Recording of Transactions : Basic accounting process

This set of MCQs helps students to learn about various important things such as, state the need for special purpose books, record the transactions in cash book and post them in the ledger, prepare the petty cash book, record the transactions in the special purpose books, post the entries in the special purpose book and to the ledger, balance the ledger accounts.

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Income tax is treated as-

Business Expense Direct Expense Personal Expense Indirect Expense.

Cash purchase of goods is recorded in-

Purchase book Sales book Cash – book None of these.

Credit purchase of furniture shall be recorded in-

Purchase book Journal book Cash – book None of these.

Cash book does not record transaction of:

Cash nature Credit nature Cash and credit nature None of these

Total of these transactions is posted in purchase account:

Purchase of furniture Cash and credit purchase Purchases return Purchase of stationery

The periodic total of sales return journal is posted to :