MCQ Questions for Class 11 Accountancy Chapter 3 Recording of Transactions 1 with Answers

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Recording of Transactions 1 Class 11 MCQs Questions with Answers

Choose the correct option.

Question 1.
Which of the following equation’s correct?
(a) Assets = Liabilities – Capital
(b) Assets = Capital – Liabilities
(c) Assets = Liabilities + Capital
(d) Assets = External Equities

Answer

Answer: (c) Assets = Liabilities + Capital


Recording of Transactions 1 with Answers

Question 2.
Which of the following is correct?
(a) Profit/Loss = Closing Capital + Additional Capital – Drawings – Opening Capital
(b) Profit/Loss = Closing Capital-Drawings-Additional Capital – Opening Capital
(c) Profit/Loss = Opening Capital + Drawings made – Additional Capital – Closing Capital
(d) Profit/Lose = Closing Capital + Drawings made – Additional Capital – Opening Capital

Answer

Answer: (d) Profit/Lose = Closing Capital + Drawings made – Additional Capital – Opening Capital


Recording of Transactions 1 Questions with Answers

Question 3.
The liabilities of a firm are Rs. 60,000 and the capital of the proprietor is Rs. 40,000. The total assets are:
(a) 60,000
(b) 1,00,000
(c) 20,000
(d) 40,000

Answer

Answer: (b) 1,00,000


Question 4.
If a film borrows a sum of money, there will be
(a) Increase in capital
(b) Decrease in capital
(c) No effect on capital
(d) None of the above

Answer

Answer: (a) Increase in capital


Question 5.
Debit Means
(a) an increase in asset
(b) a decrease in asset
(c) an increase in liability
(d) an increase in capital

Answer

Answer: (a) an increase in asset


Question 6.
Journal is a book of in accounting.
(a) All non-cash transactions
(b) Secondary entry
(c) Original entry
(d) All cash transaction.

Answer

Answer: (c) Original entry


Question 7.
The following account has a debit balance
(a) Creditor’s A/c
(b) Capital A/c
(c) Building A/c
(d) Loan A/c

Answer

Answer: (c) Building A/c


Question 8.
Ledger is a book of …………. in accounting.
(a) All non-cash transactions
(b) Secondary entry
(c) Original entry
(d) All cash transactions

Answer

Answer: (b) Secondary entry


Question 9.
The process of recording a business transaction in the journal is called
(a) Costing
(b) Balancing
(c) Posting
(d) Journalising

Answer

Answer: (d) Journalising


Question 10.
Which of the following is a cash transaction?
(a) Sold goods
(b) Sold goods to Ravinder
(c) Sold goods to Ravinder on credit
(d) Sold goods to Ravinder on account.

Answer

Answer: (a) Sold goods


Question 11.
The Mathematical Expression defining the comparative relationship between Assets and Liabilities of any person, institution or Business concern is called-
(a) Accounting
(b) Accounting Equation
(c) Book – keeping
(d) None of these.

Answer

Answer: (b) Accounting Equation


Question 12.
Liabilities and Assets amount to Rs. 50,000 and Rs. 7,800 respectively. The difference Amount shall represent-
(a) Creditors
(b) Debentures
(c) Profit
(d) Capital.

Answer

Answer: (d) Capital.


Question 13.
The basis of recording transactions is-
(a) Vouchers
(b) Profit
(c) Order form
(d) Quotation list.

Answer

Answer: (a) Vouchers


Question 14.
As per American Belief, Accounts are of how many types-
(a) Two
(b) Three
(c) Five
(d) Four.

Answer

Answer: (c) Five


Question 15.
Which of the following is entered in cash – book-
(a) Only cash transactions
(b) Only credit transactions
(c) Both cash and credit transactions
(d) None of these.

Answer

Answer: (a) Only cash transactions


Question 16.
Cash – book always show-
(a) Debit balance
(b) Credit balance
(c) Debit or Credit balance
(d) None of these.

Answer

Answer: (a) Debit balance


Question 17.
The cash – book meant for recording petty expenses is called-
(a) Simple cash – book
(b) Petty cash – book
(c) Triple column
(d) None of these.

Answer

Answer: (b) Petty cash – book


Question 18.
The entry which affects cash and bank column of a triple column cash – book is known as-
(a) Compound entry
(b) Contra entry
(c) Journal entry
(d) None of these.

Answer

Answer: (b) Contra entry


Question 19.
What statement is used while closing a Drawing Account-
(a) Balance c/d
(b) By Trading A/c
(c) By P & L A/c
(d) By Capital Account.

Answer

Answer: (d) By Capital Account.


Question 20.
The entry which is passed for bringing forward the balances of personal and Real Account as shown in the last year’s balance sheet is called-
(a) Closing entry
(b) Journal entry
(c) Opening entry
(d) None of these.

Answer

Answer: (c) Opening entry


Question 21.
The balance of good’s Account is transferred to-
(a) Profit and loss Account
(b) Trading Account
(c) Balance sheet
(d) None of these.

Answer

Answer: (b) Trading Account


Question 22.
Which Account is opened first in ledger book-
(a) Personal
(b) Real
(c) Non – real
(d) None of these.

