CBSE Class 11 Accountancy Journal And Ledger Worksheet

1. Book of Original Entry (Journal) Journal is the book of original entry or prime entry. Journal is a book in which transactions are recorded in the order in which they occur, i.e. in chronological order. The process of recording a transaction in a journal is called journalising. An entry made in the journal is called a journal entry.

2. Format of a Journal
JOURNAL
Date        Particulars     LF    Amt (Dr)   Amt (Cr)
(1)            (2)                (3)     (4)            (5)

3. Simple and Compound Journal Entries The journal entry is the basic record of a business transaction. It may be simple or compound.
(i) Simple Entry When only two accounts are involved to record a transaction, it is called a simple journal entry. In this, one account is debited and another account is credited with an equal amount.
(ii) Compound Entry When the number of accounts to be debited or credited is more than one, entry made for recording the transaction is called compound journal entry. In other words, it involves multiple accounts.

4. Recording in Journal Entries are recorded in journal on the basis of source documents following the rules of debit and credit.

5. Ledger A ledger is the principal book of accounting system which contains all the accounts (assets, liabilities, revenue and expenses). All the transactions recorded in the books of original entry are transferred to ledger.
Ledger is called the principal book/book of final entry as trial balance is prepared from it and thereafter financial statements are prepared. It is the ultimate destination of all the transactions.
The book which contains a classified and permanent record of all the business transactions is called a ledger.

6. Format of Ledger
Dr Name of the Account Cr
Date Particulars JF Amt (`) Date Particulars JF Amt (`)

7. Posting the Entries The process of transferring the entries from the books of original entry (journal) to the ledger is referred to as posting. Posting is the grouping of all the transactions, in respect to a particular account at one place which facilitates meaningful conclusion.

8. Process of Posting from Journal to Ledger Posting of account, debited in a journal entry
Step 1. Locate in the ledger, the account to be debited as entered in the journal.
Step 2. Enter the date of transaction in the date column on the debit side.
Step 3. In the ‘particulars’ column write the name of the account through which it has been debited in the journal.
Step 4. Enter the page number of the journal in the folio column and in the journal write the page number of the ledger on which a particular account appears.
Step 5. Enter the relevant amount in the amount column on the debit side.

Note It may be noted, when posting an account, credited in a journal entry or for making the entry on the credit side of that account to be credited, the same procedure is to be followed.

9. Opening Entry An opening entry is a journal entry by the means of which the various balances (i.e. assets, liabilities and capital) appearing in the balance sheet of previous accounting period are brought forward in the books of current accounting period. While passing an opening entry, all assets account are debited and all liabilities account are credited.

10. Posting an Opening Entry While passing an opening entry all assets account are debited and all liabilities account are credited.
So, in case of an account which has been debited, it will be written on the debit side as ‘To Balance b/d’ and in case of an account which has been credited it will be written on the credit side as ‘By Balance b/d’.

11. Balancing of Accounts Balancing of an account is the process of ascertaining the difference between the total of debits and total of credits appearing in an account.
In other words, balancing of an account suggest totalling the two sides of an account and finding the difference in total of the two sides and writing on the side whose total is short. The difference of amount will be recorded as ‘Balance c/d’. It may be a debit balance or a credit balance or a nil balance depending upon whether the debit or the credit side total is higher or are equal. Balancing of an account is necessary to ascertain the net effect of all the transactions posted to that account during a given period. Generally, personal and real accounts are balanced and nominal accounts are closed by transferring it to trading and profit and loss account as they are not balanced.

12. Procedure for Balancing a Ledger Account The basic procedure for balancing a ledger accounts is as follows
Step 1. Total both the sides of a ledger account (i.e. the debit amount and credit amount column) and find out the difference in the totals.
Step 2. If the debit side total is more than the credit side total, write the difference on the credit side as ‘By Balance c/d’. If the credit side total is more than the debit side total, write the difference on the debit side as ‘To Balance c/d’.
Step 3. Make the total of the debit side equal to the credit side and draw a double line after the totals.
Step 4. Bring forward the balance on the next date. If debit balance, write on the debit side as ‘To Balance b/d’. If credit balance, write on the credit side as ‘By balance b/d’.

