Recording of Transactions

Result

Recording of Transactions - II Test 32

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Weekly Quiz Competition

Question 1
1 / -0

Interest accrued for the month of March will be recorded in:

A
Purchases Book.

B
Sales Book.

C
Cash Book.

D
Journal Proper.

Solution

Journal Proper records all those transactions that cannot be recorded in any other subsidiary book. Therefore, Interest accrued for the month of March will be recorded in Journal Proper.

The Journal Entry for the above transaction is
Accrued Interest a/c Dr.
To Interest a/c
(Being Interest accrused of the month of March)
Question 2
1 / -0

Under Sales on Return or approval basis when the transactions are few and the seller sends the goods on approval or return basis, the accounting treatment will be __________________.

A
No Journal Entry

B
Entry in Sales or Return Journal

C
Entry in Sales or Return Day Book

D
Sundry Debtors A/c Dr.

To Sales A/c
Question 3
1 / -0

Narration is given along with journal entry _____________.

A
To signify the impact of entry on profitability

B
To disclose the profit or loss of the transaction.

C
To give a precise explanation

D
To secretly understanding the inner meaning of entries

Solution

Narration gives detailing of the recorded Journal Entry. After recording the Journal Entry, narration is written after each such entry.
It helps understanding entries simply.
Therefore, Narration in journal gives a precise information about the transaction.
Question 4
1 / -0

When sales or return day book and sales or return ledger are maintained and the goods are sent to the customers on sale or return basis, these are recorded:

A
Initially in the Sale or Return Day Book. Thereafter in the Sale or Return Leger.

B
Only in the Sale or Return Day Book

C
Only in the Sales Day Book

D
Both in Sale or Return Day Book and Sales Day Book.

Solution

When sales or return day book and sales or return ledger are maintained and the goods are sent to the customers on sale or return basis, these are recorded in Sales or return day book.
Question 5
1 / -0

Cash book is a form of _____________.

A
Trial balance

B
Ledger

C
Journal

D
All of the above

Solution

Cash book is like a ledger account.
The Separate ledger account is prepared for all cash receipts and cash payments. This Ledger is known as Cash Account.
While the cash book which is called as journal book records all the cash receipts and cash payments therefore, it is same as ledger.
Therefore, a cash book serves both journal and ledger purposes.
Question 6
1 / -0

Cheques received but deposited on the next day are recorded in:

A
Cash column of the cash book

B
Bank column of the book

C
Both of these

D
None of these

Solution

Option A is correct.
It is treated as cash received on the date of receipt and recorded in the cash column on receipts side. When the cheque is deposited the entry for deposit will be passed on the day of depositing the cheque into bank.
Question 7
1 / -0

Which of the following pairs of accounts will have their balances on the same side?

A
Carriage Inwards account and Carriage Outwards account

B
Sales account and Returns Inwards account

C
Purchases account and Returns Outwards account

D
Capital account and drawings account

Solution

Both Carriage accounts are expenses and both will have debit balances.
The Sales account will have a credit balance whereas the Returns Inwards account will have a debit balance;
The Purchases account will have a debit balance whereas the Returns Outwards account will have a credit balance;
The Capital account will have a credit balance whereas the Drawings account will have a debit balance.
Question 8
1 / -0

Debiting the petty cash book with the exact amount spent in the previous period is an example of _______________.

A
Contra entry

B
Imprest system

C
Going concern

D
Prudence

Solution

Debiting the petty cash book with the exact amount spent in the previous period is an example of the Imprest system.
Petty Cash Book records all the small expenses of the business like postage, telephone charges, etc.
The Balance of Petty Cashbook is an asset for the business.
Question 9
1 / -0

Which of the following account(s) will be affected while rectifying the following error?
Sales to Ram Rs.336 recorded in the books of original entry as Rs.363.

A
Sales Account

B
Ram's Account

C
Cash Account

D
Both Sales and Ram's Account

Solution

The amount debited to Ram account is more than what should have been debited. The same goes for the amount credited to Sales account. Hence, Ram and Sales account are affected with overstated value of Rs.27.
Question 10
1 / -0

Postage stamps purchased for Rs. 30 by business. This transaction will be recorded in ________________.

A
Purchase book

B
Cash book

C
Petty cash book

D
Journal

Solution

As this is a small payment, there fore it will be recorded in the petty cash book.

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Recording of Transactions - II Test 32

Result

Recording of Transactions - II Test 32

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Question 1

Purchases Book.

Sales Book.

Cash Book.

Journal Proper.

Solution

Question 2

No Journal Entry

Entry in Sales or Return Journal

Entry in Sales or Return Day Book

Sundry Debtors A/c Dr. To Sales A/c

Question 3

To signify the impact of entry on profitability

To disclose the profit or loss of the transaction.

To give a precise explanation

To secretly understanding the inner meaning of entries

Solution

Question 4

Initially in the Sale or Return Day Book. Thereafter in the Sale or Return Leger.

Only in the Sale or Return Day Book

Only in the Sales Day Book

Both in Sale or Return Day Book and Sales Day Book.

Solution

Question 5

Trial balance

Ledger

Journal

All of the above

Solution

Question 6

Cash column of the cash book

Bank column of the book

Both of these

None of these

Solution

Question 7

Carriage Inwards account and Carriage Outwards account

Sales account and Returns Inwards account

Purchases account and Returns Outwards account

Capital account and drawings account

Solution

Question 8

Contra entry

Imprest system

Going concern

Prudence

Solution

Question 9

Sales Account

Ram's Account

Cash Account

Both Sales and Ram's Account

Solution

Question 10

Purchase book

Cash book

Petty cash book

Journal

Solution

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Sundry Debtors A/c Dr.

To Sales A/c