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CBSE Questions for Class 11 Commerce Accountancy Recording Of Transactions - Ii Quiz 9 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Recording Of Transactions - Ii
Quiz 9
Sale of typewriter that has been used in the office should be credited to __________.
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0%
Sales A/c
0%
Cash A/c
0%
Capital A/c
0%
Typewriter A/c
Explanation
Assets are the properties either tangible or intangible owned by a business.
Assets purchased by the business are not meant for the sale.
As per the golden rules of accounting, in real accounts we should Dr. what comes in and Cr. what goes out.
In the given question, we are given a fixed asset (typewriter) which we are selling, therefore asset account (typewriter) would be credited.
An allowance was offered for an early payment of cash will be recorded in the ___________.
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0%
sales book
0%
cash
book
0%
journal proper (General Journal)
0%
purchase
book
Explanation
An allowance was offered for an early payment of cash will be recorded in the cash book as cash is involved in it.
Which of the following is the kind of a cash book?
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Single column cash book
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Double column cash book
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Three-column cash book
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All of the above
Explanation
There are three common versions of the
cash book
: single column, double column, and triple column.The single column
cash book
shows only receipts and payments of
cash
. The double column
cash book
shows
cash
receipts and payments as well as details about bank transactions.
When a firm maintains a simple Cash Book, it need not maintain ____________.
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0%
sales journal
0%
purchases journal
0%
general journal
0%
cash account in the ledger
Explanation
When a firm maintains a simple Cash Book, it need not maintain
cash account in the ledger.
When the venturer recording transactions brings goods into joint venture, then these are credited to _______________.
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0%
Joint venture account.
0%
Purchases account.
0%
Neither of the two.
0%
Sales A/c.
On purchase of old furniture, the amount spent on its repair should be debited to _________.
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0%
Repair Account
0%
Furniture Account
0%
Cash Account
0%
Bank Account
Explanation
The furniture is an asset. What comes in business will be debited. In this transaction, furniture comes in the business. Hence, "Furniture A/c" is debited and the capital expenditure spent for asset is also debited. In this transaction amount spent on repairs of old furniture should be debited to "Furniture a/c". We paid cash for purchasing old furniture hence, "Cash A/c" is credited.
The journal entry for this transaction is:
Furniture A/c........Dr.
To Cash A/c
Sales to Ram of Rs. 336, were not recorded. This will affect _________.
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0%
only sales account
0%
only Ram's account
0%
both (A) and (B)
0%
none of the accounts
Explanation
If a transaction remains altogether unrecorded in the journal i.e. the book of original entry, it will be termed as an error of omission. It is termed as a two-sided error and such error will not affect the agreement of trial balance because the transaction is altogether omitted from being recorded in the books of accounts. As the transaction is not recorded in the books it will affect both the accounts of entry i.e. Sale account and Ram account.
Which of the following is an example of an adjusting entry?
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Recording the purchase of goods on account.
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Recording depreciation of a truck.
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Recording the billing of customers for services rendered.
0%
Recording the payment of wages to employees.
The technique of finding the net balance of an account after considering the totals of both debits and credits appearing in the account is known as _________.
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0%
posting
0%
purchase
0%
balancing of an account
0%
arithmetical accuracy test
Explanation
Balancing of an accounts means ascertaining the net effect of the transactions, i.e. the difference between the debit and credit side of the ledger account. Thus, when the debit side of the ledger account exceeds the credit side, the balancing figure is termed as debit balance and vice versa. All the assets, expenses and losses show debit balance. Whereas, all liabilities, incomes and gains and capital show credit balance.
When a cheque received is endorsed, it must be entered on _____________.
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0%
Credit side of the cash book only
0%
Debit side of the cash book only
0%
Both sides of the cash book
0%
No where
Explanation
A bearer cheque received from a party and not deposited in the bank, can be given to any third party for making the similar payment to the latter. This is known as endorsement. On endorsement of cheque to the third party the cash column must be reduced so that it gets recorded in the cash column on the credit side of the cash book. It should be noted that when the cheque was received, it must have been recorded in the cash column on the debit (receipt) side of the cash book.
X Y entered into a Joint Venture to undertake the public issue of ABC Ltd. The company invited application for allotment of 2,00,000 shares at Rs.The issue was subscribed to the extent to 90% and the remaining were taken by Y. They agreed to share profit and loss in the ratio of 2:The shares undertaken by X Y were subsequently sold at a premium of 40 per share. How many shares were undertaken by X Y?
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0%
20,000
0%
25,000
0%
18,000
0%
30,000
A and B enter into joint venture sharing profit and loss equally. A purchased 1000 kg of rice @ Rs. 20 per kg. Brokerage was paid Rs. 2000, carriage paid Rs. 3,B sold 900 kg of rice @ Rs. 22 per kg. Balance of rice were taken over by B at cost. The value of rice taken over to be recorded in joint venture will be _______________.
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0%
Rs. 2,000
0%
Rs. 2,500
0%
Rs. 2,300
0%
Rs. 2,200
Cash account will show ______________.
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0%
Debit or Credit balance
0%
A Credit balance
0%
A Debit balance
0%
None of the above
Explanation
Cash account will show a debit balance.
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.
While posting the Cash Payment from Cash Book___________.
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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 debited and there is no need to post the total of cash column
0%
The individual accounts are credited and the total of the cash column is debited
Explanation
While posting the Cash Payment from Cash Book
only the individual accounts are debited and there is no need to post the total of cash column.
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
Sales journal (also called day book) is used for recording ____________.
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0%
Cash sales
0%
Credit sales
0%
Total assets
0%
None of these
Explanation
Every sale transaction is entered in sales journal essentially results in a debit to accounts receivable account and credit to sales account. Sales day book records only credit sale of goods. It does not record cash sales of goods or credit sales of assets. Sales account always credited for sale, so the sales book always shows a credit balance.
Cash purchases are recorded in ______________.
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0%
Purchases Book
0%
Cash Book
0%
Purchases Returns Book
0%
Partly in Cash Book and partly in Journal Proper
Explanation
Cash purchase involves payment of cash therefore, it will be recorded in the cash book.
The process of equalizing the two sides of an account by putting the difference on the side where amount is short is known as _____________.
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0%
Balancing
0%
Posting
0%
Journalizing
0%
None of above
Explanation
Balancing an account means the process of equalizing the two sides of an account by putting the difference on the side where the amount is short.
Hence, process of equalizing the two sides of an account by putting the difference on the side where the amount is short is known as balancing.
So option a is the correct answer.
Purchases journal (also called Purchase book or Invoice book or Invoice journal) is used for recording ________________.
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0%
Cash purchases
0%
Credit purchases
0%
Total purchases
0%
None of these
Explanation
All goods purchased on credit is are recorded in the 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".
Purchases book is meant for recording the _______ of goods.
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0%
credit purchase
0%
cash purchase
0%
budgeted purchases
0%
both A and B
Explanation
There are special purposes books in accounting system for some transactions such as for credit purchase entries are made in purchase book, for credit sales entries are made in sale book, cash transactions are recorded in cash book etc. Therefore credit purchase is recorded in purchase book.
The total of the purchases day book is posted periodically to the debit of ______________.
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0%
Purchases account
0%
Cashbook
0%
Journal proper
0%
None of these
Explanation
Purchase Day book
(
Purchase
Register)is the
book
of original entry in which all the transactions relating to only credit
purchase
are
recorded
. Cash
purchases
do not find place in
purchase day book
as they are
recorded
in Cash
book
.The every month total of purchase is to be posted on the debit side of the purchase account.
