Drawings made by a partner would be
Credited to current account
Credited to appropriation account
Debited to appropriation account
Debited to current account
Correct answer is D
Drawing is the amount withdrawn or taken out of the business by partners during the year. The drawings can be in cash or kind. it is debited to the current account.
Manufacturing account is prepared to ascertain
Profit on goods produced
Cost of goods produced
Cost of goods sold
Profit on goods sold
Correct answer is B
Manufacturing account is prepared to determine the cost of production or cost of goods manufactured during the financial year.
Provision for doubtful debts is made in conformity with
Business entity concept
Money measurement concept
Prudence concept
Materiality concept
Correct answer is C
Prudence also known as conservatism. The principles states that the accountant should not be anticipate income and will normally take figure that will understate rather than overstate the profit.
Use the following information to answer questions below
| $ | |
| Cash book balance (credit) | 750 |
| Uncredited cheques | 500 |
| Unprecedented cheques | 1680 |
| Direct credit | 300 |
| Bank charges | 150 |
Balance as per bank statement is
$580 Cr.
$430 Dr.
$430 Cr.
$1,480 Cr.
Correct answer is C
Balance as per bank statement = 300+ 1680 - 500
= 1480