A 'Journal Voucher' is prepared for: MCQ with Answer and Explanation

A 'Journal Voucher' is prepared for:
A. Credit sales
B. Cash received from debtors
C. Cash purchases
D. Payment of wages
Answer: Option A
Solution (By JKSSB Mock Tests)
Credit sales do not involve immediate cash; hence recorded by a journal voucher (non-cash transfer voucher).

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Practice More Accountancy and Book Keeping Questions

Question #1
'Revenue from Contracts with Customers' is covered under:
A. Ind AS 109
B. Ind AS 115
C. AS 7
D. AS 9

Correct Answer: Option B


Explanation:
Ind AS 115 provides a comprehensive framework for revenue recognition.

Question #2
The 'Provision for Bad Debts' is created by:
A. Debiting Sales Account
B. Debiting Debtors Account
C. Crediting Cash Account
D. Debiting Profit & Loss Account and crediting Provision for Bad Debts

Correct Answer: Option D


Explanation:
The adjusting entry: P&L A/c Dr. To Provision for Bad Debts.

Question #3
S1: In a cash flow statement under Ind AS 7, taxes on income are generally classified as cash flows from operating activities. S2: However, if it is practicable to identify the tax cash flow with an investing or financing activity, it must be classified accordingly. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S2 only
C. S1 only
D. Both S1 and S2

Correct Answer: Option D


Explanation:
Both statements are correct as per Ind AS 7. Taxes on income are generally operating, but if they can be specifically identified with a financing or investing transaction (like tax on sale of an asset), they should be classified with that activity.