Nature of Accounts and Rules of Debit and Credit Test 9

Result

Nature of Accounts and Rules of Debit and Credit Test 9

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Bank A/c is a __________.

A
Real a/c

B
Nominal a/c

C
Personal a/c

D
Dummy a/c

Solution

Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular, to record credit transactions. Personal accounts are of the following types:
1. Natural persons': An account recording transactions with an individual is termed as a natural persons' personal account.

2. Artificial or legal persons': An account recording financial transactions with an artificial person created by law or otherwise is termed as an artificial persons' personal account.

3. Representative personal account: An account indirectly representing a person or persons is known as representative personal account. When accounts are of similar nature and their number is large, it is better to group them under one head and open a representative personal account.

Bank account is a personal account as it is related to a banking firm, which is an artificial person. All those accounts which are related to a person, whether, artificial or natural, are termed as personal accounts.
Question 2
1 / -0

Real a/c can have a _______ balance only.

A
credit

B
debit

C
both

D
None

Solution

There are mainly three types of accounts: Real, Personal and Nominal accounts. All assets of a firm, which are tangible or intangible, fall under the category "Real accounts". Tangible real accounts are related to things that can be touched or physically felt, whereas intangible real accounts are those that can't be touched and physically felt. Real accounts relate to assets. When assets are received in the business the particular asset accounts are debited. When assets are sold or otherwise disposed of, the particular asset accounts are credited. So, if an asset account has a balance it must be a debit balance. It indicates the value of asset in the possession of the business.
Question 3
1 / -0

Sales proceed of own flat put in business by proprietor would cause ____________.

A
Cash in hand and owners capital to increase

B
External liability to decrease

C
Total liabilities to increase

D
Total assets remain unchanged

Solution

The owner's capital is the part of the accounting equation that represents the liquid cash that the company has earned, which it has on hand for daily operations as well as capital investments. Sales proceed of own flat put in business will increase cash in hand of business (as it is capital investment) and ultimately increases owners capital as it is the addition to the existing cash balance of business.
Question 4
1 / -0

Rs. 2100 received from Mr. David which was earlier written off as bad debt will be credited to ___________.

A
David A/c

B
Debtors A/c

C
Bad debts recovered A/c

D
profit and loss A/c

Solution

The amount which are not recoverable from the customers to whom goods were sold on credit, considered as loss to the business. These are called bad debts and to be debited to bad debts written off a/c.
If the same amount is recovered later on, this will be treated as income and to be credited to "Bad debts recovered a/c."
Question 5
1 / -0

In Real A/c credit means _______.

A
what comes in

B
what goes out

C
income

D
losses

Solution

Golden rule of accounting for real account is.

Debit what comes in i.e. addition
Credit what goes out i.e. reduction
Question 6
1 / -0

In Real A/c debit means __________.

A
what comes in

B
what goes out

C
income

D
losses

Solution

Golden rule of accounting for real account is:

Debit what comes in i.e. addition
Credit what goes out i.e. reduction
Question 7
1 / -0

A journal is also known by_____.

A
Account current

B
Book of original entry

C
Purchase day book

D
Current Account

Solution

Every business transaction must first be recorded in journal. Hence all original entries are found in journal itself which is a subsidiary books.
Subsidiary books of accounts are also called book of original entry as all the transactions are recorded originally or at the first instance in these books.
Question 8
1 / -0

In Nominal a/c credit means ____________.

A
what comes in

B
what goes out

C
income/gains

D
losses

Solution

Golden rule for Nominal accounts says that:

Debit all the expenses and losses.
Credit all the revenue and gains.
Question 9
1 / -0

When a entry involves two or more accounts it is called ________.

A
Simple entry

B
Double entry

C
Compound entry

D
Complex entry

Solution

When a transaction is involving more than two accounts, entry is called a compound entry.
Goods worth Rs.1000 is purchased on a discount of Rs.100 by paying cash of Rs.900 is an example of combined entry where accounting entry will be:

By Goods A/c Dr. Rs.1000
To Cash A/c Cr. Rs.900
To Cash discount A/c Cr. Rs.100
Question 10
1 / -0

In Nominal A/c debit means _________.

A
What comes in

B
What goes out

C
Income

D
Expenses/losses

Solution

Golden rule for Nominal accounts says that:

Debit all the expenses and losses
Credit all the revenue and gains

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Nature of Accounts and Rules of Debit and Credit Test 9

Result

Nature of Accounts and Rules of Debit and Credit Test 9

Score

-

Rank

-

SHARING IS CARING

Question 1

Real a/c

Nominal a/c

Personal a/c

Dummy a/c

Solution

Question 2

credit

debit

both

None

Solution

Question 3

Cash in hand and owners capital to increase

External liability to decrease

Total liabilities to increase

Total assets remain unchanged

Solution

Question 4

David A/c

Debtors A/c

Bad debts recovered A/c

profit and loss A/c

Solution

Question 5

what comes in

what goes out

income

losses

Solution

Question 6

what comes in

what goes out

income

losses

Solution

Question 7

Account current

Book of original entry

Purchase day book

Current Account

Solution

Question 8

what comes in

what goes out

income/gains

losses

Solution

Question 9

Simple entry

Double entry

Compound entry

Complex entry

Solution

Question 10

What comes in

What goes out

Income

Expenses/losses

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.