Please refer to Chapter 4 Recording of Transactions II 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 II and then attempt the following objective questions.

MCQ Questions Class 11 Accountancy Chapter 4 Recording of Transactions II

Recording of Transactions II 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. Which of the following statement about an account is true?
(a) The right side of an account is the debit, or increase side.
(b) An account is an individual accounting record of increases and decreases in specific assets, liability, and stockholders equity items.
(c) There are separate accounts for specific assets and liabilities but only one account for stockholders’ equity items.
(d) The left side of an account is the credit, or decrease, side.

Question. Cash purchase of goods is recorded in-
(a) Purchase book
(b) Sales book
(c) Cash – book
(d) None of these.

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. Which of the following are part of the recording process?
(a) Analyzing transactions
(b) Entering Transactions in a journal
(c) Posting journal entries
(d) All of the above

Question. The right side of a t-account is
(a) the balance of an account.
(b) the debit side.
(c) the credit side.
(d) blank.

Question. Cash book does not record transaction of:
(a) Cash nature
(b) Credit nature
(c) Cash and credit nature
(d) None of these

Question. Which is not contra entry in the cash book
(a) Cash deposited into bank
(b) Cash withdrawn from bank
(c) Cash withdrawn from bank for personal use
(d) None of these

Question. Powers Corporation received a cash advance of $500 from a customer. As a result of this event,
(a)  assets increased by $500 (Debited).
(b) equity increased by $500 (Credited).
(c) liabilities decreased by $500 (Debited).
(d) Both assets and equity increased by $500 (Debited and Credited).

Question. Debits
(a) increase both assets and liabilities.
(b) decrease both assets and liabilities.
(c) increase assets and decrease liabilities.
(d) decrease assets and increase liabilities.

Question. A debit is NOT the normal balance for which account listed below?
(a) Revenue
(b) Cash
(c) Accounts Receivable
(d) Dividends

Question. Which of the following describes the classification and normal balance of the Unearned Rent Revenue account?
(a) Asset, debit
(b) Liability, credit
(c) Revenues, credit
(d) Expense, debit

Question. Which accounts normally have credit balances?
(a) Revenues, liabilities, and dividends
(b) Revenues, liabilities, and assets
(c) Revenues, liabilities, and retained earnings
(d) Revenues, liabilities, and expenses

Question. Which of the following accounts is increased with a debit?
(a) Land
(b) Service Revenue
(c) Interest Payable
(d) Common Stock

Question. When a company performs a service but has not yet received payment, it
(a) debits Service Revenue and credits Accounts Receivable.
(b) debits Accounts Receivable and credits Service Revenue.
(c) debits Service Revenue and credits Accounts Payable.
(d) makes no entry until cash is received.

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

Question. The first book of original entry is-
(a) Journal
(b) Ledger
(c) Trial Balance
(d)None of these.

Question. In the first month of operations, the total of the debit entries to the Cash account amounted to $3,000 and the total of the credit entries to the Cash account amounted to $1,800. The Cash account  has a
(a) $1,800 credit balance.
(b) $3,000 debit balance.
(c) $1,200 debit balance.
(d) $1,800 credit balance.

Question. At November 1, 20XX, Johnson Inc. had an Accounts Receivable balance of $200,000. During the month, the company made sales on account of $300,000. In addition, Johnson  nc. collected $400,000 from customers that owed them money. At November 30, 2018, the Accounts Receivable balance is
(a) $100,000 debit
(b) $100,000 credit
(c) $500,000 debit
(d) $300,000 credit

Question. Goods purchased on cash are recorded in the
(a) Purchases (journal) book
(b) Sales (journal) book
(c) Cash book
(d) Purchases return (journal) book

Question. The first book of original entry is-
(a) Journal
(b) Ledger
(c) Trial Balance
(d)None of these.

Question. Which of the following steps in the accounting process is done after analyzing business transactions?
(a) Preparing the financial statements
(b) Preparing a trial balance
(c) Entering transactions in a journal
(d) Posting journal entries

Question. On July 7, 20XX, Shireman Enterprises received cash $1,400 for services rendered. The entry to record this transaction will include
(a) a debit to Service Revenue of $1,400.
(b) a credit to Accounts Receivable of $1,400.
(c) a debit to Cash of $1,400.
(d) a credit to Accounts Payable of $1,400.

