Ch.# 3 JOURNAL

Chapter # 3		JOURNAL
Q.1:	What is journal?
Ans:	A book of original entry to record different business transaction chronologically (according to date) is called journal.
Q.2:	What do you mean by “Entry”?
Ans:	To record the business transaction in the journal is called “Entry”.
Q.3:	Give any three characteristics of journal?
Ans:	i)       A transaction is recorded originally in the journal.ii)    A transaction is recorded on the same day when it take place. iii)  Narration is given for each entry.
Q.4:	Give any two advantages of journal?
Ans:	i)       It provides all necessary information about a transaction.ii)    It helps to locate and remove errors.
Q.5:	Define narration?
Ans:	A short explanation of each transaction which is written below each entry is called “narration”.
Q.6:	Define journalizing?
Ans:	The process of recording business transction in journal is called “Journalizing”.
Q.7:	What do you know about “Double entry system”.
Ans:	A system in which equal debit and credit entries are made for every transaction. In which every business transaction effects two or more accounts is called “double entry system”.
Q.8:	Define compound entry?
Ans:	The entry in which more than one accounts are debited or more than one accounts are credited is called “compound entry”.Wages                                                 300 Rent                                                    200                        To Cash                                              500             (Wages & Rent Paid)
Q.9:	It is true, that journal is called the “Day Book”?
Ans:	Yes, because every transaction is recorded on the same day when it takes place.
Q.10:	Pass the journal entry, salary paid for the month of march 2004 Rs. 5000 to Mr. Hakam.
Ans:	Salary A/c                               5000                        To Cash A/c                                       5000 (Salary paid to Mr. Hakam)
Q.11:	Pass the journal entry, rent paid for building Rs. 4000 to Mr. Atta.
Ans:	Rent A/c                                 4000                        To Cash A/c                           4000 (Rent paid for building to Atta)
Q.12:	Pass the journal entry, goods sold for cash Rs. 5000.
Ans:	Cash A/c                                 5000                        To Sales A/c                           5000 (Goods sold for cash)
Q.13:	Pass the journal entry, rent received Rs. 2000.
Ans:	Cash A/c                                             2000                                    To Rent A/c                            2000 (Rent received)
Q.14:	Pass the journal entry, machinery purchased for Rs. 15000.
Ans:	Machinery A/c                                               15000            To Cash A/c                                                   15000
Q.15:	Pass the journal entry, repair expenses paid for machine Rs. 15000 which increase the production capacity machinery.
Ans:	Machinery A/c                                   15000                                    To Cash A/c                           150000 (Repair charges paid for machinery)
Q.16:	Pass the journal entry, repair expenses paid for machinery Rs. 3000.
Ans:	Furniture A/c                                     2000            To Cash A/c                                       2000
Q.17:	Pass the journal entry, goods purchased on credit Rs. 8000.
Ans:	Purchases A/c                                    8000            To Creditor A/c                                 8000 (Goods purchased on credit)increase in Liability —————— Credit Decrease in Liability —————– Debit
Q.18:	Pass the journal entry, Mr. Nawaz started business with cash Rs. 50,00.
Ans:	Cash A/c                                 50,000                        To Capital A/c                                    50,000 (Nawaz started business with cash)
Q.19:	Pass the journal entry, goods given away as charity Rs. 500.
Ans:	Charity A/c                                         500                                    To Purchase A/c                                500 (Goods given away as charity)
Q.20:	Pass the journal entry, goods lost by fire Rs. 1000.
Ans:	Loss by fire A/c                                 1000                                    To Purchases A/c                              1000 (Goods lost by fire)
Q.21:	Give sketch / format of the General Journal.
Ans:	Date Particulars L.F. Amount Rs. Amount Rs.   Account be debited            To Account to be credited. (Narration)   xxx xxx