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The document is a study guide for Class 11 Accounts, featuring various exercises including true/false statements, fill-in-the-blank questions, and multiple-choice questions related to accounting principles and concepts. It covers topics such as bookkeeping, financial statements, accounting concepts, and the roles of different users of accounting information. The guide is designed to help students understand fundamental accounting terms and practices.
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0% found this document useful (0 votes)
9 viewsChapterwise MCQ (Most Imp.)
The document is a study guide for Class 11 Accounts, featuring various exercises including true/false statements, fill-in-the-blank questions, and multiple-choice questions related to accounting principles and concepts. It covers topics such as bookkeeping, financial statements, accounting concepts, and the roles of different users of accounting information. The guide is designed to help students understand fundamental accounting terms and practices.
Uploaded by
mahanlucky894Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
/ 36
Class 11
Accounts
(Oe)
Mahesh Accounts Sir
25 Year's Teaching Experience ACCOUNTS
HOME TUTOR
XI - Xi
Mahesh Accounts Sir
25 Vear's Teaching Experience
9999767653 Mien bund
1. State whethethe following statements are True or False:
(The term Book Keeping and Accounting canbe used interchangesby
Ui) Accounting deals with quartfabe information.
(a Accounting isthe language of business.
(v) Accounting alms to communicate financial information to levestors ony.
(0) Transactions are posted into ledger account rom Journal book
(09, Cost goods manufactured is determined by management accounting
(oi) The cbyectv of book keeping sto maintain compete record af fnancll transactions.
(vin Governments the intemal user of accounting formation,
(i) Management ofthe busines enters i internal user onan tatements.
(9) Twopeerary qualtatve characterises of frac statements ae: Understandably and Mate,
(ns (Fs; i Tue i Tue i) Fase) Tue:
(Fos: (i) Tue (vi Fels: (x) True (x) Fose)
2. Fihinthe blanks wth appropiate words
(Scope of scountancyis, than that of Book Keeping.
i) Book Keeping isa systematic record of transactions
(up Accounting records can be produced as, In the court a
(09) nformation in nancial reprtsibased on transactions and
(0) The process of accounting tarts with ‘and ends with
(09 Accounting measures the business tansactonsia tems ef nts
(ui) ldeetified and measured economic events shouldbe recorded order.
(on every transaction, _aspectsare involved.
(Ans. () wider i inanciat (i evidence; (7) financial events; (identifying the
transactions, communicating information; vi) monetary, (i) chronological) two)
‘Multiple Choice Questions (MCQS)
Select the correct alternative
1. Book keeping is concemed with
(a) recording franca data relating to business transactions.
(6) designing for systems recording lasstyng. and summarizing recorded data,
(6 interpreting data for internal and extemal users
(d Alofthe above
2. Thelast stepin acounting a proces of informations
(a) recording the tanstton, (©) preparation of franca statements
(© communication of information. (, Nlofthese 3, Basic funtion of accounting i
(a) torecord all busines transactions,
(6) tointerpet foncaldata.
(@ toassst the managementin performing functions effectively.
(@) None ofthe above
4, Which of theflloing wil not be recorded in the book of account?
(o) Purchased a LED TV for personal use amount pad om personal acount
(6) Purchased machinery oF € 100.000
(a) Purchased goodsfor€ 25,000,
(@) Paid Salaries are Wages
5. Accounting i
(a) A process concemed with summarising ofthe recoded transactions
(0) Notthe language of eusinss.
(0) Anartofrecording.clssiying and summarising fancil transactions ina significant manner.
(@ Alot theabove.
6. Which ofthefolloing isthe objective of Accounting?
(o) Systematic Recording (0) Comparison and Evaluation
(@ Selverey Postion (@ Foreeasting
7. Which ofthe following isnot the user of accounting information?
(a) Short-term creditors (6) Debtors
(@ Government (A) Owners
8, Which ones the advantage of accounting?
(a) Replacement of memory (0) Shows the present value ofthebusiness
(@ Accountngdoesnotrecord prcelevelchanges (@) Accountingisnotfuly exact
9. Outof the folowing which isthe branch of Accounting?
(a) Fnandai Aecourting (0) Cost Accounting
(@1 Maragement Accounting (@) Alofthese
10, Two primary qualitative characteristis of fnacil staterents are
(a) Understandabiity and mately (0) Relevance and reabilty.
(@) Relevance and Materalty, (Alot these
(ns 1. al 2 (3.4 (a5. (06 (a7 (8 fal 9 (10. (6)
|ASIC ACCOUNTING TERMS
‘Objective Type Questions
1. State ether the feliowing statements are Tra or Fase:
1) Goodwls a tangible Asset,
Ui) perzon whe owes money tthe frm against goods eo isa debtor
(a) person to whom money is omed by afm for purchase of goods ia crectr.
(i) Stock s valued at Cost r Net Reaisabe Value Market Vluel whicheveris higher
IW) Mechinery used in production snota fixed asset.
(7) RentPayabie is abit.
(si) Purchases isa revenue.
(wi) ade discounts recorded inte Books
(te) Goods tate by the owe for personal ses debited to capital account
(x) “Goods means physica item of rade.
(a) Debtors il Receivables Bank Balances are examples of ftitous acts
(ad) person who fenot a3 postion to pay hs debt known a isaivent.
