CBSE Class 11 Accountancy Recording Of Transactions MCQs Set 04

Question: Real accounts are related to:
a) Assets
b) Expenses, losses and incomes
c) Debtors, Creditors etc.
d) All of the options
Answer: a

Question: Which of the following equations is correct?
a) Assets + Capital = Liabilities
b) Assets – Liabilities = Capital
c) Assets + Liabilities = Capital
d) None of the options
Answer: b

Question: Invoice is a source voucher for:
a) Cash purchases
b) Credit purchases
c) Both Cash purchases and Credit purchases
d) Neither Cash purchases nor Credit purchases
Answer: b

Question: The journal entry to record the sale of services on credit should include:
a) Debit to debtors and credit to capital.
b) Debit to cash and Credit to debtors.
c) Debit to fees income and Credit to debtors.
d) Debit to debtors and Credit to fees income.
Answer: d

Question: An increase in one asset is accompanied by:
a) Decrease in another asset
b) Increase in a liability
c) Increase in capital
d) All of the options
Answer: d

Question: A company pays Rs2,000 for a one-year insurance policy in advance. What is the journal entry at the time of payment?
a) Debit Insurance Expense Rs2,000; Credit Cash Rs2,000
b) Debit Prepaid Insurance Rs2,000; Credit Cash Rs2,000
c) Debit Cash Rs2,000; Credit Insurance Expense Rs2,000
d) Debit Cash Rs2,000; Credit Prepaid Insurance Rs2,000
Answer: b

Question: Issued a cheque for Rs8,000 to pay rent. The account to be debited is:
a) Rent Expense
b) Cash
c) Bank
d) Accounts Payable
Answer: a

Question: A purchase of machine for cash should be debited to:
a) Cash account
b) Machine account
c) Purchase account
d) None of the options
Answer: b

Question: Rs 5,000 received from Mohan whose account was written off as bad in the previous year should be credited to:
a) Mohan’s A/C
b) Bad-Debts A/c
c) Bad-Debts Recovered A/c
d) None of the options
Answer: c

Question: Main object of preparing a ‘Journal’ is:
a) To ascertain the financial position of the business
b) To journalise the cash transactions
c) To make posting in the ledger
d) To record the business transactions first of all
Answer: d

Question: Ledger is a book in which:
a) Real and Nominal Accounts are maintained
b) Real and Personal Accounts are maintained
c) Real, Personal and Nominal Accounts are maintained
d) None of the options
Answer: c

Question: What are the five categories of ledger accounts?
a) Assets, Liabilities, Revenue, Expenses, and Drawings
b) Assets, Liabilities, Capital, Revenues/Gains, and Expenses/Losses
c) Assets, Equity, Liabilities, Income, and Expenses
d) Assets, Debts, Equity, Gains, and Losses
Answer: b

Question: Nominal Accounts are related to:
a) Assets and Liabilities
b) Expenses, losses and incomes
c) Debtors, Creditors etc.
d) None of the options
Answer: b

Question: Which of the following accounts always shows a debit balance:
a) Capital Account
b) Sales Account
c) Purchases Return Account
d) None of the options
Answer: d

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: Purchase of machine by cash means:
a) Decrease in asset and decrease in liability
b) Increase in asset and decrease in asset
c) Increase in asset and decrease in liability
d) Decrease in asset and increase in capital
Answer: b

Question: The ledger folio column of journal is used to:
a) Record the date on which amount posted to a ledger account.
b) Record the number of ledger account to which information is posted)
c) Record the number of amounts posted to the ledger account.
d) Record the page number of the ledger account.
Answer: d

Question: Goods costing Rs 30,000 supplied to Mohan at a profit of 25% of sales price less Trade discount @ 5% will be credited to Sales A/c with:
a) Rs 35,625
b) Rs 8,000
c) Rs 37,500
d) Rs 34,200
Answer: b

Question: Recording of transaction in the Journal is called:
a) Casting
b) Posting
c) Journalising
d) Recording
Answer: c

Question: The journal entry to record purchase of equipment for Rs 2,00,000 cash and a balance of Rs 8,00,000 due in 30 days includes:
a) Debit equipment for Rs 2,00,000 and Credit cash Rs 2,00,000
b) Debit equipment for Rs 10,00,000 and Credit cash Rs 2,00,000 and creditors Rs 8,00,000
c) Debit equipment Rs 2,00,000 and Credit debtors Rs 8,00,000
d) Debit equipment Rs 10,00,000 and Credit cash Rs 10,00,000
Answer: b

Question: The credit balance of a personal account is:
a) Cash in hand
b) Amount receivable
c) Income earned
d) Amount payable
Answer: d

Question: Payment to a creditor means:
a) Increase in asset and decrease in liability
b) Decrease in asset and decrease in liability
c) Decrease in asset and increase in liability
d) Increase in asset and increase in liability
Answer: b