Tag: elements of book keeping and accountancy

Questions Related to elements of book keeping and accountancy

Which of the following actions reflects 'parent ego' as per the concept of Transactional Analysis?

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Pondering

  2. Pleasure

  3. Blessing

  4. All of the above

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Correct Option: C

The author or the book Suma de Arithmetica is _______________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. H.A. Cassel

  2. Luca Paetolli

  3. Adam Smith

  4. Batliboi

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Correct Option: B

Purchase of second-hand computer on credit by a cloth merchant will be recorded in ___________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Journal

  2. Cash book

  3. Purchase book

  4. None of the above

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Correct Option: A

When a large number of articles are sent on a sale or return basis, it is necessary to maintain ________________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Sale journal

  2. Goods returned journal

  3. Sale or return journal

  4. None of these

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Correct Option: C

Accounting entries for the repayment of a loan received from Richard, the owner's friend is _____________________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Debit Cash account and Credit capital account

  2. Credit cash account and Debit Richard's loan account

  3. Credit cash account and Debit capital account

  4. Debit cash account and Credit Richard's loan account

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Correct Option: B
Explanation:

Debit - Loan Account

The debit to the Richard's loan account records the reduction in principal of the loan balance which is the cash repayment less the interest expense.
Credit - Cash Account
Cash has been used to make the the annual repayment to the lender on the due date in accordance with the loan agreement.

When Sale or Return Day Book and Sale or Return Ledger are maintained and the goods are approved by the customers, these are recorded _______________________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Initially in the Sale or Return Day Book. Thereafter in the Sale or Return Ledger.

  2. Only in the Sale or Return Day Book.

  3. Only in the Sales Day Book.

  4. Both in Sales or Return Day Book and Sales Day Book.

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Correct Option: D

Total of sales returns book is posted to the ___________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. debit side of sales returns A/c

  2. credit side of sales returns A/c

  3. debit of sales A/c

  4. the credit of sales A/c

Show answer
Correct Option: A
Explanation:

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 it is necessary to analyse transactions in terms of debit and credit ?

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. While Journalizing.

  2. While Posting.

  3. At both times.

  4. None of the above.

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Correct Option: A
Explanation:

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.

The periodic total of purchase return day book is posted to ______.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. Credit side of purchase A/c

  2. Debit side of trading A/c

  3. Credit side of creditors A/c

  4. Credit side of sales A/c

Show answer
Correct Option: A
Explanation:

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.

A return inwards book is kept to record ______________.

elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

  1. returns of goods sold

  2. returns of anything purchased

  3. returns of goods purchased

  4. returns of anything sold.

Show answer
Correct Option: A
Explanation:

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.