Practice Test 85
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Writing of transaction in the ledger is called

  • Solution

    Posting means writing of transaction in leger.

Carriage charges paid for a new plant purchased if debited to carriage a/c would effect _

  • Solution

    The error would effect both Plant and Carriage accounts.

In the ledger there are _______ columns

  • Solution

    In ledger, there are 8 columns (4 on Dr. and 4 on Cr. side).

Joint venture account is a

  • Solution

    Joint Venture a/c is a nominal A/c as it shows the profit/loss on joint venture.

Commission provided by the consignor to the consignee to promote credit sale is known as

  • Solution

    Commission to promote credit sales is Del-credere commission.

Dividends are usually paid as a percentage of _____

  • Solution

    Dividends are paid up on paid up capital.

As per section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the dead partner at ______ percent per annum.

  • Solution

    6% is the rate as per Partnership Act.

If del-credere commission is allowed for bad debt, consignee will debit the bad debt amount to

  • Solution

    Consignee will debit bad debts amount to his commission as he has to bear bad debts in case of delcredere commission.

Municipal tax Rs. 50,000 under dispute is a

  • Solution

    Payment of tax under dispute is contingent liability.

The purpose of accommodation bill is

  • Solution

    Accomodation bills are drawn to finance the parties.

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FUNDAMENTALS OF ACCOUNTING
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