Commerce Accountancy

Accounting Principles and Practices

2,324 Questions

Accounting principles and practices involve the preparation of trial balances, ledgers, and bank reconciliation statements. This area tests your knowledge of fundamental accounting concepts and routine business transactions. It is a core section in commerce exams and various competitive tests.

Ledger accountsTrial balance preparationBank reconciliation statementAccounting conceptsPrimary books of accounts

Accounting Principles and Practices Questions

Multiple choice book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

Stimulus: I have finish the report tonight as it is due tomorrow.
Response: You always leave things to the last minutes
How will you classify the above transaction as per concept of transactional analysis ___________.

  1. Adult - Adult

  2. Parent - Adult

  3. Adult - Parent

  4. Child - Adult
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The stimulus is a factual statement about a deadline (Adult ego state). The response is a critical, blaming remark (Parent ego state). Thus, it is an Adult-Parent transaction.

Multiple choice book keeping and accountancy analysis of financial statements financial statement of company rules for recording in journal dual effect of transactions, types of accounts and rules of debit and credit

Stimulus: You have presented a good report.
Response: Thank you.
How will you classify the above transaction as per concept of transactional analysis ________________.

  1. Adult - Child

  2. Adult - Adult

  3. Parent - Parent

  4. Child - Adult
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Both the stimulus and the response are objective, factual, and polite exchanges of information, which is characteristic of the Adult ego state.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Journal proper is used for recording only those transactions as cannot be recorded in any of the other __________ books.

  1. ledger

  2. journal proper

  3. trial balance

  4. subsidiary book
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Journal proper is the book of original entry used for transactions that do not fit into specialized subsidiary books like the cash book, sales book, or purchase book.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

A subsidiary record is a book ________________.

  1. of subsidiary entry.

  2. containing the final account.

  3. of final entry.

  4. of original entry.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Subsidiary books are books of original entry where transactions are recorded for the first time before being posted to the ledger.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Which of the following is/are not subsidiary books ? 

  1. Purchases Returns Book

  2. Cash Book

  3. Journal proper

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Cash Book, Purchases Returns Book, and Journal Proper are all considered subsidiary books in accounting systems.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Which of the following is/are the subsidiary books ? 

  1. Purchases Book

  2. Sales Book

  3. Bills Receivable Book

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Purchases Book, Sales Book, and Bills Receivable Book are all standard subsidiary books used to record specific types of credit transactions.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Sub-divided journal on the basis of nature of transactions like sales, purchases, small cash expenses, etc. are called subsidiary books.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Special Journals (also known as subsidiary journals) are chronological records of frequently occurring transactions such as sales, purchases and cash receipts/payments.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

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

  1. Sales return book

  2. Purchase return book

  3. Sales book

  4. Purchase book
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

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". A duplicate copy of credit note is used to record the transaction in the sales return book and the original copy is sent to the original party who returned the goods i.e. customer.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Which of the following is/are the subsidiary books?

  1. Purchases Returns Book

  2. Sales Returns Book

  3. Cash Book

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
We can divide the subsidiary books into the following types:
  • Cash book.
  • Purchases book.
  • Sales book.
  • Purchases return or return outwards book.
  • Sales return or return inwards book.
  • Bills receivable book.
  • Bills payable book.
  • Journal proper.
Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Which of the following is/are subsidiary books?

  1. Purchases Returns Book

  2. Cash Book

  3. Journal proper

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Different Types of Subsidiary Books
  • Cash book.
  • Purchases book.
  • Sales book.
  • Purchases return or return outwards book.
  • Sales return or return inwards book.
  • Bills receivable book.
  • Bills payable book.
  • Journal proper.
Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

The sub-division of journal into various subsidiary journals in which transactions of similar nature are recorded are called ______________.

  1. Subsidiary books

  2. Ledger

  3. Journal

  4. Analytical record
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The journal is sub-divided into different journals known as the subsidiary books or books of prime entry or books of original entry.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Which of the following is/are the subsidiary books?

  1. Primary Book

  2. Bills Payable Book

  3. Purchases Book

  4. (B) & (C)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
We can divide the subsidiary books into the following types:
  • Cash book.
  • Purchases book.
  • Sales book.
  • Purchases return or return outwards book.
  • Sales return or return inwards book.
  • Bills receivable book.
  • Bills payable book.
  • Journal proper.
Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Which of the following is/are the subsidiary books?

  1. Purchases Book

  2. Sales Book

  3. Bills Receivable Book

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
We can divide the subsidiary books into the following types:
  • Cash book.
  • Purchases book.
  • Sales book.
  • Purchases return or return outwards book.
  • Sales return or return inwards book.
  • Bills receivable book.
  • Bills payable book.
  • Journal proper.