Net profit is ______.

(a)

Debited to capital account

(b)

Credited to capital account

(c)

Debited to drawings account

(d)

Credited to drawings account

Accrued interest on investment will be shown______.

(a)

On the credit side of profit and loss account

(b)

On the assets side of balance sheet

(c)

Both (a) and (b)

(d)

None of these

The income which has been earned during the current accounting year but .not received till the end of that accounting year is called as _____

(a)

Outstanding expenses

(b)

Prepaid expenses

(c)

accrued income

(d)

Received income

_______ is a loss for the business and should be adjusted against profit.

(a)

Interest on Capital

(b)

Depreciation

(c)

Debtors

(d)

Bad debts

The Trial Balance shows bank loan Rs.5,00,000 at 12% on 01-01-2015. Interest paid Rs.40,000. Interest outstanding is ______ as on 31-12-2015.

(a)

Rs.60,000

(b)

Rs.40,000

(c)

Rs.27,600

(d)

Rs.20,000

All the items given in the adjustment will appear at ______ in the Filial accounts.

(a)

One place

(b)

Two places

(c)

Three places

(d)

None of these

Net profit is transferred from profit and loss account ______ account.

(a)

Capital

(b)

Drawings

(c)

Bank overdraft

(d)

Sundry creditors

Unexpired expenses are also called as_________.

(a)

Outstanding expenses

(b)

Prepaid expenses

(c)

Accrued income

(d)

Income received in advance

The decrease in book value of fixed assets due to usage or passage of time is called_________.

(a)

Bad debts 

(b)

Depreciation

(c)

Closing stock

(d)

Capital

Commission on net profit after charging such commission __________

(a)

\(\frac{Rate\ of\ Commission}{(100+Rate\ of\ commission)}\)

(b)

\(\frac{Rate\ of\ Commission}{100}\)

(c)

\(\frac{Rate\ of\ Commission}{(100-Rate\ of\ commission)}\)

(d)

None of these