Journal Test 4

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Journal Test 4

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Weekly Quiz Competition

Question 1
1 / -0

A withdrawal of cash from business by the proprietor should be debited to _________________.

A
Drawing Account

B
Capital Account

C
Cash Account

D
Purchase Account

Solution

The transaction is based on the separate entity concept which signifies that business and its proprietor are treated two separate legal entity. Withdrawal of cash by proprietor should be debited to drawing account in the books of the business. Same amount should be credited by the proprietor in cash account.
Question 2
1 / -0

A credit sale of goods to Ram should be debited to ______________.

A
Sales Account

B
Goods Account

C
Ram's Account

D
Purchase Account

Solution

Ram is the Receiver of goods, as such, his personal account has been debited According to the rule of personal account, i.e., “Debit the Receiver”. Sales A/c will be credited according to the rule of Nominal account i.e., “Credit all incomes”.
Question 3
1 / -0

Goods given as charity should be credited to _________.

A
purchase account

B
charity account

C
sales account

D
trading account

Solution

Purchases will be credited if goods are given as charity. When accounting for goods given as charity, purchases are reduced with the exact cost of goods contributed. The amount is reduced from purchases in the trading account. It is shown as an expense on the debit side of the income statement.
Question 4
1 / -0

Purchase of goods on credit from A is recorded as ________________.

A
Debit purchases A/c; Credit cash A/c

B
Debit A A/c; Credit purchase A/c

C
Debit purchase A/c; Credit A's A/c

D
Debit stock A/c; Credit purchase A/c

Solution

Journal Entry :-
Purchase A/c Dr...
To A's A/c..
(Being goods purchased from A on credit)
Question 5
1 / -0

Received a first and final dividend of $$60$$ paise in the rupee from the Official Receiver of Mr. Ram who owed $$Rs. 2,000$$.

A
Discount allowed A/c be debited with $$Rs. 800$$

B
Bad debts recovered A/c be debited with $$Rs. 12,00$$

C
Bad debt A/c be credited with $$Rs. 800

D
Bad debt A/c be debited with $$Rs. 800

Solution

The Journal Entry will be..

Cash a/c Dr. 1200
Bad debt a/c Dr 800
To Ram a/c. 2000
Question 6
1 / -0

A withdrawal of cash from business by the proprietor of the firm should be credited to _____________.

A
Capital account

B
Cash account

C
Drawing account

D
Proprietor's account

Solution

The transaction is based on the separate entity concept which signifies that business and its proprietor are treated two separate legal entity. Withdrawal of cash by proprietor should be debited to drawing account in the books of the business. Same amount should be credited by the proprietor in cash account.
Question 7
1 / -0

Goods given away as charity would be credited to _______________.

A
Sales A/c

B
Purchase A/c

C
Charity A/c

D
Cash A/c

Solution

Purchases will be credited if goods are given as charity. When accounting for goods given as charity, purchases are reduced with the exact cost of goods contributed. The amount is reduced from purchases in the trading account. It is shown as an expense on the debit side of the income statement.
Question 8
1 / -0

Goods destroyed by fire should be credited to ___________.

A
goods lost by fire account

B
sales account

C
purchase account

D
cash account

Solution

When goods are destroyed by fire, then the "Loss by fire A/c" is debited and "Purchases A/c" is credited. The goods destroyed by fire is considered to be loss for the business and is classified as a nominal account. Therefore, according to the rule of nominal account, all the expenses and losses are to be debited. Hence, "Loss by fire A/c" is debited when goods are destroyed by fire and "purchases A/c" is credited.
Question 9
1 / -0

When the claim on account of loss of stock is fully recoverable from the insurance company, the journal entry will be ______________________.

A
Cash A/c Dr.

To Insurance Claim

B
Insurance Claim A/c Dr.

To Trading A/c

C
Trading A/c Dr.

To Insurance Claim A/c

D
Insurance Claim A/c Dr.

To P and L A/c
Question 10
1 / -0

If the goods purchases are in transit, then the journal entry to record will be _______________.

A
Purchase A/c Dr.

To Supplier's A/c

B
Goods-in-transit A/c Dr.

To Purchase A/c

C
Goods-in-transit A/c Dr.

To Supplier's A/c

D
Supplier's A'c Dr.

To Goods-in-transit

Solution

The effect of this transaction will be there will be an increase in goods, therefore, it will be debited and there is an increase in creditors, therefore, it will be credited.
Therefore, If the goods purchases are in transit, then the journal entry to record will be
Goods-in-transit A/c Dr.
To Supplier's A/c
(Being Goods purchased are in transit.)

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Re-Attempt Weekly Quiz Competition

Journal Test 4

Result

Journal Test 4

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Rank

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SHARING IS CARING

Question 1

Drawing Account

Capital Account

Cash Account

Purchase Account

Solution

Question 2

Sales Account

Goods Account

Ram's Account

Purchase Account

Solution

Question 3

purchase account

charity account

sales account

trading account

Solution

Question 4

Debit purchases A/c; Credit cash A/c

Debit A A/c; Credit purchase A/c

Debit purchase A/c; Credit A's A/c

Debit stock A/c; Credit purchase A/c

Solution

Question 5

Discount allowed A/c be debited with $$Rs. 800$$

Bad debts recovered A/c be debited with $$Rs. 12,00$$

Bad debt A/c be credited with $$Rs. 800

Bad debt A/c be debited with $$Rs. 800

Solution

Question 6

Capital account

Cash account

Drawing account

Proprietor's account

Solution

Question 7

Sales A/c

Purchase A/c

Charity A/c

Cash A/c

Solution

Question 8

goods lost by fire account

sales account

purchase account

cash account

Solution

Question 9

Cash A/c Dr.To Insurance Claim

Insurance Claim A/c Dr.To Trading A/c

Trading A/c Dr.To Insurance Claim A/c

Insurance Claim A/c Dr.To P and L A/c

Question 10

Purchase A/c Dr.To Supplier's A/c

Goods-in-transit A/c Dr.To Purchase A/c

Goods-in-transit A/c Dr.To Supplier's A/c

Supplier's A'c Dr.To Goods-in-transit

Solution

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Cash A/c Dr.

To Insurance Claim

Insurance Claim A/c Dr.

To Trading A/c

Trading A/c Dr.

To Insurance Claim A/c

Insurance Claim A/c Dr.

To P and L A/c

Purchase A/c Dr.

To Supplier's A/c

Goods-in-transit A/c Dr.

To Purchase A/c

Goods-in-transit A/c Dr.

To Supplier's A/c

Supplier's A'c Dr.

To Goods-in-transit