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CBSE Questions for Class 9 Elements Of Book Keeping And Accountancy Ledger Quiz 3 - MCQExams.com
CBSE
Class 9 Elements Of Book Keeping And Accountancy
Ledger
Quiz 3
Posting is the process of ___________.
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0%
Entering in the ledger information given in the Journal
0%
Sending invoices to the customers
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Entering an account in trail balance
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Transferring an amount from one account to another
Explanation
Posting is the process of e
ntering in the ledger information given in the Journal.
Interest received A/c will have ________.
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0%
Debit balance
0%
Credit balance
0%
Nil
0%
Debit or credit balance
Explanation
Interest received is an income therefore it is a Nominal Account.
The rule for Nominal Account is
Debit- All increase in expense or losses
Credit- All Increase in Income and Gains
As Interest received is an income therefore, it will have credit balance.
Fixed assets are purchased for the purpose of
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0%
Resale at profit
0%
Raising fund from banks on their security
0%
Production of goods and services
0%
All the three
Explanation
Fixed assets are purchased for the purpose of production of goods and services.
The main purpose of producing or supplying goods or services is for leasing to third parties, or for use in the company.
Hence c is the correct answer.
Sales A/c will have ________.
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0%
Debit Balance
0%
Credit Balance
0%
Nil
0%
Debit or Credit balance
Explanation
Sales account is a real account. Rule of real account says credit what goes out. Accordingly sale of goods are recorded as credit. Sales a/c will always have the credit balance.
Credit entry in a nominal A/c means __
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0%
Additional expense
0%
Reduction in expenses
0%
Cash payment
0%
Cash receipt
Explanation
As per the golden rules of the accounting, credit in nominal A/c will either result into increase in the income or decrease in the expenses.
Therefore, B is the correct option.
Cash discount on sales is termed as .......
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0%
Sales A/c
0%
Debtors A/c
0%
Discount allowed A/c
0%
Profit and loss A/c
Explanation
Cash discount on sales is an expense for the business therefore, it is debited to discount allowed account.
The Journal Entry would be
Cash a/c Dr.
Discount Allowed a/c Dr.
To Sales a/c
Capital Reverse is created
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0%
Out of revenue profit
0%
Out of capital profit only
0%
Both
0%
Either (A) or (B)
What is NOT required for ledger?
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0%
Date
0%
Using 'To' and 'By'
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In folio column page number of journal
0%
None of the above
Explanation
All the above mentioned things are required by journal
What does the balance in Memorandum Joint Venture A/c shows.
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0%
Closing stock
0%
Balance lying with bank
0%
Profit or loss
0%
Balance due from any partner
Explanation
The profit or loss of the particular business
will be represented by the balance of the memorandum joint venture account. Furthermore, the profit or loss will be transferred to each co venturer's profit-sharing ratio. Hence, the correct option is C.
What is total purchases
Opening stock Rs.$$20,000$$, Sales Rs.$$1,80,000$$, Gross profit margin $$20\%$$ of sales, Closing stock Rs.$$10,000$$
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Rs$$130,000$$
0%
Rs$$134,000$$
0%
Rs$$140,000$$
0%
Rs$$120,000$$
What would be gross profit from the following information:
Opening stock Rs. 20,000, Purchases Rs. 100000, Wages Rs.11,000,Sales Rs. 150,000, Closing stock 11,000
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0%
Rs. 30,000
0%
Rs. 20,000
0%
Rs. 19,000
0%
Rs. 41,000
X and Y enters into a Joint venture for sale of antique items, X send goods worth Rs 60000 to Y 3/4 of which were sold by Y for Rs 90000 and remaining were taken over by him at the same gross profit margin at which the goods were sold to the outside customers less 20% discount on such value. Y's A/c will be debited for the goods taken over by Rs ___
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0%
Rs 30000
0%
Rs 24000
0%
Rs 19500
0%
Rs 20000
Any entry on the debit side of a personal account means
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0%
Discount given to him
0%
Goods or services rendered or payment made to him
0%
Goods or services received from
0%
Commission gives to him
The term debit has been derived from the ..... word "debere".
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0%
French
0%
Latin
0%
English
0%
Germany
Explanation
Debit means
an entry recorded for a payment made or owed
. A debit entry is usually made on the left side of a ledger account.
The term debit has been derived from the Latin word "debere". Hence, the correct option is B.
The document listing the latest balances of all the accounts in the ledger on a given date is known as-
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0%
Trial balance
0%
Positional statement
0%
Income statement
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Charter of a/cs
Explanation
.
