Refer to MCQs for Accountancy Class 11 with Answers Chapter 3 Recording of Transactions – I designed as per the latest syllabus issued by CBSE. All Multiple choice questions have been provided with solutions and have been prepared based on the expected pattern in upcoming board exams. MCQs Chapter 3 Recording of Transactions – I have been prepared by our team of best accountancy teachers

Question. Anil, the Petty Cashier of Ebony, has an imprest of Rs.5,000 out of which he pays for petty expenses. He submits the details of payments every 15 days which is reimbursed to him. He submitted the details for 15 days that ended on 15th April, 2012 amounting to Rs. 4,900. He has with him unpaid expense vouchers amounting to Rs.2,200. How much amount should be paid to him?
(a) Rs.4,900
(b) Rs.5,000
(c) Rs.2,200
(d) Rs.7,100

Question Anil purchased, 1,000 Add Gell Roller Pens @ Rs. 50 each less 20% Trade Discount and 3% Cash Discount if payment is made within 30 days. Anil paid Rs. 10,000 within 30 days and balance amount after 30 days period. Purchases Account will be debited and Discount Received Account will be credited respectively with   
(a) Rs. 40,000, Nil.
(b) Rs. 40,000, Rs. 300.
(c) Rs. 40,000, Rs. 1,200.
(d) Rs. 40,000, Rs. 900.

Question. The Sales Book is a part of:
(a) Journal
(b) Trading A/c
(c) Balance Sheet
(d) Ledger

Question. While passing an opening entry, all the assets are______while all the liabilities are_____
(a) Debited , credited
(b) Credited, Credited
(c) None of the options
(d) Credited, Debited

Question: Which account will be debited in case wages are paid for installation of machinery?
(a) Machinery A/c
(b) Installation A/c
(c) Wages A/c
(d) Cash A/c

Question. Goods worth Rs.7,000 given away as charity would be credited to :   
(a) Sales A/c
(b) Purchases A/c
(c) Charity A/c
(d) Trustee A/c

Question. What are total number of subsidiary books available to record financial transactions?
(a) 8
(b) 7
(c) 6
(d) 12

Question: Name the transaction that is recorded in both sides of Cash book simultaneously.
(a) Contra Entry
(b) Dual entry
(c) Double entry
(d) Single entry

Question. All the indirect expenses are closed to_____
(a) Profit and loss A/c
(b) Cash Flow Statement
(c) Balance sheet
(d) Trading A/c

Question  Which accounting equation is incorrect out of the following? 
(a) Liabilities = Assets – Capital.
(b) Assets = Liabilities – Capital.
(c) Capital = Assets – Liabilities.
(d) Assets = Liabilities + Capital.

Question. Journal proper includes entries related to______
(a) Sale of asset on credit
(b) Sale of asset for cash
(c) Sale of goods for cash
(d) Sale of goods on credit

Question Business transactions are recorded   
(a) in chronological order.
(b) weekly.
(c) at the end of the month.
(d) All of these.

Question Withdrawal of cash from business by the proprietor is credited to 
(a) Drawings A/c.
(b) Capital A/c.
(c) Cash A/c.
(d) Bank A/c.

Question X sells goods on credit to Y. He receives 10% trade discount from X and a further 5% cash discount if paid within 15 days. K bought goods with a list price of Rs. 2,00,000 from X.
Which of the following Journal entry would correctly record the sale in the books of A?   
(a) Dr. y and Cr. Sales A/c by Rs. 1,70,000.
(b) Dr. Y and Cr. Sales A/c by Rs. 1,80,000.
(c) Dr. X and Cr. Sales A/c by Rs. 1,90,000.
(d) Dr. X by Rs. 2,00,000; Cr. Sales A/c by Rs. 1,70,000 and Discount A/c by Rs. 30,000.

Question. The weekly or monthly total of purchase book is recorded to the__________
(a) Debit side of Purchase Account
(b) Credit side of Purchase Book
(c) Credit side of Cash book
(d) Debit side of Cash book.

Question If purchaser of goods returns them, he will prepare 
(a) Credit Note.
(b) Debit Note.
(e) Both (a) and (b).
(d) None of these.

Question  Amount withdrawn by proprietor for personal use will … Cash and Capital.  
(a) Increase.
(b) Decrease.
(c) Not Change.
(d) None of these.

