Drawings made by a partner would be
Credited to current account
Credited to appropriation account
Debited to appropriation account
Debited to current account
Correct answer is D
Drawing is the amount withdrawn or taken out of the business by partners during the year. The drawings can be in cash or kind. it is debited to the current account.
Bank charges
Direct debit
Standing order
Credit transfer
Correct answer is C
Standing order is an instruction given by the account holder to the bank to make regular payment on his behalf. The bank will make the payment and debit the bank statement but no entry in the cash book.
Manufacturing account is prepared to ascertain
Profit on goods produced
Cost of goods produced
Cost of goods sold
Profit on goods sold
Correct answer is B
Manufacturing account is prepared to determine the cost of production or cost of goods manufactured during the financial year.
Dual aspect concept
Realization concept
Materiality concept
Business entity concept
Correct answer is C
Materiality is a principle which states that only items of material values are recorded. For example, the cost of a stapler should not be capitalized but expensed.
Provision for doubtful debts is made in conformity with
Business entity concept
Money measurement concept
Prudence concept
Materiality concept
Correct answer is C
Prudence also known as conservatism. The principles states that the accountant should not be anticipate income and will normally take figure that will understate rather than overstate the profit.