Get ready to strengthen your JKSSB FAA 2026 Accountancy preparation with these Top 20 Important MCQs on Journal & Journal Entries by Exam Waves. Carefully selected questions cover key concepts and important entries to help you revise smarter and perform better in the exam.

Q1. Which of the following statements correctly describe a Journal?

1. The word “Journal” has been derived from the French word “Jour,” meaning Day.
2. Journal is also called the book of original entry.
3. All transactions are recorded in chronological order in a Journal.
4. Each transaction affects two accounts.

A) 1 and 2 only

B) 1, 2 and 3 only

C) 2, 3 and 4 only

D) 1, 2, 3 and 4

Answer: D

Q2. Which of the following correctly represents the prescribed format of a Journal?

1. Date
2. Particulars
3. L.F.
4. Debit Amount
5. Credit Amount

A) 1, 2 and 3 only

B) 1, 2, 4 and 5 only

C) 2, 3, 4 and 5 only

D) 1, 2, 3, 4 and 5

Answer: D

Q3. Match List I with List II and select the correct answer:

List I	List II
A. Journal	1. Ledger Folio
B. L.F.	2. Book of original entry
C. Narration	3. Brief description below the account title
D. Journalising	4. Process of recording transactions in journal

A) A-2, B-1, C-3, D-4

B) A-1, B-2, C-4, D-3

C) A-2, B-3, C-1, D-4

D) A-4, B-1, C-3, D-2

Answer: A

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Q4. Assertion (A): An entry recorded in a Journal that contains one debit and one credit is called a Simple Entry.

Reason (R): In a Simple Entry, only two accounts are affected—one account is debited and another account is credited.

Choose the correct answer:

A) Both A and R are true, and R is the correct explanation of A

B) Both A and R are true, but R is not the correct explanation of A

C) A is true, but R is false

D) A is false, but R is true

Answer: A

Q5. Which of the following statements correctly describe a Compound Entry?

1. Two or more accounts are affected on the same day.
2. There may be more than one debit.
3. There may be more than one credit.
4. It is different from an entry containing only one debit and one credit.

A) 1 and 2 only

B) 1, 2 and 3 only

C) 2, 3 and 4 only

D) 1, 2, 3 and 4

Answer: D

Q6. A compound entry shows Salary A/c Dr. ₹1,000 and Conveyance A/c Dr. ₹500, with To Cash A/c on the credit side. What amount should be credited to Cash A/c to complete the entry?

A) ₹500

B) ₹1,000

C) ₹1,500

D) ₹2,000

Answer: C

Q7. Consider the following statements regarding the Goods Account:

1. Goods are items purchased by a businessman for resale.
2. Goods include Purchase A/c and Sales A/c.
3. Goods include Purchase Return and Sales Return.
4. Goods also include goods withdrawn, free samples, and goods lost, damaged, destroyed or stolen.

Which of the statements given above are correct?

A) 1 and 2 only

B) 1, 2 and 3 only

C) 2, 3 and 4 only

D) 1, 2, 3 and 4

Answer: D

Q8. Which of the following statements correctly describe the Purchase Account?

1. It is used for recording purchases of goods for trading or producing activity.
2. Purchases may be classified as Cash Purchases or Credit Purchases.
3. Purchase Account is used for every asset purchased by the business.
4. Cash purchase of goods results in Purchase A/c being debited and Cash A/c being credited.

A) 1 and 2 only

B) 1, 2 and 4 only

C) 2, 3 and 4 only

D) 1, 2, 3 and 4

Answer: B

Q9. Mushtaq purchases goods for ₹2,000 and makes payment immediately in cash. Which of the following journal entries correctly records the transaction?

A) Cash A/c Dr. ₹2,000
To Purchase A/c ₹2,000

B) Purchase A/c Dr. ₹2,000
To Cash A/c ₹2,000

C) Purchase A/c Dr. ₹2,000
To Creditor A/c ₹2,000

D) Asset A/c Dr. ₹2,000
To Purchase A/c ₹2,000

Answer: B

Q10. Asif sold goods on credit to a customer, but the amount subsequently became irrecoverable. Which of the following entries correctly records the Bad Debt?

A) Debtors Personal A/c Dr.
To Bad Debts A/c

B) Bad Debts A/c Dr.
To Debtors Personal A/c

C) Cash A/c Dr.
To Bad Debts A/c

D) Purchase A/c Dr.
To Debtors Personal A/c

Answer: B

Q11. Assertion (A): Bad Debts A/c is debited when an amount due from a credit customer becomes irrecoverable.

Reason (R): The customer’s personal account is credited while recording the bad debt.