(Ans: (False i Tue (i) True) Fes) False; (vi) True: False;
(Fee Fale) Tue; x) False) Tue
2 2. Flin-the Blanks with appropricte words:
(0. personto whom afr owes money for purchase of goods i
Ui) Amount invested bythe owner in business termed as.
Gin. Amount of debs ‘rom the debtors re trmed as bad debs
(person who ewes money othe frm for sale of goods isa
Io) Thenature of epital ea
(un The nature of accrued incomes
(oi) Bad Debte recovered area.
(wi) Purchases means purchase of goods Tor
(i) Bank Overdattisa abi,
(a) Amount at which an asst appears inthe books of acount
(a) Fat a the value of an asset de tots use i termed as.
(ai) bit aises because of. ‘wonsactions
[ans ()cecitor; i capital i) irecoverable(w) debtor; (habit; (vi) asset;
(i revenue (i resale; (te) current (0 book value: depreciation; Gl) credit]
Multiple Choice Questions (MCQs)
“Selec the core tema:
1. Amount pad or payable guns purchase of goods
(a) revenvecrpenditre (©) captal expendi
(@ Beth (o) 2rd (@) None ofthese
2. Epensiture of revenue nature that ges benefit fr more than one accounting period is categorised as
(@) Captal Expenditure (0) Revenue Bxpenctre
(e) Defered Revenue Expenditure (@) None ofthese
13. Which ofthe following is nt a business transaction?
(0) Bough future of 25,000 for business
(0) Pad er salaries of employees, 20,000
(@) Cash witheravm rom personal bank account € 10,000 forpersonal use
(a Nlotthe above
44 Which ofthe following i neta Fue asset?
(a) Bulidng (0) Plantand Machinery
(@1 Balance with bank (@ Goodall
'5, Which ofthe following isa business transaction?
(2) Goods purchased on credit (0) Anemployee being dismissed
(@ Proprictorpurchasingacartorownuse _(d) Sale ef personalasset by the proprietor
6, Which ofthefllowing isnt logrterm lability?
(a) Creditors (0) Termionn
(@) Debentures (@) Bankiean
7. income
(a) Revere ess Expense (©) Expense Less Revenue
(e) Sales Less Cost of goods So (6) Purchase Les Purchase Return,
8. Prepaid expenses expense
(0) Padi Advance. (0) stitobe pai
(@ eth ard (@) None ofthese
9. cess of income over its elated expenses which arses fom ls normal business atv
(a) Gain (b) Prot
(@) Revenue @ tos. 10. Labity in which obigation to pay, depends on happening ofan events
(a) Contegent Lablty. (0) Long ter Laity.
(@ Short term Liiity (@) Noneot these
11, Assets which havea fit ie depending upon the value of natural esources extracted
(a) Fttious Assets. (6) Wasting Assets.
(@) Faed Asets (@) None ofthese
12, Reductonin amount payable alowed by the seller of goods after the goods have bean sldis
(a) Rebate (©) TeadeDscount
(@ Cash Discount (@) None ofthese
ns 1. al: 2 (3. (eh& (S.(a: 6. (a: 7. (a: 8. (a: 9.) 10a 11 (Bl 12.(ah]
Anco uu oecca oun anu cucea anne
1. State whether the flowing statements are Tru or Fase:
(0). Business Entity Cencept snot appicabeto sole trading concerns ard partnership concems
Gi) Money Messurement Concept takes int account changes in he value of monetary uni.
(i) Theprinepl of consistency spatula valuable when aterative accounting methodisequally
acceptable
(The essence of Conservatism Concepts to aticpate ne profit and provide fo a possibe loses
(0) According othe Reslstion Concept, revenue shouldbe accounted ony when itis recehed,
() Aezourting peneples ae rls of acon of conduct which ate adopted By the accountants
tniversaly while recording accounting tarsatons
‘ip Accounting Standards are not mandatory innate.
(vin. According tothe Cost Concept. assets ar recorded at the value pid for acquiring them.
{According othe Gong Concern Conceptessetsarerecordedateslsabe valve andre deprecated
cover ther estrated Use if
(2) According tothe Convention of Consstency,acounting polices and practices once adopted
shoul be conser followed
(a) According to Pini of Conservatism, closing stocks valued at Hotel cost or net ealsable
‘luc (matt value) whichever ghee
‘i Ttonsction between the fm and propiter is accounted inthe books of account because of
Busnes Entity Prine
(xin Quality of Manpower isnt shown inthe Finca Statements because of Revenve Principe
(0) The franc statements under nd-ASincude statement of nancial postion
(ans. i Fale Fake: i) Tre; (True: () Fale (i) Te Fale:
(i) True: Fels; G) Trae x) Fale) Trae Fase: Gv Tre
2. Fllin-the blanks with approprictewords:
(Business Entity Conceptimplies hata business units stom the persons who supply
capital tort
According tothe. Concept revenue i considered as being cored onthe date on
whic ti earned
(i The Concept requires that the same accourtag method shoud be used fom one
accounting period to next
(0) Transactions between owner and busines are recorded due to Concept.
