Tag: functions, advantages, objects and importance of journal

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

_______ is used to record the details of bills receivable by the business organization. 

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. Purchases Book

  2. Bills Payable Book

  3. Bills Receivable Book

  4. None of the above

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Correct Option: C

A purchase of goods from Nathan amounting to Rs. 3,000 has been wrongly entered in the Sales Book. However Nathan Account has been correctly credited. Which of the following rectification entry 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. Sales A/c Dr. 3,000

    To Nathan A/c 3,000

  2. Purchases A/c Dr. 3,000

    To Sales A/c 3,000

  3. Sales A/c Dr. 3,000

    Purchases A/c Dr. 3,000

    To Suspense A/c 6,000

  4. Sales A/c Dr. 3,000

    Purchases A/c Dr. 3,000

    To Nathan A/c 6,000

Show answer
Correct Option: B

_______is used to record the particulars of all the bills payable accepted by the business organization for the purpose of paying amounts due to its creditors.

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. Journal proper

  2. Bills Payable Book

  3. Bills Receivable Book

  4. Sales Book

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Correct Option: B

A contractor's bill for extension of premises amounting to Rs. 27,500 has been debited to Building Repairs Account. Which of the following rectification entry 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. Budding A/c Dr. 27,500

    To Building Repairs A/c 27.500

  2. Building A/c Dr. 27,500

    To Suspense A/c 27,500

  3. Building Repairs A/c Dr. 27,500

    To Suspense A/c 27,500

  4. Building Repairs A/c Dr. 27,500

    To Building A/c 27,500

Show answer
Correct Option: A

A cheque for Rs. 7,330 was received from Rao after allowing him a discount of Rs. 70. It was endorsed in favour of Sen in full settlement of Rs. 7,500. The cheque was dishonoured, but no entry for dishonour was passed in the books. If this error located after preparation of final account then which of the following rectification entry 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. Rao A/c Dr. 7,400

    Profit & Loss Adj. A/c Dr. 100

    To Sen A/c 7,500

  2. Rao A/c Dr. 7,400

    Profit & Loss Adj. A/c Dr. 100

    To Suspense A/c 7,500

  3. Rao A/c Dr. 100

    Profit & Loss Adj. A/c Dr. 7,400

    To Sen A/c 7,500

  4. Rao A/c Dr. 100

    Profit & Loss Adj A/c Dr. 7,400

    To Suspense A/c 7,500

Show answer
Correct Option: A

If conversion cost is 25000 and direct manufacturing labour cost is 25000 and direct manufacturing labour cost is 17000, then manufacturing overhead cost would 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. $14, 700

  2. $68, 000

  3. $8, 000

  4. $42, 000

Show answer
Correct Option: C

Reorder point is divided by number of sold units for per unit of time to calculate ________________.

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. relevant carrying cost

  2. relevant ordering cost

  3. purchase order lease time

  4. number of purchase orders

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Correct Option: C

Second ranked product in incremental revenue allocation method 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. primary product

  2. First incremental product

  3. Second incremental product

  4. Third incremental product

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Correct Option: B

Account current is a journal.

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. True

  2. False

  3. Partly true

  4. Partly false

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Correct Option: B
Explanation:

Account current is a type of account that is ongoing between the two parties. Its a kind of summary report. Its not a journal.

Subsidiary book in which return of goods purchased on credit is recorded ____________.

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. Sales book

  2. Purchase book

  3. Sales return book

  4. Purchase return book

Show answer
Correct Option: D
Explanation:

Return of goods, purchased on credit is recorded under Purchase Return Book or return outward book. Purchase book shows a debit balance, so purchase return book will show credit balance. While returning the goods buyer sent a "debit note" to the seller. The debit note contains the quantity of returned goods and reason of returning goods. The original copy of debit not is sent to the supplier for making necessary entries in his book and on the basis of duplicate copy entries are made in Purchase return book.