Recording of Transactions – I

Topics in this chapter

• Source Documents and Vouchers
• Rules of Debit and Credit
• Journalising and Original Entry
• Common Transaction Entries
• Discounts in Transactions
• Cash Book and Contra Entries
• Opening and Adjusting Entries

Cheat sheet

Practice questions

1. Question 1Q-32F0A0

   Which of the following vouchers is prepared for recording a cash purchase of goods?

   1. A.Debit Voucher
   2. B.Credit Voucher
   3. C.Transfer Voucher
   4. D.Non-cash Voucher
   See the answer and solution
2. Question 2Q-7987B0

   Goods costing Rs. 10,000 were given away as charity. Which journal entry is correct?

   1. A.Debit Charity Account by Rs. 10,000; Credit Purchases Account by Rs. 10,000
   2. B.Debit Charity Account by Rs. 10,000; Credit Cash Account by Rs. 10,000
   3. C.Debit Purchases Account by Rs. 10,000; Credit Charity Account by Rs. 10,000
   4. D.Debit Drawings Account by Rs. 10,000; Credit Charity Account by Rs. 10,000
   See the answer and solution
3. Question 3Q-EC050A

   What is the primary book of original entry in which all business transactions are recorded in chronological order?

   1. A.Ledger
   2. B.Trial Balance
   3. C.Journal
   4. D.Balance Sheet
   See the answer and solution
4. Question 4Q-8F1C2F

   Machinery purchased for cash is recorded in the Journal with which of the following entries?

   1. A.Debit Cash Account, Credit Machinery Account
   2. B.Debit Machinery Account, Credit Cash Account
   3. C.Debit Purchases Account, Credit Cash Account
   4. D.Debit Machinery Account, Credit Capital Account
   See the answer and solution
5. Question 5Q-232FDC

   Which of the following accounts must be credited when a business owner withdraws goods for personal use?

   1. A.Drawings Account
   2. B.Capital Account
   3. C.Purchases Account
   4. D.Sales Account
   See the answer and solution