Journal Quizz

1. DEBIT signifies:

A. Increase in Assets account


B. Decrease in Liability account


C. Decrease in Capital account


D. All of the above

2. Bank overdraft account is a :

A. Personal account

B. Real account

C. Nominal account

D. Representative personal account

3. Purchase of second- hand computer on credit by a cloth merchant will be recorded in:

A. Journal

B. Cash Book

C. Purchase Book

D. None of the above

4. Goods worth Rs. 10,000 were withdrawn by the proprietor for his personal use. The account to be credited is

A. Sales A/c

B. Drawing A/c

C. Purchases A/c

D. Expenses A/c

5. Cash account is a

A. Personal account

B. Real account

C. Nominal account

D. None of the above

6. ‘A’ owed Rs. 25,000 to ‘B’ ‘A’ becomes insolvent. ‘B’ got A’s computer valuing Rs. 11,500 in his full settlement. Journal Entry will be passed in the books of ‘B’.

A. Purchase A/c Dr. 11,500
To A 11,500

B. Computer Dr. 11,500
Bad-debts Dr. 13,500
To A 25,000

C. Computer A/c Dr. 25,000
To A 25,000

D. Computer A/c Dr. 11,500
Purchases A/c Dr. 13,500
To A 25,000

7. Debit the receiver and credit the giver is correct for.

A. Personal

B. Real

C. Nominal

D. Hypothetical

8. Unexpired expenses is ______account.

A. Real

B. Nominal

C. Personal

D. Representative Personal

9. Recovery of bad debts written off previously will be ?

A. Credited to debtors A/c

B. Adjusted against provision for doubtful debts

C. Debited to debtors A/c

D. Credited to Profit and Loss A/c

10. The rule regarding PERSONAL ACCOUNT is :

A. Debit what comes in, credit what goes out.

B. Debit all expenses and losses, credit all incomes and gains

C. Debit the receiver, credit the giver

D. None

11. Sunset Tours has a Rs. 3,500 account receivable from Mohan. On January 20, the Rotary makes a partial payment of Rs. 2100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:

A. A credit to the cash received account of Rs. 2,100.

B. A credit to the Account receivable account of Rs. 2,100.

C. A debit to the cash account of Rs. 1,400.

D. A debit to the Account receivable account of Rs. 1,400.

12. The rent paid to landlord is credited to:

A. Landlord`s Account

B. Rent Account

C. Cash Account

D. None of these

13. In case of bad debts, which account is credited?

A. Bad debts Account

B. Creditors Account

C. Debtors Account

D. None of these

14. Capital of business is Rs. 75,000 and liability is Rs. 25,000 then total assets of business would be:

A. Rs. 1,00,000

B. Rs. 15,000

C. Rs. 75,000

D. Rs. 50,000

15. Narration is given along with journal entry:

A. To signify the impact of entry on profitability.

B. To disclose the profit or loss of the transaction.

C. To give a precise explanation for proper understanding of the entry.

D. To secretly understanding the inner meaning of entries.

16. Which account is the odd one out?

A. Office furniture & Equipment

B. Freehold land and Buildings

C. Inventory of materials

D. Plant and Machinery

17. Salaries are :

A. Revenue

B. Expense

C. Asset

D. Liability

18. Accounts payable :

A. Revenue

B. Expense

C. Asset

D. Liability

19. Proprietor account

A. Personal

B. Real

C. Nominal

D. None of the above

20. “Debit the receiver and credit the giver” is the golden rule for which type of account?

A. Real A/c

B. Personal A/c

C. Nominal A/c

D. None of these