Banking Transactions
Trending Questions
Withdrawals of cash from bank by the proprietor for office use should be debited to ?
Owner`s Funds
Drawings
Cash
Bank
What do you understand by imprest amount in petty cash book?
Explain briefly the procedure of calculating the date of maturity of a bill of exchange. Give an example.
Which of the following is correct for recording a journal entry for opening a bank account with cash?
Debit bank account & credit cash account
Debit drawings account & credit bank account
Debit cash account & credit Bank account
Debit drawings account & credit cash account
- Debtors
- Cash
- Bank
- Cheques
The amount brought in by owner of the business should be credited to?
Cash
Bank
Drawings
Owner`s Funds
When debtors deposit amount directly to our bank account, which account shall be debited?
Owner`s Funds
Drawings
Cash
Bank
What is the journal entry in bank books for the transaction of withdrawing Rs 1200 from the bank by a customer?
Cash account shall be credited & customer`s account shall be debited
None of the above
Cash account shall be debited & customer`s account shall be credited
Bank account shall be debited & customer`s account shall be credited
The Company writes a cheque to pay for Rs 10, 000 for electricity bill. Which of the following is correct in this regards?
Electricity expense account shall be debited
Bank account shall be credited
Both A & B
None of the above
Where is interest on bank overdraft debited.
Received a cheque from Mr.A which is deposited in bank should be debited to:
Mr. A's account
Cash account
Personal account
Bank account
Which of the following accounts are debited while repayment of a bank loan ?
Loan account
None of the above
Cash account
Bank account
An employee was given an advance of Rs 5, 000 for travelling. He came back & claimed a total expense of Rs 8000. He was issued a cheque for balance, which of the following is correct?
A & B both
Travelling expense shall be debited with Rs 8000
Employee advance account shall be credited with Rs 5000 & bank account shall be credited with Rs 3000
Travelling expense shall be credited with Rs 8000 & Employee advance account shall be debited with Rs 5000 & bank account shall be debited with Rs 3000
The bank has credited an interest of Rs 100 in the account. Which account shall be debited in such case?
Interest (Income) account
Bank account
Drawings account
Interest (Expense) account
Your bank charges a monthly statement fee of Rs 140. Which account is debited to record the same in journal?
Bank charges (Expense account)
Capital account
Bank account
Cash account
Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchased a vehicle through cheque?
Cash Account
Vehicle account
Business account
Bank Account
Withdrawals of cash from bank by the proprietor for office use should be credited to ?
Owner`s Funds
Drawings
Bank
Cash
Which account is debited on purchase of land from the proceeds of a bank loan?
Cash account
Bank account
Loan account
Land account
Withdrawals of cash from bank by the proprietor for his personal use should be debited to ?
Owner`s Funds
Drawings
Bank
Cash
(a) A bill received from Dalpat for ₹ 1, 000 has to be renewed, Dalpat agrees to pay ₹ 20 as interest.
(b) Swamy's bill for ₹ 800 endorsed in favour of Ghosh dishonoured, Ghosh pays ₹ 10 as noting charges. Swamy pays ₹ 300 immediately and agrees to accept a new bill for 3 months for the balance together with interest at 6% p.a. Ghosh's Account is settled by cheque.
State whether the following Statements are True or False.
1) Bank Reconciliation Statement is prepared by Bank.
2) Bank Reconciliation Statement is prepared at the end of stipulated period.
3) Overdraft facility is allowed to proprietors personal account
4) Debit balance of Pass Book represents overdraft
5) Credit balance of Bank column of Cash Book represents the balance as per Cash book.
6) Bank charges debited by Bank increases bank balance in the Pass Book.
7) Interest credited in Pass Book is an income to the Customer.
8) Bank Reconciliation Statement is prepared to detect the errors the takes place in accounting
The owner writes a cheque in favor of school for payment of fees of his child. Which account shall be debited in this case?
Owner`s account
Bank account
Drawings account
School Fees account
What does GDR stand for?
- Owner's funds
- Drawings
- Cash
- Bank
The company sells product A for Rs 65, 000 on credit. The company receives a payment for the Rs 65, 000 invoice above in cash. Which account shall be credited?
Bank account
Cash account
Debtor`s account
Creditor`s account
When cheques are received from debtors which are not deposited in bank, which account is debited?
Debtors account
Cash Account
Bank Account
Capital account
The company sells Product A for Rs 65, 000 on credit. The company receives a payment for the Rs 65, 000 invoice above in cash. Which account shall be debited?
Debtor`s account
Creditor`s account
Bank account
Cash account
On scrutiny of the books of account, accountant found that, purchase return of Rs 1000 was omitted to be entered in the books of a/c. What shall be the rectifying entry for the same error.
Sales Account Dr & Creditors account Cr with Rs 1000
Party Account Dr & Sales account credit with Rs 1000
Sundry Creditors A/c Dr. & Purchase Returns A/c Cr with Rs 1000
Sundry Creditors A/c Dr. & Sales Returns A/c Cr with Rs 1000
The owner writes a cheque in his favor for withdrawal of money from bank for business. Which account shall be debited in this case?
Owner`s account
Drawings account
Bank account
Cash account