Tag: functions, advantages, objects and importance of journal

Questions Related to functions, advantages, objects and importance of journal

Assets sold on credit are entered in sales journal.

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

  1. True

  2. False

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Correct Option: B
Explanation:

Assets sold on credit are entered in sales journal.

The periodic total of purchase return journal is posted to ______________.

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

  1. Purchase Account

  2. Profit and loss Account

  3. Purchase return Account

  4. Furniture Account

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Correct Option: C
Explanation:

Posting from the purchases returns journal requires that the supplier's individual accounts are debited with the amount of returns and the purchases returns account is credited with the periodic total.

The periodic total of sales return journal is posted to_________.

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

  1. Sales Account

  2. Goods Account

  3. Purchase return account

  4. Sales return account

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Correct Option: D
Explanation:

Posting to the sales return journal requires that the customer's account be credited with the amount of return and the sales return account be debited with the periodic total in the same way as is done in case of posting from purchase journal.

Credit purchase of machine is entered in purchase journal.

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

  1. True

  2. False

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Correct Option: B
Explanation:

Accounting and journal entry for credit purchase includes two accounts, Creditor and Purchase.

In case of a journal entry for cash purchase, Cash account and Purchase account are used. 
The person to whom the money is owed is called a “Creditor” and the amount owed is a current liability for the company.

Assets sold on credit are entered in __________.

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

  1. Cash/bank account

  2. Sales Journal

  3. Ledger posting 

  4. Bank statment

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Correct Option: B
Explanation:

Assets sold on credit are entered in sales journal.

Return of goods purchased on credit to the suppliers will be entered in _________ journal.

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

  1. Purchase return

  2. Sales return 

  3. Purchase and sales return 

  4. Goods purchase

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Correct Option: A
Explanation:

Return of goods purchased on credit to the supplier is recorded in the Purchase return journal. Sometimes goods purchased are returned to the supplier for various reasons such as goods are not of the required quality, or are defective, etc. For every return, a debit note is prepared , the original one is sent to the supplier for making necessary entries in his book and on the basis of duplicate copy of debit note entry is recorded in purchase return journal.

A purchased goods costing Rs. 1,00,000. B sold the. goods for Rs. 1,60,000. Profit sharing ratio between A and B being equal, what will be the final remittance ?

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

  1. B will remit Rs. 1,30,000 to A

  2. B will remit Rs. 1,55,000 to A

  3. A will remit Rs. 1,05,000 to B

  4. B will remit Rs. 30,000 to A

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Correct Option: A

If Y takes away goods in personal business under memorandum joint venture method, then he will debit these goods in his books to ________________.

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

  1. Joint venture account

  2. Personal account

  3. Purchases account

  4. Sales A/c

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Correct Option: C

When a large number of articles are sent on a sale or return basis, it is necessary to maintain __________________.

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

  1. Sale journal

  2. Goods returned journal

  3. Sale or return journal

  4. Any one of these

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Correct Option: C

P and Q enter into a Joint Venture sharing profits and losses in the ratio 3:2. P purchased goods costing Rs. 2,00,000. Other expenses of P Rs. 20,000. Q, sold the goods for Rs. 2,00,000. Remaining goods were taken over by Q at Rs. 10,000. The amount of final remittance to be paid by Q to P will be ______________.

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

  1. Rs. 2,10,000

  2. Rs. 2,14,000

  3. Rs. 2,20,000

  4. None

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Correct Option: B