Tag: journal proper or general journal

Questions Related to journal proper or general journal

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

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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

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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.

Which of these statements is not true?

elements of accounts subsidiary books - 1 introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

  1. Goods lying with the customers are valued at cost price

  2. Sales and return book is used when the goods are either approved or rejected

  3. Sales or return ledger is a kacha ledger

  4. Sales or return day book is a customer's record

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Correct Option: D

State with reasons whether the following statement is true or false:
Where subsidiary books are maintained journal is not required.

elements of accounts subsidiary books - 1 introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

  1. True

  2. False

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Correct Option: B
Explanation:

Journal is required even when subsidiary books are maintained. This is so because many entries such as opening and closing entry, rectification entry etc are recorded in journal.

Users of subsidiary books of accounts are ________.

elements of accounts subsidiary books - 1 introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

  1. Financial Journalists.

  2. Risk Analysts.

  3. Cost Accountants.

  4. Financial Consultants.

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Correct Option: D

The mistakes in the total of the subsidiary book will _____________.

elements of accounts subsidiary books - 1 introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

  1. not affect the personal account of customers

  2. will affect the personal account of customers

  3. both a and b

  4. none of the above

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Correct Option: A