Question Cash Discount received is recorded in the books of account as follows:   
(а) Cash Discount is credited to Discount Received Account.
(б) Cash Discount is reduced from the Invoice Price.
(c) Cash Discount is debited to Discount Allowed Account.
(d) Any of (a) and (b).

Question. The balance in Petty Cash Book is______
(a) An asset
(b) An expense
(c) A liability
(d) A profit

Question. Real accounts are related to   
(a) Assets
(b) Expenses, losses and incomes
(c) Debtors, Creditors etc.

Question. Name an asset which is also a liability?
(a) Cash at bank
(b) Cash in hand
(c) Furniture
(d) Machinery

Question. Which of the following account will be credited on giving cash donations?
(a) Cash A/c
(b) Purchases A/c
(c) Bank A/c
(d) Donation A/c

Question. In Journal Proper, only_____discount is recorded.|
(a) Cash
(b) Trade
(c) None of the options
(d) Both Cash and Trade

Question Voucher is prepared for   
(a) Cash and Credit purchases.
(b) Cash and Credit sales,
(c) Cash received and paid.
(d) All of these.

Question Books of Account are written on the basis of   
(a) Source Document.
(b) Accounting Vouchers.
(c) Both (a) and (b).
(d) None of these.

Question. Rent of proprietor’s house paid from account on cash will   
(a) Decrease the profit
(b) Increase the profit
(c) Reduce the capital of business
(d) Reduce the cash as well as capital of the business.

Question. A ledger is called a book of____
(a) Secondary entry
(b) Primary entry
(c) Final entry
(d) None of the options

Question Which of the following equations is correct?   
(a) Assets + Capital = Liabilities.
(b) Assets – Liabilities = Capital,
(c) Assets + Liabilities = Capital.
(d) None of these.

Question A sole trader took goods costing Rs.. 1,000 from stock from his own use. The normal selling price of the goods is Rs. 1,500. Which of the following Journal entries would correctly record this?   
(a) Dr. Drawings A/c and Cr. Purchases A/c by Rs. 1,000.
(b) Dr. Drawings A/c and Cr. Sales A/c by Rs. 1,500.
(c) Dr. Drawings A/c and Cr. Purchases A/c by Rs. 1,500.
(d) Dr. Sales A/c and Cr Drawings A/c by Rs. 1,000.

Question Journal is called 
(a) a book of primary entry.
(b) a book of secondary entry.
(c) a book of final entry.
(d) both secondary entry and final entry.

Question. A trader entered into following transactions. As a result, total of Purchase Column in the Purchase Book will be : 
(i) Goods purchased from Gaurav Rs.8,000
(ii) Goods purchased from Sudhir for Cash Rs. 10,000
(iii) Goods purchased from Kamal on credit Rs.25,000
(iv) Machinery purchased from Dinesh on credit Rs.40,000
(A) Rs.83,000
(B) Rs.73,000
(C) Rs.33,000
(D) Rs.25,000

Question Which of the following accounts will be credited on giving cash donation?   
(a) Cash A/c.
(b) Donation Ale.
(c) Purchases A/c.
(d) Discount Received A/c.

Question Trade Discount received on purchases is recorded in the books of account as follows:   
(a) Trade Discount is credited to Discount Received Account.
(b) Trade Discount is deducted from the List Price and recorded at net value.
(c) Trade Discount is debited to Discount Allowed Account.
(d) Any of (a) and (b).

Question. If a transaction is properly analysed in recorded:
(a) Only two accounts will be used to record the transaction.
(b) One account will be used to record transaction.
(c) One account balance will increase and another will decrease.
(d) Total amount debited will equals total amount credited. 

Question Anil purchased 1,000 Add Gel Roller Pens @ Rs. 50 each less Trade Discount of 20%. Purchases Account will be debited by   
(a) Rs. 50,000.
(b) Rs. 40,000.
(c) Rs. 45,000.
(d) Rs. 60,000.

Question. Normally, the following accounts are balanced : 
(a) Personal A/c & Nominal A/c
(b) Real A/c & Nominal A/c
(c) Only Nominal A/c
(d) Personal A/c & Real A/c

Question The process of transferring the transactions from the Journal to the ledger is called   
(a) Journalising.
(b) Posting.
(c) Balancing.
(d) Costing.

