Note – Please take our quiz ‘Quiz 4 – Journal Entries – Beginner’ on this page before going through the below answers. Only the top 3% of our audience score 10/10 in all of them.
- Name – Quiz 4 – Journal Entries – Beginner
- Topic – Journal Entries
- Answers with Explanations
Q1. _____ A/C is debited in entry for cash withdrawn by owner.
Ans. Drawings A/C is debited in entry for cash withdrawn by owner. The owner’s capital is an internal liability for the business and liabilities have a natural credit balance. As drawings are decreasing the amount of owner’s capital in the entity’s balance sheet, it will be debited.
Q2. _____ A/C is credited in entry for selling furniture in cash.
Ans. Furniture A/C is credited in entry for selling furniture in cash. Furniture is an asset for the entity and assets have a natural debit balance. This means that if the asset decreases, then it will be credited.
Q3. _____ A/C is debited in entry for cash purchase of machine.
Ans. Machine A/C is debited in entry for cash purchase of machine. Assets have a natural debit balance. In this entry, one asset is being added to the balance sheet and another is being removed. The one added (machine) will be debited and the one which is decreasing will be credited as per the accounting rules.
Q4. _____ A/C is debited in entry for depreciation.
Ans. Depreciation A/C is debited in entry for depreciation. Depreciation is an expense for the entity and has a natural debit balance.
Q5. Accrued income A/C is _____ in entry for accrued income.
Ans. Accrued income A/C is debited in entry for accrued income. It is revenue that has been earned but is yet to be received. This a current asset for business as the commodity has already been delivered (income earned) but the payment is yet to be received.
Q6. _____ A/C is debited in credit sales entry.
Ans. Debtor A/C is debited in credit sales entry. Credit sales are purchases made by customers for which payment is delayed. Since the payment is yet to be received, it is a current asset for the business and so is debited.
Q7. _____ A/C is debited in entry for salary paid to staff via bank.
Ans. Salary A/C is debited in entry for salary paid to staff via bank. Salary paid is an administrative expense for the company and so is debited.
Q8. _____ A/C is credited in entry for payment to a debtor via cheque.
Ans. Bank A/C is credited in entry for payment to a debtor via cheque. Payment via cheque will decrease the bank balance and so bank A/C will be credited.
Q9. Capital A/C is credited when capital is _____.
Ans. Capital A/C is credited when capital is introduced. Capital is an internal liability for the business and so it will be credited on its increase.
Q10. Bank A/C is _____ when cash is deposited in bank.
Ans. Bank A/C is debited when cash is deposited in the bank. Depositing cash will decrease the cash balance and increase the bank balance. Thus, bank A/C will be debited and cash A/C will be credited.