BOOKS OF PRIME ENTRY_ JOURNAL

What is the primary purpose of a General Journal?

• To record all business transactions that cannot be recorded in the cash book or special book

• To record only cash transactions

• To summarize financial statements

• To record bank reconciliations

     Which of the following transactions is NOT recorded in the General Journal?

• Cash sales

• Opening entry

• Purchase and sales of fixed assets

• Additional capital

Which type of journal is used to record credit purchases?

• General Journal

• Purchase Journal

• Cash Book

• Petty Cash Book

  A Sales Journal is used to record:

• Credit sales transactions

• Cash sales transactions

• Returns from customers

• Fixed asset purchases

 What is recorded in the Return Inwards Journal?

• Goods returned by customers

• Cash sales transactions

• ·         Returns of goods to suppliers

• ·         Returns of goods to suppliers

What is the journal entry when a business owner withdraws goods for personal use?

• Dr. Drawings, Cr. Purchase

• Dr. Purchase, Cr. Drawings

• Dr. Owner’s Equity, Cr. Drawings

• Dr. Purchase, Cr. Cash

What does Dr. Fixed Asset, Cr. Creditors represent?

• Purchase of fixed assets on credit

• Purchase of fixed assets on cash

• Sale of fixed assets on credit

• Sale of fixed assets for cash

If a business sells a machine on credit, which journal should be used?

• General Journal

• Purchase Journal

• Sales Journal

• Cash Book

Which of the following is not recorded in the Journal?

• Correction of errors

• Credit purchase of goods

• Depreciation adjustments

• Cash payments

If an owner introduces additional capital in the form of a vehicle, the journal entry is:

• Dr. Vehicle, Cr. Capital

• Dr. Vehicle, Cr. Cash

• Dr. Cash, Cr. Capital

• Dr. Drawings, Cr. Vehicle