Trial Balance is prepared according to
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Solution
Trial balance may be prepared by all the methods.
The value of an asset after reducing depreciation from the historical cost is known as
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Solution
Value of an asset after reducing depreciation is called book value.
Three column cash book records
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Solution
Three column cash book records cash, bank and discount.
The book value of the assets as on 1st April, 2011 is Rs. 1,00,000. Depreciation is charged on the assets @ 10%. On 1st October, 2011, the asset is sold for Rs. 64,000. Profit or Loss on the sale will be
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Solution
Depreciation @ 10% for half year = Rs. 5,000. loss on sale = 31,000 (Rs. 95,000 less Rs. 64,000).
Which of the following account will have credit balance?
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Solution
Debentures is a liability and thus has a credit balance. Carriage inward, prepaid insurance, bills receivable all have debit balances.
If the firm pays Income Tax on behalf of partners, such payment of personal income tax should be treated as
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Solution
Payment of personal tax of partners by firm will be considered as their drawings.
On 01.09.2011, A draws a bill on B “for 30 days after sight”. The date of acceptance is 08.09.2011. The maturity date of the bill will be
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Solution
The maturity date will be 33 (30 + 3) days after date of acceptance i.e. 11.10.2011.
Unexpired portion of Capital expenditure is shown in
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Solution
Expired portion of capital expenditure is expense. Unexpired is an asset to be shown in balance sheet
Which of the following is nominal account
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Solution
Bad debts is in nature of expense, hence nominal account.
Rings and pistons of an engine were changed at a cost of Rs. 5,000 to increase fuel efficiency is:
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Solution
Amount spent is capital expenditure as it has increased ful efficiency of Rings and Pistons.