Discounting of bill by the drawer is done with________

Creditors (trade payables).
Drawee.
Bank.
Notary public.

Solution

Discounting of bill is done with bank.

The party who sends the goods for sale on fixed commission basis is __________

Consignee.
Consignor.
Drawee.
Drawer.

Solution

Sending party is consignor.

In case of del-credere commission provided by consignor to consignee, bad debts is a loss of _________

Consignee.
Consignor.
Both consignor and consignee.
Neither of the two.

Solution

In case del-credere commission provided by consignor to consignee, bad debts will be borne by consignee.

Memorandum joint venture account is prepared _________

When separate set of joint venture books is prepared.
When each co-venturer keeps records of all the the joint venture transactions himself.
When each co-venturer keeps records of their own joint venturer transactions.
None of the above.

Solution

Memorandum joint venture A/c is prepared when each co-venturer keeps records of all their own joint venture transactions.

If the incoming partner brings any additional amount in cash other than his capital contributions then it is termed as ________

Capital.
Reserves.
Profits.
Premium for goodwill.

Solution

If incoming partner brings any additional amount other than capital, it is premium for goodwill.

Fluctuating capital account is credited with __________

Interest on capital.
Profits of the year.
Salaries or remuneration of the partners.
All of the above.

Solution

Flucating Capital account is credited with interest on capital, profits of year and salaries of partners.

M/s Bhaskaran & Co. drew a three months’ bill of Rs. 6,000 on M/s Patel & Co. on 1.1.2010 payable to M/s Surendran & Co. or bearer. Here the payee will be _______

M/s Bhaskaran & Co.
M/s Patel & Co.
M/s Surendran & Co. or bearer.
All of the above.

Solution

M/s Surendran & Co. or bearer will be the payee in the given case.

A minimum quantity of inventory always held as precaution against out of inventory situation is called __________

Zero stock.
Risk stock.
Base stock.
None of the above.

Solution

Base stock is minimum quantity of inventory held as precaution.

The cost of a small calculator is accounted as an expense and not shown as an asset in a financial statement of a business entity due to __________

Materiality concept.
Matching concept.
Periodicity concept.
Conservatism concept.

Solution

Cost of small calculator is accounted as expense due to Materiality concept.

If total of all debits of a ledger account is more than the total of all credits of the same account, then the balancing figure is placed at the __________

Debit side of that ledger account.
Credit side of that ledger account.
End of that ledger account as a footnote.
None of the above.

Solution

Balancing figure is placed on Cr. Side of the ledger account if total of Dr. is more than total of Cr. Side.

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