To account for expenses paid by head office on behalf of the branch, the branch should___________
Debit profit and loss account and credit head office account
Debit head office account and credit cash
Credit cash and debit profit and loss account
Credit profit and loss account and debit head office account
Correct answer is A
The head office maintains a book, (branch account) more or less like other personal accounts, so that any expenses incurred on behalf of the branch will also be debited to the branch account. Similarly, in the branch books, there will be head office accounts
36,925Cr
40,000Cr
50,000Dr
36,295Dr
Correct answer is A
Drawings: 3000 + 2000 + 4000 + 1500 + 2500 = 13000
Which of the following is a conversion cost?
Factory overhead
Purchases
Material cost
Wages
Correct answer is A
Conversion costs are costs required to convert raw materials into finished goods
Formula for conversion cost= direct labor+ factory overheads
#511.25 debit
#500.00 credit
#349.75 debit
#340.00 credit
Correct answer is C
The amount withdrawn by the partners for their personal use out of the firm is known as drawings. Interest are charged on this drawings
Cost of rent as an expense can be apportioned to all department on the basis of:
No of employees
Stock value
Space occupied
Wages
Correct answer is C
Indirect expenses are allocated among departments in order to ascertain the profits or loss made by each department.
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