Practicing Success
Practicing Success
CUET Preparation Today
Which of the following statement is true regarding journal? (A) The book in which the transaction is recorded for the first time is called journal. (B) The process of recording transactions in journal is called posting. (C) The source document is required to record the transaction in the journal. (D) Journal is also called the Principal book. (E) Journal is subdivided into a number of books like Journal Proper, Cash book, Other day books. Choose the correct answer from the options given below. |
(A), (B) & (D) only (A), (C) & (E) only (A), (B), (C) & (E) only (B), (C), (D) only |
(A), (C) & (E) only |
The correct answer is option 2- (A), (C) & (E) only. (A) The book in which the transaction is recorded for the first time is called journal- THIS IS TRUE. The book in which the transaction is recorded for the first time is called journal or book of original entry. (B) The process of recording transactions in journal is called posting- THIS IS FALSE. The process of recording transactions in journal is called journalising. Once the journalising process is completed, the journal entry provides a complete and useful description of the event’s effect on the organisation. The process of transferring journal entry to individual accounts is called posting. (C) The source document is required to record the transaction in the journal- THIS IS TRUE. The source document is required to record the transaction in the journal. This practice provides a complete record of each transaction in one place and links the debits and credits for each transaction. (D) Journal is also called the Principal book- THIS IS FALSE. The journal is to be called the Book of Original Entry and the ledger account as the Principal Book of entry. (E) Journal is subdivided into a number of books like Journal Proper, Cash book, Other day books- THIS IS TRUE. On account of the number and commonality of most transactions, the journal is subdivided into a number of books of original entry as follows:
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