Module 8

Question 1

record of all services rendered on account only if the business is a trading concern then, it is called sales journal

Answer 1

1. Service revenue journal

Question 2

record of purchases on account only.

Answer 2

2. Purchase journal

Question 3

record of all the cash receipts of the company,

Answer 3

3. Cash receipt journal

Question 4

record of all the cash disbursements of the company.

Answer 4

4. Cash disbursement journal

Question 5

record of all transactions which are applicable to be included in the books of accounts

Answer 5

5. General journal

Question 6

In case of general administration expenses and other accounts columns, they should be summarized at the end of every

Answer 6

month

Question 7

has two columns. They are the debit money column and the credit money column.

Answer 7

• Journal sheet

Question 8

The first column of the journal sheet is designed for the

Answer 8

month the transaction occurs

Question 9

Enumerate the design of the journal sheet per column

Answer 9

1. Month
2. Date
3. Particulars
4. PR
5. Money column

Question 10

signifies that we are already finished encoding our entry and another entry can be recorded.

Answer 10

Bar sign

Question 11

When recording, we should not leave

Answer 11

Open row

Question 12

indicate a plan of inserting an entry later, which may be an indication of cheating.

Answer 12

Open row

Question 13

It is only used when the bookkeeper starts posting the transactions to the book of final entry, which is the ledger.

Answer 13

posting reference

Question 14

the last column of each money column, which contains

Answer 14

centavo

Question 15

T or F

Take note that there is no need to write the period and comma when writing figures in the money columns

Answer 15

T

Question 16

signify the completeness of our recording for a specific month.

Answer 16

double rule

Question 17

The totals that we have made in our journal will then be transferred to the book of final entry or the general ledger

Answer 17

Posting

Question 18

To prove the correctness of the transferring of information from the general journal to the general ledger, accountants can produce the first preliminary report in accounting called the

Answer 18

Trial balance

Question 19

TWO TYPES OF TRIAL BALANCE

Answer 19

. Trial balance of totals
. Trial balance of balances

Question 20

we have to get the total of the debit side and the total of the credit side of each ledger account and write them in the trial balance format

Answer 20

. Trial balance of totals.

Question 21

We can identify the trial balance as a trial balance of totals if it contains

Answer 21

zero balance or both columns contain a figure

Question 22

, we have to get the total of the debit side and the total of the credit side of each accountant and get the difference of the two totals.

Answer 22

Trial balance of balances.

Question 23

• The following are examples of specialized books of accounts:

Answer 23

1. service revenue journal;
2. purchase journal;
3. cash receipt journal;
4. cash disbursement journal, and
5. general journal.

Question 24

T or F

The total of debit should always be equal to the total amount of credit in trial balance of balances

Answer 24

T

Question 25

T or F In issuing T accounts, we do not need to double rule and get the total if there is only one transaction in a specific particular

Answer 25

T

Question 26

T or F We have to bar sign the total to signify the completeness of our recording at a specific month

Answer 26

F_double rule

Question 27

T or F General journal records all transactions which are applicable to be included in the books of account

Answer 27

T

Question 28

T or F December 15 transaction: Rendered services on account for Php500,000 with 50% down payment and the balance on account. The service income should indicate Php500,000

Answer 28

T

Question 29

T or F If there are three transactions for the month of July, the word July should be written thrice on that specific page of the journal sheet

Answer 29

F_Once

Question 30

T or F Erasures in the journal sheet would indicate a plan of inserting an entry later, which may be an indication of cheating.

Answer 30

F_Open row

Question 31

T or F The trial balance of totals shows that accounts payable has 250,000 in the debit portion and 450,000 in the credit side. Thus, in the trial balance of balances, the accounts payable should be written in the debit side.

Answer 31

F_credit side

Question 32

T or F . There is no need to write the period and comma when writing figures in the money columns.

Answer 32

T

Question 33

T or F The total of debit should always be equal to the total of credit in the trial balance of totals

Answer 33

T

Question 34

T or F The open row signifies that we are already finished encoding our entry/specific transaction and another entry/specific transaction can be recorded

Answer 34

F_Bar Sign

Question 35

T or F In the journal sheet, the date is written as transaction occurs on that specific date.

Answer 35

T

Question 36

T or F December 30 transaction: Paid the salaries of employees for PhP57,000, minus the withholding tax of PhP4,000; SSS premium for PhP2,000; and Pagibig premium for PhP1,000. The cash should indicate Php40,000.

Answer 36

F_50000

Question 37

T or F The trial balance of totals shows that cash has 100,000 in the debit portion and 50,000 in the credit side. Thus, in the trial balance of balances, the cash should be written in the debit portion.

Answer 37

T

Question 38

T or F Particulars should always contain the entry and its explanation in the journal sheet

Answer 38

T