Tag: elements of accounts

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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

Following are the sales return of Jindal & Co. a saree dealer:
05.01.2016 - Goyal & Co. Rampur returned 2 Polyster sarees @ 125 each
10.01.2016 - Accepted return of goods by Garf & Co. 2 Kota sarees @ 50 
17.01.2016 - Mittal & Co. Hissar returned 2 silk sarees @ 325
31.01.2016 - Mohan returned one typewriter @ 500
Total of sales returns book will be _____.

  1. Rs.900

  2. Rs.800

  3. Rs.1000

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

Particulars | Credit Note No. | L.F. | Amount | | --- | --- | --- | --- | --- | | 5th Jan 2016 | Goyal & Co. Rampur returned 2 Polyster sarees @ 125 each |   |   | 250 | | 10th Jan 2016 | Return of goods by Garf & Co. 2 Kota sarees @ 50   |   |   | 100 | | 17th Jan 2016 | Mittal & Co. Hissar returned 2 silk sarees @ 325 |   |   | 650 | | 31st Jan 2016 | No Entry |   |   | - | |   | Total of Sales Return book |   |   | 900 |

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

State with reasons whether the following statement is true or false:
The return of goods by a customer should be debited to Return Outward Account.

  1. True

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

Return of goods by a customer is a Sales Return (Return Inward), which is debited to the Sales Return Account. Return Outward refers to the return of goods to a supplier (Purchase Return).

Multiple choice elements of accounts ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

Loose-Leaf Ledgers are also known as _____________.

  1. Impersonal Ledgers

  2. Personal Ledgers

  3. Perpetual Ledgers

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Loose-leaf ledgers are designed to allow for the addition or removal of pages, which is why they are often referred to as perpetual ledgers.

Multiple choice elements of accounts ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

In the Sale or Return Ledger _________________.

  1. All the customers are individually debited and the sale or return account is credited with the periodical total of the Sale or Return Day Book.

  2. All the customers are debited in total and the sale or return account is credited with the periodical total of the Sale or Return Day Book.

  3. All the customers are individually debited and the sale or return account is also credited with the individual total of the Sale or Return Day Book.

  4. Any one of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In a Sale or Return Ledger, individual customer accounts are debited for goods sent on sale or return, and the total is credited to the Sale or Return account to track the status of these goods.

Multiple choice elements of accounts ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

Sale or Return Day Book and Sale or Return Ledger are known as ______________.

  1. Principal Books

  2. Subsidiary Books

  3. Memorandum Books

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

The Sale or Return Day Book and Ledger are considered memorandum books because they are used to record transactions that are not yet final sales, serving as a temporary record.

Multiple choice elements of accounts ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

Ledger is the ______ of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded. 

  1. Principal book

  2. Primary entry book

  3. Third entry book

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

The ledger is the principal book of accounts where all transactions are classified and summarized by account type, making it the central record for all financial data.

Multiple choice elements of accounts ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

_______ is the principal book of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded. 

  1. Ledger

  2. Journal

  3. Purchases return books

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

The ledger is the principal book of accounts because it contains all the accounts of a business, allowing for the classification of transactions by person, property, revenue, or expense.

Multiple choice elements of accounts ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

Which is recorded in the purchases ledger?

  1. Cash paid to a creditor

  2. Cash purchases

  3. Cheque received from a debtor

  4. Purchase of fixed assets
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The purchases ledger tracks transactions with creditors. Cash paid to a creditor is a transaction that affects the creditor's account, so it is recorded in the purchases ledger.

Multiple choice elements of accounts ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

Which ONE of the following, in a classified form, contains permanent records of all transactions?

  1. Cash Book

  2. Sales Day Book

  3. Journal

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

The ledger is the final book of entry where transactions from the journal are posted and classified into permanent accounts, providing a summarized record of all business activities.

Multiple choice elements of accounts ledger and posting explain the concept of ledger and its importance in accounting process. introduction to ledgers ledgers

Which of the following is not a book of prime entry?

  1. Cash book

  2. Returns Inwards Day Book

  3. The Petty Cash Book

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

Books of prime entry (or original entry) are where transactions are first recorded, such as the Journal or Day Books. The Ledger is a book of secondary entry where information is posted from the books of prime entry.