MCQ Question for Accountancy Class 11 With Answers Chapter 3 Recording of Transactions – I

Check the below NCERT MCQ Class 11 Accountancy Chapter 3 Recording of Transactions – I with Answers available with PDF free download. MCQ Questions for Class 11 Accountancy with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below Recording of Transactions – I Class 11 Accountancy MCQs Questions with answers which will help students to revise and get more marks in exams

Recording of Transactions – I Class 11 Accountancy MCQs Questions with Answers

Refer below for MCQs Recording of Transactions – I with solutions. Solve questions and compare with the answers provided below

Question. The business documents which serves as the evidence of the business transactions are known as
(a) First hand documents
(b) Bills
(c) Notes
(d) Source documents 

Question. A journal helps in maintaining the identity of each transaction by keeping a complete record of each transaction at one place on a permanent basis.
(a) True
(b) False
(c) Can’t say
(d) Partially true   

Question. Which of the following is/are advantage(s) of maintaining a journal?
(i) As transactions in journal are entered as and when they take place, the possibility of omission of a transaction in the books of accounts is minimised.
(ii) Journal facilitates cross checking of ledger accounts in case a trial balance does not agree.
(iii) It is bulky.
(a) Only (i)
(b) (i) and (ii)
(c) (i) and (iii)
(d) (i) (ii) (iii) 

Question. The book in which the transaction is recorded for the first time is called  ……… . 
(a) Ledger
(b) Journal
(c) Trial Balance
(d) None of these 

Question. Which of the following statements about source document is incorrect?
(i) They are required for audit and tax assessments.
(ii) They do not serve as legal evidence in case of a dispute.
(iii) These documents are written and authentic proof of the correctness of the recorded transaction.
(a) (ii) and (iii)
(b) Only (ii)
(c) Only (iii)  
(d) All of these 

Question. Source documents are also referred to as
(a) first information documents
(b) notes
(c) supporting documents
(d) invoices 

Question. Which written document is prepared by seller for goods sold against cash which acts as an evidence for both the seller and the purchaser of goods?
(a) Cash-in-slip
(b) Cash bill
(c) Cash memo
(d) Voucher 

Question. Which of the following statements about original copy of invoice/bill is correct?
(a) It is kept with seller for making records in books of accounts
(b) It is made for cash transactions
(c) It is sent to the purchaser
(d) All of the above 

Question. Journal is considered as the book of original entry.
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Question. Neeraj Ltd. is engaged in a laptop trading business the total assets of business are ₹ 10,40,000 and outside liabilities are ₹1,80,000. What will be the owner’s equity?
(a) ₹12,20,000
(b) ₹9,60,000
(c) ₹8,60,000
(d) Can’t be determined 

Question. Which of these information is present on invoice?
(i) Party to whom goods are sold
(ii) Goods sold
(iii) Total sale amount
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (i) and (iii)
(d) All of the above 

Question. Rates of items sold are not mentioned on cash memo.
(a) True
(b) False
(c) Patially true
(d) Can’t say 

Question. Debit note is sent to a ……… when the goods are ……… .
(a) customer, delivered
(b) supplier, delivered
(c) supplier, returned
(d) customer, returned 

Question. Which of the following source documents is used for depositing cash or cheques into bank?
(a) Counterfoil
(b) Pay-in-slip
(c) Cash slip
(d) Pay note 

Question. Cash vouchers are type of accounting vouchers which are prepared for cash transactions only. Which of the  following are types of cash vouchers? 
(a) Cash receipt vouchers and cash payment vouchers
(b) Debit vouchers and cheque vouchers
(c) Debit vouchers and credit vouchers
(d) Cheque vouchers and credit vouchers 

Question. The vouchers which are prepared for  transactions not involving cash, i.e. non-cash transaction, are known as  ……… vouchers.
(a) Credit
(b) Token
(c) Unilateral
(d) Transfer 

Question. Which of the following must be a characteristic of a standard voucher? 
(a) It should be printed on good quality paper
(b) Debit or credit amount should be written in figures against the amount
(c) Description of transaction should be given account wise
(d) All of the above 

