Every debit has a credit and every credit has a debit is based on the principle of:
Book keeping
Accountancy
Double entry
Single entry system
The total of the debit balances listed a trial balance will not be equal to that of the credit balances:
If an amount entered in the prime entry book is not posted.
If an amount paid for purchases is posted to stationery account.
If an amount drawn by the owner is posted to the debit of the capital account.
If a transaction has not been entered in the book of prime entry.
According to the rules of debt and credit, on what side the increase of rent paid account will be recorded?
It is not recorded.
A cash book with cash, bank and discount column is commonly referred as:
Cash book
Two column cash book
Three column cash book
Petty cash book
Rs.25000/- paid for servicing the business lorry.
Vehicle maintenance account
Motor vehicle account
General expense account
Service account
Which of the following statement is correct?
A trial balance reports the financial position of a business.
A trial balance reveals whether double entry principle has been complied with.
A trial balance will always balance.
A trial balance reports the profit or loss made by business.
Rs 12000/- paid to buy mobile phone for sale.
Mobile phone account
Purchase account
Furniture account
Sales account
Which one is the advantage of double entry system?
Lack of arithmetical accuracy
Incomplete record of transaction
No accuracy before making of trial balance
Preparation of trading and profit and loss account
