Accountancy - 8

       The Root of financial accounting system is :

• Management Accounting

•       Responsibility accounting

•        Social accounting

• Stewardship accounting

     The business is liable to the proprietor of the business in respect of capital introduced by the person according to:

• Business Entity Concept

•      Dual Aspect Concept

•       Money Measurement Concept

•      Cost Concept

      A firm has assets of Rs.1, 00,000 and the external liabilities of rs.60, 000. Its capital would be:

• Rs.1,00,000 

• Rs.40,000

• Rs.1,60,000

• Rs.60,000

     The amount brought into the business by the proprietor should be credited to :

• Capital A/c

• Suspense A/c  

• Cash A/c    

• Drawings A/c

     The difference of totals of both debit and credit side of trial balance is transferred to:

• 
  Suspense A/c

• Miscellaneous A/c

• Trading A/c  

•       Difference A/c

       The Cash book records:

•      All cash payments  

• a)       All Credit Transactions 

• All cash receipts and Cash Payments

•       All cash receipts

       A bank reconciliation statement is prepared with the help of :

• Bank statement and bank column of the cash book

•       Petty cash book

•        Bank Statement

•       Cash book

       Error of principle arises when:

• Distinction is not made between capital and revenue items

•       There are wrong postings and wrong castings

•        There is complete omission of a transaction

•       There is partial omission of a transaction

        The following error becomes unavoidable in computerized accounting:

•      Error of partial omission

•       Error in carrying forward

•        Casting error

• Error of duplication

      Residual value of an asset means the amount that it can fetch on sale at the ----- of its useful life.

•       Middle    

• Beginning

• End

• None of the above