Recording of Transactions

Result

Recording of Transactions - I Test 4

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Weekly Quiz Competition

Question 1
1 / -0

Identify which is the wrong rule?

A
Nominal account - debit all expenses & losses

B
Real account - credit what comes in

C
Nominal account - credit all incomes & gains

D
Personal account - debit the receiver

Solution

Account can be classified in to three categories i.e. Personal account, real account and nominal account. All these accounts are governed by some basic rules which are called "Golden Rule" of accountancy.

Rule for real account is:
Debit what comes in
Credit what goes out
Question 2
1 / -0

What comes in is to be debited, what goes out is to be credited?

A
Rules of Personal

B
Rules of Real

C
Rules of Nominal

D
All of these

Solution

Accounts are classified as personal account, real account and nominal account. There are certain basic rule against each account. These are called golden rule of accountancy.

Rule for Real Account is:
Debit what comes in
Credit what goes out
Question 3
1 / -0

Return of goods by a customer should be debited to __________.

A
Customers Account

B
Sales Return Account

C
Goods Account

D
Purchase Account

Solution

A transaction in which the goods is returned by the customer due to various reasons is called sales return.
Accounting entry need to be passed against the sales return is as follows:

Sales return A/c Dr.
To Customer A/c
Question 4
1 / -0

Which of the following is not an example of real A/c?

A
Machinery

B
Building

C
Cash

D
Creditor

Solution

Supplier of goods are called as creditors. The creditors are recorded as current liability in to the business.
Creditors are individual, firm or companies which are personal account and not the real account.
Question 5
1 / -0

Provision for doubtful debts account is a ________.

A
Asset

B
Liability

C
Income

D
None of these

Solution

Provision for doubtful debts is a liability for the business. it is shown under liability side of the balance sheet.
The amount for provision for doubtful debts changes every day as new provision made in the current year.
Bad debts for the current year are to subtracted from it, and an additional amount of provision is to be added in such provision for doubtful debts account.
Question 6
1 / -0

Interest, rent, electricity bill are types of _______ account.

A
Personal a/c

B
Impersonal a/c

C
Real a/c

D
Nominal a/c

Solution

Accounts are classifies as Personal Account, Real Account and Nominal Account.

All expense and income accounts are nominal accounts. Interest, rent, electricity, wages, salaries are expenses and are considered as nominal account. At the end of the financial year, all nominal accounts are transferred to trading and profit & loss account. None of the nominal account balance is carried over to the next financial year.
Question 7
1 / -0

Which of the following is an accounting equation?

A
Assets = Capital/Liabilities

B
Capital = Assets - Liabilities

C
Assets = Liabilities - Capital

D
Liabilities = Assets + Capital

Solution

Accounting equation may defined as:
Capital+Liabilities= Total assets

This can further be presented as:
Capital=Total assets-Liabilities
Question 8
1 / -0

In order to determine the amount of sales, to which of the following records one should refer?

A
Sales book.

B
Sales account.

C
Journal.

D
Total debtors account.

Solution

Sales account shows the total sales done by the organization in a particular period. This may have cash sales and credit sales both.
Question 9
1 / -0

__________ is a summary of all transactions relating to particular account.

A
Balance sheet

B
Trial balance

C
Ledger

D
Journal

Solution

Ledger is the principal book of accounts. Journal is kept only to facilitate for passing the entries. All entries which are passed in journal are posted in ledger. For every account , a separate ledger is opened. Ledger is a summary of all transactions relating to a particular account.
Question 10
1 / -0

Amount brought in by proprietor should be credited to ______ account.

A
Cash

B
Capital

C
Drawings

D
Creditors

Solution

Business Entity concept defines that the business and its owner are two separate legal entity. Owner is considered as a creditor like other creditor. Amount contributed by the owner as capital is treated as liability. Accounting entry will be as under:

Cash A/c Dr.
To Capital A/c

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 4

Result

Recording of Transactions - I Test 4

Score

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Rank

-

SHARING IS CARING

Question 1

Nominal account - debit all expenses & losses

Real account - credit what comes in

Nominal account - credit all incomes & gains

Personal account - debit the receiver

Solution

Question 2

Rules of Personal

Rules of Real

Rules of Nominal

All of these

Solution

Question 3

Customers Account

Sales Return Account

Goods Account

Purchase Account

Solution

Question 4

Machinery

Building

Cash

Creditor

Solution

Question 5

Asset

Liability

Income

None of these

Solution

Question 6

Personal a/c

Impersonal a/c

Real a/c

Nominal a/c

Solution

Question 7

Assets = Capital/Liabilities

Capital = Assets - Liabilities

Assets = Liabilities - Capital

Liabilities = Assets + Capital

Solution

Question 8

Sales book.

Sales account.

Journal.

Total debtors account.

Solution

Question 9

Balance sheet

Trial balance

Ledger

Journal

Solution

Question 10

Cash

Capital

Drawings

Creditors

Solution

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