1121. When proprietor brings capital in the business it is recorded in :

A. Capital A/C *
B. Proprietor A/C
C. Creditors A/C
D. Debtors A/C

1122. Any cash of goods taken away by the proprietor for his personal use are call his :

A. Capital
B. Drawings *
C. Income
D. Expense

1123. When goods are given away as charity or free samples , the purchases A/C should be :

A. Debited
B. Credited *
C. Recorded in balance sheet
D. None of the above

1124. When goods are lost by fire or by theft or an accident” Purchases A/C should be :

A. Credited *
B. Debited
C. Both of these
D. None of the above

1125. Debit signifies :

A. Increase in asset account and decrease in liabilities *
B. Increase in liabilities accounts and decrease in expense or account
C. Increase in asset account and decrease in expense account
D. Increase in income account and decrease in expense account

1126. Credit signifies :

A. Increase in assets accounts and expense accounts
B. Increase in liabilities accounts and income accounts *
C. Increase in expense accounts and liabilities accounts
D. Increase in assets accounts and expenses accounts

1127. Left side of asset accounts is for :

A. Recording decreases
B. Recording increases*
C. Recording the corrections of error
D. None of the above

1128. Right side of an asset account is for :

A. Recording decreases *
B. Recording increases
C. Recording decreases and increases
D. None of the above

1129. A business transaction affects :

A. At least one account
B. At least two accounts *
C. Maximum of three accounts
D. None of the above

1130. Loss of goods by fire should be credited to :

A. Purchases Account *
B. Sales Account
C. Loss by goods by fire Account
D. Capital Account