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CBSE Questions for Class 11 Commerce Accountancy Recording Of Transactions - Ii Quiz 8 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Recording Of Transactions - Ii
Quiz 8
On the debit side of a Sales a/c entry can be for which of these reasons
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0%
Sales returns
0%
Discount allowed
0%
Both
0%
Additional sales
Explanation
Sales returns and discounts are permitted on the debit side of the sale a/c.
Because sales have a credit balance, any sale return or discount reduces the sale value, so it is recorded on the debit side of the sale account.
Hence c is the correct answer.
Balance in petty cash book represents.
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0%
Outstanding expenses
0%
Prepaid expenses
0%
Cash balance
0%
Net profit
Explanation
Balance in petty cash book represents cash balance
Which of these transaction is shown as contra entry-
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0%
Cash deposited with bank
0%
Discount received
0%
Discount allowed
0%
Payment to sundry creditor
Explanation
Contra Entry is an entry that affects both cash account and bank account. Cash deposited with the bank has affected both cash and bank ba;ances therefore, it is a
contra entry
.
It is will be recorded with the symbol "c" in the L.F. column of the Double Column Cash Book.
Purchase a/c does not include
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0%
Cash purchases of trading goods
0%
Credit purchases of trading goods
0%
Purchase of fixed assets
0%
All the three
Explanation
A purchase involves the acquisition of goods or services in exchange for a payment of some kind. The payment is usually in cash or credit (to be paid later). A purchase may also be part of a barter transaction where different non-cash assets are exchanged, or it may be in exchange for the assumption of a liability. It does not include the purchase of fixed assets because business does not deal in it.
Therefore, C is the correct option.
Double entry of which of the following transactions is completed in the Cash Book itself _______________.
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0%
Paid rent by cheque
0%
Withdrew from bank for personal use
0%
A cheque received from a customer deposited into bank on the same day
0%
Cash deposited into the bank
Explanation
In double column cash, the two columns are cash and Bank.
The entry for cash deposited into bank will be
Bank a/c Dr.
To Cash a/c
Therefore, both the affects will be recorded in cash book only.
The Cash Book records ________________.
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0%
All Cash Receipts
0%
All Cash Payments
0%
All Cash Receipts and Payments
0%
Cash and Credit Sale of Goods.
Explanation
Cash Book is a subsidiary book which records all the cash receipts and cash payments. The Balance of Cash book can never be credit as it always has debit balance or zero balance.
There are mainly Four types of Cash Books
1. Simple Cash book
2. Two column Cash Book
3.
Three Column Cash Books.
4. Petty Cash Book
Purchase day book is a part of the ledger.
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0%
True
0%
False
Explanation
Purchase day book is the subsidiary book. Subsidiary books are the sub-divisions of "Journal". These books are meant for recording the transactions of similar nature in a separate book. When there are many transactions, the journal is divided into subsidiary books to record such voluminous and events in one single book. these books also called as " Special journal or Special purpose book or Book of original or Prime entry". For e.g. All the cash transactions are recorded in one book i.e. Cash book. Thus, cash book, sales book, purchase book etc. are examples of subsidiary book.
The opening balance on the debit side of the bank column in Cash Book indicates ___________.
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0%
The total amount withdrawn from the bank
0%
The total amount deposited in the bank
0%
Cash at bank
0%
Bank overdraft.
Explanation
The opening balance on the debit side of the bank column in Cash Book indicates
Cash at the bank. If it is on the credit side then it indicates the Bank Overdraft.
In Cash Book , all cash related transactions are recorded.
There are mainly 4 types of Cash Book
1. Single Column Cash Book
2. Double Column Cash Book
3. Triple Column Cash Book
4. Petty Cash Book
Sales day book makes a record of all sales.
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0%
True
0%
False
Explanation
Sales day books is the subsidiary book used to record the translations related to sales. Sales book records only credit sale of goods. It does not record cash sales of goods or credit sale of assets. Sales account is always credited for sale, so the sales book always show credit balance. The sales journal is also totalled periodically and this total is credited to sales account in the ledger.
