Under-casting of a Sales book by Rs 1,000 will result in: MCQ with Answer and Explanation

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Under-casting of a Sales book by Rs 1,000 will result in:

A. Suspense account with a debit balance

B. Debit column of Trial Balance being short by Rs 1,000

C. Credit column of Trial Balance being short by Rs 1,000

D. No effect on the Trial Balance totals

Answer: Option C

Solution (By JKSSB Mock Tests)

Sales have a credit balance. If it's under-casted, the total credit postings will be Rs 1,000 less, making the credit column short.

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

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An unregistered partnership firm cannot sue third parties, but:

A. It has no legal existence

B. It cannot be sued

C. It cannot enter contracts

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Correct Answer: Option D

Explanation:
An unregistered firm cannot sue, but third parties can sue the firm.

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Question #2

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Correct Answer: Option C

Explanation:
SLM calculates depreciation on the original cost, resulting in the same amount being charged each year.

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Question #3

S1: A triple column cash book has a discount column on both sides. S2: Discount allowed is debited and discount received is credited. Which statement(s) is/are correct?

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Correct Answer: Option A

Explanation:
A triple column cash book has cash, bank, and discount columns on both debit and credit sides. Discount allowed (an expense) is recorded on the debit side, and discount received (an income) is recorded on the credit side. Both are correct.

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

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