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CSEC POA practice questions

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Question 1Accounting Fundamentals and the Accounting Cycle

Which accounting concept requires that a business's financial statements be kept separate from the owner's personal affairs?

  1. The prudence concept
  2. The going concern concept
  3. The business entity concept Correct answer.
  4. The accrual concept

Explanation

The business entity concept treats the business as an accounting unit distinct from its owners, so personal transactions of the owner are excluded from the business records. Going concern concerns continuity of operations, accrual concerns timing of recognition, and prudence concerns caution in estimates.

Question 2Accounting Fundamentals and the Accounting Cycle

A trader buys equipment for $4,000 cash. Which double entry records this transaction?

  1. Debit equipment $4,000; credit capital $4,000
  2. Debit cash $4,000; credit equipment $4,000
  3. Debit purchases $4,000; credit cash $4,000
  4. Debit equipment $4,000; credit cash $4,000 Correct answer.

Explanation

Equipment is an asset that increases, and assets are debited when they increase. Cash is also an asset but it decreases, so cash is credited. The entry therefore debits equipment and credits cash for $4,000.

Question 3Accounting Fundamentals and the Accounting Cycle

In a trial balance, which of the following would appear as a credit balance?

  1. Rent paid
  2. Inventory
  3. Bank loan Correct answer.
  4. Motor vehicle

Explanation

A bank loan is a liability, and liabilities carry credit balances because they increase on the credit side. Assets such as motor vehicles and inventory, and expenses such as rent paid, are debit balances.

Question 4Accounting Fundamentals and the Accounting Cycle

Which document is sent by a supplier to inform a customer that the customer's account has been reduced because goods were returned?

  1. Debit note
  2. Credit note Correct answer.
  3. Statement of account
  4. Invoice

Explanation

A credit note is issued by the seller to reduce the amount owed by the buyer, typically after returned goods or an overcharge. It records the reduction on the seller's sales returns and the buyer's returns outwards.

Question 5Accounting Fundamentals and the Accounting Cycle

Which book of original entry records the purchase of goods on credit?

  1. Sales journal
  2. Cash book
  3. General journal
  4. Purchases journal Correct answer.

Explanation

The purchases journal, also called the purchases day book, lists credit purchases of goods for resale before they are posted to the ledger. The sales journal deals with credit sales, while the cash book handles cash items.

Question 6Accounting Fundamentals and the Accounting Cycle

An error of principle occurs when a transaction is recorded in the wrong class of account. Which of the following is an example?

  1. The same purchase entered twice in the purchases journal
  2. A payment of $50 to a supplier omitted from the books
  3. A sale of $90 entered in the sales journal as $900
  4. Repairs to a building debited to the buildings account Correct answer.

Explanation

Repairs are revenue expenditure and belong in an expense account, but debiting them to the buildings account treats them as capital expenditure. That is a wrong class of account, which defines an error of principle.

Question 7Accounting Fundamentals and the Accounting Cycle

A firm's trial balance shows total debits of $18,600 and total credits of $18,240. Which explanation is consistent with this difference?

  1. A debit entry of $360 was posted without its matching credit entry Correct answer.
  2. A compensating error affecting both sides equally
  3. A transposition error in a single ledger account
  4. The trial balance is correct and the difference is net profit

Explanation

A one-sided posting makes the two totals differ by the amount of the missing entry, so a missing credit of $360 explains the $360 gap. Net profit does not belong in the trial balance, and transposition or compensating errors keep totals equal.

Question 8Accounting Fundamentals and the Accounting Cycle

A machine costing $12,000 with accumulated depreciation of $7,500 is sold for $3,800. What is the result on disposal?

  1. Profit on disposal of $4,500
  2. Loss on disposal of $4,500
  3. Loss on disposal of $700 Correct answer.
  4. Profit on disposal of $700

Explanation

Carrying amount is cost $12,000 less accumulated depreciation $7,500, which equals $4,500. Sale proceeds of $3,800 are below the carrying amount, so the loss is $4,500 minus $3,800, which is $700.

Question 9Accounting Fundamentals and the Accounting Cycle

Under the straight-line method, a vehicle costing $20,000 with estimated residual value of $2,000 and a useful life of six years has annual depreciation of:

  1. $3,333
  2. $3,000 Correct answer.
  3. $3,600
  4. $2,000

Explanation

Straight-line depreciation spreads the depreciable amount, cost less residual value, evenly over the useful life. Depreciable amount is $20,000 minus $2,000 equals $18,000, divided by six years gives $3,000 per year.

