Commerce Exam > Commerce Questions > The miscellaneous expenses account is likely ...
Start Learning for Free
The miscellaneous expenses account is likely to have :
- a)Only debit entries
- b)Only credit entries
- c)Both of the above
- d)Initially only debit entries and subsequently credit entries
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
The miscellaneous expenses account is likely to have :a)Only debit ent...
Miscellaneous expenses are nominal in nature and therefore the rules of nominal account apply to it. The rule is
Debit all expenses and losses
Credit all incomes and gains
Since, the expenses are to be debited as per the rule hence, it is likely to have debit entries generally.
Free Test
FREE
| Start Free Test |
Community Answer
The miscellaneous expenses account is likely to have :a)Only debit ent...
**Explanation:**
The miscellaneous expenses account is an account used to record various small and irregular expenses that do not fit into any specific category. These expenses could include items such as office supplies, postage, small repairs, and other miscellaneous expenses.
The correct answer to this question is option 'A' - only debit entries. This means that the miscellaneous expenses account will only have debit entries recorded in it.
**Reasoning:**
1. **Nature of expenses**: Miscellaneous expenses are typically small and irregular in nature. They do not represent a regular payment or income stream. Therefore, they are usually recorded as expenses or debits in the accounting system.
2. **Recording principle**: According to the rules of accounting, expenses are recorded with debit entries. Debits increase expense accounts, such as the miscellaneous expenses account.
3. **Normal balance**: The normal balance for an expense account is a debit balance. This means that the account will have a positive balance when there are more debits than credits recorded in it.
4. **Accounting equation**: The accounting equation states that assets = liabilities + equity. Since expenses decrease equity, they are recorded as debits to the relevant expense accounts.
Given these points, it can be concluded that the miscellaneous expenses account will only have debit entries. This is because miscellaneous expenses are recorded as expenses, and expenses are recorded with debit entries.
The miscellaneous expenses account is an account used to record various small and irregular expenses that do not fit into any specific category. These expenses could include items such as office supplies, postage, small repairs, and other miscellaneous expenses.
The correct answer to this question is option 'A' - only debit entries. This means that the miscellaneous expenses account will only have debit entries recorded in it.
**Reasoning:**
1. **Nature of expenses**: Miscellaneous expenses are typically small and irregular in nature. They do not represent a regular payment or income stream. Therefore, they are usually recorded as expenses or debits in the accounting system.
2. **Recording principle**: According to the rules of accounting, expenses are recorded with debit entries. Debits increase expense accounts, such as the miscellaneous expenses account.
3. **Normal balance**: The normal balance for an expense account is a debit balance. This means that the account will have a positive balance when there are more debits than credits recorded in it.
4. **Accounting equation**: The accounting equation states that assets = liabilities + equity. Since expenses decrease equity, they are recorded as debits to the relevant expense accounts.
Given these points, it can be concluded that the miscellaneous expenses account will only have debit entries. This is because miscellaneous expenses are recorded as expenses, and expenses are recorded with debit entries.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer?
Question Description
The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer?.
The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer?.
Solutions for The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The miscellaneous expenses account is likely to have :a)Only debit entriesb)Only credit entriesc)Both of the aboved)Initially only debit entries and subsequently credit entriesCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup