Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents

When A advances money to B in the course of joint venture then A debits such money to a _________.

  1. Joint bank account

  2. Joint venture account

  3. B's personal account

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

A joint venture is an entity which is created by two or more parties to accomplish a particular project. For this a joint venture account is separately maintained. If any amount is spent for joint venture, this will be debited to joint venture account.

Multiple choice book keeping and accountancy origin of transactions - source documents and preparation of vouchers meaning, importance and components of voucher bank book and petty cash book source documents

Which of the following accounts have only credit balance?

  1. Accounts payable account

  2. Salaries outstanding account

  3. Reserve fund account

  4. All of the above accounts
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An accounts assigned normal balance is on the side where increases go because the increases in any account are usually greater than the decreases. Therefore, asset, expense, and owner's drawing accounts normally have debit balances. Liabilities, revenue, and owner's capital accounts normally have credit balances.

Multiple choice book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

In analytical petty cash book, for what purpose separate column is provided?

  1. To record particular item of expenditure.

  2. To record particular item of receipts.

  3. Both (a) and (b)

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

An analytical petty cash book uses multiple columns to categorize various types of small expenditures (like postage, stationery, or travel) for easier tracking and ledger posting.

Multiple choice book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

Journal entry on submission of accounts by the petty cashier is :-
          Petty Cash A/c               Dr.
                To Expenses A/c 

  1. True

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

When a petty cashier submits accounts, the expenses are recorded in the ledger. The entry should be Expenses A/c Dr. to Petty Cash A/c, not the reverse.

Multiple choice book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

Jornal entry for recording wages expense in petty cash book is __________.
      Wages A/c        Dr.
              To Petty Cash A/c.

  1. True

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

When a petty cash payment is made for wages, the expense account (Wages) is debited and the Petty Cash account is credited to reflect the reduction in cash.

Multiple choice book keeping and accountancy subsidiary books - 2 petty cash book meaning, importance and components of voucher bank book and petty cash book

Posting in the ledger from Analytical Petty Cash Book is made at the end of the period.

  1. True

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

In an analytical petty cash book, individual transactions are recorded daily, but the totals for each expense category are posted to the main ledger at the end of the accounting period.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

The net result of the activities of Non-for-profit is termed as ________.

  1. Surplus or Deficit

  2. Cash at the end

  3. Net profit/loss

  4. <span>Capital fund</span>
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

All the revenue incomes during the accounting period are shown on the income side and all of the revenue expenses during the period are shown on the debit side of income expenditure account.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Funds raised by Not-for-Profit Organisations through various sources is __________account.

  1. credited to capital fund

  2. debited to capital fund

  3. credited to assets

  4. debited to assets
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Funds raised by Non-for-Profit organisations through various sources is credited to capital fund. Capital fund is the excess of assets over liabilities.  So, the excess amount which is mostly the income of organisation is the funds raised by them. Any addition in funds will be added ro capital fund/general fund.