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Rules of Debit & Credit

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

The rule for recoding the transaction for Capital account is

a)

Debit what comes in, Credit what goes out

b)

Debit the receiver, Credit the giver

c)

Debit all expenses & losses, Credit all revenues & gains

2.

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:

a)

Debit balance

b)

Credit balance

c)

No balance

3.

Assertion (A) - Increase in expenses are debited

Reason (R) - Expenses lead to a decrease in capital

a)

Both A and R are correct and R is the correct explanation of A

b)

Both A & R are correct but R is not a correct explanation of A

c)

A is correct but R is incorrect

d)

Both A & R are incorrect

4.

CD Ltd. took a loan of $. 5 million for expansion of business. For recording this transaction:

a)

Cash a/c will be debited and Bank a/c will be credited

b)

Bank Loan a/c will be debited and Capital a/c credited

c)

Bank loan a/c will be credited & Bank a/c will be debited

d)

Bank loan a/c will be credited & Bank a/c will be credited

5.

Modern Furnishing Ltd. bought 5 tables and 20 chairs for their office and paid by cheque. To record this transaction:

a)

Bank a/c will be debited and stock a/c will be credited

b)

Bank a/c will be debited and Furniture a/c will be credited

c)

Bank a/c will be credited & Purchases a/c will be debited

d)

Bank a/c will be credited & Furniture a/c will be debited

6.

Which of the following account has a credit balance

a)

Carriage inward

b)

Carriage outward

c)

Discount received

d)

Discount allowed

7.

An increase in which of the following account it will be recorded on the debit side?

a)

Building account

b)

Capital account

c)

Bills payable account

d)

Rent received account

8.

Sale of goods to Elexa for cash is debited to

a)

Elexa account

b)

Cash account

c)

Sales account

d)

None of these

9.

Debit the receiver, credit the (a)   Is the rule for personal account

10.

Debit what comes in and credit what goes out is the rule of (a)   account.

11.

Receivables account is a ........

a)

Revenue account

b)

Capital account

c)

Liability account

d)

None of these

12.

An decrease in which of the following account will be recorded on the the debit side?

a)

Purchases account

b)

Bills receivable account

c)

Patents account

d)

Bills payable account

13.

When cash increases we

a)

Credit

b)

Debit

c)

None of the above

14.

When liabilities increase we debit

a)

True

b)

False

15.

Bought motor van by cash $7,500. Identify the two accounts in

a)

Purchases and Cash

b)

Motor van and Cash

16.

When expenses are increased we credit

a)

True

b)

False

17.

Applying the accounting equation determine the Capital.

Assets = $150,000

Liabilities= $75,000

a)

$70,000

b)

$75,000

c)

$85,000

d)

$65,000

18.

Applying the Accounting Equation. Determine assets.


Liabilities= $80,000

Capital/Owners' Equity=$95,000

a)

$165,000

b)

$90,000

c)

$175,000

19.

When accounts payable increases you credit.

a)

True

b)

False

20.

When accounts receivable increases we debit

a)

True

b)

False