Self Studies
Self Studies
Self Studies
Self Studies
Selfstudy
Selfstudy

Recording of Transactions - II Test 10

Result Self Studies

Recording of Transactions - II Test 10
  • Score

    -

    out of -
  • Rank

    -

    out of -
TIME Taken - -
Self Studies

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Self Studies Self Studies
Weekly Quiz Competition
  • Question 1
    1 / -0
    Bad debts reserve account always shows ________ balance.
    Solution
    The bad debt reserve is a provision for the estimated amount of bad debt that is likely to arise from existing account receivable. A bad debt reserve is a contra account, which is designed to offset the receivables account with which it is prepared. The receivables account has a natural debit balance, while the bad debt reserve has a natural credit balance.
  • Question 2
    1 / -0
    Select the most appropriate alternative from those given below:
    Reserve for discount on debtor has a _______ balance.
    Solution
    All the reserves and provisions are made out of profit. Profit being a nominal account has a credit balance. Therefore, all the reserves and provisions also have a credit balance. 
    Reserve for discount on debtors is made in order to make a provision to allow discount to the debtors on payment. Discount on debtors is an expense and thus the business provides for it in advance. 
    The entry is:
    Profit and Loss A/c............Dr.
    To Reserve for discount on debtors A/c.
    Thus, the correct option is A.
  • Question 3
    1 / -0
    An additional information provided below the Trial balance is known as ________.
    Solution
    The additional information that is provided after the completion of the trial balance are known as adjustments. 
    Sometimes, When financial statements are prepared, some items are either not recorded in the books. Hence, financial  statements do not depict the true and fair view of the financial position of the business. 
    Thus, in order to get a clear financial picture, these adjustments are provided as additional information and entries passed for such transactions are called adjusting entries.
  • Question 4
    1 / -0
    When cheque is ___________ into bank, cash book is debited.
    Solution
    When cheque is deposited in Bank the entry for the same is as follows :
    Cash/Bank A/c.  ........................... Dr.
    To Sundry receivables A/c.
    So, when a cheque is deposited into Bank the bank balance in the cash book would increase and as the cash book shows a debit balance, the cash book is to be debited which is evidently clear from the above journal entry
  • Question 5
    1 / -0
    Cash Book is a_______book.
    Solution
    Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period. Generally, it is made on monthly basis. This is a very popular book and is maintained by all organizations, big or small, profit or not-for-profit. It serves the purpose of both journals as well as ledger (cash) account. It is a subsidiary book and also called a book of original entry/principal book. When a cash book is maintained, transactions of cash are not recorded in the journal, and no separate account for cash or bank is required in the ledger.
  • Question 6
    1 / -0
    On the credit side of cash book/account______are shown.
    Solution
    Cash Book is divided into two side -

    1. Debit Side (also known as the Receipts  Side) ;  When there is increase in cash then it is recorded in Debit Side because Debit is All increase in assets.  

    2. Credit Side (Also Known as the Payments Side) : When there is decrease in cash then it is recorded in credit Side because credit is All decrease in assets.

    Therefore, on the credit side of cash book/account all types of payments are shown.
  • Question 7
    1 / -0
    On the debit side of cash book/account______are shown.
    Solution
    Cash Book is a subsidiary book that records all the cash transactions whether it is revenue in nature or capital in nature. All the capital and revenue receipts and payments are recorded in the cash book.
    Cash Book serves the purpose of both Journal and ledger. There is no need to prepare a cash account if the cash book is being maintained.
    There are two sides to the Cash Book.
    The Debit side of the Cash Book is known as the Receipts side whereas the credit side is known as the Payment side.
    Therefore, On the debit side of the cash book/account, all types of receipts are shown.
  • Question 8
    1 / -0
    _________ may be defined as the record of transaction concerning cash receipts and cash payment.
    Solution
    Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with cash or bank valances at the beginning of the period. Generally. it is made on monthly basis. 

    This is a very popular book and is maintained by all organisations, big or small, profit or not-for-profit. It serves the purpose of both journal as well as the ledger (cash) account. It is also called the book of original entry. 

    When a cash book is maintained, transactions of cash are not recorded in the journal, and no separate account for cash and bank is required in the ledger.
  • Question 9
    1 / -0
    _______ does not have any debit side.
    Solution
    The sales day book is a manually-maintained ledger in which is recorded the key detailed information for each individual credit sale to a customer. The daily total of the sales listed in the sales day book is then transferred into the sales ledger. Thus, the most detailed redecoration of credit sales is the sales day book, with only daily totals of credit sales appearing in the sales ledger.  
  • Question 10
    1 / -0
    Rectification entries are passed in __________.
    Solution
    All those transactions that cannot be recorded in any other subsidiary books are recorded in the journal proper. Thus, rectification entries are passed in the journal proper. Following transactions are recorded in the journal proper:
    1. Opening entries
    2. Closing entries
    3. Transfer entries
    4. Adjustment entries
    5. Rectification entries
    6. Miscellaneous entries
Self Studies
User
Question Analysis

  • Correct -

  • Wrong -

  • Skipped -

My Perfomance
  • Score

    -

    out of -
  • Rank

    -

    out of -
Re-Attempt Weekly Quiz Competition
Self Studies Get latest Exam Updates
& Study Material Alerts!
No, Thanks
Self Studies
Click on Allow to receive notifications
Allow Notification
Self Studies
Self Studies Self Studies
To enable notifications follow this 2 steps:
  • First Click on Secure Icon Self Studies
  • Second click on the toggle icon
Allow Notification
Get latest Exam Updates & FREE Study Material Alerts!
Self Studies ×
Open Now