The method of ascertaining capital from income record is by preparing the
Cash book
Statement of affairs
Suspense account
Control account
Correct answer is B
No explanation has been provided for this answer.
Which of the following subsidiary books involves cash movements?
Sales day book
Purchases day book
Returns inwards book
Petty cash book
Correct answer is D
A petty cash is a cash book used to enter all small or petty expenses obtained. For example tea, Xerox copy etc. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and postage.
An example of a credit entry in a profit and loss account is
Carriage inwards
Carriage outwards
Discounts allowed
Discounts received
Correct answer is D
Discount received appear as a credit on the Profit and Loss Account. Basically, the cash discount received journal entry is a credit entry because it represents a reduction in expenses.
Goods returned by the buyer is recorded in the seller's book as
Carriage inwards
Carriage outwards
Returns outwards
Returns inwards
Correct answer is D
Returns inwards refer to goods returned to the selling entity by the customer/buyer due to one reason or the other. The goods would be recorded by the seller in the returns inwards account.
In the operation of an imprest of petty cash, the
Petty cashier pays all expenses
Petty cashier pays money to the accountant
Petty cashier regularly begins each period with the same amount of money
Main cashier accounts to the petty cashier for some experiences made by him
Correct answer is C
An imprest system is a Self-checking account where a fixed balance is maintained by regular replenishments and used for paying small, routine operating expenses. Also called Imprest account, Imprest fund, petty cash account, or petty cash fund.