MCQs For NCERT Class 11 Chapter 3 Recording of Transactions – I

MCQs Class 11

Please refer to the MCQ Questions for Class 11 Accountancy Chapter 3 Recording of Transactions – I with Answers. The following Recording of Transactions – I Class 11 Accountancy MCQ Questions has been designed based on the latest syllabus and examination pattern for Class 11. Our experts have designed MCQ Questions for Class 11 Accountancy with Answers for all chapters in your NCERT Class 11 Accountancy book.

Recording of Transactions – I Class 11 MCQ Questions with Answers

See below Recording of Transactions – I Class 11 Accountancy MCQ Questions, solve the questions and compare your answers with the solutions provided below.

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. All temporary accounts appears in the balance sheet.
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Answer

B

Question. ……… is the process of transferring the entries from the books of original entry  (journal) to the ledger.
(a) Recording
(b) Drafting
(c) Posting
(d) None of the above 

Answer

C

Question. Identify the account to be debited and credited 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. 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. How is interest on capital treated in journal? 
(a) Interest on capital account is debited and Bank account is credited.
(b) Interest on capital account is debited and Capital account is credited.
(c) Interest on capital account is debited and  Drawings account is credited.
(d) None of the above 

Answer

B

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

Answer

A

Question. What is the journal entry if goods of ? 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. Pass journal entry if goods costing ? 50,000 are sold for ? 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 is the journal entry if goods of  ? 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. All ledger accounts can be classified in which of the following groups?
(a) Incomes and expenses
(b) Permanent accounts and temporary accounts
(c) Losses and gains
(d) Assets and liabilities 

Answer

B

Question. In a ledger, all permanent accounts are balanced and carried forward to the next accounting period.
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Answer

A

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

Answer

A

Question. Pass journal entry if Plant and Machinery amounting to ? 2,30,000 purchased by paying ? 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. What will be the journal entry if proprietor withdraws ? 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. What will be the journal entry if salary of ? 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. 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

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. How is interest on drawings amounting to ? 250 treated in journal?
(a) Interest on drawings account is debited and Drawings account is credited.
(b) Bank account is debited and Interest on drawings account is credited.
(c) Drawings account is debited and Interest on drawings account is credited.
(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. Mir bought goods for ? 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. By what amount will be bank account debited with, if goods are sold to Sid at the list price of ? 4,00,000 less 20% trade discount and 2% cash discount and paid 50% by cheque? 
(a) ? 3,20,000
(b) ? 1,60,000
(c) ? 1,56,800
(d) None of these 

Answer

B

Question. How is accrued income of ? 2,500 treated in journal? 
(a) Accrued income account is debited and Bank account is credited.
(b) Accrued income account is debited and Income account is credited.
(c) Income account is debited and Accrued income account is credited.
(d) None of the above 

Answer

B

Question. A ……… is the principal book of accounting system which contains all the accounts related to assets, liabilities, revenues and expenses.
(a) journal
(b) ledger
(c) purchase book
(d) sales book 

Answer

B

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

Answer

C

Question. If KYU Ltd sells good to Kia for ? 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. Which of the following correctly distinguishes between a ledger and a journal?
(a) The journal is the book of first entry (original entry); the ledger is the book of second entry.
(b) The journal is the book for chronological record; the ledger is the book for analytical record.
(c) The journal, as a book of source entry, gets greater importance as legal evidence than the ledger.
(d) All of the above 

Answer

D

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. Ram withdrew ? 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 ? 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 goods are sold to S for ? 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 V’s cheque of ? 20,000 is dishonoured and returned, how will this be recorded in journal?
(a) V’s account debited with ? 20,000 and Cheque account credited with ? 20,000.
(b) V’s account debited with ? 20,000 and Bank account credited with ? 20,000.
(c) Bank account debited with ? 20,000 and V’s account credited with ? 20,000.
(d) None of the above. 

Answer

B

Question. On 10th June, goods worth ? 30,000 were sold to H by IIA Ltd. On 12th June, H returned goods worth ? 2,000. On 14th June, H pays ? 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. What will be the correct journal entry for the following? Purchased machinery from Sunil for ? 20,000 and paid him by means of a bank draft for ? 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. Closing stock is valued at cost or net realisable value whichever is higher.
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Answer

B

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 a business pays insurance by cheque of ? 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 goods of ? 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. Bad debt account is a nominal account.
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Answer

A

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 worth ? 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 ? 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

Question. How is income received in advance treated in journal?
(a) Concerned income account is debited and Bank account is credited.
(b) Income received in advance account is debited and Concerned income account iscredited. 
(c) Concerned income account is debited and Income received in advance account is credited.
(d) None of the above 

