Recording Of Transactions 2(11th Grade > Accountancy ) Questions and answers for exam Preparation

11th Grade > Accountancy

RECORDING OF TRANSACTIONS 2 MCQs

Total Questions : 30 | Page 3 of 3 pages

Question 21. Which account is credited to record the issue of petty cash fund ?

Cash account
Petty cash account
Bank account
None

Discuss Question

Answer: Option A. -> Cash account
:
A
The cash account is credited.

Question 22. An entry which is made on both sides of a cash book is called ___.

Cash Entry
Payments Entry
Contra Entry
Compound Entry

Discuss Question

Answer: Option C. -> Contra Entry
:
C
An entry which is made on both sides of a cash book is called Contra Entry.

Question 23. If the total of the credit side exceeds the total of debit side, then after balancing of the account, which of the following will be true?

Debit side of the ledger account will be more than the credit side
Credit side of the ledger account will be more than the debit side
Both sides will have the same total
None of the above

Discuss Question

Answer: Option C. -> Both sides will have the same total
:
C
Both sides will have the same total after balancing.

Question 24. David wants to replenish the Rs150 petty cash fund. He has receipts for the following total payments: supplies, Rs36; and postage (Office Expense), Rs27. A cash count shows Rs87 in the petty cash box. What is the correct journal entry to record the transaction?

Debit Cash Rs63 and credit Miscellaneous Expense Rs63
Debit Miscellaneous Expense Rs63 and credit Cash Rs63
Debit Office Expense Rs27, debit Supplies Rs36 and credit Petty Cash Rs63
None of these

Discuss Question

Answer: Option C. -> Debit Office Expense Rs27, debit Supplies Rs36 and credit Petty Cash Rs63
:
C
Debit Office Expense Rs27, debit Supplies Rs36 and credit Petty Cash Rs63

Question 25. Which of the following is incorrect as regards to the Purchases Book.

Purchase Day book (Purchase Register)is the book of original entry in which all the transactions relating to only credit purchase are recorded.
Credit purchases do not find place in purchase day book as they are recorded in Cash book.
The total of purchase book is debited to the purchase account.
None of these

Discuss Question

Answer: Option B. -> Credit purchases do not find place in purchase day book as they are recorded in Cash book.
:
B
Cash purchases do not find place in purchase day book as they are recorded in Cash book.

Question 26. When balance of an account is a debit balance, on which side of the ledger account is the entry for balancing done?

Debit
Credit
shall not be balanced
None of the above

Discuss Question

Answer: Option B. -> Credit
:
B
When balance of an account is a debit balance, the entry for balancing is done on credit side of ledger.

Question 27. Cash received from debtors is recorded in which of the following specialized journals?

Purchase Book
Sales Book
Cash Book
General Journal

Discuss Question

Answer: Option C. -> Cash Book
:
C
Cash received from debtors is recorded in Cash Book.

Question 28. The total of Purchase Return book is posted to the ___ of purchases return account.

Debit
Credit
Either debit or credit
None of the above

Discuss Question

Answer: Option B. -> Credit
:
B
Purchase returnaccount is always credited with the amount of purchase return book as sundries.

Question 29. Cash purchases is recorded in which of the following specialized journals?

Purchase Book
Sales Book
Purchase Return Book
Cash Book

Discuss Question

Answer: Option D. -> Cash Book
:
D
Cash purchases are recorded in a cash book.

Question 30. A sales book is :

A book of prime entry in which all sales are recorded
A book of prime entry in which all cash sales are recorded
A book of prime entry in which all credit sales are recorded
A summary of sale of goods in trade as well as acquired for use in business

Discuss Question

Answer: Option C. -> A book of prime entry in which all credit sales are recorded
:
C
A sales book is a book of prime entry in which all credit sales are recorded.