Question. The journal entry to record purchase of equiptment for ₹ 2,00,000 cash and a balance of ₹ 8,00,000 due in 30 days include:
(a) Debit equipment for ₹ 2,00,000 and Credit cash 2,00,000
(b) Debit equipment for ₹ 10,00,000 and Credit cash ₹ 2,00,000 and creditors ₹ 8,00,000 
(c) Debit equipment ₹ 2,00,000 and Credit debtors ₹ 8,00,000.
(d) Debit equipment ₹ 10,00,000 and Credit cash ₹ 10,00,000.

Question. What shall be the amount of Capital if Cash is Rs.5,000; Furniture Rs.12,000; Stock Rs.30,000 and Creditors Rs.6,000. 
(a) Rs.53,000
(b) Rs.47,000
(c) Rs.41,000

Question. Main object of preparing a ‘Journal’ is:   
(a) To ascertain the financial position of the business.
(b) To journalise the cash transactions
(c) To make posting in the ledger
(d) To record the business transactions first of all.

Question Cash Memo is   
(a) a source voucher.
(b) an accounting voucher,
(c) neither (a) nor (b).
(d) both (a) and (b).

Question Trial Balance shows   
(a) both debit and credit balances,
(b) only debit balance.
(c) only credit balance.
(d) either of debit or credit balance.

Question Ledger is a book in which   
(a) Real and Nominal Accounts are maintained.
(b) Real and Personal Accounts are maintained,
(c) Real, Personal and Nominal Accounts are maintained.
(d) Personal and Nominal Accounts are maintained.

Question Decrease in one liability may lead to   
(a) Decrease in an asset.
(b) Increase in another liability.
(c) Either (a) or (b).
(d) None of these.

Question. Purchase book is used to record : 
(A) Purchases of goods
(B) Credit Purchases of goods
(C) Credit Purchases of asset
(D) All credit Purchases

Question. Purchased goods from Manoj of Rs.20,000 at 20% trade discount. Posting will be made in Manoj A/c : 
(a) Debit side Rs.20,000
(b) Credit side Rs.20,000
(c) Debit side Rs. 16,000
(d) Credit side Rs. 16,000

Question. Dinesh who owed us Rs.8,000 became insolvent and paid us 60% in full settlement. Posting will be made to Dinesh A/c :   B
(α) Rs.8,000 on Debit side
(b) Rs.8,000 on Credit side
(c) Rs.4,800 on Debit side
(d) Rs.4,800 on Credit side

Question. Journal entry to record salaries will include:
(a) Debit salaries Credit cash. 
(b) Debit capital Credit cash.
(c) Debit cash Credit salary.
(d) Debit salary Credit creditors.

Question What type of following accounts will have debit balance only?   
(a) Personal Accounts
(b) Real Accounts
(c) Nominal Accounts
(d) All of the above

Question If seller receives back the goods sold, he will prepare   
(a) Credit Note.
(b) Debit Note.
(c) Both (a) and (b).
(d) None of these.

Question. Debit notes issued are used to prepare : 
(A) Purchases Return Book
(B) Sales Return Book
(C) Purchases Book
(D) Sales Book

Question. Sold goods for cash of the list price of Rs.8,000 at 10% trade discount and 3% cash discount. Posting will be made in Discount A/c : 
(a) Rs.216 on Debit side
(b) Rs.216 on Credit side
(c) Rs.240 on Debit side
(d) Rs.240 on Credit side

Question …………….. is not a subsidiary book 
(A) Purchase Return Book
(B) Purchase Book
(C) Ledger
(D) Sales Book

Question. The ledger folio column of journal is used to:
(a) Record the date on which amount posted to a ledger account.
(b) Record the number of ledger account to which information is posted.
(c) Record the number of amounts posted to the ledger account.
(d) Record the page number of the ledger account. 

Question What type of Ledger Accounts are not carried forward to next year? 
(a) Personal Accounts
(b) Real Accounts
(c) Nominal Accounts
(d) All of the above

Question. Which of the following is known as “Principal Book of Accounting”? 
(a) Ledger
(b) Journal
(c) Trial balance
(d) Balance sheet

Question Akhil, who owed Rs. 10,000 became insolvent. Rs. 0.75 in a rupee was received from his estate. Amount received and credited to Akhil’s Account will be   
(a) Rs. 7,500.
(b) Rs. 2,500.
(c) Rs. 10,000.
(d) Rs. 5,000.

Question. 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.

Question When goods are sold on credit the seller prepares   
(a) Cash Memo.
(b) Invoice.
(c) Accounting Voucher.
(d) None of these.

Question.Total of Purchase Return Column in the Purchases Return Book is posted to : 
(A) Purchases Return A/c — Debit
(B) Purchases Return A/c — Credit
(C) Purchases A/c — Debit
(D) Purchases A/c — Credit

Question. 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 Sale of goods.to Ram for cash is debited to   
(a) Ram.
(b) Cash A/c.
(c) Sales A/c.
(d) Stock A/c.

Question. Total assets in a business are Rs.8,00,000 and total liabilities are Rs.5,00,000. The difference is called: 
(a) Income
(b) Expenses
(c) Capital
(d) Goodwill

Question. Nominal Accounts are related to :   
(a) Assets and Liabilities
(b) Expenses, losses and incomes
(c) Debtors, Creditors etc.

Question. Which of these accounts has debit balance?   
(a) Income received in advance
(b) Bank loan
(c) Prepaid insurance premium
(d) Creditors for goods

Question Bad Debts earlier written off and now received are credited to   
(a) Bad Debts A/c.
(b) Bad Debts Recovered A/c.
(c) Miscellaneous Income A/c.
(d) Debtors A/c.

Question Which of the following is correct entry to record cash purchase of Rs. 3,000 from Amar?   
(a) Dr. Purchases A/c and Cr. Amar by Rs. 3,000.
(b) Dr. Amar and Cr. Purchases A/c by Rs. 3,000.
(c) Dr. Cash A/c and Cr. Purchase A/c by Rs. 3,000.
(d) Dr. Purchases A/c and Cr. Cash A/c by Rs. 3,000.

Question. Purchase of goods from A’ for Cash should be Credited to:   
(a) Purchase
(b) Cash
(c) X

Question Recording of transaction in a Journal is called   
(a) Posting.
(b) Journalising.
(c) Transfer.
(d) Ruling.

Question  The liabilities of a firm are Rs. 3,000; the capital of the proprietor is Rs. 7,000. The total assets are:   
(a) Rs. 7,000.
(b) Rs. 10,000.
(c) Rs. 4,000.
(d) None of these.

Question. Goods costing Rs.30,000 supplied to Mohan at a profit of 25% of sales price less Trade discount @5% will be credited to Sales A/c with :   
(a) Rs.35,625
(b) Rs.38,000
(c) Rs.37,500
(d) Rs.34,200

Question. Payment of Rs.6,000 as wages to workmen for installation of a machine should be debited to : 
(a) Wages A/c
(b) Repairs A/c
(c) Machinery A/c

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

Question. Rs.5,000 received from Mohan whose account was written off as bad in the previous year should be credited to :   
(a) Mohan’s A/c
(b) Bad-Debts A/c
(c) Bad-Debts Recovered A/c
(d) None of these

Question When goods are purchased against cash, the purchaser will get   
(a) Cash Memo.
(b) Invoice.
(c) Accounting Voucher.
(d) None of these.

Question. A separate column is made for ‘Credit Note No.’ in 
(A) Purchases Book
(B) Sales Book
(C) Purchases Return Book
(D) Sales Return Book

Question. Total of Sales Return Column in the Sales Return Book is posted to : 
(A) Sales A/c — Debit
(B) Sales A/c —Credit
(C) Sales Return A/c — Debit
(D) Sales Return A/c — Credit

Question Lalit, who owed Rs. 20,000 became insolvent. 70 paise in a rupee was received from his estate. Bad Debts Account will be debited by   
(a) Rs. 20,000.
(b) Rs. 10,000.
(c) Rs. 6,000.
(d) Rs. 14,000.

Question Invoice is a source voucher for 
(a) Cash purchases.
(b) Credit purchases.
(c) both (a) and (b).
(d) neither (a) nor (b).

Question Invoice is a source voucher for seller of goods 
(a) for cash sales.
(b) for credit purchases,
(c) for credit sales.
(d) for cash purchases.