(0) Going Concern Concept assumes tht busines wil be cated on fo, peved
4 (on withdrawal of money by the owner isnot an expense But 2 reduction of and
(oi) The Concept requires that accounting transactions should be tree from the bas of
sccountants nd others
(ot) Going cance isa accounting assumption
(i) Tota of debit side and creat se of al balance matches because of principle
) indas are based accounting standards
{Ans (separate; (i) Realsation: i) Consistency) Business Entity,
(Windefrite (i) cash capital: (vi) Vertiable Objective (Evidencel
(sip Fundamental (i) Dual Aspect; (Principle)
Multiple Choice Questions (MCQs)
Sater the core btrnative:
The Concept of Conservatism aes ino account
(@)allprospecve profs anda prospectvelosses.
(0 allprospetve profs and leaves all prospective lasses
(c)allprospecive loses but nt the prospect profs
(0) None ofthe above
According to Going Concern Concept, business viewed ashaving
(a) alimitedite. (6) averylong ie
(© anit if, (@) None ofthese
According to which of the fllowing concepts in determining the net income, all costs which are
applicable to earn the revere of the period shouldbe charged against that revenue?
(a) Matching Concept (0) Money Measurement Concept
(@ CostConcept (@) Dual Aspect Concept
Lower of cost or net realsable valve isan example of
(@) Consistency Concept (0) Prudence (Conservatism) Concept.
(o) Realisation Concept. (@) Matching Concept,
Xd, flows the Written Down Value Method of deprecizting machinery year afte year due to
(a) comparability. (©) convenience
(@ consistency. (@) Alohese
‘An employee of the enterprise sues an Injury at work and the enterprise decides to pay hie
£€50000as compensation. Should the enterprise pass an entry eventhough ithes not pit?
(a) Yes, because of Accrual Concept (0) Ne, becauseitisna ald
(@ No,becausetheemployeehasnataccepted. (é) Noneot these
Inds AS are based on
(a) Rules (0) Principles
(@ Both (a and (@) None ofthese
IndsAS apply to
(o) Companies listed on Stock Exchange
(6) Companies having net worth of 250 crores ormore
(6) Subsiciaries, Holding, Joint Ventures and Associates of above two categories of Comparie.
(@ Alot he above
UAnsa 1 (¢ 2(03. (al 4.) 5. (6 (7 (8
5 1. State mhetherthefellowing statements are Tru or False:
1) Under cash basis of accounting ents inthe books of account are passed when cash received
or pid
i) Cashbasisof accounting i incompatible with the Matching Pini
Lin. Accrual basis » more sppropiste bass for determining profs os expense re matched agpinst
revenue eamedin lation thereto.
i) Accrual bai of accountng gives a true and ar view of the resus of operations of business and
finacial postion ofthe business.
(0) Gash base consider the reve a relzed when the goods ae sold
[Ans (0 Tue i Tre; (i) Tue iv) Tue: (v Fase)
2, Fllin-the blanks with appropricte words:
()Thereisancedforaustmentofprepald/oustandingexpensesin bassofaccountng.
(i) Adjustment ismade for acruedincamesincome received in advance unde asi of
courting
i) Accrual bass of accounting i more ible than ofaccountirg
(iw) Cash boss of accountng does ot require adjustment regeding otstandingiprepad expenses
and
(0) The profes under of accounting willbe diferent from profivioss under Accrual
Bast of Accounting,
(Ans. (accrual fi) accruak i cash basis;
(i accrued income/income received in advance: (v) cash basis]
Selec the corset atemative:
1. Under Cash 83s of Accounting, expenses are recorded
(a1 on poyment.
(@) Both (a) ard
(6) on being incured
(@) None ofthese
2. Under Acwal Bai of Accounting, expense are recorded
(@) on peyment
(e) Beth (a ard
13. Accrual Bass of Accounting
(©) on being incured,
(4) Noneat these,
(a) does not ves true and fir view of prft and franc postion.
(6) aves true and fair view of profit and nancial postion
(o) mayormay not ive a true nd fa view of profit andfinancil postion,
(@) None ofthe above
4 Actual Bass of Accounting recognises
(a) Outstanding and Prepaid Expenses
(@ etna) ara
5. Under Acer Bai of Accounting
(@) both cash nd red warsactions are recorded
(@ onlycresittransactionsare recorded.
(0) Aecuedincomesand incomes Peccvein Advance.
(@ None ot theabove.
(6) ony cash transactions are recorded.
(@) None ofthe above
[Ans 1. ah 2 fo) 3 (4. (5. (a}] Bsus
‘Objective Type Questions,
1. State whether telling statements ae True or False:
(0) Accrued income wil erent Asets and Capital
Purchasing car for persona ute by proprietor wl Increase Assets and Capital
ino capitals ¥ 230000 and labs are 3Q000. Hs xed and curent asses ae Inthe ato
of 3:1. sued and current asets willbe € 1.72500 and 57500.
1F 5204s received fom debtors of 000 nfl sttement, Capita wil be deceased by 80
Custancing expenses ae shown on Assets side of alance Sheet
(Ans. (Te; (i Fase) False; i) Tue; (Fale
st 5s
2. Fllin-the blanks wth approprictewords:
(Determine the missing amounts onthe bass ofthe Accounting Equation:
Assets Unbites + Cepital
fa) 29000 isco +
oy = ©5000 + Fr0p00
(a tra000 = + ¥ 8000
(i) Determine the missing smountson the bass ofthe Accounting Equation:
Acs, Ubiltios Capita
@ 30000 79,000
‘) T50000 30.000 pane
f@ T7500 190.00
Tans. (a) 85,000; () 815,000; (8 2,000; i (a)® ,00,00;() 8 1,20,000; )® 75,0001
“Selec the coc ternative:
1. The correct accounting equation it
(o) Assets Lobes ~ Capital, (0) Assets= Ladies + Capt
(6) Uablitiog = Acste + Capital (@) Capital Assets + Liabiiies.
