Practice Test 60
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Mohan Stationers will debit purchase of stationery in ____

  • Solution

    Mohan Stationers will not debit purchase of stationery in Stationery A/c but it will debit in purchases.

Income includes

  • Solution

    Income includes received as well as receivable.

‘Advance received from customers is not taken as sale’ is based on

  • Solution

    Advance received from customers is not considered sale due to accural.

Cost of tour abroad by the sales manager to develop markets (tour was successful) is ____

  • Solution

    Cost of travel of sales manager is deferred revenue as it is incurred to develop new markets and the benefit will be for more than one year.

Bank account is _____

  • Solution

    Bank account is personal account as it is in name of individual.

The amount of the dishonoured bill has been wrongly debited to general expenses account, which type of error has been committed?

  • Solution

    Amount of dishonoured bill wrongly debited to general expenses account, is an error of principle.

The total of the sales book is posted periodically to the credit of

  • Solution

    Total of sales book is posted to sales account.

The areas where in different accounting policies can be adopted are

  • Solution

    For depreciation, valuation of inventories and investments, different accounting polices can be adopted.

Financial statements are part of –

  • Solution

    Financial statements are part of Accounting and not book-keeping.

All the following errors do not effect the trial balance except

  • Solution

    Errors of partial omission effect the trial balance. All others do not effect.

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FUNDAMENTALS OF ACCOUNTING
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