Online Test — Journal
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
The journal is the book of:
Final entry
Original entry
Secondary entry
No entry
Explanation: The journal is the book of original (first) entry.
Question 2 of 15
Ram's account is a ____ account.
Real
Nominal
Personal
Asset
Explanation: Accounts of persons/firms are personal accounts.
Question 3 of 15
Cash account is a ____ account.
Personal
Real
Nominal
Expense
Explanation: Cash (an asset/property) is a real account.
Question 4 of 15
Rent paid is a ____ account.
Real
Personal
Nominal
Capital
Explanation: Expenses are nominal accounts.
Question 5 of 15
Golden rule for personal accounts:
Debit what comes in
Debit the receiver, credit the giver
Debit expenses
Credit incomes
Explanation: Personal: debit the receiver, credit the giver.
Question 6 of 15
Golden rule for real accounts:
Debit the receiver
Debit what comes in, credit what goes out
Debit expenses & losses
Credit the giver
Explanation: Real: debit what comes in, credit what goes out.
Question 7 of 15
Under the modern rule, an increase in an asset is a:
Credit
Debit
Loss
Gain
Explanation: Assets increase on the debit side.
Question 8 of 15
Under the modern rule, an increase in capital is a:
Debit
Credit
Expense
Asset
Explanation: Capital increases on the credit side.
Question 9 of 15
'Started business with cash' is journalised as:
Cash A/c Dr, To Capital A/c
Capital A/c Dr, To Cash A/c
Purchases A/c Dr, To Cash A/c
Drawings A/c Dr, To Cash A/c
Explanation: Cash comes in (Dr); owner gives capital (Cr).
Question 10 of 15
An entry with more than two accounts is a:
Simple entry
Compound entry
Single entry
Null entry
Explanation: More than two accounts = compound entry.
Question 11 of 15
A machine bought for use in the factory is debited to:
Purchases A/c
Machinery A/c
Goods A/c
Expense A/c
Explanation: An asset for use is debited to its own account, not Purchases.
Question 12 of 15
Cash withdrawn by the proprietor for personal use is debited to:
Salary A/c
Drawings A/c
Capital A/c
Cash A/c
Explanation: Owner's withdrawals are debited to Drawings A/c.
Question 13 of 15
In an opening entry, liabilities and capital are:
Debited
Credited
Ignored
Erased
Explanation: Opening entry debits assets and credits liabilities and capital.
Question 14 of 15
Closing entries transfer nominal accounts to the:
Balance Sheet
Trading and Profit & Loss Account
Cash Book
Journal Proper only
Explanation: Expenses and incomes are closed to Trading and P&L.
Question 15 of 15
Errors already recorded are corrected by:
Erasing
A rectifying entry
Overwriting
Whitener
Explanation: A fresh rectifying entry corrects errors honestly.