A credit balance in bank account means that the person in whose account this belongs to is under an obligation to pay the bank back the entitlement of such balances. This money has been owned to the account holder by the bank and must be repaid i.e. it is a liability.

A cash memo is prepared when goods are sold or purchased for cash, i.e. cash receipts and payments. 

A petty cash voucher is a document that is issued when a payment is made from a petty cash fund. A petty cash fund is created to disburse small amount of expenses that take place on a daily basis.

A petty cash voucher is a document that is issued when a payment is made from a petty cash fund. A petty cash fund is created to disburse small amount of expenses that take place on a daily basis. Petty cash vouchers should be serially numbered for the convenience of auditing and to help in having a easy check on the transactions. 

A petty cash voucher/cash voucher is a document that is issued when a payment is made from a petty cash fund. A petty cash fund is created to disburse small amount of expenses that take place on a daily basis.

A cash memo/ petty cash memo is a document that is used when money is being withdrawn from the petty cash fund. A petty cash fund is created to meet all the petty/small transactions that take place in the organisation on daily basis. A cashier can check the cash memo to reconcile all the transactions as they are the record to all the transactions of petty cash fund. 

True. Accounting voucher is a document that acts as a proof of a transaction. There is no set format of accounting voucher. There are different types of voucher internal or external, cash voucher, petty cash voucher, etc. 

A journal voucher is a very helpful document in auditing as it is a voucher that consists of all the details of transactions like the date of transactions, amount, etc. A journal voucher is prepared for every transaction. They are serially numbered for convenience purpose so that journal can be prepared.  

False. Voucher is a document that acts as an evidence that the payment is made or that a particular transaction has occurred. Vouchers are made for every transactions, they are serially numbered and help to check the authenticity of a particular transaction.

A Journal voucher is a voucher that consists of all the details of transactions like the date of transactions, amount, etc. A journal voucher is prepared for every transaction. It is the basis for making a journal. They are serially numbered for convenience purpose so that journal can be prepared.  A journal voucher keeps a record of all the transactions hence helps in the recording or transactions and making of journal.

Cash vouchers are of two types viz. debit voucher and credit voucher. A debit voucher is prepared when cash payments are received whereas a credit voucher is prepared when cash payments are made. They are the documentary evidence for payment of cash or for receiving cash. 

True. Voucher is a document that acts as an evidence that the payment is made or that a particular transaction has occurred. Vouchers are made for every transactions, they are serially numbered and help to check the authenticity of a particular transaction.

Cash vouchers are of two types viz. debit voucher and credit voucher. A debit voucher is prepared when cash payments are received whereas a credit voucher is prepared when cash payments are made. They are the documentary evidence for payment of cash or for receiving cash.

False. An internal voucher is prepared by the organisation itself. They can be prepared for the organisation itself or in cases where no documentary evidence is given by the other party. Example:- Counter foils of pay in slip. An external voucher is a voucher that is prepared by the third parties. Example:- A voucher sent by a shopkeeper to the buyer for purchase of goods is an external voucher. 

An external voucher is a voucher that is prepared by the third parties. They are like bills or just like any other voucher. Example:- A voucher sent by a shopkeeper to the buyer for purchase of goods is an external voucher. 

Loss of goods by fire, it is just possible that some goods may catch fire and result in loss to the business. This is definitely loss, so "Loss of goods by fire" account will be debited. Such goods have been destroyed, not sold, so their  valuation will be made at cost price. So, purchases account will be credited. The journal entry for this transaction will be made as under:

All incidental charges incurred for installation of assets are charged to the cost of that asset. Wages paid on erection of machinery is a capital expenditure and will be debited to machinery account.

A debit balance increases the balance in an expense account and a credit balance decreases the balance. Loan account may have debit or credit balance i.e. when a business secures a loan it records it as an increases in the appropriate asset account and corresponding increases in an account called loan. 

A joint venture is an entity which is created by two or more parties to accomplish a particular project. For this a joint venture account is separately maintained. If any amount is spent for joint venture, this will be debited to joint venture account.

An accounts assigned normal balance is on the side where increases go because the increases in any account are usually greater than the decreases. Therefore, asset, expense, and owner's drawing accounts normally have debit balances. Liabilities, revenue, and owner's capital accounts normally have credit balances.

