An unpaid electricity bill of Rs 5,000 at the end of the year requires an adjusting entry. It will: MCQ with Answer and Explanation

An unpaid electricity bill of Rs 5,000 at the end of the year requires an adjusting entry. It will:
A. Debit Electricity A/c, Credit Outstanding Expense
B. Debit Outstanding Expense, Credit Electricity A/c
C. Debit P&L A/c, Credit Cash
D. Debit Cash, Credit Electricity A/c
Answer: Option A
Solution (By JKSSB Mock Tests)
Recognizing the expense (Debit Electricity A/c) and creating the liability (Credit Outstanding Electricity Expense).

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Practice More Accountancy and Book Keeping Questions

Question #1
Under the Companies Act 2013, the 'Independent Directors' must hold a special training as per Section 149. Who is exempted from this training requirement?
A. A person who has been a director for more than 10 years
B. A qualified Chartered Accountant or Company Secretary
C. A person who has already undergone the training or is a whole-time director in a listed company
D. No one is exempted

Correct Answer: Option C


Explanation:
The Companies Act exempts individuals who have already undergone the prescribed independent director training, or those who are already serving as whole-time directors in listed companies, from the mandatory training requirement.

Question #2
Tax Deducted at Source (TDS) on rent of land/building under section 194I (exceeding Rs 2.4 lakhs p.a.) is at the rate of:
A. 1%
B. 5%
C. 10%
D. 2%

Correct Answer: Option C


Explanation:
Under Section 194I of the Income Tax Act, TDS on rent for land and buildings is deducted at 10%.

Question #3
Which of the following is not a type of voucher?
A. Accounting voucher
B. Supporting voucher
C. Source voucher
D. Audit voucher

Correct Answer: Option D


Explanation:
Vouchers are classified as source vouchers (e.g., invoices) and accounting vouchers (e.g., cash, debit, credit, journal). Audit voucher is not a standard type.