Journal

20 Questions

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Account Quizzes & Trivia

Questions and Answers
  • 1. 
    Sunset Tours has a Rs.3,500 account receivable from Mohan. On January 20, Mohan makes a partial payment of Rs.2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:
    • A. 

      A credit to the cash received account of Rs.2,100.

    • B. 

      A credit to the Accounts receivable account of Rs.2,100.

    • C. 

      A debit to the cash account of Rs.1,400.

    • D. 

      A debit to the Accounts receivable account of Rs. 1,400.

  • 2. 
    In Double Entry System of Book-keeping'every business transaction affects :
    • A. 

      Two accounts.

    • B. 

      Two sides of the same account.

    • C. 

      The same account on two different dates.

    • D. 

      All of the above.

  • 3. 
    The debts written off as bad, if recovered subsequently are 
    • A. 

      Credited to Bad Debts Recovered Account

    • B. 

      Credited to Debtors Account.

    • C. 

      Debited to Profit and Loss Account

    • D. 

      None of the above

  • 4. 
    A withdrawal of cash from business by the proprietor should be credited to:
    • A. 

      Drawings Account

    • B. 

      Capital Account

    • C. 

      Cash Account

    • D. 

      None of the above

  • 5. 
    If two or more transactions of the same nature are journalised together having either the debit or the credit account common is known as  
    • A. 

      Compound journal entry

    • B. 

      Separate journal entry

    • C. 

      Posting

    • D. 

      None of the above

  • 6. 
    Drawings account is in the nature of
    • A. 

      Personal account

    • B. 

      Real account

    • C. 

      Nominal account

    • D. 

      None of the above

  • 7. 
    Income tax paid by the sole-proprietor from business bank account is debited to
    • A. 

      Income tax account

    • B. 

      Bank account

    • C. 

      Capital account

    • D. 

      Not to be shown in the business books

  • 8. 
    Recording of a transaction in a journal is called
    • A. 

      Posting

    • B. 

      Entry

    • C. 

      Transfer

    • D. 

      Ruling

  • 9. 
    Narrations are given at the end of
    • A. 

      Final accounts

    • B. 

      Trial balance

    • C. 

      Each ledger account

    • D. 

      Each journal entry

  • 10. 
    The concerned account debited in the journal should be
    • A. 

      Debited in the ledger but reference should be of the respective credit account.

    • B. 

      Credited in the ledger but reference should be of the respective debit account.

    • C. 

      Credited in the ledger and reference should also be of the respective credit account.

    • D. 

      Debited in the ledger and reference should also be of the respective debit account.

  • 11. 
    In journal, transactions are recorded on  ___________.    
    • A. 

      Chronological order

    • B. 

      Ascending order of amount

    • C. 

      Descending order of amount

    • D. 

      None of the above

  • 12. 
    Payment of personal expenses of the owners of the business need to be recorded as
    • A. 

      Drawings

    • B. 

      Liabilities

    • C. 

      Expenses

    • D. 

      None of the three

  • 13. 
    Outstanding salary account is:
    • A. 

      Real account

    • B. 

      Personal account

    • C. 

      Nominal account

    • D. 

      None of the above

  • 14. 
    Real accounts relate to assets of the firm and not
    • A. 

      Machinery

    • B. 

      Debt

    • C. 

      Receivables

    • D. 

      None of the three

  • 15. 
    Vikas & Co, account is a
    • A. 

      Personal account

    • B. 

      Real account

    • C. 

      Nominal account

    • D. 

      None of the above

  • 16. 
    The cash discount allowed to a debtor should be credited to  
    • A. 

      Discount account.

    • B. 

      Customer's account.

    • C. 

      Sales account.

    • D. 

      None of the above.

  • 17. 
    Accounts receivable normally has ______________ balance.
    • A. 

      Debit.

    • B. 

      Credit.

    • C. 

      Unfavourable.

    • D. 

      None of the above.

  • 18. 
    Journal entry for Rs. 6,000 stolen from the safe of the firm will be  
    • A. 

      Dr. P& L a/c and Cr. Cash embezzlement a/c Rs. 6,000.

    • B. 

      Dr. Cash embezzlement a/c and Cr. Cash a/c Rs: 6,000.

    • C. 

      Dr. Cash a/c and Cr. P& L a/c Rs. 6,000

    • D. 

      None of the above.

  • 19. 
    Bank account is __________.
    • A. 

      Personal account

    • B. 

      Intangible real account

    • C. 

      Nominal account

    • D. 

      Both (b) and (c)

  • 20. 
    Mohan Stationers will debit purchase of stationery in ________________.       
    • A. 

      Stationery account

    • B. 

      General expenses account

    • C. 

      Purchases account

    • D. 

      None of the three