Debit & Credit for Sales

Q.

The journal entry to record providing of services on credit shall be ___ .

1. Debit to cash & credit to debtors

2. None of the above

3. Debit to debtors & Credit to Income from services

4. Debit to Income from services & credit to debtors

Q.

Sales made to Mahesh for cash should be debited to ___.

1. Sales Account

2. Cash account

3. Purchases Account

4. Mahesh`s account

Q.

Payment in accordance with the apparent tenor of bill is called as __________. Commerce.

Q.

A company using the accrual method of accounting performed services in August. The services were for Rs 2, 000 and the company gave the customer credit terms that state the amount is to be paid to the company in September. In September when the company receives Rs 2, 000 from the customer, which account should the company credit?

1. Debtors Account

2. Sales Account

3. Cash Account

4. None of the above

Q.

On January 1, 2011, Vibha sold goods worth Rs. 18, 000 to Sudha and drew upon the latter a bill of exchange for the same amount payable after two months. Sudha accepted Vibha draft and returned the same to Vibha after acceptance. Vibha endorsed the bill immediately in favour of her creditor Geeta. Five days before the maturity of the bill Sudha requested Vibha to cancel the bill since she was short of funds. She further requested to draw a new bill upon her including interest of Rs. 200. Vibha accepted Sudha's request. Vibha took the bill from Geeta by making hte payment to her in cash and cancelled the same. Then, she drew a new bill upon Sudha as agreed. The new bill was payable after one month. The new bill was duly met by Sudha on maturity.
Record the necessary Journal entries in the books of Vibha.

Q.

A shoe manufacturing company sold shoes worth Rs.10, 000 to one of it's customer on credit. Which account should be debited and which account is credited?

1. Debtors & Sales

2. Sales & Debtors

3. Cash & Sales

4. Sales & Cash

Q.

A company using the accrual method of accounting performed services in August. The services were for Rs 2, 000 and the company gave the customer credit terms that state the amount is to be paid to the company in September.
In September when the company receives Rs 2, 000 from the customer, which account should the company debit?

1. Sales Account

2. None of the above

3. Cash Account

4. Debtor Account

Q.

Mr. A receives Rs.1000 in cash from a customer. He is of the view that cash shall be recorded in right side of the cash account. Is he correct?

1. Yes, he is correct

2. No, he is not correct

3. None of the above are correct

4. Either A or B can be correct

Q.

A company using the accrual method of accounting performed services in August. The services are for Rs 2, 000 which needs to be paid in the month of september. Assuming that the company prepares monthly income statements, what account will be debited for Rs 2, 000 in August?

1. None of the above

2. Sales Account

3. Purchases Account

4. Debtors Account

Q. Which of the following books should be used to record purchase of a typewriter on account ?

1. Cash book
2. Journal book
3. Purchase book
4. Sales book

Q. Which of the following account(s) will be affected, "while rectifying the error of a purchase return of Rs. 200 to Mr. "A" entered in sales book instead of purchase return book?

1. As account only
2. Purchases account only
3. Sales account only
4. Purchase returns account and sales account

Q. When obsolete assets are sold on credit, these are originally recorded in the _____________.

1. Sales day book
2. Sale account
3. General journal
4. Any of the above

Q. Consider the following statement, while preparing annual financial statements, the balance of bills receivable account can be treated as.
I. An accrued income
II. An item of assets
III. A "personal account" balance
Of these statement.

1. II and III are correct
2. I and III are correct
3. I and II are correct
4. None of these

Q. A return inwards book is kept to record ______________.

1. returns of goods sold
2. returns of anything purchased
3. returns of goods purchased
4. returns of anything sold.