Bank Overdraft appears in the balance sheet under: MCQ with Answer and Explanation

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Bank Overdraft appears in the balance sheet under:

A. Current Liabilities

B. Contingent Liabilities

C. Non-Current Liabilities

D. Current Assets

Answer: Option A

Solution (By JKSSB Mock Tests)

Bank overdraft is a short-term borrowing repayable on demand, hence classified as a Current Liability.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

'Revenue from Contracts with Customers' is covered under:

A. AS 7

B. Ind AS 109

C. Ind AS 115

D. AS 9

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Correct Answer: Option C

Explanation:
Ind AS 115 provides a comprehensive framework for revenue recognition.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

In voucher system, a 'Debit Voucher' is prepared for:

A. Cash receipts

B. Credit purchases

C. Cash payments

D. Credit sales

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Correct Answer: Option C

Explanation:
Debit voucher records cash/bank payment transactions.

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Question #3

In which book, credit purchase of machinery is recorded?

A. Cash book

B. Sales book

C. Journal Proper

D. Purchase book

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Correct Answer: Option C

Explanation:
Purchase book is for credit purchases of goods. Machinery is an asset, so credit purchase is recorded in Journal Proper.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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