Accounting - Study Mode

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[#1006] Capital account is a

(A) Personal account

(B) Impersonal account

(C) Real account

(D) None of the above

Correct Answer

(A) Personal account

[#1007] A sole trader introduced fresh capital during the year Rs. 10,000 and his drawings were Rs. 4,000. If the profit of the year is Rs. 3,000 and the closing balance of capital is Rs. 40,000, the the balance of capital at the beginning of the year will be

(A) Rs. 21,000

(B) Rs. 31,000

(C) Rs. 41,000

(D) Rs. 28,000

Correct Answer

(B) Rs. 31,000

[#1008] Cash withdrawn by the proprietor for his personal use should be debited to

(A) Sales account

(B) Capital account

(C) Drawings account

(D) Both B and C

Correct Answer

(C) Drawings account

[#1009] The practice of appending notes regarding contingent liabilities in accounting statements is in pursuant to

(A) convention of consistency

(B) money measurement concept

(C) convention of conservatism

(D) convention of disclosure

Correct Answer

(D) convention of disclosure

[#1010] Which group of the following items are application of funds: 1. Loss from operations 2. Loan from financial institutions 3. Redemption of debentures 4. Sale of fixed assents 5. Payment of dividends

(A) 2, 3 and 4

(B) 1, 3 and 5

(C) 1, 2 and 4

(D) 3, 4 and 5

Correct Answer

(B) 1, 3 and 5