CBSE Class 11 Accountancy Source Documents MCQs

Question. Opening entry is _________.
a) The first entry of new page.
b) A journal entry which was passed during the year.
c) This carries all the balances of assets and liabilities of previous year to current year.
d) None of them.
Answer. C

Question. The rule of personal account is __________.
a) Debit what comes in, credit what goes out.
b) Debit expenses and losses, credit gain and income.
c) Debit the receiver, credit the giver.
d) None of them
Answer. C

Question. Shyam is a registered dealer of Kerala purchasing goods from Mohan of Telangana would be an ______________.
a) Interstate transaction
b) Intrastate transaction
c) Export
d) None of them
Answer. A

Question. Accrued commission will be__________.
a) Debited
b) Credited
c) None of them
Answer. A

Question. Prepaid expense is __________.
a) A liability
b) An asset
c) An income
d) An expense
Answer. B

Question. Premium paid on the life insurance policy of the proprietor will be debited to __________.
a) Insurance premium.
b) Drawings
c) Cash account
d) None of them.
Answer. B

Question. Interest on loan a/c dr. To loan a/c (______________)
The correct narration for the above journal entry is:
a) Interest on loan paid.
b) Interest on loan received.
c) Interest on loan due.
d) None of them.
Answer. C

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 these
Answer. B

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

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 these
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 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 above
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. 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

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. ……… is a brief explanation of the transaction with necessary details.
(a) Date Column
(b) Credit Column
(c) Narration
(d) Ledger Folio
Answer. C

Question. Identify the account to be debited and respectively for the following transaction.Raag commenced business with cash Rs 1,00,000.
(a) Cash account debited with Rs 1,00,000 and Raag account credited with Rs 1,00,000.
(b) Cash account debited with Rs 1,00,000 and Capital account credited with Rs 1,00,000.
(c) Capital account debited with Rs 1,00,000 and Cash account credited with Rs 1,00,000.
(d) None of the above
 Answer. B

Question. While passing a journal entry, the accounts of all losses and expenses are credited.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. B

Question. When goods are purchased, Goods A/c is debited.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. B

Question. Purchases Return Account is a nominal account and is credited while passing a journal entry.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. A

Question. What will be the journal entry if goods of Rs 20,000 are purchased for cash from Surbhi?
(a) Goods A/c Dr 20,000 To Surbhi A/c 20,000
(b) Purchases A/c Dr 20,000 To Surbhi A/c 20,000
(c) Purchases A/c Dr 20,000 To Cash A/c 20,000
(d) None of the above
Answer. C

Question. If goods of Rs 20,000 are purchased on credit from Rati, the
(a) Purchases account is debited with Rs 20,000 and Rati account is credited with Rs 20,000.
(b) Purchases account is debited with Rs 20,000 and Cash account is credited with Rs 20,000.
(c) Rati account is debited with Rs 20,000 and Purchases account is credited with Rs 20,000.
(d) None of the above
Answer. A

Question. What is the journal entry if goods of Rs 20,000 are sold for cash to B?
(a) Cash A/c Dr 20,000 To B A/c 20,000
(b) Cash A/c Dr 20,000 To Sales A/c 20,000
(c) Cash A/c Dr 20,000 To Goods A/c 20,000
(d) None of the above
Answer. B

Question. What is the journal entry if goods of Rs 20,000 are sold on credit to S?
(a) S A/c Dr 20,000
To Sales A/c 20,000
(b) Cash A/c Dr 20,000
To Sales A/c 20,000
(c) S A/c Dr 20,000
To Goods A/c 20,000
(d) None of the above
Answer. A

Question. Reem purchased furniture worth Rs 50,000 for cash from M/s XYZ Ltd. The transaction will be shown in the journal as
(a) Furniture A/c Dr 50,000
To XYZ Ltd A/c 50,000
(b) Furniture A/c Dr 50,000
To Cash A/c 50,000
(c) XYZ Ltd A/c Dr 50,000
To Furniture A/c 50,000
(d) None of the above
Answer. B

Question. Agira purchased furniture worth Rs 50,000 on credit from M/s XYZ Ltd.The transaction will be shown in the journal as
(a) Furniture account debited with Rs 50,000 and XYZ Ltd account credited with Rs 20,000.
(b) Furniture account debited with Rs 50,000 and Cash account credited with Rs 20,000.
(c) XYZ Ltd account debited with Rs 50,000 and Furniture account credited with Rs 20,000.
(d) None of the above
Answer. A