Question 10Accounting Fundamentals and the Accounting Cycle

Which statement best describes the purpose of the bank reconciliation statement?

  1. To replace the cash book as the main record of bank transactions
  2. To calculate the gross profit earned by the business
  3. To explain why the bank statement balance differs from the cash book bank balance Correct answer.
  4. To record cash sales made during the month

Explanation

A bank reconciliation explains differences between the bank statement and the cash book, arising from items such as unpresented cheques, uncredited deposits, and bank charges. It does not replace the cash book or measure profit.

Question 11Accounting Fundamentals and the Accounting Cycle

A trader's cash book shows a debit balance of $1,400. The bank statement shows a credit balance of $1,900. Cheques totalling $650 have been issued but not yet presented, and bank charges of $150 appear on the statement but not in the cash book. What is the adjusted cash book balance?

  1. $1,400
  2. $1,250 Correct answer.
  3. $1,550
  4. $2,050

Explanation

Only items that the business has not yet recorded adjust the cash book. Bank charges of $150 reduce the debit balance, giving $1,400 minus $150, which equals $1,250. Unpresented cheques affect the bank statement side of the reconciliation, not the cash book.

Question 12Accounting Fundamentals and the Accounting Cycle

Which item would be entered in the general journal rather than a specialised day book?

  1. A credit sale of goods to a customer
  2. Correction of an error where a motor vehicle was debited as repairs Correct answer.
  3. A credit purchase of goods for resale
  4. A cash purchase of stationery

Explanation

The general journal records transactions that do not belong in the sales, purchases, returns, or cash books, including corrections of errors and adjustments. A correction between a non-current asset account and an expense account therefore goes in the general journal.

Question 13Accounting Fundamentals and the Accounting Cycle

What is the effect on the accounting equation when the owner pays a business liability using personal funds?

  1. Assets increase and liabilities increase
  2. Liabilities decrease and assets decrease
  3. Liabilities decrease and capital increases Correct answer.
  4. Assets decrease and capital decreases

Explanation

The liability is settled, so liabilities fall. Because the owner contributed resources from outside the business, capital rises by the same amount, and total assets are unchanged.

Question 14Accounting Fundamentals and the Accounting Cycle

Which of the following is capital expenditure?

  1. Installing a new security system in the factory Correct answer.
  2. Servicing the delivery van
  3. Replacing a broken window in the office
  4. Repainting the warehouse

Explanation

Capital expenditure buys or improves a non-current asset and provides benefit over several periods. Installing a new security system adds a lasting asset to the factory, so it is capitalised.

Question 15Accounting Fundamentals and the Accounting Cycle

A business has opening inventory of $8,000, purchases of $52,000, closing inventory of $6,000, and sales of $90,000. What is the cost of goods sold?

  1. $46,000
  2. $52,000
  3. $60,000
  4. $54,000 Correct answer.

Explanation

Cost of goods sold is opening inventory plus purchases minus closing inventory. That gives $8,000 plus $52,000 minus $6,000, which equals $54,000. Sales are used to find gross profit, not cost of goods sold.

Question 16Accounting Fundamentals and the Accounting Cycle

Which of the following would be classified as a current liability in the statement of financial position?

  1. Trade payables due within three months Correct answer.
  2. Motor vehicles
  3. Retained earnings
  4. A ten-year bank loan

Explanation

Current liabilities are obligations expected to be settled within the normal operating cycle or within twelve months. Trade payables due in three months meet that definition, whereas a ten-year loan is non-current.

Question 17Accounting Fundamentals and the Accounting Cycle

A business receives a bank loan of $10,000. How does this transaction affect the accounting equation?

  1. Assets increase by $10,000 and capital increases by $10,000
  2. Assets increase by $10,000 and liabilities increase by $10,000 Correct answer.
  3. Liabilities increase by $10,000 and capital decreases by $10,000
  4. Assets increase by $10,000 and liabilities decrease by $10,000

Explanation

The bank balance, an asset, rises by $10,000, and the obligation to repay the loan, a liability, rises by the same amount. Capital is unaffected because the owner has not contributed anything.

