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

Income receivable at the end of the period is treated as:

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

If cost of a plant is Rs. 90,000, total estimated output is 30,000 units and its residual value is Rs. 10,000. Then Deprecation rate per unit is ____________.

• A) Rs. 1.11 per unit
• B) Rs. 9 per unit
• C) Rs. 2.67 per unit
• D) Rs. 3 per unit

Which of the following can be attributed as ‘Useful life’ a tangible fixed asset?

• A) Number of production units expected to be obtained from the asset
• B) All of the given options
• C) Number of hours expected to put the asset in production
• D) Period over which the asset is expected to be used

If cost of a plant is Rs. 90,000, total estimated output is 30,000 units and units produced during year 2019 are 7,000. Then calculate deprecation for year 2019 if deprecation rate per unit is Rs. 3.

• A) Rs. 21,000
• B) Rs. 180,000
• C) Rs. 90,000
• D) Rs. 270,000

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

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