Tag: sub-division of journal - 2 (subsidiary books)

Questions Related to sub-division of journal - 2 (subsidiary books)

______ are used at the end of the accounting year for closing accounts relating to expenses and revenues.

  1. Transfer Entries

  2. Adjustment Entries

  3. Closing Entries

  4. Opening Entries


Correct Option: C

When obsolete assets are sold on credit, these are originally recorded in the _______________.

  1. Sales day book

  2. Sale Account

  3. General journal

  4. Any of the above


Correct Option: C

Investment was sold on credit for  1,00,000 at par will be recorded in _______________.

  1. Cash book

  2. General journal

  3. Purchases return book

  4. Purchase book


Correct Option: B

State with reasons whether the following statement is true or false:
Closing entries are recorded in journal proper.

  1. True

  2. False


Correct Option: A

The prime entry for reversing a discount allowed to a customer would be in _________.

  1. The credit side of the Cash Book

  2. The Journal

  3. The Sales Day Book

  4. The debit side of the Cash Book


Correct Option: B

When Sales or Return Journal is maintained, a journal entry is passed for _________________.

  1. Goods delivered

  2. Goods returned

  3. Goods approved

  4. None of these


Correct Option: C

'A' owned Rs. 25,000 to 'B' 'A' becomes insolvent. 'B' got A's computer valuing Rs. 11,500 in his full settlement journal entry will be passed in the books of 'B'. 

  1. Purchase A/c Dr. 11,500

    To A 11,500

  2. Computer Dr 11,500

    Bad-debts Dr. 13,500

    To A 25,000

  3. Computer A/c Dr. 25,000

    To A 25,000

  4. Computer A/c Dr. 11,500

    Purchases A/c Dr. 13,500

    To A 25,000


Correct Option: B

Narration is given along with journal entry _____________.

  1. To signify the impact of entry on profitability

  2. To disclose the profit or loss of the transaction.

  3. To give a precise explanation

  4. To secretly understanding the inner meaning of entries


Correct Option: C

Journal records the transaction of the firm in a _____________.

  1. Analytical manner

  2. Chronological manner

  3. Periodical manner

  4. Summarized manner


Correct Option: B

Which of the following account(s) will be affected while rectifying the following error?

Sales to Ram Rs.336 recorded in the books of original entry as Rs.363.

  1. Sales Account

  2. Ram's Account

  3. Cash Account

  4. Both Sales and Ram's Account


Correct Option: D
Explanation:

The amount debited to Ram account is more than what should have been debited. The same goes for the amount credited to Sales account. Hence, Ram and Sales account are affected with overstated value of Rs.27.