Question. The primary purpose of the trial balance is to
(a) disclose the complete effect of a transaction in one place.
(b) make sure a journal entry is not posted twice.
(c) transfer journal entries to the ledger accounts.
(d) prove the equality of the debit and credit amounts after posting.

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

Question. The periodic total of purchases return journal is posted to :
(a) Purchase account
(b) Profit and loss account
(c) Purchase returns account
(d) Furniture account

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 accounts in the ledger 

Question. Cash purchase of goods is recorded in-
(a) Purchase book
(b) Sales book
(c) Cash – book
(d) None of these.

Question. Cash book does not record transaction of:
(a) Cash nature
(b) Credit nature
(c) Cash and credit nature
(d) None of these

Question. Cash book does not record transactions of
(a) Cash nature
(b) Credit nature 
(c) Cash and credit nature
(d) None of these

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

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

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

Fill In The Blanks :

Question. In purchase book, goods purchased on ……….. are recorded. 

Question. Cash book is a ……….. journal. 

Question. Assets sold on credit are entered in ……….. 

Question. Credit balance shown by a bank column in cash book is ……….. 

Question. The amount paid to the petty cashier at the beginning of a period is known as ……….. amount. 

Question. Total of the debit side of cash book is ……….. than the credit side. 

Question. Double column cash book records transactions related to ……….. and ……….. 

Question. In Journal proper, only ……….. discount is recorded. 

Question. Return of goods purchased on credit to the suppliers will be entered in ……….. journal 

Question. Cash book does not record the ……….. transactions. 

Question. In double column cash book ……….. transactions are also recorded. 

Question. Credit note is sent to …………….

Question. The discount which is offered to increase sale and attract customers is called?

Question. Which discount is recorded in purchase and sales book?

Question. The amount which cannot be recovered from debtors is called ……………..

Question. Under how many heads, the accounts have been categorised for the purpose of recording transactions in Journal?

Question. Such transactions for which no separate subsidiary books are maintained are recorded in ……………..

Question. Sales account always shows …………….. balance.

Question. M/S Rena Furniture sold furniture amounting to Rs.1,00,000 to M/S Neha . Trade discount applicable @10%, CGST and SGST @ 6% each. Half payment received in cash and availed cash discount of 10%. Amount to be entered in Sales book is Rs.__________ and Journal Proper Rs.____________. 

Question. Received commission Rs.2,000 plus CGST and SGST @ 6% each. Rs. ________ is debited to cash book. 

Question. Credit purchases of goods are recorded in _______________. 

Question. Received from Astha cash Rs.2,000 and a cheque amount Rs.4,000. Discount allowed is Rs.400. ________________ and ____________ amount is to be entered in cash and bank column of cash book. 

Question. Mr XYZ purchased goods from ABC electric Limited; 5 dozen bulbs @ 100 each plus IGST @ 12%; 10 power plugs @ 80 each plus IGST @ 12% the purchase book is to be debited by rupees _______________. 

Question. A two- column cash book is based on __________ aspect of accounting. 

Question. Rajesh who owed Rs.5,000 became insolvent and 40p in a rupee was realised. Amount to be posted in cash book is ______________. 

Question. If cheque is deposited in bank on the same day, the amount is entered in the _____________ column on the __________ side of double column cash book. 

Question. Balance of the cash column is Rs.18,174 after retaining Rs.2000 in cash ___________________ amount is to be deposited with the bank. 

Question. Cash and bank balance shows a debit of rupees 10,000 and 15,000 respectively; rupees 8000 is withdrawn from the bank for office use. Cash and bank balance after this transaction is ____________ and _________________.

Question. Paying advance in the beginning and re-imbursing the amount spent is _____________ system of cash book. 

Question. Provision for doubtful debt created @5% on debtors will be recorded in ______________ book.

Question. On 1st May 2019 balance of cash column of cash book rupees 12000 after receiving rupees 2,000 from Anil, giving cheque of rupees 3200 to Sunil and payment of wages rupees 500. Balance of cash will be _________ debit. 

Question. If the bank allows the firm to withdraw more amount than the balance, the amount withdrawn is known as _____________. 

Question. A wholesaler sold 60 units of a good @ Rs.100 each less trade discount @10%. The retailer returned 10 units of these goods. ___________ amount should be recorded in the sales book. 

Question. Expenses involving small amounts are recorded in __________ book. 

