Goods purchased from A for Rs. 2000 passed through the sales book. The rectification of this error will result in ________
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Solution
Goods purchased from A wrongly passed through sales book. Rectification of this error will decrease gross profit.
Depletion method of depreciation is used in _____
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Solution
Depletion method of depreciation is used in natural resources (mines etc.).
Cash column in cash book has always ______
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Solution
Cash column in cash back always has debit balance. Bank column may have credit balance.
The accounting policies once adopted are not changed unless there is an urgent need for such change is based on
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Solution
Adoption of same accounting policies over period of time is due to consistency.
Nominal account is governed by following rules:
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Solution
Nominal account is governed by Debit all expenses, losses and credit all incomes, gains.
Personal accounts relate to:
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Solution
Personel accounts belong to persons, trade receivables or payables. Machninery, cash etc. are real whereas expenses, losses, gains, revenue etc. are nominal.
Cost of advertisement for the products of a company is a_________
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Solution
Cost of advertisement for the existing products is revenue in nature.
Accounting standards in India are issued by:
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Solution
Accounting standards in India are issued by ICAI in India.
Users of accounting information include
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Solution
Suppliers, creditors, lenders all are users of accounting information.
An increase in owner’s capital is recorded by:
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Solution
Owner capital increase is done by crediting capital account.