One of the items on the credit column of a trial balance is
Returns outwards
Carriage outwards
Returns inwards
Carriage inwards
Correct answer is A
The rule of a trial balance is :
- debit all expenses and assets
- credit all income and gain and liabilities
Returns outwards is the total value of goods returned to suppliers out of the goods bought and it is also known as purchases returns. Therefore, returns outwards will be credited to the trial balance.
Use of following information to answer questions below
| D | |
| Motor vehicle | 500000 |
| Stock | 35000 |
| Debtors | 18000 |
| Cash | 12850 |
| Bank overdraft | 280000 |
| Creditors | 21500 |
The total current liability is
D 301,500
D 258,500
D 264,350
D 280,000
Correct answer is A
Total current liability = 280,000 + 21,500
= 301,500
Use of following information to answer questions below
| D | |
| Motor vehicle | 500000 |
| Stock | 35000 |
| Debtors | 18000 |
| Cash | 12850 |
| Bank overdraft | 280000 |
| Creditors | 21500 |
The total current asset is
D 65,850
D 367,350
D 345,850
D 87,850
Correct answer is A
Total current asset = 35,000 + 18,000 + 12,850
= 65,850
Use of following information to answer questions below
| D | |
|
Motor vehicle |
500000 |
|
Stock |
35000 |
|
Debtors |
18000 |
|
Cash |
12850 |
|
Bank overdraft |
280000 |
|
Creditors |
21500 |
The capital is
D 867,350
D 544,350
D 264,350
D 832,350
Correct answer is C
Capital = Total Asset - Total Liabilities
= ( 500,000 + 35,000 + 18,000 +12,850) - (280,000 + 21,500)
= 264,350
''Below the line'' item in public sector accounting means such an item is.........
Not budgeted for in the current fiscal year
Less than what is budgeted for
Budgeted for in the current fiscal year
To be carried forward to the next fiscal year
Correct answer is A
In public sector accounting, an item categorized as ''below the line'' is an income or expense in accounting which have no noticeable effect on company profits in the current period.
It means the item does not affect the profit or loss from normal operations for that accounting period.