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CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Journal Quiz 1 - MCQExams.com
CBSE
Class 9 Elements Of Book Keeping And Accountancy
Journal
Quiz 1
A sale of goods of vidhya for cash should be debited to ______________.
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0%
Vidhya's account
0%
Cash account
0%
Sale of goods account
0%
Purchases account
Explanation
Sales of goods on cash involves cash and goods account. Both cash and goods are real account. Rule for real account says" debit what comes in". Against sale of goods cash is coming in the system, hence cash account should be debited.
Under purchase method of amalgamation, _______ of the transferor company continues to appear in the balance sheet of the transferee company.
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0%
Capital reserve
0%
General reserve
0%
Statutory reserve
0%
Specific reserve
Explanation
Ans:
Amalgamation in the nature of Purchase -
It is done as follows :-
Amalgamation Adjustment A/c Dr.
Statutory Reserve A/c Cr
Return of goods by a customer should be debited to __________.
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0%
Customers Account
0%
Sales Return Account
0%
Goods Account
0%
Purchase Account
Explanation
A transaction in which the goods is returned by the customer due to various reasons is called sales return.
Accounting entry need to be passed against the sales return is as follows:
Sales return A/c Dr.
To Customer A/c
The amount brought in by the proprietor in the business should be credited to ____________.
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0%
Cash Account
0%
Capital Account
0%
Drawing Account
0%
Bank Account
Explanation
Business entity or separate entity concepts defines that the owner and the business are to be treated separately.
If any amount is contributed by the owner should be treated as liability and to be credited in capital account.
Journal Entry:-
Cash A/c Dr.
To Capital A/c.
Interest on capital is credited to ___________ account.
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0%
Expenses
0%
Income
0%
Capital
0%
Asset
Explanation
Capital is a contribution done by the owner in business. If any interest is payable, this need to be debited to Interest expenses and credited to the capital account.
A withdrawal of cash from business by the proprietor of the firm should be debited to ___________.
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0%
Capital Account
0%
Cash Account
0%
Drawing Account
0%
Proprietor's Account
Explanation
The transaction is based on the separate entity concept which signifies that business and its proprietor are treated two separate legal entity.
Withdrawal of cash by proprietor should be debited to drawing account in the books of the business. Same amount should be credited by the proprietor in cash account.
A credit sale of goods to Shiva should be debited to ____________.
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0%
Sales account
0%
Goods account
0%
Shiva's account
0%
Purchase account
Explanation
Shiva is the receiver of goods. Personal account rule says "debit the receiver". Hence Shiva's account will be debited.
Entry for credit sale to Shiva will be:
Shiva's Account Dr (Debtor for goods sold on credit)
To Sales Account (Goods sold to customer).
Account current is a journal.
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0%
True
0%
False
0%
Partly true
0%
Partly false
Explanation
Account current is a type of account that is ongoing between the two parties. Its a kind of summary report. Its not a journal.
Goods of the value of Rs. 1500 taken by the proprietor for his personal use should be debited to _______________.
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0%
Drawing account
0%
Sales account
0%
Purchases account
0%
Stock account
Explanation
Withdrawal of money and/or goods by the owner from the business for personal use is known as Drawing.
Drawings reduces the investments of the owners. The journal entry for goods of the value Rs. 1,500 taken by the proprietor for his personal use is:
Drawing A/c Dr.
To Purchases A/c.
Sales made to Mahesh for cash should be debited to ________.
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0%
Cash account
0%
Mahesh account
0%
Sales account
0%
Purchase account
Explanation
Every accounting transaction will have two affect. One for debit and one for credit as the accounting is based on double entry system of accounting.
Sales made to Mahesh for cash affect two accounts i.e cash and goods. Both are real account. Rule of real account says "Debit whats comes in and credit what goes out"
Accordingly the accounting entry will be:
Cash A/c Dr.
To Goods A/c.
One debit account and more than one credit account in a entry is called compound entry.