Question. Rules of debit and credit are same for both liability and capital.
(a) True
(b) False
(c) Partially true
(d) Can’t say 

Question. Which of the following details is usually provided on the source documents?
(a) Nature of transaction
(b) Date
(c) Parties involved
(d) All of the above 

Question. Which of the following dates is irrelevant with respect to preparation of vouchers?
(a) Date of transaction
(b) Date of recording transaction
(c) Both (a) and (b)
(d) None of the above 

Question. Which of the following is mentioned on the vouchers at the top of the paper?
(a) Name of the person preparing it
(b) Amount of the transaction
(c) Signature of the person preparing it
(d) Name of the firm 

Question. Accounting vouchers are prepared for
(a) cash transactions
(b) non-cash transactions
(c) Both (a) and (b)
(d) None of the above 

Question. For which of the following, non-cash voucher is prepared? 
(a) Credit sale of goods
(b) Credit sale of investments
(c) Credit sale of fixed assets
(d) All of the above 

Question. For which of the following transactions, assets and capital will decrease by same amount? 
(a) Goods sold for cash
(b) Fixed asset purchased on credit
(c) Depreciation provided on fixed assets
(d) Goods sold for cash at a profit 

Question. Pay-in-slip is a form which is available from a bank having a counterfoil which is returned to the depositor with …… signature and bank’s stamp as receipt.
(a) depositor’s
(b) bank manager’s
(c) cashier’s
(d) Both (a) and (c) 

Question. A mathematical expression, which shows that the …… and …… of a firm are equal, is known as accounting equation. 
(a) liabilities and capital
(b) assets and capital
(c) liabilities and assets
(d) None of these 

Question. Accounting equation is also known as ……… equation.
(a) Balance sheet
(b) Arithmetic finance
(c) Fundamental
(d) Transactional 

Question. Each cheque has a counterfoil in which the same details as entered in the cheque are filled. The counterfoil remains with the ……… for future purposes.
(a) bank
(b) cashier
(c) account holder
(d) Both (b) and (c) 

Question. On the basis of source documents, entries are directly made in Journal.
(a) True
(b) False 
(c) Partially true
(d) Can’t say 

Question. A transaction may affect either both sides of the equation by the same amount or only one side of the equation by both increasing and decreasing it by equal amount.
(a) True
(b) False
(c) Partially true
(d) Can’t say 

Question. The page number of the ledger account where the posting has been made from the journal, is recorded in the ………. column of the journal.
(a) date
(b) debit
(c) credit
(d) ledger folio 

Question. Following are the steps involved in developing an accounting equation (in particular order). Arrange the steps incorrect sequence.
(i) Find out the effect (in terms of increase  or decrease) of a transaction on assets, capitals or liabilities.
(ii) Show the effect on appropriate side of an equation and ensure that the total of right hand side is equal to the total of left hand side.
(iii) Ascertain the variables (i.e. assets, liabilities or capital ) involved in a transaction.
(a) (i), (ii), (iii)
(b) (ii), (iii), (i)
(c) (iii), (i), (ii)
(d) (iii), (ii), (i) 

Question. When a trader sells goods on credit, he prepares a sale ……… which contains the name of the party to whom goods are sold, the rate, quantity and the total amount of sale.
(a) memo
(b) bill
(c) invoice
(d) Both (b) and (c) 

Question. In which situation, a source document containing the date of transaction, the name of account debited, the amount and the reasons for debit is prepared?
(a) When goods are returned to a supplier
(b) When goods are received from a customer
(c) Both (a) and (b)
(d) None of the above

Question. If a business transaction results in the increase of assets, there will also be a corresponding increase in the amount of 
(a) liabilities
(b) capital 
(c) both (a) and (b)
(d) All of these 

Question. Which source document is sent to inform about the credit made in account of buyer alongwith the reasons mentioned in it?
(a) Credit slip
(b) Credit bill
(c) Credit note
(d) Credit receipt 

Question. The design of the voucher has no set ormat and depends upon the nature,requirements and convenience of business.
(a) True
(b) False
(c) Partially true
(d) Can’t say 

Question. ……… vouchers are written documents prepared on the basis of supporting vouchers for accounting and recording purpose by an accountant and countersigned by authorised person
(a) Primary
(b) Secondary
(c) Source
(d) Both (b) and (c)   

Question. A duplicate copy of the credit note is retained by …… for record purpose. 
(a) buyer
(b) seller
(c) customer
(d) Both (b) and (c)   

Question. When cash is withdrawn by proprietor, what is its impact on accounting equation?
(a) Decrease in assets, decrease in liabilities
(b) Decrease in assets, decrease in capital
(c) Increase in assets, increase in liabilities
(d) Increase in assets, increase in capital 

Question. Which of the following is/are feature(s) of journal?
(i) It is a daily accounting record.
(ii) It records both credit and debit aspects of a transaction.
(iii) No explanation of the transactions is given.
(a) Only (i)
(b) (i) and (ii)
(c) (i) and (iii)
(d) (i) (ii) (iii) 

Question. Which of the following is a function of a journal?
(a) To keep a chronological record of all transactions.
(b) To provide the basis for posting into ledger.
(c) To analyse each transaction into debit and credit aspects by using double entry system of book keeping. 
(d) All of the above 

Question. There will be ……… by same amount, when a land is purchased by paying the amount from bank account.
(a) Increase in asset, increase in liabilities
(b) Increase in asset, decrease in liabilities
(c) Decrease in asset, decrease in liabilities
(d) Decrease in one asset, increase in another asset 

Question. A cheque is considered as an order in writing drawn upon a bank to pay a specified sum to the bearer or the person named in it only if it is dated and signed by the ……… .
(a) drawee
(b) drawer
(c) Both (a) and (b)
(d) bearer 

Question. When goods are returned to supplier, assets and ….. are …… by same amount.
(a) liabilities, increased
(b) liabilities, decreased
(c) assets, increased
(d) assets, decreased 

Question. Expenses tend to decrease the capital of business.
(a) True
(b) False
(c) Partially True
(d) Can’t say 

Question. What will be the effect on accounting equation for outstanding expenses? (Options are in format of assets, liabilities, capital).
(a) Decrease, Decrease, No change
(b) Decrease, No change, Decrease
(c) No change, Increase, Decrease
(d) Decrease, Increase, Decrease 

Question. In a journal, transactions are recorded in chronological order.
(a) True
(b) False
(c) Can’t say
(d) Partially true   

Question. When the number of accounts to be debited or credited is more than one, entry made for recording the transaction is called ……… journal entry.
(a) single
(b) compound
(c) normal
(d) None of these 

Question. For which of the following transactions, capital account will be increased and decreased by the same amount?
(a) Income received in advance
(b) Outstanding expenses paid
(c) Interest on drawings provided
(d) Bad debts on insolvency of a debtor 

Question. Services for which prepaid expenses were paid are now availed by Sonu Enterprises. What will be its effect on accounting equation?
(a) Increase in asset, increase in liabilities
(b) Increase in asset, increase in capital
(c) Decrease in asset, decrease in liabilities
(d) Decrease in asset, decrease in capital 

Question. Which source document is issued by a trader when he receives cash from the customer?
(a) Receipt
(b) Cash memo
(c) Cheque
(d) Pay-in-slip 

Question. What will be the effect of following transaction on the accounting equation? Goods sold on credit to X (costing ₹ 10,000) for ₹ 15,000.
(a) Assets, (₹15,000); Liabilities, (₹15,000); Capital, 0
(b) Assets (₹10,000) ; Liabilities, (₹15,000); Capital, ₹5000
(c) Assets (₹5,000) ; Liabilities, 0; Capital, (₹5000)
(d) None of the above 

Question. From the following information, calculate the total assets of the business Capital = ₹ 80,000; Creditors = ₹ 60,000, Revenue during the period = ₹ 1,00,000 Expenses during the period = ₹ 80,000; Value of unsold stock = ₹ 20,000
(a) ₹80,000
(b) ₹1,60,000
(c) ₹1,80,000
(d) ₹1,40,000 

Question. Original copy of receipt is kept by trader himself/herself for making records in books of accounts.
(a) True
(b) False
(c) Partially false
(d) Can’t say 

Question. As the effect of a transaction, capital of the company increased by ₹ 2,000 and assets also increased by ₹ 4000. Identify the transaction.
(a) Goods purchased on credit , ₹2,000
(b) Goods costing₹10,000 sold for ₹8,000
(c) Commission received worth₹2,000
(d) Both (b) and (c) 

Fill In The Blanks

Question. Salary due to clerk Rs 20,000 will be credited in —————– Account. 

