financial accounting

Purchase of goods from X for cash should be credited to______.

• Purchase
• Cash
• X
• Goods

Main object of preparing a Journal is:

• To ascertain the financial position of the business

• To journalise the cash transactions

• To make posting in the ledger

• To record the business transactions

Goods worth Rs. 7,000 given away as charity would be credited to :

• Sales A/c
• Purchases A/c
• Charity A/c
• Trustee A/c

Payment of Rs. 6,000 as wages to workmen for installation of a machine should be debited to:

• Wages A/c
• Repairs A/c
• Machinery A/c
• Installation A/c

What shall be the amount of Capital if cash is Rs. 5,000; Furniture Rs. 12,000; Stock Rs. 30,000 and Creditors Rs. 6,000.

• Rs. 53,000
• Rs. 47,000
• Rs. 41,000
• Rs. 40,000

Gopal is our debtor for Rs. 10,000. He became insolvent and only 60 paise in a Rupee is received from him. The balance of Rs. 4,000 would be entered to the:

• Debit of discount A/c
• Credit of discount A/c
• Debit of bad debts A/c
• Credit of bad debts A/c

Rs. 5,000 received from Mohan whose account was written off as bad in the previous year should be credited to:

• Mohan's A/c
• Bad debts A/c
• Bad debts recovered A/c
• None

Cash received from Kajal Rs. 36,000 after allowing her discount @10%. Amount debited to discount account will be:

• Rs. 3,600
• Rs. 4,000
• Rs. 4,400
• Rs. 40,000

Loss of goods by fire should be credited to:

• Sales A/c

• Loss A/c

• Profit and Loss A/c

• Purchase A/c

Goods costing Rs. 30,000 supplied to Mohan at a profit of 25% of sales price less Trade discount @5% will be credited to Sales A/c with:

• Rs. 35,625
• Rs. 38,000
• Rs. 37,500
• Rs. 34,200