2, Payment of Rent to Shekhar will
(a) Decrease Asots and Libis (b) Increase Aret but Reduce Capital
(@) Decrease Assets and Capital (A) crease Asets and Reduce Labites.
13. Hashad commenced business with capital of £10000. At the end of the year his assets were
£50000 and creditors were 25,000. His osing capital and profs forthe year willbe
(o) €2.75 00nd 875000, (&) 225000and #75000.
(@ £275,000 ana 50.000 (@) 275 000ana? 1.25000.
4. Onnerscapitalin beginning wast 45,000, Creitrs at theend were 30,000Reverue during the peiod
‘was 65,000 Expenses during the period were & 40,00, otal equity atthe yearend ill be
(a) €,00000. T2000.
(@ & 80000. (@) None ofthese
‘5, Financial postion of Surbias on 1 Apri 2020 nas asunder: Plant € 22,000; Stock 8 45,000; Creditors
‘U12500;ank overdraft 24800; Cash € 15,700; Debtors € 27,900 Bils Payable * 9,600; vestments
"£31000 Buléings 80,000. Her capital atthe yearend will be
(a) %257000. (0) 851,100.
(@ 308600. (@) 1993500. 6. imerest on Drawings charged 1,500. n accounting equation, wll be shown as
(o) Increase capital by 1500 and decreace cath by 150.
(0) Increase and Decrease capital by 1,500
(e Increase capital and Interest on Drawings by 1.50.
(@) Decrease capital and cash by 1,500,
77. Anexpansion of sccounting equation i shown at
(a) Proftand Loss Account (0) Wading Account
(@1 Manufacturing count. (@) Balance sheet.
8, Owners Equity
(o) Balance of Captal Ae, (0) Balance ofcredors Ale
(@) Balance ofCash Ae (@) Balance of Drawings
9. Find opening capital when
Assets =® 400000; Profit = 825,000 and Crests = 255,00.
(@) €1,20000 (©) €145000
(a 8170000 (@) 375000
Ass 1.0); 2:3. (04 (a5 (6. (0; 7-( 8 (a 9.0)
ee aac
a
Preece
camencmame
Bee eee teres
peo rep contol arerpieerberal cpa re
Earner mencies
oe eee
Th (fab Foe
fetes oh ete
iy oaaeg ia ae ae Tero
fa a pee aston aae eto
3 creme
) False: (True; (v) True
iv) Dr stands for ‘ond Crstand for.
(0) Debit what comes in and credit what goes outs the le of _ Account
(ot. Cash or goods withdrawn by the proprietor for his personal use debited to
‘ecourt.
(oi) Debit in elation to Acet Accounts and Expense Accounts means. an but in
relation to Labilty Accourts Capital Accounts and Revenue Accounts means
(sin ebital expenses and oss and cred allincomes and gainsisthe nie of Accounts.
{dns.:() giver i) personal account i) captalaccountv debit ced;
(Rea; (ui) Drawings (vi) increase decrease; (i) nominal]
“Multiple Choice Questions (MCQs)
“Selec the corset temative:
1. Bank account ta
(a) Personal Account (0) Real Recount.
(6) Nomina Account (@) None ofthese 2, Which ofthefollowing accountshasa cet balance?
(2) Careagetrward (8) Discount Received
(@ cemage outward {@) Discount lowed
3. Sundry Creditors Account isa
(a) Revere Account (0) Capital Account,
(0 Uablity Account { Noneofthese,
Sales Accounts a
(a) Revere Account (0) Libr Account.
(@) Cepia Account (d) Noneat these.
5, Salavies Account is
(a) ancxpense Account (0) anasset Acourt
(@) aUability Account, (d) Noneatthese,
6. ‘Machinery Purchases 2
(o) Real Account (0) Nominal Account.
(@) Persora Account (@ Noneofthese
17. ‘Discount lowed casted as 2
(o) Real Account (8) Nominal Account
(@ Personal Account (4) None theabove,
8, Patent dasahed sa
(a) Asset Acount. (©) Labity Account
(@ cepa Account {Revere Account
9, ‘Outstanding Expenses ar classed as
(a) Labiity Account. (0) Asset Account
(@1 Revenue Account. a Gaptal Account.
10, Interest Recevedis classified a=
(a) Asset Account (0) Revere Account,
(@ Cepital Account (Liability Account.
11, Purchases ae casted as
(a) Expense Account (0) Asst Account,
(@ pital Account. (Revere Account
12, Cariage invard’scssifed 35
(a) Asset Acount (0) Expense Acourt
(@ Copia Account {Listy Account
(Ansa 1 (a) 2. (6) 3. (04 (5a 6 (a7 (08 (a9. (a 10. (8); 1. aly 12. (0h)
Penta ht it ern)
Pianeta ceed
1. State whether tefelowing statements are True or Fase:
{0 Cash meme isa source voucher for purchaser of goods on credit
Ui) invoice ia source voucher forsllerof goods on cect.
