CBSE Class 11 Accountancy Recording of Transactions - II MCQs Set 03

Question: Which of the following is entered in cash book?
a) Only cash transactions
b) Only credit transactions
c) Both cash and credit transactions
d) None of the options
Answer: d

Question: The following account has a debit balance:
a) Creditor’s A/c
b) Capital A/c
c) Building A/c
d) Loan A/c
Answer: c

Question: As per American Belief, Accounts are of how many types?
a) Two
b) Three
c) Five
d) Four
Answer: c

Question: Anil, the Petty Cashier of Ebony, has an imprest of Rs.5,000 out of which he pays for petty expenses. He submits the details of payments every 15 days which is reimbursed to him. He submitted the details for 15 days that ended on 15th April, 2012 amounting to Rs. 4,900. He has with him unpaid expense vouchers amounting to Rs.2,200. How much amount should be paid to him?
a) Rs.4,900
b) Rs.5,000
c) Rs.2,200
d) Rs.7,100
Answer: a

Question: The Mathematical Expression defining the comparative relationship between Assets and Liabilities of any person, institution or Business concern is called:
a) Accounting
b) Accounting Equation
c) Book-keeping
d) None of the options
Answer: b

Question: Simple Petty Cash Book is like a:
a) Cash Book
b) Statement
c) Journal
d) None of the options
Answer: b

Question: Contra entries on the debt side of the Cash Book are posted to:
a) Debit of Bank Account in the Ledger
b) Debit of Cash Account in the Ledger
c) Credit of Cash Account in the Ledger
d) Not posted in the Ledger
Answer: d

Question: A compound Journal entry:
a) Has equal debits and credits
b) Generally extends to several pages
c) Does not require narration
d) All of the options
Answer: a

Question: Debit Note is the source of writing:
a) A debit entry in an Account
b) A sale to a person
c) Sales Return Book
d) Journal Proper
Answer: a

Question: Total of Purchase Return Column in the Purchases Return Book is posted to:
a) Purchases Return A/c — Debit
b) Purchases Return A/c — Credit
c) Purchases A/c — Debit
d) Purchases A/c — Credit
Answer: b

Question: The Sales Return Book records:
a) The return of goods purchased
b) The return of goods sold
c) The return of anything sold
d) None of the options
Answer: b

Question: Cash book is a type of ……………… but can be treated as a ……….. of account.
a) Subsidiary Book, Principal Book
b) Principal Book, Subsidiary Book
c) Subsidiary Book, Subsidiary Book
d) Principal Book, Principal Book
Answer: a

Question: A cheque received and deposited into bank the same day will be recorded in cash book in:
a) Cash column on debit side
b) Cash column on credit side
c) Bank column on debit side
d) Bank column on credit side
Answer: c

Question: Adjusting entries are passed:
a) At the end of the accounting period
b) In the beginning of the accounting period
c) In the middle of account period
d) None of the options
Answer: a

Question: Withdrawal of Cash from Bank is recorded in:
a) Debit of Bank Column and Credit of Cash Column
b) Debit of Cash Column and Credit of Bank Column
c) Debit of Cash Column and also Credit of Cash Column
d) Debit of Bank Column and also Credit of Bank Column
Answer: b

Question: Which is not contra entry in the cash book:
a) Cash deposited into bank
b) Cash withdrawn from bank
c) Cash withdrawn from bank for personal use
d) None of the options
Answer: c

Question: Trade Discount allowed is deducted from the gross sales. Sales is recorded in the books of account at:
a) Gross Sales and Trade Discount separately
b) Net Sales Invoice
c) None of the options
d) Any of Gross Sales and Trade Discount separately and Net Sales Invoice
Answer: b

Question: When a cheque deposited into bank is dishonoured by bank, it will be recorded in cash book in:
a) Bank column on debit side
b) Bank column on credit side
c) Cash column on debit side
d) Cash column on credit side
Answer: b

Question: Purchase of furniture on credit should be recorded in:
a) Journal
b) Purchase Book
c) Cash Book
d) Journal Proper
Answer: d

Question: Journal Proper records transactions of:
a) Similar nature
b) Different nature
c) Capital nature
d) Revenue nature
Answer: b