List-I List-II (a) Purchase book (i) For recording cash receipts and payments (b) Cash book (ii) For recording transactions for which no specific book is maintained (c) Sales book (iii) For recording all goods purchased on credit (d) Journal (iv) For recording all goods sold on credit (v) For recording all sales returned by the customers (vi) For recording all purchases returned to suppliers
Matching Account Books with Their Purposes
This solution details the matching of specific account books (List-I) with their corresponding functions (List-II), essential for understanding basic accounting principles.
Step-by-Step Matching of Account Books
The matching is based on the standard functions of subsidiary books in accounting:
- Purchase Book (a): This book is specifically used to record only the transactions of goods purchased on credit. Therefore, it matches with (iii) For recording all goods purchased on credit.
- Cash Book (b): This primary book records all transactions involving cash, including receipts (money coming in) and payments (money going out). It matches with (i) For recording cash receipts and payments.
- Sales Book (c): Similar to the Purchase Book, the Sales Book records only the transactions of goods sold on credit. It matches with (iv) For recording all goods sold on credit.
- Journal (d): The General Journal serves as the book of original entry for transactions that do not have a dedicated special journal (like Purchase, Sales, Cash books). It includes adjustments, opening entries, closing entries, and corrections. It matches with (ii) For recording transactions for which no specific book is maintained.
Final Account Book Matching
The correct pairings derived from the analysis are:
- (a) matches with (iii)
- (b) matches with (i)
- (c) matches with (iv)
- (d) matches with (ii)
| List-I (Account Book) | List-II (Purpose) |
|---|---|
| (a) Purchase book | (iii) For recording all goods purchased on credit |
| (b) Cash book | (i) For recording cash receipts and payments |
| (c) Sales book | (iv) For recording all goods sold on credit |
| (d) Journal | (ii) For recording transactions for which no specific book is maintained |
Important Questions from Basics of Accounting
Match the following accounting concepts with the meaning/implications.
Accounting
Concept
Meaning
Implication
(i)
Money
measurement
concept(a)
Capital of the proprietor is considered as a liability
(ii)
Business
entity concept(b)
Fixed assets are
valued on a cost basis(iii)
Going concern concept
(c)
Changes in purchasing power are ignored
Which of the following statements is INCORRECT?
Which of the following statements is correct?
Which of the following statements is correct?
______ is defined as a statement or a list of all ledger account balances taken from various ledger books on a particular date to check the arithmetical accuracy.
