Practice Test


1) The rent paid to the landlord is credited to


2) Sunset Tours has a Rs.3,500 account receivable from Rotary. On January 20 , the Rotary makes a partial payment of Rs.2100 to Sunset Tours >The journal entry made on January 20 by Sunset Tours to record this transactions includes


3) Which financial statement represents the accounting equations , assets=Liabilities + Owner's equity


4) In Double Entry System of Book-keeping every business transactions affects


5) A Sale of goods to ram for cash should be debited to


6) A withdrawal of cash from business by the proprietor should be credited to :


7) Journal and Ledgers records transactions in


8) Debit means


9) Credit means


10) Which of the following is correct ?


11) Journal is a book of


12) the process of recording a transaction in the journal is called


13) L.F. (i.e. Ledger Folio Column) in the journal is filled at the time of


14) Star tours has a Rs.5,000 account receivable from Mr.X .On feb 5, Mr. X makes a partial payment of Rs.3,000 to star tours .The journal entry made on feb 5 by star tour to record this transaction include


15) Employees took stock costing Rs.1,000 (sale price Rs.1,200) in this case


16) Income tax Liability of a proprietor paid should be debited to


17) Goods costing Rs.1,000 (Sale price Rs.1,200) stolen should be credited to


18) Goods costing Rs.1,000 (Sale price Rs.1,200) destroyed by fire should be credited to


19) Goods costing Rs.1,000 (Sale price Rs.1,200) distributed as free sample should be credited to


20) Goods costing Rs.1,000 (Sale price Rs.1,200) given as charity should be credited to


21) Rent paid to Ram a landlord should be debited to


22) A withdrawal of cash from bank should be debited to :


23) A withdrawal of cash from bank for personal use should be credited to :


24) A withdrawal of cash for personal use should be debited to :


25) On receipt of Rs.975 from Sam on his account for Rs.1,000. Sam's account should be credited with


26) On receipt of Rs.975 from Sam in full settlement of his account for Rs.1,000. Sam's account should be credited with


27) On purchase of goods of the list price of Rs.10,000 from Ram who allowed 10 % trade discount & 5 % cash discount for immediate payment


28) on purchase of goods of the list price of Rs.10,000 from Ram who allowed 10 % trade discount & charged 10 % VAT purchase account to be debited with


29) Goods sold to Ram for cash Rs.1,000


30) Received a first & final dividend of 60 paise in the rupee from the official receiver of Mr.Raj who owed us Rs.1,000


31) on purchase of a machine Rs.100 paid to worker as wages for installing the machine


32) on purchase of an old machine the machine was repaired at a cost of Rs.1,000


33) The return of goods by a customer should be debited to


34) Ram paid Rs.900 towards a debt of Rs.950 which was written off as a bad debt in the previous year


35) After the preparation of the trial balance the accountant finds that the total of debit side is short by Rs.1,500.This difference will be


36) the following is not a book of original entry.


37) the following is a book of original entry & also part of the ledger


38) The _______ column of the journal is not entered at the time of Journalizing.


39) Recording of transaction in the journal is called _______.


40) Goods or Amount taken by proprietor for his personal use should be debited to _________.


41) Cash purchases of goods should be credited to _____.


42) Wages paid for installation of machinery should be debited to _______.


43) The rent paid to the land lord should be debited to ______.


44) Paid salary to Mandar should be debited to ______.


45) The amount brought in by the proprietor in the business should be credited to ______.


46) A payment of Rs.100 to Kokate Carriage Co. for brining a machine to the business place should debited _______.


47) A purchase of horse in cash should be debited to _______.


48) Accounting cycle or accounting process includes ____.


49) __________ includes identifying , recording ,classifying and summarizing the transactions.


50) In which order the accounting transactions and events are recorded in the books?


51) Journal is the books of _____in which every transactions is recorded before being posted into the ledger.


52) ________ is a book in which all the business transactions are originally recorded in chronological order and from which they are posted to ledger accounts at any convenient time.


53) Journal has ____ columns.


54) Transactions which are inter- connected and have taken place simultaneously are recorded by means of a ______.


55) The process of recording transaction in journal is termed as _____.


56) Journal is book of ________.


57) The process of equalizing the two sides of an account by putting the difference on the side where amount is short is known as ______.


58) Journal and ledger records transactions in ______.


59) What is the order in which the accounting transactions and events are recorded in the books?


60) In Journal Entries which pertain to outstanding entries, prepaid entries, depreciation entries are called


61) Ganesh's salary is Rs. 10,000 per month. During a month, he withdrew goods worth Rs. 2,500 for personal use and also got salary Rs. 9,500 in cash. The excess payment of Rs. 2,000 will be debited to -


62) Real A/c debit balance indicates -


63) Nominal A/c debit balance indicates -


64) Purchase book records:


65) A debit note issued to a creditor for goods returned by us is to be recorded in the -


66) When a cheque received is endorsed, entered on -


67) Vignesh received a cheque of Rs.6,000 from Shiva and endorses it to Rashmi in payment of a loan. Rashmi deposits this cheque in bank. The cheque was dishonored and returned after a week. Which account will Rashmi credit -


68) If a cheque is returned dishonoured, it is recorded in


69) Which of the following is not a contingent liability?


70) Kiran used the amount in business by selling his old personal car to Surya. The entry of this transaction in Journal will be -


71) Normally the following accounts are balanced –


72) In case of debt becoming bad, the amount should be credited to


73) A ltd. has Rs.35,000 accounts receivable from Mohan. On January 20, Mohan makes a partial payment of Rs.21,000 of A ltd. The journal entry made on January 20 by A ltd. to record this transaction includes:


74) Which Account is the odd one out?


75) The debts written off as bad,if recovered subsequently are