CBSE Class 11 Accountancy Recording Of Transactions MCQs Set H

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: Payment of Rs.6,000 as wages to workmen for installation of a machine should be debited to:
a) Wages A/c
b) Repairs A/c
c) Machinery A/c
Answer: c

Question: Lalit, who owed Rs. 20,000 became insolvent. 70 paise in a rupee was received from his estate. Bad Debts Account will be debited by:
a) Rs. 20,000
b) Rs. 10,000
c) Rs. 6,000
d) Rs. 14,000
Answer: c

Question: Which of the following is correct entry to record cash purchase of Rs. 3,000 from Amar?
a) Dr. Purchases A/c and Cr. Amar by Rs. 3,000
b) Dr. Amar and Cr. Purchases A/c by Rs. 3,000
c) Dr. Cash A/c and Cr. Purchases A/c by Rs. 3,000
d) Dr. Purchases A/c and Cr. Cash A/c by Rs. 3,000
Answer: d

Question: Normally, the following accounts are balanced:
a) Personal A/c & Nominal A/c
b) Real A/c & Nominal A/c
c) Only Nominal A/c
d) Personal A/c & Real A/c
Answer: d

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 these
Answer: c

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: Personal accounts are related to:
a) Assets and Liabilities
b) Expenses, losses and incomes
c) Debtors, Creditors etc.
Answer: c

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

Question: Sold goods for cash of the list price of Rs. 8,000 at 10% trade discount and 3% cash discount. Posting will be made in Discount A/c:
a) Rs. 216 on Debit side
b) Rs. 216 on Credit side
c) Rs. 240 on Debit side
d) Rs. 240 on Credit side
Answer: a

Question: Paid to Rahul on behalf of Sanjay Rs. 12,000 will be debited to:
a) Rahul’s Personal Account
b) Sanjay’s Account
c) Drawings Account
d) Cash Account
Answer: b

Question: The “Principal Book of Accounting” is known as:
a) Ledger
b) Journal
c) Trial balance
d) Balance sheet
Answer: a

Question: Gopal is our debtor for Rs. 10,000. He became insolvent and only 60 paise in a rupee 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: 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
Answer: c

Question: Careceived sh 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: Anil purchased 1,000 Add Gel Roller Pens @ Rs. 50 each less Trade Discount of 20%. Purchases Account will be debited by:
a) Rs. 50,000
b) Rs. 40,000
c) Rs. 45,000
d) Rs. 60,000
Answer: c

Question: Purchase of goods from A for Cash should be credited to:
a) Purchase
b) Cash
c) X
Answer: b

Question: Sold goods worth list price of Rs. 8,000 at 10% trade discount and 2% cash discount. 25% received at the time of transaction only. The amount posted to discount account will be:
a) Rs. 36 on Debit side
b) Rs. 144 on Credit side
c) Rs. 144 on Debit side
d) Rs. 40 on Credit side
Answer: a

Question: Paid to Jigyasa Rs. 11,500 in full settlement of Rs. 12,000. Posting will be made in Jigyasa’s A/c:
a) Rs. 12,000 on Debit side
b) Rs. 12,000 on Credit side
c) Rs. 11,500 on Debit side
d) Rs. 11,500 on Credit side
Answer: a

Question: X sells goods on credit to Y. He receives 10% trade discount from X and a further 5% cash discount if paid within 15 days. K bought goods with a list price of Rs. 2,00,000 from X. Which of the following Journal entry would correctly record the sale in the books of A?
a) Dr. Y and Cr. Sales A/c by Rs. 1,70,000
b) Dr. Y and Cr. Sales A/c by Rs. 1,80,000
c) Dr. X and Cr. Sales A/c by Rs. 1,90,000
d) Dr. X by Rs. 2,00,000; Cr. Sales A/c by Rs. 1,70,000 and Discount A/c by Rs. 30,000
Answer: b

Question: Anil purchased 1,000 Add Gel Roller Pens @ Rs. 50 each less 20% Trade Discount and 3% Cash Discount if payment is made within 30 days. Anil paid Rs. 10,000 within 30 days and balance amount after 30 days period. Purchases Account will be debited and Discount Received Account will be credited respectively with:
a) Rs. 40,000, Nil
b) Rs. 40,000, Rs. 300
c) Rs. 40,000, Rs. 1,200
d) Rs. 40,000, Rs. 900
Answer: a

Question: Withdrawal of cash from business by the proprietor is credited to:
a) Drawings A/c
b) Capital A/c
c) Cash A/c
d) Bank A/c
Answer: c

Question: Trade Discount received on purchases is recorded in the books of account as follows:
a) Trade Discount is credited to Discount Received Account
b) Trade Discount is deducted from the List Price and recorded at net value
c) Trade Discount is debited to Discount Allowed Account
d) Any of (a) and (b)
Answer: b

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: Received Rs. 4,900 from Garima in full settlement of Rs. 5,000. Posting of Rs. 100 will be made to the:
a) Debit side of Garima’s A/c
b) Credit side of Garima’s A/c
c) Debit side of Discount A/c
d) Credit side of Discount A/c
Answer: c

Question: Loss of goods by fire should be credited to:
a) Sales A/c
b) Loss A/c
c) Profit & Loss A/c
d) Purchases A/c
Answer: d

Question: Goods worth Rs. 7,000 given away as charity would be credited to:
a) Sales A/c
b) Purchases A/c
c) Charity A/c
d) Trustee A/c
Answer: b

