General Journal – Q&A

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on August 12, 2021

Test your learning about ‘General journal’ chapter by answering 10 short questions given below. We suggest you try to answer each question yourself before clicking on the ‘see answer’ button.
If you find difficulty in answering these questions, read ‘General journal‘ chapter thoroughly from the explanation section of the website.

1. What is a journal?.

2. What is meant by a journal entry?

3. What is meant by narration of the journal entry?

4. What is a compound journal entry?

5. What is meant by the term journalizing?

6. How trade discount is recorted in the journal?

7. Why journal is called the book of original entry?

8. $950 cash is received from Mr. Z (an account receivable) in full settlement of his account of $1,000. How would you record this transaction in general journal?

9. $480 cash is paid to Mr. Y (an account payable) in full settlement of his account of $500. How would you journalize this transaction?

10. What is the purpose of posting reference column of journal?

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.

9 thoughts on “General Journal – Q&A”

  1. In a book distribution company, do they have Finished goods account? And if there is, when will it be debited and cost of sales be credited? I’m really having a hard time analyzing the transaction that resulted to the debiting Finished goods and crediting Cost of sales.
    Thank you so much for the help.

    Reply
    • We’re glad you were able to practice for your exam using our examples. Repetition is a successful technique, for sure. Good luck!

      Reply
  2. This is so helpful useful and realy realy great but Hum… You should concentrate on the Que cz some mistakes are there with the answers
    Thankyou so much
    -dilma-

    Reply
    • Thanks for pointing that out. We’ll get it fixed as soon as possible. And thank you for your feedback. We’re always trying to improve our site and will keep that in mind going forward.

      Reply

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