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

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

ABC Corporation has recently purchased a new production plant. Its purchase price is Rs. 100,000, import duty Rs. 8,000 and installation cost is Rs. 5,000. It will be initially recognized in books at Rs. ___________.

• A) Rs. 113,000
• B) Rs. 105,000
• C) Rs. 100,000
• D) Rs. 108,000

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

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

<p>Under one account method, a separate ledger account of particular income is not maintained.</p>

• A) <p><strong>True</strong></p>
• B) <p>False</p>
• C)
• D)

Expenses paid but the benefit is not received till the end of the accounting period is treated in balance sheet as:

• A) Liability
• B) Capital
• C) Drawing
• D) Asset

While preparing a Creditors Control Account, Credit side shows the items that will cause:

• A) Increase in debtors’ balance
• B) Both increase and decrease in creditors’ balance
• C) Increase in creditors’ balance
• D) Decrease in creditors’ balance

If you are going to calculate the depreciation expense for the year, which of the following information must be gathered?

• A) Depreciation rate
• B) Deprecation basis (time proportionate or full year basis)
• C) Deprecation method
• D) All of the given information

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

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

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

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

Rent receivable account should be credited due to:

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

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

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

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

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

A payables ledger control account had a closing balance of Rs.9,000. A credit 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. 9,500 credit
• B) Rs. 8,500 credit
• C) Rs. 10,000 credit
• D) Rs. 8,000 credit

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

The useful life of tangible fixed assets is:

• A) More than one year
• B) More than 6 month
• C) Less than 6 months
• D) Less than one year

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

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

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

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

____________________ is posted in credit side of debtors account.

• A) Cash sales
• B) None of the given options
• C) balance b/f of debtors
• D) Credit sales

All of the following items appear on debit side of Trade receivable control account EXCEPT:

• A) Credit sales
• B) Interest charged to debtors
• C) Discount allowed
• D) Cheques dishonored

Control accounts are usually maintained by:

• A) Non-profit businesses
• B) Partnerships
• C) Large organizations
• D) Sole proprietors