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

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Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Sale or Return Day Book and Sale or Return Ledger are Known as _________________.

  1. Principal books

  2. <div><span>Subsidiary books</span>
    </div>

  3. Memorandum books

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

The sale or return ledger is a subsidiary ledger used to record sale or return basis transactions by customer. The ledger includes individual accounts for each customer and also a total account used to record the sale or return daybook totals.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Goods returned to X for Rs.10,000 passed through the sales Book. The error will result in ________________.

  1. Increase in gross profit

  2. Decrease in gross profit

  3. No effect on gross profit

  4. Either (a) or (b)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Due to the wrong posting of purchase return in sales A/c, sales increases by Rs.10000 , that will result in increase in gross profit.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Goods sold to Y for Rs.10,000 passed through the sales Return Book. The error will result in _________________.

  1. Increase in gross profit

  2. Decrease in gross profit

  3. No effect on gross profit

  4. Either (a) or (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Selling goods should be recorded in the Sales Book. Recording it in the Sales Return Book incorrectly reduces the total sales figure, which directly leads to a decrease in the calculated gross profit.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

If two or more transactions of same nature are journalized together it is known as ________________.

  1. Compound journal entry

  2. Separate journal entry

  3. Posting

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

If two or more transactions of the same nature occur on the same day and either debit account and/or credit account are common in them, then instead of passing a separate entry for each such transaction, one combined entry may be passed. Such type of entry is known as compound journal entry.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

In the Sale or Return Ledger _______________________.

  1. All the customers are individually debited and the sale or return account is credited with the periodical total of the Sale or Return Day Book.

  2. all the customers are debited in total and the sale or return account is credited with the periodical total of the Sale or Return Day Book.

  3. all the customers are individually debited and the sale or return account is credited with the individual total of the Sale or Return Day Book.

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

In terms of goods sent numerously, goods returned by the customer within the specified time limit are first recorded in the Sale or Return Day Book. After this, the customer’s accounts are individually credited in the Sale or Return Ledger while the Sale or Return A/c is debited with the total of the Sale or Return Day Book.


Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Proprietor's account is ___ account.

  1. Real

  2. Nominal

  3. Personal

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

The proprietor represents a person or a group of persons (the owner). In accounting, accounts related to persons are classified as personal accounts.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

A company sent their cars to dealers on sale or return basis. All such transactions are however treated like actual sales and are passed through a sales day book. Just before the end of the financial year two cars which costs Rs 50000 each have been sent on 'sale return' and have been debited to customers at Rs 60000 each, cost of goods lying with the customers will be _______________.

  1. Rs 100000

  2. Rs 120000

  3. Rs 60000

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

Cost of cars is Rs 50000 each so the cost of goods lying with the customers will be 100000.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Rs. 5,000 received from Ram on 1.1.09 for the old furniture sold to him on 1.06.08 which of the following entry should be passed for recording the transaction in the books of accounts?

  1. Cash A/c Dr.

    To furniture A/c 5,000

  2. Cash A/c Dr. 5,000

    To suspense 5,000

  3. Cash A/c Dr. 5,000

    To bad-debits recovered A/c 5,000

  4. Cash A/c Dr. 5,000

    To Ram A/c 5,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Since the furniture was sold to Ram on credit previously, the amount received from him should be credited to his account to settle the debt. The cash received is debited to the Cash account.

Multiple choice elements of accounts sub-division of journal - 2 (subsidiary books) sales book or sales journal introduction, meaning, types and advantages of subsidiary books meaning and types of subsidiary books

Following are the sales return of Jindal & Co. a saree dealer:
05.01.2016 - Goyal & Co. Rampur returned 2 Polyster sarees @ 125 each
10.01.2016 - Accepted return of goods by Garf & Co. 2 Kota sarees @ 50 
17.01.2016 - Mittal & Co. Hissar returned 2 silk sarees @ 325
31.01.2016 - Mohan returned one typewriter @ 500
Total of sales returns book will be _____.

  1. Rs.900

  2. Rs.800

  3. Rs.1000

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

Particulars | Credit Note No. | L.F. | Amount | | --- | --- | --- | --- | --- | | 5th Jan 2016 | Goyal & Co. Rampur returned 2 Polyster sarees @ 125 each |   |   | 250 | | 10th Jan 2016 | Return of goods by Garf & Co. 2 Kota sarees @ 50   |   |   | 100 | | 17th Jan 2016 | Mittal & Co. Hissar returned 2 silk sarees @ 325 |   |   | 650 | | 31st Jan 2016 | No Entry |   |   | - | |   | Total of Sales Return book |   |   | 900 |