CBSE Class 11 Accountancy Recording Of Transactions MCQs Set F

Question: Which of the following statements about original copy of invoice/bill is correct?
a) It is kept with seller for making records in books of accounts
b) It is made for cash transactions
c) It is sent to the purchaser
d) All of the options
Answer: c

Question: Journal is considered as the book of original entry.
a) True
b) False
c) Can’t say
d) Partially true
Answer: a

Question: For which of the following transactions, assets and capital will decrease by same amount?
a) Goods sold for cash
b) Fixed asset purchased on credit
c) Depreciation provided on fixed assets
d) Goods sold for cash at a profit
Answer: c

Question: In which situation, a source document containing the date of transaction, the name of account debited, the amount and the reasons for debit is prepared?
a) When goods are returned to a supplier
b) When goods are received from a customer
c) Both When goods are returned to a supplier and When goods are received from a customer
d) None of the options
Answer: a

Question: Which source document is sent to inform about the credit made in account of buyer alongwith the reasons mentioned in it?
a) Credit slip
b) Credit bill
c) Credit note
d) Credit receipt
Answer: c

Question: Which of the following dates is irrelevant with respect to preparation of vouchers?
a) Date of transaction
b) Date of recording transaction
c) Both Date of transaction and Date of recording transaction
d) None of the options
Answer: b

Question: ……… vouchers are written documents prepared on the basis of supporting vouchers for accounting and recording purpose by an accountant and countersigned by authorised person
a) Primary
b) Secondary
c) Source
d) Both Secondary and Source
Answer: b

Question: The page number of the ledger account where the posting has been made from the journal, is recorded in the ………. column of the journal.
a) date
b) debit
c) credit
d) ledger folio
Answer: d

Question: Accounting equation is also known as ……… equation.
a) Balance sheet
b) Arithmetic finance
c) Fundamental
d) Transactional
Answer: a

Question: Which of the following is mentioned on the vouchers at the top of the paper?
a) Name of the person preparing it
b) Amount of the transaction
c) Signature of the person preparing it
d) Name of the firm
Answer: d

Question: The design of the voucher has no set ormat and depends upon the nature,requirements and convenience of business.
a) True
b) False
c) Partially true
d) Can’t say
Answer: a

Question: Which of the following is a function of a journal?
a) To keep a chronological record of all transactions.
b) To provide the basis for posting into ledger.
c) To analyse each transaction into debit and credit aspects by using double entry system of book keeping.
d) All of the options
Answer: d

Question: There will be ……… by same amount, when a land is purchased by paying the amount from bank account.
a) Increase in asset, increase in liabilities
b) Increase in asset, decrease in liabilities
c) Decrease in asset, decrease in liabilities
d) Decrease in one asset, increase in another asset
Answer: d

Question: A cheque is considered as an order in writing drawn upon a bank to pay a specified sum to the bearer or the person named in it only if it is dated and signed by the ……… .
a) drawee
b) drawer
c) Both drawee and drawer
d) bearer
Answer: b

Question: When goods are returned to supplier, assets and ….. are …… by same amount.
a) liabilities, increased
b) liabilities, decreased
c) assets, increased
d) assets, decreased
Answer: b

Question: Expenses tend to decrease the capital of business.
a) True
b) False
c) Partially True
d) Can’t say
Answer: a

Question: What will be the effect on accounting equation for outstanding expenses? (Options are in format of assets, liabilities, capital).
a) Decrease, Decrease, No change
b) Decrease, No change, Decrease
c) No change, Increase, Decrease
d) Decrease, Increase, Decrease
Answer: c

Question: In a journal, transactions are recorded in chronological order.
a) True
b) False
c) Can’t say
d) Partially true
Answer: a

Question: When the number of accounts to be debited or credited is more than one, entry made for recording the transaction is called ……… journal entry.
a) single
b) compound
c) normal
d) None of the options
Answer: b

Question: Each cheque has a counterfoil in which the same details as entered in the cheque are filled. The counterfoil remains with the ……… for future purposes.
a) bank
b) cashier
c) account holder
d) Both cashier and account holder
Answer: c

Question: Services for which prepaid expenses were paid are now availed by Sonu Enterprises. What will be its effect on accounting equation?
a) Increase in asset, increase in liabilities
b) Increase in asset, increase in capital
c) Decrease in asset, decrease in liabilities
d) Decrease in asset, decrease in capital
Answer: d

Question: Original copy of receipt is kept by trader himself/herself for making records in books of accounts.
a) True
b) False
c) Partially false
d) Can’t say
Answer: b

Question: A duplicate copy of the credit note is retained by …… for record purpose.
a) buyer
b) seller
c) customer
d) Both seller and customer
Answer: b

Question: Which of the following is/are feature(s) of journal?
(i) It is a daily accounting record.
(ii) It records both credit and debit aspects of a transaction.
(iii) No explanation of the transactions is given.
a) Only (i)
b) (i) and (ii)
c) (i) and (iii)
d) (i) (ii) (iii)
Answer: b

Question: Which of these information is present on invoice?
(i) Party to whom goods are sold
(ii) Goods sold
(iii) Total sale amount
a) (i) and (ii)
b) (ii) and (iii)
c) (i) and (iii)
d) All of the options
Answer: d

Question: Which of the following statements about source document is incorrect?
(i) They are required for audit and tax assessments.
(ii) They do not serve as legal evidence in case of a dispute.
(iii) These documents are written and authentic proof of the correctness of the recorded transaction.
a) (ii) and (iii)
b) Only (ii)
c) Only (iii)
d) All of the options
Answer: b

