Tag: elements of book keeping and accountancy

Questions Related to elements of book keeping and accountancy

Return of goods purchased on credit to the suppliers will be entered in _________ journal.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Purchase return

  2. Sales return 

  3. Purchase and sales return 

  4. Goods purchase

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Correct Option: A
Explanation:

Return of goods purchased on credit to the supplier is recorded in the Purchase return journal. Sometimes goods purchased are returned to the supplier for various reasons such as goods are not of the required quality, or are defective, etc. For every return, a debit note is prepared , the original one is sent to the supplier for making necessary entries in his book and on the basis of duplicate copy of debit note entry is recorded in purchase return journal.

A purchased goods costing Rs. 1,00,000. B sold the. goods for Rs. 1,60,000. Profit sharing ratio between A and B being equal, what will be the final remittance ?

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. B will remit Rs. 1,30,000 to A

  2. B will remit Rs. 1,55,000 to A

  3. A will remit Rs. 1,05,000 to B

  4. B will remit Rs. 30,000 to A

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Correct Option: A

If Y takes away goods in personal business under memorandum joint venture method, then he will debit these goods in his books to ________________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Joint venture account

  2. Personal account

  3. Purchases account

  4. Sales A/c

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Correct Option: C

When a large number of articles are sent on a sale or return basis, it is necessary to maintain __________________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Sale journal

  2. Goods returned journal

  3. Sale or return journal

  4. Any one of these

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Correct Option: C

P and Q enter into a Joint Venture sharing profits and losses in the ratio 3:2. P purchased goods costing Rs. 2,00,000. Other expenses of P Rs. 20,000. Q, sold the goods for Rs. 2,00,000. Remaining goods were taken over by Q at Rs. 10,000. The amount of final remittance to be paid by Q to P will be ______________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Rs. 2,10,000

  2. Rs. 2,14,000

  3. Rs. 2,20,000

  4. None

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Correct Option: B

Goods returned by X is entered as __________________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Debit X A/c; Credit purchase return A/c

  2. Debit X A/c; Credit cash A/c

  3. Debit sales return A/c; Credit X A/c

  4. Debit X A/c; Credit sales A/c

  5. Debit sales A/c; Credit Xs A/c

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Correct Option: C

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

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

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

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

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

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

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Correct Option: D

For every entry in journal the transaction can be ___________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. personal

  2. real

  3. nominal

  4. all of the above

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Correct Option: D

The following comments ail relate to the recording process. Which of these statements is correct?

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. The general ledger is a chronological record of transactions.

  2. The general ledger is posted from transactions recorded In the general journal.

  3. The trial balance provides the primary source document for recording transactions into the general journal.

  4. Transposition is the transfer of information from the general journal to the general ledger.

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Correct Option: D

Journal and ledger records transactions in _________________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. A chronological order and analytical order respectively.

  2. An analytical order and chronological order respectively.

  3. A chronological order only

  4. An analytical order only

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Correct Option: A