Please refer to Chapter 2 Recording of Transactions I MCQ Class 11 Accountancy with answers below. These multiple-choice questions have been prepared based on the latest NCERT book for Class 11 Accountancy. Students should refer to MCQ Questions for Class 11 Accountancy with Answers to score more marks in Grade 11 Accountancy exams. Students should read the chapter Recording of Transactions I and then attempt the following objective questions.

MCQ Questions Class 11 Accountancy Chapter 2 Recording of Transactions I

Recording of Transactions I MCQ Class 11 Accountancy provided below covers all important topics given in this chapter. These MCQs will help you to properly prepare for exams.

Question. When a firm maintains a cash book, it need not maintain
(a) Journal Proper
(b) Purchases (journal) book
(c) Sales (journal) book
(d) Bank and cash account in the ledger

Question. Total of these transactions is posted in purchase account:
(a) Purchase of furniture
(b) Cash and credit purchase
(c) Purchases return
(d) Purchase of stationery

Question. Return of goods by a customer is recorded in-
(a) Purchase book
(b) Sales book
(c) Sales return book
(d) Purchase return book.

Question. A cheque on which two parallel lines are drawn in the left top corner is called –
(a) Bearer cheque
(b) Traveller’s cheque
(c) Account payee cheque
(d) None of these.

Question. Balancing of account means
(a) Total of debit side
(b) Total of credit side
(c) Difference in total of debit & credit
(d) None of these

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

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

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.

Question. Which of the following is entered in cash – book-
(a) Only cash transactions
(b) Only credit transactions
(c) Both cash and credit transactions
(d) None of these.

Question. The balance of good’s Account is transferred to-
(a) Profit and loss Account
(b) Trading Account
(c) Balance sheet
(d) None of these.

Question. Every business transaction affects at least ____ accounts
(a) One
(b) Two
(c) Three
(d) Infinite

Question. The Journal entry in which two or more account is debited or credited is referred to as
(a) Journal entry
(b) Multi entry
(c) Additional entry
(d) Compound entry

Question. Accounting provides information on
(a) Cost and income for managers
(b) Company’s tax liability for a particular year
(c) Financial conditions of an institutions
(d) All of the above

Question. The sales income (Credit and Cash) of a business during a given period is called
(a) Transactions
(b) Sales Returns
(c) Turnover
(d) Purchase Returns

Question. In Journal, the business transaction is recorded
(a) Same day
(b) Next day
(c) Once in a week
(d) Once in a month

Question. The following is (are) the type(s) of Journal
(a) Purchase Journal
(b) Sales Journal
(c) Cash Journal
(d) All of the above

Question. Balance sheet is a statement of
(a) Assets
(b) Liabilities
(c) Capital
(d) All of the above

Question. The measure of how efficiently the assets resources are employed by the firm is called
(a) Liquidity ratio
(b) Leverage ratio
(c) Activity ratio
(d) Profitability ratio

Question. Liquid or Quick assets =
(a) Current assets – (Stock + Work in progress)
(b) Current assets + Stock + Work in progress
(c) (Current assets + Stock) + Work in progress
(d) (Current assets + Work in progress) – Stock

Question. The accounting process involves recording
(a) Quantifiable economic event
(b) Non Quantifiable economic event
(c) All of them
(d) None of them

Question. Identify the correct sequence of accounting process
(a) Communicating -> Recording -> Identifying
(b) Recording -> Communicating -> Identifying
(c) Identifying -> Communicating -> Recording
(d) Identifying -> Recording -> Communicating

Question. An asset possesses which of the following?
(a) Future economic benefits for the business
(b) All kinds of benefits for the business
(c) Expenses for the business
(d) Merits & Demerits for the business

Question. What is equity?
(a) Cash from the business
(b) Liability of a business
(c) Owner’s claim on total assets
(d) Owner’s claim on total liabilities

Question. Double entry implies that
(a) Recording entries in Journal
(b) Recording entries in Ledger account
(c) Recording two aspects of every transaction
(d) Recording every transaction in books

Question. Capital increases if ______ increases
(a) Expenses are greater than income
(b) Drawings
(c) Interest on capital
(d) Revenue

Question. Fresh capital introduction will increase
(a) Assets and Liabilities
(b) Assets and Equity
(c) Liabilities and equity and bank balance
(d) Capital and Liabilities

Question. Discount allowed is a kind of deduction from
(a) Account Payable
(b) Account Receivable
(c) Cash account
(d) Discount account

Question. Journals are also referred to as
(a) Book of entries
(b) Book of original entries
(c) T account
(d) Book of economic events

Question. In Accounts Recording Is Made Of:
(a) Only Financial Transactions
(b) Only Non-Financial Transactions
(c) Financial And Non-Financial Transactions
(d) Personal Transactions Of The Proprietor

Question. Which Of The Following Transactions Is Not Of Financial Character?
(a) Purchase Of Asset On Credit
(b) Purchase Of Asset For Cash
(c) Withdrawing Of Money By Proprietor From Business
(d) Strike By Employees

