The 'Purchase Returns Book' records: MCQ with Answer and Explanation

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The 'Purchase Returns Book' records:

A. Credit purchases

B. Cash purchases

C. Goods returned by customers

D. Goods returned to suppliers

Answer: Option D

Solution (By JKSSB Mock Tests)

Purchase returns (returns outward) are recorded in this subsidiary book.

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

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Question #1

The 'Self-Assessment Tax' is paid:

A. By the government

B. By the bank

C. By the assessee on his own after computing tax liability

D. By the employer

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Correct Answer: Option C

Explanation:
Self-assessment tax is tax paid voluntarily by the taxpayer on income after considering TDS and advance tax.

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Question #2

In a trial balance, if the total of the debit side is ₹50,000 and the credit side is ₹45,000, the difference is placed in:

A. Capital Account

B. Suspense Account

C. Profit & Loss Account

D. Trading Account

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Correct Answer: Option B

Explanation:
When the trial balance does not tally, the difference is temporarily placed in a Suspense Account to allow the preparation of financial statements.

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

Question #3

'Dividend' can be paid out of:

A. Capital

B. Borrowed funds

C. Securities premium

D. Current year's profits or accumulated profits

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Correct Answer: Option D

Explanation:
Dividend is paid only out of profits.

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

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