Geography of Slovenia Quiz

Assets sold on credit are entered in sales journal.

Posting from the purchases returns journal requires that the supplier's individual accounts are debited with the amount of returns and the purchases returns account is credited with the periodic total.

Posting to the sales return journal requires that the customer's account be credited with the amount of return and the sales return account be debited with the periodic total in the same way as is done in case of posting from purchase journal.

Accounting and journal entry for credit purchase includes two accounts, Creditor and Purchase.

Assets sold on credit are entered in sales journal.

Return of goods purchased on credit to the supplier is recorded in the Purchase return journal. Sometimes goods purchased are returned to the supplier for various reasons such as goods are not of the required quality, or are defective, etc. For every return, a debit note is prepared , the original one is sent to the supplier for making necessary entries in his book and on the basis of duplicate copy of debit note entry is recorded in purchase return journal.

A spent 1,00,000. Total sales were 1,60,000. Profit is 60,000. Shared equally, each gets 30,000 profit. A invested 1,00,000 and is entitled to 30,000 profit, total 1,30,000. Since B collected 1,60,000, B must remit 1,30,000 to A.

Under the memorandum joint venture method, when a venturer takes goods for personal use, it is treated as a purchase by that venturer and debited to their Purchases account.

When goods are sent on a sale or return basis in large quantities, a separate 'Sale or Return Journal' is maintained to track these transactions until they are finalized as actual sales.

P's total investment = 2,00,000 + 20,000 = 2,20,000. Total sales = 2,00,000 + 10,000 (goods taken by Q) = 2,10,000. Loss = 2,20,000 - 2,10,000 = 10,000. P's share of loss (3/5) = 6,000. Q's share of loss (2/5) = 4,000. Q owes P for goods taken (10,000) and must pay P's net claim. Actually, P spent 2,20,000 and Q collected 2,00,000 cash. Q owes P 2,20,000 - 6,000 (P's loss) = 2,14,000.

When goods previously sold are returned by a customer (X), the transaction is recorded in the Sales Return book, debiting Sales Return A/c and crediting the customer's account (X A/c).

Journalization is indeed the process of converting transactions into debit/credit format for recording. Option A is wrong because debits must equal credits, not exceed them. Option B is incorrect because debits are recorded on the left, not 'felt' (likely a typo for 'left'). Option C is wrong because the chart of accounts only lists account names and numbers, not debit/credit amounts.

Journal entries can involve personal accounts (individuals/entities), real accounts (assets), and nominal accounts (expenses/incomes/gains/losses).

The journal records transactions chronologically as they occur, while the ledger organizes them analytically by account type.

The act of recording a transaction in the journal is formally called journalizing.

The matching principle requires that expenses incurred to earn revenue must be recognized in the same period as the revenue. By only accounting for 9/10 of the costs against the revenue from 9/10 of the goods, the company failed to match the full cost of goods sold.

The principle of conservatism (prudence) dictates that inventory should be valued at the lower of cost or net realizable value. Valuing at cost when market value is lower violates this principle.

A debit note issued to a supplier for goods returned is recorded in the Purchases Return Book (also known as the Returns Outward Book).

According to the historical cost concept, fixed assets are recorded at their original cost, and the present value is not adjusted for market fluctuations unless there is an impairment or specific accounting standard requirement.

The Bills Receivable Book is a subsidiary book specifically designed to record the details of all bills of exchange received from debtors.

The Bills Payable Book is the specialized journal used to record the details of all bills of exchange accepted by a business to pay its creditors.

Capital expenditure (extension of premises) was wrongly debited to a revenue account (Building Repairs). To rectify, we must debit the asset account (Building) and credit the incorrectly debited expense account (Building Repairs).

When an endorsed cheque is dishonoured, the debtor (Rao) must be debited for the full amount (7,330 + 70 = 7,400) and the creditor (Sen) must be credited for the full settlement amount (7,500). The difference (100) represents the lost discount, which is adjusted through the Profit & Loss Adjustment account.

Conversion cost includes direct labour and manufacturing overhead. Given conversion cost is Rs. 25,000 and direct manufacturing labour is Rs. 17,000, manufacturing overhead must be the difference: Rs. 25,000 - Rs. 17,000 = Rs. 8,000. The question appears to have some repetition in the text but the calculation is straightforward.

The reorder point formula relates to the lead time. Dividing the reorder point by the usage rate per unit of time yields the lead time (purchase order lead time).

