Recording of Transactions

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Recording of Transactions - I Test 12

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Weekly Quiz Competition

Question 1
1 / -0

A bound book of account is __________.

A
Ledger

B
Journal

C
Subsidiary Book

D
Cash Book

Solution

The ledger is the principal book of accounting system. It contains different accounts where transactions relating to that account are recorded. A ledger is the collection of all the accounts, debited or credited, in the journal proper and various special journal.
It is very useful and is of utmost importance in the organisation.
The net result of all transactions in respect of a particular account om a given date can be ascertained only from the ledger.
Question 2
1 / -0

Left hand side of an account is called _______ side.

A
credit

B
debit

C
middle

D
centre

Solution

In double entry accounting, every transaction affects and is recorded in at least two accounts.
When recording each transaction, the total amount debited must be equal to the total amount credited.
In accounting, the terms debit and credit indicate whether the transactions are to be recorded on the left hand side or right hand side of the account.
Left hand side of an account is called as debit side and right hand side is known as credit side.
Question 3
1 / -0

Select the most appropriate alternative from those given below:
Capital is excess of assets over _________.

A
Goodwill

B
Liabilities

C
Investments

D
Drawings

Solution

Accounting Equation can be presented as:

Capital+Liabilities=Assets

Therefore

Capital = Assets- Liabilities

It is true that capital is excess over liabilities.
Question 4
1 / -0

________ is concerned with the recording process of accounting.

A
Ledger

B
Preparation of profit and loss a/c

C
Journalising

D
Balancing and ledger

Solution

The number and kinds of books of accounts kept by any business depends upon its particular need. But there are two major books which must invariably be maintained by every business i.e. journal and ledger. Every transaction is first recorded in the journal which is considered as subsidiary books of account. Journal merely helps the posting of entries in to ledger, that's why it is called as subsidiary books of account.
Question 5
1 / -0

The word 'Credit' is derived from Latin word ________ .

A
cradate

B
crude

C
credential

D
credere

Solution

Credit is the trust which allows one party to provide money or resources to another party where that second party does not reimburse the first party immediately, but instead promises either to repay or return those resources at a later date. The word credit is derived from Latin word credere which means "to trust, entrust, believe".
Question 6
1 / -0

_________ is concerned with the classification process of Accounting.

A
Ledger

B
Preparation of profit and loss a/c

C
Journalising

D
Balancing of leger

Solution

Once the business transactions are recorded in journal, this has to be posted in ledger. Posting of transaction in a ledger depends on the nature of transaction. Hence this is very much desired to have a proper classification of ledger. This may be classified in the form of personal ledger and impersonal ledger.
Question 7
1 / -0

Which side represent credit _____ .

A
Left

B
Right

C
Side having larger total

D
Side having shorter total

Solution

In accounting, a credit is an entry on the right side of a double-entry bookkeeping system that represents the reduction of a liability or revenue.
Question 8
1 / -0

In an account prepared under Double entry system ____ prefix suggest that the concerned account is credited.

A
to

B
by

C
balance cd

D
balance bd

Solution

Posting is a process of transferring debit and credit aspects of the entries appearing in the journal and other books of original entry to the and credit sides of the relevant accounts in the ledger. Posting are made using the word "To" and "By" as a prefix. For debit side entry "To" prefix is used and for credit side "By" prefix is used.
Question 9
1 / -0

When a liability is discharged _____ is debited.

A
creditor a/c

B
cash account

C
profit and loss a/c

D
miscellaneous expenses a/c

Solution

A creditor is an entity (person or institution) that extends credit by giving another entity permission to borrow money intended to be repaid in the future. Hence when the liability is cleared or discharged creditor account is debited.
Question 10
1 / -0

Book of original entries is also known as ______.

A
Invoice book

B
Journal

C
Debit/credit notebook

D
Ledger

Solution

Keeping the kind of books for recording the business transaction depends on the business need but there are two important books which are essentially to kept by each business i.e. journal and ledger. Any transaction which occurs in the business need to be first recorded in journal first. Hence all the original entries can be found from journal itself.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 12

Result

Recording of Transactions - I Test 12

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Rank

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SHARING IS CARING

Question 1

Ledger

Journal

Subsidiary Book

Cash Book

Solution

Question 2

credit

debit

middle

centre

Solution

Question 3

Goodwill

Liabilities

Investments

Drawings

Solution

Question 4

Ledger

Preparation of profit and loss a/c

Journalising

Balancing and ledger

Solution

Question 5

cradate

crude

credential

credere

Solution

Question 6

Ledger

Preparation of profit and loss a/c

Journalising

Balancing of leger

Solution

Question 7

Left

Right

Side having larger total

Side having shorter total

Solution

Question 8

to

by

balance cd

balance bd

Solution

Question 9

creditor a/c

cash account

profit and loss a/c

miscellaneous expenses a/c

Solution

Question 10

Invoice book

Journal

Debit/credit notebook

Ledger

Solution

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