Tag: sub-division of journal - 2 (subsidiary books)

Quizzes (4) Questions (114)

Questions Related to sub-division of journal - 2 (subsidiary books)

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

Purchase book is maintained to record _______________.

  1. All credit purchases

  2. All cash purchases

  3. Purchases of goods

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

A purchase book is a special journal used specifically to record all credit purchases of goods that the business deals in.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

____________ is one of the records of circulation section.

  1. Accession Register

  2. Day book

  3. Catalogue Card

  4. AACR-2 (R)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Accession Register is the primary record in the circulation or acquisition section of a library, used to track all items added to the collection.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

If the purchases made during the year were Rs. 60, 000, the balance of stock in trade at the beginning and at the end of the year were Rs. 12, 000 and Rs. 9, 000 respectively and the gross profit on sales was 1/5th, when which one of the following represent :-

  1. Rs. 15, 750

  2. Rs. 14, 000

  3. Rs. 12, 500

  4. Rs. 17, 250
Reveal answer Fill a bubble to check yourself
C Correct answer
Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

A and B purchased a piece of land for Rs.40,000 and sold it for Rs.60,000 in 2005. Originally A had contributed Rs. 24,000 and B Rs. 16,000. What will be the profit on venture ?

  1. Rs. 20,000

  2. Rs. 16,000

  3. Rs. 30,000

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

Profit is the difference between the selling price and the cost price. Profit = 60000 - 40000 = 20000.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

Which of the following is not a main column of Sales or Return Journal ?

  1. Goods sent on approval

  2. Goods returned

  3. Goods approved

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

A Sales or Return Journal (also known as an Approval Journal) records goods sent on approval, goods returned, and goods approved. Purchases are recorded in the Purchase Journal.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

______records the details of goods returned by the business organization to the supplier(s). 

  1. Sales Return Book

  2. Purchase returns books

  3. Journal proper

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

When the goods purchased on credit are returned to the supplier, these are recorded in the Purchase return book. Sometimes, goods purchased can be defective or of low quality, etc. and hence, need to be returned.

A separate book is maintained for the purchase return and these are not deducted from the purchases in the Purchase book. Also, Purchase return is recorded at the net amount on the invoice.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

Mr. N returns the goods of Rs $50,000$ purchases on credit to Mr. Z. This transaction will be recorded by Mr. N in __and by Mr. Z in _____.

  1. Sales Return Book , Purchases Return Book

  2. Purchases Return Book, Sales Return Book

  3. Sales Return Book, Sales Book

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

When Mr. N returns goods purchased on credit, he records it in his Purchase Return Book. Mr. Z, who sold the goods, records the return in his Sales Return Book.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

A second hand car is purchased for Rs. 20,000, the amount of Rs. 3,000 is spent on its repairs, Rs. 1,000 is incurred to get the car registered in owner's name and Rs. 2,000 is paid as dealer's commission.
The amount debited to car account will be _____________.

  1. Rs. 20,000

  2. Rs. 23,000

  3. Rs. 24,000

  4. Rs. 26,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The cost of an asset includes the purchase price and all expenses incurred to bring it to a usable condition. 20000 + 3000 + 1000 + 2000 = 26000.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

A machine was purchased for Rs. 10, 000 and its life was estimated to be 3 years, and at the end of its life, its book value was Rs. 5, 120. If depreciation is calculated according to Diminishing Balance Method, the rate of depreciation would be?

  1. 25%

  2. 15%

  3. 20%

  4. 10%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 

Calculation of depreciation

Particulars | Details | Amount | | --- | --- | --- | --- | | I | Value of Machine |   | 10000 | |   | Depreciation 20% | (2000) |   | | II | WDV on 2nd year |   | 8000 | |   | Depn 20% | 1600 |   | | III | WDV on 3rd year |   | 6400 | |   | Depn 20% | 1280 |   | |   | Book value of machine |   | 5120 |

 

Multiple choice elements of book keeping and accountancy sub-division of journal - 2 (subsidiary books) explain the importance of preparing subsidiary books meaning and advantages of subsidiary books purchase book or purchase journal

In India __________ has a pre-dominant share in the debt market.

  1. Government Securities

  2. Corporate Deposits

  3. Corporate Equities

  4. Global Depository Receipts
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Debt market refers to the financial market where investors buy and sell debt securities, mostly in the form of bonds. These markets are important source of funds, especially in a developing economy like India. India debt market is one of the largest in Asia. 

It is also the most dominant category in the India debt market. Bond Market: It consists of Financial Institutions bonds, Corporate bonds and debentures and Public Sector Units bonds.