Recording of Transactions

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Recording of Transactions - II Test 4

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Weekly Quiz Competition

Question 1
1 / -0

Petty means ____________.

A
Small

B
Aggregate

C
Shop

D
Large

Solution

Petty is a french word which means "small". So petty cash book has come into existence which records small amount transactions.
Question 2
1 / -0

Purchase book is also known as __________.

A
Bought book

B
Purchase day book

C
Invoice book

D
All of the above

Solution

Purchase book is a book in which all the transactions relating to credit purchase are recorded. It consists of invoice number of the customers. Hence, it is also known as bought book, purchase day book or invoice book.
Question 3
1 / -0

Cash sales are recorded in the ________.

A
Sales book

B
Cash book

C
Journal book

D
Purchase book

Solution

Cash book is maintained by the firms to record all the cash transactions. These may be cash sales, cash purchases, expenses paid out of cash etc.

Cash sales will be recorded in cash book by passing the following journal entry:

Cash A/c Dr.
To Sales A/c
Question 4
1 / -0

Petty cash system is designed ________________.

A
To meet the needs of small businesses

B
To cover small and miscellaneous income

C
To cover the small expenditure to be paid in cash

D
To cover both small incomes and expenditure

Solution

Petty cash system is used to pay small day to day expenses on daily basis. A sum of total spent amount is transferred to cash book and expense account for a particular period rather than recording each individual small transaction.
Question 5
1 / -0

How does an over casting of purchase day book affect the cost of sales and profit?

A
Cost of sales is decreased while profit is increased.

B
Cost of sales is increased while profit is decreased.

C
Both cost of sales and profit are increased.

D
Cost of sales is increased, gross profit is decreased, but net profit remains unaffected.

Solution

All credit purchase of goods are recorded in the purchase journal while cash purchase are recorded in cash book.
Overcasting of purchase day book will mean that it has been totalled more or debited more which leads to increased cost of sales and profit is decreased.
Question 6
1 / -0

Which sales are recorded in Sales (Journal) Book?

A
Cash sales of goods.

B
Credit sales of goods.

C
Cash Sales of furniture.

D
Credit Sales of furniture.

Solution

Sales book is meant for recording the credit sales of goods in which the organizations deals. Sales of goods for cash and sale of fixed assets are not recorded in the sales book since these transactions are transferred to cash book and journal proper respectively.
Question 7
1 / -0

Transaction in respect of consignment and joint venture are recorded in______.

A
Cash book

B
Purchase book

C
Journal proper

D
Sales book

Solution

Journal Proper is a subsidiary book where all those transactions are recorded which are not fit for any other subsidiary books.
Journal Proper is also known as General Journal or Miscellaneous Journal.
All the transactions are recorded in chronological order in this book.
The Format of Journal Proper is similar to simple journal only.
Therefore, transactions in respect of consignment and joint venture are recorded in Journal Proper.
Question 8
1 / -0

The accounts of expenses/losses and gains/revenues are balanced _________.

A
Daily

B
Monthly

C
Yearly

D
None of the above

Solution

The accounts of expenses/losses and gains/revenues are not balanced but are closed by transferring to trading and profit and loss account.
Question 9
1 / -0

Journal proper maintained to record transactions which _______.

A
Do not find place

B
Have large amount

C
Special in nature

D
All of the above

Solution

Journal proper is a residuary book wherein all those transactions are recorded which cannot be recorded in any of the subsidiary books namely purchase book , purchase return book , sales book , sales return books , cash book. In other words all those transactions which do not find place anywhere are recorded in Journal proper.
Question 10
1 / -0

When a transaction has not been recorded in the books of account either wholly or partially, then such errors are called ____________.

A
Error of commission

B
Error of omission

C
Compensating error

D
Error of principle

Solution

An error of omission is when an entry wasn't made even though a transaction had occurred for the period. For example, an accounts payable account, which are the short-term debts that companies owe suppliers and vendors, is not credited when goods were purchased on credit.

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Re-Attempt Weekly Quiz Competition

Recording of Transactions - II Test 4

Result

Recording of Transactions - II Test 4

Score

-

Rank

-

SHARING IS CARING

Question 1

Small

Aggregate

Shop

Large

Solution

Question 2

Bought book

Purchase day book

Invoice book

All of the above

Solution

Question 3

Sales book

Cash book

Journal book

Purchase book

Solution

Question 4

To meet the needs of small businesses

To cover small and miscellaneous income

To cover the small expenditure to be paid in cash

To cover both small incomes and expenditure

Solution

Question 5

Cost of sales is decreased while profit is increased.

Cost of sales is increased while profit is decreased.

Both cost of sales and profit are increased.

Cost of sales is increased, gross profit is decreased, but net profit remains unaffected.

Solution

Question 6

Cash sales of goods.

Credit sales of goods.

Cash Sales of furniture.

Credit Sales of furniture.

Solution

Question 7

Cash book

Purchase book

Journal proper

Sales book

Solution

Question 8

Daily

Monthly

Yearly

None of the above

Solution

Question 9

Do not find place

Have large amount

Special in nature

All of the above

Solution

Question 10

Error of commission

Error of omission

Compensating error

Error of principle

Solution

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