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0%
True
0%
False
Explanation
Compound
journal
entries
are those in which
more than
two
accounts
are affected. A
compound entry
may require that two or
more accounts
be
debited
or two or
more accounts
be credited. Suppose a business borrows money to purchase
an
asset, such as a building.
Amount brought in by proprietor should be credited to ______ account.
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0%
Cash
0%
Capital
0%
Drawings
0%
Creditors
Explanation
Business Entity concept defines that the business and its owner are two separate legal entity. Owner is considered as a creditor like other creditor. Amount contributed by the owner as capital is treated as liability. Accounting entry will be as under:
Cash A/c Dr.
To Capital A/c
Salaries paid to Ramesh will be debited to ________________.
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0%
Salaries Account
0%
Ramesh's Account
0%
Cash Account
0%
Capital Account
Explanation
The Journal Entry for Salaries paid to Ramesh will be
Salaries a/c Dr.
To Cash a/c
(Being Salaries paid to Ramesh)
Whenever expenses are paid then the name of a person is not mentioned.
Salaries are debited as per Nominal Rule - Debit all expenses and Losses
Cash is credited as per Real Rule - Credit what goes out.
Cash discount is ___________.
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0%
Given to encourage prompt payment
0%
Amount deducted from list price
0%
Not required to be shown in books of accounts
0%
All of the above
Explanation
Amount which is deducted by the seller from the amount due at the time of the receipt is called cash discount. it is given to encourage prompt payment.
Cash discount does not appear in the books of accounts.
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0%
True
0%
False
Explanation
Discounts are two types:
Trade Discount is a discount which is allowed to the customers to promote the sales. Its allowed on list price and general discount available to all the customers. Trade discount is not recorded in books of account.
Cash discount is allowed to the customer to whom the goods sold on credit. Cash discount is allowed to speed up the cash collection. Its allowed to the customer if the payment is done within the specified period. Cash discount is a an indirect expenses and to be debited in profit & loss account.
When a entry involves only two accounts it is called _______.
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0%
Simple entry
0%
Double entry
0%
Compound entry
0%
Complex entry
Explanation
Accounting is based on double entry system. that means every transaction will have two impact. When only two accounts are involved, its called simple entry.
Goods worth Rs.500 purchased on cash.
Goods account and Cash account will be impacted.
Accounting entries passed in journal proper at the end of the year are called
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0%
Opening entries
0%
Adjustment entries
0%
Closing entries
0%
Contra entries
Explanation
At the end of the financial year, all nominal accounts are closed by passing the closing entries. Expense accounts are closed by debiting to the trading and profit & loss account and income accounts are closed by crediting to it.
Example:
Salary Account Balance Rs.5000
Profit & Loss A/c Dr. 5000
To Salary A/c 5000
The accounting entries which appear on both the sides of cash book are called journal entries.
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0%
True
0%
False
Explanation
A contra entry is the entry that involves both the accounts, i/e/ Cash and Bank. When cash is deposited in a bank or withdrawn from the bank for office use, such transactions will be recorded on both sides of the cash book. Thus, it affects both the columns of the cash book, i.e. the cash column as well as the bank column. Thus, an entry recorded on both sides of the cash book is known as contra entry.
Received Rs 1100 from M/s M in settlement of Rs 1250 due from him. The nature of the journal entry to be passed for this transaction is ______.
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0%
Simple entry
0%
Compound entry
0%
Complex entry
0%
Contra entry
Explanation
A compound journal entry is an accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits.
Hence, it is a compound entry, as cash account and discount allowed A/c is to be debited.
An order placed for the goods, entry is recorded in the books of accounts.
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0%
True
0%
False
Explanation
Placing an order is just an obligation to have delivery of desired goods.
Accounting entry will be passed only when the title of the goods is transferred to the buyer.
Therefore, no accounting entry will be passed in case of only order.
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Practice Class 9 Elements Of Book Keeping And Accountancy Quiz Questions and Answers
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