Goods send on sale or return basis would be recognised sales only when
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0%
When goods are returned
0%
When approval is received
0%
On 31st March
0%
As soon as the goods are sent
Explanation
Usually, when the goods are sold to the customer, they are immediately treated as sales and the revenue is recognized. However, when the goods are sold on approval or return basis the accounting treatment is different. The sale is recorded only when the goods are approved by the buyer.
Therefore, B is the correct option.
Which method of inventory valuation give in flated value of closing stock when prices are falling?
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0%
LIFO
0%
FIFO
0%
Base price
0%
Standard Cost
Trade discount is shown in ....
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0%
Cash book
0%
Profit and Loss A/c
0%
Purchase day book
0%
None
Explanation
It is a discount on the retail price of something allowed or agreed between traders or to a retailer by a wholesaler. Trade discount is not recorded in the books of accounts. Hence, the correct option is D.
suspense A/c is......
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0%
Nominal A/c
0%
Real a/c
0%
Personal A/c
0%
Can be of any nature
Explanation
A suspense account is an account used to temporarily store transactions for which there is uncertainty about where they should be recorded.
So it can either be Nominal or Personal or Real A/c.
Hence, the correct option is D.
Which of the following is a capital expenditure?
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0%
Cost of a stand by equipment
0%
Routine repair and maintenance
0%
Overhauling of plant
0%
White-wash of office building
Explanation
.
Which of these expenses is/are capitalized.
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Custom duty
0%
Installation expenses
0%
Provision for doubtful debts
0%
Transportation expenses
Which of these account(s) is/are never closed
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0%
Salary A/c
0%
Debtors A/c
0%
Purchase A/c
0%
Sales A/c
Explanation
Debtors A/c is never closed as it is a asset account.
All the Expenses and Income Accounts are closed at the end of the financial year. The balance of expenses or income accounts are transferred to Profit and loss A/c. But the balance of Asset account is shown in the balance sheet therefore, it is carried forward to next accounting year.
Which method of inventory valuation will report high value of closing stock when prices are rising?
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0%
LIFO
0%
FIFO
0%
Base price
0%
Standard Cost
Explanation
.
When prices are increasing continuously, which method of inventory valuation show lower value of closing inventory ___________.
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0%
FIFO
0%
LIFO
0%
Weighted average
0%
Average
Suspense A/c can have
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0%
Only credit balance
0%
Only debit balance
0%
Any balance
0%
No balance
Explanation
A suspense account is an account used to temporarily store transactions for which there is uncertainty about where they should be recorded. So it can either be Nominal or Personal or Real A/c
Its balance can be debit or credit balance.
Hence c is the correct answer.
Capital expenditure is generally intended to benefit __________.
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0%
More than one accounting year
0%
More than $$6$$ month
0%
Limited to $$6$$ month
0%
Benefit expires within the same accounting year
Explanation
Capital expenditure is generally intended to benefit more than one accounting year.
It is the money used to buy, improve, or extend the life of fixed assets in an organization, and with useful life for one year or more.
Hence a is the correct answer.
Balance of petty cash book is posted to ledger ______________.
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0%
In the cash account
0%
In the bank A/c
0%
Nowhere
0%
Either (a) or (b).
Explanation
A
petty cash book
is a
ledger
kept with the
petty cash
fund to record amounts that are added to or subtracted from its
balance
.
Petty cash
should be part of an overall business accounting system that documents how your business moves funds between one account and another and how it spends its money.
Total of Bills Payable Book is posted to the ledger ___________.
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0%
on the debit side of bills payable A/c
0%
on the credit side of
bills payable
A/c
0%
Either (a) or (b)
0%
None of the above
Explanation
The
total
of “
Bills Payable Book
” shows the
total
amount of
bills
accepted, which is
posted
on the Credit side of “
Bills Payable
Account”. Bills Payable are liability for business. Thus, show credit balance.
Choose the True statement.
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Accumulated depreciation A/c is never transferred to profit and loss A/c
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Depreciation is the process of valuation of an Asset
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All the fixed assets necessarily suffers depreciation
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Non-charging of depreciation is a criminal offence
How many column are found in a ledge......
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6
0%
5
0%
8
0%
2
Explanation
Ledger is known as the book of Principal Entry
The ledger has 8 columns.
The ledger is divided into 2 sides i.e., the Debit side and the credit side.
Each side has 4 columns namely - Date, Particulars, JF, Amount.
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Practice Class 9 Elements Of Book Keeping And Accountancy Quiz Questions and Answers
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