Recording of Transactions

Result

Recording of Transactions - I Test 36

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Weekly Quiz Competition

Question 1
1 / -0

Ledger book is popularly known as ____________.

A
Secondary book of accounts

B
Principal book of accounts

C
Subsidiary book of accounts

D
None of above

Solution

Ledger book is popularly known as Principal book of accounts
Question 2
1 / -0

_______ is used to record the details of bills receivable by the business organization.

A
Purchases Book

B
Bills Payable Book

C
Bills Receivable Book

D
None of the above

Solution

Bills receivable book is used to record the bills received from debtors. When a bill is received, details of it are recorded in the bills receivable book.
Therefore, C is the correct option.
Question 3
1 / -0

Goods purchased on credit is an example of ___________.

A
Increase in Asset & Owner's Liability

B
Decrease in Asset & Owner's Liability

C
Increase in Liability & Owner's Liability

D
Increase in assets and liabilities

E
Increase in Liability & Decrease in Owner's Liability

Solution

Goods purchased on credit will result in an increase in assets as goods are assets for the business when goods are purchased, goods will increase in the business whereas on the other hand Goods are bought on credit, therefore, there will be an increase in the creditors which will result in an increase in liability.
Therefore, Goods purchased on credit is an example of Increase in assets and liabilities
Question 4
1 / -0

Goods purchased for cash is an example of __________.

A
Increase in Asset & Owner's Liability

B
No change in total assets and total liability.

C
Increase in Liability & Owner's Liability

D
Decrease in Liability & Increase in Owner's Liability

E
Increase in Liability & Decrease in Owner's Liability

Solution

Cash will be reduced and stock will be increased, so there will be no change in the assets or liabilities. Both Cash and Stock are assets of the business and one is increasing and the other is decreasing with the same amount.
Goods purchased for cash is an example of No change in total assets and total liability.
Question 5
1 / -0

Which of the following accounting equation is correct?

A
Assets + Capital = Liabilities

B
Assets + Liabilities = Capital

C
Assets + Liabilities + Capital = Nil

D
None of the above

Solution

Accounting Equation is Total Assets = Liabilities + Capital
Accounting equation is double entry system of accounting.
It is also known as Balance Sheet Equation. It represents a relationship between Assets, liabilities and capital of the business.
Question 6
1 / -0

Goods returned to supplier is an example of __________.

A
Increase in Asset & Owner's Liability

B
Decrease in Asset & Owner's Liability

C
Increase in Liability & Owner's Liability

D
Decrease in Liability & Increase in Owner's Liability

E
Increase in Liability & Decrease in Owner's Liability

Solution

The Journal entry for Goods returned to the supplier is
Suppliers a/c Dr.
To Purchases return a/c
(Being Goods returned to the supplier)
Therefore, Goods will reduce so, Decrease in Assets & creditors will decrease so, decrease in liabilities.
Question 7
1 / -0

Goods returned by a customer is an example of _____________________.

A
Increase in Asset & owner's liability

B
Decrease in Asset & owner's liability

C
Increase in Liability & owner's liability

D
Decrease in Liability & Increase in owner's liability

E
Increase in Liability & Decrease in owner's liability

Solution

When Goods are returned by a customer then Goods will increase which are assets for the business on the other hand debtors will increase, debtors are also assets for the business.
so, there will be no change in the assets or liabilities.
Question 8
1 / -0

Goods sold on credit is an example of __________.

A
No Change in Asset & Owner's Liability

B
Decrease in Asset & Owner's Liability

C
Increase in Liability & Owner's Liability

D
Decrease in Liability & Increase in Owner's Liability

E
Increase in Liability & Decrease in Owner's Liability

Solution

When goods are sold on credit then Goods (stock) will decrease which are assets for the business whereas debtors will increase, debtors are also assets for the business. So, there will be no change in the assets.
Therefore, Goods sold on credit is an example of No Change in Asset & Owner's Liability
Question 9
1 / -0

Credit purchase of plant and machinery is recorded in_________________.

A
purchase day book

B
purchase ledger

C
cash book

D
Journal proper

Solution

Journal proper or General Journal is a simple book of chronological records of business transactions. This book of original entry (simple journal) in which miscellaneous credit transactions which do not fit in any other books are recorded. It is also called a miscellaneous journal.
Therefore, D is the correct answer.
Question 10
1 / -0

At the end of the accounting year all the nominal accounts of the ledger book are _________________.

A
Balanced but not transferred to profit and loss account

B
Not balanced and also the balance is not transferred to the profit and loss account

C
Balanced and the balance is transferred to the balance sheet

D
Not balanced and their balance is transferred to the profit and loss account

Solution

Nominal Accounts are not balanced as they are transfer to profit and loss account

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 36

Result

Recording of Transactions - I Test 36

Score

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Rank

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SHARING IS CARING

Question 1

Secondary book of accounts

Principal book of accounts

Subsidiary book of accounts

None of above

Solution

Question 2

Purchases Book

Bills Payable Book

Bills Receivable Book

None of the above

Solution

Question 3

Increase in Asset & Owner's Liability

Decrease in Asset & Owner's Liability

Increase in Liability & Owner's Liability

Increase in assets and liabilities

Increase in Liability & Decrease in Owner's Liability

Solution

Question 4

Increase in Asset & Owner's Liability

No change in total assets and total liability.

Increase in Liability & Owner's Liability

Decrease in Liability & Increase in Owner's Liability

Increase in Liability & Decrease in Owner's Liability

Solution

Question 5

Assets + Capital = Liabilities

Assets + Liabilities = Capital

Assets + Liabilities + Capital = Nil

None of the above

Solution

Question 6

Increase in Asset & Owner's Liability

Decrease in Asset & Owner's Liability

Increase in Liability & Owner's Liability

Decrease in Liability & Increase in Owner's Liability

Increase in Liability & Decrease in Owner's Liability

Solution

Question 7

Increase in Asset & owner's liability

Decrease in Asset & owner's liability

Increase in Liability & owner's liability

Decrease in Liability & Increase in owner's liability

Increase in Liability & Decrease in owner's liability

Solution

Question 8

No Change in Asset & Owner's Liability

Decrease in Asset & Owner's Liability

Increase in Liability & Owner's Liability

Decrease in Liability & Increase in Owner's Liability

Increase in Liability & Decrease in Owner's Liability

Solution

Question 9

purchase day book

purchase ledger

cash book

Journal proper

Solution

Question 10

Balanced but not transferred to profit and loss account

Not balanced and also the balance is not transferred to the profit and loss account

Balanced and the balance is transferred to the balance sheet

Not balanced and their balance is transferred to the profit and loss account

Solution

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