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

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

Which of the following is entered in the journal proper?

book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

  1. Trade discount allowed

  2. Trade discount received

  3. Cash discount allowed

  4. Opening entry

Show answer
Correct Option: D
Explanation:

Journal is sub-divided into various subsidiary books  such as Sales book, Purchase book, Cash book etc., The journal becomes the residuary book in which only those transactions are recorded that cannot be recorded in any other subsidiary book. This type of journal is called Journal Proper. The following types of entries are recorded in journal proper:

a. Closing entries
b. Opening entries
c. Rectification entries
d. Adjustment entries
e. Transfer entries etc.

Which of the following is entered in the journal proper?

book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

  1. Purchase of an asset for cash

  2. Purchase of an asset on credit

  3. Purchase of goods for cash

  4. Purchase of goods on credit

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Correct Option: B
Explanation:

Purchase of assets or stationery is not meant for resale and will be held for a long term and increase the profit-earning capacity of the business over various accounting periods. Hence, transactions related to purchase of assets or stationery will be recorded in the journal proper. Whereas, purchase of assets for resale in which business deals are recorded under purchase book.

Which of these are recorded in journal proper?

book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

  1. Transfer entry

  2. Opening/Closing entry

  3. Rectifying entry

  4. All the three

Show answer
Correct Option: D
Explanation:

When the journal is sub-divided into various subsidiary books, such as sales book, Purchase book, etc.,the journal becomes the residuary book in which only those transactions are recorded that cannot be recorded in any subsidiary book. This type of journal is called Journal proper. The following types of entries are recorded in Journal proper:

1. Closing entry
2. Opening entry
3. Rectification entries
4. Transfer entries
5. Adjustment entries
6. Miscellaneous entries
Thus, cash discount received or allowed is recorded in the Journal proper.

Closing entries are recorded in __________.

book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

  1. cash book

  2. ledger

  3. journal proper

  4. balance sheet

Show answer
Correct Option: C
Explanation:

Journal is sub-divided into various subsidiary books  such as Sales book, Purchase book, Cash book etc., The journal becomes the residuary book in which only those transactions are recorded that cannot be recorded in any other subsidiary book. This type of journal is called Journal Proper. The following types of entries are recorded in journal proper:

a. Closing entries
b. Opening entries
c. Rectification entries
d. Adjustment entries
e. Transfer entries etc.