Debit & Credit for CLEAR

Q.

Discuss the meaning of discounting bills of exchange.

Q.

What is meant by provision for discount on debtors?

Q.

Discount allowed to a debtor should be credited to ___.

1. Customer`s/ Debtor account

2. Sales Account

3. Discount account

4. Purchases Account

Q.

Payment of salaries to employees should be debited to ___.

1. Employees`s personal account

2. Salary Account

3. Profit & Loss Account

4. Expense Account

Q.

Rent paid to landlord should be credited to ___.

1. Landlord`s account

2. Rent Account

3. Cash account

4. Expense Account

Q.

Increase in liability will be shown on ______ side of an account.

1. A or B

2. A & B Both

3. Credit

4. Debit

Q.

When a liability is reduced or decreased, it is recorded on ___ in the journal.

1. Credit side

2. Debit side

3. Credit side

4. Debit side

Q.

Which item will appear on the credit side in ledger?

1. Discount received

2. Rent expenses

3. Cash Received

4. Purchases

Q. Which of the following accounts always shows a debit balance?

1. Capital Account
2. Sales Account
3. Purchase return account
4. None of the above

Q.

Is a cash discount an expense?

Q.

Which of the following statements is incorrect regarding capital account?

1. Fresh capital increases the capital account balance

2. Net income increases the capital account balance

3. Debit increases the capital account balance

4. Credit increases the capital account balance

Q.

All the entries of petty cash expenses are recorded on the ___ side of the petty cash book.

1. Liability

2. Asset

3. Credit

4. Debit

Q.

Decrease in capital will be shown on _______ side of capital account.

1. Debit

2. Credit

3. A or B

4. None of these

Q.

To decrease the balance in the Land account, would you debit the account or would you credit the account?

1. A or B

2. A & B Both

3. Credit

4. Debit

Q.

State whether the following statements are true or false:

(1) A journal voucher is must for all transactions recorded in the journal.
(2) Journal is a book of secondary entry.
(3) Narration is not necessary for each and every journal entry.
(4) Every transaction is recorded first in the journal.
(5) Live Stock A/c is a Nominal A/c.
(6) Bank of Maharashtra A/c is a Nominal A/c.
(7) Brokerage paid on sale of goods is debited to brokerage A/c.
(8) If the goods are sold the entry should be recorded in the journal.
(9) Goods withdrawn by the proprietor from business is debited to the Drawing A/c.
(10) Cash discount does not appear in the books of accounts.
(11) If rent is paid to the landlord, landlord’s A/c should be debited.
(12) Book keeping records monetary transactions only.
(13) Drawings made by the proprietor increases his capital.
(14) Premium paid on the life policy of the proprietor should be debited to insurance premium account.

Q.

Increase in liability will be recorded in _______ side of liability account

1. Debit

2. Credit

3. Both A & B

4. None of these

Q.

Increase in assets will be shown on _____ side of an account.

1. Neither debit nor credit

2. Debit

3. Credit

4. None of these

Q.

Interest earned on money deposited in bank should be ___.

1. Credited to Interest account

2. Credited to bank account

3. Debited to Interest account

4. None of the above

Q.

Decrease in expenses will be shown on _____ side of an account.

1. Debit

2. Credit

3. neither debit nor credit

4. None of these

Q.

Increase in revenue will be _______ and decrease in revenue will be __________.

1. Either A or B

2. None of the above

3. Debited & Credited

4. Credited & debited

Q.

Discount given to customers on credit sales is an expense for the business & hence it should be ________ on receipt of payment

1. Credited

2. Debited

3. None of the above

4. Either A or B

Q.

Payment of electricity expense of a particular month is ___.

1. Credited to Expense account

2. Credited to cash account

3. Debited to cash account

4. None of the above

Q.

To decrease the balance in the Creditor`s accounts, which of the following is correct?

1. Creditor`s account is debited

2. Debtors account is debited

3. Creditor`s account is credited

4. Debtors account is credited

Q.

In case of discount given to customer to whom the goods were sold on credit, which of the following account is debited & credited respectively at the time of receipt of payment?

1. Customer`s account & discount account

2. Discount account & customer`s account

3. Sales account & discount account

4. Discount account & sales account

Q.

The Rent Paid To Landlord Is Credited To

Q.

Why are outstanding expenses regarded as a personal account?

Q. Rent paid to the landlord is debited to _____.

1. Landlord A/c
2. Profit and loss a/c
3. Drawing A/c
4. Rent A/c

Q. Journal entry for paid to electric bill by cheque

Q.

Which of the following account will be credited incase of increase in balances of respective accounts?

1. Machinery

2. Cash

3. Motor Vehicle

4. Sales

Q. A debit represents an decrease in ___ .

1. Cash
2. Asset
3. Liability
4. Expense