Which of the following books is known as the book of original entry? MCQ with Answer and Explanation

Which of the following books is known as the book of original entry?
A. Balance Sheet
B. Trial Balance
C. Journal
D. Ledger
Answer: Option C
Solution (By JKSSB Mock Tests)
The Journal is the primary book where transactions are first recorded in chronological order.

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Practice More Accountancy and Book Keeping Questions

Question #1
In the context of PFMS, what is the primary purpose of the 'Online Payroll and Attendance System' (e-Payroll) module?
A. To process pensions for retired employees
B. To generate and process salary bills for government employees digitally
C. To manage the procurement of office supplies
D. To collect tax deductions from private sector employees

Correct Answer: Option B


Explanation:
The e-Payroll module in PFMS is designed to digitize the generation, processing, and payment of salary bills for government employees, ensuring transparency and reducing paperwork.

Question #2
The maximum number of partners allowed in a partnership firm (as per Companies Act, 2013) is:
A. 50
B. 20
C. 10
D. 100

Correct Answer: Option A


Explanation:
As per Section 464 of Companies Act 2013, maximum number of partners can be 50, unless otherwise prescribed. The earlier limit of 20 for non-banking and 10 for banking has been raised to 50 for all firms.

Question #3
If a partner advances a loan to the firm and the partnership deed is silent, the interest on the loan is payable at:
A. 12% p.a.
B. Bank rate
C. 6% p.a.
D. 5% p.a.

Correct Answer: Option C


Explanation:
The Indian Partnership Act stipulates that partners are entitled to 6% p.a. interest on any advances or loans given to the firm beyond their capital.