{in Accourting vouchers prepered from source voucher
(i) seller receives back the goods sold, he prepares Credit Note.
|W) Accounting Vouchers prepared for Cash and Credit purchases
(Anse (Fls; (i True i) Tue (v) True; () True]
9 2, Filin-the banks wit appropricte words:
(Cash memo i prepared when goods are sold against,
Ui) tnvoice a source woueher fr purchaser of goods on
ui) purchaser of goods etuns the goods he wl prepare
(W) GshMemoisa vvouther.
(W) When goods re so on credit the salle prepares an
(a When goods are purchased against cash the purchaser wil
(Ans. (casi credit (i) Debit Note; (iy) source) invoice (i) Cash Memo
Multiple Choice Questions (MCQs)
1. Books of Account are writen onthe bass of
(a) Source Document. (©) Accounting Vouchers.
(@ Beth (oar. (@) None ofthese
2, CrectNoteis prepared
(a) when credits ven tothe account, (©) when debits gven tothe account
(@ both (obard i (@ none theabove,
[Ans 1.0) 2.)
1. State whether theelowing statements are True or False:
(Sale of ot funiture to Paresh fr cash should be debited to Paestis Account
Gi) Inereasesin assets are debited and decreasesin asses are credited
lun. Cath scour alowed to customers an expense for business.
(i) nereasesin capital ate ceded and decreases in capital are debited.
(0) Debit the giver and credit the recewver the rl of Personal Accounts.
(09. Some ofthe transactions may have ony one account.
(ui). For every debit, theeis a cxrespondig cect of equal amount.
(vt) Let hand side of an accounts called the debit se.
(i) Wages, when pad are credited to Wages Account
(8) Narration should ot be witen na Journal
{Ans (Fae; True (i Tre) Tre () Fle Fle i Tue i Tue Fae) Fae]
2. Flhin-the blanks with approprictewords:
() Receivers Account
i) Seid goods to Ram— Ramis Account wl be
(in. Receved iterest—inerest Account wl be
(i) Wade discount inthe books
(W) Alourralis known asaboot ot entry.
(1) Business transactions are recordedin the oder in which they
{uh Jourral entry may have more than one debtor mre than one:
(vi) Joural provides an explanation ofthe
(i) Machinery Accountisnethe a Recount 08, Account.
” Discount is allowed io encourage timely payment.
wo Discount is allowed o encourage large purchases
ow) Discourt is shown separately nthe books of account
10 oun
om
ow
oo)
co)
Discount i ot shown separately in the books of account
Discourt i not reduced from the invoice price
Discout i reduce fom the Invoice pce.
‘Gan Dscourt allowed @ 10% on € 15,500; the amaunt paid willbe
Catalogue prceis® 600. Trade iscountalowed # 1cHewilbe spa Cash Discount
5% wil be
(Ans () debited: (i) debited; credited) not recorded; orignal (vi occur (i) cea;
(ui transactions (x) Personal, Nominal) Cash: x Trade; i) Cash:
(en Tac; Gv) Cash (x) Tae; fv) 13,950; Gv) 60,8271]
Multiple Choice Questions (MCOs)
1
Journals aed» book of
(a) primary erty (0) secondary ent
(e)Bralenty. (@) None ofthese
Rent pai isa
(a) Personal Account (©) Real Account
(6) Nominal Account (@) Nlof these
Robert's Accountisa
(a) Personal Account (0) Real Account
(@) Nominal Account (@) Alofthese
Business transactions ae recorded
(@)inchronoiogial oder. (0) week
(o) atthe endaf the month (@) Aiofthese.
‘A compound Journal entry
(a) has equa debits and cre (6) ganeray extends to several pages.
(@ does rot requite narration. (@) Alofthese
Which of thefolloning accounts willbe credited on gving cash donation?
(a) cash ne (©) Donation A
(e) Purchases Ae (@) None ofthese
Sale ot goods to Ram fr cashis debited to
(o) Rams Re (0) Cash ale
(a Sales Ne (@) None ofthese
Withdrawal of goods fom busines by the proper is credited to
(a) Drawings A (0) Capitaine
(e) Purchases Ale (@) None ofthese
“rae Oscount lowed is deduce rom the gros sales Sess recordedin the books account
(@) Gross Sslesandrade Dscount separate. (6) Net Sales invoice.
(@ None ofthe above (@ Anyot a}andy
Tiade Discount received on purchasesis recorded inthe books of acount allows
(a) Trade Dscountiscreditecto Discount Received Accourt.
(0) Tade Discounts deducted from the noice Price and recorded at et value
(@ None ofthe above
(A Anyofte) andi.
Cash biscourt alowed srecordedin the books of account s flows:
(o) Cash Discounts debited to Discount Alowed Account.
(0) Cash Discounts reduced rom the invoice Pre.
(@ None ofthe above
(a) hay atte) and bs
u 12, Cash Discount receved i recorded inthe Books of acount as follows
(a) Cash Discounts celted to Dscount Received Account
(6) Cash Discounts reduced rom the voce Pie
(@ None ofthe above
(3 Anyot(e) andi)
13, Joumal entry for Stock lft unsold tthe end ofthe years:
(@) Dx Gosing tock Alcand Cr-Tading Alc
(0) DeTrading Aleand Ce Cesing Stock Ne
(@) Dr Prot &Loss Arc and Cr. Closing Stock Nc
(@) De Gosing tock A/c apd Cr Proftand Loss Ne
14. Cheque of 1,000 received rom Ramesh was donored.Joural entry willbe
(a) Dx SalesRetum A/eand Cr Ramesh by 1,000,
(0) De Ramesh and Cr Bank Ay € 1.000
(@) DeSales Return AeandCr Suspense Alc by 81,000,
(@) None ofthe above
15, Joumal entry for wood (gocds of 2,000 used for making offce futures:
(a) Dx Furiture Aland Cr. Cash Ne by 82,000,
(b) OrCaeh Acand Ce. Future Ac by 22.000
(6) De Fumiture Alc ned Cx Purchases Ay €2,000
(None ofthe above
16, Joumal entry for payment of income tax 5.000 by the proprietor i
(a) De Income ox Ac and Ce Purchases Ay ®'5000
(0) Dx Purchases A/c and C Drawings eby® 5000
(@) De Drawings Acard Cr income ax Alc by 5,000,
(@) Dx Drawings Acard Cr Cash Aleby 5000
17, Jouml entry fr sling old machinery with book value 5000 for® 35005:
(a) Ox Cash Alc by 5,000 aed Cr: Prot and Loss Achy 100and Sales Alcby 3.500
(6) Dx Soles Ac by £3,500 ard Profit and Loss Alcby® 500 and Gr Cash Alby ® 5000
(6) De Cosh Atand Cr Sales Alby 3,500
(@) Dx Cash Ale by® 5,00 aa Cr Machinery Alby ® 3500 and Profit and Loss Nc by 1,500
[Ass 1. (0) 2. (03. (al. (a5. (0:6, (0:7. (6:8.
9. (0; 10. (0 1. (a); 12 (a) 13a 14 (15. (16. 17.)
‘State whethe the fllowing statements are True o False:
(7 fhe Goods are sold or supplied fom Deh to Gurugram, itis inter tate Supply
i) Ledger's the principal book of account
(i) Ledger isnot prepared from Jour
(i) A Ledger iscaled a book offiral ent,
(©) Baancing a Ledgers necessary.
{Ansa (Tre; i) Tue il) Fose; fv) Tue () True]
2 2, Filin-the banks wit appropricte words:
(0 Ledger provides a tue picture ofa group of similar.
Gi) Balance of Personal Accounts cated.
(a) every account as ies debi and cre.
li) Sainces of nominal accounts ar waneeredt Tang Account of Aecours.
(0) The bookin which every account is maintained isknown as
(Ans. tansaction; (i forward il) two; w) Proft and Loss; Ledger)
Malti
‘Choice Questions (MCQs)
“Selec the core ternative:
1. Ledgers called a book of
(a) prary erty (0) secondary entry.
(@ fralentry. (d) Noneof the above
2. Ledger Account is prepared from
(a) events (0) tanszctions
(@ Journal. (@) Anyofthe above
23. Busines transactions are recorded
(a) inchronoiogical order, (0) weeky.
(@ attheendafthe month. (d) Anyoftheabove
4. Ledge isa bookin which
(a) Realand Nomina Accounts are maintained.
(6) Realand Persona Accounts are maintained
(@) Real Personal and Nominal Accounts are maintained,
(@) None ofthe above,
(Ans 1.(c:2 (3 (a4 (1
Ted
ea
1. State whether teflowing statements are True or Fase:
(Cash Book's beth a Subsidiary Book and Principal Book.
sh Column of Cash dook cannot havea debit balance.
Payments are shown inthe debit side of the Cash Bock.
Receipts are shown inthe crt side ofthe Cash Book
Conta enies are not posted int Ledger Accounts.
In cee of fark Overdraft, Sank Column Cash Bookwwill how credit Balance
‘Cheque recived but rot deposed into Bankon the same dys debited to Cheques Hand Account.
‘Bank Column in Cash Book may show Credit Balance.
In atwo-column Cash Book, both Cash column and Bank column ae balanced.
‘cash withdrawn fom bank for personal wei a Conta Entry.
Cheque received and endorsed entered in Journal Proper.
Balance of Petty Cash Bok s an expense.
Balance inthe ptt cash bookisan ase
B
Egselggecsss
g 2
(0) Sale of goods by Mohan to Sohan fr € 1,000 il be recorded in the Sales Book
[ans ( Tre; (i Fale i Fs; Fale () Tue; vi Tru) Tue (i) True;
(hy True (a) False; a) True; el) Fale; a Tre: ey True)
-Fin-the banks wit appropricte words:
() Cash Book records transactions,
Ui) Credit wansacions are ecordedin—____propet
(a) Cash Column nthe Debi sdeof Cash Book shows cash
(i) Cash Column inthe Credit side of Cash Book shows cash
(Balance of ash Book means
(ot) Bank olursn of Cash Book ay have or bsance
(ui) Bank Overdraftin Cash Book means Taare
(vi) sank lance in Cash Book means, balance
(i) Cash Account isan. Tecoort
(8) Bank Account may be Account or Account.
Tans casi Journal: recepts( payments; (cosh in hand:
(debt, cred (i) credit (i) debi fx) ASS Asset, ably}
Multiple Choice Questions (MCQs)
‘Selec the core atematve:
TTansaction posted in the ladies fom two column Cash Book is
(@) Gash ceposted into bank (6) Cash thera from Bank.
