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WorksheetsRules of Debit & Credit
Total questions: 20
Worksheet time: 10mins
The rule for recoding the transaction for Capital account is
Debit what comes in, Credit what goes out
Debit the receiver, Credit the giver
Debit all expenses & losses, Credit all revenues & gains
While balancing Bank account, it was observed that the total of Debit side was Rs. 2,50,000 and that of credit side was Rs.1,70,000. In this case, the balance will be referred to as:
Debit balance
Credit balance
No balance
Assertion (A) - Increase in expenses are debited
Reason (R) - Expenses lead to a decrease in capital
Both A and R are correct and R is the correct explanation of A
Both A & R are correct but R is not a correct explanation of A
A is correct but R is incorrect
Both A & R are incorrect
CD Ltd. took a loan of $. 5 million for expansion of business. For recording this transaction:
Cash a/c will be debited and Bank a/c will be credited
Bank Loan a/c will be debited and Capital a/c credited
Bank loan a/c will be credited & Bank a/c will be debited
Bank loan a/c will be credited & Bank a/c will be credited
Modern Furnishing Ltd. bought 5 tables and 20 chairs for their office and paid by cheque. To record this transaction:
Bank a/c will be debited and stock a/c will be credited
Bank a/c will be debited and Furniture a/c will be credited
Bank a/c will be credited & Purchases a/c will be debited
Bank a/c will be credited & Furniture a/c will be debited
Which of the following account has a credit balance
Carriage inward
Carriage outward
Discount received
Discount allowed
An increase in which of the following account it will be recorded on the debit side?
Building account
Capital account
Bills payable account
Rent received account
Sale of goods to Elexa for cash is debited to
Elexa account
Cash account
Sales account
None of these
Debit the receiver, credit the (a) Is the rule for personal account
Debit what comes in and credit what goes out is the rule of (a) account.
Receivables account is a ........
Revenue account
Capital account
Liability account
None of these
An decrease in which of the following account will be recorded on the the debit side?
Purchases account
Bills receivable account
Patents account
Bills payable account
When cash increases we
Credit
Debit
None of the above
When liabilities increase we debit
True
False
Bought motor van by cash $7,500. Identify the two accounts in
Purchases and Cash
Motor van and Cash
When expenses are increased we credit
True
False
Applying the accounting equation determine the Capital.
Assets = $150,000
Liabilities= $75,000
$70,000
$75,000
$85,000
$65,000
Applying the Accounting Equation. Determine assets.
Liabilities= $80,000
Capital/Owners' Equity=$95,000
$165,000
$90,000
$175,000
When accounts payable increases you credit.
True
False
When accounts receivable increases we debit
True
False
