Commerce Accountancy · Economics

Journal Entries and Depreciation

596 Questions

Journal entries and depreciation are core accountancy topics involving the systematic recording of financial transactions and the calculation of asset value reduction over time. Students must solve problems related to bad debts, provision calculations, and error rectification. These questions are essential for candidates appearing in commerce and accounting competitive exams.

Bad debts provisionAsset depreciation calculationPurchase return errorsTrial balance rectificationDebenture issuance

Journal Entries and Depreciation Questions

Multiple choice commercial applications accounting procedures - rules of debit and credit golden rules of debit and credit (traditional approach) types of account meaning and classification of accounts

Salary paid to Ram will be debited to Ram's Personal account.

  1. True

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

Salary paid to Ram will be debited to salary A/c instead of Ram's Personal A/c. The correct Journal Entry is
Salary A/C                 Dr.
To Cash A/c
(Being salary paid to Ram)

Multiple choice political science problem of unemployment in india introduction and features of unemployment quality of population unemployment- types, causes and measures

From the following find out the missing Figures -

WPR PU LFPR Unemployed 
Us 392 8 ? ?
CWS ? 14 384 ?
CDS 341 ? 365 ?
  1. \$400&2% ; 370&6% ; 24&6%\$
  2. \$341&6.6% ; 400&2.1% ; 370&3.6%\$
  3. \$24&2.1% ; 400&76.6% ; 370&2%\$
  4. \$400&2.1% ; 340&3.6% ; 20&2.3%\$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The table requires calculating Work Participation Rate (WPR), Population Units (PU), and Labour Force Participation Rate (LFPR). Based on standard economic definitions and the provided values, option A provides the consistent set of figures for the missing data points.

Multiple choice commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

A company sends its cars to dealers on sale or return basis. All such transactions are, however, treated like actual sales and are passed through the sales day book. Just before the end of the financial year, two cars which had cost Rs 50,000 each have been sent on 'sale or return' and have been debited to customers at Rs 80,000 each. Cost of goods lying with the customers will be _______________.

  1. Rs 1,00,000

  2. Rs 1,60,000

  3. Rs 50,000

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The cars sent on sale or return are still inventory of the company until the customer accepts them. They must be valued at cost. Since there are 2 cars at Rs 50,000 cost each, the total value is Rs 1,00,000.

Multiple choice commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

A merchant sends out his goods casually to his dealers on approval basis. All such transactions are, however, recorded as actual sales and are passed through the sales book. On 31.12.2006, it was found that 200 articles at a sale price of 200 each sent on approval basis were recorded as actual sales at that price. The sale price was made at cost plus 25%. The amount of stock (at cost) on approval will be ______________.

  1. Rs 32,000

  2. Rs 40,000

  3. Rs 30,000

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The sale price is cost + 25% of cost. If sale price is 200, then 1.25 * Cost = 200, so Cost = 160 per article. Total cost for 200 articles = 200 * 160 = 32,000.

Multiple choice commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

Rs. 1,000 being the monthly total of discount allowed to customers was credited to discount account in the ledger. If rectification is done before preparation of trial balance then which of the following is correct? 

  1. Discount A/c Dr. 2,000
    To Suspense A/c 2,000

  2. Discount A/c Dr. 1,000
    To Suspense A/c 2,000

  3. Credit the Discount Account with Rs. 2,000 saying "To Rectification of wrong credit of Rs. 1,000 for discount allowed.... Rs. 2,000.

  4. Debit the Discount Account with Rs. 2,000 saying "By Rectification of wrong credit of Rs. 1,000 for discount allowed.... Rs. 2,000.
Reveal answer Fill a bubble to check yourself
D Correct answer
Multiple choice commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

An entry for the goods sold to Madhav for Rs. 1,020 was posted to his account as Rs. 1,200. If rectification is done before preparation of trial balance then which of the following is correct? 

  1. Supense A/C Dr. 180
    To Madhav A/C 180

  2. Profit & Losdd Adj. A/c Dr. 180
    To Madhav A/c 180

  3. Credit Madhav with Rs. 180 saying "By Excess debit for sales Rs. 180"

  4. Debit Madhav with Rs. 180 saying "To Excess debit for sales Rs. 180"
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The sale was 1,020 but recorded as 1,200, meaning Madhav's account was over-debited by 180. To rectify this before the trial balance, we must credit Madhav's account to reduce the balance, noting the reason for the adjustment.

Multiple choice commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

Total sales during the financial year amounted to Rs. 25 lakh out of which Rs. 20 lakh accounted for in the same financial year and remaining in next financial year when the debtors were realized. The firm is following ______ system of Accounting.

  1. Mercantile

  2. Cash

  3. Hybrid

  4. Ad-hoc system
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cash accounting is an accounting method in which payment receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid.

Multiple choice commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

Bank balance as per cash book of ABC Enterprises as on 31st March, 2013 is f 1,500. Cheques deposited with bank but not cleared amount to f 100 and cheques issued but not presented for payment amount to f 150. The bank allowed interest amounting to Rs.50 and collected dividend Rs.50 on behalf of ABC Enterprises. Balance as per pass book should be ____________.

  1. Rs. 1,600

  2. Rs. 1,850

  3. Rs. 1,450

  4. Rs. 1,650
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cash book balance = 1500. Add cheques issued but not presented (+150). Subtract cheques deposited but not cleared (-100). Add interest allowed (+50). Add dividend collected (+50). 1500 + 150 - 100 + 50 + 50 = 1650.

Multiple choice economics emerging issues in indian economy industrial development in india need and growth of industrialisation secondary sector : industry

The approximate breakup of Revenue from Freight Segment and Passenger Segment of Indian Railways is?

  1. $50\%-50\%$
  2. $10\%-90\%$
  3. $90\%-10\%$
  4. $70\%-30\%$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Indian Railways generates the majority of its revenue from the freight segment, which accounts for approximately 70 percent, while the passenger segment contributes about 30 percent.

Multiple choice commercial studies concept of market and marketer meaning and importance of marketing meaning and definition of market introduction to marketing marketing environment meaning and definition of marketer role of marketing

Choose the correct answers from the following alternatives given
Arun had deposited a bag in the cloak room of a railway station by paying Rs. 650. On the face of the ticket, issued to him were inscribed see reverse for terms & conditions. Clause 10 of the printed Terms & Conditions limited the liability of the company for loss of a baggage to Rs. 100. The bag was lost and Arun claimed Rs. 650 as its value.

  1. Arun was not bound by the conditions on the back of the ticket as he had not read them at all.

  2. Arun was bound by the conditions on the back of the ticket even if he had not read them.

  3. Arun was not bound by the conditions on the back of the ticket as his claim was 13 times more than the compensation offered to him by the railway company.

  4. Arun was bound by the conditions on the back of the ticket as he had not read them in full.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under contract law, if a person accepts a ticket with terms and conditions printed on it, they are bound by those terms even if they did not read them, provided the ticket gave reasonable notice.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

Purchase of furniture on cash for  Rs $1,50,000$ will be recorded in _____________.

  1. Sales Book

  2. Purchase Book

  3. General journal

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

Any transaction involving the payment or receipt of cash must be recorded in the cash book. Even though furniture is an asset, because it was purchased for cash, it is entered in the cash book rather than the purchase book (which is only for credit purchases of goods) or the general journal.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

An allowance of Rs $50$ was offered for an early payment of cash of Rs $1,050$. It will be recorded in ____________.

  1. Sales Book

  2. Purchase Book

  3. Journal Proper(General Journal)

  4. Cash Book
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cash discounts (allowances for early payment) and the associated cash receipts or payments are recorded directly in the cash book, specifically in the discount column of a multi-column cash book. Therefore, this transaction is recorded in the cash book.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

Received cash of Rs $2,00,000$ from debtors for settlement of credit sales will be recorded in ______________.

  1. Sales Book

  2. Purchase Book

  3. Journal Proper (General Journal )

  4. Cash Book
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Any transaction that results in an actual receipt of cash is recorded in the cash book. Since cash is received from debtors, this transaction is entered on the receipt (debit) side of the cash book.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

Rs $3,50,000$ cash paid to creditors for settlements of credit purchases will be recorded in _______________.

  1. Sales Book

  2. Purchase Book

  3. Journal Proper (General Journal)

  4. Cash Book
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Any transaction involving a cash payment is recorded on the payment (credit) side of the cash book. Since this transaction involves paying cash to creditors, it must be recorded in the cash book.

Multiple choice elements of book keeping and accountancy recording and posting of cash transactions explain the purpose of maintaining a cash book introduction, meaning and importance of cash book meaning and advantages of cash book

Sold furniture on cash for Rs $1,50,000$ will be recorded in ______________.

  1. Sales Book

  2. Purchase Book

  3. Journal Proper (General Journal)

  4. Cash Book
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The sale of an asset like furniture for cash results in a cash receipt, which must be recorded in the cash book. The sales book is only used for recording credit sales of goods (trading inventory), not cash sales of fixed assets.