Journal proper is meant for recording_____________?
ANone of these
BAll such transactions for which no special journal has been kept by the business
CCredit purchase of fixed assets
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Correct answer
B. All such transactions for which no special journal has been kept by the business
Explanation
All such transactions for which no special journal has been kept by the business is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. Deduct income received in advance from respective income and show it as a liability
Explanation
B. Income received in advance given as an adjustment requires a deduction of the same from the income amount and disclosure of the same as a liability in the Balance Sheet.
Correct answer
A. 1,500
Explanation
Total Sales value =2000 Gross Profit =25 % of Sales = 25/100×2000 = 500 Gross Profit Cost of Goods = Total Sales – Gross Profit =2000-500 = 1500
Correct answer
A. Business entity concept
Explanation
A. Share capital is the contribution made by the owner(s) and is regarded as a liability to the business in the nature of owner‘s equity. The underlying feature for this treatment is the distinction between the owner(s) and that of the business owned by them. According to business entry concept whenever an owner brings capital into the business, the business in turn is deemed to owe the capital to the owner. As such the share capital account is treated as a liability to the business and shown under liabilities. The other concepts are not correct because, B. Money measurement concept explains that in financial accountancy, a record is made only of information that can be expressed in monetary terms and ignores other events, however significant they may be. It is silent about the treatment of share capital account. C. Going concern concept explains that the resources of the concern would continue to be used for the purposes for which they are meant to be used. The very categorization of assets into fixed and current presupposes the going concern concept. It does not deal about the treatment of share capital account. D. Conservatism concept: The theme behind this principle is that recognition of revenue requires better evidence than recognition of expenses. It deals with revenues and expenses and not the share capital account.
Correct answer
C. Rs. 17,000
Explanation
Ref: Amount of cash received = total revenue increased – account receivable increased = 25,000 – 8000 = 17,000.
Correct answer
D. Inventory
Explanation
Inventory is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Mistake in Cash Book
Explanation
Mistake in Cash Book is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Triplicate
Explanation
Triplicate is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. Purchases return journal
Explanation
Purchases return journal is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Assets and equity
Explanation
Assets and equity is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.