In incremental revenue allocation, the first product is the primary product, and subsequent products are ranked as first, second, etc., incremental products.

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

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.

Amount which is deducted by the seller from the amount due at the time of the receipt is called cash discount. it is given to encourage prompt payment.

A compound journal entry is an accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits.

A purchase return account shows the credit balance. Purchase return represents the amount of goods returned to the supplier. 

Accounting is based on double entry system. that means every transaction will have two impact. When only two accounts are involved, its called simple entry.

A short explanation of each transaction is written under each entry which is called narration. The subject matter of the transaction can be ascertained through narration. Besides this, if there is any mistake in determining debit or credit aspect of a transaction, it can be easily detected from narration. "A journal entry is not complete without narration".

The source document, on the basis of which the transaction are recorded in the Purchase book, is called inward invoice, bill, or credit memo. It is received by a firm from the supplier of goods when the credit purchases are made. It contains the quality of the goods, rate, amount etc. and serial number that is recorded in the purchase book.

Purchase return day book is also called as Purchase return book or Purchase return journal or Purchase return register. All purchase return vouchers are recorded in purchase return day book. The totals of purchase returns book is posted to the ledger on credit side of the Purchases return A/c.

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.

When defective goods are returned by the customer a note is prepared by a supplier which is called as "credit note". This note is prepared and sent to customer indicating that his/her account has been credited in firm's books. A duplicate copy of the credit note is retained and used as a source document for recording the transactions in the books of accounts. 

When goods are returned, a debit note is prepared and is sent to the supplier with the returned goods. An original copy is sent to the supplier, informing him of the amount for which his account has been debited on account of the returned goods. A duplicate copy of the debit note becomes the source document, on the source document, on the basis of which entries are recorded in the Purchases Returned Book. Thus, a debit note is required for recording the transactions in the Purchases Return Book.

Current cost of machinery refers to the cost of machinery on today's date. 

Goods sold on credit when returned by the customer is recorded in returned inward book or sales return book. Sales return book shows a debit balance as it is reverse to the sales, which has credit balance. When the goods are returned by the customer one note is prepared which is called as "Credit note". The returned outward book is used to record return of goods purchased on credit.

A debit note is prepared when the goods are returned and is sent to the supplier with the returned goods. An original copy is sent to the supplier and on the basis of duplicate copy the transaction is recorded in the purchase return book. debit note informs supplier about the amount for which his account has been debited on account of returned goods. Thus, a debit note is required for recording the transactions in the purchase return book and not credit note is used to record the transaction related to sales returned.

The analysis of transactions into debits and credits is the first step in the accounting cycle, which occurs during the journalizing process.

The Journal Entry will be..

Cash a/c Dr. 1200
Bad dept  a/c Dr 800
To Ram a/c.                  2000

A joint venture is an arrangement in which two or more parties agree to pool their resources for the purpose of a specific task or transaction.

A joint venture account is prepared for measurement of venture profit. This account is debited with all venture expenses and credited with all sales or collections. The excess balance of credit side over the debit side shows the profit on joint venture and vice versa. Profit /Loss are transferred to co-venturers’ accounts in the profit-sharing ratio.

Goods bought on joint venture as well as expenses incurred in connection with the business are debited to the joint venture account and credited to the seller's account or the joint bank account.

When goods are in transit and ownership has passed to the buyer, they should be recorded as an asset (Goods-in-transit) with a corresponding liability to the supplier.

Bills Receivable Book also known as a B/R book. 

According to money measurement concept, commission payable to a salesman is to be recorded in the books of accounts. It states that only those transactions should be recorded in the books of accounts that are capable of being measured in monetary terms.

A journal may be defined as the book of original or prime entry containing a chronological record of the transactions from which posting is done to the ledger. The transactions are recorded first in the journal in the order in which they occur. The process of recording the transactions in a journal is called as journalizing.

 In bookkeeping and accounting, a ledger is a book (or record) for collecting historical transaction data from a journal and organizing entries by account. The ledger provides the transaction history and current balance in each accounting system account, throughout the accounting period.

The customer may return the goods. 

Thus, goods sold that are returned by the customer or buyer, are recorded in the Sales Return Book. 

The Credit Note contains the name of the customer, details of goods returned and reason thereof. Each Credit Note is dated and serially numbered.