Question. Creditors Of The Business Want To Know :
(a) Profitability Of The Business
(b) What Should Be The Capacity Of The Business To Pay Higher Salaries?
(c) Creditworthiness Of The Business
(d) Employment Opportunities

Question. Which Of The Following Is Not The Limitation Of Accounting?
(a) Based On Accounting Conventions
(b) Evidence In Legal Matters
(c) Incomplete Information
(d) Omission Of Qualitative Information’s

Question. Which Of The Following Is Not A Sub-Field Of Accounting?
(a) Financial Accounting
(b) Book Keeping
(c) Management Accounting
(d) Cost Accounting

Question. Tangible Asset Is:
(a) Goodwill
(b) Motor Vehicle
(c) Patents
(d) Prepaid Expenses

Question. Which Of The Following Is Revenue Expenditure?
(a) Repair Expenses
(b) Building Construction Expenses
(c) Expenses On Purchase Of Machinery
(d) Purchase Of Investments

Question. Trade Discount Is:
(a) Determine The Time Of Receiving Payment.
(b) The Mall Is Allowed To Sell At The Time Of Sale Of Goods.
(c) Allows Both Parties At The Time Of Receiving Payment For The Goods.
(d) Allowed In All Of The Above

Question. Current Liabilities Include:
(a) Debentures
(b) Bills Payable
(c) Long-Term Loans
(d) Capital

Question. Current Liabilities Do Not Include:
(a) Sundry Creditors
(b) Bills Payable
(c) Outstanding Salaries
(d) Prepaid Insurance

Question. Current Liabilities Do Not Include:
(a) Bills Payable
(b) Creditors
(c) Outstanding Expenses
(d) Debentures

Question. Credit purchase of furniture will be recorded through which voucher?
(a) Debit voucher
(b) Credit voucher
(c) Cash voucher
(d) Transfer voucher

Question. A …………. Is sent to a supplier when we return goods.
(a) Debit note
(b) Credit note
(c) Proforma invoice
(d) None of these

Question. Which of the following may have both Dr and Cr balance?
(a) Only cash column of the cash book
(b) Only bank column of the cash book
(c) Both cash and bank column
(d) Neither cash or bank balance

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

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

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

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

Fill in The Blanks :

Question. The accounting voucher are based on …………….

Question. Liabilities = ……………….. – Capital

Question. Transactions, when recorded in journal, are known as ………………

Question. …………. entry is passed in triple column cash – book for depositing cash in bank.

Question. The recording of page number from subsidiary books to Ledger book and vice versa is called ……………..

Question. Goods costing 48,000 sold at a profit of 25% on sales to Ram, ¾th received in cash. Cash Rs————-will be increased in accounting equation.

Question. Goods costing Rs 1,80,000 sold at a loss of 10% on cost, then sales account will be credited of Rs —————-.

Question. If Personal investment of Rs 20,000 sold at a gain of Rs 5,000 and half of the proceed is used to make payment of creditors of business and half of proceed is deposited in current account of business then capital will be credited by Rs —————-.

Question. Purchased goods of Rs 50,000 at 10% trade discount levied 6% CGST, 6% SGST then purchase account will be debited by Rs ————.

Question. Credit Vouchers are prepared to record cash ___________.

Question. _____________ is prepared by the seller of goods when he sells goods on credit. 

Question. While depositing Cash in Bank, the source document to be prepared is ____________. 

Question. 100 shares of Rs 50 each purchased of Colgate limited and paid brokerage 1% on purchase price then ——– account will be debited by Rs ————-.

Question. Insurance premium paid of Rs 36,000 on 1st July, 2018 for one year and account are closed 31st March every year, then amount of Rs ———— will be debited in ————-Account. 

Question. Salary paid to Ghanshyam Rs 8,000 for 10 months and salary of Rs 1600 is outstanding for 2 months. Then salary account will be debited by Rs —————-.

Question. Cash received Rs 36,000 from Vidhi, after deducting 10% cash discount then Vidhi account will be credited Rs —————.

Question. Cash Memos, invoice, bills are examples of ____________.

Question. When goods are received back from customers __________ supporting document is prepared.

Question. When goods are returned to supplier _________ supporting document is prepared.

Question. Received cash of Rs 20,000 from Ramesh on behalf of Ganesh. Then ———— account will be credited.

Question. Life insurance premium of Rs 24,000 on 1stOctober, 2018 for one year and account are closed on 31st March, every year then drawings will be debited by Rs ———.

Question. Ram a sole proprietor withdraw Rs 50,000 during the year, interest on drawings @ 6% p.a. will be of Rs —————– .

Question. To record dishonour of cheque __________ voucher is prepared.

Question. The accounting voucher prepared to record depreciation on Machinery is ____________. 

Question. The source document which becomes an evidence that Cash has been paid to a supplier, from whom goods were purchased on credit earlier, on a specific date is called __________. 

True/ False

Question. Outstanding Expenses are Representative Personal Account.

