CBSE Class 11 Accountancy Recording Of Transactions MCQs Set 03

Question: Gopal is our debtor for Rs 10,000. He became insolvent and only 60 paise in a Rs is received from him. The balance of Rs 4,000 would be entered to the:
a) Debit of Discount A/C
b) Credit of Discount A/c
c) Debit of Bad-Debts A/c
d) Credit of Bad-Debts A/c
Answer: c

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

Question: Find the correct statement:
a) Credit a decrease in assets
b) Credit the increase in expenses
c) Debit the increase in revenue
d) Credit the increase in capital
Answer: d

Question: Ledger is called a book of:
a) Primary entry
b) Secondary entry
c) Final entry
d) None of the options
Answer: c

Question: What is a Cash Book primarily used for?
a) Recording only credit transactions
b) Recording cash receipts and cash payments
c) Listing assets and liabilities
d) Summarising financial statements
Answer: b

Question: What is a 'pay-in-slip' used for?
a) Withdrawing money from a bank account
b) Depositing cash/cheques into a bank account
c) Charging interest on a bank account
d) Calculating account balances
Answer: b

Question: Income tax is treated as:
a) Business Expense
b) Direct Expense
c) Personal Expense
d) Indirect Expense
Answer: d

Question: Wages paid for repairing a machine should be debited to:
a) Repair account
b) Machine account
c) Cash account
d) Furniture account
Answer: a

Question: Cash withdrawn by the Proprietor should be credited to:
a) Drawing account
b) Capital account
c) Profit and Loss account
d) Cash account
Answer: a

Question: Voucher is prepared for:
a) Cash received and paid
b) Cash/Credit sales
c) Cash/Credit purchase
d) All of the options
Answer: d

Question: Journal records the transactions of a firm in a:
a) Periodical manner
b) Chronological order
c) Summarised manner
d) Systematic order
Answer: b

Question: Amount withdrawn by proprietor for personal use will … Cash and Capital.
a) Increase
b) Decrease
c) Not Change
d) None of the options
Answer: b

Question: When an entry is made in journal:
a) Assets are listed first.
b) Accounts to be debited listed first.
c) Accounts to be credited listed first.
d) Accounts may be listed in any order.
Answer: b

Question: If a transaction is properly analysed and recorded:
a) Only two accounts will be used to record the transaction.
b) One account will be used to record the transaction.
c) One account balance will increase and another will decrease.
d) Total amount debited will equal total amount credited.
Answer: d

Question: Cash received from Kajal Rs 36,000 after allowing her discount @10%. Amount debited to discount account will be:
a) Rs 3,600
b) Rs 4,000
c) Rs 4,400
d) Rs 40,000
Answer: b

Question: Issued a cheque for Rs70,000 to pay off one of the creditors. The account to be debited is:
a) Cash
b) Bank
c) Accounts Payable
d) Creditors
Answer: c

Question: Proprietor of the business withdrew goods from business for private use. It will be posted to the:
a) Credit of Drawings A/c
b) Debit of Purchases A/c
c) Credit of Purchases A/c
d) None of the options
Answer: c

Question: What shall be the amount of Capital if Cash is Rs 5,000; Furniture Rs 12,000; Stock Rs 30,000 and Creditors Rs 6,000.
a) Rs 53,000
b) Rs 47,000
c) Rs 41,000
d) None of the options
Answer: c

Question: The book in which all accounts are maintained is known as:
a) Cash Book
b) Journal
c) Purchases Book
d) Ledger
Answer: d

Question: Purchase of goods from X for Cash should be Credited to:
a) Purchase
b) Cash
c) X
d) None of the options
Answer: b