CBSE Class 11 Accountancy Recording Of Transactions MCQs Set 02

Question: The first book of original entry is:
a) Journal
b) Ledger
c) Trial Balance
d) None of the options
Answer: a

Question: The balance of Goods Account is transferred to:
a) Profit and Loss Account
b) Trading Account
c) Balance Sheet
d) None of the options
Answer: b

Question: The entry passed to bring forward balances of personal and real accounts from the previous year’s balance sheet is called:
a) Closing entry
b) Journal entry
c) Opening entry
d) None of the options
Answer: c

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

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

Question: The statement used when closing a Drawing Account is:
a) Balance c/d
b) By Trading A/c
c) By P & L A/c
d) By Capital Account
Answer: d

Question: Sales to Ram of Rs. 336 were not recorded) This will affect:
a) Only sales account
b) Only Ram's account
c) Both sales account and Ram's account
d) None of the accounts
Answer: c

Question: Which of the following is an example of an adjusting entry?
a) Recording the purchase of goods on account
b) Recording depreciation of a truck
c) Recording the billing of customers for services rendered
d) Recording the payment of wages to employees
Answer: b

Question: The technique of finding the net balance of an account after considering the totals of both debits and credits is known as:
a) Posting
b) Purchase
c) Balancing of an account
d) Arithmetical accuracy test
Answer: c

Question: What is the primary function of a Journal in accounting?
a) To record cash receipts and payments
b) To maintain petty expenses
c) To record all transactions as the basic book of original entry
d) To summarise the financial position of a business
Answer: c

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

Question: The cash book used for recording petty expenses is called:
a) Simple cash book
b) Petty cash book
c) Triple column
d) None of the options
Answer: b

Question: What is the main purpose of a Single Column Cash Book?
a) To record credit transactions
b) To track financial statements
c) To record all cash transactions of a business
d) To maintain inventory levels
Answer: c

Question: Trial Balance shows:
a) Both debit and credit balances
b) Only debit balance
c) Only credit balance
d) None of the options
Answer: a

Question: What is the effect on the Cash Account when a company purchases supplies for Rs1,200?
a) Debit Rs1,200
b) Credit Rs1,200
c) No effect
d) Debit Rs1,200 and Credit Supplies Account Rs1,200
Answer: b

Question: _______ is not a subsidiary book.
a) Purchase book
b) Purchases return book
c) Sales book
d) Ledger
Answer: d

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

Question: Liabilities and assets amount to Rs50,000 and Rs7,800 respectively. The difference amount shall represent:
a) Creditors
b) Debentures
c) Profit
d) Capital
Answer: d

Question: When a cheque received is endorsed, it must be entered on:
a) Credit side of the cash book only
b) Debit side of the cash book only
c) Both sides of the cash book
d) Nowhere
Answer: c

Question: Invoice is a source voucher for seller of goods:
a) For cash sales
b) For credit purchases
c) For credit sales
d) For cash purchases
Answer: c