Converting Single Entry to Double Entry involves preparing a 'Total Creditors Account' to find out: MCQ with Answer and Explanation

Question

Share Report Error

Converting Single Entry to Double Entry involves preparing a 'Total Creditors Account' to find out:

A. Closing Capital

B. Cash Purchases

C. Credit Purchases

D. Credit Sales

Answer: Option C

Solution (By JKSSB Mock Tests)

Total Creditors Account reconstructs the relationship with suppliers; the balancing figure usually represents the missing credit purchases.

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

The 'Revenue Deficit' is:

A. Total expenditure minus total receipts

B. Fiscal deficit minus borrowings

C. Revenue expenditure minus revenue receipts

D. Capital expenditure minus capital receipts

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Revenue deficit = Revenue expenditure - Revenue receipts.

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

Question #2

The 'Accounting Equation' remains intact under:

A. Single entry only

B. Double entry system

C. All systems

D. Cash system

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Double entry system always maintains the balance of accounting equation. Single entry does not.

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

Question #3

Under Ind AS 115, 'Variable Consideration' (like bonuses or penalties) can only be included in the transaction price if:

A. The performance obligation is fully satisfied.

B. The customer has explicitly agreed to the variable amount in the contract.

C. It is highly probable that a significant reversal in the amount of cumulative revenue will not occur.

D. The entity has received the cash for the variable consideration.

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Ind AS 115 imposes a constraint on variable consideration. It can only be included in the transaction price to the extent that it is highly probable that a significant reversal of revenue will not occur when the uncertainty is resolved.

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

Explore All Accountancy and Book Keeping MCQs