Recording of Transactions

Result

Recording of Transactions - I Test 20

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Weekly Quiz Competition

Question 1
1 / -0

A transaction recorded on the debit side of cash book is transferred to the ledger _________________.

A
On the debit side of the account

B
On the credit side of the account

C
Is not posted anywhere

D
Both (a) and (b).

Solution

Rules regarding posting of cash book are given below:

(i) Transactions recorded on the debit side of cash book are posted on the credit side of accounts opened in the ledger.

(ii) Transactions recorded on the credit side of the cash book are posted on the debit side of different accounts in the ledger.
Question 2
1 / -0

Capital brought in by the proprietor will result in _______________.

A
Increase in asset and increase in Capital

B
Increase in liability and decrease in asset

C
Increase in asset and decrease in liability

D
Increase in one asset and decrease in another asset

Solution

Capital brought in by the proprietor will result in an increase in cash in the business on the other there will be an increase in capital.
Therefore, There will be an Increase in assets and increase in Capital
Question 3
1 / -0

Balance of petty cash book is posted to ledger ______________.

A
In the cash account

B
In the bank A/c

C
Nowhere

D
Either (a) or (b).

Solution

A petty cash book is a ledger kept with the petty cash fund to record amounts that are added to or subtracted from its balance. Petty cash should be part of an overall business accounting system that documents how your business moves funds between one account and another and how it spends its money.
Question 4
1 / -0

Real accounts are related to _____________.

A
Assets

B
Expenses, losses and incomes

C
Debtors, creditors etc.

D
All of the above
Solution
Accounts relating to properties or assets are known as "Real Accounts". A separate account is maintained for each asset e.g., Cash, Machinery, Building, etc. Real accounts can be further classified into tangible and intangible.
Tangible real accounts: These accounts represent assets and properties which can be seen, touched, felt, measured, purchased and sold. For e.g. Machinery account, Cash account.
Intangible real accounts: These accounts represent assets and properties which cannot be seen, touched or felt but they can be measured in terms of money. For e.g. Goodwill account, Patents account, etc.
The rule for real account is: Debit what comes in; Credit what goes out.
Question 5
1 / -0

Nominal Accounts are related to ____________.

A
assets and liabilities

B
expenses, losses and incomes

C
debtors, creditors etc.

D
All of the above

Solution

Accounts relating to income, revenue, gain, expenses and losses are termed as nominal accounts. These accounts are also known as fictitious accounts as they do not represent any tangible asset. A separate account is maintained for each head or expense or loss and gain or income. Wages account, Rent account, Commission accounts are some examples of nominal accounts. The rule for Nominal accounts is: Debit all expenses and losses; Credit all incomes and gains.
Question 6
1 / -0

Personal accounts are related to ________.

A
Assets and liabilities

B
Expenses, loses and incomes

C
Debtors, creditors etc.

D
All of the above

Solution

These accounts are related to individuals, firms, companies, etc.
A few examples of personal account includes debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, suppliers, capital, drawings, etc.
Question 7
1 / -0

If the total of credit side of an account exceeds the total of its debit side, it indicates ________________.

A
Debit balance

B
Income

C
Losses

D
Credit balance

Solution

If the total of the debit side exceeds the total of credit side then this would be represented by a debit balance and opposite is true for a credit balance. When there is only one entry in an account, then obviously that item is the balance or difference between the two sides.
Question 8
1 / -0

Main object of preparing a 'Journal' is to __________.

A
ascertain the financial position of the business

B
journalise the cash transactions

C
make posting in the ledger

D
record the business transactions first of all

Solution

Main objectives of preparing journal: To make permanent and systematic record of all the financial transactions.
Question 9
1 / -0

A transaction recorded on the credit side of cash book is transferred to the ledger _______________.

A
On debit side of the account

B
On credit side of the account

C
Is not posted anywhere

D
Either (a) or (b).

Solution

Rules regarding posting of cash book are given below: (i) Transactions recorded on the debit side of cash book are posted on the credit side of accounts opened in the ledger. (ii) Transactions recorded on the credit side of the cash book are posted on the debit side of different accounts in the ledger.
Question 10
1 / -0

Goods given away as charity would be credited to _______________.

A
Sales A/c

B
Purchase A/c

C
Charity A/c

D
Cash A/c

Solution

Purchases will be credited if goods are given as charity. When accounting for goods given as charity, purchases are reduced with the exact cost of goods contributed. The amount is reduced from purchases in the trading account. It is shown as an expense on the debit side of the income statement.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 20

Result

Recording of Transactions - I Test 20

Score

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Rank

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SHARING IS CARING

Question 1

On the debit side of the account

On the credit side of the account

Is not posted anywhere

Both (a) and (b).

Solution

Question 2

Increase in asset and increase in Capital

Increase in liability and decrease in asset

Increase in asset and decrease in liability

Increase in one asset and decrease in another asset

Solution

Question 3

In the cash account

In the bank A/c

Nowhere

Either (a) or (b).

Solution

Question 4

Assets

Expenses, losses and incomes

Debtors, creditors etc.

All of the above

Solution

Question 5

assets and liabilities

expenses, losses and incomes

debtors, creditors etc.

All of the above

Solution

Question 6

Assets and liabilities

Expenses, loses and incomes

Debtors, creditors etc.

All of the above

Solution

Question 7

Debit balance

Income

Losses

Credit balance

Solution

Question 8

ascertain the financial position of the business

journalise the cash transactions

make posting in the ledger

record the business transactions first of all

Solution

Question 9

On debit side of the account

On credit side of the account

Is not posted anywhere

Either (a) or (b).

Solution

Question 10

Sales A/c

Purchase A/c

Charity A/c

Cash A/c

Solution

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