Question # 1

Provision for the doubtful debts is debited to

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Debtors a/c

Provision for bad debts a/c

Profit or loss a/c

Bad debts recovered a/c

If sales return for Rs. 3,000 were incorrectly included in sales book, gross profit will be

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overstated by Rs. 3,000

understated by Rs. 6,000

understated by Rs. 3,000

overstated by Rs. 6,000

From business point of view, Interest on capital is considered as

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An income

An expense

A profit

A liability

Capital contributed by the partners is a:

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Revenue receipt

Capital receipt

Current receipt

Deferred receipt

Error which affects profit and loss account relates to

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Nominal account

Property account

Personal account

None of these

Position statement is similar to a

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Trial balance

Balance sheet

Financial statement

Bank reconciliation statement

An expenditure, which is incurred to increase to profit earning capacity of a business concern, is called

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Deferred expenditure

Current expenditure

Capital expenditure

Recurring expenditure

A bill of exchange is drawn by:

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A debtor

A creditor

A holder

Endorsee

Ahmad's account is an example of

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real account

personal A/c

nominal account

none of these

The book which is used to record all goods returned to us by our customers is called

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Returns outwards book

Returns inwards book

Sales book

Cash book

Income and expenditure account records the transactions of

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Revenue nature

Capital nature

Revenue and capital nature

None of the these

Lagacies are generally treated as.

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Income

Capitalized

Assets

Liability

Depreciation written off on fixed assets should be recorded in the.

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Income and expenditure account only

Receipt and payment account only

Receipt and payment account and banalce sheet

Income and expenditure account and balance sheet.

Depreciation is charged at fixex rate on the reducing balance, under the.

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Written - down value method

Annuity method

Sinking fund method

Depletion method

In the books of consignee the sale of goods by the consigee credited to.

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Sales account

Consignor account

Consignee's account

None of these

Good will is.

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Tangible asset

Imtamgon;e asset

Wasting assets

Frictious assets

If the price required to be paid to the company for the share is more than nominal value of that share, it is called.

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At discount

At premium

At par

None of these

In case of public company minimum number of members is.

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Six

Seven

Ten

Fifty

Net worth is equal to,

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Assets - Liabilities

Liabilities - Assets

Liabilities + Capital

Capital + Assets

Excess of assets over liabilities is an indication of.

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Solvency

Insolvency

Deficiency

Loss

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