MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 11 Commerce Accountancy Recording Of Transactions - Ii Quiz 14 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Recording Of Transactions - Ii
Quiz 14
The transaction for purchase of fixed asset on credit will be recorded in which of the following book
Report Question
0%
Sales Book
0%
Purchases Book
0%
Journal Proper
0%
Cash Book
Explanation
Journal Proper records all such transactions which
are not recorded
in any other subsidiary books.
Journal proper is also known as
General Journal
.
Journal Proper is a
subsidiary book
. Usually following entries are recorded in journal Proper
1. Opening Entries
2. Closing Entries
3. Rectification Entries etc.
Which Transactions are recorded in journal proper ?
Report Question
0%
Adjustment Entries
0%
Rectification entries
0%
Transfer entries
0%
All of the Above
Explanation
The transactions that are recorded in the journal proper are :
1. Opening entry : opening entry is the one that is passes for bringing the balances of various assets, liabilities and capital appearing in the balance sheet of the previous accounting periods.
2. Closing entries : these are the entries that are passed for transferring the nominal accounts balances to the trading and profit and loss account.
3. Adjustment entries : these entries are passed to bring in any unrecorded items into consideration like closing stock, outstanding expenses, prepaid expenses etc.
4. Rectifying entries : Rectifying entries are made in the journal to rectify the various errors committed while posting, totaling, balancing etc.
5. Other entries : other entries that are recorded are
purchase and sale of fixed assets on credit, dishonor of bill, Bad debts, transfer entries etc.
Purchases that are recorded in purchases (Journal) book ?
Report Question
0%
Credit purchases of goods.
0%
Purchases of office equipment.
0%
Purchases of office furniture.
0%
Cash purchases of goods.
Explanation
Purchase books are the subsidiary books prepared for recording the accounting information.
In the purchase books all the credit purchases of goods are recorded that are meant for resale and the cash transactions are avoided since cash transactions are recorded in the cash book. Purchase books do not involve the purchase of assets on credit and these assets purchase is recorded in the Journal proper.
For example : Gupta electronics made the following purchases on credit during the year 2017 :
Jan 4 Bought Rs.10000 goods from RAM.
Jan 11 Bought Rs.20000 goods from modern dealers.
Jan 14 Bought Rs.35000 goods from Jana electric store.
Jan 25 Bought Rs.150000 Furniture from Navindra furniture's.
Now while preparing the purchase book we will record the entries of goods purchased on credit of amounts 10000 , 20000 , and 35000 and the purchase of asset (furniture) will be transferred to the journal proper since purchase books record credit transactions of goods related to resale of day to day business of the firms.
DATE
PARTICULARS
I.N
L.F
AMOUNT
JAN 4
JAN 11
JAN 14
RAM
MODERN DEALERS
JANA ELECTRIC STORE
10000
20000
35000
JAN 31
PURCHASES ACCOUNT DR.
6500
Source documents for recording entries in the sales book are _________________.
Report Question
0%
Sales invoice issued by the firm to the customers
0%
Sales invoice issued by the customers to the firm
0%
Sales invoice issued by the firm to the seller
0%
None of the above
Explanation
A sales invoice issued by the firm to the customers serves as the source document to record in the sales day book.
This is a document sent by the seller to the buyer (usually for credit sales) requesting the buyer to pay the amount stated on the invoice for goods or services rendered to him. Usually bills are sent for service rendered while invoices are sent for goods sold.
Purchase of machinery for business on cash is recorded in ____________.
Report Question
0%
Purchase Journal
0%
General journal
0%
Cash book
0%
Balance Sheet
Explanation
Cash book is a book in which all cash receipts and cash payments are recorded. It is also one of the books of original entry. It starts with the cash or bank balance at the beginning of the period. In case of new business, there is no cash balance to start with. It is prepared by all organisations. When a cash book is maintained, cash transactions are not recorded in the journal, and no cash or bank account is required to be maintained in the ledger as cash book serves the purpose of cash account.
Hence, purchase of machinery for business on cash is recorded in cash book.
Double column cash book records transaction relating to __________ and ___________.
Report Question
0%
Purchase, Sales
0%
Cash, Credit
0%
Cash, Bank
0%
Purchase, Return
Explanation
The double column cash book (also known as two column cash book) has two money columns on both debit and credit sides-one to record cash transactions and one to record bank transactions. The cash column is used to record all cash transactions and works as a cash account whereas bank column is used to record all receipts and payments made by checks and works as a bank account. Both the columns are totaled and balanced like a traditional T-account at the end of an appropriate period which is usually one month.
While posting in cash payment journal ___________________.