Question 18Accounting Fundamentals and the Accounting Cycle

Which of the following is an error of commission?

  1. A purchase of a non-current asset is debited to purchases
  2. A payment for rent is recorded in the rent account only
  3. A credit sale is completely omitted from the books
  4. A sale to J. Brown is entered in the account of J. Browne Correct answer.

Explanation

An error of commission occurs when an entry is made on the correct side of an account of the right class but to the wrong person or account. Posting J. Brown's sale to J. Browne is exactly that.

Question 19Accounting Fundamentals and the Accounting Cycle

A suspense account is opened because the trial balance totals differ. Which error would require an entry in the suspense account?

  1. Stock taken by the owner for personal use omitted from the records
  2. A sale recorded as $540 instead of $450
  3. A purchase entered in the wrong supplier's account
  4. A debit entry of $250 posted without the matching credit entry Correct answer.

Explanation

A suspense account is used when the two trial balance column totals do not agree, which happens when an entry is made on one side only. The missing credit of $250 is a one-sided error, so the suspense account is used.

Question 20Accounting Fundamentals and the Accounting Cycle

Which of the following best describes the matching concept?

  1. Revenue is recorded only when cash is received
  2. Assets are recorded at their original cost
  3. Transactions are recorded at the date the invoice is filed
  4. Expenses are recorded in the same period as the income they helped to generate Correct answer.

Explanation

The matching concept aligns expenses with the revenue they helped to earn in the same accounting period, so profit is measured fairly. It works together with accrual and adjustment entries at period end.

Question 21Accounting Fundamentals and the Accounting Cycle

A business has net profit of $24,000, drawings of $9,000, and opening capital of $40,000. What is closing capital?

  1. $73,000
  2. $64,000
  3. $55,000 Correct answer.
  4. $49,000

Explanation

Closing capital equals opening capital plus net profit minus drawings. That is $40,000 plus $24,000 minus $9,000, which equals $55,000.

Question 22Accounting Fundamentals and the Accounting Cycle

Which statement about a credit balance in a supplier's account in the payables ledger is correct?

  1. It is a nominal account used to calculate gross profit
  2. It shows the total purchases made from all suppliers
  3. It represents an amount owed by the business to the supplier Correct answer.
  4. It represents an amount owed to the business by the supplier

Explanation

The payables ledger holds personal accounts for credit suppliers. A credit balance means the supplier is owed money, since purchases increase the credit balance and payments reduce it.

Question 23Accounting Fundamentals and the Accounting Cycle

A trader's sales for the year are $150,000, of which $35,000 are cash sales. Receivables at the start were $18,000 and at the end $22,000. What amount was received from credit customers during the year?

  1. $119,000
  2. $145,000
  3. $111,000 Correct answer.
  4. $107,000

Explanation

Credit sales are $150,000 minus $35,000, which equals $115,000. Cash received equals opening receivables plus credit sales minus closing receivables: $18,000 plus $115,000 minus $22,000, giving $111,000.

Question 24Accounting Fundamentals and the Accounting Cycle

Which of the following is recorded on the debit side of the purchases ledger control account?

  1. Payments made to suppliers Correct answer.
  2. Credit purchases for the period
  3. Balances owed to suppliers at the start of the period
  4. Discounts received from suppliers

Explanation

The purchases ledger control account is the mirror of the payables ledger: payments to suppliers reduce what is owed and therefore appear on the debit side. Credit purchases, discounts received, and opening credit balances increase amounts owed and appear on the credit side.

Question 25Accounting Fundamentals and the Accounting Cycle

Which of the following is an example of an intangible non-current asset?

  1. Fixtures and fittings
  2. Bank overdraft
  3. Delivery van
  4. Goodwill Correct answer.

Explanation

An intangible non-current asset has no physical substance but provides long-term benefit, and goodwill arising on the purchase of a business is the classic example. Tangible assets such as vans and fixtures have physical form.

Question 26Accounting Fundamentals and the Accounting Cycle

A sole trader starts business by transferring a personal motor vehicle valued at $9,000 into the business. Which double entry records this in the business books?

