Recording of Transactions

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Recording of Transactions - I Test 19

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Weekly Quiz Competition

Question 1
1 / -0

Rs. 5000 paid to Ram as salary for the month of July 06, while recording this transaction in books of A/c which account will be debited ......

A
Ram's A/c

B
Salary outstanding A/c

C
Salary A/c

D
Profit and loss A/c

Solution

The journal entry for "Rs. 5000 paid to Ram as salary for the month of July 06" will be
Salary a/c Dr.
To cash a/c
(Being salary paid to Ram)
Therefore, recording this transaction in books of A/c Salary account will be debited
Question 2
1 / -0

Which of these account(s) is/are never closed

A
Salary A/c

B
Debtors A/c

C
Purchase A/c

D
Sales A/c

Solution

Debtors A/c is never closed as it is a asset account.
All the Expenses and Income Accounts are closed at the end of the financial year. The balance of expenses or income accounts are transferred to Profit and loss A/c. But the balance of Asset account is shown in the balance sheet therefore, it is carried forward to next accounting year.
Question 3
1 / -0

Business expenses excludes...

A
Fire insurance premium of office building

B
LIC premium on the life of proprietor

C
Interest on capital

D
Repair of office furniture
Question 4
1 / -0

Which of these describes a record of the transaction?

A
Journal

B
Ledger

C
Trial balance

D
Work sheet

Solution

Journal keeps the record of the transaction. Journal is known as the Book of Primary Entry. In Journal, all the transactions are recorded in chronological order. Journal is also known as the Day Book. The Format of the Journal has 5 Columns namely Date Particulars, LF, Debit Amount and Credit Amount.
Question 5
1 / -0

Which of the following is accounting equation?

A
Capital = Assets + Liabilities

B
Capital = Assets - Liabilities

C
Assets = Liabilities - Capital

D
Liabilities = Assets + Capital

Solution

The basic accounting equation, also called as the balance sheet equation, represents the relationship between the assets, liabilities and capital of a business. It is the foundation for the double entry book-keeping system. For each transaction, the total debit equals the total credit. Following is the accounting equation:
Asset = Liability + Capital.
Question 6
1 / -0

Which of the following is not a book of original entry?

A
The Journal

B
The Ledger

C
The Cash Book

D
The Bill Receivable Book

Solution

Books of original entry refers to the accounting journals in which business transactions are initially recorded. The information in these books is then summarized and posted into a general ledger, from which financial statements are produced.
Question 7
1 / -0

The accounting equation is based on __________.

A
Going concern concept

B
Dual aspect concept

C
Money measurement concept

D
All of the above

Solution

Dual aspect concept is the basic concept of accounting, According to which every business transactions has a dual effect. As the name implies , the entry made for each transaction is composed of two parts- one for the debit and the other for the credit. Every debit has an equal amount of credit. So, the total of all debits equal to the total of all credits. This gives basic accounting equation:
Assets = Liabilities + Capital.
Question 8
1 / -0

Dual aspect concept results in the accounting equation _____________.

A
Capital + Liabilities = Assets

B
Revenue = Expenses

C
Capital + Profit = Assets + Expenses

D
none of these

Solution

Dual aspect is the foundation or basic principle of accounting. This concept states that every transaction has a dual or two-fold effect and should therefore be recorded at two places.

The duality principle is commonly expressed in terms of fundamental Accounting Equation, which is as follows :

Assets = Liabilities + Capital

In other words, the equation states that the assets of a business are always equal to the claims of owners and the outsiders. The claims also called equity of owners is termed as Capital(owners’ equity) and that of outsiders, as Liabilities(creditors equity).
Question 9
1 / -0

The outside liabilities of a business are Rs. $$20,000$$. The proprietor's capital is Rs. $$50,000$$. Total assets of the firm are worth ___________.

A
Rs. $$50,000$$

B
Rs. $$30,000$$

C
Rs. $$70,000$$

D
Rs. $$20,000$$

Solution

As per Accounting Equation
Assets = Liabilities + Capital
Assets = 20,000 + 50 , 000
= 70,000
Question 10
1 / -0

Which of the following is a book of original entry and also part of the ledger?

A
The Journal

B
The Cash Book

C
The Purchase Book

D
The Sales Book

Solution

Cash is known as the book of original entry as well as it is part of ledger.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 19

Result

Recording of Transactions - I Test 19

Score

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Rank

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SHARING IS CARING

Question 1

Ram's A/c

Salary outstanding A/c

Salary A/c

Profit and loss A/c

Solution

Question 2

Salary A/c

Debtors A/c

Purchase A/c

Sales A/c

Solution

Question 3

Fire insurance premium of office building

LIC premium on the life of proprietor

Interest on capital

Repair of office furniture

Question 4

Journal

Ledger

Trial balance

Work sheet

Solution

Question 5

Capital = Assets + Liabilities

Capital = Assets - Liabilities

Assets = Liabilities - Capital

Liabilities = Assets + Capital

Solution

Question 6

The Journal

The Ledger

The Cash Book

The Bill Receivable Book

Solution

Question 7

Going concern concept

Dual aspect concept

Money measurement concept

All of the above

Solution

Question 8

Capital + Liabilities = Assets

Revenue = Expenses

Capital + Profit = Assets + Expenses

none of these

Solution

Question 9

Rs. $$50,000$$

Rs. $$30,000$$

Rs. $$70,000$$

Rs. $$20,000$$

Solution

Question 10

The Journal

The Cash Book

The Purchase Book

The Sales Book

Solution

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