Practice Test 20
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Recording of a transaction in the ledger is called ______ .

  • Solution

    Recording of transactions in ledger is called posting.

A suspense account facilitates the preparation of ______ even when the ______ has not tallied.

  • Solution

    A suspense A/c facilitates preparation of Financial Statements even when Trial Balance has not tallied.

General reserve at the time of admission of a new partner is transferred to ______.

  • Solution

    General Reserve at time of admission of new partner is transferred to the old partner’s Capital accounts.

As per section 12 of Negotiable Instruments Act, which of the following is not a foreign bill?

  • Solution

    A bill drawn outside India on person resident in India is foreign bill.

In _______ method, depreciation is charged by allocating depreciable cost in proposition of the annual output to the probable life-time output.

  • Solution

    Dep. is charged by allocating depreciable cost in proportion of annual output to the life time output is Production units method.

An amount of Rs.200 received from A credited to B would affect _______

  • Solution

    The transaction would affect both A and B.

Interest on drawings is _______ for the business.

  • Solution

    Interest on drawings is gain for business.

Depreciation of fixed assets is an example of _______ expenditure.

  • Solution

    Depreciation of fixed asset is revenue.

Noting charges are paid at the time of _______ of a bill.

  • Solution

    Noting charges are paid at time dishonour of bill

A _______ is sent to a customer when he returns the goods.

  • Solution

    Credit not is sent to customer when he returns the goods.

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FUNDAMENTALS OF ACCOUNTING
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