Tag: functions, advantages, objects and importance of journal

Questions Related to functions, advantages, objects and importance of journal

Goods returned by X is entered as __________________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Debit X A/c; Credit purchase return A/c

  2. Debit X A/c; Credit cash A/c

  3. Debit sales return A/c; Credit X A/c

  4. Debit X A/c; Credit sales A/c

  5. Debit sales A/c; Credit Xs A/c

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Correct Option: C

The following comments below relate to the recording of journal entries. Which statement is true?

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. For any given journal entry, debits must exceed credits.

  2. It is customary to record credits on the felt and debits on the right

  3. The chart of accounts reveals the amount to debit and credit to the affected accounts

  4. Journalization is the process of converting transactions and events into debit/credit format.

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Correct Option: D

For every entry in journal the transaction can be ___________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. personal

  2. real

  3. nominal

  4. all of the above

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Correct Option: D

The following comments ail relate to the recording process. Which of these statements is correct?

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. The general ledger is a chronological record of transactions.

  2. The general ledger is posted from transactions recorded In the general journal.

  3. The trial balance provides the primary source document for recording transactions into the general journal.

  4. Transposition is the transfer of information from the general journal to the general ledger.

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Correct Option: D

Journal and ledger records transactions in _________________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. A chronological order and analytical order respectively.

  2. An analytical order and chronological order respectively.

  3. A chronological order only

  4. An analytical order only

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Correct Option: A

The process of recording transaction in journal is termed as ___________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Balancing

  2. Posting

  3. Journalizing

  4. None of above

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Correct Option: C

X Ltd., purchased goods for Rs.5,00,000 and sold 9/$10^{th}$ of the value of goods for Rs. 6,00,000. Net expenses during the year were Rs. 25,000. The company reported its net profit as Rs. 75,000. Which of the following concept is violated by the company?

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Realization

  2. Conservation

  3. Matching

  4. Accrual

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Correct Option: C

A businessman purchased goods for Rs.25,00,000 and sold 80% of such goods during the accounting year ended $31^{st}$ March, 2019. the market value of the remaining goods was Rs.4,00,000. He valued the closing stock at cost. He violated the concept of _________________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Periodicity

  2. Conservatism

  3. Money measurement

  4. Cost

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Correct Option: B

A debit note for Rs $20,000$ issued to Mr. Z for goods returned by us is to be accounted for in _______________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Bills Receivable Book

  2. General Journal

  3. Purchases Return Book

  4. Purchase Book

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Correct Option: C

Mohan purchased a machinery amounting Rs.10,000 on 1.4.2010.
On 31.3.2019, similar machinery could be purchased for Rs.20,000 but the realizable value of the machinery (purchased on 1.4.2010) was estimated at Rs.15,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs 12,000.
The present value of machinery is ______________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Rs 10,000

  2. Rs 20,000

  3. Rs 15,000

  4. Rs 12,000

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Correct Option: D