  1. Debit cash $9,000; credit capital $9,000
  2. Debit motor vehicle $9,000; credit capital $9,000 Correct answer.
  3. Debit motor vehicle $9,000; credit drawings $9,000
  4. Debit capital $9,000; credit motor vehicle $9,000

Explanation

Goods or assets introduced by the owner increase business assets and increase the owner's claim, so the asset account is debited and the capital account is credited. The vehicle is a non-current asset, so motor vehicle is the account debited rather than cash.

Question 27Accounting Fundamentals and the Accounting Cycle

Which source document supports the entry made in the sales returns day book?

  1. Credit note issued to a customer Correct answer.
  2. Sales invoice issued to a customer
  3. Goods received note completed by the warehouse
  4. Purchase invoice received from a supplier

Explanation

A sales return occurs when a customer sends goods back or is granted an allowance, and the seller issues a credit note as evidence of the reduction in the amount owed. The sales returns day book is therefore written up from copies of credit notes issued.

Question 28Accounting Fundamentals and the Accounting Cycle

A business pays $600 by cheque for a one-year insurance premium covering the following financial year. Which treatment is correct under the accrual basis?

  1. Record $600 as drawings because the benefit falls in a later period
  2. Record $600 as insurance expense immediately in the current year
  3. Record $600 as an accrued expense, a liability, at the year end
  4. Record $600 as a prepayment, an asset, and charge it to profit or loss next year Correct answer.

Explanation

Under the accrual basis, expenditure is matched to the period that receives the benefit, so a premium paid in advance is carried forward as a prepayment within current assets. It is charged as an expense in the following year when the cover is actually used.

Question 29Accounting Fundamentals and the Accounting Cycle

A trader keeps a three-column cash book. Which entry is made in the cash column rather than the bank column?

  1. A standing order paid by the bank on the trader's behalf
  2. Bank interest charged on an overdrawn account
  3. Cash received from a customer in notes and coins Correct answer.
  4. A cheque received from a customer and banked the same day

Explanation

The cash column records money actually held as notes and coin, so notes and coins received from a customer are entered there. The bank column records movements through the bank account, including cheques and items initiated by the bank.

Question 30Accounting Fundamentals and the Accounting Cycle

Which of the following is the correct order of steps in the accounting cycle for a business using a manual system?

  1. Extract a trial balance, record transactions in books of original entry, post to the ledger, prepare financial statements
  2. Prepare financial statements, post to the ledger, extract a trial balance, record transactions in books of original entry
  3. Post to the ledger, record transactions in books of original entry, prepare financial statements, extract a trial balance
  4. Record transactions in books of original entry, post to the ledger, extract a trial balance, prepare financial statements Correct answer.

Explanation

Transactions are first captured in books of original entry from source documents, then double entries are posted to the ledger accounts. The trial balance is extracted from the ledger to check arithmetic accuracy, and the financial statements are prepared from the adjusted ledger balances.

Question 31Accounting Fundamentals and the Accounting Cycle

An amount of $250 paid for repairs to office equipment was debited to the office equipment account. Which type of error is this?

  1. Error of complete reversal
  2. Compensating error
  3. Error of principle Correct answer.
  4. Error of original entry

Explanation

An error of principle arises when a transaction is entered in the wrong class of account, here capitalising a revenue payment as a non-current asset. The amounts and double entry are otherwise balanced, so the trial balance still agrees.

Question 32Accounting Fundamentals and the Accounting Cycle

A trader's bank statement shows a debit balance of $2,300, while the cash book shows a credit balance of $2,300. What does this indicate?

  1. The trader has made an arithmetic error in the cash book
  2. The bank has credited the account when it should have debited it
  3. The trader holds $2,300 of cash in hand at the year end
  4. The two records are consistent: the trader is overdrawn at the bank Correct answer.

Explanation

Banks record the customer's balance from the bank's own viewpoint, so a customer overdraft appears as a debit balance in the bank's books. A credit balance in the trader's cash book also represents an overdraft, so the two figures agree in substance.

Question 33Accounting Fundamentals and the Accounting Cycle

Which of the following would be entered in the general journal rather than a specialised day book?

  1. Cash withdrawn from the bank for use in the petty cash float
  2. A credit sale of goods to a regular customer
  3. A credit purchase of goods from a supplier
  4. Correction of an error where wages were debited instead of rent Correct answer.

Explanation

The general journal records transactions that do not fit the specialised day books, including corrections of errors and adjustments between ledger accounts. Correcting a misposting between two expense accounts is exactly this kind of entry.

