The equivalent of a club's receipts and payment account is the?
Trading account
Revenue account
Cash account
Suspense account
Correct answer is C
A receipts and payments account is a summary of actual cash receipts and payments extracted from the cash book over a certain period. Its equivalent is a cashbook.
In the not-for-profit-making organization, the excess of income over expenditure is?
Deducted from the capital
Added to the accumulated fund
Added to the capital
Deducted from the the accumulated fund
Correct answer is C
Surplus is the excess of income over expenditure. A credit balance in the Income and expenditure account shows surplus. It is the profit earned and should be added to the capital fund on the liabilities side of the balance sheet
The prime cost is the total of the?
Production cost + selling expenses
Direct material + direct labour + direct expenses
Direct material + work overhead expenses
Administrative expenses + selling + distribution expenses
Correct answer is B
The prime cost is the summation of all direct expenses and direct materials used in production. Its simply direct cost incurred during production.
Debit side of manufacturing and profit and loss account
Debit side of profit and loss account only
Credit side of profit and loss account only
Debit side of manufacturing and balance sheet
Correct answer is B
The profit and loss account is used by manufacturing concerns to ascertain the cost of production at various stages. A motor vehicle used by a manufacturing company would be depreciated to the debit side of profit and loss account.
The gross loss on manufacturing is always transferred to the?
Credit side of balance sheet
Debit side of profit and loss account
Credit side of profit and loss account
Debit side of balance sheet
Correct answer is B
No explanation has been provided for this answer.