1st Year Principles of Accounting Chapter 4 TestJournal: The original Book Of Entry

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. Goods returned to Ahmad should be debited to:

   1. Sales return account

   2. Ahmad account

   3. Purchase return account

   4. Purchase account

2. Discount received from Ali should be debited to:

   1. Discount received account

   2. Ali account

   3. Discount account

   4. Discount allowed

3. Purchased a motorcycle by the proprietor for his personal use should be debited to:

   1. Purchases account

   2. Motorcycle account

   3. Proprietor’s Personal account

   4. Drawings account

4. Goods sold on account to Babar should be credited to:

   1. Babar account

   2. Goods account

   3. Sales account

   4. Purchase account

5. Journal is called the book of:

   1. Original entry

   2. First entry

   3. Preliminary entry

   4. All of above

6. Purchase furniture from Saleem’s furniture at list price of Rs 500 subject to 5% trade discount should be debited to:

   1. Purchase account

   2. Furniture account

   3. Furniture, trade discount

   4. Purchase, trade discount

7. Debit signifies:

   1. Increase in asset account

   2. Decrease in liability account

   3. Decrease in Capital account

   4. All of above

8. The art of recording transaction in a journal is called:

   1. Posting

   2. Journaling

   3. Ledger entry

   4. Compound entry

9. A table lost by fire should be debited to:

   1. Table account

   2. Furniture account

   3. Loss by fire account

   4. Purchase account

10. Goods returned by Zain should be debited to:

    1. Purchase return account

    2. Zain account

    3. Sales return account

    4. Purchase account