MCQs on Journal Entries

Journal entry is a record of a business transaction taking place in the accounting books of a business. It is the first step of the accounting process. A journal entry is mostly recorded in a general ledger.

Following are some of the journal entry multiple choice questions and answers that will help the students in brushing up their understanding of the concept of journal entries in accounting.

Q1. Among these transactions, which transaction will have no impact on stockholders’ equity?

(a) Net loss

(b) Investment of cash by stockholders

(c) Dividends to stockholders

(d) Purchase of the land from the proceeds of bank loan

Answer: d

Q2. Amount invested by the proprietor in the business should be credit to:

(a) A/c payable

(b) Capital

(c) Cash

(d) Drawing

Answer: b

Q3. Transactions are first recorded in which book/account?

(a) Book of Original Entry

(b) T Accounts

(c) Accounting Equation

(d) Book of Final Entry

Answer: a

Q4. Goods returned by customer will be debited to which account?

(a) Purchases A/C

(b) Return outward

(c) Customer’s A/C

(d) Return inward

Answer: d

Q5. Journal is also called a?

(a) A day book

(b) History book

(c) Ledger book

(d) An entry book

Answer: a

Q6. ________ A/c is credited and ____ A/c is debited in case wages are paid for construction of business premises

(a) Cash, Wages

(b) Cash, Premises

(c) Premises, Cash

(d) Wages, Cash

Answer: b

Q7. Journal lists transactions in which order?

(a) Decreasing

(b) Chronological

(c) Alphabetical

(d) Increasing

Answer: b

Q8. Among these statements which one is incorrect regarding journal entry?

(a) The debited account titles are listed first

(b) Journal entries show the effects of transactions

(c) Each journal entry should begin with a date

(d) Journal entries provide account balances

Answer: d

Q.9 Cash withdrawal from business by the proprietor should be credited to

(a) Cash account

(b) Purchase account

(c) Capital account

(d) Drawings account

Answer: a

Q10. Which one of the following is called the book of original entry?

(a) Receipt and Payment Account

(b) Trial Balance

(c) General Journal

(d) General Ledger

Answer: c

For reading more such MCQs on various topics pertaining to Commerce visit here

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