The cash discount allowed to a customer should be credited to
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Solution
Cash discount allowed should be credited to customer’s A/c.
________ days of grace are allowed in case of time bills for calculating date of maturity.
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Solution
3 days of grace are added in case of time bills for calculation of Maturity date.
When money is withdrawn from the bank, the bank ________ the account of the customer.
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Solution
Bank debits the account of customer when he withdraws money.
Abnormal loss on consignment is credited to ________
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Solution
Abnormal loss on consignment is credited to consignment A/c but debited to P&L A/c.
Joint venture account is a ________.
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Solution
Joint venture account shows profit/loss, hence nominal in nature.
Goodwill is a ________
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Solution
Goodwill is an intangible asset.
Sale of scrap of raw materials appearing in the trial balance are shown on the credit side of ________
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Solution
Sale of scraps of raw material are shown on Cr. side of Manufacturing A/c.
Credit balance in the cash book means ________ .
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Solution
Cr. balance in cash book means overdraft as per pass book.
Change in the method of depreciation is change in ________.
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Solution
Change in method of depreciation is change in accounting policy not estimate.
The equality of debits and credits of the ________ does not mean that the individual accounts are also accurate.
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Solution
Equality of Dr. and Cr. of trial balance does not ensure accuracy of individual accounts.