Class 11 Accountancy Chapter 3 Recording of Transactions 1 MCQ Question with Answers

Recording of Transactions 1 Class 11 MCQ is one of the best strategies to prepare for the CBSE Class 11 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more MCQs on Recording of Transactions 1 Class 11, which will help them all through their board tests.

Recording of Transactions 1 Class 11 MCQ Questions with Answer

Class 11 Accountancy MCQ with answers are given here to Chapter 3 Recording of Transactions 1. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 11 Accountancy syllabus. By Solving these Class 11 MCQs, you will be able to analyze all of the concepts quickly in the chapter and get ready for the Class 11 Annual exam.

Learn Class 11 Recording of Transactions 1 MCQs with answers pdf free download according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE Class 11 Accountancy Recording of Transactions 1 MCQ with answers given below

Question 1. 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 2. 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 3. 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 4. 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 5. 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 6. 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 7. Journal is considered as the book of original entry.
(a) True
(b) False
(c) Can’t say
(d) Partially true 

Question 8. 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 9. Source documents are also referred to as
(a) first information documents
(b) notes
(c) supporting documents
(d) invoices 

Question 10. Rates of items sold are not mentioned on cash memo.
(a) True
(b) False
(c) Patially true
(d) Can’t say 

Question 11. Debit note is sent to a ……… when the goods are ……… .
(a) customer, delivered
(b) supplier, delivered
(c) supplier, returned
(d) customer, returned 

Question 12. 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 13. 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 14. 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 15. Rules of debit and credit are same for both liability and capital.
(a) True
(b) False
(c) Partially true
(d) Can’t say 

Question 16. 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 17. 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 18. 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 19. 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 20. 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 21. 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 22. 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 23. 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 24. Accounting vouchers are prepared for
(a) cash transactions
(b) non-cash transactions
(c) Both (a) and (b)
(d) None of the above 

Question 25. Accounting equation is also known as ……… equation.
(a) Balance sheet
(b) Arithmetic finance
(c) Fundamental
(d) Transactional 

Question 26. 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 27. On the basis of source documents, entries are directly made in Journal.
(a) True
(b) False 
(c) Partially true
(d) Can’t say 

Question 28. 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) 

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Question 29. 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 30. 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 31. 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 32. 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 33. 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 34. 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 35. ……… 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 36. 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 37. 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 38. 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 39. 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 40. 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 41. 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 42. 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 43. 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 44. 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 45. 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 46. In a journal, transactions are recorded in chronological order.
(a) True
(b) False
(c) Can’t say
(d) Partially true   

Question 47. 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 48. Expenses tend to decrease the capital of business.
(a) True
(b) False
(c) Partially True
(d) Can’t say 

Question 49. 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 50. 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 51. 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 52. 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 53. 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 54. 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 55. 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) 

Question 56. 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 

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