Accounting Process – Basic Accounting Procedures – Journal Entries 0 Accounting Process - Basic Accounting Procedures - Journal Entries 1 / 30 Q.30 Which of the following is correct ? Debit means an increase in Liability & a decrease in an asset credit means an decrease in Liability & an increase in an asset debit means decrease in asset None of these 2 / 30 Q.29 Which financial statement represents the accounting equations , assets=Liabilities + Owner's equity Income statement Statement of cash flows Balance sheet None of these 3 / 30 Q.28 What is the order in which the accounting transactions and events are recorded in the books? Journal, Subsidiary books, Ledger, Balance Sheet, Profit and Loss Account (P&L Account) Ledger, Journal, Ledger, Balance Sheet , P&L A/c Journal, Ledger, Profit and Loss A/c, Balance Sheet Profit and Loss A/c, Ledger, Balance Sheet, Journal 4 / 30 Q.27 The process of equalizing the two sides of an account by putting the difference on the side where amount is short is known as ______. Balancing Posting Journalising None of above 5 / 30 Q.26 the following is a book of original entry & also part of the ledger journal sales book cash book Purchase book 6 / 30 Q.25 After the preparation of the trial balance the accountant finds that the total of debit side is short by Rs.1,500.This difference will be Credited to suspense account Debited to suspense account Adjusted to any of the debit balance account Adjusted to any of the credit balance account 7 / 30 Q.24 on purchase of a machine Rs.100 paid to worker as wages for installing the machine wages account be debited installation charges account be debited machinery account be debited None of these 8 / 30 Q.23 On purchase of goods of the list price of Rs.10,000 from Ram who allowed 10 % trade discount & 5 % cash discount for immediate payment purchase account to be debited with Rs.10,000 purchase account to be debited with Rs.8,500 discount received account to be credited with Rs 450 discount received account to be credited with Rs 500 9 / 30 Q.22 Goods costing Rs.1,000 (Sale price Rs.1,200) stolen should be credited to sales account with Rs.1,200 sales account with Rs.1,000 Purchase account with Rs.1,000 loss by theft account 10 / 30 Q.21 In case of debt becoming bad, the amount should be credited to Trade receivables account. Bad debts Account. Cash Account. 11 / 30 Q.20 If a cheque is returned dishonoured, it is recorded in Cash column on the credit side Cash column on the debit side Bank column on the credit side Bank column on the debit side. 12 / 30 Q.19 When a cheque received is endorsed, entered on - Credit side of the cash book only Debit side of the cash book only Both sides of the cash book All receipts and payments of cash 13 / 30 Q.18 Goods costing Rs.1,000 (Sale price Rs.1,200) distributed as free sample should be credited to sales account with Rs.1,200 sales account with Rs.1,000 Purchase account with Rs.1,000 loss by theft account 14 / 30 Q.17 Income tax Liability of a proprietor paid should be debited to Income tax account income tax payable account drawing account business expenses account 15 / 30 Q.16 Star tours has a Rs.5,000 account receivable from Mr.X .On feb 5, Mr. X makes a partial payment of Rs.3,000 to star tours .The journal entry made on feb 5 by star tour to record this transaction include A credit to cash received account of Rs.3,000 A credit to the account receivable account of Rs.3,000 A debit to cash received account of Rs.2,000 A debit to the account receivable account of Rs.2,000 16 / 30 Q.15 Journal is a book of original entry all cash transaction secondary entry all non-cash transaction 17 / 30 Q.14 Credit means An increase in asset An increase in Liability An decrease in asset An increase in proprietor's equity 18 / 30 Q.13 The rent paid to the landlord is credited to Landlord's account Rent account Cash account None of these 19 / 30 Q.12 Ganesh's salary is Rs. 10,000 per month. During a month, he withdrew goods worth Rs. 2,500 for personal use and also got salary Rs. 9,500 in cash. The excess payment of Rs. 2,000 will be debited to - Sales account. Goods account. Salary account. Salary in advance account. 20 / 30 Q.11 A purchase of horse in cash should be debited to _______. Livestock A/c Goods A/c Cash A/c Bank A/c 21 / 30 Q.10 A payment of Rs.100 to Kokate Carriage Co. for brining a machine to the business place should debited _______. Machine A/c Cash A/c Kokate carnage Co. A/c Carriage A/c 22 / 30 Q.9 The amount brought in by the proprietor in the business should be credited to ______. Salary A/c Mandar’s A/c Cash A/c Capital A/c 23 / 30 Q.8 Paid salary to Mandar should be debited to ______. Salary A/c Mandar’s A/c Cash A/c Bank A/c 24 / 30 Q.7 The rent paid to the land lord should be debited to ______. Drawings Ac Cash A/c Landlord A/c Rent A/c 25 / 30 Q.6 Wages paid for installation of machinery should be debited to _______. Wages A/c Machinery A/c Cash A/c Installation A/c 26 / 30 Q.5 Cash purchases of goods should be credited to _____. Purchases A/c Sales A/c Cash A/c Goods A/c 27 / 30 Q.4 Goods or Amount taken by proprietor for his personal use should be debited to _________. Sales A/c Drawings A/c Purchases A/c Cash A/c 28 / 30 Q.3 Recording of transaction in the journal is called _______. Posting Casting Tallying Journalizing 29 / 30 Q.2 The _______ column of the journal is not entered at the time of Journalizing. Date Particulars Ledger Folio Amount 30 / 30 Q.1 The return of goods by a customer should be debited to return outward account carriage inward account customer's account return inward account Your score is LinkedIn Facebook Twitter VKontakte