Liability

Q.

Which of the following accounts is not a liability?

1. Accounts Payable

2. Accounts Receivable

3. Salaries Payable

4. Expenses Payable

Q.

Which of the following is a liability?

1. Machinery

2. Loans from bank

3. Motor Vehicles

4. Cash

Q.

Is a security system a fixed asset?

Q.

Which of the following is not a liability?

1. Loans from bank

2. Creditors for goods

3. Loan from a friend

4. Cash

Q.

What is an example of equity law?

Q.

Prepare trading and profit and loss account from the following trial balance as on 31st March, 2016.
$$\begin{array}{cccc}\text{Name of Accounts}& \text{Dr. Balance (Rs.)}& \text{Cr. Balance (Rs.)}& \\ \text{Cash in Hand}& 20,000& & \\ \text{Cash at Bank}& 1,80,000& & \\ \text{Purchase and Sales}& 22,00,000& 35,00,000& \\ \text{Return Inwards}& 60,000& & \\ \text{Return Outwards}& & 75,000& \\ \text{Carriage on Purchases}& 44,000& & \\ \text{Carriage on Sales}& 21,000& & \\ \text{Fuel and Power}& 1,55,000& & \\ \text{Stock (1st April, 2015)}& 3,60,000& & \\ \text{Bad Debts}& 62,000& & \\ \text{Bad Debts Provision}& & 25,000& \\ \text{Debtors and Creditors}& 8,20,000& 3,00,000& \\ \text{Capital}& & 21,70,000& \\ \text{Investment}& 2,00,000& & \\ \text{Interest on Investments}& & 20,000& \\ \text{Loan from X(@18\% per annum)}& & 1,00,000& \\ \text{Repairs}& 15,200& & \\ \text{General Expenses}& 1,06,000& & \\ \text{Land and Buildings}& 18,00,000& & \\ \text{Wages and Salaries}& 1,80,000& & \\ \text{Miscellaneous Receipts}& & 1,200& \\ \text{Bills Payable}& & 52,000& \\ \text{Stationery}& 20,000& & \\ & \underset{–}{}& \underset{–}{}& \\ & 62,43,200& 62,43,200& \end{array}$$

Additiional Information:
(i) Written off Rs. 20, 000 as bad debts and provision for doubtful debts is to be maintained at 5% on debtors.
(ii) Loan from X was taken on 1st August, 2015. No Interest has been paid so far.
(iii) Included in general expenses is insurace premium Rs. 12, 000, paid for one year ending 30th June, 2016
(iv) $\frac{1}{3}$ of wages and salaries is to be charged to trading account and the balance to profit and loss account.
(v) Entire stationery was used by the proprietor for his personal purpose.
(vi) Closing stock was valued at Rs. 5, 00, 000.

Q.

Obligations i.e. the amounts owed by the organisation are referred to as:

1. Capital

2. Assets

3. Liability

4. Equity

Q.

How are ledger accounts balanced?

Q.

What is an example of accounts receivable?

Q. The amounts owed by an organisation are referred to as .

1. assets
2. liabilities
3. revenue
4. expenses

Q.

Super Bazar purchases goods for Rs.10, 000 on credit for a month from Fast Food Products on March 25, 2018. If the balance sheet of Super Bazaar is prepared as at March 31, 2018, Fast Food Products will be shown as:

1. Creditors on the liability side

2. Long term liability

3. It will not be shown

4. Debtors on the asset side

Q. Salaries & wages outstanding will be added to ________ account.

1. Assets
2. Liabilities
3. Wages
4. Salaries

Q. Answer in one Sentence only

What is meant by Provisions?

Q. Every business undertaking is _______ entity.

1. an independent
2. a dependent
3. a social
4. none of above

Q.

Is cash a current liability?

Q.

choose the right word to complete sentence

the boss was worried that ------secretaries would not do the work without additional compensation.(us/ we)

Q. Liabilities represent the debts or obligations that business must receive in terms of money.

1. True
2. False

Q.

what is the journal entry if-#cartage is charged on fixed asstes ?

Q. Match the following:

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