The balance in the Petty Cash Book represents expenses.
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0%
True
0%
False
Explanation
The balance in the Petty Cash Book represents cash balance
Discount column should be balanced in the Cash Book.
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0%
True
0%
False
Explanation
Discount columns are not to be balanced. They are to be totalled on the debit side and credit side separately. The total of discount column on the debit side represents total discount allowed to customers and is debited to discount allowed account.
Therefore, B is the correct option.
The Sales Day Book is a part of ledger.
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0%
True
0%
False
Explanation
Sales day book is the subsidiary book. Subsidiary books are the sub-divisions of "Journal". These books are meant for recording the transactions of similar nature in a separate book. When there are many transactions, the journal is divided into subsidiary books to record such voluminous and events in one single book. these books also called as " Special journal or Special purpose book or Book of original or Prime entry". For e.g. All the cash transactions are recorded in one book i.e. Cash book. Thus cash book, sales book, purchase book etc. are examples of subsidiary book.
Purchase book records all purchase of goods.
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0%
True
0%
False
Explanation
All goods purchased on credit is recorded under Purchase Book. Only credit purchases are recorded in Purchase book and not cash purchases. Goods means those things that are purchased or produced for resale in business. Any purchase of asset is not recorded in Purchase book.
Whenever goods are purchased on credit purchase account is debited (as per the rule, "Debit what comes in") i.e. goods comes in, hence purchase account is debited.
The document on the basis of which purchase book is prepared is known as "Credit memo".
If Sandeep sold goods for Cash, it will be recorded in _____________.
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0%
Sales Book
0%
Cash Book
0%
None of these
0%
Both of these
Explanation
The Journal Entry for the above transaction will be
Cash a/c Dr.
To Sales a/c
(Being goods sold for cash)
As cash is involved in this transaction, therefore, it will be recorded in the cash book.
Purchase Book records all credit purchases of goods.
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0%
True
0%
False
Explanation
All goods purchased on credit is recorded under Purchase Book. Only credit purchases are recorded in Purchase book and not cash purchases. Goods means those things that are purchased or produced for resale in business. Any purchase of asset is not recorded in Purchase book.
Whenever goods are purchased on credit purchase account is debited (as per the rule, "Debit what comes in") i.e. goods comes in, hence purchase account is debited.
The document on the basis of which purchase book is prepared is known as "Credit memo". For example, if a business deals in cloth, credit purchases 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.
Accounting for partial recovery from Mr. Ram of an amount earlier written off as bad debt will be recorded in _________.
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0%
journal proper (General Journal)
0%
sales book
0%
purchase
book
0%
cash
book
Explanation
As partial amount is received in cash therefore, it will be recorded in cash book.
A bills receivable received from a debtor is dishonoured on due date will be recorded in _______________.
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0%
Purchases Return Book.
0%
Bills receivable Book.
0%
Purchases Book.
0%
Journal Proper (General Journal).
Explanation
Journal Entry for dishonour of bill
Debtor A/c Dr. XXX
To B/R A/c XXX
(Being bill dishonoured)
Therefore, D is the correct option.
Unpaid salary Rs. 200 is to be provided for in the accounts by entry in the ____________.
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0%
bill receivable book
0%
purchases
book
0%
journal proper (General Journal)
0%
purchases return.
Explanation
A book is maintained to record transaction, which do not find place in special journals, is known as journal proper or journal residual.
Unpaid salary will not be recorded in Bills receivable book, Purchases return book and Purchases book.
Therefore, C is the correct option.
The total of the sales book is posted to _________.
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0%
the credit of the sales account
0%
credit of the purchases
account
0%
credit of the capital
account
0%
credit of trading
account
Explanation
Sales book is a subsidiary book that records all the credit sales of the goods. It is totalled normally on a monthly basis and the total will be posted to the credit side of the Sales A/c. The total of the Sales book is not entered but posted to the Sales A/c because it is transferred from the sales book.
