The total value received by company as consideration for shares issued constitutes
Paid-up capital
Authorised capital
Working capital
Capital employed
Correct answer is A
No explanation has been provided for this answer.
Which of the following is entered in the general journal?
Purchase of goods
Sale of goods on credit
Returns inward
Acquisition of fixed assets
Correct answer is D
The general ledger should include the date, description and balance or total amount for each account. It is usually divided into at least seven main categories. These categories generally include assets, liabilities, owner's equity, revenue, expenses, gains and losses.
Cash book and sals ledger
Nominal ledger and sales ledger
Cash book and purchases ledger
Nominal ledger and purchases ledger
Correct answer is C
No explanation has been provided for this answer.
An error of principle is made, if
An entry has been made on the wrong class of account
A transaction has been completely omitted
An entry has been made on the wrong side of the two accounts corrected
A transaction is entered in both accounts for the wrong amount
Correct answer is A
An error of principle is an accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting. An error of principle is a procedural error, meaning that the value recorded was the correct value but placed incorrectly.
A bookkeeper debited Motor Vehicle Account instead of Motor Expenses Account. This is an error of
Commission
Original entry
Complete reversal of entry
Principle
Correct answer is D
No explanation has been provided for this answer.