Tag: meaning and importance of journal

Questions Related to meaning and importance of journal

Goods Outward Journal is meant for recording all returns of goods _______________.

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

  1. Purchased on credit

  2. Purchased on cash

  3. Sold on credit

  4. Sold on cash

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Correct Option: A

Opening, closing and adjustment entries are recorded in ____________.

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

  1. Purchase Book

  2. Sales Book

  3. Petty Cash Book

  4. Journal Proper

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Correct Option: D

When fixed assets or stationeries are purchased on credit, the entries are passed in the _____________.

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

  1. General journal

  2. Purchase day book

  3. Purchase account

  4. Any of the above

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Correct Option: A

Credit purchase of plant and machinery is recorded in which of the following specialized journals?

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

  1. General Journal

  2. Cash Journal

  3. Purchase Journal

  4. Purchase return Journal

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Correct Option: A

A subsidiary book which is used to record all those business transactions which do not find any place in the purchase book, sales book, return books, cash book, bills receivable and payable book, etc. is called journal proper..

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

  1. True

  2. False

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Correct Option: A
Explanation:

Journal proper is book of original entry (simple journal) in which miscellaneous credit transactions which do not fit in any other books are recorded. It is also called miscellaneous journal. The form and procedure for maintaining this journal is the same that of simple journal.

Stock-in-trade also includes _____________.

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

  1. goods in the process of production for sale

  2. items held as fixed assets

  3. items consumed for daily use

  4. depreciation on fixed assets

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Correct Option: A
Explanation:

Stock-in-trade doesn't include all of a firm's assets when used in the business "

"Stock-in-trade refers to any merchandise or equipment kept on hand and used in carrying on a business. It includes the collection of goods, inventories and merchandise, maintained by a business entity for the purpose of using them for processing, making salable goods or for selling to the customers with an intention to make profit from such deals."

Main object of preparing a 'Journal' is to __________.

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

  1. ascertain the financial position of the business

  2. journalise the cash transactions

  3. make posting in the ledger

  4. record the business transactions first of all

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Correct Option: D
Explanation:

Main objectives of preparing journal: To make permanent and systematic record of all the financial transactions. 

Journal is book of _____________.

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

  1. Analytical record

  2. Chronological record

  3. Alphabetical record

  4. None of above

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Correct Option: B
Explanation:

A journal is known as the original book of entry and is also called the prime entry. All the accounting transactions are first recorded in journal in the order of the transactions taking place. Such order is called a chronological order.

General Journal is a book of entries ______.

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

  1. First

  2. Original

  3. Secondary

  4. Generic

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Correct Option: B
Explanation:

Books of original entry refers to the accounting journals in which business transactions are initially recorded. 

 A journal entry in which two or more account is debited or credited is referred as ________.

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

  1. Journal entry

  2. Multi entry

  3. Additional entry

  4. Compound entry

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Correct Option: D