The 'Drawings' of the proprietor are deducted from: MCQ with Answer and Explanation

Question
The 'Drawings' of the proprietor are deducted from:
A. Sales
B. Gross profit
C. Net profit
D. Capital
Answer: Option D
Solution (By JKSSB Mock Tests)
Drawings are withdrawal of capital, shown as deduction from capital in balance sheet.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The 'Banking Cash Transaction Tax' (BCTT) was a:
A. Direct tax on cash withdrawals above certain limit (now abolished)
B. TDS
C. GST component
D. Indirect tax
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Correct Answer: Option A

Explanation:
BCTT was a direct tax on cash withdrawals from banks, abolished in 2009.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
A tax levied on a person based on their net wealth was the Wealth Tax. In India, Wealth Tax was abolished in:
A. 2017
B. 2015
C. 1991
D. 2005
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Correct Answer: Option B

Explanation:
Wealth tax was abolished in the Union Budget of 2015-16, replaced by an additional surcharge on the super-rich.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A credit sale of ₹10,000 to Ram was posted as ₹1,000. This is an error of:
A. Principle
B. Compensation
C. Commission
D. Omission
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Correct Answer: Option C

Explanation:
Error of commission occurs when a transaction is incorrectly recorded, e.g., wrong amount, wrong posting.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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