Tag: double entry system

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Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

Double Entry principle means __________________.

  1. Writing all entries twice in the book

  2. Having debit for every credit and similarly, credit for every debit

  3. Maintaining the double account for each business transactions

  4. Writing two times the same entry
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Real account is an record of an asset. An asset can be current asset such as cash, a fixed asset such as building and intangible asset such as goodwill. Real account relate to the assets & liabilities of a business.

Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

The correct concept of double entry book keeping states that ____________________.

  1. For every goods received on credit, the seller becomes your creaditor

  2. For every debit entry, there must be a corresponding credit entry

  3. For every seller, there must be a buyer

  4. One party receives and another party give value
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The fundamental concept of the double entry system is that every transaction has two sides: a debit and a credit, which must be equal in amount.

Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

The accounting entries for recording Rs.10,00,000 cash introduced by the owner of a business is ______________.

  1. Debit Cash account and Credit Capital account

  2. Debit Cash account and Credit Investment account

  3. Credit Cash account and Debit Investment in business account

  4. Credit Cash account and Debit Owner's account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When an owner introduces cash into the business, the business receives an asset (Cash) and the owner's equity increases (Capital). Therefore, Cash is debited and Capital is credited.

Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

When a liability is reduced or decreased, it is recorded on the ______________.

  1. left or credit side of the liability account

  2. right or debit side of the liability account

  3. right or credit side of the liability account

  4. left or debit side of the liability account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Since the Liability shows credit balance as per the accounting equation. When a liability is reduced or decreased, it is recorded on the debit side of the liability account.

Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

Double entry in cash book is completed when _________________.

  1. Salaries are paid by cheque

  2. Withdrawal of money from bank for personal use

  3. Deposited cash into bank

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

Option C is correct.

Deposited cash into bank Entry will be :-      Bank A/c Dr.
                                                                          To Cash A/c

Deposited cash into bank has effect on both Cash & Bank A/c.

Multiple choice commercial applications meaning and fundamentals of double entry book-keeping double entry system meaning, definition, and advantages of double entry book-keeping meaning, definition, need, objectives and limitations of double entry system introduction to single entry system and difference between single entry and double entry system meaning and featuresof incomplete records

As the book keeper, identify the account to which you will post the following transaction recorded by the Cashier in the cash account:
Rs. 500 paid to buy a cash book and ledger book _________________.

  1. Stationery Account

  2. Accounting books Account

  3. Purchases Account

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

Buying a cash book and ledger book is an administrative expense for maintaining accounting records. Such items are classified as stationery or office supplies.