Question. Pass journal entry if Plant and Machinery amounting to Rs 2,30,000 purchased by paying Rs 30,000 cash immediately.
(a) Plant and Machinery A/c Dr 2,30,000
To Cash A/c 30,000
To Creditors A/c 2,00,000
(b) Cash A/c Dr 30,000
Creditors A/c Dr 2,00,000
To Plant and Machinery A/c 2,30,000
(c) Plant and Machinery A/c Dr 2,30,000
To Cash A/c 30,000
To Suspense A/c 2,00,000
(d) None of the above
 Answer. A

Question. Pass journal entry if goods costing Rs 50,000 are sold for Rs 70,000.
(a) Cash A/c Dr 50,000
To Sales A/c 50,000
(b) Cash A/c Dr 70,000
To Sales A/c 70,000
(c) Cash A/c Dr 70,000
To Goods A/c 70,000
(d) None of the above
Answer. B

Question. What will be the journal entry if proprietor withdraws Rs 35,000 cash for personal use?
(a) Proprietor A/c Dr 35,000
To Cash A/c 35,000
(b) Cash A/c Dr 35,000
To Drawings A/c 35,000
(c) Drawings A/c Dr 35,000
To Cash A/c 35,000
(d) Cash A/c Dr 35,000
To Proprietor A/c 35,000
Answer. C

Question. If a business pays insurance by cheque of Rs 2,500, which of the following account will be debited?
(a) Insurance account
(b) Cheque account
(c) Cash account
(d) Bank account
Answer. A

Question. What will be the journal entry if salary of Rs 5,500 is outstanding?
(a) Outstanding Salary A/c Dr 5,500
To Salary A/c 5,500
(b) Salary A/c Dr 5,500
To Outstanding Salary A/c 5,500
(c) Salary A/c Dr 5,500
To Cash A/c 5,500
(d) None of the above
Answer. B

Question. …………….. is an allowance given by the seller of goods out of selling price.
(a) Credit
(b) Bad debt
(c) Discount
(d) None of these
Answer. C

CBSE Class 11 Accountancy Chapter 3 Source Documents Fill in The Blanks

Question. Reduction in the value of goods sold, allowed by the seller for the poor quality of goods sold, is called – – – –.
Answer. Rebate

Question. Outstanding expenses is a – – – – for the firm.
Answer. liability

Question. Accrued income is an – – – – for the firm.
Answer. asset

Question. Paid income tax amounting to Rs.20,000 through cheque. – – – – A/c will be debited.
Answer. Drawings

Question. Wages paid for the erection of machinery will be debited to – – – –A/c.
Answer. machinery

Question. Sometimes we receive an income but a portion of this income relates to the next accounting period. Such portion of the income is called – – – – Income.
Answer. Unearned

Question. Bought goods from Sonam for Rs.60,000 for cash and paid carriage charges Rs.1000. Purchases account will be debited with Rs.– – – –.
Answer. 60,000

Question. Received a cheque for Rs.98,000 from Gopal in full settlement of his account of Rs.1,00,000. Gopal’s A/c will be credited with Rs. – – – –.
Answer. 1,00,000

Question. An entry passed in journal to record the closing balances of the previous year to the current year is called – – – – entry.
Answer. opening

Question. Vipro Ltd. Purchased 50 computers from HCL and is allowed a discount of Rs.10,000 for purchase thereof. Discount allowed by HCL is – – – – discount.
Answer. trade

CBSE Class 11 Accountancy Chapter 3 Source Documents True And False

1. Journalising is the process in which we record the transactions in a ledger. (False)
2. When more than one account is debited or credited in a transaction, it is termed as a simple journal entry. (False)
3. Salary outstanding is an example of a nominal A/c. (False)
4.Trial Balance is a summary of all debit & credit balances of accounts on a particular day in a firm. (True)
5. While passing an opening entry, all assets are debited individually & liabilities are individually credited. (True)
6. Cash Discount allowed to a customer on sale of goods is credited to Discount A/c. (False)
7. Prepaid Rent is a Representative Personal A/c. (True)
8. An account is said to have a debit balance if total of debit side is more than credit side. (True)
9. Purchased goods for Rs. 20,000 in cash at 5% cash discount. Discount A/c will be debited by Rs.1,000. (False)
10.Journal is the basis for recording of transactions in Ledger. (True)

CBSE Class 11 Accountancy Chapter 3 Source Documents Match The Following 

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                                           List –II
1. The process of recording          a. Posting
entries in the ledger is called
2. the process of recording           b. Journalising
entries in the books of original
entry is called
Answer.s 1- a, 2 –b

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                                            List –II
1. The book that is called               a. Ledger
the book of final entry is
2. Ledger folio is recorded in         b. Journal
Answer. 1 –a, 2 –b

Question. Match items in List I with terms in List II using the codes given below the lists-
         List –I                                               List –II
1. For the firm interest on capital            a. Income
given to the partner is treated as
2. For the firm interest on drawing          b. Expense
taken from the partner is treated as
                                                                c. Asset
Answer. 1 – b, 2 -a

Question. Match items in List I with terms in List II using the codes given below the lists-
         List –I                                                        List –II
1. Salary paid to Mohan will be debited to        a. Cash account
2. Amount paid to Mohan will be debited to      b. Mohan account
c. Salary account
Answer. 1 –c, 2 -a

CBSE Class 11 Accountancy Chapter 3 Source Documents Assertion-Reasoning MCQs

Direction There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) (b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A) (c) Assertion (A) is true, but Reason (R) is false (d) Assertion (A) is false, but Reason (R) is true

Question. Assertion (A) Journal is a book of original entry.
Reason (R) The transactions are first recorded in a journal in a chronological order.
Answer. A

Question. Assertion (A) The amount not recovered from debtors is debited to bad debts account.
Reason (R) As per the traditional rule of accounting, losses are debited.
Answer. A

Question. Assertion (A) If goods are lost due to theft, loss by theft account is debited.
Reason (R) As per the rules of accounting, all gains are credited.
Answer. B

Question. Assertion (A) Income which is earned but not received is credited to accrued income account.
Reason (R) As per the rules of accounting, all incomes are credited.
Answer. D

CBSE Class 11 Accountancy Chapter 3 Source Documents Case Based MCQs

Direction Read the following case study and answer questions on the basis of the same.

Insha is a student of Class 11 Commerce. She is studying the subject of accountancy for the first time. After studying the basics of accounting, their teacher recently taught them about the books of original entry. The teacher also taught them posting entries to a ledger. The teacher again reiterated that the books of original entry and ledger are fundamental for maintaining records in any business. After teaching them the chapter thoroughly, an objective question test is being held for the students. You are required to answer the following questions in the test on Insha’s behalf.

Question. When an entry is made in journal
(a) assets are listed first.
(b) accounts to be debited listed first.
(c) accounts to be credited listed first.
(d) accounts may be listed in any order.
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. If a transaction is properly analysed and recorded
(a) only two accounts will be used to record the transaction.
(b) one accountwill be used to record transaction.
(c) one account balance will increase and another will decrease.
(d) total amount debited will equals total amount credited.
Answer. D

Question. In a journal, transactions are recorded in ………… order.
(a) chronological
(b) anachronistic
(c) random
(d) None of these
Answer. A

Question. Ledger is the book for ……… record.
(a) chronological
(b) analytical
(c) evidence
(d) None of these
Answer. B

QI) Journalise the following transactions:

1) Sold goods for Rs.10,000.

2) Sold goods to Sachin for Rs.20,000.

3) Sold goods to Amit for Rs.30,000 and payment made by cheque.

4) Sold goods to Atul of the list price of Rs.30,000 at a trade discount of 10%.

5) Sold goods to Sunil of the list price of Rs.1,25,000 less 20% trade discount and received a cheque under a cash discount of 2%.

6) Sold goods to Sahil of the list price of Rs.1,25,000 less 20% trade discount and 2% cash discount and paid 40% by cheque.

7) Sold goods costing Rs.40,000 to Anita for cash at a profit of 25% on cost less 20% trade discount and charged 8% sales tax and paid cartage Rs.100 (not to be charged from customer)

8) Sold goods costing Rs.40,000 to Anil at a profit of 20% on sales less 20% trade discount and charged 8% sales tax and paid cartage Rs.100(to be charged from customer)

9) Sachin rejected and returned 10% of goods.

10) Bought goods of the list price of Rs.2,50,000 from Mohan less 20% trade discount and 2% cash discount and paid 40% by cheque.

11) Purchased machinery from Rajiv for Rs.5,000 and paid him by means of a bank draft purchased from bank for Rs.5020.

12) Paid rent of building Rs.12,000. Half of the building is used by the proprietor for residential use.

13) Paid life insurance premium Rs.2,000.

14) Charge depreciation on furniture @10% p.a. for one month(furniture Rs.12,000).

15) Provide interest on capital (Rs.60,000) at 15% p.a. for six months.

16) Charge interest on drawings (Rs.10,000) at 18% p.a. for six months.

17) Brokerage due to us Rs.500.

18) Proprietor withdrew for private use Rs.1,000 from office and Rs.800 from bank.

19) Purchased a cow for business Rs.20,000.

20) Paid Rs.250 in cash as wages on installation of a machinery.

CBSE Class 11 Accountancy Source Documents MCQs

Question. Fill in the following assuming GST rate is 12%.
Purchases a/c dr. _______
Input IGST a/c dr. 30,000
To shyam’s a/c _________
(purchased goods from Shyam)
a) Purchases 60,000, Shyam 1,20,000
b) Purchases 2,50,000, Shyam 2,80,000
c) Purchases 2,80,000, Shyam 2,50,000
Answer. B

Question. Goods costing Rs.40,000 sold at a profit of 20% on sales @ 10% trade discount. Sales will be credited by Rs.__________.
a) 50,000
b) 40,000
c) 45,000
d) 43,200
Answer. C

Question. Purchased goods list price of 80,000 @ 10% trade discount and 2% cash discount.25% of amount paid immediately. The amount posted to cash account will be __________.
a) 16,740
b) 17,640
c) 18,640
d) None of them
Answer. B

Question. Received a cheque from Mohan but not deposited into the bank will be debited to______________.
a) Bank a/c
b) Cash a/c
c) Cheque in hand a/c
d) None of them
Answer. C

Question. All the ____________ entries are ignored while posting from the cash book to the ledger.
a) Cash
b) Bank
c) Contra
d) journal
Answer. C

Question. There was a loss by fire of Rs.10,000 but company approved the claim of only Rs, 8,000,this difference of Rs. 2,000 will be debited to_________.
a) Cash account
b) Insurance claim account
c) Profit and loss account
d) Loss by fire account
Answer. C

Question. Cash received from Roli as rent will be credited to ____________account.
a) Roli
b) Rent account
c) Cash account
d) None of them.
Answer. B

Question. By what amount will be purchases account debited with, if Riya buys goods at the list price of Rs 1,00,000 from Mary less 20% trade discount and 2% cash discount and paid 50% by cheque?
(a) Rs 1,00,000
(b) Rs 80,000
(c) Rs 78,000
(d) None of these
Answer. B

Question. By what amount will be bank account debited with, if goods are sold to Sid at the list price of Rs 4,00,000 less 20% trade discount and 2% cash discount and paid 50% by cheque?
(a) Rs 3,20,000
(b) Rs 1,60,000
(c) Rs 1,56,800
(d) None of these
Answer. C

Question. What is the net amount if a trader sells goods of the list price of Rs 20,000 at 10% trade discount and 2% cash discount?
(a) Rs 20,000
(b) Rs 18,000
(c) Rs 17,640
(d) None of these
Answer. C

Question. Rebate is a reduction in the value of goods sold allowed by the seller.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. A

Question. Rebate is usually allowed for
(a) inferior quality of goods sold
(b) goods sold being not as per specification
(c) Both (a) and (b)
(d) None of the above
Answer. C

Question. Which of the following journal entry will be passed by a seller for allowing rebate on goods sold?
(a) Rebate Allowed A/c Dr
To Purchaser A/c
(b) Purchaser A/c Dr
To Rebate Allowed A/c
(c) Seller A/c Dr
To Rebate Received A/c
(d) Seller A/c Dr
To Rebate Received A/c
Answer. A

Question. On 10th June, goods worth Rs 30,000 were sold to H by IIA Ltd. On 12th June, H returned goods worth Rs 2,000.
On 14th June, H pays Rs 27,500 in full settlement of his account.
What journal entry will be passed in the books of IIA Ltd on 14th June?
(a) Cash A/c Dr 27,500
To H 27,500
(b) Cash A/c Dr 27,500
Discount Allowed A/c Dr 500
To H 28,000
(c) H A/c Dr 27,500
To Cash 27,500
(d) None of the above
Answer. B

