Tag: subsidiary books - 1

Quizzes (4) Questions (4)

Questions Related to subsidiary books - 1

Multiple choice elements of accounts subsidiary books - 1 introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Which of these statements is not true?

  1. Goods lying with the customers are valued at cost price

  2. Sales and return book is used when the goods are either approved or rejected

  3. Sales or return ledger is a kacha ledger

  4. Sales or return day book is a customer's record
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The sales or return day book is used to record goods sent out on a sale or return basis. It is a memorandum record for the business to track goods with customers, not a formal record of the customer's own ledger account.

Multiple choice elements of accounts subsidiary books - 1 introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

State with reasons whether the following statement is true or false:
Where subsidiary books are maintained journal is not required.

  1. True

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

Journal is required even when subsidiary books are maintained. This is so because many entries such as opening and closing entry, rectification entry etc are recorded in journal.

Multiple choice elements of accounts subsidiary books - 1 introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Users of subsidiary books of accounts are ________.

  1. Financial Journalists.

  2. Risk Analysts.

  3. Cost Accountants.

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

Financial consultants often utilize subsidiary books to analyze the detailed transactional data of a business. These books provide the granular information necessary for professional financial assessment and reporting.

Multiple choice elements of accounts subsidiary books - 1 introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

The mistakes in the total of the subsidiary book will _____________.

  1. not affect the personal account of customers

  2. will affect the personal account of customers

  3. both a and b

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

A mistake in the total of a subsidiary book affects the ledger account (like the Sales Account) but does not impact the individual personal accounts of customers, as those are posted from the individual entries, not the total.