(@ Cash withéravm fom barkforpersonaluse. (@) Noneof these
Transaction nt postedin the ledger fom two column Cash Books
(o) Withdrawal fom bank for ofce ure (b) Withdrawal from bank for personl us,
(@) Cheque issued for purchase of asset (@) None ofthese
both debit and the ret aspects of transaction are recorded inthe cash Book ise its called
(a) anopering entry. (6) compound entry
(@ a ranser ent. (@) acontraenty
A dheque received but rot deposited the same day into bank is entered in
(6) Cash column onthe debit side. (6) Bank column onthe debit side
(@ Cash column the cet ie (@) Joural Prope:
(Cheque retuned dshonoved itis recorded in
(@) Gash colurnon the crest side (©) Cash column onthe debt side
(@1 Bankcolurm onthe Credit side (@) Journal Prope.
Petty Cash Bock records
(@) payments ofall amourts (6) receipts ofsllamounts.
(@ Both (a and (@) Al cashreceitsand payments
Payments made through Pest Cash Book
(o) are not posted int Ledger Account. (0) ate pote ito Ledge Accounts
(@ Beth (a) ara (@) None ofthese
Petty Cash Receipt are recorded in
(a) Petty Cash Book (6) Jourra Proper.
(@) Cash Book (@) None ofthese
Petty Cath Book wil havea
(a) creat balance (©) dobitbalance
(6) debit ori balance (@ creditor nil balance
u 10. if tyam has sold goods to Ramesh for cash the entry wil be recorded inthe
(a) Cash Book, (8) Sales Book
(@ Jounal, (Purchase Book,
11, Rambas purchased gocds om Param for cash the enty willbe recorded inthe
(a) Cash Book, (0) Sales Book
(@) Jour (d) Purchases Book
12, ifRamesh has sold goods for cash the entry willbe recorded
(a) inthe Cash Book (6) inthe sles Book
(@ inthe Journal Proper (None ofthese,
13, The Cath Book records
(o)allcash receipts and payments (0) cash and credit sale of goods
(@ Both (o) ara (None these
Ams. 1. (l:2 (3 (4 (5 (6,0) 7.) 8 (9. (210 (a 1.(0); 12. (a 13. fa)
eae
‘Objective Type Questions
1. State ether te ftowing statements are True or Fase:
() Sales Journal is used forreorang cash as well as credit sales.
i) Joural Proper records purchase and sles of asetson cred
Lin. Adjustment entries ae passed at the end of the accounting period
(0) Closing ene are used fer desing of acounts relating to expenses and revenues.
o
ro
Grd
Soles Return ook has debt balance
Purchases Return Book ha debit balance
(Ans Fale; i) Tue; i) Tue iv) Tue; e Teue:() False
2, Filli-the banks wth eppopricte words:
(@ Tota of Puchases Books posted tothe, of Purchases Account
i) otal of Sales Book posted tothe. of Sales Account.
Ui Joural Proper records transactions ofthe nature for which Journal i not
‘maintained.
(i) Sales Book's prepared from the invoice
(W) Closing enries are passed atthe ofthe accounting pee.
(09 In Journal Prope. only____ discounts recorded.
(Ans: () debit; (i) credit (it) Special (i sales; vend) cas)
‘Selec the core atematve:
1. Sales Book
(a) 1s par ofthe Journal, (0) IsapartottheLedger
(e) isa partafthe Balance Sheet. (4) Noneat these,
2, Total ofthe Sles Book s posted to
(a) credit ofthe Sales Account (0) credit ofthe Purchases Account
(@) credit ofthe Copia Acount. (credit of Customers Accounts.
13. Period total of Sales Return Journals posted tothe
(a) Sales Account. (0) Goods Account
(@ Sales Return Account (6 Anyot these.
6 ‘4 Param purchase goods om Dew. it wil be recorded in
(o) Purchases Book 18) Cashook
(@) Purchases Retrn Book None these
'5. Purchase of Machinery by Anta desler in machinery fom Yogesh for 106000 recorded in
(a) CashBock, (0) Sales took
(a Purchase Book (@) Jourral Proper.
6, Purchase of Machinery by Abhay, a dealer in stationery from Yogesh fr 1.60.00 is ecorded in
(a) Cash Book (8) Sales Book,
(@ Purchase Book (@) Joural Prope.
7. Sale of Machinery by Amit, a dele machinery or 120,00 is ecordedin
(a) Cash Book, 1) Sales Book
(@ Purchase Book (@) Jour} Proper.
8, Sale of Machinery by Suresh, 2 dealer in stationery to Suit for 20.00 is recorded in
(a) Cash Book (0) Sales 00k
(@ Purchase Book (Journal Proper
9. Purchases Accountin the ledger shows
(a) Alipuchases of goods (0) Gea purchases.
(@ Cash purchases of gooes. (@) eat purchases of assets other than goods.
40, Sales Account inthe ledger shows
(@) Alsalesofgoods. (0) Get sles
(6) CashanlesoF good (@) Cre saesofasets other than goods.
114, Closing entries are recorded
(a) Cash Book, (6) Ledger.
