Accounting - Study Mode

[#1251] General Journal is a book of _____ entries
Correct Answer

(B) Original

Explanation

Solution: General Journal, sometimes also known as the Book of Original Entry, because it is the first place a transaction is entered into the books. Journal Entries are made from source documents, which can be anything from receipts to invoices to bank statements.

[#1252] A, B and C are partner in a partnership firm sharing profit and losses in the ratio 5 : 3 : 2. What will be their sacrificing ratio upon admission of D
Correct Answer

(D) 5 : 3 : 2

[#1253] A partnership comes into existence by
Correct Answer

(A) An agreement

[#1254] Deficiency A/c is prepared in the event of:
Correct Answer

(A) Dissolution of partnership firm under insolvency

[#1255] Arrange the following steps of adjustment of capital (reconstitution of firm) incorrect order. 1. Calculation of total capital of new firm. 2. Finding out the surplus/deficiency in each of partner's capital account. 3. Calculation of adjusted old capitals of partners. 4. Finding out the new capitals of partners. Select the correct answer:
Correct Answer

(C) 3, 1, 4, 2