Journal Test 8

Result

Journal Test 8

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Weekly Quiz Competition

Question 1
1 / -0

Goods worth $$Rs. 10,000$$ were purchased by $$B$$ on which the traders allowed $$Rs. 500$$ trade discount and offer to given $$5$$% cash discount if immediate payment is made. The Purchase A/c will be debited by ____________.

A
$$Rs. 10,000$$

B
$$Rs. 9,800$$

C
$$Rs. 9,000$$

D
$$Rs. 9,500$$

Solution

The Purchase A/c will be debited by $$Rs. 9,500$$. Cash discount will be considered at the time of payment. Cash Discount is applicable if payment made immediately. Here, payment is not made immediately. So, cash discount is not calculated and trade discount is not recorded in books of accounts.
Question 2
1 / -0

Discount is allowed by Arun to Varun. Which of the following should be the course of action in books of Arun?

A
Credit Varun A/c and debit discount allowed A/c

B
Debit Varun A/c and credit discount received A/c

C
Credit Arun A/c and debit discount allowed A/c

D
Debit Arun A/c and credit discount received A/c

Solution

Discount allowed is an expense and hence it should be debited and Varun's account should be credit as he is availing discount by Arun.

The Journal Entry to be passed:-
Discount allowed A/c Dr.
To Varun's A/c.
Question 3
1 / -0

_______is used to record the particulars of all the bills payable accepted by the business organization for the purpose of paying amounts due to its creditors.

A
Journal proper

B
Bills Payable Book

C
Bills Receivable Book

D
Sales Book
Question 4
1 / -0

Credit purchase of plant and machinery is recorded in_________________.

A
purchase day book

B
purchase ledger

C
cash book

D
Journal proper

Solution

Journal proper or General Journal is a simple book of chronological records of business transactions. This book of original entry (simple journal) in which miscellaneous credit transactions which do not fit in any other books are recorded. It is also called a miscellaneous journal.
Therefore, D is the correct answer.
Question 5
1 / -0

Purchase of Pen for office use will be debited to __________ .

A
Pen A/c

B
Stationery Expense A/c

C
Any of the above

D
None of the above

Solution

Pen is considered as stationary for office. Therefore, Stationary A/c will be debited and cash will be credited.
Question 6
1 / -0

X Ltd . purchased 100 units @ Rs.10 for cash, 200 units @ Rs.20 subject to 10% trade discount and 5% cash discount against current dated cheque. The total amount of purchases is _____________.

A
Rs.3,600

B
Rs.4,600

C
Rs.3,420

D
Rs.4,420
Question 7
1 / -0

_______ is used to record the details of bills receivable by the business organization.

A
Purchases Book

B
Bills Payable Book

C
Bills Receivable Book

D
None of the above

Solution

Bills receivable book is used to record the bills received from debtors. When a bill is received, details of it are recorded in the bills receivable book.
Therefore, C is the correct option.
Question 8
1 / -0

The accounting entries for recording Rs.10,00,000 cash introduced by the owner of a business is ______________.

A
Debit Cash account and Credit Capital account

B
Debit Cash account and Credit Investment account

C
Credit Cash account and Debit Investment in business account

D
Credit Cash account and Debit Owner's account

Solution

As cash is increasing therefore, cash account will be debited and capital will be credited.
Question 9
1 / -0

Payment of LIC premium of the proprietor is debited to _____________.

A
Capital account

B
Drawings account

C
LIC premium account

D
None of these

Solution

Payment of LIC premium is a personal expense of the owner therefore, drawings account will be debited and cash will be credited.
Question 10
1 / -0

Which one of the following is called backbone of auditing?

A
Routine checking

B
Vouching

C
Internal check

D
Internal control

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Re-Attempt Weekly Quiz Competition

Journal Test 8

Result

Journal Test 8

Score

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Rank

-

SHARING IS CARING

Question 1

$$Rs. 10,000$$

$$Rs. 9,800$$

$$Rs. 9,000$$

$$Rs. 9,500$$

Solution

Question 2

Credit Varun A/c and debit discount allowed A/c

Debit Varun A/c and credit discount received A/c

Credit Arun A/c and debit discount allowed A/c

Debit Arun A/c and credit discount received A/c

Solution

Question 3

Journal proper

Bills Payable Book

Bills Receivable Book

Sales Book

Question 4

purchase day book

purchase ledger

cash book

Journal proper

Solution

Question 5

Pen A/c

Stationery Expense A/c

Any of the above

None of the above

Solution

Question 6

Rs.3,600

Rs.4,600

Rs.3,420

Rs.4,420

Question 7

Purchases Book

Bills Payable Book

Bills Receivable Book

None of the above

Solution

Question 8

Debit Cash account and Credit Capital account

Debit Cash account and Credit Investment account

Credit Cash account and Debit Investment in business account

Credit Cash account and Debit Owner's account

Solution

Question 9

Capital account

Drawings account

LIC premium account

None of these

Solution

Question 10

Routine checking

Vouching

Internal check

Internal control

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