Nature of Accounts and Rules of Debit and Credit Test 11

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Nature of Accounts and Rules of Debit and Credit Test 11

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Question 1
1 / -0

...... is the document supporting the veracity of a transaction.

A
voucher

B
RR

C
Acknowledgement

D
Debit/credit memo

Solution

Voucher is the document supporting the veracity of a transaction.
On the basis of source documents, a voucher detailing the accounts that are debited and credited is prepared.
There are two types of Accounting Vouchers
1. Cash Vouchers
2. Non-Cash Vouchers.
Therefore, Voucher relates to Cash receipt and payments, credit transactions
Question 2
1 / -0

Tick the correct statement

A
Trade discount is not recorded in the books of A/c

B
If a transaction is left to be recorded wholly or partially it is an error of principle

C
Purchase journal is opened for all types of purchases.

D
The amount of total sales can be ascertained from Debtors A/c

Solution

There are mainly two types of discounts
1. Trade Discount
2. Cash Discount
Trade discount is not recorded in the books of A/c as it is offered immediately at the time of sale of goods whereas cash discount is recorded in the books of accounts.
Question 3
1 / -0

Goods worth Rs 3000 were purchased on which the trader allowed Rs 200 as trade discount and 5% as cash discount if paid immediately. Purchase a/c will be debited by _____.

A
Rs 3000

B
Rs 2800

C
Rs 2750

D
Rs 2660

Solution

Discount are categorized as trade discount and cash discount. If any discount is allowed by the trader without any condition, its a general or trade discount. In such situation, purchases will be recorded in the books of account on the net price paid. In given situation purchase account will be debited by Rs.2800/-
Question 4
1 / -0

Vouchers include

A
Receipt , Cash Memo

B
Invoices, Bills

C
Cheque, counterfoil

D
All the three

Solution

A voucher include receipts, cash memo, invoices, bills, cheques, counterfoil etc.
There are two types of Vouchers
1. Source Voucher; It includes receipts, cash memos, invoices, bills, cheques and counterfoils.
2. Accounting Vouchers: It includes Cash Vouchers and Non Cash Vouchers.
Question 5
1 / -0

Which of the following is not a book of original entry?

A
The Journal

B
The Ledger

C
The Cash Book

D
The Bill Receivable Book

Solution

Books of original entry refers to the accounting journals in which business transactions are initially recorded. The information in these books is then summarized and posted into a general ledger, from which financial statements are produced.
Question 6
1 / -0

.......is the brief explanation why a particular account has been debited or credited.

A
Narraton

B
Explanatory notes

C
Notes to accounts

D
Footnotes

Solution

The narration explains a brief description of the transaction.
A brief explanation of the transaction, together with necessary details, is provided with the Journal entry. This explanation is called a narration. It provides the details of the Journal entry and helps understand the account debited or credited.
Question 7
1 / -0

Real accounts are related to _____________.

A
Assets

B
Expenses, losses and incomes

C
Debtors, creditors etc.

D
All 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.
Tangible real accounts: These accounts represent assets and properties which can be seen, touched, felt, measured, purchased and sold. For e.g. Machinery account, Cash account.
Intangible real accounts: These accounts represent assets and properties which cannot be seen, touched or felt but they can be measured in terms of money. For e.g. Goodwill account, Patents account, etc.
The rule for real account is: Debit what comes in; Credit what goes out.
Question 8
1 / -0

Personal accounts are related to ________.

A
Assets and liabilities

B
Expenses, loses and incomes

C
Debtors, creditors etc.

D
All of the above

Solution

These accounts are related to individuals, firms, companies, etc.
A few examples of personal account includes debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, suppliers, capital, drawings, etc.
Question 9
1 / -0

Main object of preparing a 'Journal' is to __________.

A
ascertain the financial position of the business

B
journalise the cash transactions

C
make posting in the ledger

D
record the business transactions first of all

Solution

Main objectives of preparing journal: To make permanent and systematic record of all the financial transactions.
Question 10
1 / -0

Capital brought in by the proprietor will result in _______________.

A
Increase in asset and increase in Capital

B
Increase in liability and decrease in asset

C
Increase in asset and decrease in liability

D
Increase in one asset and decrease in another asset

Solution

Capital brought in by the proprietor will result in an increase in cash in the business on the other there will be an increase in capital.
Therefore, There will be an Increase in assets and increase in Capital

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Nature of Accounts and Rules of Debit and Credit Test 11

Result

Nature of Accounts and Rules of Debit and Credit Test 11

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Rank

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SHARING IS CARING

Question 1

voucher

RR

Acknowledgement

Debit/credit memo

Solution

Question 2

Trade discount is not recorded in the books of A/c

If a transaction is left to be recorded wholly or partially it is an error of principle

Purchase journal is opened for all types of purchases.

The amount of total sales can be ascertained from Debtors A/c

Solution

Question 3

Rs 3000

Rs 2800

Rs 2750

Rs 2660

Solution

Question 4

Receipt , Cash Memo

Invoices, Bills

Cheque, counterfoil

All the three

Solution

Question 5

The Journal

The Ledger

The Cash Book

The Bill Receivable Book

Solution

Question 6

Narraton

Explanatory notes

Notes to accounts

Footnotes

Solution

Question 7

Assets

Expenses, losses and incomes

Debtors, creditors etc.

All of the above

Solution

Question 8

Assets and liabilities

Expenses, loses and incomes

Debtors, creditors etc.

All of the above

Solution

Question 9

ascertain the financial position of the business

journalise the cash transactions

make posting in the ledger

record the business transactions first of all

Solution

Question 10

Increase in asset and increase in Capital

Increase in liability and decrease in asset

Increase in asset and decrease in liability

Increase in one asset and decrease in another asset

Solution

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