Report Question
0%
Only the individual accounts are posted
0%
The individual accounts are debited and also the total of the cash column is credited
0%
Only the individual accounts are credited and there is no need to post the total of the cash column
0%
Only individual accounts are credited and the total of the cash column is debited
Explanation
A cash payment journal is a special journal. Cash payment journal or cash disbursement journal is used to record all cash payments made by the business. All transactions during which you spend funds. For example, if you paid cash to any of your creditors, you would record it in your cash payment journal. Hence, the individual accounts are debited and also the total of the cash column is credited.
Day-to-day cash transactions of club are recorded in __________.
Report Question
0%
Receipts and Payments account
0%
Income and Expenditure account
0%
Cash book
0%
None of these
Explanation
Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with cash or bank balances at the beginning of the period. Generally, it is made on monthly basis. This is a very popular book and is maintained by all organisations, big or small, profit or not-for-profit. It serves the purpose of both journal as well as the ledger account. Day-to-day cash transactions of a club are recorded in the cash book.
Which of the following Cash Book is treated as a 'Cash Account' ?
Report Question
0%
Single-column Cash Book
0%
Two-column Cash Book
0%
Three-column Cash Book
0%
Petty-Cash Book
Explanation
The single column cash book (also known as simple cash book) is a cash book that is used to record only cash transactions of a business. It is very identical to a traditional cash account in which all cash receipts are recorded on left hand (debit) side and all cash payments are recorded on right hand (credit) side in a chronological order.
The single column cash book has only one money column on both debit and credit sides titled as "amount" which is periodically totaled and balanced like a T-account. As stated earlier, a single column cash book records only cash related transactions. The entries relating to checks issued, checks received, purchase discount, and sales discount are not recorded in single column cash book.
Journal proper is issued to record __________.
Report Question
0%
All purchases of goods
0%
All sales of goods
0%
All business expenses paid in cash
0%
All adjusting and rectification entries
Explanation
A book maintained to record transactions, which do not find place in special journals, is known as journal proper. In order to update ledger account on accrual basis such adjusting entries are made at the end of the accounting period. such as rent outstanding, prepaid insurance, depreciation and commission received in advance. To rectify errors in recording transactions in the books of original entry and their posting to ledger accounts this journal is used.
Cash cannot be misappropriated by ____________.
Report Question
0%
Omitting to enter any cash which has been received
0%
Entering less amount than what has been actually received
0%
Making fictitious entries on the receipts side of cash book
0%
Making fictitious entries on the payments side of the cash book
Explanation
Fictitious entries done in the receipt side of cash book will increase the cash balance of the organization, hence it is not possible to misappropriate the cash by doing the fictitious entries on the receipt side of cash book.
Excess of bank withdrawal over bank deposits __________.
Report Question
0%
Overdraft
0%
Cash balance
0%
Bank balance
0%
Loan
Explanation
The opening cash and bank balances are recorded on the debit side of the cash book. Sometimes a businessman withdraws excess amount from the bank (from his bank account) and the closing bank balance of a month is a credit balance. This balance amount is called 'Bank Overdraft'. It is written on the credit side of the bank column of the cash book as opening balance.
A petty cash book which had many sub-columns on payment side for recording expenses which are repetitive in nature, e.g. postage and telegrams, printing & stationery, carriage & cartage, sundry expenses, etc. is called analytical/columnar petty cash book.
Report Question
0%
True
0%
False
Explanation
In columnar /analytical cash book, various items of petty cash payments are analysed and separate analytical columns are provided for recording each and every item. The amount of cash received from the chief cashier for meeting out the petty expenses is recorded on the debit side and actual cash payments towards various petty items are recorded on the credit side in the total as well as analytical columns. The analytical column is provided for each usual head of expense like postage & telegrams, printing & stationary, carriage & cartage, traveling expenses, entertainment expenses, office expenses, sundry expenses, etc. Subsequently, the totals of these analytical columns are posted to the respective ledger accounts which save the labor used in posting each item of payment separately in the ledger. The balancing of petty cash book is done in the total payments column. Where the debit side (receipts) exceeds that of the credit side ( in the totals column -Payments), it represents the unspent balance of cash remaining with the petty cashier.
Select the most appropriate alternative from those given below and rewrite the sentence.
Transactions related to Cash and Bank A/c are entered in _________ voucher.
Report Question
0%
Purchases
0%
Sales
0%
Contra
0%
Payment
Explanation
A typical cash book is having two column i.e. cash and bank column. Its called two column cash book. Transactions related to cash and bank are recorded through these columns.
In case of cash withdrawal and cash deposit, the entry is passed through both the columns.
For example, cash withdrawal from bank Rs.5000/- . In such case, cash of Rs.5000 is recorded in the receipt side of cash book and same amount is recorded in bank column of payment side. Its called "contra" transaction.
