CBSE Questions for Class 11 Commerce Accountancy Recording Of Transactions - I Quiz 9 - MCQExams.com

An entry which has more than one debit and or credit is called ________.
  • single
  • multiple
  • compound
  • none of these
An example of increase in assets and increase in owner's capital is __________.
  • Goods purchased for cash
  • Goods purchased on credit
  • Goods brought in by owner
  • Capital introduced by owner
Capital is the __________________.
  • excess of external liabilities over the assets
  • excess of assets over the external liabilities
  • excess of external liabilities over fixed assets
  • excess of assets of over internal liabilities
Discount Received is an example of __________.
  • Increase in Asset & Owner's Liability
  • Decrease in Asset & Owner's Liability
  • Increase in Liability & Owner's Liability
  • Decrease in Liability & Increase in Owner's Liability
  • Increase in Liability & Decrease in Owner's Liability
Depreciation written off is an example of ________.
  • Increase in Asset & Owner's Liability
  • Decrease in Asset & Owner's Liability
  • Increase in Liability & Owner's Liability
  • Decrease in Liability & Increase in Owner's Liability
  • Increase in Liability & Decrease in Owner's Liability
Goods distributed as free samples is an example of _________.
  • No change in Owner's Equity
  • Increase in Asset & Owner's Equity
  • Decrease in assets & Owner's Equity
  • None of these
Making Provision for Discount on Debtors is an example of __________.
  • Increase in Asset & Owner's Liability
  • Decrease in Asset & Owner's Liability
  • Increase in Liability & Owner's Liability
  • Decrease in Liability & Increase in Owner's Liability
  • Increase in Liability & Decrease in Owner's Liability
Sale Return Book is a part of _______.
  • Journal.
  • Ledger.
  • Cash Book.
  • none of these.
Making Provision for Doubtful Debts is an example of ___________.
  • Increase in Asset & Owner's Liability
  • Decrease in Asset & Owner's Liability
  • Increase in Liability & Owner's Liability
  • Decrease in Liability & Increase in Owner's Liability
  • Increase in Liability & Decrease in Owner's Liability
Goods destroyed by fire is an example of __________.
  • Decrease in Assets and Owners Equity
  • Increase in Asset & Owner's Equity
  • Decrease in Liability & Owner's Equity
  • None of these
The cost of stock as per physical verification as on 24th March amounted to Rs.2,00,Purchases as per Purchases Book after stock taking till 31st March amounted to Rs.2,00,000 and included the following:
(i) Rs.10,000 for goods received till 23rd March.
(ii) Rs.20,000 for goods received on 1st April. Sales as per Sales Book after stock taking, till 31st March amounted to Rs.2,00,000 and included the following:
(I) Rs.10,000 for goods delivered till 23rd March. (II) Rs.20,000 for goods delivered on 1st April. Goods are sold by the trader at a profit of 25% on Cost. The value of stock as per books Is ____________.
  • Rs.2,40,000
  • Rs.2,38,000
  • Rs.2,36,000
  • Rs.2,34,000
Loan from Mahesh Account is ______________.
  • An Asset Account
  • A Liability Account
  • A Revenue Account
  • An Expense Account
Goods costing Rs.10,000 destroyed as free sample should be credited to 
  • Purchase Account
  • Sales account
  • Cash Account
  • Drawing Account
Goods destroyed by Fire is _______________.
  • An Asset Account
  • A Liability Account
  • A Revenue Account
  • An Expense Account
A cash purchase of goods for proprietor's personal use should be credited to __________________.
  • Purchases Account
  • Sales Account
  • Drawings Account
  • Cash Account
Credit means ________.
  • an increase in asset
  • an increase in liability
  • a decrease in liability
  • a decrease in proprietor's equity
Interest receivable from Mohan ( a Borrower) Account is -
  • An Asset Account
  • A Liability Account
  • A Revenue Account
  • An Expense Account
Debit means ________.
  • An increase in asset
  • An increase in liability
  • A decrease in asset
  • An increase in proprietor's equity.
Journal is a book of __________.
  • original entry
  • all cash transactions
  • secondary entry
  • all non-cash transactions
DEBIT signifies _________________.
  • Increase in assets account
  • Decrease in liability account
  • Decrease in capital account
  • All of the above
Journal and subsidiary books in which transactions and events are first recorded are known as _____________.
  • Secondary books.
  • Memorandum books.
  • Primary books.
  • Principal books.
'A' owned Rs. 25,000 to 'B' 'A' becomes insolvent. 'B' got A's computer valuing Rs. 11,500 in his full settlement journal entry will be passed in the books of 'B'. 
  • Purchase A/c Dr. 11,500