Answer

C

Question. Ledger is called as book of final entry.
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Answer

A

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

Answer

B

Question. Which of the following is the correct adjustment entry for closing stock?
(a) Closing Stock A/c          Dr
             To Trading A/c
(b) Closing Stock A/c         Dr
             To P&L A/c
(c) Trading A/c                    Dr
             To Closing Stock A/c
(d) None of the above 

Answer

A

Question. Which of the following points out utility of a ledger?
(a) To keep a chronological record of all transactions.
(b) The net result of all transactions in respect of a particular account on a given date can be ascertained only from the ledger.
(c) It is bulky.
(d) None of the above 

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. Transaction is the basis of classification of data within the journal while account is the basis of classification of data within the ledger.
(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. …………….. 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

B

Question. The temporary accounts are closed at the end of the accounting period by transferring them to the trading and profit and loss account. 
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Answer

A

Question. A trader sold goods of list price Rs 1,00,000 @ 10% trade discount to Y and Company. He also paid Rs 2,000 as carriage to be charged from Y and Company. The vouchers that will be prepared are
(a) Debit Voucher Rs 2,000 and Transfer voucher Rs 90,000
(b) Credit Voucher Rs 1,00,000 and Transfer Voucher Rs 2.000
(c) Debit voucher Rs 2,000 and Transfer voucher Rs.1,00,000
(d) None of the above.

Answer

A

Question. Accounting voucher must contain the following elements:
(a) It is written on a good quality paper.
(b) Date of the transaction.
(c) The number of the voucher is to be in a serial order.
(d) All of the above.

Answer

D

Question. Goods costing of Rs 90,000sold at a profit of 1/3 of cost, half of the payment received in cash treatment in accounting equation will be:-
(a) Increase in cash by Rs 60,000and decrease in stock by Rs 90,000 and increase in debtor by Rs 60,000 increase in capital by Rs 30,000
(b) Increase in cash by Rs 90,000and decrease in stock by Rs 45,000 and increase in debtor by Rs 90,000
(c) Increase in cash by Rs 45,000and decrease in stock by Rs 60,000 and increase in debtor by Rs 1,20,000
(d) Increase in cash by Rs 1,20,000 and decrease in stock by Rs 90,000 and increase in debtor by Rs 60,000

Answer

A

Question. A document which provides evidence of the transaction is called:
(a) Journal
(b) Voucher
(c) Source document
(d) None of the above

Answer

D

Question. Which of the following is not recorded in a voucher
(a) Date of Transaction
(b) Voucher number
(c) Quantity of goods purchased
(d) Signature of the accountant.

Answer

C

Question. Voucher which records a transaction that entails multiple debits / credits and one credit / debit is called:
(a) Debit voucher
(b) Credit voucher
(c) Compound voucher
(d) Journal voucher

Answer

C

Question. For depositing cash in our Bank account, we require:
(a) Cheque
(b) Voucher
(c) Pass-Book
(d) Pay-in-Slip

Answer

D

Question. While returning the goods to customers, we prepare:
(a) Debit Note
(b) Credit Note
(c) Invoice
(d) Cash-memo

Answer

B

Question. Sold goods costing Rs 75,000 at a profit of 33-1/3 % in cash :-
(a) Increase in cash by Rs 1,00,000 and decrease in stock by Rs 75,000 and increase in capital by Rs 25,000
(b) Increase in cash by Rs 75,000 and decrease in stock by Rs 75,000
(c) Increase in cash by Rs 1,00,000 and increase in stock by Rs 1,00,000
(d) Increase in stock by Rs 75,000 and decrease in cash by Rs 1,00,000

Answer

A

Question. A debtor of Rs 8,000 was declared insolvent and only 40% amount could be realised from his estate as final dividend. To record this transaction , the following vouchers would be prepared
(a) Credit and debit voucher
(b) Credit Voucher and Transfer voucher
(c) Transfer Voucher and Debit Voucher
(d) None of the above

Answer

C

Question. Which of the following evidences is the valid voucher in a business transaction?
(a) Cash-memo
(b) Invoice
(c) Cheques
(d) None of the above

Answer

D

Question. Transaction with one debit and one credit and the accounting vouchers prepared for such transactions is known as:
(a) Compound voucher
(b) Debit voucher
(c) Transfer voucher
(d) Credit voucher

Answer

C

(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) 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

A

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

B

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

D

(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) In accounting equation, each transaction affects both sides of the equation, i.e. Assets side and Liabilities + Capital side.
Reason (R) Assets of a business are purchased either from the funds (capital) supplied by the proprietor or from the funds provided by external parties.

