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Journal - book of original entry - class-XI

Description: journal - book of original entry
Number of Questions: 36
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Tags: business studies journal accounting and its terminology elements of accounts accountancy subsidiary books accounting in business original entry: journal and subsidiary books
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When a firm maintains a cash book, it need not maintain _______________.

  1. Journal Proper

  2. Purchase(journal)book

  3. Sales(journal)book

  4. Bank and cash account in the ledger


Correct Option: D
Explanation:

When a firm maintains a cashbook,  it does not need to maintain Separate Bank and cash account in the ledger.

The prime entry for the acquisition of a cash book, ledgers and a journal for Rs 240 from X Ltd. on credit would be in the:

  1. Journal

  2. purchases Day Book

  3. Cash Book

  4. None of the above


Correct Option: A

The journal entry to account for the acquisition on credit of factory machinery from Millet plc should require which of the following:

  1. Debit Factory account and credit Millet plc account

  2. Debit Machinery account and credit Millet plc account

  3. Debit Millet plc account and credit Machinery account

  4. Debit Machinery account and credit Cash account


Correct Option: B

An office equipment bought on credit would first be entered by the purchaser in the ________________.

  1. Returns Outward Book.

  2. Purchase Day Book.

  3. Journal Proper.

  4. Sales Day Book returns Inward Book.


Correct Option: C

Another name of journal is _____________.

  1. Specialized journal

  2. Day book

  3. Cash book

  4. Record book


Correct Option: B

_______ is a book of account, in which all types of accounts relating to assets, liabilities, capital, expenses and revenues are maintained. 

  1. Ledger

  2. Journal

  3. Primary entry book

  4. None of above


Correct Option: B

Credit sale of various assets or investments will be recorded in ____________.

  1. General Jounal

  2. Sales Book

  3. Cash Book

  4. Purchase Book


Correct Option: A

_______ is a book in which all the business transactions are originally recorded in chronological order and from which then are posted to the ledger accounts at any convenient time. 

  1. Ledger

  2. Journal

  3. Purchases return books

  4. Sales book


Correct Option: B

Journal is book of _______________.

  1. Analytical record

  2. Chronological record

  3. Alphabetical record

  4. None of above


Correct Option: B

Goods Outward Journal is meant for recording all returns of goods _______________.

  1. Purchased on credit

  2. Purchased on cash

  3. Sold on credit

  4. Sold on cash


Correct Option: A

Opening, closing and adjustment entries are recorded in ____________.

  1. Purchase Book

  2. Sales Book

  3. Petty Cash Book

  4. Journal Proper


Correct Option: D

When fixed assets or stationeries are purchased on credit, the entries are passed in the _____________.

  1. General journal

  2. Purchase day book

  3. Purchase account

  4. Any of the above


Correct Option: A

Credit purchase of plant and machinery is recorded in which of the following specialized journals?

  1. General Journal

  2. Cash Journal

  3. Purchase Journal

  4. Purchase return Journal


Correct Option: A

A subsidiary book which is used to record all those business transactions which do not find any place in the purchase book, sales book, return books, cash book, bills receivable and payable book, etc. is called journal proper..

  1. True

  2. False


Correct Option: A
Explanation:

Journal proper is book of original entry (simple journal) in which miscellaneous credit transactions which do not fit in any other books are recorded. It is also called miscellaneous journal. The form and procedure for maintaining this journal is the same that of simple journal.

Stock-in-trade also includes _____________.

  1. goods in the process of production for sale

  2. items held as fixed assets

  3. items consumed for daily use

  4. depreciation on fixed assets


Correct Option: A
Explanation:

Stock-in-trade doesn't include all of a firm's assets when used in the business "

"Stock-in-trade refers to any merchandise or equipment kept on hand and used in carrying on a business. It includes the collection of goods, inventories and merchandise, maintained by a business entity for the purpose of using them for processing, making salable goods or for selling to the customers with an intention to make profit from such deals."

Main object of preparing a 'Journal' is to __________.

  1. ascertain the financial position of the business

  2. journalise the cash transactions

  3. make posting in the ledger

  4. record the business transactions first of all


Correct Option: D
Explanation:

Main objectives of preparing journal: To make permanent and systematic record of all the financial transactions. 