Question Credit purchase of furniture is recorded through   
(a) Transfer voucher.
(b) Cash voucher,
(c) Debit voucher.
(d) Credit voucher.

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

Question. 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. Which source of document is prepared by the seller of the goods on credit?
(a) Invoice
(b) Cash memo
(c) Cash Invoice
(d) None

Question Accounting voucher is prepared from 
(a) source voucher.
(b) Journal entry.
(c) Both (a) and (b).
(d) None of these.

Question. Gopal is our debtor for Rs. 10,000. He became insolvent and only 60 paise in a Rs. is received from him. The balance of Rs.4,000 would be entered to the :   
(a) Debit of Discount A/c
(b) Credit of Discount A/c
(c) Debit of Bad-Debts A/c
(d) Credit of Bad-Debts A/c

Question Payment to a creditor means   
(a) Increase in asset and decrease in liability.
(b) Decrease in asset and decrease in liability.
(c) Decrease in asset and increase in liability.
(d) Increase in asset and increase in liability.

Question. Which of the following accounts always shows a debit balance : 
(a) Capital Account
(b) Sales Account
(c) Purchases Return Account
(d) None of the above

Question Transfer vouchers are prepared to record   
(a) cash transactions.
(b) non-cash transactions.
(c) (a) and (b).
(d) None of these.

Question Credit Note is prepared 
(a) when credit is given to the account.
(b) when debit is given to the account.
(c) both (a) and (b).
(d) None of the above.

Question. Sold goods worth list price of Rs.8,000 at 10% trade discount and 2% cash discount. 25% received at the time of transaction only. The amount posted to discount account will be : 
(a) Rs. 36 on Debit side
(b) Rs. 144 on Credit side
(c) Rs. 144 on Debit side
(d) Rs. 40 on Credit side

Question. Goods taken away by the proprietor from business for his personal use will be recorded in : 
(A) Purchases Book
(B) Sales Book
(C) Purchases Return Book
(D) Journal Proper

Question. Items owned by a business that have monetary value are ____
(a) Debentures
(b) Assets
(c) Liabilities
(d) Capital

Question. Paid to Jigyasa Rs.l 1,500 in full settlement of Rs. 12,000. Posting will be made in Jigyasa’s A/c : 
(a) Rs. 12,000 on Debit side
(b) Rs. 12,000 on Credit side
(c) Rs.l 1,500 on Debit side
(d) Rs.l 1,500 on Credit side

Question. To find the net income we deduct _________ from total revenue.
(a) Capital expenditure
(b) Expenses
(c) Depreciation
(d) Gains

Question Purchase of machine by cash means   
(a) Decrease in asset and decrease in liability.
(b) Increase in asset and decrease in asset.
(c) Increase in asset and decrease in liability.
(d) Decrease in asset and increase in capital.

Question. If a cash book is prepared then there is no need to prepare the _______
(a) Cash account
(b) Journal Proper
(c) Purchases (journal) book
(d) Sales (journal) book

Question  Cash memo is a source voucher for purchaser of goods 
(a) for cash purchases.
(b) for credit purchases,
(c) for credit sales.
(d) for cash sales.

Question Posting of transaction means   
(a) entering transactions in Journal.
(b) entering transactions in Ledger.
(a) entering transactions in Trial Balance.
(d) entering transactions in Financial Statements.

Question When goods are lost by fire then Loss of Goods by Fire Account is debited with   
(a) Cost of goods sold.
(b) Cost of goods sold plus Gross Profit.
(c) Cost of goods sold less Gross Profit.
(d) Cost of goods purchased.

Question. The owner withdraws cash from the business for personal use. Then,
(a) Assets: Decrease, Liabilities: Decrease, Equity: Decrease
(b) Assets: Decrease, Liabilities: No Effect, Equity: Decrease
(c) Assets: No Effect .Liabilities: Increase, Equity: No Effect
(d) None of these

Question. If a firm borrows a sum of money, there will be
(a) Increase in Capital
(b) Decrease in Capital
(c) No effect on Capital

Question. In case lesser amount is recorded in sales invoice by mistake, then a is sent 
(A) Debit Note
(B) Credit Note
(C) Cash Note
(D) Debit or Credit Note

Question. Cash received from Kajal Rs.36,000 after allowing her discount @10%. Amount debited to discount account will be :
(α) Rs. 3,600
(b) Rs. 4,000 ‘
(c) Rs. 4,400
(d) Rs.40,000

Question. Personal accounts are related to :   
(a) Assets and Liabilities
(b) Expenses, losses and incomes
(c) Debtors, Creditors etc.

