Tag Archives: Account payable

Objective Type Questions for Principle of Commerce I.Com Part 1 (j)

Bill of Exchange Important Question 7 for I.Com Part 1 Adil sold goods to Karim for Rs. 10,000 and drew a bill upon him for 3 months. Karim returned the bill to Adil after accepting it and Adil discounted the bill with his bank at 9% p.a. On the due date the bill was dishonored. Required: Pass entries in the …

Bill of Exchange Important Question 6 for I.Com Part 1 Karim sold goods to Bashir for Rs. 5,000 and drew a bill upon him for three months for the amount. Bashir accepted and returned it to Karim, who discounted the bill with his banker at 6% per annum. On the due date bill was honored. Solution KARIM’S JOURNAL Bashir account                                   …

Define bills of exchange A written order to pay a sum of money on a given date to the drawer or to a named payee; a promissory note Or A written, unconditional order by one party (the drawer) to another (the drawee) to pay a certain sum, either immediately (a sight bill) or on a fixed date (a term bill), …

What is Current Account? That part of the balance of payments recording a nation’s exports and imports of goods and services and transfer payments. Or The difference between a nation’s total exports of goods, services and transfers, and its total imports of them. Current account balance calculations exclude transactions in financial assets and liabilities. Source: http://www.investopedia.com/terms/c/currentaccount.asp

What is an account? One definition of an account is a record in the general ledger that is used to collect and store debit and credit amounts. For example, a company will have a Cash account in which every transaction involving cash is recorded. If the company sells merchandise for cash, the Cash account will be debited and the Sales …

Objective Type Questions for Principle of Accounting I.Com Part 1 Test 4