Question

Give one word, phrase or term for the following

1. Business Assets which cannot be seen, touched but can be sold for cash.
2. Name the account which is debited when the proprietor uses business money for domestic use.
3. Proprietor’s personal account
4. The amount paid to owner/ author of book copyright for the use of book.
5. Right hand side of an account.
6. Accounts other than the impersonal account.
7. Accounts of properties
8. Name the account which is debited when dog is purchased for business security.
9. Left hand side of an account.
10. Name the account which is debited for payment of import duty.

Answer 1

1) Business Assets which cannot be seen, touched but can be sold for cash- Intangible Assets

Explanation:
Those assets that cannot be seen or touched but whose value can be measured in terms of money are known as intangible assets.

2) Name the account which is debited when the proprietor uses business money for domestic use- Drawings A/c

Explanation:
Drawings A/c represents the amount withdrawn by the trader for personal use from the business. It is a personal account.

3) Proprietor’s personal account- Capital A/c

Explanation:
A capital account is the personal account of the proprietor that represents the amount invested by the proprietor in the business. According to the business entity concept, a business is treated as a separate entity from its owner. Therefore, the amount invested by the proprietor is shown under the capital account as a liability for the business.

4) The amount paid to owner/ author of book copyright for the use of book- Royalty

Explanation:
The payment made to the owner of an asset for the use of his/her ownership rights is known as royalty.

5) Right hand side of an account- Credit side

Explanation:
All accounts are divided into two sides. The right side of an account is called the credit side and is written as ‘Cr.’.

6) Accounts other than the impersonal account- Personal Account

Explanation:
All accounts are classified under two categories, i.e. Personal and Impersonal. Hence, accounts other than impersonal accounts are termed as personal accounts. It includes the accounts of all individuals, firms, companies or institutions. For example: Mohan’s Account, Capital Account of proprietor, Drawings Account etc.

7) Accounts of properties- Real A/c

Explanation:
Real Accounts are those accounts that are related to the tangible or intangible real assets of a business and whose value can be measured in terms of money. Thus, the accounts of properties are classified as real accounts.

8) Name the account which is debited when dog is purchased for business security- Live stock A/c

Explanation:
Domestic animals used in business are accounted under ‘Live Stock A/c’ under the head of fixed assets.

9) Left hand side of an account- Debit side

Explanation:
All accounts are divided into two sides. The left side of an account is called the debit side and written as ‘Dr.’.

10) Name the account which is debited for payment of import duty- Import duty

Explanation:
Import duty is paid on the purchase of goods. So, it is debited to Import Duty A/c. It is a direct expense and, thus, debited to the Trading A/c.