Recording of Transactions

Result

Recording of Transactions - I Test 17

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Weekly Quiz Competition

Question 1
1 / -0

___________ is not a subsidiary book.

A
Sales day book

B
Purchase day book

C
Cash book

D
Purchase Account

Solution

A journal is sub divided into number the books for some specific transactions to be recorded which are known as subsidiary books.
These can be purchase day book, sales day book, purchase returns, sales returns, cash book, etc.
While closing the purchase day books, sum of the total of purchase day book is transferred to purchase account. Purchase account is an account and hence, cannot be considered as a subsidiary book.
Question 2
1 / -0

Sales A/c will have ________.

A
Debit Balance

B
Credit Balance

C
Nil

D
Debit or Credit balance

Solution

Sales account is a real account. Rule of real account says credit what goes out. Accordingly sale of goods are recorded as credit. Sales a/c will always have the credit balance.
Question 3
1 / -0

Goods worth Rs 3000 were purchased on which the trader allowed Rs 200 as trade discount and 5% as cash discount if paid immediately. Purchase a/c will be debited by _____.

A
Rs 3000

B
Rs 2800

C
Rs 2750

D
Rs 2660

Solution

Discount are categorized as trade discount and cash discount. If any discount is allowed by the trader without any condition, its a general or trade discount. In such situation, purchases will be recorded in the books of account on the net price paid. In given situation purchase account will be debited by Rs.2800/-
Question 4
1 / -0

Expenses A/c will always have _______.

A
debit balance

B
credit balance

C
nil

D
debit or credit balance
Question 5
1 / -0

Cash discount on sales is termed as .......

A
Sales A/c

B
Debtors A/c

C
Discount allowed A/c

D
Profit and loss A/c

Solution

Cash discount on sales is an expense for the business therefore, it is debited to discount allowed account.
The Journal Entry would be
Cash a/c Dr.
Discount Allowed a/c Dr.
To Sales a/c
Question 6
1 / -0

Credit balance in which of these A/c indicates error in the A/c

A
Cash in hand A/c

B
Sales A/c

C
Capital A/c

D
Bank A/c

Solution

Cash in hand can be zero or positive but there can never be cash balance therefore, if cash balance is credit then there must be some mistake in that account.
Question 7
1 / -0

Journal is called............

A
Subsidiary book

B
Daily stock register

C
Log book

D
Primary book

Solution

Journal is called a subsidiary book. Journal is known as the books of original Entry or Books of prime entry.
The transactions are recorded in the journal in chronological order.
With the help of a journal, ledger accounts are prepared.
Question 8
1 / -0

Goods distributed as free sample would be __________________.

A
Debited to Advertisement A/c and credited to Purchase A/c.

B
Debited to Trading A/c and Credited to Profit and loss A/c

C
Credited to sale A/c and Debited to purchase A/c

D
Credited to Trading A/c and Debited to Drawing A/c

Solution

Goods distributed as free samples are products given away by a business usually for promotional reasons.
The goods distributed as free samples do not have a sales value and therefore cannot be recorded in the accounting records as sales.
The free product samples do however have a cost which needs to be removed from the cost of sales account and recorded as an expense. The expense account used will depend on the reason the goods were distributed as free samples and might include for example sales and marketing, promotion, advertising, charity or simply a free samples expense account.
Journal Entry :-
Advertisement A/c Dr.
To Purchase A/c
Question 9
1 / -0

On the debit side of a sales A/c entry can be for which of these reasons.

A
Sales returns

B
Discount allowed

C
Both

D
Additional sales
Question 10
1 / -0

Posting is the process of ___________.

A
Entering in the ledger information given in the Journal

B
Sending invoices to the customers

C
Entering an account in trail balance

D
Transferring an amount from one account to another

Solution

Posting is the process of entering in the ledger information given in the Journal.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 17

Result

Recording of Transactions - I Test 17

Score

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Rank

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SHARING IS CARING

Question 1

Sales day book

Purchase day book

Cash book

Purchase Account

Solution

Question 2

Debit Balance

Credit Balance

Nil

Debit or Credit balance

Solution

Question 3

Rs 3000

Rs 2800

Rs 2750

Rs 2660

Solution

Question 4

debit balance

credit balance

nil

debit or credit balance

Question 5

Sales A/c

Debtors A/c

Discount allowed A/c

Profit and loss A/c

Solution

Question 6

Cash in hand A/c

Sales A/c

Capital A/c

Bank A/c

Solution

Question 7

Subsidiary book

Daily stock register

Log book

Primary book

Solution

Question 8

Debited to Advertisement A/c and credited to Purchase A/c.

Debited to Trading A/c and Credited to Profit and loss A/c

Credited to sale A/c and Debited to purchase A/c

Credited to Trading A/c and Debited to Drawing A/c

Solution

Question 9

Sales returns

Discount allowed

Both

Additional sales

Question 10

Entering in the ledger information given in the Journal

Sending invoices to the customers

Entering an account in trail balance

Transferring an amount from one account to another

Solution

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