BEST HIGHER SECONDARY SCHOOL

ACCOUNTANCY- STD XI

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MULTIPLE CHOICE QUESTIONS

The process of recording a transaction in the journal is called :
. .
(a) Posting
(6) Journalising
(c) Tallying
(d) Casting
( e ) Balancing
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.
Personal accounts are related to
(a) Assets and Liabilities
(b) Expenses, losses and incomes
(c) Debtors, Creditors etc.
(d) All of these.
Real accounts are related to
(a) Assets
(b) Expenses, losses and incomes
(c) Debtors, Creditors etc.
(d) All of these.
Nominal Accounts are related to
(a) Assets and Liabilities
(b) Expenses, losses and incomes
(c) Debtors, Creditors etc.
(d ) all of these.

6. Goods given away as charity would be credited to:

(a) Sales A/c
(b ) Purchases A/c
(c) Charity A/c
(d) Cash A/c.
7. Which of the following statements is true?
(a) Building account is a nominal account. (b) Outstanding rent account is a non-personal account. (c)
Every debit has a corresponding credit.
(d) Incomes are debited.
8. Which of the account is debited?
(a) Income received in advance
(b) Bank loan
(c) Prepaid insurance premium
(d)
Reserve for doubtful debts.
9. Income earned and collected results in:
(a) Increase of assets and increase in capital (6) Decrease in assets and increase in capital
(c) Increase in assets and decrease in liability (d) Decrease in assets and increase in liability.
10. Which one of the following is a personal account?
(a) Bills Receivable Account
(b) Livestock Account
(c) Goodwill Account
(d)
Outstanding Salaries A/c.
11. Which of the following is an example of personal account?
(a) Machinery
(b) Rent (c) Cash
(d)
Creditor
12. Payment received from debtor
(a) Decreases the total assets
(b)
Increases the total assets
...
(c) Results in no change in the total assets
(d) Increases the total liabilities
14. Payment of salary is recorded by
(a) Debiting salary A/c crediting cash A/c
(b) Debiting cash A/c crediting salary A/c
(c) Debiting employee A/c crediting cash A/c (d) Debiting employee a/c crediting salary A/c.
15. Goods returned by X is entered as
(a) Debit X A/c; Credit purchase return A/c (b) Debit X a/c; Credit cash A/c
(c) Debit sales return A/c; Credit X A/c (d) Debit X a/c Credit sales A/c
16. Debit means:
(a) An increase in asset
(b) An increase in liability
(c) A decrease in asset
(d) An increase in proprietor's equity.
17. Credit means :
(a) An increase in asset
(b) An increase in liability
(c) A decrease in liability
(d) A decrease in proprietor's equity.
18. Journal is a book of:
.
(a) Original entry
(b) Secondary entry

(c) All cash transactions

(d) All non-cash transactions.
19. Which of the following is a cash transaction?
(a) Sold goods
(b) Sold goods to a customer.
(c) Sold goods to a customer on credit
(d) Sold goods to a customer on account.
20. Which of the following is a credit transaction?
(a) Sold goods
(b) Sold goods for cash
(c) Sold goods to a customer for cash
(d) Sold goods to a customer.
21. Received a first and final dividend of 60 paise in the rupee from the Official Receiver of Mr. Ram
who owed
2,000.
(a) Discount allowed A/c be debited with 800
(b) Bad debts recovered A/c be debited with 12,00
(c) Bad debt A/c be credited with 800
.
(d) Bad debt A/c be debited with 800.
22. On purchase of a machine, 200 was paid to workers as wages for installing the machine:
(a) Wages A/c be debited
(b) Installation charges A/c be debited
(c) Machinery A/c be debited
(d) Cash A/c be debited
23. Purchase of an asset is :
(a) An expense
(b) A loss
(c) An asset
(d) None of these.
24. Patent Right is:
(a) Personal Account
(b) Real Account
(c) Nominal account
(d) Expense Account.
25. Goodwill account is a
(a) Nominal account
(b) Real account
(c) Personal account
(d) None of these.
26. Bank overdraft account is a
(a) Personal account
(b) Real account
(c) Nominal account
(d) All of these.
27. A sale of goods to Ram for cash should be debited to
(a) Ram's A/c
(fc) Cash A/c
(c) Sale A/c
(d) None of these.
28. Prepaid salary account is
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these.
29. Bill payable account is
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these.
30. Purchase of goods on credit from A is recorded as
(a) Debit purchases A/c; Credit cash A/c
(b) Debit A A/c; Credit purchase A/c
(c) Debit purchases A/c; Credit A's A/c (i/) Debit stock A/c; Credit purchases A/c
31. The debts written off as bad, if recovered subsequently, are
(a) Credited to Bad Debts Recovered Account (b ) Credited to Debtors Account
(c) Debited to Profit and Loss Account
(d) None of these.
32. Insurance unexpired account is a
(a)
Real
account
(b)
Personal
account
(c) Nominal account (d) None of these.
33. A credit sale of goods to Ram should be debited to
(a) Sales Account
(b) Goods Account
(c) Ram's Account
(d) Purchase Account
34. A withdrawal of cash from business by the proprietor of the firm should be credited to
(a) Capital account (b) Cash account (c) Drawing account
(d) Proprietor's account
35. Consider the following adjusting entries :
1. Outstanding expenses
: Expense A/c Dr
To Outstanding Expense A/c
2. Prepaid expenses
: Expense A/c Dr
To Prepaid Expenses A./c
3. Income earned and not received
: Income A/c Dr
To Outstanding Income A/c
4. Income received in Advance
: Income A/c Dr
To Prepaid Income A/c
Which of the adjusting entries given above is/are correct?
(a) 1 and 4
(b) 2 and J

