Refer to MCQs for Accountancy Class 11 with Answers Chapter 4 Recording of Transactions – II 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 4 Recording of Transactions – II have been prepared by our team of best accountancy teachers

Question  Withdrawal of Cash from Bank is recorded in   
(a) Debit of Bank Column and Credit of Cash Column.
(b) Debit of Cash Column and Credit of Bank Column.
(c) Debit of Cash Column and also Credit of Cash Column.
(d) Debit of Bank Column and also Credit of Bank Column.

Question. On 1st April 2020, balance of cash column of cash book was Rs. 10,000. After receiving Rs.2,000 from Anil, giving a cheque of Rs.3,200 to Sunil and making payment of wages Rs.500, balance of cash will be : 
(a) Rs. 11,500
(b)Rs. 8,300
(c) Rs. 8,800
(d) Rs. 6,300

Question. It is system of paying advance in the beginning and reimbursing the amount spent from time to time to the petty cashier.
(a) Imprest System
(b) Financial System
(c) Analytical System
(d) Ordinary System

Question. Which account will be debited in case Life insurance premium is paid by proprietor from business cash?
(a) Drawings A/c
(b) Capital A/c
(c) Insurance A/c
(d) Cash A/c

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. Which of the following may have both Dr. or Cr. Balance 
(a) Only cash column of cash book
(b) Only bank column of cash book
(c) Both cash andbank column
(d) Neither bank nor cash column

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. Which is not contra entry in the cash book 
(a) Cash deposited into bank
(b) Cash withdrawn from bank
(c) Cash withdrawn from bank for personal use
(d) None of these

Question. The Sales Return Book always has______balance
(a) Debit
(b) Either debit or credit
(c) Credit
(d) None of the options

Question The Sales Return Book records 
(a) the return of goods purchased.
(b) the return of goods sold on credit,
(c) the return of goods sold for cash.
(d) the return of anything sold.

Question. Purchase of machinery on credit is recorded in_______
(a) Journal proper
(b) Sales Book
(c) Cash book
(d) Purchase book

Question  Deposit of cash in bank is recorded in 
(a) Debit of Bank Column and Credit of Cash Column.
(b) Debit of Cash Column and Credit of Bank Column.
(c) Debit of Cash Column and also Credit of Cash Column.
(d) Debit of Bank Column and also Credit of Bank Column.

Question The total of the Sales Book is posted to   
(a) debit of the Sales Account.
(b) credit of the Sales Account.
(c) debit of the Customers’ Account.
(d) credit of Customers’ Accounts.

Question. A credit balance in Bank column of cash book indicates_______
(a) Overdraft
(b) Expense.
(c) Loss
(d) Profit

Question. Cash Book cannot have negative balance, i.e., payments cannot be______Cash in hand?
(a) More than
(b) Twice
(c) Equal to
(d) Less than

Question. The bad debts written off as bad, if recovered subsequently, should be credited to______
(a) Bad debt recovered A/c
(b) Cash A/c
(c) Bad Debt A/c
(d) Debtors A/c

Question. When a cheque deposited into bank is dishonoured by bank, it will be recorded in cash book in :  B
(a) Bank column on debit side
(b) Bank column on credit side
(c) Cash column on debit side
(d) Cash column on credit side

Question. A compound Journal entry_____
(a) Has equal debits and credits
(b) Only credit balances
(c) None of the options
(d) Only credit balances

Question. Cash book is a type of …………. but can be treated as a … of account. 
(a) Subsidiary Book, Principal Book
(b) Principal Book, Subsidiary Book
(c) Subsidiary Book, Subsidiary Book
(d) Principal Book, Principal Book

Question. A ledger is prepared from____
(a) Journal
(b) None of the options
(c) Transactions
(d) Events

Question. The process of finding the net amount from the totals of debit and credit columns in a ledger is known as ……………..
(a) Casting
(b) Posting
(c) Journalising
(d) Balancing

Question In the Purchases Book the record is in respect of 
(a) cash purchases of goods dealt in.
(b) credit purchases of goods dealt in.
(c) all purchases of goods dealt in.
(d) purchase of anything.

