Bookkeeping Journal Test — Questions and Answers
Question 1: Mark the journals that are special.
- Bank statement
- Sales journal (Correct answer)
- Purchases journal (Correct answer)
- Cash payments journal (Correct answer)
- Sales returns and allowances (Correct answer)
- General journal
Correct answer: Sales journal
Special journals are designed to efficiently record specific types of high-volume transactions. Common examples include the Sales Journal for credit sales, the Purchases Journal for credit purchases, and the Cash Payments Journal for all cash outflows. A Sales Returns and Allowances Journal may also be used for recording customer returns. The General Journal is used for transactions that don't fit into any special journal.
Question 2: Daybooks are also called.
- Source documents
- Bank statements
- Bookkeeping journals (Correct answer)
Correct answer: Bookkeeping journals
Journals are often called daybooks because transactions are recorded in them daily, in chronological order, as they occur. They serve as the initial record of financial events before being transferred to the ledgers. Therefore, 'bookkeeping journals' is another term for these records.
Question 3: What is the source of the information in the bookkeeping journals?
- Your diary
- The accounting source documents (Correct answer)
- The ledgers
Correct answer: The accounting source documents
The information recorded in bookkeeping journals comes directly from accounting source documents. These are the original pieces of evidence that verify a transaction, such as invoices, receipts, bank statements, and check stubs. Source documents provide the necessary details to accurately record entries in the journals.
Question 4: What are bookkeeping journals?
- Bank documents
- Books of original entry (Correct answer)
- Personal diaries
Correct answer: Books of original entry
Bookkeeping journals are known as 'books of original entry' because they are the very first place where financial transactions are formally recorded in the accounting system. Transactions are entered chronologically in journals before being summarized and transferred to the ledgers.
Question 5: On which side of the ledger do debits appear?
- The center
- The left hand side (Correct answer)
- The right hand side
Correct answer: The left hand side
Consistent with the T-account format, debits are always recorded on the left-hand side of a ledger account. This is a fundamental rule of double-entry bookkeeping, ensuring clarity and consistency in financial record-keeping.
Question 6: True/False: Only one form of journal exists.
- False (Correct answer)
- True
Correct answer: False
False. There are multiple forms of journals in accounting. Besides the general journal, which records all transactions not fitting elsewhere, businesses often use special journals for high-volume, repetitive transactions. Examples include the sales journal, purchases journal, cash receipts journal, and cash payments journal.
Question 7: What is the name of a business's main journal?
- A spreadsheet
- The sample book
- The general journal (Correct answer)
Correct answer: The general journal
The general journal is considered a business's main journal. It serves as the default journal for recording any transaction that does not fit into one of the specialized journals (like sales or purchases journals). All transactions are initially recorded in either the general journal or a special journal before being posted to the ledger.
Question 8: Journals for bookkeeping are used to.
- Record your life story
- Reconcile the bank statements
- Show which ledger accounts are debited and credited (Correct answer)
Correct answer: Show which ledger accounts are debited and credited
Bookkeeping journals are used to provide a chronological record of every business transaction, clearly showing which specific ledger accounts are to be debited and credited. This initial recording step is crucial for maintaining the balance of the accounting equation and preparing for the subsequent posting to the ledgers.
Question 9: The transferring data from journals to ledgers is known as:
- Posting (Correct answer)
- Faxing
- Emailing
Correct answer: Posting
The process of transferring data from the journals, where transactions are initially recorded chronologically, to the ledgers, where they are summarized by account, is known as posting. Posting updates the individual account balances in the general ledger, which are then used to prepare financial statements.
Bookkeeping Journal Test
Mark the journals that are special.