ch-8

Question 1

Define journal

Answer 1

It is the primary book of account in which transactions are first recorded in a chronological order in the order they are entered into

Question 2

Define Book of original entry

Answer 2

It is the book in which a transaction is first recorded (JOURNAL)

Question 3

Define principal book

Answer 3

It is the book which has record of the transactions in a summarised manner (LEDGER)

Question 4

Define bad debts recovered

Answer 4

It is the amount which was earlier written off as bad debt and is later recovered

Question 5

Define simple journal entry

Answer 5

It is a journal entry in which 1 account is debited and another is credited

Question 6

Define compound journal entry

Answer 6

It is a journal entry in which 1 or more account is debited and the other is credited

Question 7

Define opening entry

Answer 7

It is the 1st entry passed in the journal book incorporating the closing balances of the previous year

Question 8

Define ledger

Answer 8

It is a book containing all types of account

Question 9

Define trial balance

Answer 9

It is a statement in which the balances in the accounts are written. The total amounts in the 2 columns should match. It is a proof of arithmetical accuracy of transactions recorded in the books of account