To denote specifically "C" is put against each of the contra transaction.
Balance of personal account is brought down for the next year.
Report Question
0%
True
0%
False
Explanation
Personal accounts are accounts related to individuals, firms, companies, etc. A few examples of personal accounts include debtors, creditors, banks, outstanding/prepaid accounts, accounts of credit customers, accounts of goods suppliers, capital, drawings, etc.
The balance of personal account is brought down for the next year. Every year, the balance of the previous accounting period is brought down for the next year. Debit balance will be shown in the debit column and credit balance will be shown in the credit column. Thus, the balance of personal account is brought down for the next year.
________is the book in which cash discount received and allowed is recorded.
Report Question
0%
Sales book
0%
Purchase book
0%
Petty cash book
0%
Journal proper
Explanation
A book maintained to record transactions, which do not find place in special journals, is known as Journal Proper or Journal Residual. When the journal is sub-divided into various subsidiary books, such as, Sales Book, Purchase Book, etc. The Journal becomes the residuary book in which only those transactions are recorded that cannot be recorded in any other subsidiary book. This type of journal is called journal proper. The following types of entries are recorded in Journal Proper:
a. Opening entry
b. Closing entry
c. Transfer entries
d. Rectification entries
e. Adjustment entries
f. Miscellaneous entries such as discount received, bad debts written off, etc.
Thus, cash discount received and allowed is recorded in the journal proper.
Endorsed cheques are always recorded on the payment side in the bank column.
Report Question
0%
True
0%
False
Explanation
Endorsement of a cheque means writing something on the back of the cheque with the intention of transferring the rights therein.
Endorsed cheques are always recorded on the payments side in the cash column (and not in the bank column) of the cash book. The endorsed cheques so received are treated as Cash-in-Hand and when these cheques are endorsed, then Cash A/c is credited. Thus, the above statement is false.
Cheque received and deposited into bank on the same day is a contra entry.
Report Question
0%
True
0%
False
Explanation
Often, cash is withdrawn from bank for use in office. In such a case the amount is entered in the bank column on the payments side and also in the cash column on the receipts side. In the reverse case of cash being sent to the bank, the amount is recorded in the bank column on the receipts side and in cash column on payments side.
The entries that affect both the columns and sides of cash book, i.e. Cash and Bank, are termed as contra entries. It involves both the accounts, i.e. Cash and Bank A/c . For example, Cash withdrawn from bank for office use or deposited in the bank.
When a cheque is received and deposited in the bank, it cannot be termed as contra entry, as it involves two accounts: Bank A/c and the account of the party from whom the cheque is received.
Book in which small payments are recorded is ____________.
Report Question
0%
Petty Cash Book
0%
Double column cash book
0%
Journal proper
0%
None of the above
Explanation
The petty cash book is defined as a relatively small amount of cash kept at hand for making quick payments for miscellaneous small expenses in the business concern. A cash book that is created for the small payments of an organization i.e. taxi fare, car fare, bus fare, postage and stamps etc. has a separate fund to meet the day to day petty expenses in the office is called as petty cash book. It is established in the responsibility of petty cashier who maintains a separate cash book to record, such small payments only. It's a cash book to enter daily expenses like the cost of stationery, postage and so on. The petty cash book will be maintained by a separate cashier known as a petty cashier in the accounting field.
The source document for recording in purchase book is ________.
Report Question
0%
Inward invoice
0%
Outward invoice
0%
Voucher
0%
Cash memo
Explanation
All credit purchases of goods are recorded in the purchase journal whereas cash purchases are recorded in the cash book.
The source documents for recording entries in the book are inward invoices or bills received by the firm from the supplies of the goods. Inward invoice is received by the buyer from the seller.
On the receipt of invoice, the buyer stamps it with date of receipt. The inward invoice number is entered n the purchase journal.
Bank A/c will have _____.
Report Question
0%
Debit Balance
0%
Credit Balance
0%
Nil
0%
Bebit or Credit balance
Explanation
Bank account may have debit or credit balance depending on the nature of transaction. If money is borrowed from a bank, that will show a credit balance and appear as liability in the balance sheet. If firms own money in lying in the bank, it will have a debit balance in firms book and appears as current asset in the balance sheet.
____________recorded in cash book.
Report Question
0%
Rs. 5000 received from Rahul
0%
Rs. 6500 paid to Gopal
0%
Loan of Rs. 51000 taken from Bank
0%
All of three
Explanation
Option A: 5000 received from Rahul
Due to this transaction, there is an increase in cash, therefore it will be recorded in the Cash Book.
Option B: 6500 paid to Gopal
There is a decrease in cash by 6500 therefore it will be recorded in the Cash Book.
Option C: Loan taken from bank Rs. 51000
Therefore, there is an increase in cash due to this transaction
All the transaction involve inflow or outflow of cash therefore, all will be recorded in the cash book.
Sale of computer by a computer dealer on credit is recorded in __________.
Report Question
0%
cash book
0%
computer account
0%
fixed assets account
0%
sales book
Explanation
The firm is doing the business of computer. Sale of computer by the entity will be an operating activity and hence computers are goods in business and not treated as fixed assets. Sales book records transactions of credit sales.
Computer when sold on credit, will be recorded in sales day book as it is a business activity of sale of goods on credit.
_________ is the book which is used for the purpose of recording the payment of petty cash expenses.
Report Question
0%
Cash book
0%
Bank
book
0%
Petty cash Book
0%
Miscellaneous Expenses Book
Explanation
In every organisation, a large number of small payments such as conveyance, cartage, postage, telegrams and other expenses are made. These are generally repetitive in nature.
If all these payments are handled by the cashier and are recorded in the main cash book, the procedure is found to be very cumbersome. The cashier may be overburdened and the cash book may be become very bulky.
To avoid this, large organisations normally appoint one more cashier and maintain a separate cash book to record these transactions. Such a cash book maintained by petty cashier is called petty cash book. It is used for the purpose of recording the payment of petty cash expenses.
_______ does not have any credit side.
Report Question
0%
Purchase day book
0%
Purchase a/c
0%
Capital a/c
0%
Trading a/c
Explanation
The purchases journal, sometimes referred to as the purchase day book, is a special journal used to record credit purchases. It should be noted that the purchases from suppliers and does not for example, include cash purchases or purchase returns.
Cash purchase of trading goods is initially recorded in _______.
Report Question
0%
purchase day book
0%
cash book
0%
directly in Purchase A/c
0%
any of the above three
Explanation
All cash transactions are recorded in cash book which is a subsidiary book. Goods purchased on cash basis must be recorded in cash book.
Which of these items are taken into consideration for preparing adjusted cash book?
Report Question
0%
Cheque issued by not paid
0%
Cheque deposited but not cleared
0%
Wrong totalling of pass book
0%
Mistake in Cash book
Explanation
When there is a difference between bank column of cash book and pass book, there is confusion that which balance should be taken to "Balance Sheet" as "Bank Balance" while preparing financial statements.
Since there is a difference between bank column of cash book and pass book, taking either of the two balances will not relevant a true picture of the "Bank Balance".
Therefore, at the end of the financial year, cash book must be adjusted for all the errors/omissions etc. It is called as "Adjusted Cash Book". All errors made in the cash book are to be taken into consideration for preparing adjusted cash book.
Which of these are recorded in journal proper?
Report Question
0%
Transfer entry
0%
Opening/Closing entry
0%
Rectifying entry
0%
All the three
Explanation
When the journal is sub-divided into various subsidiary books, such as sales book, Purchase book, etc.,the journal becomes the residuary book in which only those transactions are recorded that cannot be recorded in any subsidiary book. This type of journal is called Journal proper. The following types of entries are recorded in Journal proper:
1. Closing entry
2. Opening entry
3. Rectification entries
4. Transfer entries
5. Adjustment entries
6. Miscellaneous entries
Thus, cash discount received or allowed is recorded in the Journal proper.
While adjusting the cash balance which one of the following is not taken into account?
Report Question
0%
Payment directly received by bank as per instructions
0%
Payment directly made by the bank as per standing instructions
0%
Mistake in cash book
0%
Mistake in pass book
Explanation
When there is a difference between bank column of cash book and pass book, there may be confusion that which balance should be taken to "Balance Sheet" as "Bank Balance" while preparing financial statements.
Since there is a difference between bank column of cash book and pass book taking either of the two balances will not reflect a true picture of the "Bank Balance".
Therefore, at the end of the financial year, cash book must be adjusted for all the omissions/errors etc. It is known as "Adjusted Cash Book". Such adjusted cash book will be taken to balance sheet as "Bank Balance". No errors of the pass book will be taken into account while adjusting the cash balance.
Provisions for bad debts is journalized in ________.
Report Question
0%
general journal
0%
debtors A/c
0%
directly in profit and loss A/c
0%
any of the above three
Explanation
All adjustment entries are passed through general journal. Other than cash, credit sales and credit purchase all transaction are to be recorded in general journal. Provision for bad debts is an adjustment and hence is to be recorded in general journal.
0:0:1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
0
Answered
0
Not Answered
0
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Practice Class 11 Commerce Accountancy Quiz Questions and Answers
<
>
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page
