Depreciation Account appearing in the Trial Balance is shown in:

Related Mcqs:

1. Depreciation appearing in the Trial Balance should be?

   A. Debited to P&L A/c
   B. Shown as liability in Balance Sheet
   C. Reduced from related asset in Balance Sheet
   D. Both A. and C. above

2. Closing stock appearing in the Trial Balance is shown in:

   A. Trading A/c and Balance Sheet
   B. Profit and Loss A/c
   C. Balance Sheet only
   D. Trading A/c only

3. Which of the following account with normal balance is shown at the debit side of a trial balance?

   A. Rent income account
   B. Creditors account
   C. Unearned income account
   D. Cash account

4. Which of the following account with normal balance is shown at the credit side of a trial balance?

   A. Cash account
   B. Bank account
   C. Equipment account
   D. Accrued expenses account

5. Which of the following statements is true with regard to written down value method of depreciation?
   i. The rate at which the asset is written off reduces year after year
   ii. The amount of depreciation provided reduces from year to year
   iii. The rate of depreciation as well as the amount of depreciation reduce year after year
   iv. The value of the asset gets reduced to zero over a period of time

   A. Only (i) above
   B. Only (ii) above
   C. Both (i) and (ii) above
   D. (i),(ii) and (iii) above

6. Debit balance = Credit balance in a trial balance indicates that:

   A. No error in recording transactions
   B. No error in posting entries to ledger accounts
   C. Account balances are correct
   D. Mathematically Capital+Liabilities=Assets

7. A few errors committed in Ahhiwalia’s books of account are given below. State which errors would affect the Trial Balance.

   (a). Sales of `950 to Ram completely omitted from books of account
   (b). Purchases of `720 from Shyam entered in the purchases journal as `700
   (c). Purchases Journal is overcast by `1,000
   (d). Sales returns journal is undercast by `200
   (e) Amount paid to Agarwal wrongly posted to the debit to Mittal’s account
   (f) Bank overdraft shown under debit column in the Trial Balance
   (g) Sales of `500 to Sadiq entered in sales journal as sales to Mushtaq
   (h) Wages paid for installation of machinery debited to wages account

   A. a, c and g
   B. c, d and f
   C. c, d, e and h
   D. c, d, f and h

8. Based on which of the following concepts, is Share Capital Account shown on the liabilities side of a Balance Sheet?

   A. Business entity concept
   B. Money measurement concept
   C. Going concern concept
   D. Matching concept

9. If debit balance is greater than creadit balance then the account blance will be__________?

   A. Credit balance
   B. Debit and credit balance
   C. Cash balance
   D. Debit balance

10. Which of the following is true with respect to providing depreciation under diminishing balance method?

    A. The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing
    B. The amount of depreciation and the rate of depreciation decrease every year
    C. The amount of depreciation decreases while the rate of depreciation remains the same
    D. The amount of depreciation and the rate of depreciation increases every year