Recording of Transactions

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Recording of Transactions - I Test 40

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Weekly Quiz Competition

Question 1
1 / -0

Accounting entries for the repayment of a loan received from Richard, the owner's friend is _____________________.

A
Debit Cash account and Credit capital account

B
Credit cash account and Debit Richard's loan account

C
Credit cash account and Debit capital account

D
Debit cash account and Credit Richard's loan account

Solution

Debit - Loan Account
The debit to the Richard's loan account records the reduction in principal of the loan balance which is the cash repayment less the interest expense.
Credit - Cash Account
Cash has been used to make the the annual repayment to the lender on the due date in accordance with the loan agreement.
Question 2
1 / -0

A ______ is an accounting document representing an internal intent to make a payment to an external entity, such as a vendor or service provider.

A
Debit Note

B
Credit Note

C
Voucher

D
Invoice

Solution

A voucher is an accounting document representing an internal intent to make a payment to an external entity, such as a vendor or service provider.
Question 3
1 / -0

The two types of cash vouchers include debit vouchers and ____________ vouchers.

A
Credit

B
Memo

C
Receipt

D
Payment

Solution

There are mainly two types of Cash Vouchers
1. Debit Voucher: Debit Voucher is also known as the payment voucher. It is prepared when some payment is made by the business.
Example: Goods purchased for cash, rent paid, etc.

2. Credit Voucher: It is also known as the Receipt Voucher. It is prepared when cash is received by the business.
Example: Amount received on sale of goods.
Question 4
1 / -0

The _________ is a document that a seller passes to a buyer at the time of a specific purchase of goods or services. It is the equivalent of an invoice and is only used to record transactions that are paid for using cash, rather than bank transactions.

A
Voucher

B
Invoice

C
Cash memo

D
Credit memo

Solution

Cash Memo. A cash memo is documentary evidence of the payment made. The content of a cash memo and invoice are the same. An invoice is document that is given by the buyer to the purchaser when goods are purchased on credit.
Question 5
1 / -0

Prepare accounting equation on the basis of the following:-

A
Harsha started business with cash Rs. 2,00,000/-

B
Purchased goods from Naman for cash Rs. 40,000/-

C
Sold goods to Bhanu (costing Rs. 10,000/-) Rs. 12,000/-

D
Bought furniture on credit Rs. 7,000/-

Solution

Accounting Equation is Total Assets = Total Liabilities + Capital
Here, Cash = 200,000 and Capital = 200000
Therefore, 200,000 = 0 + 200, 000.
Question 6
1 / -0

A ___________ voucher is a document which comprises of all the details of an accounting transaction.

A
Journal

B
Petty Cash

C
Debit

D
Credit

Solution

A Journal voucher is a voucher that consists of all the details of transactions like the date of transactions, amount, etc. A journal voucher is prepared for every transaction. They are serially numbered for convenience purpose so that journal can be prepared.
Question 7
1 / -0

When a liability is reduced or decreased, it is recorded on the ______________.

A
left or credit side of the liability account

B
right or debit side of the liability account

C
right or credit side of the liability account

D
left or debit side of the liability account

Solution

Since the Liability shows credit balance as per the accounting equation. When a liability is reduced or decreased, it is recorded on the debit side of the liability account.
Question 8
1 / -0

Payment of LIC premium of the proprietor is debited to _____________.

A
Capital account

B
Drawings account

C
LIC premium account

D
None of these

Solution

Payment of LIC premium is a personal expense of the owner therefore, drawings account will be debited and cash will be credited.
Question 9
1 / -0

Details of Outward supplies shall include _______________.

A
Invoice

B
Credit and Debit notes

C
Revised invoice issued in relation to outward supplies

D
All the above
Question 10
1 / -0

Required return is 15% and premium for risk is 11% then risk free return would be _____________.

A
26.00%

B
4.00%

C
16.50%

D
1.36%

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - I Test 40

Result

Recording of Transactions - I Test 40

Score

-

Rank

-

SHARING IS CARING

Question 1

Debit Cash account and Credit capital account

Credit cash account and Debit Richard's loan account

Credit cash account and Debit capital account

Debit cash account and Credit Richard's loan account

Solution

Question 2

Debit Note

Credit Note

Voucher

Invoice

Solution

Question 3

Credit

Memo

Receipt

Payment

Solution

Question 4

Voucher

Invoice

Cash memo

Credit memo

Solution

Question 5

Harsha started business with cash Rs. 2,00,000/-

Purchased goods from Naman for cash Rs. 40,000/-

Sold goods to Bhanu (costing Rs. 10,000/-) Rs. 12,000/-

Bought furniture on credit Rs. 7,000/-

Solution

Question 6

Journal

Petty Cash

Debit

Credit

Solution

Question 7

left or credit side of the liability account

right or debit side of the liability account

right or credit side of the liability account

left or debit side of the liability account

Solution

Question 8

Capital account

Drawings account

LIC premium account

None of these

Solution

Question 9

Invoice

Credit and Debit notes

Revised invoice issued in relation to outward supplies

All the above

Question 10

26.00%

4.00%

16.50%

1.36%

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