Accounting entries for recording the payment of a telephone bill are:
Credit cash account and Debit telephone expense account
Debit capital account and credit cash account
Credit telephone expense account and credit cash account
Debit cash account and credit capital 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
Find out the causes of popularity of double entry.
No accuracy before making of trial balance
Preparation of trial balance
Not suitable for small business
All of the above
Pick up the odd one.
Trade mark
Patents account
Goodwill
Cash
According to the rules of debt and credit, on what side the increase of rent paid account will be recorded?
Debit
Credit
Both a and b
It is not recorded.
Every transaction changes:
The assets
Liabilities
Capital
Either or all of these
The total of the debit balances listed in 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.