Sales for the year ended 31st March, 2005, amounted to Rs 10,00,Sales included goods sold to Mr. Ashok for Rs 50,000 at a profit of 20% on cost. Such goods are still lying in the godown at the buyer's risk. Therefore, such goods should be treated as part of ___________.
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0%
Sales
0%
Closing stock
0%
Goods in transit
0%
Sales return
Bank column of the Cash Book has __________ balance.
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0%
Debit
0%
Credit
0%
Either (a) or (b)
0%
Neither (a) nor (b)
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.
A business concern provides the following details:
Cost of goods sold
$$15,00,000$$
Sales
$$20,00,000$$
Opening stock
$$6,00,000$$
Closing stock
$$4,00,000$$
Debtors
$$4,50,000$$
Creditors
$$5,00,000$$
The concern's purchases would amount to__________.
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0%
$$Rs. 13,00,000$$
0%
$$Rs. 22,00,000$$
0%
$$Rs. 26,00,000$$
0%
$$Rs. 29,00,000$$
Explanation
The formula for calculating cost of goods sold is:
COGS = Beg. inventory + Purchases During the year - Ending inventory
Hence, $$Rs.$$ 15,00,000 = $$ Rs. $$ 6,00,000 + Purchases - $$ Rs. $$ 4,00,000
Purchases =
$$Rs.$$ 15,00,000 -
$$ Rs. $$ 6,00,000 +
$$ Rs. $$ 4,00,000
Purchases = $$ Rs. $$ 13,00,000
At the end of the accounting year, ______ are to be passed for outstanding/prepaid expenses, accrued income/income received in advance etc.
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0%
Transfer Entries
0%
Adjustment Entries
0%
Closing Entries
0%
Opening Entries
Explanation
At the end of the accounting year, adjusting entries are to be passed for outstanding/prepaid expenses, accrued income/income received in advance etc.
Therefore, B is the correct option.
Purchased goods for $$Rs.90,000$$ from Mr. Nikhil on credit will be recorded in ______________.
Report Question
0%
sales book
0%
purchase book
0%
journal proper (general journal)
0%
cash book
Explanation
Purchase book also known as purchase journal is an accounting ledger in which all credit purchases of trading goods are recorded.
For example: purchased goods for $$Rs. 10,000$$ from Ram on credit will be recorded in purchase day book.
Rent due for the month of March will appear _______________.
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0%
On the payment side of the cash book
0%
On the receipt side of the cash book
0%
Nowhere in the cash book
0%
As a contra entry
Petty Cash Book may be treated as a __________________.
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0%
Part of the double entry system
0%
Merely as a memoranda book
0%
Either (A) or (B)
0%
None of the above
Explanation
Petty Cash Book may be treated as a
Merely as a memoranda book
Payments in cash of small amounts like travelling expenses, postage, carriage etc. are recorded in the ________________.
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0%
Main Cash book
0%
Petty cash book.
0%
Cash budget
0%
Journal proper
Explanation
Payments in cash of small amounts like travelling expenses, postage, carriage etc. are recorded in the Petty Cash Book.
The Cashier who maintains the Petty cash Book is known as Petty Cashier.
There are two types of Petty Cash Book
1. Simple Petty Cash Book
2. Analytical Petty Cash Book
Cash Book is in the form of _____________.
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0%
Journal
0%
An account
0%
Statement
0%
All of the above
Explanation
Cash book is same as a ledger account.
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
Purchases day book records ____________.
Report Question
0%
all cash purchases
0%
all credit purchases
0%
credit purchases of trading goods
0%
all of the above
Explanation
A purchase day book is an accounting ledger in which transactions related to credit purchases of trading goods are recorded. Cash purchases do not find place in purchase day book as they are recorded in cash book. Also credit or cash purchases of the assets are not recorded in the purchase book as they are the assets and not goods traded by the firm. Such purchase book is also known as purchase journal.
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Practice Class 11 Commerce Accountancy Quiz Questions and Answers
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