In the balance sheet of a social club, subscription owing is treated as a
Current liability
Current asset
Tangible asset
Long term liability
Correct answer is B
Outstanding Subscription (subscription owing) It is that amount of Subscription which has been due from Previous year(s) and still remains unpaid. Therefore, It is deducted while ascertaining Subscription received during the Current Year and on the Other hand, it is shown on the Assets side of Opening Balance Sheet.
Which of the following is a not revealed by a firm's accounting records?
Profit of a period
Quality of labour force
Credit worthiness
Value of assets
Correct answer is B
Accounting records include records of assets and liabilities, monetary transactions, ledgers, journals and any supporting documents such as checks and invoices. The firm quality of labour force isnt included in an acounting record.
The total of the returns outwards journal is posted to the
Credit side of the returns outwards book
Debit side of the returns outwards account
Debit side of the purchases returns book
Credit side of the returns outwards account
Correct answer is D
When merchandise (goods) purchased for cash are returned to supplier, we need to record two journal entries. In first entry we debit accounts receivable account and credit purchases returns and allowances account. This entry is made to recognize the return of merchandise. In second entry we debit cash account and credit accounts receivable account. This entry is made when a refund is received from supplier for merchandise returned to him
Which of the following items is found in the sales ledger control account?
Discount received
Total credit purchases
Discount allowed
Returns outwards
Correct answer is C
A discount allowed is when the seller of goods or services grants a payment discount to a buyer. Discount allowed has to do with purchases
The process of using sales ledger balance to cancel off purchases ledger balance is
Balancing
Set off
Reconciliation
Cancelling
Correct answer is B
A set-off clause is a legal clause that gives a lender the authority to seize a debtor's deposits when they default on a loan. A set-off clause can also refer to a settlement of mutual debt between a creditor and a debtor through offsetting transaction claims.