Carriage outward is shown in: MCQ with Answer and Explanation
Question
Report Error
Discuss this Question (0)
Practice More Accountancy and Book Keeping Questions
Question #1
Report Error
A credit balance in the bank column of a cash book signifies:
Correct Answer: Option C
Explanation:
Since bank is an asset (usually debit balance), a credit balance means the business has withdrawn more than deposited, creating an overdraft liability.
Since bank is an asset (usually debit balance), a credit balance means the business has withdrawn more than deposited, creating an overdraft liability.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
Report Error
Under the Income Tax Act, if a business loss of ₹5,00,000 (non-speculative) and a speculation loss of ₹2,00,000 are incurred in the same year, and the total profit from other heads is ₹3,00,000, what is the maximum loss that can be carried forward?
Correct Answer: Option A
Explanation:
Non-speculative business loss can be set off against any other head (up to ₹3,00,000), leaving ₹2,00,000 to carry forward. Speculation loss can only be set off against speculation profit (₹0 here), so the full ₹2,00,000 carries forward. Total carry forward = ₹2,00,000 + ₹2,00,000 = ₹4,00,000.
Non-speculative business loss can be set off against any other head (up to ₹3,00,000), leaving ₹2,00,000 to carry forward. Speculation loss can only be set off against speculation profit (₹0 here), so the full ₹2,00,000 carries forward. Total carry forward = ₹2,00,000 + ₹2,00,000 = ₹4,00,000.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
Report Error
S1: Vouching checks the arithmetical accuracy of the books. S2: Vouching checks the authenticity of the transactions. Which statement(s) is/are correct?
Correct Answer: Option C
Explanation:
Vouching is the examination of documentary evidence to verify the authenticity and accuracy of transactions, not their arithmetical accuracy (which is checked by the Trial Balance). S1 is incorrect, S2 is correct.
Vouching is the examination of documentary evidence to verify the authenticity and accuracy of transactions, not their arithmetical accuracy (which is checked by the Trial Balance). S1 is incorrect, S2 is correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
No comments yet. Be the first to start the discussion!