Tag: journal proper or general journal

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Questions Related to journal proper or general journal

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Which of the following is entered in the journal proper?

  1. Purchase of an asset for cash

  2. Purchase of an asset on credit

  3. Purchase of goods for cash

  4. Purchase of goods on credit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Purchase of assets or stationery is not meant for resale and will be held for a long term and increase the profit-earning capacity of the business over various accounting periods. Hence, transactions related to purchase of assets or stationery will be recorded in the journal proper. Whereas, purchase of assets for resale in which business deals are recorded under purchase book.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Which of these are recorded in journal proper?

  1. Transfer entry

  2. Opening/Closing entry

  3. Rectifying entry

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

When the journal is sub-divided into various subsidiary books, such as sales book, Purchase book, etc.,the journal becomes the residuary book in which only those transactions are recorded that cannot be recorded in any subsidiary book. This type of journal is called Journal proper. The following types of entries are recorded in Journal proper:

1. Closing entry
2. Opening entry
3. Rectification entries
4. Transfer entries
5. Adjustment entries
6. Miscellaneous entries
Thus, cash discount received or allowed is recorded in the Journal proper.

Multiple choice book keeping and accountancy sub-division of journal - 2 (subsidiary books) introduction, meaning, types and advantages of subsidiary books journal proper or general journal meaning and types of subsidiary books

Closing entries are recorded in __________.

  1. cash book

  2. ledger

  3. journal proper

  4. balance sheet
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Journal is sub-divided into various subsidiary books  such as Sales book, Purchase book, Cash book etc., The journal becomes the residuary book in which only those transactions are recorded that cannot be recorded in any other subsidiary book. This type of journal is called Journal Proper. The following types of entries are recorded in journal proper:

a. Closing entries
b. Opening entries
c. Rectification entries
d. Adjustment entries
e. Transfer entries etc.

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.