Question

13. In which journal is a sale on account recorded?

A. Cash Receipts

B. Cash Payments

C. Purchases

D. Sales

E. None of the above

14. In which journal is a purchase return recorded?

A. Cash Receipts

B. Cash Payments

C. Purchases

D. Sales

E. None of the above

15. In which journal is the cash sale of merchandise inventory recorded?

A. Cash Receipts

B. Cash Payments

C. Purchases

D. Sales

E. None of the above

16. In which journal is the payment of rent recorded?

A. Cash Receipts

B. Cash Payments

C. Purchases

D. Sales

E. None of the above

Answer 1

13. In which journal is a sale on account recorded?

Sale on Account means when goods are sold on credit, so here the sales account gets credited as usual, by the rule of journal entry  "credit what goes out" and in debit we put in the debtor / account receivable instead of cash.

Sales Journal is used for recording only Credit Sales of Goods Sold.

Hence, option D is correct.

Option A is incorrect because we are recording a credit sale and there are no cash receipt here.

Option B it is a sale transaction so there is no cash payment in question.

Option C is incorrect because we are recording a sales transaction and not purchase.

14. In which journal is a purchase return recorded?

Purchase Return is recorded in "Purchase Return Journal"  

Purchase Return Journal records all the transactions of purchases that were returned; whether purchased on cash or credit.

The entry will be done by debiting the accounts payable/ creditor to reduce the balance we owe them if the goods are purchased on credit or debit the cash account for cash received and credit the purchase return account.

Hence, None of the options are correct.

Therefore, option E

Option A - Cash Receipt is incorrect because here we are not recording cash receipts

Option C Purchase Journal is incorrect because it records the credit purchases.

Option D  Sales Journal is incorrect because sales journal is only used for recording the sales on credit.

Option B Purchase Journal is incorrect becuse it records the credit purchases.

15. In which journal is the cash sale of merchandise inventory recorded

Merchandise inventory means the inventory that is bought by the trader with no intention to process it any further and directly sale it to a third party.

It does not form a part of the regular inventory. Hence, it will be recorded in general journal.

Therefore Option E is correct.

Option D Sales Journal is incorrect because sales journal is only used for recording the sales on credit.

Option B is incorrect because here the cash is received not paid.

Option C is incorrect because here there is no purchase of goods involved.

16.

In which journal is the payment of rent recorded?

Option B Cash Payment Journal, as in this journal we record all the transactions that involves payment of cash

Option A - Cash Receipt is incorrect because here we are not recording cash receipts

Option C Purchase Journal is incorrect because it records the credit purchases.

Option D  Sales Journal is incorrect because sales journal is only used for recording the sales on credit.