Amount : This column records the amount in numerical figure, corresponding to what has been entered in the amount column of the original book of entry. Test Your Understanding - III Choose the Correct Answer : . The ledger folio column of journal is used to: (a) Record the date on which amount posted to a ledger account. (b) Record the number of ledger account to which information is posted.
(c) Record the number of amounts posted to the ledger account. (d) Record the page number of the ledger account. . The journal entry to record the sale of services on credit should include: (a) Debit to debtors and credit to capital.
(b) Debit to cash and Credit to debtors. (c) Debit to fees income and Credit to debtors. (d) Debit to debtors and Credit to fees income. .
The journal entry to record purchase of equipment for Rs. , , cash and a balance of Rs. , , due in days include: (a) Debit equipment for Rs. , , and Credit cash , , .
(b) Debit equipment for Rs. , , and Credit cash Rs. , , and creditors Rs. , , .
(c) Debit equipment Rs. , , and Credit debtors Rs. , , . (d) Debit equipment Rs.
, , and Credit cash Rs. , , . . When a entry is made in journal: (a) Assets are listed first.
(b) Accounts to be debited listed first. (c) Accounts to be credited listed first. (d) Accounts may be listed in any order. .
If a transaction is properly analysed and recorded: (a) Only two accounts will be used to record the transaction. (b) One account will be used to record transaction. (c) One account balance will increase and another will decrease. (d) Total amount debited will equals total amount credited.
. The journal entry to record payment of monthly bill will include: (a) Debit monthly bill and Credit capital. (b) Debit capital and Credit cash. (c) Debit monthly bill and Credit cash.
(d) Debit monthly bill and Credit creditors. . Journal entry to record salaries will include: (a) Debit salaries Credit cash. (b) Debit capital Credit cash.
(c) Debit cash Credit salary. (d) Debit salary Credit creditors.