CBSE Class 11 Accountancy Recording Of Transactions MCQs

Question :  Anil, the Petty Cashier of Ebony, has an imprest of Rs.5,000 out of which he pays for petty expenses. He submits the details of payments every 15 days which is reimbursed to him. He submitted the details for 15 days that ended on 15th April, 2012 amounting to Rs. 4,900. He has with him unpaid expense vouchers amounting to Rs.2,200. How much amount should be paid to him?
a) Rs.4,900
b) Rs.5,000
c) Rs.2,200
d) Rs.7,100
Answer :  A

Question :  It is system of paying advance in the beginning and reimbursing the amount spent from time to time to the petty cashier.
a) Imprest System
b) Financial System
c) Analytical System
d) Ordinary System
Answer :  A

Question :  The Sales Book is a part of:
a) Journal
b) Trading A/c
c) Balance Sheet
d) Ledger
Answer :  A

Question :  Which account will be debited in case Life insurance premium is paid by proprietor from business cash?
a) Drawings A/c
b) Capital A/c
c) Insurance A/c
d) Cash A/c
Answer :  A

Question :  While passing an opening entry, all the assets are______while all the liabilities are_____
a) Debited , credited
b) Credited, Credited
c) None of the options
d) Credited, Debited
Answer :  A

Question :  Which account will be debited in case wages are paid for installation of machinery?
a) Machinery A/c
b) Installation A/c
c) Wages A/c
d) Cash A/c
Answer :  A

Question :  What are total number of subsidiary books available to record financial transactions?
a) 8
b) 7
c) 6
d) 12
Answer :  A

Question :  Name the transaction that is recorded in both sides of Cash book simultaneously.
a) Contra Entry
b) Dual entry
c) Double entry
d) Single entry
Answer :  A

Question :  All the indirect expenses are closed to_____
a) Profit and loss A/c
b) Cash Flow Statement
c) Balance sheet
d) Trading A/c
Answer :  A

Question :  The Sales Return Book always has______balance
a) Debit
b) Either debit or credit
c) Credit
d) None of the options
Answer :  A

Question :  Journal proper includes entries related to______
a) Sale of asset on credit
b) Sale of asset for cash
c) Sale of goods for cash
d) Sale of goods on credit
Answer :  A

Question :  Purchase of machinery on credit is recorded in_______
a) Journal proper
b) Sales Book
c) Cash book
d) Purchase book
Answer :  A

Question :  The weekly or monthly total of purchase book is recorded to the__________
a) Debit side of Purchase Account
b) Credit side of Purchase Book
c) Credit side of Cash book
d) Debit side of Cash book.
Answer :  A

Question :  A credit balance in Bank column of cash book indicates_______
a) Overdraft
b) Expense.
c) Loss
d) Profit
Answer :  A

Question :  The balance in Petty Cash Book is______
a) An asset
b) An expense
c) A liability
d) A profit
Answer :  A

Question :  Cash Book cannot have negative balance, i.e., payments cannot be______Cash in hand?
a) More than
b) Twice
c) Equal to
d) Less than
Answer :  A

Question :  Name an asset which is also a liability?
a) Cash at bank
b) Cash in hand
c) Furniture
d) Machinery
Answer :  A

Question :  The bad debts written off as bad, if recovered subsequently, should be credited to______
a) Bad debt recovered A/c
b) Cash A/c
c) Bad Debt A/c
d) Debtors A/c
Answer :  A

Question :  Which of the following account will be credited on giving cash donations?
a) Cash A/c
b) Purchases A/c
c) Bank A/c
d) Donation A/c
Answer :  A

Question :  A compound Journal entry_____
a) Has equal debits and credits
b) Only credit balances
c) None of the options
d) Only credit balances
Answer :  A

Question :  In Journal Proper, only_____discount is recorded.
a) Cash
b) Trade
c) None of the options
d) Both Cash and Trade
Answer :  A

Question :  A ledger is prepared from____
a) Journal
b) None of the options
c) Transactions
d) Events
Answer :  A

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

Question :   X commenced business on 1st April, 2013 with a capital of Rs. 6,00,000. On 31st March, 2014 his assets were worth Rs. 8,00,000 and liabilities Rs. 50,000. Find out his closing capital.   
a) Rs. 7,50,000.
b) Rs. 2,00,000.
c) Rs. 5,50,000.
d) None of these.
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 these.
Answer  :  B