Question 34Accounting Fundamentals and the Accounting Cycle

A business depreciates a delivery van using the reducing balance method at 20% per year. The van cost $15,000 and had been held for one full year at the start of the current year. What is the depreciation charge for the current year?

  1. $2,400 Correct answer.
  2. $2,700
  3. $1,500
  4. $3,000

Explanation

Under the reducing balance method the rate is applied to the carrying amount, not the original cost. After one year the carrying amount is $15,000 less 20% ($3,000), which is $12,000, so the current year charge is 20% of $12,000, or $2,400.

Question 35Accounting Fundamentals and the Accounting Cycle

Which of the following best describes the purpose of the purchases ledger control account?

  1. To summarise the total owed to credit suppliers and check the accuracy of the payables ledger Correct answer.
  2. To record the total of credit sales made to customers
  3. To record each individual supplier's invoices and payments in date order
  4. To calculate the cost of goods sold during the period

Explanation

The purchases ledger control account is a summary account kept in the general ledger that aggregates all entries affecting credit suppliers. Its balance should equal the total of the individual supplier balances in the payables ledger, providing an arithmetical check.

Question 36Accounting Fundamentals and the Accounting Cycle

A business has total assets of $85,000 and total liabilities of $32,000. The owner then withdraws $6,000 for personal use. What is the capital after the withdrawal?

  1. $41,000
  2. $59,000
  3. $53,000
  4. $47,000 Correct answer.

Explanation

Capital equals assets minus liabilities, which is $85,000 less $32,000, or $53,000, before the withdrawal. Drawings reduce capital, so the balance after the withdrawal is $53,000 less $6,000, or $47,000.

Question 37Accounting Fundamentals and the Accounting Cycle

A firm's trial balance has total debits of $46,800 and total credits of $46,300. The difference is carried to a suspense account. Which error could have caused this difference?

  1. A payment of $500 for electricity was entered only in the electricity account Correct answer.
  2. A purchase of $700 was debited to purchases and credited to payables
  3. A cash sale of $400 was recorded as a credit sale of $400
  4. A credit sale of $900 was completely omitted from the books

Explanation

A one-sided entry leaves the ledger unbalanced, so the trial balance totals will differ by the amount of the missing side. Here only the debit in the electricity account was made, so debits exceed credits by $500, matching the $500 difference.

Question 38Accounting Fundamentals and the Accounting Cycle

A business receives an invoice for $1,200 from a supplier for goods bought on credit. Which statement describes the effect on the accounting equation?

  1. Inventory increases by $1,200 and liabilities increase by $1,200, so capital is unchanged Correct answer.
  2. Liabilities increase by $1,200 and capital decreases by $1,200, so assets are unchanged
  3. Assets increase by $1,200 and capital increases by $1,200, so liabilities are unchanged
  4. Assets decrease by $1,200 and liabilities decrease by $1,200, so capital is unchanged

Explanation

Buying goods on credit increases inventory, an asset, and at the same time creates a payable, a liability. Both sides of the equation rise by the same amount, so the owner's capital is not affected by the purchase itself.

Question 39Accounting Fundamentals and the Accounting Cycle

Which of the following items would be shown as a current asset in a statement of financial position?

  1. Inventory held for resale Correct answer.
  2. Accumulated depreciation on machinery
  3. The owner's drawings for the year
  4. A long-term bank loan received by the business

Explanation

Current assets are resources expected to be realised or consumed within the normal operating cycle, and inventory awaiting sale meets that definition. It will be converted into cash through normal trading in the near term.

Question 40Accounting Fundamentals and the Accounting Cycle

A trader's gross profit for the year is $48,000. Expenses total $31,500 and the trader took drawings of $10,000. What is the net profit for the year?

  1. $31,500
  2. $48,000
  3. $16,500 Correct answer.
  4. $6,500

Explanation

Net profit is gross profit less expenses, so $48,000 less $31,500 gives $16,500. Drawings are an appropriation of profit and do not appear in the statement of profit or loss.

Question 41Books of Original Entry and Ledger Accounting

A business receives a cheque from a customer in full settlement of an invoice. In which book of original entry should this transaction first be recorded?

  1. Sales journal
  2. Purchases journal
  3. Cash book Correct answer.
  4. General journal

Explanation

A cheque received from a customer is a cash receipt, and all cash and bank receipts are first entered in the cash book (on the debit/receipts side). The sales journal records credit sales only, so a cheque received on account does not belong there.

