1. Gross Profit is
transferred to _______________ Account.
a. Trading
b. Profit and Loss
c.
Partner's capital
d. Balance
sheet.
2. Debit balance of
current account of a partner appears on _________________ side of balance
sheet.
a. liability
b. asset
c. debit
d.
credit
3. _______________ is
a statement of balances of ledger accounts.
a. statement of
affairs
b. trial balance
c. final account
d. balance sheet
4. In the absence of
partnership deed the partners share profits and losses in the __________ ratio.
a. agreed
b. equal
c. capital
d. initial contribution
5. The interest on
capital of a partner is debited to ______________ account.
a. Trading
b. profit and loss
c.
Partner's capital
d. Bank
6. Income received in
advance is shown on _____________ side of balance sheet.
a. asset
b. liability
c. debit
d.
credit
7. A provision made
for debts irrecoverable from the debtors is called ________
a. bad debts
b. Reserve
for doubtful debts
c. reserve
for discount on debtors
d. reserve
for discount on creditors.
8. Prepaid expenses/
payment made in advance are shown on the
_________ side of the Balance sheet.
a. debit
b. credit
c. asset
d. laibility
9. Wages paid for
installation of machinery should be debited to _____________ A/c
a. wages
b.
machinery
c. trading
d. profit and loss
10. Expenditure on
purchase of a building is a __________________
a. revenue
b. capital
c. recurring
d.
genera. 