(c) I only
(d) 1,2, 3, and 4.
36. Purchase of furniture for cash would
(a) Increase the fixed assets and reduce the current assets
(b) Reduce the fixed assets and increase the current assets
(c) Increase total assets
(d) Both (a) and (c)
37. In Double Entry system of Book-keeping every business transaction affects:
(a) Two accounts
(b) Two sides of the same account
(c) The same account on two different dates (d) All of these.
38. A sale of goods to Ram for cash should be debited to:
(a) Ram
(b) Cash
(c) Sales
(d) Capital.
39. A withdrawal of cash from business by the proprietor should be debited to :
(a) Drawing Account
(b) Capital Account
(c) Cash Account
(d) Purchase Account.
40. A withdrawal of goods from business by the proprietor should be credited to
(a) Drawing A/c
(b) Capital A/c
(c) Sales A/c
(d) Purchases A/c
41. The rent paid to landlord is credited to
(a) Landlord's account (c) Cash account
(b) Rent account
(d) None of these
42. Wages are paid for installation of machinery = The journal entry will be
(a) Machinery A/c Dr. 500 To Cash A/c 500
(b) Machinery A/c Dr. 500 To Wages A/c 500
(c) Wages A/c Dr. 500 To Machinery A/c 500
(d) Cash A/c Dr. 500 To Machinery A/c 500
43. Ram received 975 from Pankaj in full settlement of his account for 1,000. The journal entry will
be
(a) Cash A/c Dr. 975 Bad debts A/c Dr. 25 To Pankaj A/c 1,000
(b) Cash A/c Dr. 975 Discount Allowed A/c Dr. 25 To Pankaj A/c 1,000
(c) Cash A/c Dr. 1,000 To Pankaj A/c 1,000
(d) None of these
44. Goods costing 100 are given as charity. The journal entry will be
(a) Charity A/c Dr. 100 To Purchases A/c 100
(b) Charity A/c Dr. 100 To Sales A/c 100
(c) Charity A/c Dr. 100 To Cash A/c 100
(d) None of these
45. Goods costing 500 are distributed as free samples. The journal entry will be
(a) Free Sample A/c Dr. 500 To Sales A/c 500
(b) Free Sample A/c Dr. 500 To Purchases A/c 500
c) Free Sample account Dr. 500 To Dr.
A/c 500
(d) None of these
46. Wages paid for installing a seconc machinery should be debited to
(a) Installation charges account
(b) Business expenses account
(c) Machinery account
(d) Wages account
47. Goods destroyed by fire should be crec
(a) Goods lost by fire account
(b) Sales account
(c) Purchases account
(d) Cash account
48. Sale of typewriter that has been used office should be credited to

(a) Sales account

(b) Cash account

(c) Capital ace

(d) Typewriter

49. Business transactions are recorded:(a) in chronological order

(b) weekly
(c) at the end of the month
50.

Trial Balance is prepared generally for a particular period which is ?

(a) week
(b) month
(c) Quarter
(d Year

51.

Goods returned of Rs. 500/- by Anil will be entered in(a) Purchases Book
(b) Purchases Returns A/c
(c) Sales Book
(d) Sales Returns Book

52.

Purpose of Sales Book is(a) To record all sales made by the firm
(b) To record payment due to creditors
(c) To record all credit sales made by the firm
(d) to record credit sales of goods made by the firm

53.

Salaries paid to staff will be debited to which A/c?

(a) Salary A/c
(b) Cash A/c
(c) Staff A/c
(d) Expense A/c

54.

A ledger is called a book of :(a) Primary entry

(b) Secondary entry
(c) Final entry

55.

A Ledger Account is prepared from:(a) events

(b) transactions
(c) Journal

56.

Cash book is used to record.

(a) All Cash receipts only.

(b) All Cash payments only
(c) All Cash & credits sales
(d) All receipts & payments of Cash