Chapter 3. Journal and Ledger

 Q1. Journal is a :

(a) Book of original entry     (b) Book for classification of transaction

(c) List of accounts              (d) All of the above

Q2.Which of the following is a personal account:

(a) Commission                   (b) Building

(c) Debtor                           (d) Discount

Q3. Commission received is a:

(a) personal account            (b) Real Account

(c) Nominal Account           (d) None of the above

Q4.Commission received in advance is a:

(a) Real account                   (b) Personal Account

(c) Nominal Account            (d) None of the above 

Q5. Amount brought by the proprietor of the business should be credited to:

(a) Cash Account                  (b) Reserve Account

(c) Capital Account               (d) Drawings Account

Q6.Payment of wages is recorded by: 


(a) Debiting Employee's A/c,Crediting cash a/c
(b) Debiting Cash a/c, Crediting wages a/c 
(c) Debiting employee's A/c, Crediting wages a/c
(d) Debiting wages a/c, Crediting Cash a/c


Q7. Cost of goods brought by the proprietor is credited to:
(a) Purchase account             (b) Drawings account
(c) Capital account                (d) stock account


Q8. Journal is used for:
(a) To classify transactions      (b) To rectify errors
(c) To record transactions at one place 
(d) To devide accounting work among many persons.

Q9. Discount on bill discounted is of the nature of:
(a) Real account                     (b) Personal account
(c) Nominal Account              (d) None of the above


Q10. Patent rights account is of the nature of:
(a) Real account                     (b) Personal account
(c) Nominal account               (d) None of the above


Q11.Rent prepaid account is of the nature of:
(a) Real account                       (b) Personal account
(c) Nominal account                 (d) None of the above


Q12. Outstanding rent account is of the nature of:
(a) Real account                      (b) Personal account
(c) Nominal account                (d) None of the above

Q13. Cash Purchases:
a. Decreases Assets                b.Increases Liability
c. Increases Assets                 d.Causes no change in the total assets


Q14. Purchase of machinery for cash:
a. Causes no change in the total assets     b. Increases total assets
c. Increases liability                                 d. Increases capital

Q15.Which of the following is not a real account:
a. Building account                             b. Patent Account
c. Manufacturing expense account      d. Cash Account

Q16. Which of the following is not a personal account:
a. Debtors account                              b. Bank account
c. Goodwill account                            d. Outstanding Rent account

Q17. Purchase of good on credit from B will be recorded as :
a. Debit purchases A/c, Credit Cash A/c
b. Debit purchases A/c, Credit B's  A/c
c. Debit Stock A/c, Credit Purchases A/c
d. Debit Stock A/c, Credit Purchases A/c 

Q18. Good returned to B will be recorded as:
a. Debit B's a/c, Credit purchases return a/c
b. Debit B's a/c, Credit Sales return a/c
c. Debit B's a/c, Credit Stock a/c
d. Debit Purchases Return a/c Credit B's a/c

ANSWERS :-

1.a   2.c   3.c   4.b    5.c   6.d    7.c   8.c    9.c
10.a    11.b    12.b   13.d   14.a    15.c   16.c
17.b   18.b