Professional Documents
Culture Documents
35. The column of ledger which links the entry with journal is
a. L.F column b. J.F column
c. Particulars column
42. When the total of debits and credits are equal, it represents
a. debit balance b. credit balance
c. nil balance
43. The balances of personal and real accounts are shown in the
a. profit and loss account b. balance sheet
c. both.
[Answers: 33(b), 34 (b), 35. (b), 36 (b), 37 (a), 38 (b), 39 (a), 41 (c), 42 (c),
43 (b)]
I. Objective Type:
a) Fill in the Blanks :
44. The source document gives information about the nature of the
_________.
45. The accounting equation is a statement of _________ between
the debits and credits.
46. In double entry book-keeping, every transaction affects at least
two _________.
47. Assets are always equal to liabilities plus _________.
48. A transaction which increases the capital is called _________.
49. The journal is a book of _________.
50. Recording of transaction in the journal is called _________.
51. The _________ column of journal represents the place of posting
of an entry in the ledger account.
52. _________ account is debited for the amount not recovered from
the customer.
53. The assets of a business on 31st December, 2002 were worth
Rs.50,000 and its capital was Rs.35,000. Its liabilities on that
date were Rs. _________.
Ans. Unless Capital is maintained profit is not possible. This is the capital maintenance
concept
Ans. Sum of all the profits of all the years divided by the number of years
(Miscellaneous Questions)
-Here Share holder’s funds include Share capital & Reserves & Surplus
5. What is COGS?
COGS reflect the cost of the product or good that a company sells to
generate revenue, appearing on the income statement as an expense unto it. COGS
also referred to as "cost of sales".
It is essentially a cost of doing business, such as the amount paid to
purchase raw materials to manufacture them into finished goods
18. Which of the following books should be used to record purchase of furniture on
credit?
A liability
Credit Sales