1. Bill payable book is a?
(a) Journal
(b) Principal book
(c) Ledger
(d) Memorandum book
2. The return of goods by a customer should be debited to?
(a) Return outward
(b) Return inward account
(c) Goods account
(d) Accounts receivable
3. An alternative name for a sales journal is?
(a) Sales invoice
(b) Sales ledger
(c) Daily sales
(d) Sales day book
4. Which of the following is not a book of prime or original entry?
(a) Sales daybook
(b) Purchase daybook
(c) Debtor’s account
(d) Cashbook
5. There are two books of account they are?
(a) Journal & ledger
(b) Journal & trail balance
(c) Trail Balance & Ledger
(d) None of these
6. X sends back Rs. 80 of faulty goods to Y. In which book of prime
entry would Y record this transaction?
(a) General Journal
(b) Purchase Return Journal
(c) Sales Journal
(d) Sales Return Journal
7. A bookkeeper discovers that an amount paid to a supplier has
been wrongly entered in another supplier’s account. Which book of
original entry will the bookkeeper use when correcting this error?
(a) Cash Book
(b) General Journal
(c) Purchase day book
(d) Sales day book
8. Which of the followings are books of prime entry?
(a) Sales day book and trial balance
(b) Petty cash book and accounts receivable ledger
(c) Petty cash book and journal
(d) Cash book and assets register
9. Transactions are initially recorded in the?
(a) Book of prime entry
(b) Book of original entry
(c) Journal
(d) All of before
10. Corrected the balance in the prepaid insurance at the end of the
month in?
(a) Cash Payments Journal
(b) General Journal
(c) Cash Receipts Journal
(d) Purchases Journal
11. Record goods return inward?
(a) Debit sale account and credit payable account
(b) Debit returns inward account and credit payable account
(c) Debit returns inward account and credit receivable account
(d) Debit receivables account and credit return inward account
12. If a company uses special journals, purchase of supplies on
account should be recorded in which journal?
(a) Cash receipts journal
(b) Purchases journal
(c) Cash disbursements journal
(d) General journal
13. Which of the following is the correct journal entry to record a
credit note issued to a customer for goods returned?
(a) Debit Sales returns and Credit Cash
(b) Debit Cash and Credit Sales returns
(c) Debit Trade receivables and Credit Sales returns
(d) Debit Sales returns and Credit Trade receivables
14. Adjustment is to record depreciation at the end of the month in?
(a) Cash Payments Journal
(b) Cash Receipts Journal
(c) General Journal
(d) Purchases Journal
15. Mr. Ali buys goods on credit from Star Co. but finds that some of
them are faulty. What document would Mr. Ali return to Star Co.
with the faulty goods?
(a) Statement
(b) Debit note
(c) Sales invoice
(d) Purchase invoice
16. Which of the following book(s) is (are) a part of Journal?
(a) Cash Book
(b) Purchase Return Book
(c) Purchase Book
(d) All of the given options
17. If a company uses special journals, credit sales should be
recorded in which journal?
(a) General journal
(b) Purchases journal
(c) Sales journal
(d) Cash receipts journal
18. Receipt of cash from sale of office equipment recorded in?
(a) Cash Payments Journal
(b) Cash Receipts Journal
(c) Purchases Journal
(d) General Journal
19. If a company uses special journals, purchase of a building
financed by a mortgage payable should be recorded in which
journal?
(a) Sales journal
(b) General journal
(c) Cash receipts journal
(d) Purchases journal
20. Cash book is a?
(a) Voucher
(b) General Journal
(c) General Ledger
(d) Dual Book
Identify which book of prime entry is used for the transactions which follow.
1. A payment is made to a supplier for goods supplied?
Purchase day book
Cash book
2. A customer invoice is issued for the sale of goods?
Sales day book
Cash book
3. A cash payment is made for postage stamps?
Petty cash book
Purchases day book
4. An invoice is received from a supplier for goods and services supplied?
Purchase day book
Sales day book
5. A payment is made to a supplier?
Purchase day book
Cash book
6. Goods are returned to a supplier?
Purchase returns day book
Sales returns day book
7. Cash is received from a customer?
Cash book
Sales day book
8. A customer returns goods to the business?
Purchase returns day book
Sales returns day book
9. A credit note is received from a supplier?
Purchase returns day book
Purchase day book
10. A debit note is issued to a customer?
Sales returns day book
Sales day book
Q1. Among these transactions, which transaction will have no impact on stockholders’
equity?
(a) Net loss
(b) Investment of cash by stockholders
(c) Dividends to stockholders
(d) Purchase of the land from the proceeds of bank loan
Q2. Amount invested by the proprietor in the business should be credit to:
(a) A/c payable
(b) Capital
(c) Cash
(d) Drawing
Q3. Transactions are first recorded in which book/account?
(a) Book of Original Entry
(b) T Accounts
(c) Accounting Equation
(d) Book of Final Entry
Q4. Goods returned by customer will be debited to which account?
(a) Purchases A/C
(b) Return outward
(c) Customer’s A/C
(d) Return inward
Q5. Journal is also called a?
(a) A day book
(b) History book
(c) Ledger book
(d) An entry book
Q6. ________ A/c is credited and ____ A/c is debited in case wages are paid for
construction of business premises
(a) Cash, Wages
(b) Cash, Premises
(c) Premises, Cash
(d) Wages, Cash
Q7. Journal lists transactions in which order?
(a) Decreasing
(b) Chronological
(c) Alphabetical
(d) Increasing
Q8. Among these statements which one is incorrect regarding journal entry?
(a) The debited account titles are listed first
(b) Journal entries show the effects of transactions
(c) Each journal entry should begin with a date
(d) Journal entries provide account balances
Q.9 Cash withdrawal from business by the proprietor should be credited to
(a) Cash account
(b) Purchase account
(c) Capital account
(d) Drawings account
Q10. Which one of the following is called the book of original entry?
(a) Receipt and Payment Account
(b) Trial Balance
(c) General Journal
(d) General Ledger
