Recording of Transactions

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Recording of Transactions - I Test 30

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Question 1
1 / -0

Which of the following are accounting conventions?

A
Double entry

B
Accounting equation

C
Both A & B

D
None of the above

Solution

There are certain principles on which the whole accounting system is based. These principles are commonly known as generally accepted accounting principles. There are various concepts which includes:

Double Entry: This is based on the dual aspect of accounting. It defines that every business transaction will give affects two account i.e. debit and credit. For every debit there will be a credit and vice a versa.

Accounting Equation may be defined as:

Owner Equity+Liabilities=Fixed Assets+Current Assets.
Question 2
1 / -0

Which of the following is an item of a creditors control account?

A
Cash purchases

B
Cash sales

C
Credit sales

D
Credit purchase
Question 3
1 / -0

If assets are increased by 2,000 and liabilities are increased by 1,200. What will be the effect on business equity?

A
800

B
2,000

C
3,200

D
1,200.

Solution

The duality principle is commonly expressed in terms of fundamental Accounting Equation, which is as follows:
Assets = Liabilities + Equity ( Capital)
Equity = Assets - Liabilities
= 2,000 - 1,200
= 800.
Question 4
1 / -0

The prime entry for the acquisition of a cash book, ledgers and a journal for Rs 240 from X Ltd, on credit would be in the:

A
Journal

B
purchases Day Book

C
Cash Book

D
None of the above

Solution

Journal is called as books of prime entry.
Question 5
1 / -0

The following comments below relate to the recording of journal entries. Which statement is true?

A
For any given journal entry, debits must exceed credits.

B
It is customary to record credits on the left and debits on the right.

C
The chart of accounts reveals the amount to debit and credit to the affected accounts.

D
Journalization is the process of converting transactions and events into debit/credit format.

Solution

Journalization is the process of converting transactions and events into debit/credit format.
Question 6
1 / -0

A chronological record of transaction may be found in _______.

A
Balance Sheet

B
Trial Balance

C
Ledger

D
Journal

Solution

In accounting, a first recording of financial transactions as they occur in time, and in accounting and bookkeeping called a journal is a record of financial transactions in order by date. A journal is often defined as the book of original entry. Manual systems usually had a variety of journals such as a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and a general journal.so that they can then be used for future reconciling and transfer to other official accounting records such as the general ledger is a journal.
Question 7
1 / -0

A ledger is made _____________.

A
to classify all items appearing in Journal

B
to record the transaction

C
Both (a) and (b)

D
None of these

Solution

Ledger sorts out all the entries in journal under appropriate accounts for example all transactions related to cash are put in one account.
Question 8
1 / -0

A Company makes a purchase on 10th may, some office equipment. The correct journal entry will be Debit Credit
1. Office equipment Supplies
2. Purchases Office equipment
3. Accounts payable Office equipments
4. Office equipment Accounts payable

A
1

B
2

C
3

D
4

Solution

The Journal Entry Will be
Office Equipment a/c Dr.
To Accounts Payable a/c
(being company purchased office furniture.)
Question 9
1 / -0

X deposited rupees 500 in bank account ____________.

A
Bank account will be credited

B
Bank account will be debited

C
Saving account will be debited

D
All of the above

Solution

The Journal Entry for - X deposited Rs. 500 in bank account will be
Bank a/c Dr.
To Cash a/c
(Being amount deposited into the Bank)
The bank is an asset and its Bank balance will increase when cash is deposited into the bank. Therefore, Bank a/c will be debited.
Question 10
1 / -0

The journal entry to account for the acquisition on credit of factory machinery from Millet plc should require which of the following:

A
Debit Factory account and credit Millet plc account

B
Debit Machinery account and credit Millet plc account

C
Debit Millet plc account and credit Machinery account

D
Debit Machinery account and credit Cash account

Solution

Machinery is purchase so there is an increase in machinery therefore it will be debited and creditor will also increase so it will be credited.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 30

Result

Recording of Transactions - I Test 30

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Rank

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SHARING IS CARING

Question 1

Double entry

Accounting equation

Both A & B

None of the above

Solution

Question 2

Cash purchases

Cash sales

Credit sales

Credit purchase

Question 3

800

2,000

3,200

1,200.

Solution

Question 4

Journal

purchases Day Book

Cash Book

None of the above

Solution

Question 5

For any given journal entry, debits must exceed credits.

It is customary to record credits on the left and debits on the right.

The chart of accounts reveals the amount to debit and credit to the affected accounts.

Journalization is the process of converting transactions and events into debit/credit format.

Solution

Question 6

Balance Sheet

Trial Balance

Ledger

Journal

Solution

Question 7

to classify all items appearing in Journal

to record the transaction

Both (a) and (b)

None of these

Solution

Question 8

1

2

3

4

Solution

Question 9

Bank account will be credited

Bank account will be debited

Saving account will be debited

All of the above

Solution

Question 10

Debit Factory account and credit Millet plc account

Debit Machinery account and credit Millet plc account

Debit Millet plc account and credit Machinery account

Debit Machinery account and credit Cash account

Solution

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