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4. Paid salaries 3,000

5. Furniture purchased for cash 10,000

6. Borrowed from bank 50,000

7. Sold goods to Sarita 10,000

8. Cash paid to Ramesh on account 20,000

9. Rent paid 1,500

Test Your Understanding

Choose the correct answer:

1. The ledger folio column of journal is used to:
a. Record the date on which amount posted to a ledger account.
b. Record the number of ledger account to which information is posted.
c. Record the number of amounts posted to the ledger account.
d. Record the page number of the ledger account.
2. The journal entry to record the sale of services on credit should include:
a. Debit to debtors and credit to capital.
b. Debit to cash and Credit to debtors.
c. Debit to fees income and Credit to debtors.
d. Debit to debtors and Credit to fees income.
3. The journal entry to record purchase of equiptment for ₹ 2,00,000 cash
and a balance of ₹ 8,00,000 due in 30 days include:
a. Debit equipment for ₹ 2,00,000 and Credit cash 2,00,000
b. Debit equipment for ₹ 10,00,000 and Credit cash ₹ 2,00,000 and
creditors ₹ 8,00,000
c. Debit equipment ₹ 2,00,000 and Credit debtors ₹ 8,00,000.
d. Debit equipment ₹ 10,00,000 and Credit cash ₹ 10,00,000.
4. When an entry is made in journal:
a. Assets are listed first.
b. Accounts to be debited listed first.
c. Accounts to be credited listed first.
d. Accounts may be listed in any order.
5. If a transaction is properly analysed in recorded: