CBSE Class 11 Accountancy Recording Of Transactions MCQs Set E

Question: Debit note is sent to a ……… when the goods are ……… .
a) customer, delivered
b) supplier, delivered
c) supplier, returned
d) customer, returned
Answer: c

Question: Which of the following source documents is used for depositing cash or cheques into bank?
a) Counterfoil
b) Pay-in-slip
c) Cash slip
d) Pay note
Answer: b

Question: The book in which the transaction is recorded for the first time is called ……… .
a) Ledger
b) Journal
c) Trial Balance
d) None of the options
Answer: a

Question: Source documents are also referred to as
a) first information documents
b) notes
c) supporting documents
d) invoices
Answer: c

Question: A transaction may affect either both sides of the equation by the same amount or only one side of the equation by both increasing and decreasing it by equal amount.
a) True
b) False
c) Partially true
d) Can’t say
Answer: a

Question: Which written document is prepared by seller for goods sold against cash which acts as an evidence for both the seller and the purchaser of goods?
a) Cash-in-slip
b) Cash bill
c) Cash memo
d) Voucher
Answer: c

Question: Neeraj Ltd. is engaged in a laptop trading business the total assets of business are ₹ 10,40,000 and outside liabilities are ₹1,80,000. What will be the owner’s equity?
a) ₹12,20,000
b) ₹9,60,000
c) ₹8,60,000
d) Can’t be determined
Answer: c

Question: Rates of items sold are not mentioned on cash memo.
a) True
b) False
c) Patially true
d) Can’t say
Answer: b

Question: The business documents which serves as the evidence of the business transactions are known as
a) First hand documents
b) Bills
c) Notes
d) Source documents
Answer: d

Question: Cash vouchers are type of accounting vouchers which are prepared for cash transactions only. Which of the following are types of cash vouchers?
a) Cash receipt vouchers and cash payment vouchers
b) Debit vouchers and cheque vouchers
c) Debit vouchers and credit vouchers
d) Cheque vouchers and credit vouchers
Answer: c

Question: When a trader sells goods on credit, he prepares a sale ……… which contains the name of the party to whom goods are sold, the rate, quantity and the total amount of sale.
a) memo
b) bill
c) invoice
d) Both bill and invoice
Answer: d

Question: The vouchers which are prepared for transactions not involving cash, i.e. non-cash transaction, are known as ……… vouchers.
a) Credit
b) Token
c) Unilateral
d) Transfer
Answer: d

Question: What will be the effect of following transaction on the accounting equation? Goods sold on credit to X (costing ₹ 10,000) for ₹ 15,000.
a) Assets, (₹15,000); Liabilities, (₹15,000); Capital, 0
b) Assets (₹10,000) ; Liabilities, (₹15,000); Capital, ₹5000
c) Assets (₹5,000) ; Liabilities, 0; Capital, (₹5000)
d) None of the options
Answer: d

Question: From the following information, calculate the total assets of the business Capital = ₹ 80,000; Creditors = ₹ 60,000, Revenue during the period = ₹ 1,00,000 Expenses during the period = ₹ 80,000; Value of unsold stock = ₹ 20,000
a) ₹80,000
b) ₹1,60,000
c) ₹1,80,000
d) ₹1,40,000
Answer: b

Question: Rules of debit and credit are same for both liability and capital.
a) True
b) False
c) Partially true
d) Can’t say
Answer: a

Question: Accounting vouchers are prepared for
a) cash transactions
b) non-cash transactions
c) Both cash transactions and non-cash transactions
d) None of the options
Answer: c

Question: When cash is withdrawn by proprietor, what is its impact on accounting equation?
a) Decrease in assets, decrease in liabilities
b) Decrease in assets, decrease in capital
c) Increase in assets, increase in liabilities
d) Increase in assets, increase in capital
Answer: b

Question: Which of the following must be a characteristic of a standard voucher?
a) It should be printed on good quality paper
b) Debit or credit amount should be written in figures against the amount
c) Description of transaction should be given account wise
d) All of the options
Answer: d

Question: Which source document is issued by a trader when he receives cash from the customer?
a) Receipt
b) Cash memo
c) Cheque
d) Pay-in-slip
Answer: a

Question: For which of the following, non-cash voucher is prepared?
a) Credit sale of goods
b) Credit sale of investments
c) Credit sale of fixed assets
d) All of the options
Answer: d

Question: Pay-in-slip is a form which is available from a bank having a counterfoil which is returned to the depositor with …… signature and bank’s stamp as receipt.
a) depositor’s
b) bank manager’s
c) cashier’s
d) Both depositor’s and cashier’s
Answer: c

Question: If a business transaction results in the increase of assets, there will also be a corresponding increase in the amount of
a) liabilities
b) capital
c) both liabilities and capital
d) All of the options
Answer: d

Question: A journal helps in maintaining the identity of each transaction by keeping a complete record of each transaction at one place on a permanent basis.
a) True
b) False
c) Can’t say
d) Partially true
Answer: a

Question: A mathematical expression, which shows that the …… and …… of a firm are equal, is known as accounting equation.
a) liabilities and capital
b) assets and capital
c) liabilities and assets
d) None of the options
Answer: c

Question: For which of the following transactions, capital account will be increased and decreased by the same amount?
a) Income received in advance
b) Outstanding expenses paid
c) Interest on drawings provided
d) Bad debts on insolvency of a debtor
Answer: c

Question: Which of the following details is usually provided on the source documents?
a) Nature of transaction
b) Date
c) Parties involved
d) All of the options
Answer: d