    To A 11,500
  • Computer Dr 11,500

    Bad-debts Dr. 13,500

    To A 25,000
  • Computer A/c Dr. 25,000

    To A 25,000
  • Computer A/c Dr. 11,500

    Purchases A/c Dr. 13,500

    To A 25,000
Discount is allowed by Arun to Varun. Which of the following should be the course of action in books of Arun?
  • Credit Varun A/c and debit discount allowed A/c
  • Debit Varun A/c and credit discount received A/c
  • Credit Arun A/c and debit discount allowed A/c
  • Debit Arun A/c and credit discount received A/c
If wages are paid for construction of business premises,_______A/c is credited and ____ A/c is debited.
  • Wages, Cash
  • Premises, Cash
  • Cash, Wages
  • Cash, Premises
What will be journal entry when cash is withdrawn from bank for personal use?
  • Drawings A/c debit, bank A/c credit
  • Cash A/c debit, drawings A/c credit
  • Bank A/c debit, drawings A/c credit
  • Bank A/c debit, capital A/c credit
Sales of the Scrap of raw materials appearing in the trial balance are shown on the credit side of _______.
  • Trading account
  • Manufacturing account
  • Profit and Loss A/c
  • None of these
The accounting entries for recording Rs.10,00,000 cash introduced by the owner of a business is ______________.
  • Debit Cash account and Credit Capital account
  • Debit Cash account and Credit Investment account
  • Credit Cash account and Debit Investment in business account
  • Credit Cash account and Debit Owner's account
Accounting entries for the repayment of a loan received from Richard, the owner's friend is _____________________.
  • Debit Cash account and Credit capital account
  • Credit cash account and Debit Richard's loan account
  • Credit cash account and Debit capital account
  • Debit cash account and Credit Richard's loan account
A ______ is an accounting document representing an internal intent to make a payment to an external entity, such as a vendor or service provider.
  • Debit Note
  • Credit Note
  • Voucher
  • Invoice
Purchase of Pen for office use will be debited to __________ .
  • Pen A/c
  • Stationery Expense A/c
  • Any of the above
  • None of the above
The two types of cash vouchers include debit vouchers and ____________ vouchers.
  • Credit
  • Memo
  • Receipt
  • Payment
The _________ is a document that a seller passes to a buyer at the time of a specific purchase of goods or services. It is the equivalent of an invoice and is only used to record transactions that are paid for using cash, rather than bank transactions.
  • Voucher
  • Invoice
  • Cash memo
  • Credit memo
State whether true or false:
There is no set format of an accounting voucher.
  • True
  • False
A ___________ voucher is a document which comprises of all the details of an accounting transaction.
  • Journal
  • Petty Cash
  • Debit
  • Credit
When a liability is reduced or decreased, it is recorded on the ______________.
  • left or credit side of the liability account
  • right or debit side of the liability account
  • right or credit side of the liability account
  • left or debit side of the liability account
Details of Outward supplies shall include _______________.
  • Invoice
  • Credit and Debit notes
  • Revised invoice issued in relation to outward supplies
  • All the above
Which of the following statements is 'True'?
  • Building Account is a nominal account
  • Outstanding rent account is a non-personal account
  • Every debit has a corresponding credit
  • Income is debited
The left side of an account is known as _________ and the right side as ____________.
  • Debit, Credit
  • Credit, Debit
  • Liability, Asset
  • None of the above
Required return is 15% and premium for risk is 11% then risk free return would be _____________.
  • 26.00%
  • 4.00%
  • 16.50%
  • 1.36%
In which of the following order, data is entered into the Journal?
  • Alphabetical order
  • Numeric order
  • Bullets order
  • Chronological order
Bank account is _____________.
  • Personal account
  • Real account
  • Nominal account
  • Intangible real account
Vouchers can be displayed in
  • Accounts info
  • Day book
  • inventory info
  • Ledger
Financial risk is most associated with ___________________________.
  • the use of equity financing by corporations
  • the use of debt financing by corporations
  • equity investments held by corporations
  • debt investments held by corporations
Under the head Business or Profession, the method of accounting which an assessee can follow shall be ___________.
  • Mercantile system only
  • Cash system only
  • Mercantile or cash system only
  • Hybrid system
Supplier's account will be ________ when goods are received on credit.
  • Debited
  • Credited
  • Closed
  • None of these above
The books to be compulsorily maintained by a company are ______________.
  • Cash book and ledger
  • Sales and purchase book
  • Journal
  • All of the above
Which of the following transactions will result in decrease in assets and decrease in liabilities?
  • Payment of a promissory note with cash
  • Materials returned to supplier on account
  • Redemption of debentures
  • All of these
Which of the following statements best explains the relationship between journal and ledger?
  • First recording in journal and then positing to ledger completes the double entry of the transaction
  • The journal is the book of original entry, where as the ledger is the book of second entry
  • The journal is the book for analytical record and ledger is the book for chronological record
  • The process of recording, in the journal is called journalising, the process of recording in the ledger is called posting
The return of goods by the customer should be debited to _____________.
  • Customer A/c
  • Sales return A/c
  • Goods A/c
  • Purchase return A/c
The amount of salary paid to Suresh should be debited to _____________.
  • The account of Suresh
  • Salaries a/c
  • Cash a/c
  • Bank a/c
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers