Advantage of double entry system are:
Scientific system
Knowledge of financial position
Knowledge about different account
All the above
Double entry system is a scientific system of recording transaction as it keeps:
Books of accounts
Audit
Specific rules and principles
Trial balance
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
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
The left hand side of an account is known as:
Right side
Left side
Debit side
Credit side
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.
Every transaction changes:
The assets
Liabilities
Capital
Either or all of these