1391. If the profit is 25% of the cost price then it is :

A. 25 % of the sale price
B. 33 % of the sale price
C. 20 % of the sale price *
D. 26 % of the sale price

1392. Interest on capital is :

A. Expenditure for the business
B. Gain for the business
C. Income outstanding for the business
D. Expense for the business *

1393. Interest on drawings is :

A. Expenditure of the business
B. Expense for the business
C. Gain for the business *
D. Loss for the business

1394. Trade discount allowed on the sales appearing in the trial balance , is shown in the final accounts :

A. On the trading account’s debit side
B. One the debit side of the profit and loss account
C. One credit side of the profit and loss account
D. By way of deduction from the sales in the trading account *

1395. Items donated for charity ought to be credited to:

A. Purchase account *
B. Charity account
C. Sales account
D. Drawing account

1396. Income tax paid by a sole trader is shown :

A. On the trading account’s debit side;
B. On the profit and loss account’s debit side;
C. On the profit and loss account’s credit side
D. Through a deduction from the balance sheet’s capital *

1397. The proprietor’s withdrawal of goods from the business should be credited:

A. Drawing account
B. Purchase account *
C. Capial account
D. Opening stock account

1398. The loss on sale of old machinery is debited to :

A. Profit and loss account *
B. Machinery account
C. Depreciation account
D. Sales account

1399. Wages paid on the erection of a new machinery should be debited to :

A. Wages account
B. Cash account
C. Machinery account *
D. None of the above

1400. The income statement has normally :

A. One part
B. Two parts *
C. Three parts
D. Four parts