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MCQ Questions for Accountancy Class 11 Chapter 8 Journal

Q.1. 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

 

Q.2. Business transactions are recorded

(a) in chronological order.

(b) weekly.

(c) at the end of the month.

(d) All of these.

 

Q.3. Recording of transaction in a Journal is called 

(a) Posting. 

(b) Journalising.

(c) Transfer. 

(d) Ruling

 

Q.4. Which of the following accounts will be credited on giving cash donation? .

(a) Cash A/c. 

(b) Donation A/c

(c) Purchases A/c.

(d) Discount Received A/c.

 

Q.5. Sale of goods to Ram for cash is debited to 

(a) Ram. 

(b) Cash A/c. 

(c) Sales A/c. 

(d) Stock A/c.

 

Q.6. 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.

 

Q.7. 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. 

 

Q.8. 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.

 

Q.9. 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

 

Q.10. 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. Y 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 X?

(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. 

 

Q.11. 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 (6).

 

Q.12. 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. 


Q.13. Cash Discount received is recorded in the books of account as follows: 

(a) Cash Discount is credited to Discount Received Account.

(b) Cash Discount is reduced from the Invoice Price. 

(c) Cash Discount is debited to Discount Allowed Account. 

(d) Any of (a) and (6).

 

Q.14. 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. 

 

Q.15. 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.


Q.16. 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.


State whether the following accounts will have a debit or credit balance: 

(i) Rent Received

(ii) Bank Overdraft

(iii) Wages

(iv) Land and Building

(v) Commission Received

(vi) Commission Paid

(vii) Rent Outstanding

(viii) Cash in Hand 

(ix) M/s. Gupta Traders (Supplier)

(x) Drawings

(xi) Capital

(xii) Prepaid Rent

[Debit Balance: (iii), (iv), (vi), (viii), (x), (xii); Credit Balance: (i), (ii), (v), (vii), (ix), (xi).]

  

True or False:

(i) A Journal presents chronological record of transactions. 

(ii) When two accounts are debited or credited, it is a case of simple entry, 

(iii) Sale of old furniture to Paresh for cash should be debited to Paresh's Account 

(iv) The book in which a transaction is first recorded is known as Journal. 

(v) Increases in assets are debited and decreases in assets are credited.

(vi) Discount allowed to customer is an expense for business. 

(vii) Proprietor's Drawing is a Nominal Account.

(viii) Creditors Account should never be debited. 

(ix) Debit the giver and credit the receiver is the rule of Personal Accounts. 

(x) Some of the transactions may have only one account. 

(xi) For every debit, there is a corresponding credit of equal amount. 

(xii) The left hand side of an account is called the debit side. 

(xiii) Commission Receivable Account is a Nominal Account.

(xiv) A compound/combined entry is a Journal entry derived by combining more than two accounts in one entry.

(xv) Wages, when paid, are credited to Wages Account. 

(xvi) Narration should not be written in Journal. 

(xvii) Discount allowed on purchases by customers is Trade Discount. 

(xviii) Discount allowed to customers on payment is Cash Discount. 

(xix) Cash Sale, involving Trade Discount and Cash Discount, only Cash Discount is shown separately in the Cash Book.

(xx) Trade Discount is shown separately in the books of account. 

[(i) True; (ii) False; (iii) False; (iv) True; (v) True; (vi) True; (vii) False(viii) False; (ix) False; (x) False; (xi) True; (ii) True; (iii) False; (xiv) True (xv) False; (xvi) False; (xvii) True; (xviii) True; (xcix) True; (xx) False]

 

Fill-in-the blanks

(i) Receiver's Account is _______________.

(ii) Sold goods to Ram-Ram's Account will be ______________ 

(iii) Received interest Interest Account will be ________________ 

(iv) Trade discount is _________________ in the books. 

(v) A Journal is known as a book of ________________ entry. 

(vi) Business transactions are recorded in the order in which they ___________ 

(vii) A Journal entry may have more than one debit or more than one _________________ 

(viii) A Journal provides an explanation of the ________________ 

(ix) Rent Receivable Account is a __________________ Account.

(x) Closing Stock is accounted in the books by crediting _________________ Account. 

(xi) Under Double Entry Book Keeping System, every debit has a corresponding ______________ of equal amount. 

(xii) Dr. stands for and ___________ Cr. stands for _______________ 

(xiii) Cash or goods withdrawn by the proprietor for his personal use is debited to ______________ Account.

(xiv) Debit in relation to Asset Accounts and Expense Accounts represents an _______________ but in relation to Liability Accounts, Capital Accounts and Revenue Accounts represents a  _____________.

(xv) On payment of any expense, the respective Expense Acocunt is ________________ not the ________________ Personal Account.

(xvi) If a cheque is not deposited in the bank on the same day, the receipt of cheque is debited to __________________ Account.

(xvii) _______________ Discount is allowed to encourage timely payment

(xviii) ______________   Discount is allowed to encourage large purchases.

(xix) _______________ Discount is shown separately in the books of account.

(xx) ________________ Discount is not shown separately in the books of account. 

(xxi) ________________ Discount is not reduced from the invoice price.

(xxii) ________________ Discount is reduced from the invoice price. 

(xxiii) Cash Discount is allowed @ 10% on Rs 15,500; the amount paid will be ___________.

(xxiv) Catalogue price is Rs 600. Trade Discount allowed @ 10% will be _____________ and Cash Discount @ 5% will be _____________.

[(i) debited; (ii) debited; (iii) credited; (iv) not shown; (v) original; (vi) occur; (vii) credit; (viii) transaction; (ix) Personal; (x) Trading; (xi) Credit; (xii) Debit, Credit; (xiii) Drawings; (xiv) increase, decrease; (xv) debited, recipient's; (xvi) Cheques in hand; (xvii) Cash; (xviii) Trade; (xix) Cash; (xx) Trade; (xxi) Cash; (xxii) Trade; (xxiii) Rs 13,950; (xxiv) Rs 60, Rs 27.]



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