Question. Goods of Rs 50,000 is purchased and on it wages is paid for Rs 5,000 and Rs 1,000 is paid to worker for bringing goods, 1/4th of the goods is purchased by business for resale purpose then Purchases account will be debited by Rs ————.

Question. Bought goods for cash Rs 20,000 from Ram and also purchased of Rs 40,000 on credit then stock of Rs ——————will be increase.

Question. If Pooja returned goods of Rs 2,000 to us, then ————– account will be ———– as per modern approach.

Question. Ram working as a cashier in Reliance industry for the financial year 2019-20 and amount of 10 months’ salary Rs 2,00,000 credited in his account then 2 months’ salary of Rs 40,000 is shown in Reliance Industry by the name of ————–. 

Question. Rent Paid Rs 6,000 of a business which is equally used by owner and business from Personal cash. Then Capital will be credited by Rs ——————.

Question. Goods Costing Rs 8,000 sold at a profit of 20% on cost, then profit will be added in ———account in accounting equation.

Question. Goods sold which is purchased of Rs 40,000 at a profit of 25% on cost at 10% trade discount and 2% cash discount. Half payment is made through cheque and half will be on credit. Then discount account will debited by Rs ——————- and Bank will be debited by Rs————– .

Question. While preparing the accounting vouchers ___________ concept is applied. 

Question. Transaction with multiple debits and one credit are recorded on the basis of _________ vouchers.

Question. Goods costing 48,000 sold at a profit of 25% on sales to Ram, ¾th received in cash. Capital of Rs ————-will be increased in accounting equation.

Question. Goods purchased from Krishna of Rs 20,000 and supplied to Radhika for Rs 26,000, out of which Radhika returned goods of Rs 7,800 due to not as per sample which returned to Krishna by Rs ——.

Question. Goods costing Rs 50,000 sold at a loss of 20% on cost, 12,000 received in cash then debtors will increased by Rs ————–.

Question. Furniture purchased on credit Rs 20, 000, ———– account will be debited. 

Question. If Ram started a business with capital of Rs 50,000 on 1st April, 2018 and his capital of Rs 80,000 on 31st March, 2019 then interest on capital @ 10% will be Rs ———-. 

Question. Repayment of Bank loan of Rs 2, 00,000 with interest of Rs 20,000 by issue of cheque from current account, capital will be decrease by Rs ————-.

Question. Purchase of goods in cash effects one element of accounting equation. Name of one element will be —————-.

Question. Goods costing Rs 40,000 sold at a loss of 25% on cost, 12,000 received in cash then debtors will increased by Rs————–.

Question. Goods costing Rs 6,000 Invoice Price Rs 4,800 Loss by fire, Purchases account will be credited by Rs ————-.

Question. Bought goods for cash Rs 20,000 from Ram and also purchased of Rs 40,000 on credit from Ram, then Ram account will be credited by Rs —————–.

Question. Transactions of Radha (A furniture dealer)

Jan 1,2019	Purchased Furniture worth of Rs 60,000
Jan 2,2019	Out of which goods of Rs 10,000 is used by business for office use

Purchase account will be debited by Rs ———– on Jan 01, 2019

True/ False

Question. Cash Memos, invoice, bills are examples of Accounting Vouchers.

Question. Debtor is a Nominal Account.

Question. Rent received is a Nominal Account whereas Unearned Rent is a personal Account. 

Question. Rent for the month of March not paid is Increase in liabilities and decrease in capital. 

Question. Goods returned by customer is Increase in cash and increase in stock.

Question. Rent paid Rs 30,000 paid for one year on 1st August 2018, Prepaid Rent on 31st March, 2019 will be 10,000.

