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

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

Journal proper maintained to record transactions which _______.

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. Do not find place

  2. Have large amount

  3. Special in nature

  4. All of the above

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Correct Option: A
Explanation:

Journal proper is a residuary book wherein all those transactions are recorded which cannot be recorded in any of the subsidiary books namely purchase book , purchase return book , sales book , sales return books , cash book. In other words all those transactions which do not find place anywhere are recorded in Journal proper.

While posting in cash payment journal ___________________.

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. Only the individual accounts are posted

  2. The individual accounts are debited and also the total of the cash column is credited

  3. Only the individual accounts are credited and there is no need to post the total of the cash column

  4. Only individual accounts are credited and the total of the cash column is debited

Show answer
Correct Option: B
Explanation:

 A cash payment journal is a special journal. Cash payment journal or cash disbursement journal is used to record all cash payments made by the business. All transactions during which you spend funds. For example, if you paid cash to any of your creditors, you would record it in your cash payment journal. Hence, the individual accounts are debited and also the total of the cash column is credited.

Transaction in respect of consignment and joint venture 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. Purchase book

  3. Journal proper

  4. Sales book

Show answer
Correct Option: C

Credit purchase of machinery is recorded in the ___________.

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 book

  2. Cash book

  3. Journal proper

  4. Return outward book

Show answer
Correct Option: C
Explanation:

A book maintained to record transactions, which do not find place in special journals, is known as Journal Proper or Journal Residual.

Following transactions are recorded  in this journal:

1. Opening entry: In order to open a new set of books in the beginning of new accounting year and record therein opening balances of assets, liabilities and capital, the opening entry is made in the journal.

2. Adjustment Entries: In order to update ledger account on accrual basis, such entries are made at the end of the accounting period, such as Rent outstanding, Prepaid insurance, Depreciation and Commission received in advance.

3. Other entries: The following transactions is done in the journal proper:
(i) At the time of dishonor of a cheque the entry for cancellation for discount received or discount allowed
(ii) Purchase/sale of items on credit other than goods
(iii) Goods withdrawn by the owner for personal use
(iv) Goods distributed as samples for sales promotion
(v) Endorsement and dishonour of bills of exchange
(vi) Loss of goods by fire/theft/spoilage

An additional information provided below the Trial balance is known as ________.

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. Information

  2. Adjustments

  3. Rectification

  4. Closing

Show answer
Correct Option: B
Explanation:

The additional information that is provided after the completion of the trial balance are known as adjustments. 

Sometimes, When financial statements are prepared, some items are either not recorded in the books. Hence, financial  statements do not depict the true and fair view of the financial position of the business. 
Thus, in order to get a clear financial picture, these adjustments are provided as additional information and entries passed for such transactions are called adjusting entries.

Ledger posting is not necessary for 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. True

  2. False

Show answer
Correct Option: B
Explanation:

A journal proper is the residual book that records all the transactions that cannot be recorded in any other subsidiary book. 

For example, if machinery is purchased on credit, it can neither be recorded in the cash book nor the purchase book. 
The reason is that the cash book only records cash transactions and the purchase book records only credit purchase of goods and not the purchase of assets. 
Therefore, purchase of machinery on credit will be recorded in the journal proper. Once the entry is recorded in the journal proper, it will be posted in the respective ledger accounts.

A bills receivable received from a debtor is dishonoured on due date will be 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. Purchases Return Book.

  2. Bills receivable Book.

  3. Purchases Book.

  4. Journal Proper (General Journal).

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Correct Option: D

Unpaid salary Rs. 200 is to be provided for in the accounts by entry in the ____________.

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. bill receivable book

  2. purchases book

  3. journal proper (General Journal)

  4. purchases return.

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Correct Option: C

Purchases for office furniture on account is 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. general journal

  2. cash book

  3. purchases book

  4. sales book

Show answer
Correct Option: A
Explanation:

Cash purchases are recorded in the Cash Book. Other purchases such as purchases of office equipment, furniture, building, are recorded in the journal proper if purchased on credit or in the cash book if purchased for cash.  On account is an accounting term that denotes the furniture or asset or service is purchased on credit.

Total of journal proper will be debited to __________.

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 account

  2. customer's account

  3. supplier's account

  4. none of these

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Correct Option: D