Balancing of Permanent Accounts

Q.

What are the steps in balancing an account?

Q.

The credit balance of bank account indicates

Q.

What is meant by debit balance in passbook?

Q.

Accounts payable or creditors ledgers will generally have a _____ balance.

1. Debit

2. It shall not be balanced

3. Credit

4. None of the above

Q.

What do you mean by the Imprest System followed by business concerns for managing petty cash expenses?

1. As soon as a fixed amount is spent, the Chief Cashier again pays the required sum to the Petty Cashier

2. Under this system the Petty Cashier receives from the Chief Cashier a fixed Sum of money for a fixed period of time

3. Under this system, the total petty expenses for a particular period are estimated and that amount is advanced by the Chief Cashier to the Petty Cashier

4. None of the above

Q. The total of debit side of cash account is Rs.2, 50, 000 and the total of credit side is Rs.1, 50, 000. The closing balance of cash account is .

1. Rs.1, 00, 000
2. Rs.1, 50, 000
3. Rs.2, 50, 000
4. Rs.4, 00, 000

Q.

When balance of an account is a debit balance, on which side of the ledger account is the entry for balancing done?

1. None of the above

2. Debit

3. Credit

4. shall not be balanced

Q.

Bank Account A has $\$750.92$, and Bank Account B has $\$675.44$. Account A changes by $-\$216.38$ , and Account B changes by $-\$168.49$. Which account has the greater balance?

Q.

What do you mean by balancing the ledger account?

Q.

If the total of the credit side exceeds the total of debit side, then after balancing of the account, which of the following will be true?

1. Debit side of the ledger account will be more than the credit side

2. Credit side of the ledger account will be more than the debit side

3. Both sides will have the same total

4. None of the above

Q.

Are drawings a balance sheet item?

Q.

The total on the debit side of the cash account of a company is Rs 27600, while the total on the credit side is Rs 20500. What shall be the balance of the cash account as at year end & on which side of the ledger account will it be written?

1. Rs 27, 600 on the credt side

2. Rs 20, 500 on the debit side

3. Rs 7, 100 on the debit side

4. Rs 7, 100 on the credit side

Q.

The total of the debit side of Ram`s account, a creditor of the company is Rs 10, 000, while the total of the credit side is Rs 20, 000. Which of the following is true in this regards?

1. Ram`s account has a debit balance of Rs 10, 000

2. Ram`s account has a debit balance of Rs 20, 000

3. Ram`s account has a credit balance of Rs 10, 000

4. Ram`s account has a credit balance of Rs 20, 000

Q.

What is the balance of an account?

Q.

Cash , bank & accounts receivables ledger in the books will generally have a ________ Balance.

1. Credit

2. Debit

3. It shall not be balanced

4. None of the above

Q. State whether the following statements are true or false :

Solvent person is a person whose assets are more than his liabilities.

Q.

When there is only one entry in an account on the credit side, then what shall be the balance of that ledger account?

1. It shall not be balanced

2. Debit

3. Nil

4. Credit

Q.

If the total of the Credit side exceeds the total of debit side, then this would be represented by a ………. Balance

1. Debit

2. Credit

3. Either debit or credit

4. Nil

Q.

The total of the debit side of Lakshay`s account, a debtor of the company is Rs 40, 000, while the total of the credit side is Rs 20, 000. Which of the following is true in this regards as at 1st day of the next accounting year?

1. Rs 40, 000 shall be the balance brought down written on debit side

2. Rs 20, 000 shall be the balance brought down written on debit side

3. Rs 20, 000 shall be the balance brought down written on credit side

4. Rs 40, 000 shall be the balance brought down written on credit side

Q. In recording a receipt of Rs 100 of cash from a customer on account, the cash account is erroneously credited instead of being debited (Account receivable account is credited for the correct amount). Assuming no other error, the debit total of the trial balance at the end of the month is Rs.7, 600. What is the total of the credit column of the trial balance?

1. Rs. 7, 800
2. None of these
3. Rs. 7, 720
4. Rs. 7, 600

Q.

What shall be the balance of cash account after the following transactions?

Heena borrows Rs15, 000 from his friend Reena to furnish his office and defray other start up costs.

Heena pays Rs1, 500 rent for his office.

Heena purchases office furniture for Rs9, 100.

Heena collects Rs8, 000 from debotrs in cash

Heena repays Reena Rs3, 000 in principal

1. Debit balance of Rs 23, 000

2. Credit balance of Rs 13, 600

3. Debit balance of Rs 9.400

4. Credit balance of Rs 9, 400

Q. Cash paid to Creditors needed for the construction of cash account can be ascertained from __________________ .

1. Trading account
2. Profit and loss account
3. None of the above
4. Total creditors account

Q. Answer in one Sentence only.

What do you mean by Credit Balance?

Q. All personal accounts show ________ balance.

1. debit
2. both
3. credit
4. none of the above