Tag: sales book or sales journal

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Questions Related to sales book or sales journal

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

Petty cash book is a book having record of big payments.

  1. True

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

 Petty cash book is used for recording a large number of small payments such as conveyance, cartage, postage, telegram and other expenses (miscellaneous expenses) which are usually in nature.

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

Journal proper is used for recording only those transactions as cannot be recorded in any of the other __________ books.

  1. ledger

  2. journal proper

  3. trial balance

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

Journal proper is the book of original entry used for transactions that do not fit into specialized subsidiary books like the cash book, sales book, or purchase 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

A subsidiary record is a book ________________.

  1. of subsidiary entry.

  2. containing the final account.

  3. of final entry.

  4. of original entry.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Subsidiary books are books of original entry where transactions are recorded for the first time before being posted to the ledger.

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

Which of the following is/are not subsidiary books ? 

  1. Purchases Returns Book

  2. Cash Book

  3. Journal proper

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

The Cash Book, Purchases Returns Book, and Journal Proper are all considered subsidiary books in accounting systems.

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

Which of the following is/are the subsidiary books ? 

  1. Purchases Book

  2. Sales Book

  3. Bills Receivable Book

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

Purchases Book, Sales Book, and Bills Receivable Book are all standard subsidiary books used to record specific types of credit transactions.

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 bill of Rs. 20,000 for old office furniture sold to Sethi was entered in the Sales Day Book Which of the following rectification entry is correct?

  1. Suspense A/c Dr. 20,000

    To Office Furniture A/c 20,000

  2. Sales A/c Dr. 20,000

    To Office Furniture A/c 20,000

  3. Office Furniture A/c Dr. 20,000

    To Suspense A/c 20,000

  4. Office Furniture A/c Dr. 20,000

    To Sates A/c 20,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The sale of old furniture is not a credit sale of goods, so it should not be in the Sales Day Book. To rectify, we must reverse the entry in Sales (debit) and record it correctly in the Furniture account (credit).

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

Sales book was overcast by Rs. 20,000. If this error located after preparation of trial then which of the following rectification entry is correct? 

  1. Suspense A/c Dr. 20,000

    To Sales A/c 20,000

  2. Sales A/c Dr. 20,000

    To Suspense A/c 20,000

  3. Profit & Loss Adj. A/c Dr. 20,000

    To Sales A/c 20,000

  4. Sales A/c Dr. 20,000

    To Profit & Loss Adj. A/c 20,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If the Sales book was overcast, the sales account was credited with an excess amount. To rectify this after the trial balance, we debit the Sales account and credit the Suspense account.