Journal is book of _____________.

  1. Analytical record

  2. Chronological record

  3. Alphabetical record

  4. None of above


Correct Option: B
Explanation:

journal is known as the original book of entry and is also called the prime entry. All the accounting transactions are first recorded in journal in the order of the transactions taking place. Such order is called a chronological order.

General Journal is a book of entries ______.

  1. First

  2. Original

  3. Secondary

  4. Generic


Correct Option: B
Explanation:

Books of original entry refers to the accounting journals in which business transactions are initially recorded. 

 A journal entry in which two or more account is debited or credited is referred as ________.

  1. Journal entry

  2. Multi entry

  3. Additional entry

  4. Compound entry


Correct Option: D

Sales on credit is recorded in which of the following journal?

  1. Purchases journal

  2. Sales journal

  3. Purchases return journal

  4. Sales return journal


Correct Option: B

The other name of journal is ________.

  1. Ledger

  2. T account

  3. Day book

  4. Cash book


Correct Option: C
Explanation:

The other name of Journal is Day Book. 

journal is also named the book of original entry, from when transactions were written in a journal prior to manually posting them to the accounts in the general ledger or subsidiary ledger.

Cash purchases is recorded in which of the following specialized journals?

  1. Purchase journal

  2. Sales journal

  3. Purchases return journal

  4. Cash payments journal


Correct Option: D

Errors are corrected via the Journal because  ____________________.

  1. It saves entering them in the ledger

  2. It is much easier to do

  3. It provides a good record explaining the double entry records

  4. It saves the bookkeepers time


Correct Option: C

The reason for totaling at the end of the page of a journal is ______________.

  1. It makes whole system more convenient

  2. As the calculations are lengthy it is more comfortable

  3. It is a general practice

  4. All of the above


Correct Option: D

Generally journal is kept in a ______________.

  1. Mathematical method

  2. Columnar method

  3. Straight method

  4. None of the above


Correct Option: B

Cash received from debtor is recorded in which of the following specialized journals?

  1. Purchase journal

  2. Sales journal

  3. Cash receipts

  4. Cash payments journal


Correct Option: C

Sales and purchase journal don't record ___________.

  1. credit sales

  2. credit purchases

  3. credit sales and purchases

  4. cash sales and purchases


Correct Option: D

Worn out assets on sale are recorded in __________.

  1. sales journal

  2. cash journal

  3. petty cash journal

  4. general journal


Correct Option: D

In ledger J.F. denotes __________.

  1. Page number

  2. Folio

  3. Both a & b

  4. None of the above


Correct Option: C

The following comments all relate to the recording process. Which of these statements is correct?

  1. The general journal is a chronological record of transactions.

  2. The general ledger is posted from transactions recorded in the general journal.

  3. The trial balance provides the primary source document for recording transactions into the general journal.

  4. Transposition is the transfer of information from the general journal to the general ledger.


Correct Option: A

Transactions that a business doesn't record in any specialized journal are recorded in which journal or book?

  1. Cash payments journal

  2. Cash receipts journal

  3. Purchases return journal

  4. General journal


Correct Option: D

Journal is a book of __________.

  1. original entry

  2. all cash transactions

  3. secondary entry

  4. all non-cash transactions


Correct Option: A

The process of recording a transaction in the journal is called __________.

  1. Posting

  2. Journalising

  3. Tallying

  4. Casting

  5. Balancing


Correct Option: B

XYZ company purchase an asset that turns out to be defective and was required to be sold as a worn out item. The entry will be made in _______________.

  1. Worn out journal

  2. Cash journal

  3. General journal

  4. None of the above


Correct Option: C

What will be journal entry when cash is withdrawn from bank for personal use?

  1. Drawings A/c debit, bank A/c credit

  2. Cash A/c debit, drawings A/c credit

  3. Bank A/c debit, drawings A/c credit

  4. Bank A/c debit, capital A/c credit


Correct Option: A
Explanation:

Drawings are the amounts taken by the owner of a business for his personal use in anticipation of profit. Drawings are usually made in the form of cash, but there could be other assets or goods withdrawn by the owner for his personal use.

Journal Entry will be:-
Drawing A/c Dr. 
   To Bank A/c.

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