Credit purchase of stationery by a stationery dealer will be recorded in __________.
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0%
purchase book
0%
sales book
0%
cash book
0%
journal proper (General Journal).
Explanation
Purchases book records all credit purchase transactionss.
Purchases book is used to record all ______________.
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0%
purchases of goods
0%
credit purchases
0%
credit purchases of goods
0%
credit purchases of assets other than goods.
Explanation
All goods purchased on credit is recorded under Purchase Book. Only credit purchases are recorded in Purchase book and not cash purchases. Goods means those things that are purchased or produced for resale in business. Any purchase of asset is not recorded in Purchase book.
Whenever goods are purchased on credit purchase account is debited (as per the rule, "Debit what comes in") i.e. goods comes in, hence purchase account is debited.
The sales book
is a part of _________.
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0%
journal
0%
ledger
0%
balance sheet
0%
trading A/c.
Explanation
Sales day book is the subsidiary book. Subsidiary books are the sub-divisions of "Journal". These books are meant for recording the transactions of similar nature in a separate book. When there are many transactions, the journal is divided into subsidiary books to record such voluminous and events in one single book. these books also called as " Special journal or Special purpose book or Book of original or Prime entry". For e.g. All the cash transactions are recorded in one book i.e. Cash book. Thus cash book, sales book, purchase book etc. are examples of subsidiary book.
Total of journal proper will be debited to __________.
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0%
cash account
0%
customer's account
0%
supplier's account
0%
none of these
Sales Book is used to record all __________.
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0%
sales of goods
0%
sales returns
0%
credit sales of assets other than goods
0%
credit sales of goods.
Explanation
Sales books is the subsidiary book used to record the translations related to sales. Sales book records only credit sale of goods. It does not record cash sales of goods or credit sale of assets. Sales account is always credited for sale, so the sales book always show credit balance. The sales journal is also totalled periodically and this total is credited to sales account in the ledger.
Which of the following is correct?
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0%
Cash book is a journal and not a ledger
0%
Cash book is a ledger and not a journal
0%
Cash book is both a journal and a ledger
0%
Cash book is neither a journal nor a ledger
Explanation
The Separate ledger account is prepared for all cash receipts and cash payments. This Ledger is known as Cash Account.
While the cash book which is called as journal book records all the cash receipts and cash payments therefore, it is same as ledger.
Therefore, a
cash book serves both journal and ledger purposes.
Petty cash may be used to pay ______________________.
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0%
The expenses relating to passages and conveyance
0%
Salaries and wages to the manual staff
0%
For the purchase of furniture and fittings
0%
None of these.
Explanation
Petty cash may be used to pay the expenses relating to passages and conveyance.
Journal Proper is used to record ____________.
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0%
all cash purchases of assets other than goods
0%
all cash sales of assets other than goods
0%
returns of fixed assets purchased on credit
0%
recovery of an amount already written off as bad debt
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.
Single Column Cash Book may show ______________.
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0%
only a debit balance
0%
only a credit balance
0%
either debit balance or a credit balance
0%
neither debit nor credit balance.
Explanation
Its shows only debit balance as a business can spend more than it it have. Therefore, there cannot be a negetive cash.
A cheque received and deposited in 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%
Credited in the cash book
0%
Debited in the cash book.
Explanation
A cheque received and deposited in the bank on the same day is recorded in the
bank column of the cash book.
The Journal Entry for the same is
Bank a/c Dr.
To Cash a/c
(Being cheque deposited in bank)
If the debit as well as the credit aspects of a transaction are recorded in the cash book itself, it is called ______________.
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0%
An opening entry
0%
A compound entry
0%
A transfer entry
0%
A contra entry.
Explanation
Contra Entry
is an
entry
which is recorded to reverse or offset an
entry
on the other side of an account. If a debit
entry
is recorded in an account,
contra entry
will be recorded on the credit side and vice-versa.
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers
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