Answer

C

Question. Assertion (A) Auditors can easily vouch the vouchers and use them as documentary evidence in future.
Reason (R) A serial number is put on each voucher and the relative source documents are attached with the voucher. 

Answer

A

Question. Assertion (A) If goods worth ₹ 4,000 are sold for ₹ 3,500 at credit, then assets will decrease, liabilities will be unchanged and capital will decrease.
Reason (R) In case, goods are sold on credit, goods (assets) are decreased and debtors (assets) are increased. Also if goods are sold at a loss, the capital is reduced 

Answer

A

Question. Assertion (A) A business transaction may result in change in either assets, liabilities or capital of firm and as a result, the total assets might not equate with total of liabilities and capital.
Reason (R) If a business transaction results in increase of assets, there will also be a corresponding increase in amount of either capital or liabilities by same amount. 

Answer

C

Fill In The Blanks

Question. A trader purchased 10 chairs @ Rs 500 each, the __________ voucher which is prepared will show Rs _________.

Answer

Debit / Rs 5,000

Question. A trader purchased goods for Rs 60,000 from X and Company. He paid Rs 40,000 in cash. The amount that would be recorded in debit voucher is Rs _________.

Answer

Rs 40,000

Question. An amount of Rs 500 was embezzled by an employee will be recorded on the basis of __________ voucher.

Answer

Debit Voucher

Question. Pulkit commenced business on 1st April, 2018 with capital of Rs 5,00,000. On 31st March, 2019, his assets were worth Rs 8,80,000 and liabilities of Rs 70,000. Closing capital————- and current year profit————— will be. 

Answer

Capital-8, 10,000 and Profit-3, 10,000

Question. In case of Sole proprietorship balance of capital account shown in —————- side of balance sheet.

Answer

Liability

Question. Rishi Commenced business on 1St April, 2018 with Rs 5, 00,000 and long term Loan of Rs 3, 00,000. On 31st March, 2019 his assets were worth Rs 12, 00,000 and then current year Profit will be—————–.

Answer

Rs 4, 00,000

Question. All credit transactions are recorded in the books on the basis of ___________ vouchers. 

Answer

Transfer

Question. Goods costing 48,000 sold at a profit of 25% on sales to Ram, ¾th received in cash and half of remaining received a Post-dated cheque then Debtors of Rs ————-will be increased in accounting equation

Answer

Rs 8,000

Question. If two machinery is purchased for Rs 20,000 and 10,000 respectively, first one is purchased for resale purpose and another one is for production purpose then machinery of Rs ———- will be debited in Machinery Account.

Answer

Rs 10,000

Question. Transactions are recorded in books of original entry on the basis of _______ and not on the basis of __________.

Answer

Vouchers / Source documents

Question. While depositing Cash in Bank, ________ becomes the source document for preparation of Voucher.

Answer

Pay in Slip

Question. The__________ voucher is prepared to record interest on Capital.

Answer

Transfer Voucher

Question. A trader returned goods to his supplier of list price Rs 10,000 that were earlier purchased at 15% trade discount. The ___________ will be prepared by the trader and sent to supplier showing Rs _______ amount.

Answer

Debit note / Rs 8,500

Question. The information required for preparation of return outwards book is available from a _______ voucher.

Answer

Debit/ Credit/ Transfer voucher Transfer Voucher

Question. _________ contains full details of a purchase or sale transaction.

Answer

Source documents / Vouchers Source Documents

Question. Opening capital of Rs 60,000, Closing capital of Rs 40,000, Loss during the year Rs 16,000, Drawings Rs 14,000 then Rs 10,000 will be subtracted to approach opening capital, then Rs 10,000 is known by the name of —————–.

Answer

Additional capital

Question. Purchased goods of Rs 40,000; trade discount 15% and 5% cash discount on purchase price, IGST 12% and Payment made by cheque, bank will be credited by Rs ————. 

Answer

36,380

Question. If Ram started business with cash Rs 50,000, Machinery of Rs 20,000 and Loan from friend of Rs 10,000 @6% p.a. interest, then capital of Ram will be———– . 

Answer

Capital Rs 70,000

Question. ____________ voucher is prepared to record Cash purchases.

Answer

Debit

Question. Raghav , a proprietor purchased Computer for business in Cash. The accounting vouchers prepared for recording will be ____________.

Answer

Debit voucher

True/ False

Question. Interest on Drawings Increase in cash and increase in income.

Answer

False

Question. Transaction with multiple debits and credits are recorded on the basis of Credit vouchers. 

Answer

False

Question. Goods returned by customer costing Rs 1,000 and selling Price Rs 11,00 Decrease in debtor by 1,000 and increase in stock by Rs 1,000.

Answer

False

Question. Bank overdraft is Asset of a Business.

Answer

False

Question. All Assets are debited.

Answer

True

Question. All liabilities are debited.

Answer

False

Question. Goods used in making the Furniture sales price 60000 and profit 20% on cost the cost of goods used is Rs 5, 00, 00.

Answer

True

Question. Goods sold costing Rs 60,000 at a Profit of 25% on sales. The profit is Rs 20,000.

Answer

True

Question. A trader returned goods to his supplier of list price Rs 10,000 that were earlier purchased at 15% trade discount. The debit note will be prepared by the trader and sent to supplier showing Rs 10,000 .

Answer

False

Question. The information required for preparation of return outwards book is available from a Debit/ voucher.

Answer

False

Question. Source Documents contains full details of a purchase or Sale transaction.

Answer

True

Question. Outstanding expenses are personal Account.

Answer

True

Question. Rent paid is a Nominal Account.

Answer

True

Question. Interest Received is a Personal Account.

Answer

False

Question. Drawing is a Nominal Account.

Answer

False

Question. Capital in the beginning is Rs 1,40,000, Creditor at the end Rs 1,00,000 ;Revenue during the period Rs 1,00,000 and expenses during the period are Rs 80000.Owner’s capital at the end Rs 4,20,000.

Answer

False

Question. Purchase Account debited For Purchase of Machinery

Answer

False

Question. Salary Account is a Nominal Account whereas salary outstanding is a personal Account. 

Answer

True

Question. While preparing the accounting vouchers objectivity concept is applied.

Answer

True

Match The Following

Question. Match items in List I with terms in List II using the codes given below the lists

List IList II
1- Outstanding InterestA- Liability
2- Rent from sub-let of houseB-Income
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- DrawingsA- Credit
2- Additional CapitalB- Debit
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- Increase in Assets and Increase inA- Stock purchase on credit
2- Increase in assets and decrease in anotherB- Purchase assets on credit
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- Increase in revenueA- Credit
2- Decrease in expenseB- Debit
Answer

1& 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- Decrease in assets , and decrease in capitalA-Expenses Paid
2- Decrease in assets and decrease in liabilityB- Loan repayment
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- Net worthA- External Liability
2- LoanB- Internal Liability
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- Increase in assets, decrease in another assetsA- Creditors paid in cash
2- Increase in one liability, decrease in anotherB- Goods purchased on credit
3- Decrease in assets, Decrease in liabilityC- Loan converted into capital
D- Cash Received from Debtors
Answer

1-D; 2-C; 3-A

Question. Match items in List I with terms in List II using the codes given below the lists

List I List II
1- Profit on sale of goods of Rs 4,000A- Decrease in stock
2- Salary due to clerk of Rs 10,000B- Increase in Capital
C- Increase in liability
Answer

1-B, 2-C

Question. Match items in List I with terms in List II using the codes given below the lists

List I List II
1- Purchase furniture of Rs 20,000 in cashA- Decrease in cash and decrease in capital
2- Cash withdrew of Rs 10,000 by ProprietorB- Increase in liability, decrease in liability
3- B/P accepted to creditor of Rs 10,000C- Increase in assets, Decrease in assets
Answer

1-C, 2-A, 3-B

Question. Match items in List I with terms in List II using the codes given below the lists

List I List II
1- Increase in one liability, decrease in anotherA- Additional Capital
2- Increase in liability ,decrease in CapitalB- Acceptance given
3- Increase in assets, Increase in CapitalC- Outstanding salary
Answer

1-B, 2-C, 3-A

Question. Match items in List I with terms in List II using the codes given below the lists

List I List II
1- Increase in Capital, decrease in CapitalA- Salary paid
2- Decrease in cash, decrease in CapitalB- Goods sold
3- Increase in cash, deceases in stockC- Interest on Capital
Answer

1-C, 2-A, 3-B

Question. Match items in List I with terms in List II using the codes given below the lists

List I List II
1- Construction of cycle shedA- Revenue Expenditure
2- Temporary Huts made at constructionB- Deferred revenue expenditure
3- Repair of old machineC- Capital Expenditure
Answer

1 & 2-C, 3-A

Question. Identify the nature of following transactions as per modern approach of Journal entries and what is the rule of debit and credit

List I List II
1- Bank Loan takenA- Expenses , Decrease –Cr
2- Purchase ReturnB- Liability, Increase –Cr
3- Rent ReceivableC- Assets , Increase –Dr
Answer

1-B, 2-A, 3-C

Recording of Transactions – I Class 11 MCQ Questions