Prepaid salary has a
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Solution
Prepaid salary has debit balance.
Which of the following error is an error of omission?
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Solution
Total of sales journal not posted to sales account is an error of omission.
Which of the following accounts will have credit balance?
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Solution
Sales return, BR, carriage inwards all have debit balance. Outstanding wages has Cr. balance.
A promissory note does not require
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Solution
A promissory note doesn’t require acceptance.
Depreciation arises because of
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Solution
Depreciation is charged due to physical wear and tear of asset.
Vikas and Co. account is a
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Solution
Vikas and Co. is a personal account.
Profit leads to increase in
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Solution
Profit leads to increase in capital as well as assets.
Amit purchased a typewriter, for the purpose of sale, from Arvind for Rs. 8,000. This is
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Solution
The purchase of typewriter is a transaction.
Real accounts relate to assets of the firm and not
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Solution
Real accounts relate to assets of firm and not debts.
During the lifetime of an entity, accountants prepare financial statements at arbitrary points of time as per
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Solution
Financial statements are prepared at points of time due to Periodicity.