Question. What is the journal entry passed for inter-state purchase of goods on which GST is levied?
(a) Purchases A/c Dr
Input CGST A/c Dr
Input SGST A/c Dr
To Cash
(b) Purchases A/c Dr
Input IGST A/c Dr
To Cash
(c) Purchases A/c Dr
Input SGST A/c Dr
To Cash
(d) None of the above
Answer. B

Question. Mir bought goods for Rs 10,000 plus CGST and SGST @ 9% each. What will be the journal entry for the above transaction?
(a) Purchases A/c Dr 10,000
Input CGST A/c Dr 900
Input SGST A/c Dr 900
To Cash A/c 11,800
(b) Purchases A/c Dr 10,000
To Cash A/c 10,000
(c) Cash A/c Dr 11,800
To Purchases A/c 10,000
To Input CGST A/c 900
To Input SGST A/c 900
(d) None of the above
Answer. A

Question. What is the journal entry passed for return of intra-state purchase of goods on which GST is levied?
(a) Cash A/c Dr
To Purchases Return A/c
To Input CGST A/c
To Input SGST A/c
(b) Purchases Return A/c Dr
Input IGST A/c Dr
To Cash
(c) Purchases Return A/c Dr
Input SGST A/c Dr
To Cash
(d) None of the above
Answer. A

Question. If goods are sold to S for Rs 3,000 plus CGST and SGST @ 9% each, then what will be the journal entry passed?
(a) S A/c Dr 3,000
To Sales A/c 3,000
(b) S A/c Dr 3,540
To Sales A/c 3,000
To Output CGST A/c 270
To Output SGST A/c 270
(c) S A/c Dr 3,540
To Sales A/c 3,000
To Output GST A/c 540
(d) None of the above
Answer. B

Question. If KYU Ltd sells good to Kia for Rs 20,000 plus CGST and SGST @ 9% each and she pays the due amount immediately and avails cash discount @ 2%, then what will be the journal entry passed in the books of KYU Ltd?
(a) Bank A/c Dr 20,000
To Sales A/c 20,000
(b) Bank A/c Dr 23,138
Discount Allowed A/c Dr 472
To Sales A/c 20,000
To Output CGST A/c 1,800
To Output SGST A/c 1,800
(c) Bank A/c Dr 23,600
To Sales A/c 20,000
To Output GST A/c 3,600
(d) None of the above
Answer. B

Question. Ram withdrew Rs 50,000 from bank for private use. Which account will be debited while passing journal entry?
(a) Ram
(b) Cash
(c) Drawings
(d) None of these
Answer. C

Question. What will be the correct journal entry for the following? Placed in fixed deposit at bank by transfer from current account Rs 2,500.
(a) Fixed Deposit A/c Dr 2,500
To Bank A/c 2,500
(b) Fixed Deposit A/c Dr 2,500
To Current A/c 2,500
(c) Current A/c Dr 2,500
To Fixed Deposit A/c 2,500
(d) None of the above 
Answer. A

Question. If V’s cheque of Rs 20,000 is dishonoured and returned, how will this be recorded in journal?
(a) V’s account debited with Rs 20,000 and Cheque account credited with Rs 20,000.
(b) V’s account debited with Rs 20,000 and Bank account credited with Rs 20,000.
(c) Bank account debited with Rs 20,000 and V’s account credited with Rs 20,000.
(d) None of the above.
Answer. B

Question. What will be the correct journal entry for the following?
Purchased machinery from Sunil for
Rs 20,000 and paid him by means of a
bank draft for Rs 20,020.
(a) Machinery A/c Dr 20,000
To Bank A/c 20,000
(b) Machinery A/c Dr 20,020
To Bank A/c 20,020
(c) Machinery A/c Dr 20,000
Draft Commission A/c Dr 20
To Bank A/c 20,020
(d) None of the above
Answer. C

Question. When the goods are sold to a customer on credit, and if the amount becomes irrecoverable due to his insolvency or for some other reason, the amount not recovered is called ……… .
(a) Doubtful debts
(b) Provision for doubtful debts
(c) Recoverable debt
(d) Bad debts
Answer. D

Question. Bad debt account is a nominal account.
(a) True
(b) False
(c) Can’t say
(d) Partially true
Answer. A

