CBSE Class 11 Accountancy HOTs Recording of Transactions I

Question. Voucher is prepared for
1. Cash received and paid
2. Cash/Credit sales
3. Cash/Credit purchase
4. All of the above
Answer : All of the above

Question. Cash withdrawn by the Proprietor should be credited to
1.Drawings account
2. Capital account
3. Profit and loss account
4. Cash account
Answer: Cash account

Question. How many sides does an account have?
1. Two
2. Three
3. One
4. None of These
Answer: Two

Match The Following

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)               Option (List II)
1- Paid rent                               A- Credit
2- Received Commission         B- Debit
Answer. 14- 1- B, 2- A

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)                  Option (List II)
1- Outstanding Interest               A- Liability
2- Rent from sub-let of house     B-Income
Answer. 15- 1- A, 2- B

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)              Option (List II)
1- Increase in revenue            A- Credit
2- Decrease in expense          B- Debit
Answer.-16- 1& 2- A

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)             Option (List II)
1- Drawings                          A- Credit
2- Additional Capital             B- Debit
Answer.- 17 – 1-B, 2-A

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)                                                            Option (List II)
1- Increase in Assets and Increase in Liabilities                A- Stock purchase on credit
2- Increase in assets and decrease in another assets      B- Purchase assets on credit
Answer.- 18- 1- B, 2- A

Question. Match items in List I with terms in List II using the codes given below the lists-
Description (List -I)                                                  Option (List II)
1- Decrease in assets , and decrease in capital      A-Expenses Paid
2- Decrease in assets and decrease in liability       B- Loan repayment
Answer. – 19- 1- B,2-A

SEQUENCE:-

Question. Arrange the following in sequence in accounting equation-
TrAnswer.actions
A Goods Purchase of Rs 20,000 in cash and On credit of Rs 30,000
B Commenced business with cash Rs 1,00,000 and Goods of Rs 20,000
C Assets Purchased for Rs 30,000
Answer.  (a) A, B, C (b) B, C, A (c) C, A, B (d) C,B,A

Question. Arrange the following in sequence in accounting equation-
TrAnswer.actions
A Ramesh whose declared bad now paid of Rs 12,000
B Goods sold of Rs 20,000 in cash of Rs 20,000 and on credit of Rs 20,000 to Ramesh
C Ramesh declared insolvent and only 40% amount is received from Ramesh.
Answer.- B-C-A

Question.. Arrange the following in sequence in accounting equation-
TrAnswer.actions
A Claim Received from Insurance company of Rs 24,000
B Goods Purchased of Rs 50,000 on credit from Creditors
C Goods Lost By fire of Rs 30,000 and insurance company accepted 80% claim.
Answer.- B-C-A

Question.Arrange the following in sequence in accounting equation-
TrAnswer.actions
A Payment made by cheque to Hari of Rs 20,000
B Purchased goods from Hari of Rs 20,000.
Answer.- B-A

Question. Arrange the following in sequence in accounting equation-
TrAnswer.actions
A Salary Due in the month of March, 2019 of Rs 20,000
B Salary Paid in the month of January 2019
Answer. –  B-A

Question. Define compound voucher.
Answer : Compound vouchers are those vouchers which record different single or multiple debit/credit transactions.

Question. Define a complex transaction.
Answer : Transactions with multiple debits and credits are called complex transactions.

Question. What does accounting equation signify?
Answer : Accounting equation implies that the assets of a company are regularly equivalent to the total of its liabilities and capital (owner’s equity).

Question. What is the two rule to follow when changing record in liabilities and capital change/Revenue(Losses)?
Answer : The two rules to follow when changing record in liabilities and capital change/Revenue(Losses) are.
• A rise in the liabilities is credited and the drop in liabilities is debited.
• A rise in the capital is credited and the drop in the capital is debited.

Question. Give two differences between journal and ledger.
Answer : The two differences between journal and ledger are.
• For a transaction, journal is the intial book of entry. And the ledger is a second book of entry.
• The recording process in the journal is known as journalising. The recording process in the ledger is known as posting.