Choose the correct answer:

A) Both A and R are true, and R is the correct explanation of A

B) Both A and R are true, but R is not the correct explanation of A

C) A is true, but R is false

D) A is false, but R is true

Answer: A

Q12. Seraj pays an expense in advance that relates to the next accounting year. Which of the following correctly records the transaction?

A) Expense A/c Dr.
To Prepaid Expenses A/c

B) Prepaid Expenses A/c Dr.
To Expense A/c

C) Cash A/c Dr.
To Prepaid Expenses A/c

D) Prepaid Expenses A/c Dr.
To Cash A/c

Answer: B

Q13. Consider the following transactions involving the purchase and sale of fixed assets:

1. Purchase of a fixed asset for cash — Asset A/c Dr. to Cash A/c
2. Sale of an asset for cash — Cash A/c Dr. to Asset A/c
3. Sale of an asset on credit — Purchaser A/c Dr. to Asset A/c
4. Purchase of an asset on credit — Asset A/c Dr. to Creditor A/c

Which of the above journal treatments are correct?

A) 1 and 2 only

B) 1, 2 and 3 only

C) 2, 3 and 4 only

D) 1, 2, 3 and 4

Answer: D

Q14. Match the transactions in List I with their corresponding journal entries in List II:

List I	List II
A. Fixed asset purchased for cash	1. Purchaser A/c Dr. → To Asset A/c
B. Fixed asset sold for cash	2. Asset A/c Dr. → To Creditor A/c
C. Fixed asset sold on credit	3. Asset A/c Dr. → To Cash A/c
D. Fixed asset purchased on credit	4. Cash A/c Dr. → To Asset A/c

A) A-3, B-4, C-1, D-2

B) A-4, B-3, C-2, D-1

C) A-3, B-1, C-4, D-2

D) A-2, B-4, C-1, D-3

Answer: A

Q15. Aamir withdraws goods from the business for his personal use. Which of the following correctly records this transaction?

A) Purchase A/c Dr.
To Drawings A/c

B) Drawings A/c Dr.
To Purchase A/c

C) Cash A/c Dr.
To Drawings A/c

D) Drawings A/c Dr.
To Cash A/c

Answer: B

Q16. Which of the following statements correctly describe goods distributed as free samples?

1. Such distribution is treated as an advertisement-related transaction.
2. Advertisement Expense A/c is debited.
3. Purchase A/c is credited.
4. The entry is Advertisement Expense A/c Dr. to Purchase A/c.

A) 1 and 2 only

B) 1, 2 and 3 only

C) 2, 3 and 4 only

D) 1, 2, 3 and 4

Answer: D

Q17. Shahid’s goods are lost by fire or theft. Which of the following journal entries correctly records the loss?

A) Purchase A/c Dr.
To Loss by Fire A/c / Loss by Theft A/c

B) Loss by Fire A/c / Loss by Theft A/c Dr.
To Purchase A/c

C) Cash A/c Dr.
To Loss by Fire A/c

D) Insurance Company A/c Dr.
To Purchase A/c

Answer: B

Q18. Goods belonging to Irfan’s business are lost by fire, and the goods are insured. Which of the following journal entries is given for the insured loss?

A) Loss by Fire A/c Dr.
To Insurance Company A/c

B) Purchase A/c Dr.
To Insurance Company A/c

C) Insurance Company A/c Dr.
To Loss by Fire / Theft A/c

D) Insurance Company A/c Dr.
To Purchase A/c

Answer: C

Q19. Match List I with List II and select the correct combination:

List I	List II
A. Bad Debts	1. Advertisement Expense A/c Dr. → To Purchase A/c
B. Prepaid Expense	2. Drawings A/c Dr. → To Purchase A/c
C. Drawings of Goods	3. Bad Debts A/c Dr. → To Debtors Personal A/c
D. Goods distributed as samples	4. Prepaid Expenses A/c Dr. → To Expense A/c

A) A-3, B-4, C-2, D-1

B) A-4, B-3, C-1, D-2

C) A-3, B-2, C-4, D-1

D) A-1, B-4, C-2, D-3

Answer: A

Q20. Consider the following journal treatments:

1. Cash purchase of goods — Purchase A/c Dr. to Cash A/c
2. Bad debt becoming irrecoverable — Bad Debts A/c Dr. to Debtors Personal A/c
3. Goods withdrawn for personal use — Drawings A/c Dr. to Purchase A/c
4. Goods distributed as samples — Advertisement Expense A/c Dr. to Purchase A/c
5. Fixed asset purchased on credit — Asset A/c Dr. to Creditor A/c
6. Fixed asset sold for cash — Cash A/c Dr. to Asset A/c

How many of the above journal treatments are correctly matched?

A) Only three

B) Only four

C) Only five

D) All six

Answer: D