Question. Proprietor of the business withdrew goods from business for private use. It will be posted to the : 
(a) Credit of Drawings A/c
(b) Debit of Purchases A/c
(c) Credit of Purchases A/c
(d) None of the above

Question How many accounts are effected in a transaction?   
(a) Only one
(b) Only Two
(c) At least two
(d) Two or Three

Question. Paid to Rahul on behalf of Sanjay Rs.12,000 will be debited to   
(a) Rahul’s Personal Account
(b) Sanjay’s Account
(c) Drawings Account
(d) Cash Account

Question Invoice is a source voucher for purchaser of goods 
(a) for cash purchases.
(b) for cash sales.
(c) for credit sales.
(d) for credit purchases.

Question. Cashbook does not record transactions of –
(a) Cash nature.
(b) Credit nature.
(c) Cash and credit nature.

Question. The source documents provide information about the nature of ……………. involved in it.
(a) Transactions
(b) Accounts
(c) Journal

Question. While posting in personal accounts from the purchases book, posting is done : 
(a) On Debit side
(b) On Credit side
(c) On Debit or Credit side
(d) None of the above

Question. Double column cash book records:-
(a) All transactions
(b) Cash and bank transaction
(c) Only cash transaction
(d) Only Credit transaction

Question  X commenced business on 1st April, 2013 with a capital of Rs. 6,00,000. On 31st March, 2014 his assets were worth Rs. 8,00,000 and liabilities Rs. 50,000. Find out his closing capital.   
(a) Rs. 7,50,000.
(b) Rs. 2,00,000.
(c) Rs. 5,50,000.
(d) None of these.

Question Ledger Account is prepared from   
(a) Vouchers.
(b) Trial Balance.
(c) Journal.
(d) Financial Statements.

Question Which of the following expense is not a revenue expense?   
(a) Salary
(b) Electricity
(c) Water
(d) Repair of second-hand machinery purchased

Question  An increase in one asset is accompanied by 
(a) Decrease in another asset.
(b) increase in a liability.
(c) Increase in capital.
(d) All of these.

Question Purchase of furniture on credit means   
(a) Decrease in asset and increase in liability.
(b) Increase in asset and increase in liability.
(c) Increase in asset and decrease in liability.
(d) Decrease in asset and decrease in liability.

Question. Received Rs.4,900 from Garima in full settlement of Rs.5,000. Posting of Rs.100 will be made to the : 
(a) Debit side of Garima’s A/c
(b) Credit side of Garima’s A/c
(c) Debit side of Discount A/c
(d) Credit side of Discount A/c

Question. The credit balance of a personal account is 
(a) Cash in hand
(b) Amount receivable
(c) Income earned
(d) Amount payable

Question Cash memo is prepared when goods are sold 
(a) on credit.
(b) on cash.
(c) Both (a) and (b).
(d) None of these.

Question. Loss of goods by fire should be credited to : 
(a) Sales A/c
(b) Loss A/c
(c) Profit & Loss A/c
(d) Purchase A/c

Question. Journal records the transactions of a firm in a   
(a) Periodical manner
(b) Chronological order
(c) Summarised manner
(d) Systematic order

Question. Journal is the book of ……………
(a) Original entry
(b) Secondary entry
(c) Only cash transaction
(d) Credit Transaction

Question. The total of Purchase Return Column of Purchases Return book will be posted to the : 
(a) Debit of Purchases A/c
(b) Credit of Purchases A/c
(c) Debit side of Purchases Return A/c
(d) Credit side of Purchases Return A/c

Question. Goods costing Rs.20,000 is sold at a profit of 20% on cost and trade discount is allowed @ 10% and cash discount of 10% is also allowed. Half the payment was received at the time of sale. What is the amount of cash received at the time of sale?   
(a) Rs. 9,720
(b) Rs. 10,800
(c) Rs. 11,880
(d) Rs. 10,820