Question. Sold goods costing Rs 12,000 at a profit of 20% on sales the effect on accounting equation will be Increase in cash Rs 14,400 increase in stock Rs 12,000 and increase in capital Rs 24,00.

Question. Creditor is a Personal Account.

Question. Goods Loss by theft costing Rs25,000 selling price Rs 30,000 decrease in stock by 25,000 and decrease in capital by Rs 30,000 .

Question. Patent is a Nominal Account.

Question. MR. X who owed us Rs 25,000 is declared insolvent and 75 Paisa in a Rupee received from him .the Amount and Account would be entered to Debit of Cash A/c by 18,750. 

Question. Commission received in advance of Rs 20,000 Increase in cash by 20,000 and increase in liability by 20,000.

Question. When goods are received back from customers debit note is prepared.

Question. When goods are returned to supplier debit note is prepared.

Question. Invoice is prepared by the seller of goods when he sells goods on credit.

Question. Goods Given as charity Sales price 1500 of Rs 1450 Increase in debtor by 500 and increase in stock by 500.

Question. Interest on capital is Increase in capital and decrease in capital.

Question. While depositing Cash in Bank, the source document to be prepared is Debit Voucher. 

Match The Following

Question.

Transaction	Which voucher is prepared :
1. Purchased machinery Rs 2,50,000 from From XLtd. Vide bill No.`1027.	a)Journal entries
2. withdrew cash Rs 2,00 for personal use on 15 april	b)Transfer voucher
	c)Debit voucher
	d)Credit voucher

Question.

Transaction	Which voucher is prepared :
1. Sold goods vide Cash Memo No 111:	a)Journal entries
2. Purchased goods for cash vide cash memo no 101.	b)Documentary evidence
	c)Debit voucher
	d)Credit voucher.

Question.

1. A voucher is prepared for :	a) Journal entries
2. A voucher is prepared from :	b )Documentary evidence
	c) All cash & credit transaction
	d) Ledger account

Question.

1. A voucher showing a transaction that contains multiple debits and one credit	a) Pay in slip
2. A voucher showing a transaction that contains multiple Credits and one Debit.	b) Debit voucher
	c) Credit voucher
	d) Invoice or bill

Question.

1. Document sent by one party to another informing the other party that his account debited in the sender books	a) Pay in slip
2. Document sent by one party to another informing the other party that his account Credited in the sender books	b) Debit note
	c) Credit note.
	d) Invoice or bill

Question.

1. A document used to deposit cash or cheque into the bank.	a) Pay in slip
2. A document in writing drawn upon a specified bank with which the account is held and is payable on demand.	b) Debit note
	c) Cheque
	d) Invoice or bill

Question.

1. Voucher which records a transaction entails multiple debits/credits is called	a) Debit voucher
2. Voucher which have cash value and they are used to transfer money from one bank account to another bank	b) Compound voucher
3. Paper or electronic record of a credit transaction through bank card	c) Journal voucher
4. Document which is stored the essential information about and accounting transaction	d) Credit voucher

Question.

1. voucher are prepare on the basis of	a) Receipt
2. credit voucher are prepared to record cash	b)Voucher
3. a document which provides evidences of the transaction	c)Source document

Question.

1. A document prepared by the seller when goods are sold for cash.	a) Pay in slip
2. A document prepared by the seller when goods are sold for Credit	b) Debit note
	c) Cash memo
	d) Invoice or bill

Arrange the following in sequence in accounting equation

Question.

	Transactions
A	Ramesh whose declared bad now paid of Rs 12,000
B	Goods sold of Rs 20,000 in cash of Rs 20,000 and on credit of Rs 20,000 to
C	Ramesh declared insolvent and only 40% amount is received from Ramesh.

Question.

	Transactions
A	Payment made by cheque to Hari of Rs 20,000
B	Purchased goods from Hari of Rs 20,000.

Question.

	Transactions
A	Claim Received from Insurance company of Rs 24,000
B	Goods Purchased of Rs 50,000 on credit from Creditors
C	Goods Lost By fire of Rs 30,000 and insurance company accepted 80% claim.

Question.

	Transactions
A	Salary Due in the month of March, 2019 of Rs 20,000
B	Salary Paid in the month of January 2019

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