Tag: functions, advantages, objects and importance of journal

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

The process of recording transaction in different journals is called _______.

  1. Posting

  2. Entry making

  3. Adjusting

  4. Journalizing


Correct Option: D

Which of the following specialized journals records "good returned by customers"?

  1. Purchase journal

  2. Sales journal

  3. Purchases return journal

  4. Sales return journal


Correct Option: D

Goods returned by Mr Y for Rs 10000 passed through the Purchased Return Book. This error will result in _________________.

  1. Increase in gross profit

  2. Decrease in gross profit

  3. No effect on gross profit

  4. Either (a) or (b)


Correct Option: A

Goods returned to X for Rs.10,000 passed through the Sales Return Book. The error will result in ________________.

  1. Increase in gross profit

  2. Decrease in gross profit

  3. No effect on gross profit

  4. Either (a) or (b)


Correct Option: B

Credit purchase of plant and machinery is recorded in_________________.

  1. purchase day book

  2. purchase ledger

  3. cash book

  4. general journal


Correct Option: D

Which of the following actions reflects 'parent ego' as per the concept of Transactional Analysis?

  1. Pondering

  2. Pleasure

  3. Blessing

  4. All of the above


Correct Option: C

The author or the book Suma de Arithmetica is _______________.

  1. H.A. Cassel

  2. Luca Paetolli

  3. Adam Smith

  4. Batliboi


Correct Option: B

Purchase of second-hand computer on credit by a cloth merchant will be recorded in ___________.

  1. Journal

  2. Cash book

  3. Purchase book

  4. None of the above


Correct Option: A

When a large number of articles are sent on a sale or return basis, it is necessary to maintain ________________.

  1. Sale journal

  2. Goods returned journal

  3. Sale or return journal

  4. None of these


Correct Option: C

Accounting entries for the repayment of a loan received from Richard, the owner's friend is _____________________.

  1. Debit Cash account and Credit capital account

  2. Credit cash account and Debit Richard's loan account

  3. Credit cash account and Debit capital account

  4. Debit cash account and Credit Richard's loan account


Correct Option: B
Explanation:

Debit - Loan Account

The debit to the Richard's loan account records the reduction in principal of the loan balance which is the cash repayment less the interest expense.
Credit - Cash Account
Cash has been used to make the the annual repayment to the lender on the due date in accordance with the loan agreement.