30 Short Questions and Answers-Journal

Short Questions and Answers-Journal

The importance of “Journal” is immense in accounting. The recording of the transaction starts with the journal. Today, I’m going to share “30” Short Questions and Answers-Journal.

If you read it from the beginning to the end, I am sure you’re going to get the basic concept of the journal.

If you practice it on a regular basis, it will certainly improve your accounting skills, which will help you win any accounting competition.

For theory please read this article Accounting Journal-Definition, Features, Rules for Journal Entry

So let’s get started.

Question-01: What is a journal?

Answer: The book in which the detail of the transactions is recorded first analyzing the debit and credit side of a transaction and is written chronologically with an explanation is called a journal.

Question-02: What is the origin of the word “journal” ?

Answer: The word “journal” is originates from the French word “Jour”.

Question-03: What is the 3rd step of the accounting cycle?

Answer: The 3rd step of the accounting cycle is Journal.

Question-04: What is Journal called?

Answer: A journal is called the

  • Primary books,
  • Daily books, and
  • Subsidiary books of accounts.

Question -05: What is the feature of the journal?

Answer: The features of the journal are as follows:

  • Primary/Daily/Subsidiary books of accounts.
  • Analysis into the dual aspect.
  • Provide necessary narration.
  • Recording in equal amounts.
  • A reference to the litigation of disputes, etc.

Question-06: What are the benefits of a journal?

Answer: The benefits of the journal are as follows:

  • A permanent record of transactions.
  • Determination of heads of accounts.
  • A storehouse of information.
  • Future reference.
  • Maintenance of continuity of transactions.
  • Aid to maintain the cleanliness of the ledger.
  • Aid to litigate disputes, etc.

Question-07: Why is Journal called the book of basic accounts?

Answer: Journal is called the book of basic accounts because if any doubt arises, it can be examined in the journal.

Question-08: Which accounts can be easily separated through the journal?

Answer: The accounts can be easily separated through the journal are as follows:

  • Nominal accounts,
  • Personal accounts, and
  • Asset accounts.

Question-09: What is the main purpose of the journal?

Answer: The main purpose of the journal is initial accounting.

Question-10: For accounting purposes, how many categories are there in a journal?

Answer: There are eight (8) categories in a journal.

Question-11: Journal makes it easy to prepare which account?

Answer: Ledger Account.

Question-12: What is the total number of columns in the journal table?

Answer: The total number of columns in the journal table is five (5).

Question-13: What is a simple journal?

Answer: Simple journal is a journal that has one debit account and one credit account.

Question-14: What is a mixed journal?

Answer: Mixed journal is a journal that has multiple debit accounts and multiple credit accounts.

Question-15: Special journals can be divided into how many parts? What are their names?

Answer: Journals can be divided into two (2) parts which are as follows:

  • Special Journal and
  • Proper Journal.

Question-16: What is a Special journal?

Answer: Special journal is a journal entry that is made for recording almost all the transactions that take place in business.

Question-17: Special journals can be divided into how many parts? What are their Names?

Answer: Special journals can be divided into six (6) parts which are as follows:

  • Purchase Journal
  • Sales Journal
  • Purchase Return Journal
  • Sales Return Journal
  • Cash Receipt Journal and
  • Cash Payment Journal.

Question- 18: What is the purchase Journal?

Answer: Purchase journal is a journal entry that is made for recording all the credit goods purchased of a business.

Question-19: what is a sales journal?

Answer: Sales journal is a journal entry that is made for recording all the credit goods sales of a business.

Question-20: What is Purchase return Journal?

Answer: Purchase return journal is a journal entry that is made for recording goods purchased on credit but returned.

Question-21: What is the sales return journal?

Answer: Sales return journal is a journal entry that is made for recording goods sold on credit but returned.

Question-22: What is the cash receipt Journal?

Answer: Cash receipt journal is a journal entry that is made for all cash reciepts transactions.

Question-23: What is Cash Payment Journal?

Answer: Cash payment journal is a journal entry that is made for all cash payment transactions.

Question-24: What is Proper Journal?

Answer: Proper Journal is a journal entry that is made for transactions that are not included in a special journal.

Question-25: The Proper journal can be divided into how many parts? What are their names?

Answer: The Proper journal can be divided into four (4) parts which are as follows:

  • Rectification Journal
  • Adjusting Journal
  • Closing Journal and
  • Opening Journal.

Question-26: What is Rectification Journal?

Answer: Rectification Journal is the entry that is given for the correction of errors on recording transactions.

Question-27: What is the adjusting Journal?

Answer: The adjusting Journal is the entry that is made for the unrecorded and unadjusted items.

Question-28: What is closing Journal?

Answer: Closing Journal is the entry that is made for the closing of nominal accounts (income and expenditure accounts).

Question-29: What is opening Journal?

Answer: The entry which is given for carrying out the last year’s assets, liabilities, and owner’s equity to the beginning of the next year is known as opening Journal.

Question-30: what is known from the journal?

Answer: Total number of transactions, the total number of money, and the reason for transactions are easily known from the journal.

I hope, at the end of the article you have a basic idea about the journal. Practice these “30” Short Questions and Answers-Journal on a regular basis.

Don’t forget to comment us if you like it or want to know more.

You can also read:

Short Questions and Answers:

  1. Introduction to Accounting
  2. Transaction
  3. Account
  4. Double Entry System
  5. Accounting Cycle
  6. Ledger
  7. Cash Book
  8. Bank Reconciliation Statement
  9. Trial Balance
  10. Financial Statements
  11. Receivables
  12. Accounting Principles
  13. Plant Assets and Depreciation

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