Tag: elements of accounts

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Questions Related to elements of accounts

Multiple choice elements of accounts subsidiary books - 1 introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Users of subsidiary books of accounts are ________.

  1. Financial Journalists.

  2. Risk Analysts.

  3. Cost Accountants.

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

Financial consultants often utilize subsidiary books to analyze the detailed transactional data of a business. These books provide the granular information necessary for professional financial assessment and reporting.

Multiple choice elements of accounts subsidiary books - 1 introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

The mistakes in the total of the subsidiary book will _____________.

  1. not affect the personal account of customers

  2. will affect the personal account of customers

  3. both a and b

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

A mistake in the total of a subsidiary book affects the ledger account (like the Sales Account) but does not impact the individual personal accounts of customers, as those are posted from the individual entries, not the total.

Multiple choice elements of accounts accounts from incomplete records - single entry system stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs

Credit purchase, during the year is ascertained by preparing ________.

  1. Total creditor's account

  2. Total debtor's account

  3. Cash account

  4. Opening statement of affairs
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation


Creditor's account is prepared to record the transaction of payment made to the supplier against the credit purchases and discount allowed by them. Credit purchases are recorded by debiting the purchases account and crediting the creditors account. Creditors account can be presented as:


 Particulars  Amount  Particulars   Amount
 To Cash/Bank    By Opening Balance B/f  
 To Discount    By Credit Purchases  
 To Closing Balance c/d      
   xxxx    xxxx

Multiple choice elements of accounts accounts from incomplete records - single entry system stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs

Credit sales be ascertained as the balancing figure in the __________.

  1. Creditors Account

  2. Statement of Affairs

  3. Debtors Account

  4. Income and Expenditure Account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Credit Sales can be ascertained by preparing Sundry Debtors Account which is given as below:

 Particulars  Amount  Particulars  Amount
 To Opening Balance B/f    By Cash/Bank  
 To Credit Sales    By Discount  
     By Closing balance C/f  
   xxxxx    xxxxx
Multiple choice elements of accounts accounts from incomplete records - single entry system stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs

If capital as on 31st March, 2018 (closing capital) is given, what will be the treatment of additional capital for the purpose of ascertaining profit for the year?

  1. It will be added to closing capital.

  2. It will be subtracted from closing capital.

  3. No treatment is required.

  4. None of these.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

To calculate profit, the closing capital is adjusted by adding drawings and subtracting additional capital introduced during the year to arrive at the capital that would have existed without those transactions.

Multiple choice elements of accounts accounts from incomplete records - single entry system stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs

State whether the following statements are True or False.
Drawings made during the year decrease the profit under single entry system.

  1. True

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

False.

The drawings made during the year in single entry system are added to the closing capital. Hence, drawings will increase the profit.

Multiple choice elements of accounts accounts from incomplete records - single entry system stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs

If a predetermined overhead rate is not employed and the volume of production is increased over the level planned, the cost per unit would be expected to?

  1. Decrease for fixed costs and remain unchanged for variable costs.

  2. Remain unchanged for fixed costs and increase for variable costs.

  3. Decrease for fixed costs and increase for variable costs.

  4. Increase for fixed costs increase for variable costs.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Fixed cost and variables cost are just opposite to each other. Variable cost is fixed per unit and increases with the level of production in value while the fixed cost remains constant in value irrespective of the volume of production but decreases per unit with the increase in volume.

Multiple choice elements of accounts accounts from incomplete records - single entry system stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs

The net profit or loss for a particular period of time is reported on the____________ .

  1. Income Statement

  2. Balance Sheet

  3. Trial Balance

  4. Statement of Changes in Owner's Equity
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The net profit or loss for a particular period of time is reported on the Income statement or profit and loss account.

A profit and loss account shows a company’s revenue and expenses over a particular period of time, typically either one month or consolidated months over a year. These figures show whether your business has made a profit or a loss over that time period.

Profit and loss accounts show your total income and expenses, and also shows whether your business has earned more income than it has spent on its running costs. If that is the case, then your business has made a profit.

Multiple choice elements of accounts accounts from incomplete records - single entry system stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs
Particulars Rs.
Opening capital $16,000$
Investment by proprietor Nil
Drawings $3,000$
Capital at the end $13,500$
Net Profit/(Loss) ?

If in the given information, Net Loss is Rs. $1,000$, then the investment made by the proprietor during the year will be _______________.

  1. Rs. $1,500$

  2. Rs. $2,000$

  3. Rs. $1,200$

  4. Rs. $1,700$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Solution to the given problem can be presented as:


Opening Capital+Profit+Invested by proprietor-Drawings $=$ Closing Capital
Rs.16000+(-1000) +Invested by proprietor -Rs.3000=Rs.13500 
$Rs.12000+Investment =Rs.13500$
Investment $= Rs.13500-12000$
Investment made by proprietor  $ = Rs.1500$