Question 42Books of Original Entry and Ledger Accounting

Which document is the source document used to make an entry in the purchases journal?

  1. A copy of the sales invoice issued by the seller
  2. An invoice received from a supplier Correct answer.
  3. A credit note received from a supplier
  4. A petty cash voucher

Explanation

The purchases journal records credit purchases of goods, and the source document is the supplier's invoice received by the buyer. The buyer records the purchase from the invoice received, not from any document it issues itself.

Question 43Books of Original Entry and Ledger Accounting

What is the correct double entry when goods are sold on credit to a customer?

  1. Debit cash, credit sales
  2. Debit sales account, credit trade receivables
  3. Debit trade receivables, credit sales Correct answer.
  4. Debit sales, credit inventory

Explanation

A credit sale increases the amount owed by the customer, so trade receivables is debited, and it increases income, so the sales account is credited. Only sales on credit affect trade receivables; cash sales would instead debit cash.

Question 44Books of Original Entry and Ledger Accounting

Which book of original entry records the return of goods previously sold on credit to a customer?

  1. Returns outwards journal
  2. General journal
  3. Returns inwards journal Correct answer.
  4. Sales journal

Explanation

When a customer returns goods that were sold on credit, the seller records this in the returns inwards journal, supported by a credit note issued. Returns outwards, by contrast, records goods the business itself sends back to its suppliers.

Question 45Books of Original Entry and Ledger Accounting

In the cash book, the bank column shows a debit balance of $850. What does this balance represent?

  1. Money owed by the business to its bank
  2. An overdraft at the bank
  3. A favourable bank balance held at the bank Correct answer.
  4. Cash held in the business's safe

Explanation

In the cash book the bank column is written from the business's point of view, so a debit balance means money is held at the bank, a favourable balance. A credit balance in the bank column would indicate an overdraft, that is, money owed to the bank.

Question 46Books of Original Entry and Ledger Accounting

A trader uses an imprest petty cash system with a float of $200. Vouchers for $65 have been paid. How much cash is required to restore the imprest?

  1. $135
  2. $265
  3. $200
  4. $65 Correct answer.

Explanation

Under the imprest system the float is restored by reimbursing exactly the amount spent, as shown by the paid vouchers. Since $65 has been spent, $65 is drawn to bring the float back to $200.

Question 47Books of Original Entry and Ledger Accounting

Which of the following is a book of original entry?

  1. Trial balance
  2. General journal Correct answer.
  3. Sales ledger
  4. Purchases ledger

Explanation

Books of original entry are the journals and day books where transactions are first recorded; the general journal is one of these. Ledgers are books of final entry where the double entry is posted, and the trial balance is a list extracted from the ledger.

Question 48Books of Original Entry and Ledger Accounting

What is the purpose of contra entry in a two-column cash book?

  1. To record the opening balance brought down
  2. To correct an error in the sales journal
  3. To record a discount allowed to a customer
  4. To record a transfer between the cash and bank columns Correct answer.

Explanation

A contra entry arises when cash is transferred between the cash column and the bank column, for example banking cash or withdrawing cash for office use. It is entered on both sides of the cash book and marked with a 'C' in the details column.

Question 49Books of Original Entry and Ledger Accounting

A business pays a supplier $500 by cheque in full settlement of a debt of $520. What entries are made in the cash book and discount columns?

  1. Credit bank $500 and debit discount allowed $20
  2. Credit bank $500 and credit discount received $20 Correct answer.
  3. Debit bank $500 and debit discount allowed $20
  4. Debit bank $500 and credit discount received $20

Explanation

Payment by cheque reduces the bank balance, so the bank column is credited $500, and the $20 saved is discount received, which is credited in the discount column. Discount received is an income to the buyer and appears on the credit side of the cash book.

Question 50Books of Original Entry and Ledger Accounting

Which journal is used to record the correction of an error where a purchase of office equipment was debited to the purchases account?

  1. Purchases journal
  2. General journal Correct answer.
  3. Returns outwards journal
  4. Cash book

Explanation

Corrections of errors and other non-routine adjustments are recorded in the general journal with a narration explaining the correction. The specialised journals only record their own type of routine transaction.