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CBSE Questions for Class 11 Commerce Accountancy Recording Of Transactions - Ii Quiz 7 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Recording Of Transactions - Ii
Quiz 7
Inclusion of purchase of plant & machinery in purchase day book will lead to ...
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0%
Under valuation of closing stock
0%
Over statement of gross profit
0%
Under statement of gross profit
0%
All the three
Explanation
Treating of capital expenditure as the purchases will lead to the understatement of the gross profits.
Therefore, C is the correct option.
Excess of total of debit side of cash book over credit side of cash book shows....
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0%
Excess of income over expenditure
0%
Cash in hand
0%
Discrepancy in cash book
0%
Cheques awaiting clearance by bank
Explanation
When there is excess balance in the debit side of the cash book then it stated that there is cash in hand.
Sale of Goods Act does not apply to ______
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0%
North eastern region
0%
Jammu and Kashmir
0%
Union territories
0%
New formed States after 1974
Explanation
Sale of Goods Act 1930 applies to the whole of India except Jammu and Kashmir. Hence, the correct answer is B.
Provision for income tax will be initially recorded in .......
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0%
Sales journal
0%
Purchase journal
0%
General journal
0%
Directly in profit and loss A/c
Explanation
A general journal is a daybook or subsidiary journal in which transactions relating to adjustment entries, opening stock, depreciation, accounting errors etc.
Provision for income tax will be initially recorded in General Journal. Hence, the correct option is C.
Annual white-washing expenditure of Rs. 12,000 is a
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0%
Capital expenditure
0%
Revenue expenditure
0%
Deferred revenue expenditure
0%
None
Explanation
Revenue expenditures are not the high-value items, instead, they are the routine expenditures that take place in the normal business
Annual white-washing expenditure of Rs. 12,000 is a routine expense hence it is a revenue expenditure.
Hence b is the correct answer.
While checking the accounts of ABC the following discrepancies were noticed, even though the trial balance was made to balance by putting the difference to suspense A/c.
(a) Sales day book for the month of June $$06$$ was found overcast by Rs. $$7,000$$
(b) A credit purchase of Rs. $$3,000$$ was omitted to be recorded in the days book
(c) Rs. $$4,300$$ received from A credited A's Rs. $$5,300$$
(d) Purchase of office equipment worth Rs. $$5,000$$ included in trading purchases.
From the details what would have been the difference in trial balance which was made to balance by opening suspense A/c.
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0%
Debit side short by Rs. $$11,000$$
0%
Credit side short by Rs. $$11,000$$
0%
Debit side more by Rs. $$10,000$$
0%
Credit side more by Rs. $$10,000$$
Contra entries are passed when ___________.
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0%
Subsidiary books are not maintained
0%
Petty cash book is opened
0%
Two column Cash book is prepared
0%
When accounts are prepared on single entry system basis
Explanation
Contra Entry is prepared under single Entry Cash book
ABC Ltd. Issued a credit note of Rs. 2,000 to BCD Associates on 26th MarchThis transaction will be recorded in
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0%
Sales day book
0%
Sales returns day book
0%
Creditors ledger
0%
Purchase A/c
From the following details calculate the total purchases.
Cash purchases Rs. 35,000
Creditor as on 1-04-09 Rs. 20,000, Purchase returns Rs. 20,000, Payment made to trade creditors Rs. 1,00,000, Creditors balance as on 31-03-10 Rs. 35,000.
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0%
Rs. 140,000
0%
Rs. 170,000
0%
Rs. 150,000
0%
Rs. 160,000
If the seller handover the keys of the godown where the goods are kept to the buyer this mode of delivery amounts to __________.
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0%
Actual delivery
0%
Symbolic delivery
0%
Constructive delivery
0%
Notional delivery
If the unpaid seller is paid proportionate price of a part of goods sold he __________.
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0%
can refuse delivery of part goods
0%
cannot refuse delivery of part goods
0%
must refuse delivery of part goods
0%
can refuse part payment
From the following details calculate the total sales.Cash sales Rs. 25,Debtors as on 1-4-13 Rs. 25,000, sales return Rs. 5,000, Payment received from debtors Rs. 60,000, Debtors balance as on 31-3-14 Rs. 40,000
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0%
Rs. 120,000
0%
Rs. 105,000
0%
Rs. 130,000
0%
Rs. 125,000
ABS Associates issued a debit note of Rs. 4,000 to D & Sons on 21st MatchThis will be recorded in
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0%
Purchase A/c
0%
Sales day book
0%
Purchase returns day book
0%
Cash book
A statement from A that he intents to sell his car is ____________.
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0%
a valid proposal
0%
an invitation to offer
0%
merely a statement not amounting to proposal
0%
a valid offer
Sale of by products is credited to
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0%
Manufacturing A/c
0%
Trading A/c
0%
Profit and loss A/c
0%
Profit and Loss appropriation A/c
Explanation
.
