A firm has assets of Rs.1,00,000 and the external liabilities of Rs.60,000. Its capital would be  

(a)

Rs.1,60,000

(b)

Rs.60,000

(c)

Rs.1,00,000

(d)

Rs.40,000

The incorrect accounting equation 

(a)

Assets = Liabilities + Capital

(b)

Assets = Capital + Liabilities

(c)

Liabilities = Assets + Capital

(d)

Capital = Assets - Liabilities

Accounting equation is formed based on the accounting principle of

(a)

Dual aspect

(b)

Consistency

(c)

Going concern

(d)

Accrual

Real account deals with  

(a)

Individual persons

(b)

Expenses and losses

(c)

Assets

(d)

Incomes and gains

Which one of the following is representative personal account?

(a)

Building A/c

(b)

Outstanding salary A/c

(c)

Mahesh A/c

(d)

Balan & Co

Prepaid rent is a  

(a)

Nominal A/c

(b)

Personal A/c

(c)

Real A/c

(d)

Representative personal A/c

With drawal of cash from business by the proprietor should be credited to 

(a)

Drawings A/c

(b)

Cash A/c

(c)

Capital A/c

(d)

Purchases A/c

In double entry system of book keeping, every business transaction affects  

(a)

Minimum of two accounts

(b)

Same account on two different dates

(c)

Two sides of the same account

(d)

Minimum three accounts

________ starts with identifying business transactions involving money or money's worth.

(a)

Accounting process

(b)

Accounting equation

(c)

Book keeping

(d)

Double entry system

____________ are recorded as and when they take place with the written and authentic proof.

(a)

Accounting equations

(b)

Transactions

(c)

Accountants

(d)

Book keeping

______ is used for credit purchases and credit sales.

(a)

Cash Receipt

(b)

Debit Note

(c)

Invoice

(d)

Credit Note

________ is prepared in three copies.

(a)

Debit Note

(b)

Credit Note

(c)

Receipts

(d)

Invoice

_______ is prepared in duplicate and the original is sent to the seller.

(a)

Debit Note

(b)

Credit Note

(c)

Pay-in-slip

(d)

None of these

A debit note is called as _______

(a)

debit memo

(b)

credit memo

(c)

pay-in-slip

(d)

receipts

_____ is a statement prepared by the seller who receives back from his customer the goods sold.

(a)

Debit Memo

(b)

Credit note

(c)

Receipts

(d)

Pay-in-slip

_________ is a negotiable instrument.

(a)

Cheque

(b)

Cash

(c)

Discount

(d)

Premium

_______ system is the scientific and complete system of recording the financial transactions of a business.

(a)

Single Ent

(b)

Double Entry

(c)

Prime Entry

(d)

Journal Entry

Transaction can be classified into  _______ transaction and _______ transaction.

(a)

cash, credit

(b)

purchases, sales

(c)

cash, purchase

(d)

none of these

The relationship of assets with that of liabilities to outsiders and to owners in the form is known as _____.

(a)

single entry system

(b)

double entry system

(c)

accounting equation

(d)

none of these

Accounting equation is a ____ expression which. shows that the total of assets is equal to the total liabilities and capital.

(a)

scientifical

(b)

mathematical

(c)

social

(d)

all the above

Equity + Liabilities = ______

(a)

Capital

(b)

Creditors

(c)

Assets

(d)

None of these

Transactions relating with individuals or firms or companies are known as _______

(a)

personal accounts

(b)

real accounts

(c)

nominal accounts

(d)

capital accounts

______ is the original book of recording the business transactions in a systematic manner.

(a)

Journal

(b)

Ledger

(c)

Cash Book

(d)

Sales Book

The word journal has been derived from the French word 'Jour' Jour means _________

(a)

Cash

(b)

Money

(c)

Day

(d)

None of these

Murali account is an example for ______

(a)

personal A/c

(b)

real A/c

(c)

nominal A/c

(d)

none of these

Goodwill is an example of ________

(a)

tangible real A/c

(b)

intangible real A/c

(c)

nominal A/c

(d)

none of these

The Accounting Equation is connected with ________

(a)

Assets only

(b)

Liabilities only

(c)

Assets, Liabilities and Capital

(d)

None of these

The liabilities of a business are Rs.30,000, the Capital of the proprietor is Rs.70,000. The total assets are _____

(a)

Rs.70,000

(b)

Rs.1,00,000

(c)

Rs.40,000

(d)

Rs.50,000

Rs.500 not recovered from Mr. Surya a customer due to his insolvency is debited to _______

(a)

Cash A/c

(b)

Surya A/c

(c)

Bad debts A/c

(d)

Customer A/c

Received cash for Bad debts written off last year is credited to ____

(a)

Bad debts A/c

(b)

Bad debts recovered A/c

(c)

Cash A/c

(d)

Debtors A/c

Name the source document used for depositing money in the bank.

