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ONE WORD TO ONE SENTENCE QUESTIONS
ONE WORD TO ONE SENTENCE QUESTIONS
Q.1 Define subsidiary book .
Ans Each separate book meant to record transactions of a particular class is a book of original or prime entry and is known as a subsidiary book .
Q.2 What do you mean by purchase book?
Ans Purchase book is a subsidiary book which is maintained to record all credit purchases of goods
Q.3 What do you mean by sales book?
Ans Sales book is a subsidiary book which is meant to record all the credit sales of goods
Q.4 What are return books ?
Ans Return books are maintained to record all the returns of goods whether it is purchase return or sales return .
Q.5 What is a debit note ?
Ans A debit note is a document to record all the returns of goods whether it is purchase return or sales return.
Q.6 What is a credit note?
Ans It is a document sent by the firm to its customer who returned the goods or claimed an allowance from him. It is a source of recording sales return books .
Q.7 Write one difference between debit note and credit note.
Ans Debit note is prepared and sent by a customer to supplier whereas credit note is prepared and sent by supplier to his customer .
Q.8 Mention two transactions which are recorded in journal proper.
Ans (i) opening entry
(ii)closing entries
Q.9 Give any one difference between purchase book and purchase account .
Ans Purchase book records only credit purchases of goods but purchase account records the credit as cash purchase of goods .
Q.10 Give any one difference between sales book and sales account.
Ans Sales book records only credit sales of goods but sales account records credit as well as cash sales of goods .
Q.11 What is an invoice ?
Ans It is a source document for buyers and sellers of the goods which gives the details of goods as to their quantity, quality, brand price etc.
Q.12 What is an allowance ?
Ans An allowance is a reduction of some amount from the total amount payable .
Q.13 What is meant by journal proper ?
Ans It is a book of original entry which is reserved for occasional or unusual transactions which cannot be recorded in the specially classified books .
Q.14 What are opening entries?
Ans The word opening suggests that these entries are made at the beginning .
Q.15 What are rectification entries ?
Ans While recording the transactions certain errors and omissions may occur these should be corrected by rectification entries passed through the journal proper.
Q.16 What are closing entries ?
Ans At the end of each accounting period ascertain the financial position and profit and loss of all nominal accounts are transferred to trading and P/L a/c and balance sheet this transfer procedure is carried through journal entities known as closing entries .
Q.17 What are transfer entries ?
Ans The journal entry passed for transferring the balance of one account to another account is carried through journal entries know as closing entries
Q.18 What are outstanding expenses ?
Ans On the date of closing some of the expenses for current year have remained unpaid till the last date these are known as known as outstanding expenses
Q.19 What are prepaid expenses?
Ans The expenses which have been paid during the current year but their benefit received in received in coming year are known as prepaid expenses.
Q.20 What is accrued income ?
Ans Income which have been earned but not yet received till the end of current financial period is known as accrued income
Q.21 What income received in advance?
Ans The incomes which have already been received during the current year but they are not yet earned are known as income received in advance.
Q.22 What transactions are recorded in the journal proper ?
Ans Some occasional and unusual transactions which cannot be recorded in the specially classified books are recorded in the journal proper .
FILL IN THE BLANKS
FILL IN THE BLANKS
1. Credit purchase of machinery is recorded in _____________.
2. Credit note is a basis for recording ______________book .
3. Debit note is a basis for recording _______________book .
4. Sales book records only _________sales of ___________.
5. Purchase of land for cash i'll be recorded in ____________.
6. Return outward book records goods returned to __________
7. When customers return goods to the firm it is recorded in __________books.
8. Transactions which cannot be entered in the __________ as well as in the __________are recorded on Journal Proper.
9. Entries made in the Journal Proper to correct errors in the books of account are known as __________.
10. Closing stock is accounted for in the book by crediting _________A/c.
11. The crediting of Drawings a/c and debiting of capital account at the end of the year is an example of _______entry.
12. A ________ entry is one which is passed in Journal Proper to shift the effect of one account to another.
Ans. 1. Journal 2. Sale Return Book 3. Purchase Return 4. Credit , Merchandise 5. Cash Book 6. Suppliers 7. Return Inward Book 8. Special Journal , Cash Book , 9. Rectification entries 10. Trading 11. Transfer Entry 12. Transfer .
TRUE OR FALSE STATEMENTS
TRUE OR FALSE STATEMENTS
1. Trade discounts are not recorded on books of account. M
2. Purchase book records all purchases.
3. Sales Return book recorded return of fixed assets.
4. When payment i is received promptly trade discount i allowed
5. Purchase books and purchase accounts are synonymous.
6. Error of recording in subsidiary book does not affect trial balance.
7. If a trading asset is exchanged for a non trading asset, then entry will be recorded in Journal Proper.
8. Adjusted entries are necessary only when the Mercantile system of Accounting is being followed.
9. All accounts are closed by transfer either to the Trading Account or to the profit & loss account
10. Opening entry is posted to the respective account “To/By balance b/d”.
11. All rectification entries are passed through Journal Proper.
Ans 1. True 2. False 3. False 4. False 5. False 6. True 7. True 8. True 9. False 10. True 11. True
MULTIPLE CHOICE QUESTIONS
MULTIPLE CHOICE QUESTIONS
1. Purchase book records
A. All types of purchases
B. Only credit purchase of goods
C. All types of credit purchase
D. Both cash and credit purchases
2. Sales book records
A. Credit sales of goods
B. Cash sales of goods
C. All credit sales
D. Both cash and credit sales
3. Purchase of plant for business on cash will be recording
A. Purchase book
B. Cash book
C. Journal proper
D. Sales book
4. In which book you shall record the goods return by the customer
A. Return inward book
B. Return outward book
C. Purchase book
D. Sales book
5. In which book you shall record the goods returned to the supplier .
A. Return inward book
B. Purchase book
C. Return outward book
D. Sales book
6. On intra state purchase of goods which of the following accounts are debited :
A. Input IGST account .
B. Input CGST account and input SGST account .
C. Input IGST account and input CGST account
D. Input IGST account and input SGST account
7. Debit notes issued are used to prepare
A. Purchases return book
B. Sales return book
C. Purchase book
D. Sales book
8. A separate column is made for credit note no in
A. Purchase book
B. Sales book
C. Purchase return book
D. Sales return book
9. Total of purchase return column in the purchase return book is posted to :
A. Purchase return A/C — debit
B. Purchase return A/C — credit
C. Purchase A/C — debit
D. Purchase A/C — credit
10. Total of sales return column in the sales return book is posted to :
A. Sales A/C —- debit
B. Sales A/c — credit
C. Sales return A/C —- debit
D. Sales return A/C — crediT
Ans 1. (B) 2. (A) 3. (B) 4. (A) 5.(C) 6. (B) 7. (A) 8. (D) 9. (B) 10 . ( C )
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