Tag: elements of accounts

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Multiple choice elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

A cheque of Rs. 2,345 issued by Miss Meena was recorded in deposit column as Rs. 2,435. To ascertain the balance as per Cash Book of Miss Meena ____________________________.

  1. Rs. 3,345 should be added to the balance as per Pass Book

  2. Rs. 2, 435 should be subtracted from the balance as per Pass Book

  3. Rs. 4,780 should be subtracted from the balance as per Pass Book

  4. Rs. 10 should be added to the balance as per Pass Book
Reveal answer Fill a bubble to check yourself
C Correct answer
Multiple choice elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

A bills receivable of Rs $10,000$ which was received from a debtor in full settlement for a claim will be recorded in ______________.

  1. Bills receivable book

  2. Journal Proper (General Journal)

  3. Purchases return book

  4. Purchase book
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A bill receivable received from a debtor is recorded in the Bills Receivable Book.

Multiple choice elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

It is easy to transmit the shares in case of D'mat form.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This statement is 'True' because of the following reasons: 
(i)  Transmission of shares means the passing of property or title in shares by the operation of law from a member to his legal representatives. Such transmission of shares is necessary when a person dies or becomes insane or insolvent. 
(ii)  For transmission to take place, a lengthy procedure is involved. 
(iii)  The legal representative of the shareholder will make a request to the company to register him as a member of the company in place of the original one.
(iv)  The legal representative will submit an application to be a member. 
(v)  Along with the application, the legal representative will submit the original share certificate and the evidence regarding succession rights.
(vi)  The Secretary has also to ensure that the document proof has been issued by a competent court and is in proper order 
(vii)   A meeting of Board of Directors will be held wherein a resolution will be passed to effect transmission of shares. 
(viii) Then the Secretary will make necessary changes in the Register of Members and a new share certificate will be issued.
(ix)  If transmission was to be done using the D'mat form, the above procedure and formalities would riot be needed to be followed.

Multiple choice elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

When Accounts in the ledger are balanced ?

  1. Daily

  2. Weekly

  3. Monthly

  4. Yearly
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The ledger account are periodically balanced at the end of the accounting period, with the object of ascertaining the net position of each amount. Balancing of an account means  that two sides are totalled and the difference between them is shown on the side, which is shorter in order to make their totals equal.

Multiple choice elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

Purchases accounts always shows __________ balance.

  1. debit

  2. credit

  3. negative

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Purchase account is a part of trading A/c and shows the amount of goods purchased for a business by a trader for resale. 


Hence, Purchases account always show debit balance. when the debit side of the ledger account exceeds the credit side, the balancing figure is termed as Debit balance. 
All the assets expenses and losses show Debit balance.

Multiple choice elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

Sales account always shows _________ balance.

  1. debit

  2. credit

  3. positive

  4. negative
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Sales account reflects the amount of revenue earned by the sale of goods/services of a business. Thus, it is an income for the business and according to the rule of accounting, all incomes are to be credited and all expenses are to be debited. Thus, a sale account always show credit balance.

Multiple choice elements of accounts journal proper balancing of accounts balancing the accounts introduction to journal proper

Total of all debit balance must be _____________ to the total of all credit balances.

  1. different

  2. equal

  3. more

  4. less
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under the double entry system of accounting, every transaction has dual aspects  i.e. debit and credit. Thus, the total of debit balances must equal to the total of credit balances of the Trial balance to ensure the arithmetical accuracy of accounts.