(6 soural Prope. () Balance sheet
12, Debit Note fort 1,00 issued to Suresh for goods returned by usisaccouted in
(a) Sales Book (0) Purchases Book
(6) Journal Prope. () Purchases Return Book
13, Rectiying entry fr the eror of ret purchase of goods of ® 19000 recerded as cred sale to Rav
detected to mnt ater pasted
(@) Journal Proper. (©) salest00k
(@ Cash Book (Purchases Book
ans 1a 2 (a3. (oh. (67 (18 (9. (a); 1a 1. (); 12 (a 13.)
ao ukokiee er eeadermeed oad)
1. Stat whether tefolwingsttemerts ae Tru orFbe:
{the Goods are sal or upped fom Lucknow UPt Kanpur UP tine State Supp
{nthe Goods wrescisor sipped rm Grknpu UPtoRoat Wet Benga ite tatu
{in GStpadnputGsM canbe set ffagainst GS Coleces (vip GST Rint acon butane
(Input ret of GS paid isnot alowedon goods given os donation.
(0 nput edt cf ST paid on Food and Beverages ot lowed. therfore, cot
(i) GST ot ved on Sli Wages.
(ns Fei Fle Tre Te: Tue) True
2. Fine blanks wth poopie word
0 cStean tae
i GSt.chargedbys tacos
16 (an Sale made within the sae sale
(i) GST pay the purchaser of Goods andlor Services is. ost
(W) GS caleced by the seller of Goods andlor Services is ‘est
(06ST paid on purchase of asses tobe used in business is allowed as. credit
{When GST isnot charged bythe seller of Goods andor Services buts pad into the Government
‘Accourt etl by the purchase of Goods and/or Services itis termed 35,
(wi) SF calected isa
Tans. (indirect: i registered; intrastate; (Input: (v) Output:
(ui input (id Reverse Charge; (vil liability]
Select the correct ternative:
1. Out ofthe flowing, whichis the objectve of ST?
(a) Developing Common National Market by having One iret Tx.
(6) Ease Doing Business.
(@ Simpliving Compliance of ncret Taxes
(a Alot the above.
2. Onintastate (ie, within the stat) purchase of goods, which of he olowing GSTs levied?
(e) Cost and cst (®) CosTandsest
(@ sosrand cst (@) None of these
3. Oninterstate fe, outside the state) purchese of gods which af the flowing GSTs levied?
a cst (6) tesTand cost.
(@ cost and sr. (@) None ofthese
|. Input Cred of GST paid dvectly ata Government Account urder Revere charge
(@) notaliowed (0) alowed.
(@1 mayormay not be alowed, (@) None ofthe above
(Anse 1. (d)-2 0) 3a) ())
|
1. State whether te fellowing statements ae True or False:
(Bank econciation Statement isnot part of the Double Entry System,
Ui) Sank blanceas pe Bork Statements shown in the Balarce Sheet atthe end ofthe yor
ui) Bank Reconelation Statements prepared atthe end of the accounting eat ony
(Cheque issued but not presented for payment wil euce the balance as per the Pass Bock.
|W) Pats Books the Statement of Account ofthe custome maintained bythe bank
(o_Bank Recontation Statement prepared by the account holder and not by the bank
(0i) Bank Reconciliation Statements apart of Cath Book
(vi) Bank Reconciation Statements part of Eank Account.
(i) Bank Reconciliation Staterent may be prepared at ary time ofthe accounting period
(2) Bank Recondiation Statement brings out the reasons fo difference in the Pass Bcok and
Gath Book balances,
(Ans. (True; False; (il Fale) Flse() Tue (vi True
‘i Fae (vi) Fase: Un) Tue: 6) True]
” 2. Flin-the Blanks wth approprictewevds:
( Chequesdeposted but not yetcleredare when Bank Reconciliation Statement
's prepared staring with debit bark balance asper Cash Book
i) Cheques isived but rot yet presented are 1 Debit Cash Book balance when
‘Bank Reconciliation Statements prepare.
(a) Charges charged by bankand nt recorded inthe books of accountare tocreat
Cash Book balance when an Reconstion Statement is prepared.
(1 tnterest alowed by bank ard not recorded inthe books of account are from
Cred Cath Book balance when Bank Reconciliation Statement i prepared
(o tnterest allowed by bank and not recordin the books of acount are oebt
Cath Book balance o prepare Bak Reconciliation Statement
(on A Bank Reconciation Statements peperedo.
(bi) When bankcolirmn of Cash Book shows 3 dsbitbalance, means
(wi) When Pass Book shows a ret balance, means
(i) When bank column ofa Cash Book shows» cet blancs, means
(2) When Pass Book shows a debit balance it means
Ans. ( deducted; i) added: (i) added: (v deducted; (added: (vi) reconcile bank balance;
‘ui balance ying with bank: (vi) balance ing with bank, ie, amount due from the bank:
(ix) everdraft .e, amount duet the bank; ts) overdraft as per Pass Book]
Multiple Choice Questions (MCQs)
Saletthecomectltrnative
1. Which of the following wil not require adlustmentin the Cash Book balance?
(a) Etrorin Pass Book (©) Cheque ssued but not presented for payment
(@) Cheque deposted but not deared (@) Alle above
2, Which ofthe following wil not equire adjustment inthe Cash Book balance?
(0) Cheque sued bot not presented for payment
(0) Cheque deposited but not eared.
(0) Cheque wrongly cected by bank
(@ Alief he above
23. A chaque of 500 receive roma debtor recorded inthe cash book but omitted tobe banked, When
balance as per cash bookisthe starting point,
(o) 85,0000 beadded (6) € 5000 to be subvacte.
(@ Noadjustmentis requires (@) None ofthese
‘4 Achoque of 10,000 received om a debtor deposited but omited tobe recorded in the cash book.
‘When balance as pe