Journal Test 6

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Journal Test 6

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Weekly Quiz Competition

Question 1
1 / -0

The following comments below relate to the recording of journal entries. Which statement is true?

A
For any given journal entry, debits must exceed credits.

B
It is customary to record credits on the left and debits on the right.

C
The chart of accounts reveals the amount to debit and credit to the affected accounts.

D
Journalization is the process of converting transactions and events into debit/credit format.

Solution

Journalization is the process of converting transactions and events into debit/credit format.
Question 2
1 / -0

Which of the following specialized journals will record "goods returned by the business"?

A
Purchase journal

B
Sales journal

C
Purchases return journal

D
Sales return journal
Question 3
1 / -0

Which of the following statement is incorrect with respect to a journal entry?

A
It is prepared to record all transactions in alphabetical order.

B
It should always end with a narration explaining the need for it.

C
It should be substantiated by appropriate voucher and authority.

D
It should always consist of a debit entry matched by a corresponding credit entry.

Solution

Journal is the book of original entry or prime entry. In Journal, business transactions are recorded in order of occurrence i.e. chronological order. There is no other order which is followed other than chronological order to record entries in the Journal.
Question 4
1 / -0

A Company makes a purchase on $$10^{th}$$ may some office equipment . The correct journal entry will be
Debit Credit
1 Office equipment Supplies
2 Purchases Office equipment
3 Accounts payable Office equipments
4 Office equipment Accounts payable

A
1

B
2

C
3

D
4
Question 5
1 / -0

If salary is given to proprietor ______________________.

A
Proprietors salary account is debited

B
Capital account is credited

C
Both a & b

D
None of the above

Solution

Salary to proprietor can't be paid and it is not permissible expenditure under income tax act,1961.
Proprietor is owner of the business and he enjoys gain of the business and hence he is not entitle for separate salary.
Question 6
1 / -0

The journal entry to account for the acquisition on credit of factory machinery from Millet plc should require which of the following:

A
Debit Factory account and credit Millet plc account

B
Debit Machinery account and credit Millet plc account

C
Debit Millet plc account and credit Machinery account

D
Debit Machinery account and credit Cash account

Solution

Machinery is purchase so there is an increase in machinery therefore it will be debited and creditor will also increase so it will be credited.
Question 7
1 / -0

The term 2/10-n/30 implies that discount will be given if the payment made within ______ day is receivable within 30 days.

A
2, 10

B
10, 2

C
10, 30

D
3, 15

Solution

2/10 net 30, defined as the trade credit in which clients can opt to either receive a 2 percent discount for payment to a vendor within 10 days or pay the full amount (net) of their accounts payable in 30 days, is extremely common in business to business sales.
Question 8
1 / -0

For every entry in journal the transaction can be ___________.

A
personal

B
real

C
nominal

D
all of the above
Question 9
1 / -0

The accounting entry to record bank charges deducted from the Bank Account of the business ___________.

A
Debit Bank Charges Account credit Cash Account

B
Debit Cash Account credit Bank Charges Account

C
Debit Interest account credit Bank Account

D
Debit Bank Charges Account credit Bank Account

Solution

Bank Charges are expenses for the business so, they will be debited as the Nominal Rule of Debit -All Expenses and loss and the Bank balance will decrease therefore, it will be credited as The Real Nature Rule of Credit is Credit all decrease in assets.

The Journal Entry for the Above transaction is
Bank Charges a/c Dr.
To Bank a.c
(Being bank charges deducted by the bank)
Question 10
1 / -0

Transactions which are inter-connected and have taken place simultaneously are recorded by means of a _____________.

A
Adjustment entry

B
Combined journal entry

C
Either (A) or (B)

D
Closing entry

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	Debit	Credit
1	Office equipment	Supplies
2	Purchases	Office equipment
3	Accounts payable	Office equipments
4	Office equipment	Accounts payable

Journal Test 6

Result

Journal Test 6

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Question 1

For any given journal entry, debits must exceed credits.

It is customary to record credits on the left and debits on the right.

The chart of accounts reveals the amount to debit and credit to the affected accounts.

Journalization is the process of converting transactions and events into debit/credit format.

Solution

Question 2

Purchase journal

Sales journal

Purchases return journal

Sales return journal

Question 3

It is prepared to record all transactions in alphabetical order.

It should always end with a narration explaining the need for it.

It should be substantiated by appropriate voucher and authority.

It should always consist of a debit entry matched by a corresponding credit entry.

Solution

Question 4

1

2

3

4

Question 5

Proprietors salary account is debited

Capital account is credited

Both a & b

None of the above

Solution

Question 6

Debit Factory account and credit Millet plc account

Debit Machinery account and credit Millet plc account

Debit Millet plc account and credit Machinery account

Debit Machinery account and credit Cash account

Solution

Question 7

2, 10

10, 2

10, 30

3, 15

Solution

Question 8

personal

real

nominal

all of the above

Question 9

Debit Bank Charges Account credit Cash Account

Debit Cash Account credit Bank Charges Account

Debit Interest account credit Bank Account

Debit Bank Charges Account credit Bank Account

Solution

Question 10

Adjustment entry

Combined journal entry

Either (A) or (B)

Closing entry

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