When the goods purchased on credit are returned to the supplier, these are recorded in the Purchase return book. Sometimes, goods purchased can be defective or of low quality, etc. and hence, need to be returned. A separate book is maintained for the purchase return and these are not deducted from the purchases in the Purchase book. Also, Purchase return is recorded at the net amount on the invoice.

Profit on sale of furniture account is a nominal account the golden rule regarding which says “ All expenses and losses should be debited and all income and gains should be credited” as we are earning income from selling we have to credit this account.

Cash A/c Dr.

To Sales A/c.

The total of the Purchases Return Book represents goods returned to suppliers, which reduces purchases; therefore, it is credited to the Purchases Returns Account.

Since the goods are at the buyer's risk, the sale is considered complete, and the revenue is recognized. The goods are no longer part of the seller's inventory.

Journalizing is the process of recording a business transaction in the accounting records. This activity only applies to the double-entry bookkeeping system.  

This calls for the identification of the general ledger accounts that will be altered as a result of the transaction.

A supplier when an order is received, this may be due to poor quality, inaccurate quantity, untimely delivery or other reasons. 

Purchase returns are also called returns outward and an appropriate purchase returns/returns outward book is maintained.

All returns are primarily recorded in the purchase returns book unless the returns are not that frequent, in which case they are recorded in the journal.

Accounts Receivable (AR) is the proceeds or payment which the company will receive from its customers who have purchased its goods & services on credit. Usually the credit period is short ranging from few days to months or in some cases maybe a year.

A debit note is a document used by a vendor to inform the buyer of current debt obligations, or a document created by a buyer when returning goods received on credit. The debit note can provide information regarding an upcoming invoice, or may serve as a reminder for funds currently due.

Journalizing is the process of recording financial transactions in the journal or specialized journals.

The Sales Return Journal is the specialized book used to record goods returned by customers.

Recording a sales return in the Purchases Return Book means the return is treated as a reduction in purchases rather than a reduction in sales. This artificially inflates the cost of goods sold calculation, leading to an increase in reported gross profit.

Recording a purchase return in the Sales Return Book reduces sales instead of reducing purchases. This results in an understated sales figure and an overstated cost of goods sold, thereby decreasing the gross profit.

Specialized journals like the Purchase Day Book are only for credit purchases of stock. Credit purchases of assets like plant and machinery must be recorded in the General Journal.

In Transactional Analysis, the Parent ego state is characterized by behaviors such as nurturing, controlling, or blessing, reflecting internalized values and rules.

Luca Pacioli is the author of 'Summa de Arithmetica', which contains the first published description of the double-entry bookkeeping system.

The Purchase Book is only for credit purchases of goods (stock). Credit purchases of assets are recorded in the Journal Proper.

When goods are sent on a sale or return basis, a separate 'Sale or Return Day Book' is maintained to track these transactions until they are confirmed as sales.

Debit - Loan Account

When goods are approved, they are removed from the Sale or Return Day Book and recorded in the Sales Day Book to finalize the revenue recognition.

When the goods sold are return back to the vendor it is recorded in sales return book. buyer may return the goods due to poor quality of goods or inaccurate quantity or other reasons etc. It is also called as return inwards. All returns are primarily recorded in sales return book unless the returns are not the frequent, in which case they are recorded in the Journal. After updating transactions in sales return book, the total of the items is transferred to ledger in an account called the "Sales Returns A/c".

When the business transactions take place, the first step is to record the same in the books of original entry or subsidiary books or books of prime or journal. Thus, journal is a simple book of accounts in which all the business transactions are originally recorded in chronological order and from which they are posted to the ledger accounts at any convenient time. Journalisisng refers to the act of recording each transaction in the journal and the form in which its is recorded, is known as a journal entry.

Purchase return day book is a subsidiary book in which all the credit  purchases returns are recorded. It has 05 columns. At the end of a specific period, the total of purchase return day book is posted to credit side of purchase a/c in ledger.

When goods are received back from customer which are sold on credit, a note is prepared and the original copy of the same is sent to the party that  returned the goods, i.e. the customer. This note is termed as credit note because the customer from whom the goods are received back, his/her account is credited with the amount written in the note and on the basis of  duplicate copy of credit note the transaction is recorded in the sales return books by the supplier.

Return of goods, purchased on credit is recorded in the purchase return book. Purchases book shows a debit balance, so the purchases return book will definitely show a credit balance, because purchases return book will definitely show a credit balance, because purchase return is entirely reverse to purchase.