Question # 1

Narration is always written:

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Above each entry

Below each entry

Between of each entry

None of these

How many parties are involved in case of Discounting of a bill ?

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Two

Three

Four

None of these

At the time of drawing a bill the drawer credits:

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Debtors account

Creditors account

bill receivable account

Suppliers account

A bill from the point of view of a debtor is called

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Bill Acceptable

Bill Receivable

Bill Payable

None of these

Interest on renewal of a bill is the expense of

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Drawer

Drawee

Holder

Endorsee

Subsidiary books are called the book of:

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Original entry

Secondary entry

Temporary entry

Basic entry

When is a drawee is declared insolvent which account is to be debited in the books of drawer

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Deficiency a/c

Bad Debts a/c

Solvency a/c

None of these

When an acceptor refuses to pay the amount of bill to the holder on its maturity date it is called

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Honoured Bill

Retired Bill

Dishonoured Bill

Endorsed Bill

The concept of conservation will have the effect of:

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Understatement of assets

Under statement of liabilities

Overstatement of assets

None of the above

A Journal is generally kept on:

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A columnar basis

A row basis

A single line basis

Vertical basis

Real accounts are related to:

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Assets

Expenses, losses and incomes

Customers, creditors

Incomes

The person to whom bill is transferred will become

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Endorser

Creditor

Debtor

Endorsee

All those expenses which are incurred to convert raw-materials into finished goods are called:

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Direct expenses

Indirect expenses

Administrative expenses

Sales expenses

Retiring a bill under rebate means

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Payment of Bill Before Due Date

Payment of Bill After due date

Discounting of a Bill

Dishonouring of a Bill

Which cash is paid or received in an exchange the transaction is called:

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Sale transaction

Cash transaction

Credit transaction

None of the above

When a bill is transferred by the drawer to his creditor, for settlement of his debts, it is called

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Retirement of Bill

Endorsement of a Bill

Discounting of a Bill

Settlement of a Bill

Any activity undertaken for the purpose of earning profit is called:

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Performance

Dealing

Business

Duties

The time after which the bill is to be paid

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Grace Days

Tenor

Due Date

Extra Days

Bank for collection is a

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Permanent Account

Fixed Account

Current Account

Temporary Account

A many buy Rs. 40,000 worth good and sells them for Rs. 50,000. His gross profit is:

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Rs.10,000

Rs.20,000

Rs,30,000

Rs. 40,000

When a drawer discounts a bill, he debits

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Bank Account

Interest Account

Drawee Account

Bill Receivable Account

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