📘 DEBIT & CREDIT RULES – 100 MCQs
Q1. Debit is recorded on:
A. Left side
B. Right side
C. Both
D. None
Q2. (T/F) Credit is recorded on the right side.
Q3. Rule of personal account:
A. Debit what comes in
B. Debit the receiver
C. Debit expenses
D. None
Q4. (Fill) Debit the receiver, credit the ______.
Q5. Rule of real account:
A. Debit receiver
B. Debit what comes in
C. Debit expenses
D. None
Q6. (T/F) Real account rule is debit what comes in.
Q7. Nominal account rule:
A. Debit expenses
B. Debit receiver
C. Debit what comes in
D. None
Q8. (Fill) Credit all ______.
Q9. Cash received:
A. Debit cash
B. Credit cash
C. Both
D. None
Q10. Cash paid:
A. Debit cash
B. Credit cash
C. None
D. Both
Q11. (T/F) Asset increase is debited.
Q12. Liability increase is:
A. Debit
B. Credit
C. None
D. Both
Q13. Expense account is:
A. Credited
B. Debited
C. Ignored
D. None
Q14. (Fill) Income is ______.
Q15. Capital increase:
A. Debit
B. Credit
C. None
D. Both
Q16. Drawings:
A. Debit
B. Credit
C. None
D. Both
Q17. (T/F) Income is credited.
Q18. Asset decrease:
A. Debit
B. Credit
C. None
D. Both
Q19. Liability decrease:
A. Debit
B. Credit
C. None
D. Both
Q20. (Fill) Debit all expenses and ______.
Q21. Purchase of goods:
A. Debit purchase
B. Credit purchase
C. None
D. Both
Q22. (T/F) Sales are credited.
Q23. Rent paid:
A. Debit
B. Credit
C. None
D. Both
Q24. Commission received:
A. Debit
B. Credit
C. None
D. Both
Q25. Which is debited?
A. Income
B. Expense
C. Liability
D. Capital
Q26. Credit rule for nominal account:
A. Credit income
B. Credit expense
C. Credit asset
D. None
Q27. (T/F) Loss is debited.
Q28. Prepaid expense:
A. Debit asset
B. Credit expense
C. Both
D. None
Q29. (Fill) Debit what ______ in.
Q30. Outstanding expense:
A. Debit expense
B. Credit liability
C. Both
D. None
Q31. Accrued income:
A. Debit asset
B. Credit income
C. Both
D. None
Q32. (T/F) Income received in advance is credited.
Q33. Goods withdrawn:
A. Debit drawings
B. Credit purchase
C. Both
D. None
Q34. Bad debts:
A. Debit expense
B. Credit debtor
C. Both
D. None
Q35. (Fill) Credit what ______ out.
Q36. Which is credited?
A. Asset increase
B. Expense
C. Income
D. Loss
Q37. Loan taken:
A. Debit cash
B. Credit loan
C. Both
D. None
Q38. (T/F) Capital is credited when introduced.
Q39. Furniture purchased for cash:
A. Debit furniture
B. Credit cash
C. Both
D. None
Q40. (Fill) Debit all ______ and losses.
Q41. Purchase return:
A. Debit creditor
B. Credit purchase return
C. Both
D. None
Q42. (T/F) Sales return is debited.
Q43. Discount allowed:
A. Debit expense
B. Credit debtor
C. Both
D. None
Q44. Discount received:
A. Debit creditor
B. Credit income
C. Both
D. None
Q45. (Fill) Credit all ______ and gains.
Q46. Depreciation:
A. Debit expense
B. Credit asset
C. Both
D. None
Q47. Which is debited?
A. Capital
B. Income
C. Expense
D. Liability
Q48. (T/F) Liability increase is credited.
Q49. Advance income:
A. Debit cash
B. Credit liability
C. Both
D. None
Q50. Drawings reduce:
A. Capital
B. Asset
C. Both
D. None
Q51. Wrongly debiting income violates:
A. Nominal rule
B. Personal rule
C. Real rule
D. None
Q52. (T/F) Debit and credit depend on account type.
Q53. Goods lost by fire:
A. Debit loss
B. Credit purchase
C. Both
D. None
Q54. Provision for doubtful debts:
A. Debit expense
B. Credit provision
C. Both
D. None
Q55. (Fill) Debit side shows ______.
Q56. Increase in asset & decrease in liability:
A. Debit both
B. Credit both
C. Debit & credit
D. None
Q57. If cash is received from debtor:
A. Debit cash
B. Credit debtor
C. Both
D. None
Q58. (T/F) Nominal accounts are closed at year end.
Q59. Credit sale:
A. Debit debtor
B. Credit sales
C. Both
D. None
Q60. Purchase of machinery on credit:
A. Debit machinery
B. Credit creditor
C. Both
D. None
Q61. Accrued expense:
A. Debit expense
B. Credit liability
C. Both
D. None
Q62. (T/F) Decrease in capital is debited.
