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Multiple choice elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

When Sale or Return Day Book and Sale or Return Ledger are maintained and the goods are approved by the customers, these are recorded _______________________.

  1. Initially in the Sale or Return Day Book. Thereafter in the Sale or Return Ledger.

  2. Only in the Sale or Return Day Book.

  3. Only in the Sales Day Book.

  4. Both in Sales or Return Day Book and Sales Day Book.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When goods are approved, they are removed from the Sale or Return Day Book and recorded in the Sales Day Book to finalize the revenue recognition.

Multiple choice elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

Total of sales returns book is posted to the ___________.

  1. debit side of sales returns A/c

  2. credit side of sales returns A/c

  3. debit of sales A/c

  4. the credit of sales A/c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When the goods sold are return back to the vendor it is recorded in sales return book. buyer may return the goods due to poor quality of goods or inaccurate quantity or other reasons etc. It is also called as return inwards. All returns are primarily recorded in sales return book unless the returns are not the frequent, in which case they are recorded in the Journal. After updating transactions in sales return book, the total of the items is transferred to ledger in an account called the "Sales Returns A/c".

Multiple choice elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

When it is necessary to analyse transactions in terms of debit and credit ?

  1. While Journalizing.

  2. While Posting.

  3. At both times.

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

When the business transactions take place, the first step is to record the same in the books of original entry or subsidiary books or books of prime or journal. Thus, journal is a simple book of accounts in which all the business transactions are originally recorded in chronological order and from which they are posted to the ledger accounts at any convenient time. Journalisisng refers to the act of recording each transaction in the journal and the form in which its is recorded, is known as a journal entry.

Multiple choice elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

The periodic total of purchase return day book is posted to ______.

  1. Credit side of purchase A/c

  2. Debit side of trading A/c

  3. Credit side of creditors A/c

  4. Credit side of sales A/c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Purchase return day book is a subsidiary book in which all the credit  purchases returns are recorded. It has 05 columns. At the end of a specific period, the total of purchase return day book is posted to credit side of purchase a/c in ledger.

Multiple choice elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

A return inwards book is kept to record ______________.

  1. returns of goods sold

  2. returns of anything purchased

  3. returns of goods purchased

  4. returns of anything sold.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When goods are received back from customer which are sold on credit, a note is prepared and the original copy of the same is sent to the party that  returned the goods, i.e. the customer. This note is termed as credit note because the customer from whom the goods are received back, his/her account is credited with the amount written in the note and on the basis of  duplicate copy of credit note the transaction is recorded in the sales return books by the supplier.

Multiple choice elements of book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

Goods Outward Book is meant for recording all returns of goods which were __________.

  1. sold on credit

  2. purchased on credit

  3. purchased on cash

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

Return of goods, purchased on credit is recorded in the purchase return book. Purchases book shows a debit balance, so the purchases return book will definitely show a credit balance, because purchases return book will definitely show a credit balance, because purchase return is entirely reverse to purchase.  

Multiple choice book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

Which of the following statement(s) is / are true regarding Net Benefit Cost Ratio (NBCR)?

  1. It does not take time value of money into consideration

  2. This criterion cannot be used when the investment outlay is spread over more than one period

  3. IF NBCR = 0.75 the project cannot be accepted

  4. All of the above

  5. Both (B) and (C) above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Net benefit cost ratio takes into consideration the time value of money.
Net benefit cost ratio  = NPV /
Investment = BCR-1
When NBCR>1 (BCR>1), the project is accepted. Therefore, a project with NBCR = 0.75 will be accepted. This criterion cannot be used when investment outlay is spread over more than one period.

Multiple choice book keeping and accountancy book of original record - journal understand the need for journal journals functions, advantages, objects and importance of journal

Returns outward book makes a record of__________.

  1. Goods returned to the supplier

  2. Goods returned to customer

  3. Goods returned to proprietor

  4. Goods returned to neighbour
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The credit note received from supplier shows the goods returned and the amounts involved. The purchase returns book also known as returns outward book and is used to record the debit notes. Goods returned to supplier denotes purchase return to supplier hence it is recorded in return outward account.