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Accounting Question and Answers

Question 1- Cash in hand goes on which side of ledger - debit or credit?

Question 2- Credit bank balance in your account is asset or a liabilty?

Question 3- Why credit is always on right and debit on left in your ledger?

Question 4- Where Partner's capital goes in the Balance Sheet?

Question 5- When you reconcile the bank with your books, you found Rs. 200 as bank charges. How will you enter in your day book.

Question 6- You have online made a payment of Rs.10000/-for mobile bill from your partners's personal account as you were not getting the OTP and it was last day to make payment. How will you make the entry.

Question 7- What is trading account?

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Answer 1- Cash in hand is the debit entry in the ledger. Because it is alway receivable, cash in hand is an asset.

Answer 2- Credit bank balance is liability.

Answer 3- Credit is always on right and debit is on left in the ledger, the reason is this is the system made to follow in book keeping so that auditors, accountants and even we become habitual to check the account. It will not affect the basic accounting if written vise versa. It is a Rule to follow.

Answer 4- Partner's Capital is the liability of the company.

Answer 5- Credit Bank Rs. 200 and debit Bank charges account.

Answer 6- Credit Particular partners account for Rs. 10000/- and debit the Mobile expenses account Rs. 10000/-

Answer 7- Trading account is prepared mainly to know the profitability of the goods bought (or manufactured) sold by the businessman. The difference between selling price and cost of goods sold is the, gross earning of the businessman. Thus in order to calculate the gross earning, it is necessary to know:

(a) cost of goods sold.

Cost of the sold goods is its purchase price + the direct expenses like freight, octroi

(b) sales.

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