Question

A check is received from a customer for goods supplied for cash. Which of assets liabilities equity is not part of the transaction?

Select one:

a. Liabilities

b. Assets

c. Equity

Rent for the factory premises are paid in cash. Which of assets liabilities equity is not part of the transaction?

Select one:

a. Liabilities

b. Equity

c. Assets

The owner withdraws cash for personal use. Which of assets liabilities equity is not part of the transaction?

Select one:

a. Equity

b. Liabilities

c. Assets

A sale is made to a customer on account terms. Which of assets liabilities equity is not part of the transaction?

Select one:

a. Liabilities

b. Equity

c. Assets

An invoice for services for the period is received from a supplier. Which of assets liabilities equity is not part of the transaction?

Select one:

a. Equity

b. Assets

c. Liabilities

Depreciation for the period is recorded in the accounting records. Which of assets liabilities equity is not part of the transaction?

Select one:

a. Liabilities

b. Equity

c. Assets

Answer 1

Answer :-

(1)

Both equity and liability does not form part of the transaction.

Entry for goods sold :- Account receivable A/c dr to sales a/c.

Entry for cheque received :- Bank A/c dr to account receivable a/c.

In above entries only asset accounts are affected.

(2)

Equity does not form part of transaction.

Factor rent is an expense. If not paid on or before due date it becomes liability.

Rent A/c Dr to cash account.

If not paid on due date then entry shall be factory rent payable A/c dr to cash a/c.

Both liability and asset account affected.

(3) owner withdraw cash:-

Drawings (Equity) A/c Dr to cash account.

Both equity and assets accounts are affected.

Hence, liability account has no space.

(4)sale is made to customer on account terms:-

Account receivable A/c to sales A/c.

Here equity has no scope.

(5) expenditure A/c dr to accounts payable.

Here only liability account is affected and equity and asset account remain intact.

(6) depreciation a/c dr to asset a/c.

Here only asset account is affected. Both liability and equity account remain intact.

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