Journal Proper (General Journal) MCQs Quiz | Class 9
This quiz is for Class 9 students studying Elements of Book-Keeping & Accountancy (Code 254), focusing on Unit 4: Journal. It covers the topic of the Journal Proper (General Journal), specifically transactions not recorded in other subsidiary books and their examples. Answer all questions, submit to see your score, and download the PDF answer sheet for review.
Understanding the Journal Proper (General Journal)
In accounting, while many routine transactions are recorded in specialized subsidiary books like the Cash Book, Purchases Book, or Sales Book, there are several transactions that don’t fit into any of these categories. For these miscellaneous and infrequent transactions, we use the Journal Proper, also known as the General Journal. It serves as a catch-all book of original entry, ensuring every business transaction is recorded.
Key Transactions Recorded in Journal Proper
The Journal Proper is essential for recording specific types of entries that are crucial for accurate financial reporting. Here are the main categories of transactions recorded in it:
- Opening Entries: At the beginning of a new financial year, the balances of assets and liabilities from the previous year’s Balance Sheet are brought forward. The entry to record this is passed in the Journal Proper.
- Closing Entries: At the end of the financial year, the balances of all nominal accounts (expenses, losses, incomes, gains) are transferred to the Trading and Profit & Loss Account. These transfer entries are called closing entries and are recorded here.
- Adjustment Entries: To ensure the accounts reflect a true and fair view, certain adjustments are made before preparing the final accounts. Examples include entries for outstanding expenses, prepaid expenses, accrued income, and depreciation on assets.
- Rectification Entries: These entries are passed to correct errors that may have been made in the books of accounts, such as wrong posting, errors of principle, or errors of commission.
- Transfer Entries: An entry to transfer an amount from one account to another is passed through the Journal Proper. For example, transferring the balance of the Drawings account to the Capital account.
- Miscellaneous Entries: This is a broad category for transactions that do not occur frequently. Key examples include:
- Credit purchase or sale of assets (e.g., machinery, furniture).
- Goods taken by the proprietor for personal use (Drawings).
- Goods distributed as free samples or given as charity.
- Loss of goods by fire or theft.
- Writing off bad debts.
Subsidiary Books vs. Journal Proper
Understanding which transaction goes where is fundamental. Here’s a simple comparison:
| Type of Transaction | Subsidiary Book Used |
|---|---|
| All cash and bank transactions | Cash Book |
| Credit purchases of goods | Purchases Book |
| Credit sales of goods | Sales Book |
| Credit purchase of an asset (e.g., furniture) | Journal Proper |
| Depreciation charged on machinery | Journal Proper |
| Correction of a wrong entry | Journal Proper |
Quick Revision Points
- The Journal Proper is a book of original entry.
- It records transactions that cannot be entered in any other subsidiary book.
- It is also called the General Journal.
- Entries in the Journal Proper must have a ‘Narration’ – a brief explanation of the transaction.
- Key entries include opening, closing, adjustment, and rectification entries.
- Remember the rule: Credit purchase of an asset goes to the Journal Proper, while credit purchase of goods goes to the Purchases Book.
Practice Questions
Test your understanding with these scenarios. Decide which book of original entry would be used for each:
- Sold old office computer to Mr. Sharma on credit.
- Paid office rent of Rs. 5,000 by cheque.
- Bought goods from M/s. Gupta & Sons on credit for Rs. 15,000.
- Proprietor took goods worth Rs. 1,000 for his son’s birthday party.
- An entry to provide for depreciation on the delivery van at the end of the year.
