A contra entry is passed in the: MCQ with Answer and Explanation

Question Report Error

A contra entry is passed in the:

A. Cash Book

B. Ledger

C. Journal Proper

D. Trial Balance

Answer: Option A

Solution (By JKExamLibrary)

Contra entries involve transactions between cash and bank columns and are recorded exclusively in the triple-column cash book.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

The 'Agriculture' (Ind AS 41) requires biological assets to be measured at:

A. Historical cost

B. Net realisable value

C. Cost

D. Fair value less costs to sell

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Correct Answer: Option D

Explanation:
Ind AS 41 mandates fair value measurement for biological assets.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The 'ASB' stands for:

A. Accounting Standards Board of ICAI

B. Accounting Standards Bureau

C. Audit and Standards Bureau

D. Auditing Standards Board

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Correct Answer: Option A

Explanation:
ASB is Accounting Standards Board, constituted by ICAI to formulate accounting standards.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

Goods withdrawn by the proprietor for personal use are recorded by:

A. Debiting Drawings, Crediting Purchases

B. Debiting Purchases, Crediting Drawings

C. Debiting Capital, Crediting Cash

D. Debiting Drawings, Crediting Sales

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
Drawing goods reduces the stock of items bought for resale, so Purchases A/c is credited at cost price.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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