# Unseen Passage

For Class 4 to Class 12

# Recording of Transactions I MCQ Class 11 Accountancy

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

D

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

B

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

C

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.

C

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

C

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

C

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

A

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.

A

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.

A

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

B

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

C

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

D

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

D

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

C

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

A

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

D

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

D

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

C

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

A

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

C

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

D

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

A

Question. What is equity?
(c) Owner’s claim on total assets
(d) Owner’s claim on total liabilities

C

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

C

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

D

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

B

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

B

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

B

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

A

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

D

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

C

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

B

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

B

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

B

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

A

(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

B

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

B

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

D

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

D

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

D

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

A

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

B

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

D

Question. All the indirect expenses are closed to
(a) Profit and loss A/c
(b) Cash Flow Statement
(c) Balance sheet

A

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

A

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

B

Fill in The Blanks :

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

Supporting

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

Assets

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

Entries

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

Contra

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

Folioing

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.

Rs 48,000

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

Rs 1,62,000

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 —————-.

Rs 25,000

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

Rs 45,000

Question. Credit Vouchers are prepared to record cash ___________.

Receipts

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

Invoice

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

Pay in Slip

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 ————-.

Investment/shares Account, Rs 5,050

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.

9,000, prepaid expenses

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 —————-.

Rs 9,600

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

Rs 40,000

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

Source documents

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

Credit note

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

Debit Note

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

Ganesh

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 ———.

Rs 24,000

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

1500

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

Transfer Voucher

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

Transfer Voucher

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 __________.

Receipt

True/ False

Question. Outstanding Expenses are Representative Personal Account.

True

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

True

Question. Machinery is a Real Account.

True

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

True

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

True

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

False

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.

False

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.

True

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

True

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

True

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

False

Question. Income tax paid treated as Drawings.

True

Question. Capital is a Personal Account.

True

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.

False

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.

False

Question. Cash is a Real Account.

True

Question. Increase in capital due to payment of Rent.

False

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.

True

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.

False

Match The Following

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

1-B, 2-A

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

1-B,2-C

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

1-C, 2-D

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

1& 2- A

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

1-B,2-A

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

1-C,2-D

Determine the missing amount on the basis of accounting equation

Question.

50,000, 50,000

Question.

28,000, 1,80,000

Question.

Nil, 1,12,000

Question.

2,00,000, 24,000

Question.

3,00,000, 18,000

Question.