Chapter 4

Recording of Transactions - Journal Ledger and Subsidiary Books

Short Answer-Question

1. What is a Journal? Give a specimen.

2. What is a Cash Book? How is it prepared?

3. Why does the Cash Book always show a balance?

4. How does a Cash Book serve a dual purpose?

5. Name the various types of Cash Books.

6. What is the meaning of contra entry?

7. What are the special Purpose Books?

8. What do you mean by Imprest System of Petty Cash Book?

9. What do you mean by Balancing of Accounts?

10. What is a journal folio?

Long Answer-Question

1. Explain how debits and credits are used to analyse a transaction.

2. State the main advantages of subdivision of journal.

3. What are ‘Books of Original Entry’ ? What are the rules of Journalisng of different types of accounts?

4. Explain the form and advantage of keeping a three column cash book.

5. What do you understand by Ledger? Explain its utility and importance.

6. What is Petty Cash Book? What are its advantages ?

7. What are the objectives of preparing financial statements?

8. What is the purpose of preparing trading and profit and loss account

Short Answers Subsidiary Books

1. Briefly state how the cash book is both journal and a ledger.

2. What is the purpose of contra entry?

3. What are special purpose books?

4. What is petty cash book? How it is prepared?

5. Explain the meaning of posting of journal entries?

6. Define the purpose of maintaining subsidiary journal.

7. Write the difference between return Inwards and return outwards.

8. What do you understand by ledger folio?

9. What is difference between trade discount and cash discount?

10. Write the process of preparing ledger from a journal.

11. What do you understand by Imprest amount in petty cash book?

Long Answers- Subsidiary Books

1. Explain the need for drawing up the special purpose books.

2. What is cash book? Explain the types of cash book.

3. What is contra entry? How can you deal this entry while preparing double column cash book?

4. What is petty cash book? Write the advantages of petty cash book?

5. Describe the advantages of sub-dividing the Journal.

6. What do you understand by balancing of account?

Update of this page in October