A Bookkeeping Journal 101 Quiz!

Posting is the correct answer because it refers to the process of transferring information from journals to ledgers. In accounting, journals are used to record daily transactions, and ledgers are used to summarize and categorize these transactions. Posting involves taking the information from the journals and entering it into the appropriate accounts in the ledgers. This step is crucial in maintaining accurate and organized financial records.

The main journal of a business is called the general journal. This journal is used to record all financial transactions of the business in a chronological order. It serves as a central repository for recording entries before they are posted to the general ledger. By using the general journal, businesses can maintain an organized and accurate record of their financial activities, which is crucial for financial reporting and analysis.

The correct answer is A debit. In accounting, a debit entry increases an asset account, such as the telephone, which means that the company has acquired or received something of value. Debit entries are typically used to record expenses or assets. Therefore, the telephone is being recorded as a debit entry in the journal entry.

Bookkeeping journals are not personal diaries or bank documents. They are books of original entry where all financial transactions are recorded in chronological order. These journals serve as a primary record of business transactions before they are transferred to the general ledger. They provide a detailed and organized account of all financial activities, making it easier to track and analyze the company's financial performance.

Bookkeeping journals are used to show which ledger accounts are debited and credited. A bookkeeping journal is a record that tracks all financial transactions and their corresponding debits and credits. It helps in maintaining accurate and organized financial records by documenting the specific accounts that are affected by each transaction. This information is crucial for preparing financial statements, analyzing business performance, and ensuring the accuracy of the overall accounting system.

Debits go on the left hand side. In accounting, debits and credits are used to record transactions. Debits represent increases in assets or expenses, and they are recorded on the left side of the accounting equation. On the other hand, credits represent decreases in assets or expenses, and they are recorded on the right side of the equation. Therefore, debits are always recorded on the left hand side.

The statement contradicts the fact that there is only one type of journal. This implies that there are multiple types of journals, suggesting that the answer is False.

The information from the bookkeeping journals comes from the accounting source documents. These documents include invoices, receipts, bank statements, and other records that provide evidence of financial transactions. The bookkeeping journals serve as a chronological record of these transactions, with each entry corresponding to a specific source document. The journals are then used to update the ledgers, which summarize and classify the information for further analysis and reporting. Your diary is not a relevant source for bookkeeping information.

Daybooks are known as bookkeeping journals because they are used to record daily financial transactions in a systematic and chronological order. These journals serve as the primary source of information for preparing financial statements and other accounting reports. Daybooks provide a detailed record of all the transactions, including the date, description, and amount, which helps in maintaining accurate and organized financial records. Bank statements, on the other hand, are documents provided by the bank that show the transactions and balances in a bank account, while source documents refer to the original documents that provide evidence of a transaction, such as invoices, receipts, or purchase orders.

The special journals mentioned in the answer are specifically designed to record transactions of a particular type. The sales journal is used to record sales transactions, the cash payments journal is used to record cash payments made by the company, the sales returns and allowances journal is used to record returns and allowances from customers, the purchases journal is used to record purchases made by the company, the cash receipts journal is used to record cash received by the company, and the purchases returns and allowances journal is used to record returns and allowances to suppliers. These journals help in organizing and categorizing transactions, making the accounting process more efficient.