Tag: balancing the accounts

Quizzes (0) Questions (30)

Questions Related to balancing the accounts

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

The process of balancing of an account involves equalization of both sides of the account. If the debt side of an account exceeds the credit side, the difference is put on the credit side. The said balance is -
(i) A debit balance
(ii) A credit balance
(iii) An expenditure or an asset
(iv) An income or a liability
Select the correct answer from the options given below -

  1. Only (ii) above

  2. Only (iv) above

  3. Both (i) and (iii) above

  4. Both (ii) and (iii) above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If the debit side exceeds the credit side, it is a debit balance. Debit balances in ledger accounts typically represent assets or expenses.

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

Which of the following reflects 'child ego' as per the concept of Transactional Analysis?

  1. I would not do so again

  2. Everything will be OK

  3. Never do so again

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

In Transactional Analysis, the 'child ego' state is often associated with emotional responses, creativity, or impulsive statements. 'I would not do so again' reflects a typical child-like reaction to a mistake.

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

The words 'To Balance b/f' or 'By Balance b/f' are recorded in the 'Particular Column' at the time of posting of _________________.

  1. all compound entries

  2. an opening entry

  3. a closing entry

  4. an adjusting entry

  5. a transfer entry.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When opening books for a new year, the balances from the previous year are brought forward using an opening entry.

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

The balance of an account is always known by the side which is _______________.

  1. Shorter

  2. Higher

  3. Equal

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

The balance of an account is determined by which side has the higher total. The higher side shows whether it is a debit balance (debit side higher) or credit balance (credit side higher).

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

The words 'To Balance b/f' or 'By Balance b/f' are recorded in the particulars column at the time of _________________.

  1. Journalising

  2. Posting of an entry other than opening entry

  3. Balancing

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

The terms 'Balance b/f' (brought forward) are used when carrying balances from one page or period to another.

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

Normally, the following accounts are balanced ____________________.

  1. Personal Accounts and Nominal Accounts

  2. Real Accounts and Nominal Accounts

  3. Personal Accounts and Real Accounts

  4. Personal, Real and Nominal Accounts
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Personal and Real accounts are permanent accounts that are balanced and carried forward to the next accounting period, whereas Nominal accounts are closed.

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

While balancing an account in case of a debit balance, the Words By Balance c/d are recorded in the particulars column of an account _________________.

  1. on the debit side

  2. on the credit side

  3. on the both side

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

If an account has a debit balance, the total of the debit side is higher. To balance it, 'By Balance c/d' is written on the credit side.

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

Balance of personal account is brought down for the next year.

  1. True

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

Personal accounts are accounts related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.

The balance of personal account is brought down for the next year. Every year, the balance of the previous accounting period is brought down for the next year. Debit balance will be shown in the debit column and credit balance will be shown in the credit column. Thus, the balance of personal account is brought down for the next year.