Answer

Answer: (a) Personal


Question 23.
How many columns are there in a Ledger (in one side)-
(a) Six
(b) Four
(c) Five
(d) Seven.

Answer

Answer: (b) Four


Fill in the blanks

Question 1.
The accounting voucher are based on …………….

Answer

Answer: Supporting


Question 2.
Both debit and credit aspects of a transaction are shown by …………… vouchers.

Answer

Answer: Transfer


Question 3.
Accounting equation satisfies the …………….. concept of accounting.

Answer

Answer: Dual


Question 4.
Liabilities = ……………….. – Capital

Answer

Answer: Assets


Question 5.
Accounting equation serves as a basis for preparing …………….

Answer

Answer: Balance Sheet


Question 6.
Journalising is the process of entering transactions in ………………

Answer

Answer: Journal


Question 7.
The explanation of a Journal entry is known as ……………….

Answer

Answer: Narrations


Question 8.
Transactions, when recorded in journal, are known as ………………

Answer

Answer: Entries


Question 9.
Ledger account gives the folio of ………………….

Answer

Answer: Journal


Question 10.
The balance of capital account is usually ………………… balance.

Answer

Answer: Credit


Question 11.
Only …………… transactions are recorded in cash – book.

Answer

Answer: Cash


Question 12.
Cash – book is a main book as well as …………… book.

Answer

Answer: Subsidiary


Question 13.
…………. entry is passed in triple column cash – book for depositing cash in bank.

Answer

Answer: Contra


Question 14.
Advancing money to petty cashier is called ……………

Answer

Answer: Float


Question 15.
Contra entry is made in …………… book.

Answer

Answer: Cash


Question 16.
Ledger posting is done on the basis of ……………..

Answer

Answer: Journal book and Subsidiary book


Question 17.
…………… of transaction is not written in Ledger Account.

Answer

Answer: Narration


Question 18.
The recording of page number from subsidiary books to Ledger book and vice versa is called ……………..

Answer

Answer: Folioing


Question 19.
The balance of Income and Expenditure Accounts is transferred to ……………..

Answer

Answer: Profit and loss Account.


State True or False:

Question 1.
Assets = Liabilities – Capital.

Answer

Answer: False


Question 2.
The sum of Assets is equal to the sum of liabilities.

Answer

Answer: True


Question 3.
Capital Account represents owner’s Account in Business.

Answer

Answer: True


Question 4.
Assets – Liabilities = Capital.

Answer

Answer: True


Question 5.
No need of voucher to be written.

Answer

Answer: False


Question 6.
Cash – book is only a subsidiary book.

Answer

Answer: False


Question 7.
When a cheque is received, it is recorded in both sides of cash – book?

Answer

Answer: False


Question 8.
Cash – book always shows debit balance.

Answer

Answer: True


Question 9.
The cash balance as per cash-book is tallied daily with the physical cash balance.

Answer

Answer: True


Question 10.
The word ‘By’ should be used always while making and entry in debit side of an account.

Answer

Answer: False


Question 11.
The debit balance of personal accounts denotes debtors.

Answer

Answer: True


Question 12.
The balance of goods accounts is transferred to trading account.

Answer

Answer: True


Question 13.
Ledger book does not possess legal acceptability.

Answer

Answer: False


Question 14.
In ledger narration is not required.

Answer

Answer: False


Match the following:

Question 1.

Column A Column B
1. Increase of Assets & Liabilities (a) Investment of capital in business.
2. Decrease of Assets and Liabilities (b) Drawings or Expenses.
3. Increase of Capital and Assets (c) Payment of Liabilities.
4. Decrease of Capital and Assets (d) Credit purchase of Assets.
Answer

Answer:

Column A Column B
1. Increase of Assets & Liabilities (d) Credit purchase of Assets.
2. Decrease of Assets and Liabilities (c) Payment of Liabilities.
3. Increase of Capital and Assets (a) Investment of capital in business.
4. Decrease of Capital and Assets (b) Drawings or Expenses.

Question 2.

Column A Column B
1. Amount withdrawn from bank (a) Credit
2. Petty cash book (b) Debit
3. Balance of cash-book (c) Contra entry
4. Bank overdraft (d) Petty cashier.
Answer

Answer:

Column A Column B
1. Amount withdrawn from bank (c) Contra entry
2. Petty cash book (d) Petty cashier.
3. Balance of cash-book (b) Debit
4. Bank overdraft (a) Credit

Answer in one word/sentence:

Question 1.
The book used for recording cash and bank related transactions is.

Answer

Answer: Double column cash – book


Question 2.
Which book is maintained to record day – to – day expenses?

Answer

Answer: Petty cash – book


Question 3.
Mention any transaction for which contra entry will be done.

Answer

Answer: Cash deposited in bank


Question 4.
Which side of cash – book records all cash payments?

Answer

Answer: Credit side.


Question 5.
The book in which accounts relating to person, goods, income and expenditure is maintained and transactions are recorded is called.

Answer

Answer: Ledger book


Question 6.
On which date account are closed?

Answer

Answer: Last day of the month or year


Question 7.
Sales account always shows which balance?

Answer

Answer: Credit balance


Question 8.
The process of totaling the debit and credit side of a ledger account is called.

Answer

Answer: Closing of account.


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