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Capital Reduction Account Overview

Capital Reduction Account Overview

Assessment

Flashcard

Business

University

Practice Problem

Hard

Created by

CA Dr. Reena Desai

Used 2+ times

FREE Resource

Student preview

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14 questions

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1.

FLASHCARD QUESTION

Front

What type of account is the Capital Reduction Account?

Back

It is a nominal account.

2.

FLASHCARD QUESTION

Front

Is the Capital Reduction Account a temporary or permanent account?

Back

It is a temporary account.

3.

FLASHCARD QUESTION

Front

What is credited to the Capital Reduction Account?

Back

All profits and gains.

4.

FLASHCARD QUESTION

Front

What is debited to the Capital Reduction Account?

Back

All losses and expenses.

5.

FLASHCARD QUESTION

Front

What happens to the Capital Reduction Account if an asset increases?

Back

Capital Reduction is debited.

6.

FLASHCARD QUESTION

Front

What happens to the Capital Reduction Account if an asset decreases?

Back

Capital Reduction Account is credited.

7.

FLASHCARD QUESTION

Front

What happens to the Capital Reduction Account if actual liability increases?

Back

It is debited.

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