CBSE Questions for Class 11 Commerce Accountancy Recording Of Transactions - I Quiz 10 - MCQExams.com

Payment of salary is recorded by ____________.
  • Debiting salary a/c; crediting cash a/c
  • Debiting cash a/c; crediting salary a/c
  • Debiting employee a/c; crediting cash a/c
  • Debiting employee a/c; crediting salary a/c
When it is necessary to analyse transactions in terms of debit and credit ?
  • While Journalizing.
  • While Posting.
  • At both times.
  • None of the above.
Purchases of goods on credit from A is recorded as __________.
  • Debit purchases a/c; credit cash a/c
  • Debit A a/c; credit purchases a/c
  • Debit purchases a/c; credit A a/c
  • Debit A a/c; credit stock a/c
Rent paid to landlord should be credited to _________ account.
  • Landlords 
  • Rent 
  • Cash 
  • Expense 
A credit sale of goods to Shivendra should be debited to ______ account.
  • Sales 
  • Goods 
  • Shivendra's 
  • Purchase 
Cash discount allowed to a debtor should be credited to the _________ account.
  • Discount 
  • Customer's 
  • Sales 
  • Cash 
In case of a debt becoming bad, the amount should be credited to _______________.
  • Debtors Accounts
  • Bad debts A/c
  • Sales A/c
  • None of these
The transferring of debit and credit items from journal to the respective accounts in the ledger is called as ___________.
  • Ledger
  • Posting
  • Forward journal
  • None of the above
The rent paid to land lord is to be credited to ___________.
  • Land lord account
  • Rent account
  • Cash account
  • Tenant account
Debit - all expenses and losses 
Credit - all gains and income is the rule for_______________.
  • Real account
  • Personal account
  • Nominal account
  • None of these
Sales made by Mahesh for cash should be debited to _____________.
  • Cash A/c
  • Mahesh A/c
  • Sales A/c
  • Sales return A/c
Which of the followings is not a book of original entry?
  • Cash book
  • Ledger
  • Sales journal
  • Bill receivable book
While preparing the annual financial statements, the balance of rent account should be treated as the balance of a __________.
  • Personal Account
  • Nominal Account
  • Real Account
  • Deferred Expenditure Account
The cash discount allowed to a debtor should be credited to __________.
  • Discount account
  • Customer account
  • Sales account
  • None of these
To determine the details of a specific transaction, one should refer to ____________.
  • Ledger
  • Book of original entry
  • Relevant vouchers
  • None of the above
The debit balance of a personal account shows the ______________.
  • Amount of credit sales
  • Cash in hand
  • Amount payable
  • Amount receivable
Debit may signify __________.
  • Increase in asset account
  • Decrease in asset account
  • Increase in a liability account
  • Increase in capital account
Sundry Income Account is _______.
  • Real
  • Personal
  • Nominal
  • All of the above
Amrit Nath Ashram has earned but not received the interest of Rs.$$25,000$$/- on securities. The journal entry is _____________.
  • Interest Accured A/c Dr.$$25000$$
    To Interest A/c $$25000$$
  • Interest A/c Dr.$$25,000$$
    To Interest
    Accured A/c $$25000$$
  • Securities A/c Dr. $$25000$$
    To Interest A/c $$25000$$
  • None of the above
Credit may signify _________________.
  • Decrease in assets
  • Increase in liability
  • Increase in capital account
  • All of these
Which of the following transactions results in increase in shareholders' equity and decrease in liabilities?
  • Issued shares for the purchase of land and building.
  • Issued shares for acquisition of another company.
  • Shares issued in payment of bills payable.
  • Issued bonus shares.
Outstanding expenses Account is ___________.
  • Real
  • Nominal
  • Personal
  • All of the above
Deposits with MSEB ___________.
  • Real
  • Nominal
  • Personal
  • All of the above
Ledger Folio and index is necessary for ledger.
  • True
  • False
Fixed Deposit Account is _________.
  • Real
  • Personal
  • Nominal
  • All of the above
Left hand side of an account is ________.
  • Debit side
  • Credit side
  • Income side
  • Expenses side
Drawings Account is ___________.
