Recording of Transactions

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Recording of Transactions - I Test 21

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Weekly Quiz Competition

Question 1
1 / -0

Posting means the recording of a transaction _____________.

A
In any two accounts.

B
On the debit side of an account related to that transaction.

C
On the credit side of an account related to that transaction.

D
On the proper side of two accounts related to that transaction.

Solution

Posting is the transfer of journal entries to a general ledger, which usually contains a separate form for each account. Journals record transactions in chronological order, while ledgers summarize transactions by account. Posting in accounting consists of a few simple steps.
Question 2
1 / -0

The process of recording a transaction in the journal is called __________.

A
Posting

B
Journalising

C
Tallying

D
Casting

Solution

A journal may be defined as the book of original or prime entry containing a chronological record of the transactions from which posting is done to the ledger. The transactions are recorded first in the journal in the order in which they occur. The process of recording the transactions in a journal is called as journalizing.
Question 3
1 / -0

Payment of salary is recorded by ________________.

A
Debiting salary A/c Crediting cash A/c

B
Debiting cash A/c Crediting salary A/c

C
Debiting employee A/c Crediting cash A/c

D
Debiting employee A/c Crediting salary A/c

Solution

The Journal Entry for Payment of Salary is
Salary a/c Dr.
To Cash a/c
(Being Salary paid)

Salary is an expense therefore as per Nominal Rule it is debited
Cash is an asset therefore as per Real Rule it is credited.
Question 4
1 / -0

Which of the account is debited?

A
Income received in advance

B
Bank loan

C
Prepaid insurance premium

D
Reserve for doubtful debts

Solution

The prepaid amount will be reported on the balance sheet after inventory and could part of an item described as prepaid expenses. As the prepaid amount expires, the balance in Prepaid Insurance is reduced by a credit to Prepaid Insurance and a debit to Insurance expense.
Question 5
1 / -0

Goods returned by $$X$$ is entered as ________________.

A
Debit X A/c; Credit purchase return A/c

B
Debit X a/c; Credit cash A/c

C
Debit sales return A/c; Credit X A/c

D
Debit X a/c; Credit sales A/c

Solution

Revenue is reversed by debiting the sales returns and allowances account (which is a contra account to sales) by the amount of original sale and crediting accounts receivable account or cash account (depending on whether it was a credit sale or a cash sale).
Journal Entry :-
Sales Return A/c Dr.
To X's A/c
Question 6
1 / -0

Bills Receivable Book is a part of the ___________.

A
ledger

B
balance sheet

C
journal

D
profit and loss account

Solution

Bills Receivable Book also known as a B/R book.
Bills receivable book is a subsidiary or secondary book of accounting, where all bills of exchange, which are receivable for the business, are recorded. The total value of all the bills receivable for an accounting period is transferred to the books of accounts.
Question 7
1 / -0

What do you mean by credit?

A
An increase in asset

B
An increase in liability

C
A decrease in liability

D
A decrease in proprietor's equity

Solution

The accounting equation means assets equals liabilities plus equity. It is the base of double entry system of accounting. Liabilities and incomes both are having credit balance. Equity is a permanent account in the business and incomes are a temporary sub account of equity.
Hence, credit will increase liabilities.
Question 8
1 / -0

What do you mean by debit?

A
An increase in asset

B
An increase in liability

C
A decrease in asset

D
An increase in proprietor's equity

Solution

The accounting equation means assets equals liabilities plus equity. It is the base of double entry system of accounting. Assets and expenses both are having debit balance. Assets is a permanent account in the business and expense are a temporary sub account of equity.
Hence, debit will increase assets.
Question 9
1 / -0

Credit balance of a nominal account shows _____________.

A
Expenses in the business

B
Loss in the business

C
Income in the business

D
Assets of the business

Solution

Assets, expenses, losses, and the owner's drawing account will normally have debit balances.
Liabilities, revenues and sales, gains, and owner equity and stockholders' equity accounts normally have credit balances. These accounts will see their balances increase when the account is credited.
Question 10
1 / -0

Which of the following is an example of personal account?

A
Machinery

B
Rent

C
Cash

D
Creditor

Solution

These accounts are related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 21

Result

Recording of Transactions - I Test 21

Score

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Rank

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SHARING IS CARING

Question 1

In any two accounts.

On the debit side of an account related to that transaction.

On the credit side of an account related to that transaction.

On the proper side of two accounts related to that transaction.

Solution

Question 2

Posting

Journalising

Tallying

Casting

Solution

Question 3

Debiting salary A/c Crediting cash A/c

Debiting cash A/c Crediting salary A/c

Debiting employee A/c Crediting cash A/c

Debiting employee A/c Crediting salary A/c

Solution

Question 4

Income received in advance

Bank loan

Prepaid insurance premium

Reserve for doubtful debts

Solution

Question 5

Debit X A/c; Credit purchase return A/c

Debit X a/c; Credit cash A/c

Debit sales return A/c; Credit X A/c

Debit X a/c; Credit sales A/c

Solution

Question 6

ledger

balance sheet

journal

profit and loss account

Solution

Question 7

An increase in asset

An increase in liability

A decrease in liability

A decrease in proprietor's equity

Solution

Question 8

An increase in asset

An increase in liability

A decrease in asset

An increase in proprietor's equity

Solution

Question 9

Expenses in the business

Loss in the business

Income in the business

Assets of the business

Solution

Question 10

Machinery

Rent

Cash

Creditor

Solution

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