Any documentary evidence supporting the entries recorded in the books of accounts, establishing the arithmetic accuracy of the transaction, may also be referred to as a voucher for example, a bill, invoice, receipt, salary and wages sheet.

A cash memo is prepared by the seller when the goods are sold for cash. The cash memo is similar to an invoice, only difference being invoice is issued for credit sale and cash memo for cash sales.

The cash memo contains the details of the goods and services sold, price of items sold, name and address of the buyer and also the date of purchase. The contents of cash memo and invoice are the same. 

A credit is issued by the shopkeeper to the buyer who returns the goods. It is issued to cancel the excess debit or wrong debit or to increase the credit which earlier given, was less. 

A credit note is issued by the vendor to the buyer when the goods are returned by the buyer to the vendor. So, with the help of credit notes the vendor/seller can record all the entries of sales return because a credit note would be issued when goods are returned. 

A debit note is note which is issued when less debit is given. It signifies the debt paying liability of a person. Debit note is issued to give additional debit and to cancel and extra credit.

A credit note is prepared for crediting the account of the counter part. A credit note is prepared when less credit is given or extra debit is given. It is issued by the supplier when the goods are returned by the buyer. It gives additional credit or cancels the excess credit by issuing a debit note.

False. A debit or credit note is used to rectify the extra short debit or credit is given. They have an advantage of not editing the books of original entry. A journal entries are passed with the help of journal voucher.

True. Debit and credit notes are issued to correct the issues of short debit or short credit given earlier. They give an advantage of not editing the books of original entry and still altering the accounts by either debiting or crediting the accounts so needed respectively. 

The purchaser or buyer would always issue a debit note to the vendor whenever he would return goods to the vendor. Hence, whenever there will be purchase returns the buyer would issue a debit note which will help to record the transactions for the same.

Debit and credit notes act as the authenticate proof for the goods returned by the purchasers or sellers. Debit and credit notes are issued to correct the issues of short debit or short credit given earlier. They give an advantage of not editing the books of original entry and still altering the accounts by either debiting or crediting the accounts so needed respectively. 

False.  Debit and credit notes are issued to correct the issues of short debit or short credit given earlier. They give an advantage of not editing the books of original entry and still altering the accounts by either debiting or crediting the accounts so needed respectively. 

Cash sales, accounts receivables and rental receipts all are known as cash receipts. A cash receipt is a printed statement of the amount of cash received in a cash sale transaction.

False. A debit and a credit note will always have the amount mentioned in words as well as figures. Amount is written in words as well as figures for the clarity of the person reading the amount and for confirmation.

According to the net income approach the cost of equity capital and the cost of debt capital remain unchanged when degree of leverage varies.

A debit note is a note which is issued when goods purchased are returned by the purchaser to the vendor or in other words when goods are returned by the buyer to the seller. A debit note signifies that the liability of the buyer has been reduced for payment or expense. Whereas a credit note is a note which is issued by the vendor or seller to the purchaser in respect of return of goods. 

Receipt and Payments account is a summary of all cash or bank receipts and payments over a certain period with a cash bank balance at the beginning as well as at the end of the period.

A debit note is a note which is issued when goods purchased are returned by the purchaser to the vendor or in other words when goods are returned by the buyer to the seller. A debit note signifies that the liability of the buyer has been reduced for payment or expense. Whereas a credit note is a note which is issued by the vendor or seller to the purchaser in respect of return of goods. 

A debit note is a note which is issued when goods purchased are returned by the purchaser to the vendor or in other words when goods are returned by the buyer to the seller. A debit note signifies that the liability of the buyer has been reduced for payment or expense. Whereas a credit note is a note which is issued by the vendor or seller to the purchaser in respect of return of goods. 

Receipt is a document that states that a payment against a particular sale of goods or services has been received. It acts as a proof of payment. A receipt contains the details about the person making the payment, amount of the payment made, date of payment, etc.

Option C (B and C). A credit note is issue when the  customer account is over debited by the buyer. The buyer issues  a credit note and hence the over debit is reduced by issuing a credit note. Over debit may occur when buyer returns the goods or when unit price is overcharged or overbilled. 

Cash Memo. A cash memo is documentary evidence of the payment made. The content of a cash memo and invoice are the same. An invoice is document that is given by the buyer to the purchaser when goods are purchased on credit.