Question. What will be the correct journal entry for the following? R became bankrupt and was able to pay only 60% of the amount of Rs 1,00,000 due from him.
(a) Cash A/c Dr 60,000
To R A/c 60,000
(b) Cash A/c Dr 60,000
Bad Debts A/c Dr 40,000
To R A/c 1,00,000
(c) Cash A/c Dr 40,000
Bad Debts A/c Dr 60,000
To R A/c 1,00,000
(d) None of the above
Answer. B

Question. If an old amount written-off as bad debt is recovered, then while passing a journal entry.
(a) Cash account is debited and Bad debts recovered account is credited.
(b) Cash account is debited and Bad debts account is credited.
(c) Cash account is debited and Provision for doubtful debts account is credited.
(d) None of the above
Answer. A

Question. If goods are withdrawn by proprietor for personal use, then while passing a journal entry.
(a) Purchases account is debited and Drawings account is credited.
(b) Proprietor account is debited and Purchases account is credited.
(c) Drawings account is debited and Purchases account is credited.
(d) None of the above
Answer. C

Question. If goods worth Rs 25,000 are distributed as charity, then while passing a journal entry.
(a) Purchases account is debited with Rs 25,000 and Charity account is credited with Rs 25,000.
(b) Charity account is debited with Rs 25,000 and Purchases account is credited with Rs 25,000.
(c) Drawings account is debited with Rs 25,000 and Purchases account is credited with Rs 25,000.
(d) None of the above
Answer. B

Question. If goods worth Rs 30,000 were lost in a fire, then while passing a journal entry which of the following account is debited?
(a) Loss by fire account
(b) Drawings account
(c) Sales account
(d) Purchases account
Answer. A

Question. If K pays sundry expenses for postage and conveyance of Rs 200, then while passing a journal entry which of the following account is debited?
(a) Sundry Expenses account
(b) Postage and Conveyance account
(c) Postage account
(d) Conveyance account
Answer. A

CBSE Class 11 Accountancy Chapter 3 Source Documents Fill in The Blanks

Question. Raghav, a customer, to whom goods were sold, was allowed rebate of Rs.2000 because they were of poor quality. These goods were sold charging CGST and SGST @ 9% each. Raghav A/c will be credited with Rs. – – – –.
Answer. 2,360

Question. Following balances appeared in the books of Rishabh on 1 January 2019: Furniture Rs. 40,000; Creditors Rs. 30,000. Cash Rs.6,000; Bank Rs. 10,000; Debtors Rs.45,000; Bills Payable Rs. 5,000; Stock Rs. 44,000; Capital account will be credited with Rs. – – – –.
Answer. 1,10,000

Question. Purchased goods from Vijay of Rs. 40,000 plus IGST @ 18% at 10% trade discount and 3% cash discount. Half the amount paid at the time of purchase. Purchases A/c will be debited with Rs. – – – –.
Answer. 36,000

Question. Ashutosh purchased a machine for Rs.2,40,000 for business. He gave a cheque of Rs. 2,40,000 from his savings account. – – – – A/c will be credited in the journal entry.
Answer. capital

Question. Mukesh sold 100 tables to Suresh at the rate of Rs.5000 each less 25% trade discount plus IGST at the rate of 12% and 2% cash discount if Suresh paid the amount in 14 days of sale. Suresh paid the amount within 14 days. Sales A/c will be credited with Rs. – – – –.
Answer. 3,75,000

Question. Bought computer for Rs.10,000 plus CGST and SGST @ 6% each against cheque. – – – – A/c will be credited with Rs. – – – –.
Answer. Bank ,11,200

Question. Bought machinery for Rs. 28,000 and paid freight Rs. 1,000, carriage Rs. 200 and installation charges Rs. 800. In journal entry Machinery A/ will be debited with Rs. – – – –.
Answer. 30,000

Question. Opening cash balance Rs.60,000. Cash paid to creditors Rs.15,000. Wages paid Rs.3000. Cash account has a – – – – balance of Rs. – – – –.
Answer. Debit ,42,000

CBSE Class 11 Accountancy Chapter 3 Source Documents True And False

1. Purchased goods costing Rs.10,000 at 10% above the cost price,10% trade discount & 5% cash discount. CGST & SGST Isis levied @6% each. Amount of cash discount will be Rs. 450. (False)
2. Goods costing Rs.20,000 sold at 10% more than the invoice price & 5% trade discount. CGST & SGST is levied at 6% each. The amount of CGST will be Rs 1,254. (True)

