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

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: (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

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

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

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: (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.

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

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

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

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.

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.

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

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

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.

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

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: (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.

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

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

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

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

Fill in the blanks

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Answer: Journal book and Subsidiary book

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

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

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

State True or False:

Question 1.
Assets = Liabilities – Capital.

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

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

Question 4.
Assets – Liabilities = Capital.

Question 5.
No need of voucher to be written.

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

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

Question 8.
Cash – book always shows debit balance.

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

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

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

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

Question 13.
Ledger book does not possess legal acceptability.

Question 14.
In ledger narration is not required.

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.

 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.

 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

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

Answer: Double column cash – book

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

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

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

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

Question 6.
On which date account are closed?

Answer: Last day of the month or year

Question 7.
Sales account always shows which balance?

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