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Byju's Answer
Standard XII
Accountancy
Receipts and Payments Account
When it is ne...
Question

When it is necessary to analyse transactions in terms of debit and credit ?

A
While Journalizing.
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B
While Posting.
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C
At both times.
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D
None of the above.
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Solution

The correct option is B While Journalizing.
When the business transactions take place, the first step is to record the same in the books of original entry or subsidiary books or books of prime or journal. Thus, journal is a simple book of accounts in which all the business transactions are originally recorded in chronological order and from which they are posted to the ledger accounts at any convenient time. Journalisisng refers to the act of recording each transaction in the journal and the form in which its is recorded, is known as a journal entry.

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Q. When is it necessary to analyse a transaction in terms of debit and credit?
Q.

Describe how debits and credits are used to analyse transactions.

Q.

Describe how debits and credits are used to analyse transactions.

Q. 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.
Q. Journalise the following transactions in the books of Afzal, Kolkata and post them to the Ledger:
2019 ₹
Jan. 1 Started business with cash 1,00,000
Jan. 3 Bought goods on credit from Gupta & Co., Delhi 20,000
Jan. 5 Cash sales 5,000
Jan. 8 Cash purchases 8,000
Jan. 10 Sold goods to Ahmed & Co., Lucknow 10,000
Jan. 11 Deposited cash in bank 50,000
Jan. 13 Purchased a computer for office 20,000
Jan. 15 Took a loan from Mehboob 70,000
Jan. 16 Goods returned by Ahmed & Co. 2,000
Jan. 17 Purchased furniture from Mehfil Mart, Kolkata 10,000
Jan. 18 Paid interest to Mehboob 2,000
Jan. 19 Received claim from Ahmed & Co. for defects in goods supplied to them.
Claim was accepted and rebate was allowed.		 1,000
Jan. 22 Paid rent by cheque 2,000
Jan. 24 Withdrew from bank 20,000
Jan. 25 Sales of goods at counter after allowing trade discount of 10% 10,000
Jan. 26 Goods purchased from Gupta & Co., Delhi were destroyed by accident 10,000
Jan. 27 Advertisement expenses paid through bank 5,000
Jan. 28 Ahmed & Co. settled their account by cheque 7,000
Jan. 29 Paid the due amount to Gupta & Co. by cheque after availing discount of ₹ 800
Jan. 31 Sold old newspapers 500
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