Accounting entries for the repayment of a loan received from Arjun, the owner's friend:
Debit cash account and Credit capital account
Credit cash account and Debit capital account
Credit cash account and Debit Arjun's loan account
Debit cash account and Credit Arjun's loan account
Rs 12000/- paid to buy mobile phone for sale.
Mobile phone account
Purchase account
Furniture account
Sales account
Every business transaction affects at least two accounts or two sides and accordingly records the transaction in two related heads of accounts is known as:
Single entry system
Double entry system
Barter system
Transaction system
The right side of an account is known as:
Right
Left
Debit
Credit
Double entry system is a scientific system of recording transaction as it keeps:
Books of accounts
Audit
Specific rules and principles
Trial balance
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.
Every debit has a credit and every credit has a debit is based on the principle of:
Book keeping
Accountancy
Double entry
Rs 5,00,000/- paid to acquire a lorry for business use.
Capital account
Motor vehicle account
Transport account
Drawings account
