Recording of Transactions – II

Topics in this chapter

• Source Documents and Vouchers
• Journal Entries and Journal Proper
• Purchases and Sales Books
• Returns Books and Entries
• Cash Book and Cash Transactions
• Petty Cash and Imprest System
• Ledger Posting and Discounts

Cheat sheet

Practice questions

1. Question 1Q-DC0C25

   Which of the following subsidiary books records all credit purchases of goods dealt in by the business?

   1. A.Purchase Book
   2. B.Sales Book
   3. C.Cash Book
   4. D.Journal Proper
   See the answer and solution
2. Question 2Q-5DE8E8

   What document is issued by the seller to the buyer when goods are returned by the buyer?

   1. A.Debit Note
   2. B.Credit Note
   3. C.Invoice
   4. D.Cash Memo
   See the answer and solution
3. Question 3Q-31E7B5

   A cash book with cash, bank, and discount columns is known as:

   1. A.Simple Cash Book
   2. B.Double Column Cash Book
   3. C.Triple Column Cash Book
   4. D.Petty Cash Book
   See the answer and solution
4. Question 4Q-4525D4

   What is a contra entry in accounting, and in which book is it recorded?

   See the answer and solution
5. Question 5Q-2DF5BF

   Which of the following transactions is recorded in the Journal Proper?

   1. A.Cash paid to a creditor
   2. B.Credit purchase of machinery
   3. C.Credit sale of goods
   4. D.Goods returned by a customer
   See the answer and solution