3. Mr. X of Delhi sold goods costing Rs. 50,000 to Mr. Y of Punjab. GST is levied @12%.Output CGST A/c will be credited with Rs. 6,500. (False)
4. Rahul purchased goods from Zee Ltd. Costing Rs. 50,000 & paid Rs.20,000 in cash immediately. Afterwards, he was declared insolvent & only 50 paisa in a rupee could be recovered from his estate. Bad Debts A/c will be debited by Rs. 30,000. (False)
5. Commission received Rs. 20,000 out of which Rs. 8,000 relates to next year. Rs. 8,000 will be credited to Accrued Commission A/c. (False)
6. Rent paid Rs.5,000 per month, two months’ rent is paid in advance. Prepaid Rent A/c will be debited by Rs.10,000. (True)
7. Purchased goods costing Rs. 10,000 for cash at 6% CGST & SGST each. Cash A/c will be credited by Rs. 11,200. (True)
8. Borrowed a loan of Rs.5,00,000 from Bank @6% interest. Three months interest is outstanding. Outstanding interest A/c will be credited by Rs. 7,500. (True)
9. In case of trade discount, cash discount and GST on purchase of goods, trade discount is deducted first & than GST is levied. (True)

CBSE Class 11 Accountancy Chapter 3 Source Documents Match The Following 

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                                                                      List –II  
1. Rent outstanding is an example of     a. Natural personal account
2. Debtors is an example of                   b. Artificial personal account
                                                               c. Representative personal account
Answer. 1 –c, 2 - a

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                                                        List –II 
1. If x has withdrawn some goods for      a. Real account
his personal use, which type of
account would be debited
2. if x has withdrawn cash from              b. personal account
bank which type of account would
be debited
                                                               c. nominal account
Answer. 1-b, 2- a

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                                                          List –II
1. X bought a machine for rupees             a.108000
1,00,000 and paid rupees 5000 as
installation charges and rupees 3000
for assembling it, what would be the
amount debited to machine account
2. In the above example cash A/c             b. 100000
would be credited with
                                                                  c. 105000
                                                                  d. None of the above
Answer. 1-b, 2- a

Question. Match items in List I with terms in List II using the codes given below the lists-
List –I                                                                        List –II
1.capital invested in business is                        a. Rs 1,00,000
rupees 1,00,000 rate of interest
on capital is 10% .interest on capital
account for 3 months will be debited by
2. In the above entry of interest on                    b.Rs2500
capital ,cash account would be credited with
                                                                          c. None of the above
Answer. 1 –b, 2- c

CBSE Class 11 Accountancy Chapter 3 Source Documents Case Based MCQs

Direction Read the following case study and answer questions on the basis of the same.

Rajesh started a business with cash Rs 1,00,000 and a building valued at Rs 5,00,000. He purchased goods amounting to Rs 2,00,000 out of which goods of Rs 1,80,000 were purchased on credit from Smith. He sold goods to Anil of Rs 44,000. Anil returned goods worth Rs 4,000. He purchased goods of Rs 63,000 from Karan but returned goods of Rs 3,000 on finding them defective. He purchased goods of Rs 2,000 for cash. He paid for cartage of Rs 100 and interest on loan amounting to Rs 1,000.

Question. Which is the first book of account that Rajesh will prepare?
(a) Purchase book
(b) Sale book
(c) Journal
(d) Ledger
Answer. C

Question. What is the amount of capital introduced by Rajesh?
(a) Rs 1,00,000
(b) Rs 5,00,000
(c) Rs 6,00,000
(d) Zero
Answer. C

Question. What will be the journal entry passed for goods purchased from Smith?
(a) Purchases A/c Dr 2,00,000
To Cash A/c 20,000
To Smith 1,80,000
(b) Purchases A/c Dr 2,00,000
To Cash A/c 2,00,000
(c) Purchases A/c Dr 2,00,000
To Smith 2,00,000
(d) None of the above
Answer. A

Question. Which account will be credited when goods are returned to Karan?
(a) Karan
(b) Purchases Return
(c) Purchases
(d) None of the above
Answer. B

Question. For recording the payment of Cartage of Rs 100.
(a) Cartage account will be debited and Cash account will be credited.
(b) Cash account will be debited and Cartage account will be credited.
(c) Cartage account will be debited and Purchases account will be credited.
(d) None of the above
Answer. A