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Recording Financial Transactions

This document contains a module on recording financial transactions with 10 multiple choice questions and their answers. The questions cover topics like balancing accounts, books of accounts, recording transactions in journals, accounting systems, recording sales on credit, treatment of securities premium, interest on calls in advance, classification of debentures, issuing debentures at discount/premium, and characteristics of debentures versus equity. The answers provided are short and indicate the key terms and concepts addressed in each question.

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Vibhav Mahale
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36 views4 pages

Recording Financial Transactions

This document contains a module on recording financial transactions with 10 multiple choice questions and their answers. The questions cover topics like balancing accounts, books of accounts, recording transactions in journals, accounting systems, recording sales on credit, treatment of securities premium, interest on calls in advance, classification of debentures, issuing debentures at discount/premium, and characteristics of debentures versus equity. The answers provided are short and indicate the key terms and concepts addressed in each question.

Uploaded by

Vibhav Mahale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Module 3

Recording Financial Transactions


Q. 1 The technique of finding the net balance of an account
after considering the totals of both debits and credits
appearing in the account is known as:
1) posting
2) balancing of an account
3) arithmetically accuracy test
) !ournali"ing
Q2. #edger book is popularly known as
1) $econdary books of accounts
2) $ubsidiary books of accounts
3) %rincipal books of accounts
) &one of the abo'e
Q3. (ectifying the error of a credit sale of goods worth (s.
2)*** recorded as credit purchase from +(. ,. -n which
book of original entry. will you record the following
transaction/
1) $ales book
2) %urchase book
3) 0ash 1ook
) 2ournal %roper
Q. 3 system in which accounting entries are made on the
basis of amount ha'ing become due for payment or receipt
is
1) 0ash $ystem
2) +ercantile $ystem
3) %erpetual $ystem
) $ingle entry $ystem
Q). 4oods costing (s. 1)**** sold on 1 month credit on 31
2ul and recorded on 31 3ug when debtor5s a6c is settled. The
transaction is recorded under 7777 system/
1) +ercantile
2) 0ash
3) %erpetual
) 0redit
Q8. The e9cess price recei'ed o'er the par 'alue of shares.
should be credited to
1) 0alls in ad'ance 36c
2) $ecurities %remium 36c
3) $hare 0apital 36c
) #oss on issue of shares 36c
Q:. ;hich of the following statement is false/
1) -nterest on calls in ad'ance is paid from the date of
receipt of ad'ance to the date of rele'ant call
2) %ayment of interest on calls in ad'ance is at the
discretion of the company
3) -nterest on calls in ad'ance is paid at rate of 8<
) The fi9ed 'alue of a share. printed on the share
certificate is called nominal 'alue of a share
Q=. >ebenture is a
1) 0urrent 3sset
2) 0urrent #iability
3) 0apital
) #ong term loan
Q?. >ebentures can be issued at
1) >iscount
2) @ace 'alue
3) %remium
) 3ll of the abo'e
Q1*. ;hich of the following statement is false/
1) Aquity is the owners stake and debenture is debt
2) -nterest on debenture is an appropriation of profit
3) (ate of debenture interest is fi9ed
) >iscount on issue of debenture is a capital loss to be
written off o'er the tenure of debenture
3nswer
1. balancing of an account
2. %rincipal books of accounts
3. 2ournal %roper
. +ercantile $ystem
). 0ash
8. $ecurities %remium 36c
:. %ayment of interest on calls in ad'ance is at the
discretion of the company
=. #ong term loan
?. 3ll of the 3bo'e
1*. -nterest on debenture is an appropriation of profit

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