Question. Accounting for partial recovery from Mr Aof an amount of Rs.2,000; which was earlier written off as bad debts will be recorded in _______________ book. 

 True / False :

Question. Purchase book records cash as well as credit purchases.     

Question. The total of sale return book is posted to profit and loss account.   

Question. The entries which represent debit or credit of cash discount against the bank account or vice versa are contra entries.     

Question. Purchase return book is also known as return outwards book.     

Question. The closing entry for discount received Rs.1,000 Commission received Rs.4,000 and interest on investment Rs.1,200 will be passed in journal proper amounted to Rs.6,800 in profit and loss account.     

Question. Kartikey who owed us Rs. 80,000 became insolvent and 20 paise in a rupee was realized from his estate. Amount received from him is Rs.10,000.   

Question. The petty cash account is not opened in ledger.     

Question. The transactions that cannot be recorded in any special journal are recorded in journal proper.     

Question. The payment of a crossed cheque can be made directly to the party on the counter.   

Question. Tarun, a debtor has become insolvent and 40 p in a rupee was realized from him Cash column of cash book should be debited with Rs.54,000.     

Question. The balance of the petty cash book is always an income for the firm.   

Question. Sita has made full and final payment to Ram by cheque. Discount allowed by Ram is Rs.300. It will be recorded in sale return book.   

Question. The bank column of cash book always show a debit balance.   

Question. Cash withdrawn by the proprietor for paying his son’s tuition fees is Rs.3,500. This will be recorded as an expense on the payment side of cash book.   

Question. Cash purchase Rs.8,000, Crdit Sales Rs.2,000, Credit purchases Rs.5,000, Cash discount allowed @4%. In this case each discount will be recorded in debit side of cash book.     

Question. Single column cash book can have credit balance.     

Match The Following

Question. Match with the suitable option

I Allowance allowed to Ms. Amit Traders on account of mistake in invoice	a) Purchases Book
II Allowance claimed from Mr. Z on account in invoice	b) Sales Returns Book
	c) Journal Proper
	d) Purchases Return Book

Question. Match with the suitable option

I paid rent Rs. 10,000 CGST and SGST charged @ 9% each	a) Rs. 2,240
II gave cheque for cash purchase of Rs, 2,000 including IGST @12%	b) Rs. 2,040
	c) Rs. 11,800
	d) Rs. 8,800

Question. Match with the suitable option

I Goods purchased and paid by cheques Rs. 20,000 cash discount Rs. 472 CGST and SGST @ 6% each	a) Rs. 29,182
II Received cheque from Ram Rs. 2,000	b) Rs. 2,000
	c) No entry
	d) Rs. 21,928

Question. Match with the correct entry :

I Interest on Capital	a) Miscellaneous Entries
II Discount allowed and received	b) Closing Entries
III Salary A/c outstanding	c) Adjustment Entries
	d) Opening Entries

Question. Match with the suitable option

I Intra- State Purchases	a) Input CGST & SGST is Cr.
II Inter- state purchases	b) Input IGST is Dr.
	c) Input CGST & SGST is Dr.
	d) Input IGST Cr.

Question. Match with the suitable option

I Cash Balance Rs. 50,000 out of this deposited into bank Rs. 12,000 a demand draft issued by bank Rs. 3,000 in favour of Mr. Rahul . Closing balance of cash is	a) Rs. 38,000
II Bank Overdraft Rs. 65,000 directly deposited by our customer in bank Rs. 30,000. Cheque received and endorsed amount to Rs. 5,000 bank balance is	b) Rs. 41,000
	c) Rs. 35,000 Cr.
	d) Rs. 35,000 Dr.

Question. Match with the suitable option

I Withdrawn from bank Rs 28,000 for purchase of office equipment purchased for Rs. 17,000, balance taken by proprietor is	a) Rs. 28,000
II Cashed a cheque for Rs. 25,000 and paid salaries Rs. 13,000. Cash balance will be	b) Rs. 11,000
	c) Nil
	d) Rs. 2,000

Question. Match with the suitable option

I Returned goods to Gopal for Rs. 50,000, goods we re not according to the sample apply CSGT & SGST @ 6% each	a) Rs. 11,200
II Allowance claimed from Prasad on account of mistake in invoice of Rs. 10,000 apply CSGT & SGST @ 6% each	b) Rs. 20,160
	c) Rs. 56,000

