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

(1) A book of original entry.
(2) The process of recording transactions in the journal.
(3) Brief explanation of an entry.
(4) The French word from which the word journal is derived.
(5) Entry in which more than one account are to be debited or credited.
(6) Anything taken by proprietor from business for his personal use.
(7) Amount of money payable to broker while buying and selling the shares and securities.
(8) Entry in which one account is debited and another account is credited
(9) The column in journal, which is not filled at the time of Journalising.
(10) An account that is debited when rent is paid to landlord.

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Solution

(1) A book of original entry- Journal
Explanation:
All the transactions of a business are recorded for the first time in the book of original entry. A Journal is one of the main book of original entry. It is called the book of original entry as all the transactions are recorded in the Journal in a chronological order.

(2) The process of recording transactions in the journal- Journalising
Explanation:
Journalising is the process of recording transactions in the book of original entry, i.e. a Journal. The transactions are recorded in a chronological order, i.e. occurrence-wise. These transactions are recorded according to the rules of debit and credit and after ascertaining the accounts that are affected.

(3) Brief explanation of an entry- Narration
Explanation:
The narration is a brief explanation of the transaction together with the necessary details that are provided with the Journal entry. It is necessary to write the narration, as it provides the details of the Journal entry and helps understand the account that is debited or credited. For example, a narration for the transaction of payment of Rs 2,000 as salary will be:
Salary of Rs 2000 is paid in cash.

(4) The French word from which the word journal is derived- Jour
Explanation:
Journal is derived from the French word ‘Jour’ which means daily records. Therefore, Journal means a book, wherein the day-to-day transactions are recorded date–wise, i.e. in a chronological order.

(5) Entry in which more than one account are to be debited or credited- Compound/ Combined entry
Explanation:
The Journal entries in which more than one account is to be debited or credited are known as compound or combined journal entries. Sometimes, two or more transactions, relating to one particular account, may take place on the same date. Hence, instead of passing separate entries for all such transactions, only one entry is passed.
For example: - On 30th June, Rs 5,000 for salaries and Rs 2,000 for rent are paid in cash. The entry will be:-

Salary A/c

Dr.

5,000

Rent A/c

Dr.

2,000

To Cash A/c

7,000

(Salaries and Rent are paid in cash)

(6) Anything taken by proprietor from business for his personal use- Drawings
Explanation:
The amount/ value of goods taken by a proprietor from a business for his personal use are termed as drawings.

(7) Amount of money payable to broker while buying and selling the shares and securities- Brokerage
Explanation:
Any fee or commission paid to a broker, who is engaged in buying and selling of shares and securities, is termed as brokerage.

(8) Entry in which one account is debited and another account is credited- Simple entry
Explanation:
An entry in which one account is debited and another account is credited, is termed as simple entry. It involves only two accounts, i.e. one is debited and other is credited. For example: Goods worth Rs 4,000 are purchased for cash. It involves two accounts: ‘Purchases A/c’, which will be debited and ‘Cash A/c’, which will be credited.

(9) The column in journal, which is not filled at the time of Journalising- Ledger Folio
Explanation:
The Ledger Folio is the column that is not filled at the time of Journalising. This column records the page number or folio number of the ledger accounts on which the relevant account appears. Thus, the page number of the ledger accounts can only be recorded once the entries are posted to the ledger. Hence, this column is not filled at the time of Journalising.

(10) An account that is debited when rent is paid to landlord- Rent A/c
Explanation:
The payment of rent is an expense for a business and all the expenses are classified as a nominal account. As per the rule of nominal account, all expenses and losses should be debited and all incomes and gains should be credited. Hence, Rent A/c will be debited.

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Similar questions

State whether the following statements are true or false:

(1) A journal voucher is must for all transactions recorded in the journal.
(2) Journal is a book of secondary entry.
(3) Narration is not necessary for each and every journal entry.
(4) Every transaction is recorded first in the journal.
(5) Live Stock A/c is a Nominal A/c.
(6) Bank of Maharashtra A/c is a Nominal A/c.
(7) Brokerage paid on sale of goods is debited to brokerage A/c.
(8) If the goods are sold the entry should be recorded in the journal.
(9) Goods withdrawn by the proprietor from business is debited to the Drawing A/c.
(10) Cash discount does not appear in the books of accounts.
(11) If rent is paid to the landlord, landlord’s A/c should be debited.
(12) Book keeping records monetary transactions only.
(13) Drawings made by the proprietor increases his capital.
(14) Premium paid on the life policy of the proprietor should be debited to insurance premium account.

A journal entry in which two or more account is debited or credited is referred as ___.

Give one word, phrase or term for the following

1. Business Assets which cannot be seen, touched but can be sold for cash.
2. Name the account which is debited when the proprietor uses business money for domestic use.
3. Proprietor’s personal account
4. The amount paid to owner/ author of book copyright for the use of book.
5. Right hand side of an account.
6. Accounts other than the impersonal account.
7. Accounts of properties
8. Name the account which is debited when dog is purchased for business security.
9. Left hand side of an account.
10. Name the account which is debited for payment of import duty.

Ananya withdrew Rs. 2,000 per month for personal use, recording each transaction as a debit to her drawing account and a credit to her cash account. The journal entry closing the drawing account requires a credit to _______ account & debit to _______ account.

Write the word, term, phrase, Which can substitute each of the following statement.

1) Transfer of a Journal entry from Journal to ledger.
2) Total of Debit side of an A/c is more than total of Credit side of an A/c.
3) Page number of ledger.
4) A book of an account in which all ledger accounts are maintained.
5) Left hand side of an account.
6) Right hand side of an account.
7) Types of accounts which are not balanced but transferred to Trading A/c or Profit & Loss A/c.
8) Bound book of accounts.
9) An account where total of Purchases Book is posted.
10) A statement of accounts prepared from the balances of ledger account.

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Salary A/c	Dr.	5,000
Rent A/c	Dr.	2,000
To Cash A/c			7,000
(Salaries and Rent are paid in cash)