Rent income account should be debited due to:

• A) Rent receivable opening
• B) Rent receivable closing
• C) Rental income received
• D) Balance sheet account

_________________ is credited for closing the commission income for the period.

• A) Commission income
• B) Income statement
• C) Commission expense
• D) Accrued commission

A creditors’ control account is used to record all the transactions related to:

• A) Cash purchases
• B) Cash sales
• C) Credit purchases
• D) Credit sales

In case of goods sold on credit basis, _____________ is credited.

• A) Payable account
• B) Bank account
• C) Sales account
• D) Receivable account

In case of goods sold on credit basis, _____________ is debited.

• A) Debtors account
• B) Credit account
• C) Debit account
• D) Bank account

In case of creating the provision for discount on debts, __________________ is debited.

• A) Provision account
• B) Discount allowed account
• C) Receivable account
• D) Discount received account

If a fixed asset is purchased for Rs. 100,000 and payment is made through cheque; then which of the following account will be debited?

• A) Bank account
• B) Fixed asset account
• C) Debtor account
• D) Cash account

In case of creating provision for doubtful debt, _____________ is credited.

• A) Provision for doubtful debts account
• B) Payable account
• C) Receivable account
• D) Doubtful debts account

A payables ledger control account had a closing balance of Rs.9,000. A cash purchase of Rs. 500 had been omitted to record in this control account. What should be the correct balance of payables control account?

• A) Rs. 8,500 credit
• B) Rs. 10,000 credit
• C) Rs. 8,000 credit
• D) Rs. 9,000 credit

Rent receivable account should be credited due to:

• A) Opening balance
• B) Profit and loss
• C) Closing balance
• D) Balance sheet

Expenses paid during the period should be mentioned in:

• A) Payment side of cash book
• B) Payment side of balance sheet
• C) Receipt side of cash book
• D) Expense side of balance sheet

At the end of the accounting period, income and expense accounts are closed in:

• A) Income statement
• B) Balance sheet
• C) Asset account
• D) General Journal

In case of recovery of bad debts, _____________ is credited.

• A) Bank account
• B) Debts account
• C) Doubtful debts account
• D) Bad debts recovered account

Debtors which might become bad in future is known as____________.

• A) Doubtful debt
• B) Sundry debtors
• C) Long term debts
• D) Bad debt

In case of increase in provision for doubtful debt, _____________ is debited.

• A) Receivable account
• B) Payable account
• C) Bad debts account
• D) Provision account

Accrued income at the end of the period is treated as:

• A) Expense
• B) Asset
• C) Drawings
• D) Liability

All of the following items may appear in Trade payable control account EXCEPT:

• A) Cash purchases
• B) Cash paid to creditors
• C) Discount received
• D) Credit purchases

A control account is an individual account that appears in the _________________.

• A) Journal
• B) Trial balance
• C) Invoice
• D) General ledger

Advance receipt at the end of the period is treated as:

• A) Expenses
• B) Liability
• C) Drawings
• D) Assets

__________________ is posted in credit side of debtors account.

• A) Credit purchases
• B) Trade discount
• C) Discount allowed
• D) Cash purchases