Select Right Answer:
1. Voucher is prepared for:
(i) Cash received and paid
(ii) Cash/Credit sales
(iii) Cash/Credit purchase
(iv) All of the above
2. Voucher is prepared from:
(i) Documentary evidence
(ii) Journal entry
(iii) Ledger account
(iv) All of the above
3. How many sides does an account have?
(i) Two
(ii) Three
(iii) one
(iv) None of These
4. A purchase of machine for cash should be debited to:
(i) Cash account
(ii) Machine account
(iii) Purchase account
(iv) None of these
5. Which of the following is correct?
[tex]
\begin{tabular}{c c c} \\
(i) & Liabilities = & Assets + Capital \\
(ii) & Assets = & Liabilities - Capital \\
(iii) & Capital = & Assets - Liabilities \\
(iv) & Capital = & Assets + Liabilities.
\end{tabular}
[/tex]
6. Cash withdrawn by the Proprietor should be credited to:
(i) Drawings account
(ii) Capital account
(iii) Profit and loss account
(iv) Cash account
7. Find the correct statement:
(i) Credit a decrease in assets
(ii) Credit the increase in expenses
(iii) Debit the increase in revenue
(iv) Credit the increase in capital
8. The book in which all accounts are maintained is known as:
(i) Cash Book
(ii) Journal
(iii) Purchases Book
(iv) Ledger
9. Recording of transaction in the Journal is called:
(i) Casting
(ii) Posting
(iii) Journalising
(iv) Recording
Answers
Explanation:
1. cash/credit sales
2.ledger account
3.3
4.machine account
5.? don't know sorry
6.cash account
7.third option is correct
8.cash book
9.journalising
Answer:
Answers and explanations are in the description. (TRANSACTIONS IN ACCOUNTING)
Explanation:
1. Voucher is prepared for: All of the above
Reason: Vouchers are a very important accounting record of transaction like Cash received and paid, Cash/Credit sales, Cash/Credit purchase reliability. There are so many transactions happening in the business. To record a transaction in your ledger, we call it as vouchers.
2. Voucher is prepared from: Documentary evidence
Reason : A voucher is a pre-numbered document that indicates authorized payment approval for a particular purchase. Documented evidence is evidence that can be used to verify commercial or non-commercial transactions and is presented in writing. Text, sound recordings, movies, photographs and printed emails are considered documentary evidence. From the supporting documents, a document is created.
3. How many sides does an account have? 2
Reason: An account has two sides. The left side of the account is called the debit side while the right side is called the credit side. Debt is denoted "Dr" and credit is denoted "Cr". So option (i) is the correct answer.
4. A purchase of machine for cash should be debited to: Machine account
Reason: According to the "Golden Rule of Accounting", for real accounts like equipment, the following rule:
DEBIT WHAT COMES IN CREDIT WHAT GOES OUT. Therefore, according to the golden rule of real accounts, when machinery is purchased with cash, the machine account will be debited
5. Which of the following is correct? ASSET= LIABILITY+CAPITAL
Reason: An accounting equation is a mathematical expression that shows that a company's assets and liabilities are equal. Assets = Liabilities + Equity Whenever an asset is put into a business, a corresponding liability is also incurred.
6. Cash withdrawn by the Proprietor should be credited to: cash account
Reason: Transactions based on the concept of separate legal entity show that the business and its owners are treated as two separate legal entities. An owner's cash withdrawal must be debited from the drawdown account (due to its personal nature) on the company's books of accounts. The same amount debited from the drawing account must be credited to the cash account by the owner.
7. Find the correct statement: Credit a decrease in assets and Credit the increase in capital
Reason: Debit and Credit Rules: The following rules are followed for debiting and crediting different accounts in business transactions: Debit, any increase in assets, expenses and dividends, any reduction in liabilities, income and equity. Credit, any increase in liabilities, income and equity, any decrease in assets and expenses.
8. The book in which all accounts are maintained is known as: LEDGER
Reason:In business, a financial transaction is an agreement between a buyer and a seller to exchange a product or service for money. Ledger is a book of accounts used by a business to keep accounts related to the assets, liabilities, capital, expenses and income of the business. Therefore, the correct answer is option (iv).
9. Recording of transaction in the Journal is called: journalising
Reason:A journal is a detailed account that records all of a company's financial transactions, used for future reconciliation and carried over to other official accounting records, such as the general ledger.
Casting: This is a manufacturing process in which liquid material is poured into a mold, which contains a hollow cavity of the desired shape, and is then allowed to solidify. The solidified part, also known as the casting, is ejected or broken out of the mold to complete the process.
Posting: Posting involves transferring an entry from the original postings to the appropriate account in a general ledger. Simply put, when the balances of the sub-ledgers and journal entries are transferred to the general ledger.
Journaling: Journaling is the process of recording a business transaction in the books of account. Recording transactions in a Journal is called journalising.
Recording: Recording is the basic stage of accounting or bookkeeping.
So Option (iii) is the correct answer.