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CBSE Questions for Class 11 Commerce Accountancy Recording Of Transactions - Ii Quiz 15 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Recording Of Transactions - Ii
Quiz 15
Transactions which cannot be recorded in any specialized subsidiary books are recorded in _______.
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Journal proper
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Miscellaneous book
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General ledger
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Cash book
Explanation
There are various subsidiary books which are used for recording the specific transactions. Sales day book records all credit sales whereas purchase day book records all credit purchases. Similarly cash transactions are recorded in cash book. Any transaction which can not be recorded in specialized book are to to be recorded in journal proper.
Which of the following is entered in the journal proper?
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Trade discount allowed
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Trade discount received
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Cash discount allowed
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Opening entry
Explanation
Journal is sub-divided into various subsidiary books such as Sales book, Purchase book, Cash 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. Closing entries
b. Opening entries
c. Rectification entries
d. Adjustment entries
e. Transfer entries etc.
The periodic total of sales day book is posted to __________.
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Credit side of sales A/c
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Credit side of trading A/c
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Credit side of purchase A/c
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Credit side of purchase return A/c
A buyer on returning goods on the ground of poor quality send a note along with the goods stating that no payment would be made in respect of goods returned the return note is called ______.
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Debit note
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Credit note
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Refund note
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Return note
Explanation
A debit note is a document evidencing a debit to be raised against a party for reasons other than sale on credit.
On finding that goods supplied are not as per the terms of the order placed, the defective goods are returned to the supplier of the goods and a note is prepared to debit the supplier; or when an additional sum is recoverable from a customer such a note is prepared to debit the customer with additional dues.
In these two situations the note is called a debit note.
The periodic total of purchase day book is posted to ______.
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Debit side of purchase A/c
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Debit side of trading A/c
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Credit side of creditors A/c
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Credit side of sales A/c
Closing entries are recorded in __________.
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Cash book
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Ledger
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Journal Proper
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Balance Sheet
Explanation
Journal is sub-divided into various subsidiary books such as Sales book, Purchase book, Cash 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. Closing entries
b. Opening entries
c. Rectification entries
d. Adjustment entries
e. Transfer entries etc.
A periodic total of the purchase book is ___________.
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posted to the debit of the purchases account
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posted to the debit of the sales account
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posted to the credit of the
purchases account
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posted to the credit of sales A/c.
Explanation
Total of purchase book is posted on the debit side of Purchases A/c. A Purchases Book is a subsidiary book or a sub-division of Journal. Thus, all the entries related to credit purchases of goods are first recorded in Purchases book and then the posting is made to the respective ledger accounts. Thus, Purchases A/c is the account where the total of Purchase book is posted.
_________ will not be recorded in cash book
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Depreciation
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Rent paid
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BR discounted
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Cash discount allowed
Contra entries are passed only when ____________.
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double-column cash book is prepared
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three-column cash book is prepared
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simple cash book is prepared
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all of these
Explanation
Contra entries are passed only when
double-column cash book is prepared
Which of the following books is used to record purchase of the machinery by cash ?
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Cash book
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Purchases book
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Journal proper
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Purchases returns book
Explanation
A cash book is a statement which records all the cash receipts and cash payments of the business transactions.
In case of machinery purchased by cash,the two accounts which get affected would be the machinery account and the cash paid as per the following entry:
Machinery Account Dr.
To Cash Account
A company sends cars to dealers on 'sales or return' basis. All such transactions are however treated like actual sales and are passed through the sales day book. Just before the end of the financial year, two cars which had casted Rs.$$55,000$$ each have been sent on 'sales or return' basis and have been debited to customers at Rs.$$75,000$$ each. Cost of goods lying with the customers would be ______________.
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Rs.$$1,10,000$$
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Rs.$$1,50,000$$
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Rs.$$75,000$$
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Rs.$$55,000$$
Rectifying the error of a credit purchase of goods recorded as credit sale discovered two months later, the entry will be in __________.
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journal proper
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sales book
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cash book
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purchase book
Explanation
Specific transactions are recorded into various subsidiary books such as Sales book, Purchase book, Cash book etc.
All the transactions which cannot be recorded in any of the specific subsidiary books are recorded in journal proper. The following types of entries are recorded in journal proper:
a. Closing entries
b. Opening entries
c. Rectification entries
d. Adjustment entries
e. Transfer entries etc.
CA/CS book is prepared ______.
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On the basis of Cash Book
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On the basis of copies of invoices
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Both (a) and (b)
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On the basis of ca/cs order
Explanation
CA/CS book or Sales book records 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.
Which of the following entries will be entered in the Journal proper?
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Sold goods on credit
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Goods purchased and paid by cash
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Furniture purchased on credit
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Purchase goods on credit
Explanation
Journal proper or General Journal is book of original entry (simple journal) in which miscellaneous transactions are recorded which are not recorded in any other specific subsidiary books. Some entries recorded in Journal proper are:
1. Opening entries
2. Closing entries
3. Adjustment entries
4. Rectification entries
5. Purchase of fixed assets etc.
The advantages of imprest system of petty cash include:
The main (or head) cashier is relieved of maintaining record of petty payments
Small payments are not stuffed in the main cash book.
Complete and reliable check is maintained on small items of expenses
It is automatically balanced.
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$$1, 2$$ and $$4$$
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$$1, 2$$ and $$3$$
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$$2, 3$$ and $$4$$
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$$2$$ and $$4$$
Explanation
The advantages of imprest system of petty cash include:
1. The main (or head) cashier is relieved of maintaining record of petty payments
2. Small payments are not stuffed in the main cash book.
3. Complete and reliable check is maintained on small items of expenses
Purchased goods on credit basis will be recorded in __________.
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bill Receivable book
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purchases book
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journal proper (General Journal)
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purchases return
Explanation
All credit purchases are recorded in the Purchase book. Only credit purchases are recorded in the purchase book and not cash purchases. Goods are things that are produced for resale in a business. Any purchase of assets is not recorded in the Purchases book. For example, if a business deals in cloth, credit purchase of cloth will be recorded in the purchase book, but purchase of furniture, which is an asset, will not be recorded in the Purchase book.
Which of the following statements is/are true?
(i) Cash book records all cash receipts and cash payments.
(ii) Cash book records all sale and purchase transactions of goods both in cash and on credit.
(iii) Cash book records discount on cash payments
Select the correct answer from the options given below :-
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Only (i) of the above
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Only (ii) of the above
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Only (iii) of the above
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Both (i) and (iii) of the above
Explanation
Statement 2 is not correct as cash doesnot record credit transactions.
Cash Book is a subsidiary book that records all the cash receipts and cash payments. The Balance of the Cashbook can never be credit as it always has a debit balance or zero balance.
There are mainly Four types of Cash Books
1. Simple Cashbook
2. Two-column Cash Book
3.
Three Column Cash Books.
4. Petty Cash Book
A second-hand motor car purchased on credit from Mohan will be recorded in the ___________.
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Journal Proper (General Journal)
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Sales Book
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Cash Book
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Purchase Book
Explanation
A journal proper is the book of original entry in which only those entries are recorded that cannot be recorded in the special journal. It is also termed as a General Journal. When the journal is divided into various subsidiary books, it remains only a residuary book in which only those transactions are recorded that cannot be recorded in any other subsidiary book. In such a case, the journal is called as Journal proper. Purchase of asset on credit can neither be recorded in the cash book or the purchase book because cash book only records cash transactions and purchase book only records the credit purchase of goods. Thus purchase and sale or return of purchased or sale asset on credit is recorded in journal proper. In our question a second hand motor car is purchased on credit which is fixed asset hence, it will be recorded in Journal proper.
How does an overcasting of purchases day book affect the cost of sales and profit?
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Cost of sales is decreased while profit is increased
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Cost of sales is increased while profit is decreased
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Both cost of sales and profit are increased
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Cost of sales is increased; gross profit is decreased but net profit remains unaffected.
Explanation
Cost of sales = Opening stock + Purchases - Closing stock
Sales - Cost of sales = profit
Looking at the above two statements it may be observed that if purchases is overcast the cost of sales will increase. And if cost of sales will increase the profit will decrease.
Therefore, cost of sales is increased while profit is decreased.
Which of the following is/are advantages of the imprest system?
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It saves the time of the chief cashier.
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It reduces the chances of misuse of cash by the petty cashier.
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It enables a great saving to be effected in the posting of small items to the ledger accounts.
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All of the above
Explanation
Under Imprest system, a fixed amount of money known as float is given to the petty cashier to meet petty expenditures for an agreed period which usually consists of a week or month.
At the end of agreed period, the petty cashier submits the details of all expenditures incurred by him to the chief cashier.
The imprest system of petty cash is used by most of the companies because of the following advantages:
1. The imprest system reduces the chances of misuse of cash because the float can be immediately reduced is it is found to be more adequate for the agreed period.
2. Under this system, the chief cashier periodically checks the record of petty cash. If an error is committed by petty cashier, it can be detected and rectified soon.
3. It saves the time of the firm's chief cashier who is usually a busy person with heavy responsibilities of handling large receipts and payments by cash and checks.
4. There are little to no chance of misappropriation of cash by the person in charge because the imprest sum is usually very small.
While balancing an account in case of a debit balance, the Words By Balance c/d are recorded in the particulars column of an account _________________.
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on the debit side
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on the credit side
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on the both side
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None of these.
While balancing an account, the balance of an account is recorded on the side which is _____________.
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Shorter
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Higher
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Equal
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None of these
In double column cash book, when does contra entry arises?
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Withdrawal of cash from bank
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Payment to Creditors.
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Withdrawl of cash from bank for personal use
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All of the above
Explanation
If an amount is entered on the debit side of the
cash book
, and the exact amount is again entered on the credit side of the same account, it is called “
contra entry
”. Similarly an amount entered on the credit side of an account also may have a
contra entry
on the debit side of the same account.
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers
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