Tag: book keeping and accountancy

Quizzes (126) Questions (1524)

Questions Related to book keeping and accountancy

Multiple choice book keeping and accountancy subsidiary books - 2 three column cash book three columnar cash book triple column cash book

Which of the following subsidiary books serves the purpose of ledger too, in addition to the recording of accounting transaction?

  1. Purchases book

  2. Sales book

  3. Bills receivable book

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

The Cash Book serves as a book of original entry (journal) for cash transactions and also functions as a ledger account for cash and bank balances. Other subsidiary books like the Purchases or Sales book only record specific types of credit transactions and do not function as ledger accounts.

Multiple choice book keeping and accountancy subsidiary books - 2 three column cash book three columnar cash book triple column cash book

Cash book records ________________.

  1. Cash payments

  2. Cash Receipts

  3. Cash payments and cash receipts

  4. Neither cash payments nor cash receipts
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Cash Book is a specialized journal designed to record all cash receipts on the debit side and all cash payments on the credit side. It is a comprehensive record of cash flow.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

A positive exposure will lead to when the currency of the subsidiary company appreciates.

  1. Translation gain

  2. Translation loss

  3. Exchange gain

  4. Exchange loss
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A positive exposure means the company has net assets in a foreign currency. If that currency appreciates, the value of those assets in the reporting currency increases, resulting in a translation gain.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

A person shall not be appointed as Director if he is found to be of unsound mind by _____________.

  1. the company

  2. the company court

  3. a court of competent jurisdiction and the finding is in force

  4. the shareholder
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Legal requirements for director disqualification specify that a person must be declared of unsound mind by a court of competent jurisdiction for the disqualification to be legally binding.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Those transactions for which there is no separate book, are recorded in the __________.

  1. Cash book

  2. Bills receivable book

  3. Bills payable book

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

Transactions that do not fit into specialized books like the cash book, sales book, or purchase book are recorded in the Journal Proper.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Wages paid for repairing a machine should be debited to ___________.

  1. Repair account

  2. Machine account

  3. Cash account

  4. Furniture account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount paid as repairs of a machine is a capital expenditure and should have been debited to Machine A/c and not repair A/c.


Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

A second hand motor car was purchases on credit from B & Co. for Rs $10,000$. It will be recorded in _______________.

  1. Journal Proper (General Journal)

  2. Cash Book

  3. Purchase Book

  4. Sales Book
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Purchase book is a special purpose subsidiary book prepared by a business to record all credit purchases.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Outstanding salary of Rs $34,000$ to be provided in the accounts will be recorded in  ________________.

  1. Bills Receivable Book

  2. Journal Proper(General Journal)

  3. Purchase Return Book

  4. Purchase Book
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Outstanding salary is an adjustment entry. Since it does not involve cash, bills, or inventory purchases, it is recorded in the Journal Proper.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Investment was sold on credit for Rs $1,00,000$ at par will be recorded in _______________.

  1. Cash Book

  2. General Journal

  3. Purchases Return Book

  4. Purchase Book
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The sale of an asset (investment) on credit is not a regular trade transaction. Therefore, it is recorded in the General Journal (Journal Proper) rather than the Sales Book.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

NSZ. Ltd. makes payments to its sundry creditors through cheques and the cash discount received on these payments is recorded in the triple-columnar cash book. In the event of dishonour of any such cheques, the discount so received should be written back through - 
(i) A debit to discount column of the cash book. 
(ii) A credit discount column of the cash book. 
(iii) A credit to bank column of the cash book. 
(iv) A debit to discount account through journal proper.
(v) A credit to creditor's account through journal proper. 
Select the correct answer from the options given below- 

  1. Only (i) of the above

  2. Only (ii) of the above

  3. Both (i) & (ii) of the above

  4. Both (iv) & (v) of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When a cheque is dishonored, the discount previously recorded must be reversed. This is done by debiting the discount account and crediting the creditor's account through the Journal Proper.