Question

0.4 State whether the following statements are True or False with reasons
1) Narration is not required for each and every entry.
2) A journal voucher is must for all transactions recorded in the Journal
3) Cash discount allowed should be debited to discount A/c.
Journal is a book of prime entry.
5) Trade discount is recorded in the books of accounts.
6) Goods lost by theft is debited to goods A/c.
7) If rent is paid to landlord, landlord's A/c should be debited.
8) Book Keeping records monetary and non-monetory transactions.
9) Drawings made by the proprietor increases his capital.
10) GST paid on purchase of goods Input tax A/c should be debited.​

Answer 1

Answer:

1 false narration is required always

2true voucher is must for all transactions

3 true discount allowed is a loss so this will be debit

4 journal is not a book of prime but original entry so this is false

5 trade discount in not mentioned in account but we less it in the amt so this is false

6 false it will be loss by theft ac dr

7 no landlords ac will not be debited but rent ac will be dr becoz paying rent is an revenue expense so this is false

8 no false non monetory are not recorded in books only monetary

9 no drawing made by proprietor doesn't increase his capital but decreases his capital again false

10 yes this statement is true when we purchased something gst given is input gst which is always debited with purchase