Q63. Income earned but not received:
A. Debit asset
B. Credit income
C. Both
D. None
Q64. (Fill) Debit = ______.
Q65. Capital withdrawn:
A. Debit drawings
B. Credit cash
C. Both
D. None
Q66. Goods purchased for personal use of proprietor:
A. Purchase Dr
B. Drawings Dr
C. Cash Cr
D. Both B & C
Q67. (T/F) Drawings account is debited when owner withdraws goods.
Q68. Sale of asset at profit:
A. Debit asset
B. Credit profit
C. Debit cash
D. Both B & C
Q69. Sale of asset at loss:
A. Debit loss
B. Credit asset
C. Both
D. None
Q70. (Fill) Loss is always ______.
Q71. If expense is unpaid at year end:
A. Debit expense
B. Credit liability
C. Both
D. None
Q72. Income received but not earned:
A. Debit income
B. Credit liability
C. Debit asset
D. None
Q73. (T/F) Income received in advance is a liability and credited.
Q74. If debtor becomes insolvent:
A. Debit bad debts
B. Credit debtor
C. Both
D. None
Q75. Recovery of bad debts:
A. Debit cash
B. Credit bad debts recovered
C. Both
D. None
Q76. (Fill) Bad debts are treated as ______.
Q77. If asset is lost:
A. Debit loss
B. Credit asset
C. Both
D. None
Q78. Depreciation reduces:
A. Asset
B. Liability
C. Capital
D. Income
Q79. (T/F) Depreciation is credited directly to asset account.
Q80. Provision created for expense:
A. Debit expense
B. Credit provision
C. Both
D. None
Q81. Interest on capital:
A. Debit expense
B. Credit capital
C. Both
D. None
Q82. (Fill) Interest on drawings is ______.
Q83. Commission due but not received:
A. Debit asset
B. Credit income
C. Both
D. None
Q84. Goods given as charity:
A. Debit charity
B. Credit purchase
C. Both
D. None
Q85. (T/F) Charity is treated as expense.
Q86. Purchase of goods on credit wrongly recorded as cash:
A. Principle error
B. Commission error
C. Omission
D. None
Q87. Which is credited in case of income?
A. Cash
B. Income account
C. Asset
D. Expense
Q88. (Fill) Capital is ______ when introduced.
Q89. If liability is paid:
A. Debit liability
B. Credit cash
C. Both
D. None
Q90. (T/F) Decrease in liability is debited.
Q91. Rent outstanding at end:
A. Debit rent
B. Credit liability
C. Both
D. None
Q92. Insurance prepaid:
A. Debit asset
B. Credit expense
C. Both
D. None
Q93. (Fill) Debit all ______ and losses.
Q94. Which account is credited?
A. Expense
B. Loss
C. Income
D. Drawings
Q95. (T/F) Income decreases on debit.
Q96. Which is debited?
A. Capital increase
B. Liability increase
C. Expense increase
D. Income increase
Q97. If goods are returned to supplier:
A. Debit creditor
B. Credit purchase return
C. Both
D. None
Q98. (Fill) Credit what ______ out.
Q99. Capital reduction due to loss:
A. Debit capital
B. Credit loss
C. Both
D. None
Q100. Which is correct combination?
A. Asset ↑ = Debit
B. Liability ↑ = Debit
C. Income ↑ = Debit
D. Expense ↓ = Debit
📘 FINAL ANSWER KEY (1–100)
1–25:
1-A, 2-T, 3-B, 4-Giver, 5-B, 6-T, 7-A, 8-Incomes,
9-A, 10-B, 11-T, 12-B, 13-B, 14-Credited,
15-B, 16-A, 17-T, 18-B, 19-A, 20-Losses,
21-A, 22-T, 23-A, 24-B, 25-B
26–50:
26-A, 27-T, 28-C, 29-Comes, 30-C,
31-C, 32-T, 33-C, 34-C, 35-Goes,
36-C, 37-C, 38-T, 39-C, 40-Expenses,
41-C, 42-T, 43-C, 44-C, 45-Incomes,
46-C, 47-C, 48-T, 49-C, 50-A
51–100:
51-A, 52-T, 53-C, 54-C, 55-Entries,
56-C, 57-C, 58-T, 59-C, 60-C,
61-C, 62-T, 63-C, 64-Credit, 65-C
📘 ANSWER KEY (66–100)
66-D
67-T
68-D
69-C
70-Debited
71-C
72-B
73-T
74-C
75-C
76-Expense
77-C
78-A
79-F
80-C
81-C
82-Income
83-C
84-C
85-T
86-B
87-B
88-Credited
89-C
90-T
91-C
92-C
93-Expenses
94-C
95-T
96-C
97-C
98-Goes
99-A
100-A
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