An account in the ledger has a debit total of Rs 10,000 and a credit total of Rs 8,000. It is said to have a: MCQ with Answer and Explanation

An account in the ledger has a debit total of Rs 10,000 and a credit total of Rs 8,000. It is said to have a:
A. Credit balance of Rs 2,000
B. Debit balance of Rs 18,000
C. Debit balance of Rs 2,000
D. Credit balance of Rs 18,000
Answer: Option C
Solution (By JKSSB Mock Tests)
The balance is the difference between the sides. Since the debit side is heavier by Rs 2,000, it is a debit balance.

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Practice More Accountancy and Book Keeping Questions

Question #1
A bill of exchange for ₹20,000 discounted with bank for ₹19,500. The discount charged is:
A. ₹500
B. ₹1,000
C. ₹20,000
D. ₹19,500

Correct Answer: Option A


Explanation:
Discount = Face value - Amount received = 20,000 - 19,500 = ₹500.

Question #2
Which standard ensures consistency in classifying cash flows from operating, investing, and financing activities in India?
A. Ind AS 2
B. Ind AS 1
C. Ind AS 7
D. Ind AS 10

Correct Answer: Option C


Explanation:
Ind AS 7 (equivalent to IAS 7) deals specifically with the preparation and presentation of the Statement of Cash Flows.

Question #3
The 'GST Compensation to States' is for a period of:
A. 10 years
B. 3 years
C. Indefinite
D. 5 years

Correct Answer: Option D


Explanation:
Compensation to states for revenue loss was guaranteed for 5 years from GST implementation (2017-2022).