Accounting - Study Mode
[#176] The proprietor of a business is treated as a creditor for capital introduced by him according to:
Correct Answer
(C) business entity concept
[#177] Rs. 10,000 spent on the replacement of worn-out parts of an electronic machinery is treated as:
Correct Answer
(B) Revenue expenditure
[#178] Payment of rent expenses is recorded on which side of cash book?
Correct Answer
(B) Payments
Explanation
Solution: Payment of rent expenses is recorded on Payments side of cash book. All cash payments are recorded by date on the right-hand side.
[#179] An entry which is made on both sides of a cash book is called
Correct Answer
(B) Contra entry
Explanation
Solution: An entry which is made on both sides of a cash book is called Contra entry. In the dual entry accounting system, a Contra Entry is an entry which is recorded to reverse or offset an entry on the other side of an account. If a debit entry is recorded in an account, it will be recorded on the credit side and vice-versa.
[#180] A cash book with cash, bank and discount column is commonly referrred to as
Correct Answer
(C) Three columns cash book
Explanation
Solution: A cash book with cash, bank and discount column is commonly referrred to as Three columns cash book. The three column cash book (also known as triple column cash book) has three money columns on both debit and credit side – one on each side for recording discount, cash and bank amounts.