Question. Match with the suitable option

I Ajit furniture co. Returned 2 broken Almirahs @ Rs. 11,000 each Less 15% IGST @12%	a) Rs. 22,400
II Returned to Saxena & co. 5 tables @ Rs. 1,600 each Less : 10% CGST & SGST @ 6% each	b) Rs. 20,944
	c) Rs. 8640
	d) Rs. 8064

Question. Match with the suitable option; Calculate amount to be recorded in purchase book in the following cases:

I Purchased goods for cash Rs.50,000	a) Rs.56,000
II Purchased from Kriti Rs.56,000 including IGST @12%	b) Rs.62,720
	c) Nil
	d) Rs.50,000

Question. Match with the suitable option

I. Mr XYZ purchased goods from ABC electric Limited; 10 dozen bulbs @ 100 each plus IGST @ 12%; 20 power plugs @ 80 each plus IGST @ 12% the purchase book is to be debited by rupees ___.	a) Rs. 1,456
II. On 1st May 2019 balance of cash column of cash book rupees 24000 after receiving rupees 4,000 from Anil, giving cheque of rupees 6,400 to Sunil andpayment of wages rupees 1000. Balance of cash will be _.	b) Rs. 2,912
	c) Rs.23,000
	d) Rs.23,500

Question. Match with the suitable option

I Total of Purchases return A/c	a) Debit
II Total of Purchases A/c	b) Credit
	c) Either debit or credit
	d) Neither debit nor credit

Question. Match with the suitable option

I Goods sold to Mr. X for Rs. 10,000. Cash discount allowed @5% amount received from Mr. X.	a) Rs. 8,500
II Discounted a bill of exchange at 2% through bank Rs. 8,000. Bank column in cash book is debited by	b) Rs. 9,500
	c) Rs. 8,740
	d) Rs. 7,840

Question. Match with the suitable option

I A cheque of Rs. 20,000 received from Mr. Jone is dishonoured, it will be recorded on___ side of __ column	a) Debit , Cash
II Salary paid to Mr Ramnarayan will be recorded in ___ side of __ Column	b) Credit , bank
	c) Credit , Cash
	d) Debit, Bank

Question. Match with the suitable option

I Goods lost by fire Rs. 85,000. Claim of 40% received. Insurance company will be debited by __ and entry will be recorded in __.	a) Rs. 25,000 , Cash
II Debtor of Rs. 50,000 became insolvent 50% is recovered from his estate	b) Rs. 50,000 , cash
	c) Rs. 34,000 Journal proper
	d) Rs.85,000 Journal Proper

Question. Match with the suitable option

I While recording transactions in the bank column of the cash book , the rule is followed	a) Real account
II Discount allowed to a customer the rule of __ is followed	b) Nominal account
	c) Personal account

Question. Cash A/c

Particulars	Amount	Particulars	Amount
To capital A/c	1,00,000	By purchase A/c.	10,000
To sales A/c	50,000	By balance c/d.	1,40,000
Total	1,50,000	Total	1,50,000

List –I	List –II
I Entry related to sales will be	a) Cash A/c. Dr. To sales A/c
II Entry related to purchase will be	b) Sales A/c Dr. To cash A/c
	c) Purchase A/c. Dr To cash A/c
	d) Cash A/c Dr. To sales A/c

Question. The capital invested in business is rupees 5,00,000
Purchased goods worth rupees 50,000
Purchase goods on credit rupees 20,000
Wages paid rupees 2000
Purchase return rupees 5000

List –I	List –II
I The closing balance of cash account will be	a) 4,23,000
II The closing balance of purchase account will be	b) 70,000
	c) 4,48,000
	d) 65000

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

List –I	List –II
I Goods costing Rs 50000 given away to an orphanage (selling price is rupees 60000) the entry of above transaction is	a) Charity account Dr. 50000 To purchase A/c. 50,000
II goods distributed as free sample of Rs ,60,000	b) Advertisement A/c. Dr. 60,000 To purchase A /c. 60,000
	c) Charity A/c. Dr. 60,000 To purchase A/c. 60,000

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

List –I	List –II
I capital invested in business is rupees 1,00,000 rate of interest on capital is 10% .interest on capital account for 3 months will be debited by	a) Rs 1,00,000
II In the above entry of interest on capital ,cash account would be credited with	b) Rs2500
	c) None of the above

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