Transfer to General Reserve is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Correct Answer :
C. Profit and Loss Appropriation Account
Related Questions
Which of the following events is not a transaction?
Mr. Employer paid salary of Rs.9,000 to Mr. Employee.
Rahul sold his bicycle to Rohan for Rs.600.
Abhijeet gifted a book, priced at Rs.800, to Amit.
None of the above.
Business ventures, which are started for a predefined period, are known as _____________ventures
Joint
Terminal
Treminable
Limited Period
The aggregate of direct material, direct labour and direct expenses is known as
Product Cost
Manufacturing Cost
Prime Cost
Production Cost
Deferred Revenue Expenditure is current year's revenue expenditure to be paid in latter years.
True
False
The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
Trial Balance is prepared after the preparation of Profit and Loss Account.
True
False
The life span of a company is dependent on the life span of the
Owner(s) of the company
Promoter of the company
Managing Director of the company
None of the above
Arrange the steps of accounting in sequential order -
(i) Trial Balance;
(ii) Journal Entry;
(iii) Balancing of Accounts;
(iv) Ledger Posting.
(i),(ii),(iii),(iv)
(ii),(iii),(iv),(i)
(ii),(iv),(i),(iii)
(ii),(iv),(iii),(i)
Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.
True
False
A part of the profit distributed to the shareholders is known as
Reserve & Surplus
Retained Earnings
Dividend
Net Profit
All credit sales are recorded in
Sales Day Book
Sales Credit Book
Sales Day Account
Sales Day Register
Goodwill is not a fictitious asset.
True
False
The accounts of a company may be maintained using Single Entry System of Book Keeping also.
True
False
Depreciation cannot be provided in case of loss, in a financial year.
True
False
Expenditure, which result in acquisition of permanent assets, is a capital expenditure.
True
False
An expense incurred to keep the machine in working condition is a capital expenditure.
True
False
WIP stands for
Working Progress
What-in-Progress
Work-in-Progress
Works-in-Progress
Accrual concept implies accounting on cash basis.
True
False
Copyright is an example of
Real Account
Asset
Intangible Asset
All of the above
Net Realisable Value of an asset means
The historical cost of the asset
Its sale value as on a particular date
Its written down value as on a particular date
None of the above
Wages and Salaries is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
The first step of accountancy is
Journal Entry
Ledger Posting
Balancing of Accounts
Trial Balance
Mr.Customer purchased goods from Mr.Seller on credit. This is a/an
Event
Transaction
Both (a) and (b)
None of the above
The cost of a machine is Rs.6,00,000. The rate of depreciation is 10%. The depreciation for the 3rd year, on diminishing balance method, is
Rs.60,000
Rs.54,000
Rs.48,600
Rs.43,740
Capital of the business is an example of external liability.
True
False
Fixed Assets are stated in the balance sheet at their market value.
True
False
Contingent liability is an ascertained liability but its amount and due date are indeterminate.
True
False
Depreciation is not charged on _______________.
New assets
Land
Building
None of the above
The balance in the Cash Book represents net income.
True
False
The cost of a machine is Rs.5,70,000. Its scrap value is Rs.25,000 and useful life is 10 years. The depreciation amount under Straight Line Method is
Rs.57,000
Rs.59,500
Rs.54,500
Rs.50,000