Debit & Credit for Buying Assets & Additional Capital

Q. When furniture is bought by paying cash, account is credited.

1. Cash
2. Capital
3. Furniture
4. Creditor

Q.

Mr Ram purchased an asset for his business in cash. He is of the view that cash account shall be recorded on the left side, as cash is an asset while asset account should be recorded on the right side as there is an increase in the asset. Which of the following is incorrect in this transaction?

1. Asset shall be recorded on the right side of the asset account.

2. Both a and b

3. Cash shall be recorded on left side of cash account

4. Asset account shall be debited

Q. When favourable balance as per cash book is the starting point, wrong debit by the bank to the firm will be .

1. added
2. subtracted
3. ignored

Q.

A company receives Rs 5000 of cash as an additional investment in the company by its owner, Mr. Mahesh. The company's ___ account is debited and ___ account is credited.

1. Cash & Mahesh respectively

2. Cash & Capital respectively

3. None of the above

4. Mahesh & Cash respectively

Q. When a personal computer is brought into the business, account is credited.

1. Capital
2. Computer
3. Cash
4. Drawings

Q.

Mr. Ajay has a business of selling furniture. He has purchased a table for use in his office. Which of the following accounts should be debited?

1. Ajay`s account

2. Expense account

3. Purchases account

4. Furniture account

Q. On purchase of old furniture, the amount spent on its repair should be debited to _________.

1. repair account
2. cash account
3. furniture account
4. bank account

Q.

A firm dealing in computer peripherals maintains its account on accrual basis.It received an order of 20 laptops along with an advance of Rs.1, 00, 000.How will the advance received be treated?

Q. Computer Account is _________.

1. Nominal
2. Real
3. Personal
4. None of the above

Q. Answer in once sentence only.

Which account is credited, when salary is paid by cheque?

Q. Bank A/c is ____________ type of account.

1. Impersonal
2. Personal
3. Real
4. Nominal