VS JOURNAL

ONE WORD TO ONE SENTENCE QUESTIONS

Q.1. What do you mean by Journal ?

Ans. Journal is a book original entry in which transactions are recorded on a day to day basis as and when they take place.

Q.2. What are personal accounts ?

Ans.  The accounts which are related to individuals , firms, societies, clubs, hospitals etc.

Q.3. What are Real accounts ?

 Ans. The accounts which are related to assets which can be touched or difficult to touch but can be measured in terms of rupees are called Real accounts e.g. Plant & Machinery, Furniture, Goodwill etc.

Q.4. What is a Normal Account ?

Ans. The accounts related to business expenses , losses, gains and incomes are called Nominal accounts. E.g. Salary Paid, Commission received Purchase etc.

Q.5. Give two advantages of Journal ?

Ans. 1. In Journal all transactions are recorded data wise with Narration which makes it understandable in future .

2. In Journal all transactions are recorded under the Entry System.

Q.6. Give two limitations of Journal ?

Ans. 1. It is not possible to ascertain daily cash balance from Journal

2. It is very time consuming to post each transaction from Journal to ledger.

Q.7. Explain Rule of Recording Personal Account under traditional approach.

Ans. Debit the Receiver.

Credit the Giver.

Q.8. Explain the Rule of recording real accounts under a traditional approach.

Ans.  Debit what comes in

Credit what goes out

Explain the rule of recording Nominal accounts under traditional approach.

Ans. Debit all expenses and losses.

Credit all incomes and gains.

Q.10. What is Narration ?

Ans. It is a brief explanation which gives an understanding of the real meaning of the transactions at a future date.

Q.11. What is the treatment of depreciation charged on fixed assets?

Ans. Depreciation A/c     Dr.   xxxxx

         To Fixed Assets A/c                                                        xxxxx

Q.12. Which entry will you pass for recording outstanding expenses?

Ans. Expenses A/c                      Dr.

         To Outstanding expenses a/c 

FILL IN THE BLANKS :

1. Journal is a book of __________.

2. The rule of real account is debit _________and_______-the river.

3. Goods distributed as free samples should be debited to ________account.

4. An account is a _____________record of the financial ___________

5. Carriage spent on the purchase of material should be debited to ___________

Ans. 1. Prime entry  2. What comes in, what goes out  3. Advertisement  4. Classified transactions  5. Carriage.

TRUE OR FALSE STATEMENTS :

1. Journal is a book of secondary entries.

2. Personal accounts relate to natural  to natural personal entry.

3. Narration is essential for each and  every Journal entry.

4. A sale of goods to X on cash should be debited to X.

5. Opening entry is the first entry of every day.

6. Personal accounts always show debit balance.

7. Nominal accounts always show debit balance.

8. Real accounts generally show debit balance.

9. Purchase account is always debited.

10. The Sales Account is always credited.

Ans. 1. False   2. False  3. True  4. False  5. False  6. False  7. False  8. True  9. True  10. True .

MULTIPLE CHOICE QUESTIONS :

1. In the double entry system of book-keeping Every business transaction affects.

1. Debit and credit side of the same account

2. Two accounts

3. The same side of the same account.

4. None of these.

2. In bookkeeping Journalising means

1. Total in the page of journal

2. Recording of the entry in the journal

3. Ruling of the journal

4. None of these

3. Nominal Accounts are related to

1. Assets and Liabilities

2. Expenses loss and income

3. customers, Creditors etc.

4. None of these

4. Goods worth Rs. 50 given as charity should be credited to

1. Purchase account

2. Charity account

3. Sales a/c

4. None of these

5. ‘Dr.’ signifies

1. Debit

2. Debtors

3. Debit Record

4. None of these

6. Purchase of goods from Anil for cash should be credited to :

1. Purchase

2. Cash

3. Anil

4. None of above

7. Personal Accounts are related to 

1. Assets and liabilities

2. Expenses losses and incomes

3. Debtors credited

4. All of the above

8. Real accounts are related to

1. Assets

2. Expenses losses and incomes

3. Debtors creditor etc

4. All of the above

9.  Journal records the transactions of a firm in a

1. Periodical manner

2. Chronological order

3. Summarized manner

4. Systematic order

10. Rent of proprietor’s house paid from account on cash will

1. Decrease the Profit

2. Increase the Profit

3. Reduce the capital of business

4. Reduce the cash as well as capital of the business

Ans. 1. B   2. B   3. B  4. A  5. C  6. B  7. C  8. A  9. B  10. D  .