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CBSE Questions for Class 11 Commerce Accountancy Recording Of Transactions - Ii Quiz 6 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Recording Of Transactions - Ii
Quiz 6
Which of these will not be recorded in cash book/account?
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0%
Two months rent of Rs. 5000 paid in advance
0%
One year insurance premium Rs.9000 paid in advance
0%
Goods purchased on 3 months credit
0%
Goods worth Rs. 5900 sold cash
Explanation
The Journal Entry for
Option 3
is
Purchases a/c Dr.
To Creditors a/c
Goods purchased on credit does not involve any outflow of cash therefore, it will not be recorded in the cash book.
Goods worth Rs.45,000 sold to Tarun for credit will be recorded in ___________.
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0%
Cash book
0%
Sales book
0%
Journal book
0%
Stock register
Explanation
All credit sales of merchandise are recorded in the sales journal.
Cash sales are recorded in the cash book.
The source document for recording entries in the sales journal are sales invoice or bill issued by the firm to the customers.
The date of sale, invoice number, name of the customer and amount of the invoice are recorded in the sales journal.
Other details about the sales transaction including terms of payment available in the invoice.
In fact, two or more than two copies of a sales invoice are prepared for each sale. The book keeper makes entries in the sales journal from one copy of the sales invoice.
For example. goods worth Rs. 45,000 sold to Tarun for credit will be recorded in sales book.
In cash book with discount column, total of discount column of credit side of the cash book is posted to the________.
Report Question
0%
Dr. of Discount Allowed A/c
0%
Dr. of Discount Received A/c
0%
Cr. of Discount Allowed A/c
0%
Cr. of Discount Received A/c
Explanation
One more type of cash book is triple column cash book. Three columns are cash, bank and discount column where cash discount allowed and cash discount received are recorded in discount column.
Total of cash discount received is to be posted to the credit of discount received account.
Rent outstanding for the month of February will appear_________.
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0%
on the debit side of the cash book
0%
on the credit side of the cash book
0%
as a contra entry in the cash book
0%
no entry in the cash book
Explanation
When there is rent outstanding for the month of February then this implies that no cash is paid or received as a rent in the month of February therefore, no entry in the cash book.
Cash Book records only those entries which have a effect on the cash or bank balanace.
Goods worth Rs. 45,000 sold to Tarun for cash will be recorded in_________.
Report Question
0%
Cash book
0%
Sales book
0%
Journal book
0%
Stock register
Explanation
Cash book is a book in which all transactions relating to cash receipts and cash payments are recorded. It starts with the cash or bank balances at the beginning of the period. Generally, it is made on monthly basis.
This is 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 (cash) account. It is also called the book of original entry.
When a cash book is maintained, transactions of cash are not recorded in the journal, and no separate account for cash or bank is required in the ledger.
For example, goods worth Rs. 45,000 sold to Tarun for cash will be recorded in the cash book.
Goods worth Rs.15,000 purchased from Tarun for cash will be recorded in________.
Report Question
0%
Cash book credit side
0%
Sales book
0%
Journal book
0%
Stock register
Explanation
The Journal Entry that should be entered in books :-
(i) Purchase A/c Dr. 15000
To Cash A/c 15000
(Being goods purchased for cash)
Hence, This will be shown in credit side of cash book.
By Purchase A/c 15000
Rent for the month of April paid in advance in the month of March will be shown_____.
Report Question
0%
payment side (credit) of cash book
0%
receipt (debit) side of cash book
0%
no entry
0%
trial balance
Explanation
When
Rent for the month of April is paid in advance in the month of March will be shown in the cash book.
As cash is paid, therefore, it will be recorded in the payment side of the cash book. The payment side of cash means the credit side of the cash book.
Cash purchase of new plant is initially recorded in ________.
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0%
Purchase Day Book
0%
Cash Book
0%
Plant A/c
0%
Any of the Above
Explanation
Irrespective of the nature of transaction i.e. revenue or assets, all cash transactions must initially recorded in cash book. Hence cash purchase of new plant will be recorded in cash book.
Credit sales of trading goods is initially recorded in____________.
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0%
Sales Day Book
0%
Cash Book
0%
Directly in Purchase A/c
0%
Any of the above three
Explanation
Sales day book is a subsidiary book in which all credit sale is recorded in chronological order. Sales day book is having 5 columns.
Depreciation provision on fixed assets is journalized in__________.
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0%
general journal
0%
fixed assets journal
0%
profit and loss account
0%
any of the above
Explanation
All adjustment entries are passed thorough general journal. Other than cash, credit sales and credit purchase all transaction are to be recorded in general journal.
Purchase A/c will have _______.
Report Question
0%
debit balance
0%
credit balance
0%
nil
0%
debit or credit balance
Explanation
Purchase account is a real account. Rule of real account says debit what comes in. According all purchase of goods are recorded as debit. Purchase a/c will always have the debit balance.
Credit purchase of new plant is initially recorded in_____________.
Report Question
0%
purchase day book
0%
cash book
0%
directly in plant A/c
0%
general journal
Explanation
Journal is a book of original entry. All transactions which are pertaining to assets are recorded through journal only. Credit purchases of new plant will be recorded in journal as:
Plant A/c Dr.
To Supplier A/c
Cash sales of trading goods is initially recorded in ________.
Report Question
0%
Sales Day Book
0%
Cash Book
0%
Directly n Sales A/c
0%
All the above
Explanation
Cash book is maintained by the business to record all the cash transactions i.e. expense and revenues. Cash sales of goods must be recorded in cash book on the date of sale itself.
Credit 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
Purchase day book is a subsidiary books in which all credit purchases are recorded in chronological order. At the end of a defined period, total of the purchases will be transferred to purchase account in ledger.
An undervaluation of current year's closing inventory will.........
Report Question
0%
Causes current year's net income to be overstated
0%
Causes subsequent year's net income to be overstated
0%
Causes previous year's net income to be understated
0%
Causes subsequent year's income to be unafected
Explanation
Closing Stock is shown on the credit side of Trading A/c. If the value of closing stock is overvalued, it will to the increase in profit of such year and decrease in profit of the succeeding year.
Therefore, B is the correct option.
Purchase of computer by a computer dealer on credit is recorded in_____.
Report Question
0%
Cash book
0%
Computer A/c
0%
Fixed Assets A/c
0%
Purchase day book
Explanation
Purchase day book records all credit purchases hence buying a computer on credit will be recorded in purchase day book.
A seller on receipt of returned goods sends note to the party who return the goods, the note is called _____.
Report Question
0%
Debit note
0%
Credit note
0%
Refund note
0%
Return note
Explanation
A credit note is prepared, when a party is to be given a credit for reasons other than credit purchase. It is common practice to make it in red ink. When goods are received back from a customer, a credit note is sent to him. It is a document sent by a seller to the buyer.
In other words, it is a note prepared by vendor to the purchaser, notifying that a credit has been made to their account against the goods returned by the buyer.
Purchase day book is opened to record __________.
Report Question
0%
All trading purchases
0%
All trading purchases other than on cash basis
0%
All trading purchase other than on credit basis
0%
All purchases of value less than Rs.
5
,
000
per invoice
Explanation
Purchase Day Book
is a subsidiary book that records all the credit purchases transactions. The balance of the Purchases daybook is transferred to the purchases account. Purchases Book is also known as
Purchases Journal.
Therefore, no cash purchases transactions are recorded in the Purchases Day Book.
A petty cash book is meant for which of these payments.......
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0%
To pay small day to day expenses like postage, telegraph
0%
To pay statutory liabilities like income tax, sales tax
0%
To discharge bank obligations
0%
To pay for purchase of trading goods
Explanation
A petty cash book is meant for which of these payment t
o pay small day to day expenses like postage, telegraph.
When the goods are returned, the supplier sent a _________.
Report Question
0%
Debit Note.
0%
Credit Note.
