Sales on credit is recorded in which of the following journal?

Related Mcqs:

1. Credit memo or credit note No. is entered in which of the following journal?

   A. General journal
   B. Cash journal
   C. Purchase journal
   D. Sales return day book

2. Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________?

   A. Error of principle
   B. Error of commission
   C. Error of omission
   D. Error of duplication

3. Which of the following is a type of cash receipt journal + cash payment journal?

   A. Bank statement
   B. Statement of cash flow
   C. Cash book
   D. Cash documents

4. Transactions that a BUSINESS doesn’t record in any specialised journal are recorded in which of the following journals or day books?

   A. Cash payments journal
   B. Cash receipts journal
   C. Purchases return journal
   D. General journal

5. A brief explanation recorded below every entry in general journal is commonly known as__________?

   A. Narration
   B. Explanation
   C. Summary
   D. Other information

6. Credit purchase of plant and machinery is recorded in which of the following journals?

   A. General journal
   B. Cash journal
   C. Purchase journal
   D. Purchase return journal

7. Sales and purchase journal don’t record__________?

   A. Credit sales
   B. Credit purchases
   C. Credit sales and purchases
   D. Cash sales and purchases

8. The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is

   A. The Trial Balance will not agree
   B. The balance of creditors is understated
   C. The purchases are understated
   D. The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book

9. Net sales equals, sales minus:

   A. Return outwords
   B. Return inwards
   C. cost of goods sold
   D. carriage on sales

   Submitted by: Kamran Ahmad

10. Riaz holds an average inventory of 36,000(CP) with an inventory turnover of 5 times. If the firm makes a gross profit of 25% on sales, find the total sales of the company.

    A. 2,40,000
    B. 2,10,000
    C. 2,00,000
    D. 1,80,000