Opening stock Rs.30,000, purchase Rs. 1,00,000, sales Rs. 150,000, gross profit 20% of total sales, find closing stock
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0%
Rs.20,000
0%
Rs.10,000
0%
Rs.15,000
0%
Rs.25,000
The excess of selling price over cost of goods sold is termed as _____________.
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0%
net margin
0%
gross margin
0%
gross profit
0%
net profit
Explanation
Gross profit is the amount of total revenue minus cost of goods sold. It is the amount of profit before all interest and tax payments. It is also known as gross margin. Gross profit does not include indirect incomes and expenses.
Formula:
Gross profit= Sales (-) Cost of goods sold
Therefore, C is the correct answer.
Adjusted selling price method of inventory valuation is also known as __________.
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0%
retail price method
0%
historical cost method
0%
current cost method
0%
none
ABC Ltd. sends good worth Rs.$$100,000$$ to PQR on sale on approval basis on $$1st March 09$$. Out of these goods worth Rs.$$30,000$$ were rejected by PQR and in respect of goods worth Rs.$$25,000$$ customer is yet to exercise his option to accept or reject the goods. How much should be accounted for as sales during the financial year ending on $$31st March 09.$$
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0%
$$Rs.45,000$$
0%
$$Rs.55,000$$
0%
$$Rs.70,000$$
0%
$$Rs.75,000$$
In case the unpaid seller exercise the right of stoppage of goods in transit, the cost of such delivery is borne by ____________.
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0%
buyer
0%
seller
0%
transporter
0%
party at default
Explanation
When notice of stoppage in transit is given by the seller to the carrier or other bailee in possession of the goods, he shall re-deliver the goods to, or according to the directions of, the seller. The expenses of such re-delivery shall be borne by the seller.
Therefore, B is the correct option.
Cash in hand with the petty cashier is shown as....
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0%
Assets
0%
Liabilities
0%
Expense
0%
Revenue
Explanation
Cash in hand with the petty cashier is an asset for the business.
A Credit Purchase of Rs.$$15,000$$ has wrongly been posted to the debit side of sales return a/c. The trial balance would.....
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0%
be short by Rs.$$15,000$$ on credit side
0%
be more by Rs.$$15,000$$ on debit side
0%
not be affected
0%
be short by Rs.$$10,000$$ on credit side
Explanation
Credit purchase of Rs.15,000 has wrongly been posted to the debit side of sales return a/c not affected the trial balance as sale return and purchase both have a debit balance and if we wrongly posted then no effect will trial balance as in the trial balance debit side sale return is written 15000 instead of purchase.
Hence c is the correct answer.
H offered to sell 100 tons of Oil to K. This, offer is not valid as
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0%
There is lack of consideration
0%
Offer is ambiguous
0%
Trading in oil is not allowed
0%
All the three
An Account sales contains some information except
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0%
Sales made
0%
Expenses incurred by the consignee
0%
Commission
0%
Other business income of the consignee
The balance in the Petty Cash Book represents income.
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0%
True
0%
False
Explanation
The balance in the Petty Cash Book represents cash balance with petty cashier.
Rs. 14,000 being LIC premium of proprietor paid by the firm, which a/c will be debited.
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0%
Income-tax a/c
0%
Drawing a/c
0%
Profit and loss a/c
0%
None
Explanation
Journal Entry for recording LIC premium
Drawings A/c Dr. 14000
To Bank A/c 14000
( Being LIP premium paid)
Therefore, B is the correct option.
Which of these are not to be recorded in cash book.
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0%
Goods worth Rs.5,000 sold on three months credit.
0%
Interest paid Rs.3,000
0%
Cash received from the client
0%
Cheque dishonoured
Explanation
In Cashbook, only cash transactions are recorded.
In Option A, Cash is not involved, therefore, Goods worth Rs.5,000 sold on three months credit are not recorded in cash book.
In Option B, C and D, Cash is involved therefore it will be recorded in the Cash Book.
Cash book starts with ______
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0%
cash/bank balance in hand
0%
no balance
0%
opening stock
0%
debtors a/c
Explanation
Cash Book starts with cash balance in hand
X intends to earn a 20% profit margin on selling price, what should be the mark up on cost price to get the desired profit margin
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0%
20%
0%
33%
0%
25%
0%
30%
Adjusted purchases means ____________.
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0%
purchases adjusted for closing stock and opening stock
0%
purchases adjusted for taxes, rebates and goods in transit
0%
purchases adjusted for closing stock and returns
0%
purchases adjusted for outstanding bills, prepaid etc.
Explanation
Adjusted purchases means opening stock plus purchases less closing stock. Closing stock has two effects. When one effect is included in trial balance by way of inclusion in adjusted purchases the other should also form part of trial balance.
Therefore, A is the correct option.
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers
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