Parties to Bill of Exchange are:
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Solution
Parties to bill of exchange are Drawer (who draws), drawee (on whom bill is drawn) and payee (to
whom payment is to be made). Thus all are parties.
Rent Account is:
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Solution
Rent is an expense or if received (income). It is a nominal account.
For calculation of goodwill as per Average profit method:
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Solution
Average profit (simple or weighted) is multiplied with no. of years under Average profit method for calculation of goodwill.
Sales return book records _______
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Solution
Sales Returns book records returns of credit sales only not cash sales.
Human assets have no place in accounting records is based on _____
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Solution
Due to Money measurement concept, all assets which can be measured in money terms, are recorded.
Human asset can’t be measured in monetary terms.
Bills payable is ______
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Solution
Bill payable is in name of some individual, thus personal.
The total of the sales return book is posted periodically to the debit of _____
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Solution
Total of sales return book is posted to debit of Sales Return A/c
Debts written off as bad if recovered subsequently are
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Solution
Recovered bad debts will be credited to bad debts recovered A/c not P&L A/c or Trade Receivables.
Rs. 25,000 incurred on structural alterations to existing asset whereby its revenue earning capacity is increased is _______
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Solution
If revenue earning capacity is increased, it will be treated as capital.
All the following are functions of accounting except
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Solution
Ledger posting is function of book-keeping not accounting.