a personal account. It comes under the category of Artificial personal account. Artificial persons are created by law and Real persons are members in it. So Bank account is a personal account.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 22

Result

Recording of Transactions - I Test 22

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SHARING IS CARING

Question 1

Debit purchases A/c; Credit cash A/c

Debit A A/c; Credit purchase A/c

Debit purchase A/c; Credit A's A/c

Debit stock A/c; Credit purchase A/c

Solution

Question 2

Building account in a nominal account

Outstanding rent account is a non-personal account

Every debit has a corresponding credit

Incomes are debited

Solution

Question 3

personal account

real account

nominal account

none of the above

Solution

Question 4

Personal A/c

Real A/c

Nominal A/c

None of the above

Solution

Question 5

personal

real

nominal

expense

Solution

Question 6

Personal account

Real account

Nominal account

None of the above

Solution

Question 7

Discount allowed A/c be debited with Rs.800Rs. 800Rs.800

Bad debts recovered A/c be debited with Rs.12,00Rs. 12,00Rs.12,00

Bad debt A/c be credited with $$Rs. 800

Bad debt A/c be debited with $$Rs. 800

Solution

Question 8

personal A/c

real A/c

nominal A/c

none of the above

Solution

Question 9

goods lost by fire account

sales account

purchase account

cash account

Solution

Question 10

Personal Account

Real Account

Nominal Account

All of the Above

Solution

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Discount allowed A/c be debited with $Rs. 800$

Bad debts recovered A/c be debited with $Rs. 12,00$