Question

Choose the Correct Answer :
1. The ledger folio column of journal is used to:
(a) Record the date on which amount posted to a ledger account.
(b) Record the number of ledger account to which information is posted.
(c) Record the number of amounts posted to the ledger account.
(d) Record the page number of the ledger account.
2. The journal entry to record the sale of services on credit should include:
(a) Debit to debtors and credit to capital.
(b) Debit to cash and Credit to debtors.
(c) Debit to fees income and Credit to debtors.
(d) Debit to debtors and Credit to fees income.
3. The journal entry to record purchase of equipment for Rs. 2,00,000 cash and a
balance of Rs. 8,00,000 due in 30 days include:
(a) Debit equipment for Rs. 2,00,000 and Credit cash 2,00,000.
(b) Debit equipment for Rs. 10,00,000 and Credit cashRs. 2,00,000 and creditors Rs.
8,00,000.
(c) Debit equipment Rs. 2,00,000 and Credit debtors Rs. 8,00,000.
(d) Debit equipment Rs. 10,00,000 and Credit cash Rs. 10,00,000.
4. When a entry is made in journal:
(a) Assets are listed first.
(b) Accounts to be debited listed first.
(c) Accounts to be credited listed first.
(d) Accounts may be listed in any order.
5. If a transaction is properly analysed and recorded:
(a) Only two accounts will be used to record the transaction.
(b) One account will be used to record transaction.
(c) One account balance will increase and another will decrease.
(d) Total amount debited will equals total amount credited.
6. The journal entry to record payment of monthly bill will include:
(a) Debit monthly bill and Credit capital.
(b) Debit capital and Credit cash.
(c) Debit monthly bill and Credit cash.
(d) Debit monthly bill and Credit creditors.
7. Journal entry to record salaries will include:
(a) Debit salaries Credit cash.
(b) Debit capital Credit cash.
(c) Debit cash Credit salary.
(d) Debit salary Credit creditors.

Answer 1

Answer:

1. d

2. d

3. c

4. b

5. d

6. c

7. a

Answer 2

The answers are given with the explanations to help you to understand it more.

Explanation:

1. (d) record the page number of the ledger account.

Ledger folio column which is written as L.F. in the book shows the page number which helps to easily verify the transaction.

2. (d) Debit the debtor and credit to fees income

The correct journal entry is this. We debit the debtor because we have not received the cash and credit the fees income because it is our income and according to the nominal account rule we credit all income and gains.

3.(b) Debit equipment  Rs 1000000 and credit cash with Rs 200000 and creditors for Rs 800000

Here we debited the equipment because we purchased the equipment. Against which we paid only Rs 200000 as cash and rest is still need to be paid so we credited cash and creditor likewise. Cash is real account and creditors is personal account.

4.(b) Accounts to be debited listed first.

When entry is made we four first required to make entries of those accounts that need to be debited and then we credit the corresponding accounts.

5.(d) Total amount debited equal total amount to be credited

When we properly record and analyse the transaction according to the accounting rules the total of debit amount is always equals to the total of credit account.

6. (c) Debit monthly bill and credit cash

We debit the monthly bill because it is our expense and we need to debit all expenses and losses and we have to credit the cash as we are paying cash for the expenses.

7.(a) Debit salaries and credit the cash

Here we debited the salary account because it is nominal account we debit all our expenses and loses. Cash is credited as it is real account we are paying cash for the payment of salaries.