Question

Q.3 Fill in the blanks: -
1. Capital is reduced by______
2. Rent paid will________
capital
3. Journal is a book of ______
4. Contra entries are made in______
book
5. Credit balance of nominal account represents_______​

Answer 1

1. Capital is reduced by Drawings.

2. Rent paid will decrease

capital

3. Journal is a book of financial transaction

4. Contra entries are made in cash

book

5. Credit balance of nominal account represents gains/profits.