Question: On the basis of source documents, entries are directly made in Journal.
a) True
b) False
c) Partially true
d) Can’t say
Answer: b

Question: As the effect of a transaction, capital of the company increased by ₹ 2,000 and assets also increased by ₹ 4000. Identify the transaction.
a) Goods purchased on credit , ₹2,000
b) Goods costing₹10,000 sold for ₹8,000
c) Commission received worth₹2,000
d) Both Goods costing₹10,000 sold for ₹8,000 and Commission received worth₹2,000
Answer: c

Fill In The Blanks

Question: Goods costing 48,000 sold at a profit of 25% on sales to Ram, ¾th received in cash. Capital of Rs ————-will be increased in accounting equation.
Answer: Rs 16,000

Question: Bought goods for cash Rs 20,000 from Ram and also purchased of Rs 40,000 on credit from Ram, then Ram account will be credited by Rs —————–.
Answer: Rs 40,000

Question: Rent Paid Rs 6,000 of a business which is equally used by owner and business from Personal cash. Then Capital will be credited by Rs ——————.
Answer: 3,000

Question: Purchase of goods in cash effects one element of accounting equation. Name of one element will be —————-.
Answer: assets

Question: Goods sold which is purchased of Rs 40,000 at a profit of 25% on cost at 10% trade discount and 2% cash discount. Half payment is made through cheque and half will be on credit. Then discount account will debited by Rs ——————- and Bank will be debited by Rs————– .
Answer: discount -450; Bank Rs 22050

Question: If Pooja returned goods of Rs 2,000 to us, then ————– account will be ———– as per modern approach.
Answer: Sales return, debited

Question: While preparing the accounting vouchers ___________ concept is applied.
Answer: verifiable objective

Question: Ram working as a cashier in Reliance industry for the financial year 2019-20 and amount of 10 months’ salary Rs 2,00,000 credited in his account then 2 months’ salary of Rs 40,000 is shown in Reliance Industry by the name of ————–.
Answer: Outstanding salary

Question: Goods costing Rs 50,000 sold at a loss of 20% on cost, 12,000 received in cash then debtors will increased by Rs ————–.
Answer: Rs 18,000

Question: Goods purchased from Krishna of Rs 20,000 and supplied to Radhika for Rs 26,000, out of which Radhika returned goods of Rs 7,800 due to not as per sample which returned to Krishna by Rs ——.
Answer: Rs 6,000

Question: Goods Costing Rs 8,000 sold at a profit of 20% on cost, then profit will be added in ———account in accounting equation.
Answer: capital

Question: Furniture purchased on credit Rs 20, 000, ———– account will be debited.
Answer: Furniture

True/ False

Question: Goods Loss by theft costing Rs25,000 selling price Rs 30,000 decrease in stock by 25,000 and decrease in capital by Rs 30,000 .
Answer: False

Question: Rent received is a Nominal Account whereas Unearned Rent is a personal Account.
Answer: True

Question: Invoice is prepared by the seller of goods when he sells goods on credit.
Answer: True

Question: Goods returned by customer is Increase in cash and increase in stock.
Answer: False

Question: Rent paid Rs 30,000 paid for one year on 1st August 2018, Prepaid Rent on 31st March, 2019 will be 10,000.
Answer:True

Question: Cash Memos, invoice, bills are examples of Accounting Vouchers.
Answer: False

Question: Creditor is a Personal Account.
Answer: True

Question: When goods are received back from customers debit note is prepared.
Answer: False

Question: Interest on capital is Increase in capital and decrease in capital.
Answer: True

Question: MR. X who owed us Rs 25,000 is declared insolvent and 75 Paisa in a Rupee received from him .the Amount and Account would be entered to Debit of Cash A/c by 18,750.
Answer: True

Match The Following

Question:
1. A voucher showing a transaction that contains multiple debits and one credit          a) Pay in slip
2. A voucher showing a transaction that contains multiple Credits and one Debit.        b) Debit voucher
c) Credit voucher
d) Invoice or bill
Answer: 1-b; 2-c

Question:
1. A voucher is prepared for :                        a) Journal entries
2. A voucher is prepared from :                     b) Documentary evidence
                                                                     c) All cash & credit transaction
                                                                     d) Ledger account
Answer: 1-c; 2-b

Question:
Transaction Which voucher is prepared :
1. Purchased machinery Rs 2,50,000 from From XLtd. Vide bill No.`1027.            a) Journal entries
2. withdrew cash Rs 2,00 for personal use on 15 april                                            b) Transfer voucher
                                                                                                                                c) Debit voucher
                                                                                                                                d) Credit voucher
Answer: 1-b; 2-c

Question:
1. Document sent by one party to another informing the other party                       a) Pay in slip
    that his account debited in the sender books
2. Document sent by one party to another informing the other party                       b) Debit note
    that his account Credited in the sender books
                                                                                                                                 c) Credit note.
                                                                                                                                 d) Invoice or bill
Answer: 1-b; 2-c

Question:
1. A document prepared by the seller when goods are sold for cash.                     a) Pay in slip
2. A document prepared by the seller when goods are sold for Credit                    b) Debit note
                                                                                                                                c) Cash memo
                                                                                                                                d) Invoice or bill
Answer: 1-c, 2-d

Arrange the following in sequence in accounting equation

Question:
Transactions
A Payment made by cheque to Hari of Rs 20,000
B Purchased goods from Hari of Rs 20,000.
Answer: b-A

Question:
Transactions
A Salary Due in the month of March, 2019 of Rs 20,000
B Salary Paid in the month of January 2019
Answer: b-A