Nature of Accounts and Rules of Debit and Credit Test 18

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Nature of Accounts and Rules of Debit and Credit Test 18

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Question 1
1 / -0

Of the following account types, which would be increased by a debit_________.

A
'Liabilities and expenses

B
Assets and equity

C
Assets and expenses

D
Equity and revenues

Solution

As per Real Rule,
Debit - All increase in assets.

As per Nominal Rule
Debit - All Expenses and losses

Therefore, An account is debited if there is an increase in assets or expenses.
Question 2
1 / -0

A cheque for Rs. $$10,000$$ received from Ramesh, a trade debtor, should be accounted for as __________________.

A
Debit- Bank A/c, Credit- Ramesh A/c

B
Debit- Cash A/c, Credit- Sales A/c

C
Debit- Ramesh A/c, Credit- Cash A/c

D
Debit- Cash A/c, Credit- Ramesh A/c
Question 3
1 / -0

The document issued by any bank on behalf of the importer, promising to pay the money for imported goods is called _______________.

A
Letter of credit

B
Debt Card

C
Bank Draft

D
None of the above

Solution

A letter of credit, or "credit letter," is a letter from a bank guaranteeing that a importer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
Question 4
1 / -0

Journal and ledger records transactions in _________________.

A
A chronological order and analytical order respectively.

B
An analytical order and chronological order respectively.

C
A chronological order only

D
An analytical order only

Solution

Journal and ledger records transactions in a chronological order and analytical order respectively.
Journal has 5 columns namely Date, Particulars, Ledger Folio, Debit Amount, Credit Amount.
Journal is known as the books of Prime Entry or Books of Original Entry.
The processing of posting the business transaction in a Journal is known as Journalizing.
Question 5
1 / -0

The bank statement reports a credit transfer of Rs. $$4,000$$ from a customer. Accounting entries for this is?

A
A debit in the cash account and a credit the account of the debtor concerned

B
A debit in the bank account and a credit in the cash account

C
A debit in the bank account and a credit in the account of the customer concerned

D
A debit in the account of the debtor concerned and a credit in the bank account
Question 6
1 / -0

Which of the following is true when a debtor pays his dues?

A
The asset side of the balance sheet will decrease

B
The asset side of the balance sheet will increase

C
The liability side of the balance sheet will decrease

D
There is no change in total assets or total liabilities

Solution

when a debtor pays his dues then
The Journal Entry is
Cash a/c Dr.
To Debtors a/c
(Being amount received from the debtors)

Therefore, there is the increase in cash and a decrease in debtors which results in no change in total assets or total liabilities.
Question 7
1 / -0

Journal is the book of _______ in which every transaction is recorded before being posted into the ledger.

A
Primary entry

B
Secondary entry

C
Third entry

D
None of above

Solution

Journal is the book of Primary Entry in which every transaction is recorded before being posted into the ledger.
Journal is the book where a business transaction is entered the first time. The process of posting a business transaction in the Journal books is known as journalizing.
The process of transferring an entry from a journal to a ledger is known as posting.
Question 8
1 / -0

The rule for real accounts is _______________.

A
debit the receiver, credit the goes out

B
debit what comes in, credit what goes out

C
debit all expenses and losses, cedit all incomes and gains

D
all of the above

Solution

There are mainly three types of accounts: Real, Personal, and Nominal accounts. Personal accounts are classified into three subcategories: Artificial, Natural, and Representative.
All assets of a firm, which are tangible or intangible, fall under category "Real Accounts". Tangible real accounts are those which can be touched and felt physically, whereas intangible real accounts are related to things that can't be touched and felt physically.

The golden rule for real accounts is: Debit what comes in, Credit what goes out.
Question 9
1 / -0

The purchase of supplies for cash will result in an _______________.

A
Increase in cash and a decrease in capital

B
Increase in cash and an increase in supplies

C
Increase in supplies and a decrease in cash

D
Increase in equipment and an increase in capital

Solution

As supplies are purchase, therefore, the balance of supplies will increase. Supplies are assets for the business so, there will be an increase in assets, on the other hand, the balance of cash will decrease. Cash is also an asset.
Hence, there will be an Increase in supplies and a decrease in cash
Question 10
1 / -0

Journal has _______ columns.

A
$$4$$

B
$$5$$

C
$$3$$

D
$$6$$

Solution

Journal has 5 columns namely Date, Particulars, Ledger Folio, Debit Amount, Credit Amount.
Journal is known as the books of Prime Entry or Books of Original Entry.
The processing of posting the business transaction in a Journal is known as Journalizing.

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Re-Attempt Weekly Quiz Competition

Nature of Accounts and Rules of Debit and Credit Test 18

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Nature of Accounts and Rules of Debit and Credit Test 18

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SHARING IS CARING

Question 1

'Liabilities and expenses

Assets and equity

Assets and expenses

Equity and revenues

Solution

Question 2

Debit- Bank A/c, Credit- Ramesh A/c

Debit- Cash A/c, Credit- Sales A/c

Debit- Ramesh A/c, Credit- Cash A/c

Debit- Cash A/c, Credit- Ramesh A/c

Question 3

Letter of credit

Debt Card

Bank Draft

None of the above

Solution

Question 4

A chronological order and analytical order respectively.

An analytical order and chronological order respectively.

A chronological order only

An analytical order only

Solution

Question 5

A debit in the cash account and a credit the account of the debtor concerned

A debit in the bank account and a credit in the cash account

A debit in the bank account and a credit in the account of the customer concerned

A debit in the account of the debtor concerned and a credit in the bank account

Question 6

The asset side of the balance sheet will decrease

The asset side of the balance sheet will increase

The liability side of the balance sheet will decrease

There is no change in total assets or total liabilities

Solution

Question 7

Primary entry

Secondary entry

Third entry

None of above

Solution

Question 8

debit the receiver, credit the goes out

debit what comes in, credit what goes out

debit all expenses and losses, cedit all incomes and gains

all of the above

Solution

Question 9

Increase in cash and a decrease in capital

Increase in cash and an increase in supplies

Increase in supplies and a decrease in cash

Increase in equipment and an increase in capital

Solution

Question 10

$$4$$

$$5$$

$$3$$

$$6$$

Solution

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