Author: Faraz Ahmed – Page 17

✅ C. Rs. 17,000

Option A : Rs. 33,000 Option B : Rs. 25,000 Option C : Rs. 17,000 Option D : Rs. 8,000 Correct Answer : Rs. 17,000 Read more

✅ A. Written down to zero or its scrap value

Option A : Written down to zero or its scrap value Option B : Shown in the Balance Sheet at its replacement cost Option C : Shown in the Balance Sheet at cost, but classified as a non-current asset Option D : Carried in the accounting records at cost until it is sold Correct Answer : Written down to zero… Read more

✅ D. Advance payments made to suppliers for raw materials

Option A : Finished goods Option B : Work-in-process Option C : Stores and spares Option D : Advance payments made to suppliers for raw materials Correct Answer : Advance payments made to suppliers for raw materials Read more

✅ B. Debit balance of Provision for Bad Debts Account

Option A : Credit balance of Provision for Bad Debts Account Option B : Debit balance of Provision for Bad Debts Account Option C : Debit balance of Bad Debts Account Option D : Debit balance of Discount on Debtors Account Correct Answer : Debit balance of Provision for Bad Debts Account Read more

✅ A. Debit Profit and Loss Account and deduct the provision from debtors

Option A : Debit Profit and Loss Account and deduct the provision from debtors Option B : Credit Profit & Loss Account and deduct the provision from debtors Option C : Credit Profit and Loss Account and add the provision to debtors Option D : Debit Profit & Loss Account and add the provision to debtors Correct Answer : Debit… Read more

✅ D. All of the above

Option A : The bad debt expense is not matched with the related sales Option B : Revenue is overstated in the year of sales Option C : It violates the matching principle of accounting Option D : All of the above Correct Answer : All of the above Read more

✅ B. Profit & Loss A/c

Option A : Debtors A/c Option B : Profit & Loss A/c Option C : Profit & Loss Adjustment A/c Option D : Profit & Loss Appropriation A/c Correct Answer : Profit & Loss A/c Read more

✅ D. Capital Reserve A/c

Option A : General Reserve A/c Option B : Profit & Loss A/c Option C : Asset A/c Option D : Capital Reserve A/c Correct Answer : Capital Reserve A/c Read more

✅ A. Book value

Option A : Book value Option B : Intrinsic value Option C : Cost Option D : Market value Correct Answer : Book value Read more

✅ E. above

Option A : Shown as a deduction from contract work-in-progress on asset side Option B : Shown as a liability Option C : Credited to P&L A/c Option D : Either or Correct Answer : Either or above Read more