Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

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

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

  1. Joint bank account

  2. Joint venture account

  3. B's personal account

  4. Expenses account

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Correct Option: B
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.

Which of the following accounts have only credit balance?

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

  1. Accounts payable account

  2. Salaries outstanding account

  3. Reserve fund account

  4. All of the above accounts

Show answer
Correct Option: D
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.

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

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

  1. To record particular item of expenditure.

  2. To record particular item of receipts.

  3. Both (a) and (b)

  4. None of the above.

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Correct Option: A

The balance in petty cah book represents ____________ .

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

  1. expenses

  2. net income

  3. cash-in-hand with petty cashier

  4. none of the above

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Correct Option: C

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

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

  1. True

  2. False

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Correct Option: B

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

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

  1. True

  2. False

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Correct Option: A

Petty cashier records petty cash received on debit side.

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

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Cash received by the petty cashier is recorded on debit side and all payments for petty expenses are recorded on credit side in one column.

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

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

  1. True

  2. False

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Correct Option: A

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

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

  1. Surplus or Deficit

  2. Cash at the end

  3. Net profit/loss

  4. Capital fund

Show answer
Correct Option: A
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.

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

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

  1. credited to capital fund

  2. debited to capital fund

  3. credited to assets

  4. debited to assets

Show answer
Correct Option: A
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.