Which account acts as a 'contra' account to Gross Debtors in the Balance Sheet? MCQ with Answer and Explanation

Question

Share Report Error

Which account acts as a 'contra' account to Gross Debtors in the Balance Sheet?

A. Sales Return Account

B. Bad Debts Account

C. Discount Allowed Account

D. Provision for Doubtful Debts Account

Answer: Option D

Solution (By JKSSB Mock Tests)

Provision for doubtful debts has a credit balance and is deducted from the debit balance of Debtors, acting as a contra-asset.

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 'Voucher Number' should be:

A. Same for all

B. Random

C. Sequential and unique

D. Date-based

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Vouchers should be numbered serially for control and easy reference.

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

Question #2

A change in depreciation method is treated as:

A. Prior period item

B. Error

C. Change in accounting policy

D. Extraordinary item

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Change in depreciation method is a change in accounting policy, requiring retrospective application as per AS 5.

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

Question #3

The term 'Working Capital' refers to:

A. Total Assets - Total Liabilities

B. Current Assets - Current Liabilities

C. Long-term Loans

D. Fixed Assets

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Working capital, or net working capital, is the difference between current assets and current liabilities, representing the short-term liquidity of the firm.

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

Explore All Accountancy and Book Keeping MCQs