Question The periodic total of Sales Return Journal is posted to the   
(a) Sales Account.
(b) Goods Account.
(c) Sales Return Account.
(d) Any of these.

Question. The amount brought into the business by the proprietor should be credited to ……………..
(a) Cash account
(b) Drawings account
(c) Capital account
(d) Suspense account

Question  If Ram has sold goods for cash to Param, the entry will be recorded in the 
(a) Cash Book.
(b) Sales Book.
(c) Journal Proper.
(d) Petty Cash Book.

Question. The process of transferring the debit and credit items from journal to ledger accounts is called ……………..
(a) Casting
(b) Posting
(c) Journalising
(d) Balancing

Question. It is included in the public collection :
(a) Control
(b) Flexibility
(c) Both (a) and (b)
(d) None of these

Question. Which of the following is not recorded in cash book : 
(a) Trade Discount
(b) Bad Debts
(c) Credit Purchases
(d) All of the above

Question. Goods are stored in :
(a) Warehouses
(b) Keeping in open
(c) Buildings
(d) None of these

Question. On 1st May 2020, cash book bank overdraft balance was Rs.2,000. On depositing Rs. 10,000 into bank and giving a cheque of Rs.7,200 for rent, the balance will be : 
(a) Rs.4,800 Dr.
(b) Rs.4,800 Cr.
(c)Rs.800 Dr.
(d) Rs.800 Cr.

Question. Imprest amount Rs.5,000. What will be the amount of re-imbursement if following expenses were incurred by the petty cashier during the month — Wages = Rs. 1,450, Tiffin = Rs. 1,050, small Repairs = Rs.500, General expenses = Rs.400.   
(a) Rs. 1,600
(b) Rs.3,400
(c) Rs.3,050
(d) Rs.3,000

Question. DTH services are provided by :
(a) Transport companies
(b) Bank
(c) Cellular companies
(d) None of these

Question Goods purchased for cash are recorded in the 
(a) Purchases Book.
(b) Cash Book.
(c) Purchases Return Book.
(d) Cash Book and Purchases Book.

Question Which of the following is both a book of Journal and Ledger? 
(a) Cash Book
(b) General Journal
(c) Purchases Journal
(d) Sales Journal

Question. Which is not a service :
(a) Hair cutting
(b) Transport
(c) Book
(d) Recreation.

Question The Sales Book   
(a) is a part of the Journal.
(b) is a part of the Ledger.
(c) is a part of the Balance Sheet.
(d) is a part of the Trial Balance.

Question. Which Bank do not work in private sector:
(a) Lord Krishna Bank
(b) Global Trust Bank
(c) Development credit bank limited
(d) Canara Bank.

Question. A cheque on which two parallel lines are drawn in the left top corner is called –
(a) Bearer cheque
(b) Traveller’s cheque
(c) Account payee cheque
(d) None of these.

Question. Salary due for the month of March will appear in side of cash book 
(a) Receipt
(b) Payment
(c) Contra
(d) None of the above

Question. Return of goods by a customer is recorded in-
(a) Purchase book
(b) Sales book
(c) Sales return book
(d) Purchase return book.

Question. If the debit as well as credit aspects of a transaction are recorded in the cash book, it is called ……………….. 
(a) Contra Entry
(b) Compound Entry
(c) Opening Entry
(d) Adjustment Entry

Question  Mohit paid Rs. 9,800 in settlement of his account of Rs. 10,000. Discount Allowed will be recorded in 
(a) Cash Book.
(b) Journal Book.
(c) Both Cash Book and Journal.
(d) Petty Cash Book.

Question. ‘Drawings’ falls under which account-
(a) Personal account
(b) Real account
(c) Nominal account
(d) None of these.

Question. The balance of bank column of cash book always shows a balance. 
(a) Debit
(b) Credit
(c) Either Debit or Credit
(d) Neither Debit nor Credit

Question. Credit purchase of furniture shall be recorded in-
(a) Purchase book
(b) Journal book
(c) Cash – book
(d) None of these.

Question. Does cash basis of accounting violates GAAP
(a) No, as it doesn’t follow matching principle and accrual concept.
(b) Yes, It follows GAAP
(c) Yes, it follow GAAP but only in case of few transactions
(d) Both b & C

Question Debit balance of Rs. 10,000 in the Cash Column of the Cash Book shows that   
(a) Rs. 10,000 has been paid out.
(b) Rs. 10,000 is owing.
(c) the amount received exceeds the amount paid by Rs. 10,000.
(d) Rs. 10,000 has been credited into the Bank Account.

Question. Which statement is true related to Hybrid or Mixed system of accounting,
(a) Revenue and assets are recorded on cash basis
(b) Revenue and assets are recorded on Accrual basis
(c) Expenses and Liabilities are recorded on cash basis
(d) None of the above

Question Which of the following transactions is entered into the Journal Proper?   
(a) Cash Payment to an employee for expenses.
(b) Cash purchase of goods for resale.
(c) Correction of an error.
(d) Credit purchase of goods for resale.

Question. The first step in accounting process is
(a) Measurement
(b) Classification
(c) Identification
(d) Recording

Question  Ravi has purchased goods for cash from Girish for Rs. 10,000. It will be recorded in 
(a) Cash Book.
(b) Journal Book.
(c) both Cash Book and Journal Book.
(d) Petty Cash Book,

Question. Which accounting method is recognised by Companies Act, 2013
(a) Accrual Basis
(b) Cash Basis
(c) Both a & B
(d) Companies Act 2013 has no relation with accounting method

Question. What are the basis of accounting
(a) Cash Basis
(b) Accrual Basis
(c) Mixed Basis
(d) All of the above

Question. Total of these transactions is posted in purchases account
(a) Purchase of furniture
(b) Cash and credit purchase 
(c) Purchases return
(d) Purchase of stationery

Question. Recording is made in Journal Proper of: 
(A) Opening Entries
(B) Closing Entries
(C) Adjustment Entries
(D) All of the above

Question. Balancing of account means :
(a) Total of debit side
(b) Total of credit side
(c) Difference in total of debit & credit 
(d) None of these

Question. Recording is made in Journal Proper of: 
(A) All transactions
(B) Those transactions which are not recorded in any subsidiary book.
(C) All cash transactions
(D) All credit Transactions

Question. When a firm maintains a cash book, it need not maintain :
(a) Journal Proper
(b) Purchases (journal) book
(c) Sales (journal) book
(d) Bank and cash accounts in the ledger 

Question Contra entries on the debt side of the Cash Book are posted to 
(a) Debit of Bank Account in the Ledger.
(b) Debit of Cash Account in the Ledger,
(c) Credit of Cash Account in the Ledger.
(d) Not posted in the Ledger.

Question Closing entries are passed   
(a) in the beginning of the accounting year.
(b) at the end of the accounting year.
(c) in the middle of the accounting year.
(d) anytime during the year,

Question. The balance of sales column in the sales day book is Rs.30,000. Rs.5,000 were recovered from debtors. Then balance of sales column will be transferred by which amount? 
(A) Rs.25,000
(B) Rs.30,000
(C) Rs.20,000
(D) Rs.35,000

Question. Credit balance of bank account in cash book shows :
(a) Overdraft
(b) Cash deposted in our bank 
(c) Cash withdrawn from bank
(d) None of these

Question. Goods purchased on cash are recorded in the
(a) Purchases (journal) book
(b) Sales (journal) book
(c) Cash book 
(d) Purchases return (journal) book

Question Balance in the Petty Cash Book is 
(a) an expense,
(b) a profit.
(c) an asset.
(d) income.

Question Simple Petty Cash Book is like a 
(a) Cash Book.
(b) Statement.
(e) Journal.
(d) None of these.

Question. Goods sold for Cash Rs.25,000 plus 12% IGST. Sales A/c will be credited by : 
(A) Rs.22,000
(B) Rs.25,000
(C) Rs.28,000
(D) None of these

Question. A cheque on which two parallel lines are drawn in the left top corner is called –
(a) Bearer cheque
(b) Traveller’s cheque
(c) Account payee cheque
(d) None of these.

Question X received a cheque of Rs. 10,000 from Y in settlement of dues of Rs. 10,500. The cheque was dishonoured. The reversal of discount allowed by X will be recorded in   
(a) Cash Book.
(b) Journal Proper.
(c) Ledger directly.
(d) None of the above.

Question. ‘Drawings’ falls under which account –
(a) Personal account
(b) Real account
(c) Nominal account
(d) None of these.

Question. Due to which of the following, contingent liabilities are shown in the Balance Sheet:
(a) Dual aspect
(b) Full disclosure
(c) Materiality
(d) Going concern

Question. Which of the following will be recorded as Contra-entry : 
(a) Cash directly deposited into bank by a customer 
(b) Payment made to creditor by cheque
(c) Cash deposited into bank
(d) Cash sales

Question. Which of the following equation is correct?
a. Assets = Equities
b. Assets = Capital + Liabilities
c. Assets + Expenses = Liabilities + Capital + Income
d. Capital = A – L
(i) a & b
(ii) a, b & c
(iii) a, b, c & d
(iv) d only

Question. Balancing of account means:
(a) Total of debit side
(b) Total of credit side
(c) Difference in total of debit and credit
(d) None of these

Question When a firm maintains Two-column Cash Book, it does not maintain   
(a) Purchases Book.
(b) Journal Proper.
(c) Sales Book.
(d) Bank and Cash Accounts in the Ledger.

Question. Purchase of furniture on credit should be recorded in 
(A) Journal
(B) Purchase Book
(C) Cash Book
(D) Journal Proper

Question. Debit Note is the source of writing : 
(A) A debit entry in an Account
(B) A sale to a person
(C) Sales Return Book
(D) Journal Proper

Question. An ……………. is a formal record of all transactions relating to change in a particular item,
(a) Account
(b) Ledger
(c) Journal
(d) Trial Balance

Question Sale of business asset on credit is recorded in 
(a) Sales Book.
(b) Journal Proper.
(c) Special Journal.
(d) Cash Book.

Question. When a firm maintains a cash book, it need not maintain 
(a) Journal Proper
(b) Purchase Book
(c) Sales Book
(d) Cash and Bank Accounts in Ledger

Question. A note sent by buyer on return of goods is 
(A) Credit Note
(B) Return Note
(C) Debit Note
(D) None of these

Question  Which of the following is not recorded in the Cash Book? 
(a) Credit Sales
(b) Cash Receipts
(c) Cash Payments
(d) Opening Cash Balance

Question Cash Book records all 
(a) cash receipts and payments.
(b) cash and credit transactions.
(c) cash receipts.
(d) cash payments. 

Question. Recording is made in purchases book : 
(A) After deducting trade discount
(B) After adding trade discount
(C) After deducting cash discount
(D) After adding cash discount

Question Total of these transactions is posted to Purchases Account 
(a) Credit purchase of furniture.
(b) Purchases Return.
(c) Credit purchase of goods.
(d) Purchase of Stationery.

Question Opening entry is recorded   
(a) in the beginning of the accounting year.
(b) at the end of the accounting year.
(c) in the middle of the accounting year.
(d) anytime during the year.

Question. A …….. is sent to a supplier when we return goods.   
(A) Debit Note
(B) Credit Note
(C) Proforma Invoice
(D) None of these