0%
Demand Draft.
0%
Legal Notice.
Explanation
When goods are returned to supplier the journal entry is
Supplier a/c Dr.
To Purchases return a/c
(Being Goods returned to Supplier)
In this case, the supplier will send
Debit Note
to the Business man.
From the following details find the revised current ratio of
A
B
C
Ltd. if the trade debtors amounting to Rs.
5000
are realized in cash. Cash in hand Rs.
5000
, Stock in trade Rs.
15
,
000
, Prepaid Expenses A/c Rs.
3000
, Plant Rs.
20
,
000
, Miscellaneous expenses to be written off Rs.
2000
, Creditors Rs.
10
,
000
, Bills payable Rs.
3000
, Outstanding Expenses Rs.
1000
, Capital
30
,
000
, Profit and surplus Rs.
6000
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0%
1
:
2
0%
3
:
2
0%
No change
0%
3
:
1
When the goods are returned, the supplier sent a ________.
Report Question
0%
debit note
0%
credit note
0%
demand draft
0%
none of above.
Explanation
A debit note, or a debit memo, is
a document issued by a seller to a buyer to notify them of current debt obligations
. Hence, the correct option is A.
A contra entry is one which ____________.
Report Question
0%
affects both the sides of the same A/c book
0%
affects both the sides of the trial balance
0%
affects one side of a real A/c and another side of a personal A/c
0%
affects both the sides of the same types of A/c
Explanation
A contra entry is an entry which affects both the sides of the same book of entry i.e. Double or Triple Column Cash Book. Whenever cash is deposited into the bank A/c or is withdrawn from the Bank A/c, Cash and Bank both the accounts get affected. It is shown by 'C' in the ledger folio column on both the sides of the Cash Book.
Thus, the correct answer is A.
The term Imprest system is related to.........
Report Question
0%
Petty cash
0%
Inventory valuation
0%
Classification of assets
0%
None
Explanation
The term Imprest system is related to Petty Cash.
Which of these is/are not included in sales A/c?
Report Question
0%
Sale of office equipment
0%
Sale of raw materials
0%
Sale of manufactured goods
0%
Sale of purchased trading goods
Explanation
Sales of office equipments are the sale of fixed assets. Sales includes the sales of goods and services in which the business involves.
Therefore, A is the correct option.
Which of these accounts can have credit balance also
Report Question
0%
Cash in hand A/c
0%
Cash at Bank A/c
0%
Stock in trade A/c
0%
Accounts receivable A/c
Explanation
Cash in hand can never have a Negetive balance, its balance can be debit or zero. but bank balance can have a negetive balance.
A bank account can also have negetive balance or credit balance if there is bank overdraft.
Which of these are not to be recorded in cash book
Report Question
0%
Sundry purchase of Rs. 1,000 to be paid after 3 months
0%
Salary paid Rs. 3,000
0%
Cash received from the client
0%
Cheque received
Explanation
Sundry purchase of Rs. 1,000 to be paid after 3 months doesnot involve any inflow or outflow of cash.
Over statement of purchase day book will lead to......
Report Question
0%
Over statement of gross profit
0%
Under statement of gross profit
0%
Over statement of trade creditors
0%
Under reporting of sales
Explanation
Over statement of purchase day book will lead to decrease in gross profit, it means debit of trading will be more and when debit is more then profit will be reduce.
Hence b is the correct answer.
When a person purchasing goods on credit he becomes ______ in the books of the seller
Report Question
0%
Creditor
0%
Debtor
0%
Defaulter
0%
Offender
Explanation
When a person purchasing goods on credit he becomes debtors in the books of the seller.
It means seller selling goods to debtor so purchaser will be debtor in the books of seller.
Hence b is the correct answer.
Which of these is not shown in Cash book.
Report Question
0%
goodwill written off
0%
income received in advance
0%
outstanding expenses paid
0%
payment of interest to debenture holders
Explanation
as no cash is involved in writing off goodwill therefore, it is not shown in cash book
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