Question

21. Which of the following is not a special journal? A) Sales journal B) Purchases journal C) General journal D) Cash receipts journal 22. All of the column totals in the cash receipts journal are posted to general ledger accounts except the A) Accounts Receivable column total. B) Cash column total. C) Sales column total. D) Other Accounts column total. 23. The entries in a sales journal will show A) all sales of merchandise. B) the cash sales of the company. C) the credit sales of merchandise. D) all sales of the company. 24. If an owner withdraws cash for personal use, the transaction should be recorded in the A) sales journal. B) cash receipts journal. C) general journal. D) cash payments journal. 25. Richmond's Wholesale uses a sales journal. An entry in this journal represents a A) debit to Cash; credit to Sales Revenue. B) debit to Accounts Receivable; credit to Sales Revenue. C) debit-to Sales Discounts; credit to Cash. D) debit to Accounts Payable; credit to Sales Returns and Allowances. 26. Which of the following economic events would not be recorded in the cash receipts journal? A) Cash sales of merchandise B) Collections of accounts receivable C) Cash from sale of land D) Cash purchases of merchandise

Answer 1

The correct options are:

21 Option C

22 Option D

23 Option C

24. Option D

25. Option B

26. Option D

Notes

21 As the name suggests, the General journal is not a journal used for general purposes and is no in any way a special journal.

22. Other accounts are general accounts used to book receipts.

23. Only credit sales appear in the sales register. Cash sales will come in Cash receipts register

24. Since a payment is made to the Owner by the business, the transaction will be shown under Cash payments register.

25. Since sales register contains only credit sales, the transactions include a debit to AR and credit to sales

26. Cash purchase of merchandise would be recorded in cash payments register.

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