We have compiled the NCERT MCQ Questions for Class 11 Accountancy Chapter 3 Recording of Transactions 1 with Answers Pdf free download covering the entire syllabus. Practice MCQ Questions for Class 11 Accountancy with Answers on a daily basis and score well in exams. Refer to the Recording of Transactions 1 Class 11 MCQs Questions with Answers here along with a detailed explanation.
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
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
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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