  • Real
  • Personal
  • Nominal
  • All of the above
Sub-division of journal is known as _______ book.
  • Subsidiary
  • Purchase return
  • Purchase
  • Journal proper
Transaction related to assets are recorded in __________.
  • Real account
  • Personal account
  • Nominal account
  • None of the above
Wages paid for installation of asset should be debited ___________  A/c.
  • Wages
  • Asset
  • Cash
  • Suspense
Loss by Fire Account __________.
  • Real
  • Personal
  • Nominal
  • All of the above
An analysis of the effects of a transaction on the accounts, usually accompanied by explanation is known as ________.
  • Recording
  • Journalising
  • Journal entry
  • Posting
Accrued/prepaid/received in advance/outstanding a/c are known as __________.
  • Nominal a/c
  • Real a/c
  • Representative personal a/c
  • Tangible a/c
A cash disbursement may result in ___________.
  • Reduction in liability
  • Increase in other asset
  • Reduction in one asset and increase in other asset
  • All of the above
When a debtor is realized which account is credited _________.
  • cash a/c
  • miscellaneous income a/c
  • debtor a/c
  • profit and loss a/c
Increase in owner's equity can be caused by ____________________.
  • profit from a successful business operation
  • fresh investment made by the owner
  • bringing in new asset in the business
  • all of the above
Cash withdrawal by the proprietor would cause _______.
  • Cash in hand to decrease
  • External liability to decrease
  • Total liabilities to increase
  • Total assets remain unchanged
________ represents the residual interest in the organisation's assets after deducting liabilities.
  • Cash profit
  • Liabilities
  • Net worth
  • Owner's equity
A cash receipt may cause ___________.
  • Increase in liability
  • Decrease in other asset
  • Reduction in one asset and increase in other asset
  • All of the above
Accounts are broadly classified into ______.
  • Real
  • Personal
  • Nominal
  • All of the above
ABC Ltd. acquired a new Machine for Rs. $$500,000$$ on $$1$$st April $$2013$$ and spent Rs. $$10,000$$ on its installation and Rs. $$5,000$$ on transportation. The useful life of the machine is estimated $$10$$ years. The firm provides depreciation using sum of years digit method. what is the depreciation for the year $$2013-14$$.
  • Rs. $$93,636$$
  • Rs. $$89,100$$
  • Rs. $$75,908$$
  • Rs. $$1,01,300$$
Journal is also called ______.
  • Subsidiary book
  • Daily event book
  • History sheet
  • Log book
For real a/c debit means _____.
  • Addition
  • Reduction
  • Consumption
  • Exhaustion
Stock valued at Rs. $$20,000$$ sold for cash at Rs. $$24,000$$ would cause ____________________.
  • decrease in current assets by Rs. $$20,000$$
  • Increase in owners equity and total assets by Rs. $$4,000$$
  • increase in debtors by Rs. $$24,000$$
  • none of these
ABC Ltd. acquired a new Machine for Rs. $$500,000$$ on $$1$$st April $$2012$$ and spent Rs. $$10,000$$ on its installation and Rs. $$5,000$$ on transportation. The useful life of the machine is estimated $$10$$ years. The firm provides depreciation using sum of years digit method. what is the depreciation for the year $$2013-14$$.
  • Rs. $$93,636$$
  • Rs. $$89,100$$
  • Rs. $$84,272$$
  • Rs. $$91,300$$
Received Rs 1100 from M/s Manoj against the outstanding debt of Rs 1100 due from him. The nature of entry to record this transaction is _______.
  • Compound entry
  • Simple entry
  • Contra entry
  • Complex
Which of these are the advantages of the subsidiary books?
  • Division of work
  • Specialization and efficiency
  • Saving of time
  • All the three
Goods worth Rs.2000 distributed as free sample is treated as _______.
  • Sales
  • Purchase return
  • Sales Promotion Expenses
  • Business Loss
Another term used for recording a business transaction is ___________.
  • Journalizing
  • Vouching
  • Ledger posting
  • Consolidation
Journalising process is in __________.
  • Analytical manner
  • Summarized manner
  • Chronological order
  • None of the above.
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers