Recording of Transactions

Result

Recording of Transactions - I Test 16

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Weekly Quiz Competition

Question 1
1 / -0

In Nominal A/c debit means _________.

A
What comes in

B
What goes out

C
Income

D
Expenses/losses

Solution

Golden rule for Nominal accounts says that:

Debit all the expenses and losses
Credit all the revenue and gains
Question 2
1 / -0

An entry made in the journal is called _______.

A
Journal entry

B
Diarizing

C
Recording

D
Narration

Solution

Every business transaction must first be recorded in journal. These are called journal entry. Hence all original entries are found in journal itself which is a subsidiary books.
Question 3
1 / -0

How many columns are in a journal?

A
4

B
5

C
6

D
3

Solution

Date Particulars Ledger Folio no Dr. Amount Cr. Amount
There are 5 columns in a journal:
Question 4
1 / -0

Book of Original entry is called _____.

A
a journal

B
memorandum A/c

C
kachha record

D
voucher

Solution

Every business transaction must first be recorded in journal. Hence all original entries are found in journal itself which is a subsidiary books. Subsidiary books of accounts are also called book of original entry as all the transactions are recorded originally or at the first instance in these books.
Question 5
1 / -0

When a entry involves two or more accounts it is called ________.

A
Simple entry

B
Double entry

C
Compound entry

D
Complex entry

Solution

When a transaction is involving more than two accounts, entry is called a compound entry.
Goods worth Rs.1000 is purchased on a discount of Rs.100 by paying cash of Rs.900 is an example of combined entry where accounting entry will be:

By Goods A/c Dr. Rs.1000
To Cash A/c Cr. Rs.900
To Cash discount A/c Cr. Rs.100
Question 6
1 / -0

____________ has a debit balance.

A
Debtors Account

B
Sales Account

C
Creditors Account

D
Overdraft Account

Solution

When the goods are sold on credit, the customer who owes money for the goods is known as debtor. Amount is receivable from such debtors and hence it is considered as an asset for the business entity. Also assets will show a debit balance.
Hence, debtors being an asset to the entity will show a debit balance of an amount which is receivable from them.
Question 7
1 / -0

______________ has a credit balance.

A
Purchase account

B
Sales Account

C
Goodwill account

D
Cash account

Solution

As per the rules of accounting, revenue account will always have a credit balance showing income for the business entity.
Sales refers to the amount of goods or services provided to the customers in the course of business.
Sales being a revenue to the business entity will always have credit balance.
Question 8
1 / -0

Rs 1200 being advance income tax of the proprietor paid by the firm is treated as ______.

A
Business expense

B
Drawing

C
Business tax of the firm

D
Loss

Solution

Income Tax is a personal liability of the proprietor. Hence any amount paid or withdraw from the business for personal purposes is to be debited to drawing account.
Question 9
1 / -0

Interest received A/c will have ________.

A
Debit balance

B
Credit balance

C
Nil

D
Debit or credit balance

Solution

Interest received is an income therefore it is a Nominal Account.
The rule for Nominal Account is
Debit- All increase in expense or losses
Credit- All Increase in Income and Gains
As Interest received is an income therefore, it will have credit balance.
Question 10
1 / -0

Received Rs 1100 from M/s M in settlement of Rs 1250 due from him. The nature of the journal entry to be passed for this transaction is ______.

A
Simple entry

B
Compound entry

C
Complex entry

D
Contra entry

Solution

A compound journal entry is an accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits.
Hence, it is a compound entry, as cash account and discount allowed A/c is to be debited.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 16

Result

Recording of Transactions - I Test 16

Score

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Rank

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SHARING IS CARING

Question 1

What comes in

What goes out

Income

Expenses/losses

Solution

Question 2

Journal entry

Diarizing

Recording

Narration

Solution

Question 3

4

5

6

3

Solution

Question 4

a journal

memorandum A/c

kachha record

voucher

Solution

Question 5

Simple entry

Double entry

Compound entry

Complex entry

Solution

Question 6

Debtors Account

Sales Account

Creditors Account

Overdraft Account

Solution

Question 7

Purchase account

Sales Account

Goodwill account

Cash account

Solution

Question 8

Business expense

Drawing

Business tax of the firm

Loss

Solution

Question 9

Debit balance

Credit balance

Nil

Debit or credit balance

Solution

Question 10

Simple entry

Compound entry

Complex entry

Contra entry

Solution

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