Under the traditional rules of debit and credit, what is the rule for personal accounts?
Correct answer A. Debit the receiver, credit the giver
Subject / 433 questions
Accounting MCQs
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Under the traditional rules of debit and credit, what is the rule for real accounts?
Correct answer B. Debit what comes in, credit what goes out
Under the traditional rules of debit and credit, what is the rule for nominal accounts?
Correct answer B. Debit all expenses and losses, credit all incomes and gains
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Which of the following is a nominal account?
Correct answer B. Salaries account
In a ledger account, what does the abbreviation ‘c/d’ written against a balance stand for?
Correct answer A. Carried down
Why is a ledger account in its simplest form often called a T-account?
Correct answer D. Its layout resembles the letter T
What is the ledger that contains the personal accounts of credit customers called?
Correct answer B. Sales ledger (debtors ledger)
The bank statement shows a credit balance of Rs 45,000. Bank charges of Rs 500 have not been entered in the cash book. Ignoring other items, what is the cash book balance?
Correct answer B. Rs 45,500
The cash book shows a debit balance of Rs 20,000. Interest of Rs 1,200 credited by the bank has not been recorded in the cash book. Ignoring other items, what is the bank statement balance?
Correct answer B. Rs 21,200
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The cash book shows an overdraft of Rs 10,000. Cheques of Rs 3,000 issued have not been presented for payment. Ignoring other items, what is the overdraft as per the bank statement?
Correct answer D. Rs 7,000
The cash book shows an overdraft of Rs 15,000. Cheques of Rs 2,000 paid into the bank have not yet been credited. Ignoring other items, what is the overdraft as per the bank statement?
Correct answer A. Rs 17,000
Which of the following makes the bank statement balance lower than the cash book balance?
Correct answer B. Bank charges not yet recorded in the cash book
A customer’s cheque deposited by the business has been dishonoured, and only the bank has recorded this. How should the cash book be corrected?
Correct answer D. Credit the bank column of the cash book
A customer paid Rs 4,000 directly into the business’s bank account, but this is not recorded in the cash book. How should the cash book be adjusted?
Correct answer C. Debit the bank column with Rs 4,000
What is the main purpose of preparing a bank reconciliation statement?
Correct answer C. To explain the differences between the cash book and bank statement balances
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The cash book shows a debit balance of Rs 80,000. Unpresented cheques are Rs 12,000, deposits not yet credited are Rs 9,000 and unrecorded bank charges are Rs 400. What is the balance as per the bank statement?
Correct answer A. Rs 82,600
The bank statement shows a credit balance of Rs 60,000. Deposits not yet credited are Rs 5,000 and unpresented cheques are Rs 7,500. Ignoring other items, what is the cash book balance?
Correct answer D. Rs 57,500
A cheque issued for Rs 2,500 was entered in the bank column of the cash book as Rs 5,200. What adjustment is needed to the cash book?
Correct answer D. Increase the bank balance by Rs 2,700
Which item is NOT adjusted in the cash book but is shown only in the bank reconciliation statement?
Correct answer C. Cheques issued but not yet presented
Traditionally, what is the copy of a customer’s account kept by the bank and given to the customer called?
Correct answer C. Pass book