Tag: elements of book keeping and accountancy

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Questions Related to elements of book keeping and accountancy

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

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

  1. Pondering

  2. Pleasure

  3. Blessing

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

In Transactional Analysis, the Parent ego state is characterized by behaviors such as nurturing, controlling, or blessing, reflecting internalized values and rules.

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

The author or the book Suma de Arithmetica is _______________.

  1. H.A. Cassel

  2. Luca Paetolli

  3. Adam Smith

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

Luca Pacioli is the author of 'Summa de Arithmetica', which contains the first published description of the double-entry bookkeeping system.

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

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

  1. Journal

  2. Cash book

  3. Purchase book

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

The Purchase Book is only for credit purchases of goods (stock). Credit purchases of assets are recorded in the Journal Proper.

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

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

  1. Sale journal

  2. Goods returned journal

  3. Sale or return journal

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

When goods are sent on a sale or return basis, a separate 'Sale or Return Day Book' is maintained to track these transactions until they are confirmed as sales.

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

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

  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
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

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

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

When goods are approved, they are removed from the Sale or Return Day Book and recorded in the Sales Day Book to finalize the revenue recognition.

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

Total of sales returns book is posted to the ___________.

  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
Reveal answer Fill a bubble to check yourself
A Correct answer
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".

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

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

  1. While Journalizing.

  2. While Posting.

  3. At both times.

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

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

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

  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
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

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

A return inwards book is kept to record ______________.

  1. returns of goods sold

  2. returns of anything purchased

  3. returns of goods purchased

  4. returns of anything sold.
Reveal answer Fill a bubble to check yourself
A Correct answer
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.