JOURNAL

Journal is called a book of

• (a) primary entry

• (b) secondary entry

• (c) final entry

• (d) none of the above

Business transactions are recorded

• (a) in chronological order

• (b) weekly

• (c) at the end of the month

• (d) all of these

A compound journal entry

• (a) has equal debits and credits

• (b) generally extends to several pages

• (c) does not require narration

• (d) all of these

Which of the following accounts will be credited on giving cash donation ?

• (a) Cash A/c

• (b) Donation A/c

• (c) Purchases A/c

• (d) None of these

A sale of goods to Ram for cash is debited to

• (a) Ram

• (b) Cash

• (c) Sales

• (d) None of these

A withdrawal of cash from business by the proprietor is credited to

• (a) Drawings A/c

• (b) Capital A/c

• (c) Cash A/c

• (d) None of these

First computers purchased computers from HCL Ltd. and availed both trade discount and cash discount. The transactions recorded in the books of account will be for :

• (a) Net invoice value and cash discount

• (b) Trade discount , gross invoice value and cash discount

• (c) none of the above

• (d) any of (a) and (b)

Trade discount allowed is deducted from the gross sales. Sales is recorded in the business books of account at :

• (a) Gross sales and trade separately

• (b) Net sales invoice

• (c) None of the above

• (d) Any of (a) and (b)

Trade discount received on purchases is recorded in the books of account as follows :

• (a) Trade discount is credited to discount received account

• (b) Trade discount is deducted from the invoice price and recorded at net value

• (c) None of the above

• (d) Any of (a) and (b)

Cash discount allowed is recorded in the books of account as follows :

• (a) Cash discount is debited to discount allowed account

• (b) Cash discount is reduced from the invoice price

• (c) None of the above

• (d) Any of (a) and (b)