Q2 when is a capital account debited ans capital

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Q.2. When is a Capital Account debited ? Ans. Capital Account is debited when the proprietor makes a drawings with the amount of loss. Q.3. When is a Capital Account is credited ? Ans. Capital Account is credited when the proprietor introduces further capital with the amount of profit. Q.4. What is an Asset Account ? Ans. Asset Account is the account which relates to tangible or intangible asset. Q.5. What is the rule for an Asset Account ?
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34 Address: Plot No 420, Behind Shopprix Mall, Vaishali Sector 5, Ghaziabad 201010 M: 9999907099, 9818932244 O: 0120-4130999 Website: , Ans. Rule for an asset account is ‘Increases in assets are debits and decreases credit’. Q.6. What is a Liability Account ? Ans. Liability Account is an account which shows the amounts payable by the enterprise. Q.7. What is the rule for Liability Account ? Ans. Rule for Liability Account is ‘Increases are credits and decreases are debits.’ Q.8. What are the two sides of an Account called ? Ans. The two sides of an account are Debit and Credit. Q.9. What is the objective of preparing an Account ? Ans. The objectives of preparing an account is to summarise all transactions relating to a particular head in one account. Balance of all the accounts leads to preparation of Trial Balance. Q.10. What is the rule for Expenses Account ? Ans. The rule for Expenses Account is ‘Increase in expenses are debits and decreases are credits’. Q.11. What is the rule for Revenue or Income Account ? Ans. The rule for Revenue or Income Account is ‘Increases in revenue or income is credit and decreases are debits’. Q.12. Give two examples of Liability Account. Ans. Two examples of Liability Account are:
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35 Address: Plot No 420, Behind Shopprix Mall, Vaishali Sector 5, Ghaziabad 201010 M: 9999907099, 9818932244 O: 0120-4130999 Website: , (i) Capital Account and (ii) Creditor’s Account. Q.13. Give two examples of Asset Account. Ans. Two examples of Asset Account are: (i) Land Account and (ii) Computer’s Account. Q.14. Give two examples of Expense Account. Ans. (i) Salary Account and (ii) Commission Account. Q.15. What does a debit in an Asset Accoount signify ? Ans. A debit in an Asset Account means further assets purchased by the firm. Q.16. What does a credit in an Asset Account signify ? Ans. A credit is an Asset Account means the assets sold or discarded by the firm. Q.17. What does a debit in an Expense Account signify ? Ans. A debit in an Expense Account means the amount of expense incurred by the firm under that head of account. Q.18. What does a credit in an Income Account signify ? Ans. A credit in an Income Account means the amount of income earned by the firm under that head of account. Q.19. What does a credit balance in a Capital Account signify ?
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36 Address: Plot No 420, Behind Shopprix Mall, Vaishali Sector 5, Ghaziabad 201010 M: 9999907099, 9818932244 O: 0120-4130999 Website: , Ans. A credit balance in a Capital Account signifies the amount invested by the proprietor as on date.
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