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CBSE Questions for Class 11 Commerce Accountancy Recording Of Transactions - Ii Quiz 1 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Recording Of Transactions - Ii
Quiz 1
AB are two partners in a firm C is admitted for 1 /3 shares of profit with a minimum guaranteed profit of Rs. 30,000 given by A. During 2006-07 the firm reported net profit of Rs. 66,Find the share of profit of A.
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0%
Rs. 22,000
0%
Rs. 14,000
0%
Rs. 20,000
0%
None of above
Explanation
.
The amount which the main cashier hands over to the petty cashier to meet day to day petty expenses is known as.....
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0%
advance
0%
loan
0%
imprest / float
0%
all the three
Explanation
The amount which the main cashier hands over to the petty cashier to meet day to day petty expenses is known as imprest /float.
Wages paid for repairing a machine should be debited to ___________.
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0%
Repair account
0%
Machine account
0%
Cash account
0%
Furniture account
Explanation
Repair of machine is a regular nature expense. It is done to keep the machine in working condition. It is revenue in nature. So, wages paid for repair of machine is debited to repair account.
Trade discount allowed at the time of sale of goods is ________________.
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0%
Recorded in Journal
0%
Not recorded on books of accounts
0%
Recorded in cash book
0%
None of these
Explanation
A
trade discount
is the reduction granted by a supplier of goods/services on the list or catalog prices of the goods supplied. ...
Trade discount is not
separately shown in the
books
of accounts, and all amounts
recorded
in a purchases or sales
book
are done in the net amount only.
Which document is issued by a supplier when a customer returns goods?
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0%
Credit note
0%
Debit note
0%
Invoice
0%
Statement
Explanation
A source document on the basis of which the sales returns book is written is known as credit note. Credit note is also known as a credit memo. It is issued by a seller to a buyer. It serves as an evidence of the reduction in sales.
Therefore, A is the correct option.
Goods sold for cash were returned by a customer but cash was not given immediately. This is recorded in ______________.
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0%
Sales Book.
0%
Sales Return Book.
0%
Cash Book.
0%
Journal Proper.
Cash book is prepared on.....
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0%
Accrual basis
0%
Cash basis
0%
Hybrid basis
0%
Single entry system basis
The statement sent along with purchase return is______.
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0%
Credit note
0%
Bills payable book
0%
Debit note
0%
Purchases return book
Explanation
The credit note received from the supplier shows the goods returned and the amounts involved. The purchase return book is also known as returned outward account.
The balance of the
Petty Cash Book
is ___________.
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0%
An asset
0%
A liability
0%
An income
0%
An expenditure
Explanation
Petty cash book is used to record the day to day small value transactions. Balance lying in petty cash book is as good as cash balance. Cash is an asset for the business.
Which of the following books should be used to record purchase of furniture on credit?
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0%
Cash book
0%
Journal proper
0%
Purchases book
0%
Sales book
Explanation
The book in which the transaction is recorded for the first time is called journal or book of original entry. Hence, the purchase of furniture on credit transaction should be recorded in journal proper.
The appropriate book to record credit purchase of machinery is ______________.
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0%
Purchases book
0%
Journal Proper
0%
Cash book
0%
Petty cash book
Explanation
All credit purchases of goods are recorded in the purchases journal whereas cash purchases are recorded in the cash book. Other purchases such as purchases of office equipment, furniture, building, and machinery are recorded in the journal proper if purchased on credit or in the cash book if purchased for cash.
The credit balance in the bank account is_______.
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0%
An asset
0%
A liability
0%
An expense
0%
Contingent liability
Explanation
A credit balance in bank account means that the person in whose account this belongs to is under an obligation to pay the bank back the entitlement of such balances. This money has been owned to the account holder by the bank and must be repaid i.e. it is a liability.
Cash book prepared on imprest system is_________.
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0%
Two Column Cash Book
0%
Cash Book
0%
Petty Cash Book
0%
Purchase Book
Explanation
A large number of small payments are recorded in separate cash book such a cash book is maintained by petty cashier is called as petty cash book. The petty cashier works on the "Imprest system" under this system a definite amount is given to petty cashier at the beginning of certain period. This amount is called "Imprest amount". The petty cashier makes small payments out of this imprest amount, when he spent substantial amount he gets reimbursement of amount spent from head cashier.
The discount column of a triple column cash book records __________.
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0%
Trade discount
0%
Cash discount
0%
Quantity discount
0%
Seasonal discount
Explanation
Cash Book may have two or three columns. When only Cash and Bank are considered while making the cash book, its a two column cash book.
Some times in a business, creditors are allowing cash discount while purchasing the goods on cash basis or the organization is allowing a cash discount while making sales in cash. In such situations, one more column of cash discount is added in cash book. This is a triple column cash book.
The balance of cash account indicates ___________.
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0%
Net income for the Period
0%
Net loss for the Period
0%
Net worth of the Business
0%
Net cash on Hand
Explanation
All cash transactions are recorded in cash book. It is having two sides i.e. receipts and payment. Balance of cash is the difference of receipts and payment. It indicates the net position of cash on hand.
Cash on hand is current assets and to be shown in balance sheet as assets.
When furniture is sold for cash, the entry should be made in ________.
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0%
Sales book
0%
Cash book
0%
Journal
0%
Petty cash book
Explanation
The journal entry for the transaction "furniture is sold for cash" is:
Cash A/c Dr.
