Today, we’ll learn about “30” Short Questions and Answers-Journal. The importance of “Journal” is immense in accounting.
The recording of the transaction starts with the journal.
If you read this article 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.
Short Questions and Answers-Journal
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” 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 that 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: A cash receipt journal is a journal entry that is made for all cash receipts transactions.
Question-23: What is Cash Payment Journal?
Answer: A 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 a 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 an 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.
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