Practice The Journal (book Of Original Entry) (2.2) - Journal, Ledger, and Trial Balance

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9 questions

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6 sample questions

Question 1.
What is the primary purpose of the journal in accounting?
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Think about where transactions start.
Question 2.
Name two components of a journal entry.
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These are the financial aspects of each entry.
3Question 3.
What is the journal primarily used for in accounting?
- To prepare financial statements
- To record transactions
- To store data
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Think about where transactions are initially documented.
4Question 4.
True or False: A journal entry must always contain a debit and a credit.
- True
- False
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Consider the rules of double-entry accounting.
Question 5.
Create a complete journal entry for an instance in which a company pays off a debt of ₹2,000.
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Think about how debt repayment affects liabilities and cash.
Question 6.
A business owner received a cash advance of ₹10,000 for services to be rendered in the future. How would this transaction be recorded?
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Consider the implications on revenue recognition.

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