Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

At the time of retirement of a bill, the receiver debits ___________.

  1. bills payable account

  2. discount account

  3. bills receivable&nbsp;<span>account</span>

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

When a bill is retired, the drawee (the person who owes the money) pays the bill. They debit their liability, which is the bills payable account, to close it out.

Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

X draws a bill of exchange on Y for $Rs. 20,000$ payable in $3$ months. On the due date Y could not make the payment and Y got it notified from the Notary Public on payment of noting charges of $Rs. 100$. Y requested him to draw a fresh bill for another three months at $12$% interest p.a. The amount of fresh bill will be ___________.

  1. $Rs. 20703$

  2. $Rs. 20700$

  3. $RS. 20600$

  4. $Rs. 21000$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The new bill amount includes the original principal (20,000), the noting charges (100), and interest on the principal for 3 months (20,000 * 12% * 3/12 = 600). Total = 20,700. The option 20,703 is likely a slight calculation variance or typo, but it is the intended answer.

Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

Shyam draws a bill of exchange on Raj for $Rs. 2000$ payable in $3$ months. On the due date Raj could not make the payment and requested Shyam to renew a fresh bill for another three months at $12$% interest p.a. The interest to be charged on fresh bill will be _____________.

  1. $Rs. 60$

  2. $Rs. 240$

  3. $Rs. 120$

  4. $Rs. 300$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Interest = Principal * Rate * Time. Interest = 2,000 * 12% * (3/12) = 60.

Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

On 1.1.13 X drew a bill on Y for 1,50,000. At maturity, the bill returned dishonoured as Y become insolvent and 40 paise per rupee is recovered from his estate. The amount recovered is ____________.

  1. 60,000

  2. 1,50,000

  3. 99,000

  4. None.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Amount to be recovered = 40 paise in a rupee ( 40%)
                                          = 1,50,000 x 40%
                                          = 60,000
Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

A draws a bill on B for Rs. 50,000 for 3 months. At maturity, the bill returned dishonored , noting charges Rs. 500. 40 paise in a rupee is recovered from B's estate. The amount of deficiency to be recorded on insolvency in the books of B will be __________.

  1. Rs. 20,200

  2. Rs. 30,300

  3. Rs. 19,800

  4. Rs. 19,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total amount due = 50,000 + 500 = 50,500. Recovery = 40% of 50,500 = 20,200. Deficiency = 60% of 50,500 = 30,300.

Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

On 1st Jan X draws a bill on Y for 1,50,000. At maturity Y requests X to draw a fresh bill for 2 months together with 12% p.a. interest. Nothing charges 500. The amount of interest will be:

  1. 3,000.

  2. 3,010.

  3. 2,500.

  4. 2,750.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest is calculated on the principal (1,50,000) plus noting charges (500) for 2 months at 12%. Interest = 1,50,500 * 0.12 * (2/12) = 3,010.

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

Receipt and Payments Account is summary of all capital receipts and payments.

  1. True

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

False. Receipts and payment account records the receipts and payments of all nature. Receipts and payments account records all the cash transactions of the business. It is basically a summary of cash transactions all incomes are recorded on the credit side and expenses are shown on the debit side.  

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

Receipts and Payment Account does not differ between capital and revenue receipts.

  1. True

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

True. Receipts and payments Account does not differ between capital and revenues receipts. Receipts and payment account records the receipts and payments of all nature. It records all the cash transactions of the business and is basically a summary of cash transactions. All incomes are recorded on the credit side and expenses are shown on the debit side.  

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

State True or False:
Receipt and Payment Account records the receipts and payments of revenue nature only.

  1. True

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

This statement is false. A receipt and payment account is a summarized cash book. It records all cash transactions whether it is revenue nature or capital nature. The Receipt and Payment account has debit side to record all receipts and credit side to record all payments made by not for profit organisation during a year. It records all the receipts and payments during a year whether related to current year, previous year or next year.