(a)

Voucher

(b)

Receipts

(c)

Pay-in-slip

(d)

Invoice

Credit purchases of furniture will be recorded through which Voucher?

(a)

Transfer voucher

(b)

Compound voucher

(c)

Complex voucher

(d)

None of these

Name the column in a journal which is not filled at the time of journalising

(a)

Journal Folio

(b)

Both 'a' and 'b'

(c)

None of these

(d)

Ledger Folio

Source documents are the _______

(a)

Business Documents

(b)

Proof of Business transactions

(c)

Business Deals

(d)

Activities of Business

The effect of each business transaction will have the effect on accounting equation _____

(a)

always in assets only

(b)

always in liabilities only

(c)

always in assets and liabilities

(d)

always either in assets or liabilities or both

Raman started business with Rs.60,000 as capital. The effect of the transaction would be ________

(a)

Increase in Asset, Decrease in Liability

(b)

Decrease in Asset, Increase in Liability

(c)

Increase in Asset, Increase in Liability

(d)

Decrease in Asset, Decrease in Liability

The Liabilities of a firm are Rs.3,000; the capital of the proprietor is Rs.7,000. The total assets are ____________

(a)

Rs.7,000

(b)

Rs.10,000

(c)

Rs.4,000

(d)

Rs.12,000

Harsha commenced business on 1^st April, 2013 with a capital of Rs.6,00,000. On 31^st March, 2014 his assets were worth Rs.8,00,000 and liabilities Rs.50,000. Find out his closing capital.

(a)

Rs.7,50,000

(b)

Rs.2,00,000

(c)

Rs.5,50,000

(d)

Rs.8,50,000

If the total assets of a business Rs.1,30,000 and capital is Rs.80,000. calculate the external liabilities (creditors equity)

(a)

Rs.1,00,000

(b)

Rs.50,000

(c)

Rs.30,000

(d)

Rs.70,000

If the total assets of the business are Rs.4,50,000 and external liabilities are Rs.2,00,000. calculate internal liabilities (owner's equity)

(a)

1,50,000

(b)

2,50,000

(c)

2,00,000

(d)

6,50,000

Point out the incorrect accounting equation

(a)

Assets = Liabilities + Capital

(b)

Assets = Capital + Liabilities

(c)

Liabilities = Assets + Capital

(d)

Capital = Assets - Liabilities

Which one of the accounting assumptions with which the account equation is formed ____

(a)

Going concern

(b)

Consistency

(c)

Dual aspect

(d)

Accrual

Which one of the following is representative personal account?

(a)

Capital A/c

(b)

Outstanding salary A/c

(c)

Mahesh A/c

(d)

Balan & Co..

Cash A/c is a ______

(a)

Real A/c

(b)

Nominal A/c

(c)

Personal A/c

(d)

Impersonal A/c

Process of recording business transaction in the prime record is called as _________

(a)

Posting

(b)

Balancing

(c)

Casting

(d)

Journalising

Personal account deals with ____

(a)

Debtor and creditor

(b)

Assets and Liabilities

(c)

Expenses and Losses

(d)

None of these

Which one is one of these cash transactions?

(a)

Sold goods to Raghavan

(b)

Bought goods from Anand

(c)

Salaries paid

(d)

Loan borrowed from Bank

Building is an item of ________

(a)

Expense

(b)

Liabilities

(c)

Asset

(d)

Revenue

Rent outstanding is _________

(a)

Nominal A/c

(b)

Personal A/c

(c)

Real A/c

(d)

Representative Personal A/c

Journal is a book of ___

(a)

Original Entry

(b)

Last Book

(c)

Secondary Entry

(d)

All transaction