To Furniture A/c
In this transaction, we have to debit what comes in and credit what goes out i.e.
here cash comes in,
and furniture goes out. Hence this transaction is recorded in cash book.
The credit balance of bank account indicates________.
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0%
Amount payable by the bank
0%
Amount payable to the bank
0%
Cash at bank
0%
Loan from bank
Explanation
The credit balance of bank account indicates amount payable to the bank. Credit balance of bank account means bank overdraft and it comes on balance sheet under liabilities or assets side but with minus sign.
___________ is allowed to encourage early cash payment.
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0%
Cash discount
0%
Trade discount
0%
Quantity discount
0%
Price discount
Explanation
Discount can be classified as trade discount and cash discount. Trade discount is allowed to the customers to push the sales but cash discount is allowed to get the early payments.
Credit sales are recorded in a ____________.
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0%
Sales Book
0%
Cash Book
0%
Journal Book
0%
Purchases Book
Explanation
A
Sales book
is a
record
of all
credit sales
made by a business. It is one of the secondary
book
of accounts and unlike cash
sales
which are
recorded
in cash
book
,
sales book
is only to
record credit sales
. The amount entered in the
sales book
is on behalf of invoices supplied to purchasers.
A Cheque received and paid into the bank on the same day is recorded in the ____________.
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0%
Cash column of the cash book
0%
Bank column of the cash book
0%
Both the cash and bank columns of the book
0%
The credit balance as per pass book
Explanation
Cash book is having two columns i.e cash and bank column. When a cheque is received and deposited on the same day in to the bank, this will be recorded in bank column of the cash book.
Purchase of office furniture is recorded in the ___________.
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0%
Journal proper
0%
Cash book
0%
Purchase book
0%
Sales book
Explanation
Certain business transactions like credit sales, credit purchases, purchase returns, sales returns are to be recorded in specific journal which are called subsidiary books. Other than those specific transaction, all other transactions are recorded in journal proper.
Purchase journal is kept to record ____________.
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0%
Cash sales
0%
Credit sales of assets
0%
Credit sales of goods
0%
Credit purchases
Explanation
All credit purchases of goods are recorded in the purchase journal while cash purchases are recorded in cash book. Other purchases such as purchases of office equipment, furniture, building etc. are recorded in the journal proper if purchased on credit or in the cash book if purchased for cash.
The cash book records ____________.
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0%
All cash payments
0%
All cash receipts
0%
All cash receipts and payments
0%
Only credit payments
Explanation
Cash book records all cash transactions of receipts and payments. Different type of cash book is used depending on the requirement of the business i.e two column cash book, three column cash book. Cash book records all the transaction which includes revenue and capital both.
Posting from the sales journal is done _________ to their respective accounts.
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0%
Daily
0%
Weekly
0%
Monthly
0%
Yearly
Explanation
Sales journals are special journals that saves time in recording and posting business transactions.
Each transaction in the sales journal is a sale of goods on credit.
Therefore, each transaction is separately posted daily to the accounts receivable to keep debtor's accounts current up to date.
Petty cash may be used to pay _________.
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0%
The expenses relating to postage and conveyance
0%
Salaries and wages to the final staff
0%
For the purchase of furniture and fittings
0%
Other recurring expenses
Explanation
There are two kinds of cash book i.e. Main Cash Book and Petty Cash Book. Petty cash book is used to record small value expense items.
A
petty cash
fund
is
a small amount of
cash
kept on hand to
pay
for minor expenses, such as office supplies or reimbursements. A
petty cash
fund will undergo periodic reconciliations, with transactions also recorded on the financial statements.
Journal proper is meant for recording ____________.
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0%
Credit purchase of Fixed Assets
0%
Return of Goods
0%
All such transactions for which no special journal has been kept by the business
0%
Supply of Goods
Explanation
All specific transactions like credit sales, credit purchases, sales returns, purchase returns, bills payable, bills receivables etc are recorded in specific journals. The transactions which are not recorded in specific journal, need to be recorded in journal proper.
Purchase of machinery is recorded in ____________.
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0%
Sales Book
0%
Journal Proper
0%
Purchases Book
0%
Sales Returns Book
Explanation
There are various subsidiary books which are used to record the specific transactions. For example, credit sales is recorded in sales day book, so is the case with credit purchases which is to be recorded in purchase day book.
Other than the specific transaction for which a separate subsidiary journal is kept, all other transactions must be recorded in journal proper. Purchase of machinery being a transaction for which no specific book is maintained, it is recorded in journal proper.
Overcasting of purchases journal would affect _________.
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0%
Sales Account
0%
Purchases Account
0%
Purchases Returns Account
0%
Sales Returns Account
Explanation
Credit purchases are recorded in purchase day book which is a subsidiary journal. The total of purchase day book is transferred to purchase account in ledger. Overcasting may lead to excess debit in purchase account.
Sales on account is recorded in the _________.
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0%
Cash book
0%
Journal
0%
Sales book
0%
General Journal
Explanation
There are various subsidiary journal which records specific transactions. For example, sales day book, purchase day book, bills payable book, bills receivable book etc.
Credit sales is recorded in a subsidiary book which is called sales day book.
Which of the following books should be used to record purchase of a type writer on account?
Report Question
0%
Cash book.
0%
Purchase book.
0%
Sales book.
0%
Journal.
Explanation
Journal is the book which records all those transactions which are not recorded in specific or subsidiary books. Purchase of type writer should be recorded in journal.
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers
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