A 'Contra Entry' in the cash book involves: MCQ with Answer and Explanation
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Question #1
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If the Trial Balance totals do not match, the difference is temporarily transferred to:
Correct Answer: Option C
Explanation:
When the Trial Balance disagrees, the difference is placed in a Suspense Account to allow the preparation of final accounts. The suspense account is cleared once the errors are located and rectified.
When the Trial Balance disagrees, the difference is placed in a Suspense Account to allow the preparation of final accounts. The suspense account is cleared once the errors are located and rectified.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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S1: Goodwill is an intangible asset. S2: Goodwill can be self-generated and recorded in the books of accounts. Which statement(s) is/are correct?
Correct Answer: Option D
Explanation:
Goodwill is an intangible asset representing the firm's reputation. However, AS 26 prohibits the recognition of self-generated goodwill in the balance sheet; only purchased goodwill can be recorded. S1 is correct, S2 is incorrect.
Goodwill is an intangible asset representing the firm's reputation. However, AS 26 prohibits the recognition of self-generated goodwill in the balance sheet; only purchased goodwill can be recorded. S1 is correct, S2 is incorrect.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Ind AS' are applicable to companies in India in a phased manner based on:
Correct Answer: Option A
Explanation:
Ind AS applicability is determined by net worth, whether listed or unlisted, and other criteria.
Ind AS applicability is determined by net worth, whether listed or unlisted, and other criteria.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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