Question. Repayment of loan Rs 10,000 by cheque is Decrease in bank and decrease in liabilities.

Question. Machinery is a Real Account.

Question. Vouchers are prepared on the basis of Source Documents.

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

Question. The Credit voucher is prepared to record interest on Capital.

Question. Goods distributed as free sample Cost Price Rs 15,000 and sales price 20,000 will Increase in cash by Rs 20,000 and decrease in stock by 15,000.

Question. Sold goods costing Rs 75,000 at 33-1/3% Profit then the impact of this transactions as follows- Increase in cash by 1, 00,000 and decrease in stock by Rs 75,000 and capital by Rs 25,000.

Question. Cost of goods deduct from stock at the time of goods sold

Question. To record dishonour of cheque Transfer voucher is prepared.

Question. Written evidences which become basis of posting business transactions in ledger are Vouchers.

Question. Income tax paid treated as Drawings.

Question. Capital is a Personal Account.

Question. X started business on 1st Jan, 2019 with a capital of Rs 1,00,000 and borrowed Rs 30,000 from his friend. He made a profit of Rs 30,000 during the year and withdrew cash 10,000 while calculating closing capital, borrowed money will considered.

Question. Sold goods for cash costing Rs 20,000 and on credit costing Rs 30,000 at a profit of 25% on Sales price. Then Sales price is Rs 62,500.

Question. Cash is a Real Account.

Question. Increase in capital due to payment of Rent.

Question. Sold goods for cash costing Rs 20,000 and on credit Rs 30,000 at a loss of 10%. Sales price is Rs. 45,000.

Question. The source document which becomes an evidence that Cash has been paid to a supplier, from whom goods were purchased on credit earlier, on a specific date is called Cash Memo. 

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- Goods Costing 75,000 sold at a profit of 20% on cost to Ram. Half Payment is received in cash	A- Cash will decrease by Rs 45,000 and creditors will decrease by Rs 45,000
2- Cash received from Ram is used by Business to pay its creditors of Rs 47,000 on his account.	B- Cash will increase of Rs 45,000 and debtors will increase by Rs 45,000.
	C- Cash will decrease by Rs 45,000 and creditors will decrease by Rs 47,000 and 2,000 will be added in capital

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

List I	List II
1-Goods purchased of Rs 20,000 on credit from Mohan at 20% trade discount at 5 % cash discount. 40% amount Paid in cash then Capital will be increased by Rs –	A- 800
2-Goods sold of Rs 40,000 on credit to Man Mohan at 20% trade discount at 5 % cash discount. 60% amount received in cash then Capital will be decreased by Rs –	B- 320
	C- 960
	D- 1000

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

List I	List II
1-Rent paid Rs 30,000 paid for one year on 1st August 2018 and account are closed on 31st March, 2019 then Capital will decrease by-	A-22,500
2- Rent paid Rs 30,000 paid for one year on 1st January, 2018 and account are closed on 31st March, 2019 the Capital will decrease by Rs-	B- 30,000
	C-15,000
	D- 7,500

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

List I	List II
1-Rent paid Rs 30,000 paid for one year on 1st August 2018 and account are closed on 31st March ,2019 then Capital will decrease by- (House is used wholly by owner)	A- 30,000
2- Rent paid Rs 30,000 paid for one year on 1st January, 2018 and account are closed on 31st March, 2019 the Capital will decrease by Rs–(House is used wholly by owner)	B- 22,500
	C-15,000
	D-7,500

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

List I	List II
1- A customer directly deposited Rs 50,000 in saving bank account of owner in settlement of his dues Rs 55,000, Capital will be effected by Rs –	A-50,000
2- A customer directly deposited Rs 50,000 in saving bank account of owner in of his dues Rs 55,000 Capital will be effected by Rs-	B-55,000
	C- 45,000

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

List I	List II
1-Ram purchased furniture of Rs 20,000 from Mohan on credit and carriage on it of Rs 2,000. Net Assets will increase by Rs-	A- 24,000
2-Furniture is purchased of Rs 20,000 by Ram and carriage on it of Rs 2,000. Liability will increase by Rs-	B- 22,000
	C- 18,000
	D-20,000

Determine the missing amount on the basis of accounting equation

Question.

Assets	Capital	Liability
2,00,000	___________	1,50,000
___________	30,000	20,000

Question.

Closing Capital	Opening Capital	Net profit	Additional Capital	Drawings
___________	1,20,000	40,000	80,000	12,000
3,60,000	1,40,000	___________	60,000	20,000

Question.

Closing Capital	Opening Capital	Net profit /Net Loss	Additional Capital	Drawings
1,20,000	60,000	12,000	48,000	___________
1,72,000	1,20,000	(48,000)	___________	12,000

Question.

Sales	Output IGST @ 12%	Total
___________	___________	2,24,000

Question.

Purchase	Input CGST @6%	Input SGST @6%	Total
___________	18,000	___________	3,36,000

Question.

Purchase	Input CGST @6%	Input SGST @6%	Total
___________	12,00	___________	22,400

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