CBSE Class 11 Accountancy Recording of Transactions - II MCQs Set 02

Question: The periodic total of purchases return journal is posted to:
a) Purchase account
b) Profit and loss account
c) Purchase returns account
d) Furniture account
Answer: c

Question: Total of these transactions is posted in purchases account
a) Purchase of furniture
b) Cash and credit purchase
c) Purchases return
d) Purchase of stationery
Answer: b

Question: Credit balance of bank account in cash book shows:
a) Overdraft
b) Cash deposited in our bank
c) Cash withdrawn from bank
d) None of these
Answer: b

Question: Goods purchased on cash are recorded in the
a) Purchases (journal) book
b) Sales (journal) book
c) Cash book
d) Purchases return (journal) book
Answer: c

Question: Cash book does not record transactions of
a) Cash nature
b) Credit nature
c) Cash and credit nature
d) None of these
Answer: b

Question: The periodic total of sales return journal is posted to:
a) Sales account
b) Goods account
c) Purchase returns account
d) Sales return account
Answer: d

Question: Double column cash book records
a) All Transactions
b) Cash and Bank Transactions
c) Only cash transactions
d) Only bank transactions
Answer: b

Question: What are total number of subsidiary books available to record financial transactions?
a) 8
b) 7
c) 6
d) 12
Answer: a

Question: It is system of paying advance in the beginning and reimbursing the amount spent from time to time to the petty cashier.
a) Imprest System
b) Financial System
c) Analytical System
d) Ordinary System
Answer: a

Question: The Sales Book is a part of:
a) Journal
b) Trading A/c
c) Balance Sheet
d) Ledger
Answer: a

Question: Goods worth Rs.7,000 given away as charity would be credited to:
a) Sales A/c
b) Purchases A/c
c) Charity A/c
d) Trustee A/c
Answer: b

Question: Cash – book always shows:
a) Debit balance
b) Credit balance
c) Debit or Credit balance
d) None of these
Answer: a

Question: Liabilities and Assets amount to Rs. 50,000 and Rs. 7,800 respectively. The difference Amount shall represent-
a) Creditors
b) Debentures
c) Profit
d) Capital
Answer: d

Question: The Sales Book is a part of:
a) Journal
b) Trading A/c
c) Balance Sheet
d) Ledger
Answer: a

Question: Which account will be debited in case Life insurance premium is paid by proprietor from business cash?
a) Drawings A/c
b) Capital A/c
c) Insurance A/c
d) Cash A/c
Answer: a

Question: Which account will be debited in case wages are paid for installation of machinery?
a) Machinery A/c
b) Installation A/c
c) Wages A/c
d) Cash A/c
Answer: a

Question: The process of recording a business transaction in the journal is called
a) Costing
b) Balancing
c) Posting
d) Journalising
Answer: d

Question: Anil purchased 1,000 Add Gell Roller Pens @ Rs. 50 each less 20% Trade Discount and 3% Cash Discount if payment is made within 30 days. Anil paid Rs. 10,000 within 30 days and balance amount after 30 days period. Purchases Account will be debited and Discount Received Account will be credited respectively with
a) Rs. 40,000, Nil
b) Rs. 40,000, Rs. 300
c) Rs. 40,000, Rs. 1,200
d) Rs. 40,000, Rs. 900
Answer: a

Question: How many columns are there in a Ledger (in one side)
a) Six
b) Four
c) Five
d) Seven
Answer: b

Question: The basis of recording transactions is-
a) Vouchers
b) Profit
c) Order form
d) Quotation list
Answer: a