Journal for Purchase and Sale

Q. When goods are sold on credit, account is debited and account is credited.

1. Sales
2. Creditors
3. Cash
4. Debtors
5. Sales return

Q.

The correct journal entry for return of goods purchased from Mr. John on credit is:

1. John - debit; Stock - credit

2. None of the above

3. Cash - debit; purchases - credit

4. John - debit; purchase return - credit

Q.

What is meant by a Cash Memo?

Q.

Goods worth Rs 1000 given on charity should be credited to which account in journal ?

1. Charity Account

2. Donation Account

3. Purchases Account

4. Sales Account

Q.

Goods sold to Mr. A on credit shall be credited to ___ .

1. Goods Account

2. Cash Account

3. Mr. A 's Account

4. Sales Account

Q.

Which of the following will be credited in a journal, if a business purchases goods on credit?

1. Debtor

2. Creditor

3. Cash

4. Purchases

Q. Goods sold to Mr.A on credit shall be credited to account.

1. Purchases
2. Sales
3. Mr.A
4. Creditors

Q. Purchases made from Sumit for cash should be credited to account.

1. Cash
2. Purchases
3. Sumit
4. Creditors

Q.

Jay and Vaishali are partners in a firm. The firm receives an order for goods. Vaishali wants to include it in the sales figure but Jay opposes it. Settle the issue.

Q.

What information is included in the purchase book?

Q. Sales of office furniture should be credited to Sales Account.

1. True
2. False

Q. Select the reasons for purchase return _______________.

1. Inferior quality
2. All of the above
3. Defective goods
4. Damaged in transit

Q.

What is the difference between debit note and credit note?

Q. Sometimes opening and closing stock are _________ through purchase account.

1. Appreciated
2. Depreciatrion
3. Adjusted
4. None of these.

Q. Give one word or term or phrase for each of the following statements.

The type of account wherein purchase and sales Account are included.

Q. Assets sold on credit are entered in sales journal.

1. True
2. False

Q. When goods are sold on credit basis the seller becomes a _________ and a buyer becomes a ___________.

1. drawer, drawee
2. creditor, debtor
3. drawee, drawer
4. debtor, creditor

Q. A nominal sum given as a token for striking a sale is called _________________.

1. earnest money
2. interest
3. advance
4. solution

Q. The revenue from a transaction involving the sale of goods is recognized ________________________.

1. When the seller has transferred the property in the good to the buyer for a consideration
2. At the time of sale agreement
3. When the goods are actually delivered
4. When the cash is received from the customer

Q. A creditor would use an entitie s financial report to determine whether or not credit may be granted to the firm . Explain it