Question: A sole trader took goods costing Rs. 1,000 from stock for his own use. The normal selling price of the goods is Rs. 1,500. Which of the following Journal entries would correctly record this?
a) Dr. Drawings A/c and Cr. Purchases A/c by Rs. 1,000
b) Dr. Drawings A/c and Cr. Sales A/c by Rs. 1,500
c) Dr. Drawings A/c and Cr. Purchases A/c by Rs. 1,500
d) Dr. Sales A/c and Cr. Drawings A/c by Rs. 1,000
Answer: a

Question: Which of the following accounts will be credited on giving cash donation?
a) Cash A/c
b) Donation A/c
c) Purchases A/c
d) Discount Received A/c
Answer: a

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. 38,000
c) Rs. 37,500
d) Rs. 34,200
Answer: b

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

Question: The total of Purchase Return Column of Purchases Return book will be posted to the:
a) Debit of Purchases A/c
b) Credit of Purchases A/c
c) Debit side of Purchases Return A/c
d) Credit side of Purchases Return A/c
Answer: d

Question: Rent of proprietor’s house paid from account on cash will:
a) Decrease the profit
b) Increase the profit
c) Reduce the capital of business
d) Reduce the cash as well as capital of the business
Answer: d

Question: Sale of goods to Ram for cash is debited to:
a) Ram
b) Cash A/c
c) Sales A/c
d) Stock A/c
Answer: b

Question: Goods costing Rs. 20,000 are sold at a profit of 20% on cost and trade discount is allowed @10% and cash discount of 10% is also allowed. Half the payment was received at the time of sale. What is the amount of cash received at the time of sale?
a) Rs. 9,720
b) Rs. 10,800
c) Rs. 11,880
d) Rs. 10,820
Answer: a

Question: Journal is called:
a) a book of primary entry
b) a book of secondary entry
c) a book of final entry
d) both secondary entry and final entry
Answer: a

Question: Nominal Accounts are related to:
a) Assets and Liabilities
b) Expenses, losses and incomes
c) Debtors, Creditors etc.
Answer: b

Question: Cash Discount received is recorded in the books of account as follows:
a) Cash Discount is credited to Discount Received Account
b) Cash Discount is reduced from the Invoice Price
c) Cash Discount is debited to Discount Allowed Account
d) Any of (a) and (b)
Answer: a

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 above
Answer: d

Question: Bad Debts earlier written off and now received are credited to:
a) Bad Debts A/c
b) Bad Debts Recovered A/c
c) Miscellaneous Income A/c
d) Debtors A/c
Answer: b

Question: Which of these accounts has debit balance?
a) Income received in advance
b) Bank loan
c) Prepaid insurance premium
d) Creditors for goods
Answer: c

Question: While posting in personal accounts from the purchases book, posting is done :
a) On Debit side
b) On Credit side
c) On Debit or Credit side
d) None of the above
Answer: b

Question: Akhil, who owed Rs. 10,000 became insolvent. Rs. 0.75 in a rupee was received from his estate. Amount received and credited to Akhil’s Account will be
a) Rs. 7,500
b) Rs. 2,500
c) Rs. 10,000
d) Rs. 5,000
Answer: a

Question: Total assets in a business are Rs.8,00,000 and total liabilities are Rs.5,00,000. The difference is called:
a) Income
b) Expenses
c) Capital
d) Goodwill
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 above
Answer: c

Question: Purchased goods from Manoj of Rs.20,000 at 20% trade discount. Posting will be made in Manoj A/c :
a) Debit side Rs.20,000
b) Credit side Rs.20,000
c) Debit side Rs.16,000
d) Credit side Rs.16,000
Answer: d

Question: Dinesh who owed us Rs.8,000 became insolvent and paid us 60% in full settlement. Posting will be made to Dinesh A/c :
a) Rs.8,000 on Debit side
b) Rs.8,000 on Credit side
c) Rs.4,800 on Debit side
d) Rs.4,800 on Credit side
Answer: b

Question: Journal is a book of in accounting.
a) All non-cash transactions
b) Secondary entry
c) Original entry
d) All cash transaction
Answer: c

Question: Which of the following is a cash transaction?
a) Sold goods
b) Sold goods to Ravinder
c) Sold goods to Ravinder on credit
d) Sold goods to Ravinder on account
Answer: a

Question: Ledger is a book of ______ in accounting.
a) All non-cash transactions
b) Secondary entry
c) Original entry
d) All cash transactions
Answer: b

Question: Which of the following is correct?
a) Profit/Loss = Closing Capital + Additional Capital – Drawings – Opening Capital
b) Profit/Loss = Closing Capital - Drawings - Additional Capital – Opening Capital
c) Profit/Loss = Opening Capital + Drawings made – Additional Capital – Closing Capital
d) Profit/Loss = Closing Capital + Drawings made – Additional Capital – Opening Capital
Answer: d

Question: If a firm borrows a sum of money, there will be
a) Increase in capital
b) Decrease in capital
c) No effect on capital
d) None of the above
Answer: a

Fill in the blanks

Question: The accounting voucher are based on …………….
Answer: Supporting

Question: Accounting equation satisfies the …………….. concept of accounting.
Answer: Dual

Question: Accounting equation serves as a basis for preparing …………….
Answer: Balance Sheet

Question: The explanation of a Journal entry is known as ……………….
Answer: Narrations

Question: Ledger account gives the folio of ………………….
Answer: Journal