NCERT MCQ ON RECORDING OF TRANSACTION-II:


Q1.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 account in the ledger

Answer: (d) Bank and cash account in the ledger


Q2.Double column cash book records
(a) All transactions
(b) Cash and bank transactions
(c) Only cash transactions
(d) Only credit transactionsAnswer

Answer: (b) Cash and bank transactions


Q3.Goods purchased on cash are recorded in the
(a) Purchases (journal) book
(b) Sales (journal) book
(c) Cash book
(d) Purchases return (journal) bookAnswer

Answer: (c) Cash book


Q4.Cash book does not record transaction of:
(a) Cash nature
(b) Credit nature
(c) Cash and credit nature
(d) None of theseAnswer

Answer: (b) Credit nature


Q5.Total of these transactions is posted in purchase account:
(a) Purchase of furniture
(b) Cash and credit purchase
(c) Purchases return
(d) Purchase of stationeryAnswer

Answer: (b) Cash and credit purchase


Q6.The periodic total of sales return journal is posted to :
(a) Sales account
(b) Goods account
(c) Purchases return account
(d) Sales return accountAnswer

Answer: (d) Sales return account


Q7.Credit balance of bank account in cash book shows :
(a) Overdraft
(b) Cash deposited in our bank
(c) Cash withdrawn from bank
(d) None of theseAnswer

Answer: (a) Overdraft


Q8.The periodic total of purchases return journal is posted to :
(a) Purchase account
(b) Profit and loss account
(c) Purchase returns account
(d) Furniture accountAnswer

Answer: (c) Purchase returns account


Q9.Balancing of account means
(a) Total of debit side
(b) Total of credit side
(c) Difference in total of debit & credit
(d) None of theseAnswer

Answer: (c) Difference in total of debit & credit

Fill in the Correct Words

Question 1.
Cash book is a …………….. journal.Answer

Answer: Subsidiary

Question 2.
In Journal proper, only ………………. discount is recorded.Answer

Answer: Cash

Question 3.
Return of goods purchased on credit to the suppliers will be entered in ………………. Journal.Answer

Answer: Purchases Return

Question 4.
Assets sold on credit are entered in ……………….Answer

Answer: Journal Proper

Question 5.
Double column cash book records transaction relating to ……………. and ……………….Answer

Answer: Cash, Bank


Q1.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 account in the ledger

Answer: (d) Bank and cash account in the ledger


Q2.Double column cash book records
(a) All transactions
(b) Cash and bank transactions
(c) Only cash transactions
(d) Only credit transactionsAnswer

Answer: (b) Cash and bank transactions


Q3.Goods purchased on cash are recorded in the
(a) Purchases (journal) book
(b) Sales (journal) book
(c) Cash book
(d) Purchases return (journal) bookAnswer

Answer: (c) Cash book


Q4.Cash book does not record transaction of:
(a) Cash nature
(b) Credit nature
(c) Cash and credit nature
(d) None of theseAnswer

Answer: (b) Credit nature


Q5.Total of these transactions is posted in purchase account:
(a) Purchase of furniture
(b) Cash and credit purchase
(c) Purchases return
(d) Purchase of stationeryAnswer

Answer: (b) Cash and credit purchase


Q6.The periodic total of sales return journal is posted to :
(a) Sales account
(b) Goods account
(c) Purchases return account
(d) Sales return accountAnswer

Answer: (d) Sales return account


Q7.Credit balance of bank account in cash book shows :
(a) Overdraft
(b) Cash deposited in our bank
(c) Cash withdrawn from bank
(d) None of theseAnswer

Answer: (a) Overdraft


Q8.The periodic total of purchases return journal is posted to :
(a) Purchase account
(b) Profit and loss account
(c) Purchase returns account
(d) Furniture accountAnswer

Answer: (c) Purchase returns account


Q9.Balancing of account means
(a) Total of debit side
(b) Total of credit side
(c) Difference in total of debit & credit
(d) None of theseAnswer

Answer: (c) Difference in total of debit & credit

Fill in the Correct Words

Question 1.
Cash book is a …………….. journal.Answer

Answer: Subsidiary

Question 2.
In Journal proper, only ………………. discount is recorded.Answer

Answer: Cash

Question 3.
Return of goods purchased on credit to the suppliers will be entered in ………………. Journal.Answer

Answer: Purchases Return

Question 4.
Assets sold on credit are entered in ……………….Answer

Answer: Journal Proper

Question 5.
Double column cash book records transaction relating to ……………. and ……………….Answer

Answer: Cash, Bank

Question 6.
Total of the debit side of cash book is ……………….. than the credit side.Answer

Answer: More

Question 7.
Cash book does not record the ………………. transactions.Answer

Answer: Credit

Question 8.
In double column cash book ……………….. transactions are also recorded.Answer

Answer: Bank

Question 9.
Credit balance shown by a bank column in cash book is …………………Answer

Answer: Overdraft

Question 10.
The amount paid to the petty cashier at the beginning of a period is known as ………………. amount.Answer

Answer: Imprest

Question 11.
In purchase book goods purchased on ………………. are recorded.Answer

Answer: Credit

State whether the following statements are True or False

Question 1.
Journal is a book of secondary entry.Answer

Answer: False

Question 2.
One debit account and more than one credit account in a entry is called compound entry.Answer

Answer: True

Question 3.
Assets sold, on credit are entered in sales journal.Answer

Answer: False

Question 4.
Cash and credit purchases are entered in purchase journal.Answer

Answer: False

Question 5.
Cash sales are entered in sales journal.Answer

Answer: False

Question 6.
Cash book records transactions relating to receipts and payments.Answer

Answer: True

Question 7.
Ledger is a subsidiary book.Answer

Answer: True

Question 8.
Petty cash book is a book having record of big payments.Answer

Answer: False

Question 9.
Cash received is entered on the debit side of cash book.Answer

Answer: True

Question 10.
Transaction recorded both on debit and credit side of cash book is known as contra entry.Answer

Answer: True

Question 11.
Balancing of account means total of debit and credit side.Answer

Answer: False

Question 12.
Credit purchase of machine is entered in purchase journal.Answer

Answer: False

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