Tag: accounting in business

Questions Related to accounting in business

Transactions that a business doesn't record in any specialized journal are recorded in which journal or book?

elements of accounts accounting in business journal - book of original entry purchases and sales book meaning and importance of journal

  1. Cash payments journal

  2. Cash receipts journal

  3. Purchases return journal

  4. General journal

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Correct Option: D

Journal is a book of __________.

elements of accounts accounting in business journal - book of original entry purchases and sales book meaning and importance of journal

  1. original entry

  2. all cash transactions

  3. secondary entry

  4. all non-cash transactions

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Correct Option: A

The process of recording a transaction in the journal is called __________.

elements of accounts accounting in business journal - book of original entry purchases and sales book meaning and importance of journal

  1. Posting

  2. Journalising

  3. Tallying

  4. Casting

  5. Balancing

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Correct Option: B

XYZ company purchase an asset that turns out to be defective and was required to be sold as a worn out item. The entry will be made in _______________.

elements of accounts accounting in business journal - book of original entry purchases and sales book meaning and importance of journal

  1. Worn out journal

  2. Cash journal

  3. General journal

  4. None of the above

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Correct Option: C

What will be journal entry when cash is withdrawn from bank for personal use?

elements of accounts accounting in business journal - book of original entry purchases and sales book meaning and importance of journal

  1. Drawings A/c debit, bank A/c credit

  2. Cash A/c debit, drawings A/c credit

  3. Bank A/c debit, drawings A/c credit

  4. Bank A/c debit, capital A/c credit

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Correct Option: A
Explanation:

Drawings are the amounts taken by the owner of a business for his personal use in anticipation of profit. Drawings are usually made in the form of cash, but there could be other assets or goods withdrawn by the owner for his personal use.

Journal Entry will be:-
Drawing A/c Dr. 
   To Bank A/c.

The invoice relating to the acquisition on credit of an Office Equipment for Rs 24,500 from Globe Ltd was entered in the Purchases Journal. To correct this error which of the following needs to be done?

elements of accounts accounting in business meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

  1. A Journal entry: Debit Office Equipment ale and credit Purchases ale with Rs 24,500

  2. No journal entry is needed

  3. Journal entry: Debit Office Equipment ale and credit Globe Ltd ale with Rs 24,500

  4. Journal entry: Debit Globe Ltd ale and credit Office Equipment ale with Rs 24,500

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Correct Option: A

Amit commenced business introducing as his capital furniture worth Rs. 21,000, a car valued at Rs. 30,000 and Rs. 48,000 in cash. The journal entry for recording this would require ____________________.

elements of accounts accounting in business meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

  1. Debit in the three asset accounts, including cash and a credit in the Capital Account

  2. No journal entries

  3. Debit in the two asset accounts other than cash and a credit in the Capital Account

  4. Debit in the cash Account and credit in the Capital Account

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Correct Option: C

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

elements of accounts accounting in business meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

  1. Adjustment entry

  2. Combined journal entry

  3. Either (A) or (B)

  4. Closing entry

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Correct Option: B

Journal is the book of _______ in which every transaction is recorded before being posted into the ledger. 

elements of accounts accounting in business meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

  1. Primary entry

  2. Secondary entry

  3. Third entry

  4. None of above

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Correct Option: A

________are passed in the general journal for transferring an item entered in one account to another account.

elements of accounts accounting in business meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

  1. Transfer Entries

  2. Adjustment Entries

  3. Closing Entries

  4. Opening Entries

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Correct Option: A