Question: Following are the steps involved in developing an accounting equation (in particular order). Arrange the steps incorrect sequence.
(i) Find out the effect (in terms of increase or decrease) of a transaction on assets, capitals or liabilities.
(ii) Show the effect on appropriate side of an equation and ensure that the total of right hand side is equal to the total of left hand side.
(iii) Ascertain the variables (i.e. assets, liabilities or capital ) involved in a transaction.
a) (i), (ii), (iii)
b) (ii), (iii), (i)
c) (iii), (i), (ii)
d) (iii), (ii), (i)
Answer: c

Question: Which of the following is/are advantage(s) of maintaining a journal?
(i) As transactions in journal are entered as and when they take place, the possibility of omission of a transaction in the books of accounts is minimised.
(ii) Journal facilitates cross checking of ledger accounts in case a trial balance does not agree.
(iii) It is bulky.
a) Only (i)
b) (i) and (ii)
c) (i) and (iii)
d) (i) (ii) (iii)
Answer: b

Fill In The Blanks

Question: Salary due to clerk Rs 20,000 will be credited in —————– Account.
Answer: Outstanding salary

Question: Goods of Rs 50,000 is purchased and on it wages is paid for Rs 5,000 and Rs 1,000 is paid to worker for bringing goods, 1/4th of the goods is purchased by business for resale purpose then Purchases account will be debited by Rs ————.
Answer: Rs 12,500

Question: Repayment of Bank loan of Rs 2, 00,000 with interest of Rs 20,000 by issue of cheque from current account, capital will be decrease by Rs ————-.
Answer: Rs 20,000

Question: Transaction with multiple debits and one credit are recorded on the basis of _________ vouchers.
Answer: compound

Question: Goods costing Rs 40,000 sold at a loss of 25% on cost, 12,000 received in cash then debtors will increased by Rs————–.
Answer: 18,000

Question: Bought goods for cash Rs 20,000 from Ram and also purchased of Rs 40,000 on credit then stock of Rs ——————will be increase.
Answer: Rs 60,000

Question: If Ram started a business with capital of Rs 50,000 on 1st April, 2018 and his capital of Rs 80,000 on 31st March, 2019 then interest on capital @ 10% will be Rs ———-.
Answer: 5,000

Question: Goods costing Rs 6,000 Invoice Price Rs 4,800 Loss by fire, Purchases account will be credited by Rs ————-.
Answer: Rs 48, 00

Question: Transactions of Radha (A furniture dealer)
Jan 1,2019 Purchased Furniture worth of Rs 60,000
Jan 2,2019 Out of which goods of Rs 10,000 is used by business for office use
Purchase account will be debited by Rs ———– on Jan 01, 2019
Answer: Rs 60,000

True/ False

Question: Patent is a Nominal Account.
Answer: False

Question: Debtor is a Nominal Account.
Answer: False

Question: While depositing Cash in Bank, the source document to be prepared is Debit Voucher.
Answer: False

Question: When goods are returned to supplier debit note is prepared.
Answer: True

Question: Sold goods costing Rs 12,000 at a profit of 20% on sales the effect on accounting equation will be Increase in cash Rs 14,400 increase in stock Rs 12,000 and increase in capital Rs 24,00.
Answer: False

Question: Rent for the month of March not paid is Increase in liabilities and decrease in capital.
Answer: True

Question: Goods Given as charity Sales price 1500 of Rs 1450 Increase in debtor by 500 and increase in stock by 500.
Answer: False

Question: Commission received in advance of Rs 20,000 Increase in cash by 20,000 and increase in liability by 20,000.
Answer: True

Match The Following

Question:
1. A document used to deposit cash or cheque into the bank.                               a) Pay in slip
2. A document in writing drawn upon a specified bank with which the                   b) Debit note
    account is held and is payable on demand.
                                                                                                                               c) Cheque
                                                                                                                               d) Invoice or bill
Answer: 1-a, 2-c

Question:
Transaction Which voucher is prepared :
1. Sold goods vide Cash Memo No 111:                                                                 a) Journal entries
2. Purchased goods for cash vide cash memo no 101.                                          b) Documentary evidence
                                                                                                                                c) Debit voucher
                                                                                                                                d) Credit voucher.
Answer: 1-c; 2-d

Question:
1. voucher are prepare on the basis of                                                                     a) Receipt
2. credit voucher are prepared to record cash                                                          b) Voucher
3. a document which provides evidences of the transaction                                     c) Source document
Answer: 1-c,2-a ,3-b

Question:
1. Voucher which records a transaction entails multiple                                            a) Debit voucher
    debits/credits is called              
2. Voucher which have cash value and they are used to transfer                              b) Compound voucher
    money from one bank account to another bank 
3. Paper or electronic record of a credit transaction through bank card                    c) Journal voucher
4. Document which is stored the essential information about and                             d) Credit voucher
    accounting transaction       
Answer: 1-b ,2-a ,3-d, 4-c

Arrange the following in sequence in accounting equation

Question:
Transactions
A Claim Received from Insurance company of Rs 24,000
B Goods Purchased of Rs 50,000 on credit from Creditors
C Goods Lost By fire of Rs 30,000 and insurance company accepted 80% claim.
Answer: B-C-A

Question:
Transactions
A Ramesh whose declared bad now paid of Rs 12,000
B Goods sold of Rs 20,000 in cash of Rs 20,000 and on credit of Rs 20,000 to
C Ramesh declared insolvent and only 40% amount is received from Ramesh.
Answer: B-C-A