Posting to Ledger

Q.

A company purchased machinery worth Rs 1 crore on hire purchases basis. The accountant seeks your advice in accounting for the :

(i) Payment of instalment and

(ii) Interest under operating, investing and financing activity in the preparation of the Cash Flow Statement.

Q.

Give two circumstances under which the fixed capitals of partners may change.

Q.

While the introduction of capital by a partner, partner's capital account is shown in which side?

1. debit

2. not shown in the bank account

3. credit

Q. Under which major sub-headings the following items will be placed in the Balance Sheet of a company as per revised Schedule VI, Part-I of the Companies Act, 1956:
(i) Accrued Incomes
(ii) Loose Tools
(iii) Provision for employees benefits
(iv) Unpaid dividend
(v) Short-term loans
(vi) Long-term loans.

Q.

What account is credited for recording interest on capital in the books of the firm?

1. Partner's Capital A/c

2. Profit and Loss A/c

3. Bank A/c

4. Interest on Capital A/c

Q.

For payment of partner’s loan, realisation account is ___

1. credited

2. debited

Q. Payment of bill before due date _________________.

1. Discounting of bill
2. Honouring of bill
3. Retirement of bill
4. Dishonour of bill

Q. state the two methods of maintaining capital account of partners.

Q. Which of the following expenditures is/ are revenue expenditures?

1. A firm incurred Rs. 10, 000 to retain the title of a land purchased for business in litigation with third party.
2. Freight and cartage amounting to Rs. 4, 000 were paid on purchase of raw material.
3. Damages paid on account of breach of contract to supply certain goods.
4. All of the above

Q.

We close the temporary account like interest on drawings account by transferring it to ___________ account.

1. Partner's capital account

2. Bank

3. Profit and loss account

4. None of these

Q. 'Bank over draft' should be classified as ____________.

1. Intangible Asset
2. Current Asset
3. Current Liability
4. Regular Asset

Q. We close the temporary accounts by transferring it to account.

1. bank
2. profit and loss
3. partner's capital
4. interest

Q. Objective type questions.
Answer in are sentence only.

What is meant by debenture?

Q. __________________ means cancellation of old bill and drawing a new bill.

1. Dishonour of bill
2. Honouring of bill
3. Renewal of bill
4. Retirement of bill

Q. No cancellation entry is required when a bill is renewed.

1. True
2. False

Q. 1) Is amount received through securities premium added to cash A/C ( asset of the firm)? 2) What is the journal entry for writting off share issue expenses with securities premium a/c

Q.

The cancellation of the old bill maturity in return for a new bill (which includes interest) for an extended period is called ________________.

1. Dishonor of a bill
2. Renewal of a bill
3. Rebate on bill
4. Retiring of a bill

Q. When an amount is paid before maturity the bill is said to be ______.

1. Hnoured
2. Dishonoured
3. Retired
4. Discounted