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Basics of Accounting Bit Bank

1.

The person who sends the goods to be sold on consignment is known as ---------. (Consignor)

2.

The person to whom goods are sent to be sold on consignment is known

as ------------. (Consignee)

3.

The relationship between the consignor and consignee is of ---------------.

(Principal and Agent)

4.

Risk of goods remains with the -----------------. (Consignor)

5.

The profit or loss on consignment belongs with the ------------.

(Consignor)

6.

An account sale is a statement sent by the -------------------. (Consignee to

the Consignor)

7.

A Performa invoice is sent by the------------. (Consignor to the

Consignee)

8.

------------------- is an additional commission paid by the consignor to

consignee for bearing the loss on account of bad debt arising due to credit
sale. If such commission is offered the consignee will bear the bad debt.
(Del-credere Commission)

9.

Consignment account is a --------------------. (Nominal Account)

10.

Goods sent on consignment are transferred to ---------. (Trading

Account)

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11.

Closing stock of consignment includes promotional share of ---------------.

(All direct expenses)

12.

Joint venture is a -------------------- between two or more persons.

(Temporary Partnership)

13.

Going concern assumption is not applicable in case of -----------. (Joint

venture)

14.

----------------- cant be a co-venturer as he is incompetent to contract. (A

minor)

15.

There is no specific Act for ---------------. (Joint venture)

16.

Joint bank account is prepared when separate set of books are maintained
for ------------------ joint venture transaction. (Joint Venture)

17.

In Memorandum Joint Venture Account Method, each co-venture records

only those transactions ------------------. (Which are effected by him
only)

18.

There is no restriction for maximum number of co-venturer in case of ----------. (Joint venture)

19.

When a transaction is recorded in contravention of account principles it

indicates ---------------------. (Error of principle)

20.

--------------- is not an account, it is a statement; it is prepared on a

particular date. (Trial Balance)

21.

Any difference in trial balance is adjusted through -----------------; this

account may either have debit balance or credit balance. (Suspense
Account)

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22.

Common point between the consignment and sale is -----------. (The

stock outflow)

23.

The securities premium account appears under the ----------------. (Head

Reserve & Surplus)

24.

Capital Reserves are created out of --------------. (Capital profits)

25.

Depreciation is related to ------------. (All Fixed Tangible Assets)

26.

Depreciation accounting is ----------------. (A process of allocation of

the cost of fixed asset)

27.

Depreciation is a ------------------. (Non cash operating expenses)

28.

------------------ arises when a transaction is completely or partly omitted.

(Error of Omission)

29.

---------------------- arises due to wrong recording, wrong casting, wrong

posting, wrong balancing etc. (Error of Commission)

30.

----------------------- arises when the transaction is recorded ignoring the

principles of Accounting. (Error of Principles)

31.

-------------------- will not reveal error of principle, error of complete

omission, compensating errors. (The trail balance)

32.

--------------------- will reveal posting to wrong account on correct side

with wrong amount. (A trail balance)
Ramesh Babu Nemani,
Lecturer in Commerce, Hyderabad.

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