Regular practice with AP Inter 1st Year Accounts Study Material Chapter 7 Journal Proper Questions and Answers helps students stay prepared for examinations.
AP Inter 1st Year Accountancy 7th Lesson Journal Proper Questions and Answers
I. Fill in the blanks
Question 1.
Journal proper is also known as ……..
Answer:
Journal residual (or) general journal
Question 2.
……. is the eighth subsidiary book.
Answer:
Journal Proper
Question 3.
Asset purchased on credit should be recorded in ……
Answer:
Journal Proper
Question 4.
The asset sold on credit should be recorded in the …….
Answer:
Journal Proper
Question 5.
In an opening entry, the difference between the debit side and the credit side will be transferred to …….. account.
Answer:
Capital
Question 6.
All the transactions that cannot be recorded in the other seven subsidiary books are recorded in the ……..
Answer:
Journal Proper
Question 7.
In the opening entry Total Assets – Total Liabilities = …….
Answer:
Capital
II. Very Short Answer Type QuestionsÂ
Question 1.
Explain the following in not more than 5 lines.
a) Opening Entries
b) Rectification Entries
c) Adjustment Entries
d) Closing Entries
Answer:
a) Opening Entries : Opening entries are passed at the commencement of the new year, to record the balances of assets and liabilities brought forward from the previous year.
The rule to be applied as
Assets a/c Dr
To Liabilities a/c
To Capital a/c
(Being the last year balance brought forward).
b) Rectification Entries : Sometimes errors may occur while recording transactions, posting them into the ledger or while balancing the ledger accounts. In such cases certain entries should be passed in order to rectify the errors. Such entries are called “Rectification entries”.
Example : Rama paid Rs. 100. This was credited to Somu’s A/c.
c) Adjustment Entries : At the time of preparation of final accounts of the business firm some adjustments are to be made. The journal entries relating to these adjustments are known as “Adjustment entries”.
Example : Outstanding expenses, prepaid expenses.
d) Closing Entries : At the end of every financial year the balances of all the Nominal accounts are transferred to the Trading and Profit & Loss accounts. These transferred entries are known as Closing entries. All expenses and losses are debited and incomes and gains are credited to Trading, Profit & Loss account.
III. Short Answer Type Questions
Question 1.
What is Journal Proper ?
Answer:
There are some transactions which cannot be recorded in any of the remaining seven subsidiary books, are entered in special book known as “Journal proper”.
Question 2.
Explain various kinds of transactions that are recorded in Journal Proper.
Answer:
The following are the transactions recorded in journal proper.
1) Opening entries : Opening entries are passed at the commencement of the new year, to record the balances of assets and liabilities brought forward from the previous year.
The rule to be applied as
Assets A/C Dr
To Liabilities a/c
To Capital a/c
(Being last year balance brought forward).
2) Purchase and sale of fixed assets : Business organisations either purchase or sell the assets for cash and sometimes on credit. If it is purchased on credit, then the entry should be recorded in the journal proper.
Example : Purchased machinery from Godrej Company 40,000.
3) Rectification entries : Sometimes errors may occur while recording transactions, posting them into the ledger or while balancing the ledger accounts. In such cases certain entries should be passed in order to rectify the errors. Such entries are called “Rectification entries”.
Example : Rama paid Rs. 1000. This was credited to Bheema’s A/c.
4) Adjustment entries : At the time of preparation of final accounts of the business firm some adjustments are to be made. The journal entries relating to these adjustments are known as “Adjustment entries”.
Example : Outstanding expenses, prepaid expenses, incomes receivable, income received in advance, depreciation, etc.
5) Closing entries : At the end of every financial year the balances of all the Nominal accounts are transferred to the Trading and Profit & Loss accounts. These transferred entries are known as Closing entries. All expenses and losses are debited and incomes and gains are credited to Trading, Profit & Loss account.
6) Transfer entries : Sometimes the trader transfers the amount from one account to another account. This type of journal entries are known as Transferred journal entries’. Example : Transfer of Profit to Reserve Fund.
7) Other entries : It is not possible to enter same transactions in journal and hence they are recorded in Journal Proper.
Example : Interest on drawings, interest on capital, goods lost due to fire & theft, goods sent on consignment, etc.
Problems
Question 1.
Pass an opening entry for the following balances on 1st Jan 2023
Solution:
Question 2.
Write the opening entry in the books of Lalit on 01.01.2024 from the following:
Solution:
In the books of Lalit
Question 3.
Pass the opening Journal entry for the following on 01.04.2023
Solution:
Question 4.
Write an opening entry on 01 Jan 2024 from the given balance sheet of Srinivas Balance sheet of Srinivas as on 31.12.2023
Solution:
Question 5.
Record an opening entry from the following as on 1.1.2024
Solution:
Journal Proper
Question 6.
Write an opening entry on 01.01.2022 in the books of Aditya from the following:
Solution:
Journal Proper
Question 7.
Rectify the following errors dated on 31.12.2023
a. Sold goods for Rs.4,000, recorded as 40,000
b. Paid cash to Sai Rs.2,000, wrongly debited to Mahi a/c.
c. Salaries paid to Satya Rs.7,500, debited to his personal a/c
d. Discount received Rs.300/-, wrongly credited to Commission received A/c.
e. Buildings purchased for Rs.85,000/- wrongly debited to purchases A/c.
Solution:
Question 8.
Pass adjustment journal entries for the following:
a. Provide 5% depreciation on furniture. Value of Furniture is Rs. 10,000/-
b. Closing stock Rs. 10,000/
c. Rent outstanding Rs.2,500/-
d. Prepaid Insurance Rs.700/-
Solution:
Journal Proper
Question 9.
Record the closing entries from the following Ledger balances of Bhargavi
Solution:
Journal Proper
Question 10.
Record the opening entry on 01.01.24 in the books of Akhila from the following
Solution:
In the Books of Akhila Journal Proper
