For real accounts, the rule is: MCQ with Answer and Explanation

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For real accounts, the rule is:

A. Debit the receiver, Credit the giver

B. Debit what comes in, Credit what goes out

C. None of these

D. Debit expenses and losses, Credit incomes and gains

Answer: Option B

Solution (By JKSSB Mock Tests)

Real accounts (assets) follow: Debit what comes in, credit what goes out.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

A 'Partnership Deed' contains:

A. Only the name of the firm

B. Only capital contributions

C. Terms and conditions of partnership

D. Only profit sharing ratio

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Correct Answer: Option C

Explanation:
It is a written agreement that includes all terms like profit sharing, interest on capital, salary, etc.

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Question #2

Contingent liability is shown in the balance sheet:

A. As a footnote

B. As an asset

C. Under current liabilities

D. Under provisions

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Correct Answer: Option A

Explanation:
Contingent liabilities are disclosed by way of notes to accounts, not as a liability in the balance sheet.

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

Question #3

The 'Target Costing' approach begins with:

A. Determining cost of production

B. Setting a desired selling price and then deducting desired profit margin to arrive at target cost

C. Calculating actual cost

D. Budgeting

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Correct Answer: Option B

Explanation:
Target costing is a market-driven approach: Target cost = Target selling price - Desired profit.

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

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