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  :  A

Question :  Purchase of furniture on credit means   
a) Decrease in asset and increase in liability.
b) Increase in asset and increase in liability.
c) Increase in asset and decrease in liability.
d) Decrease in asset and decrease in liability.
Answer  :  B

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

Question :  Which accounting equation is incorrect out of the following?  
a) Liabilities = Assets - Capital.
b) Assets = Liabilities - Capital.
c) Capital = Assets - Liabilities.
d) Assets = Liabilities + Capital.
Answer  :  B

Question :  The liabilities of a firm are Rs. 3,000; the capital of the proprietor is Rs. 7,000. The total assets are:  
a) Rs. 7,000.
b) Rs. 10,000.
c) Rs. 4,000.
d) None of these.
Answer  :  A

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 these.
Answer  :  A

Question :  Decrease in one liability may lead to  
a) Decrease in an asset.
b) Increase in another liability.
c) Either a) or b).
d) None of these.
Answer  :  A

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  :  A

Question : Credit Note is prepared
a) when credit is given to the account.
b) when debit is given to the account.
c) both a) and b).
d) None of the above.
Answer :  A

Question : When goods are sold on credit the seller prepares
a) Cash Memo.
b) Invoice.
c) Accounting Voucher.
d) None of these.
Answer :  B

Question : Transfer vouchers are prepared to record
a) cash transactions.
b) non-cash transactions.
c) a) and b).
d) None of these.
Answer : B

Question : Cash memo is prepared when goods are sold
a) on credit.
b) on cash.
c) Both a) and b).
d) None of these.
Answer : B

Question : Cash memo is a source voucher for purchaser of goods
a) for cash purchases.
b) for credit purchases,
c) for credit sales.
d) for cash sales.
Answer :  A

Question : Invoice is a source voucher for seller of goods
a) for cash sales.
b) for credit purchases,
c) for credit sales.
d) for cash purchases.
Answer : C

Question : When goods are purchased against cash, the purchaser will get
a) Cash Memo.
b) Invoice.
c) Accounting Voucher.
d) None of these.
Answer :  A

Question : Invoice is a source voucher for purchaser of goods
a) for cash purchases.
b) for cash sales.
c) for credit sales.
d) for credit purchases.
Answer :  D

Question : Accounting voucher is prepared from
a) source voucher.
b) Journal entry.
c) Both a) and b).
d) None of these.
Answer :  A

Question : If purchaser of goods returns them, he will prepare
a) Credit Note.
b) Debit Note.
(e) Both a) and b).
d) None of these.
Answer : B

Question : Invoice is a source voucher for
a) Cash purchases.
b) Credit purchases.
c) both a) and b).
d) neither a) nor b).
Answer : B

Question Books of Account are written on the basis of
a) Source Document.
b) Accounting Vouchers.
c) Both a) and b).
d) None of these.
Answer : B

Question : Credit purchase of furniture is recorded through
a) Transfer voucher.
b) Cash voucher,
c) Debit voucher.
d) Credit voucher.
Answer : A

Question : If seller receives back the goods sold, he will prepare
a) Credit Note.
b) Debit Note.
c) Both a) and b).
d) None of these.
Answer : A

Question : Voucher is prepared for
a) Cash and Credit purchases.
b) Cash and Credit sales,
c) Cash received and paid.
d) All of these.
Answer : D

Question : Cash Memo is
a) a source voucher.
b) an accounting voucher,
c) neither a) nor b).
d) both a) and b).
Answer : A

Question. Which of the following equation’s correct?
a) Assets = Liabilities – Capital
b) Assets = Capital – Liabilities
c) Assets = Liabilities + Capital
d) Assets = External Equities
Answer : C

Question. The liabilities of a firm are Rs. 60,000 and the capital of the proprietor is Rs. 40,000. The total assets are:
a) 60,000
b) 1,00,000
c) 20,000
d) 40,000
Answer : B

Question. Debit Means
a) an increase in asset
b) a decrease in asset
c) an increase in liability
d) an increase in capital
Answer : A

Question. The following account has a debit balance
a) Creditor’s A/c
b) Capital A/c
c) Building A/c
d) Loan A/c
Answer : C

Question. The process of recording a business transaction in the journal is called
a) Costing
b) Balancing
c) Posting
d) Journalising
Answer : D