If an asset is purchased and a post-dated cheque is given, the transaction is immediately recorded in: MCQ with Answer and Explanation

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If an asset is purchased and a post-dated cheque is given, the transaction is immediately recorded in:

A. Sales Book

B. Purchase Book

C. Journal Proper

D. Cash Book

Answer: Option C

Solution (By JKSSB Mock Tests)

Until the post-dated cheque becomes currently payable, the transaction is treated as credit and recorded in the Journal Proper.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

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S1: Prudence concept requires recognizing anticipated losses but not anticipated profits. S2: Materiality concept allows ignoring trivial items. Which statement(s) is/are correct?

A. S2 only

B. Both S1 and S2

C. S1 only

D. Neither S1 nor S2

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Correct Answer: Option B

Explanation:
Prudence ensures conservatism by providing for all foreseeable losses but not anticipating profits. Materiality allows accountants to bypass strict accounting rules for insignificant items. Both are correct.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

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The 'Concept of Prudence' under Ind AS is:

A. Always applied

B. Not specifically identified as a separate concept; neutrality overrides prudence

C. An overriding principle

D. A fundamental accounting assumption

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Correct Answer: Option B

Explanation:
The Conceptual Framework under Ind AS/IFRS does not include prudence as a separate qualitative characteristic; it emphasises neutrality.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping