NCERT MCQ ON RECORDING OF TRANSACTION-I:


Q1.Which of the following equation’s correct?
(a) Assets = Liabilities – Capital
(b) Assets = Capital – Liabilities
(c) Assets = Liabilities + Capital
(d) Assets = External Equities

Answer: (c) Assets = Liabilities + Capital


Q2.Which of the following is correct?
(a) Profit/Loss = Closing Capital + Additional Capital – Drawings – Opening Capital
(b) Profit/Loss = Closing Capital-Drawings-Additional Capital – Opening Capital
(c) Profit/Loss = Opening Capital + Drawings made – Additional Capital – Closing Capital
(d) Profit/Lose = Closing Capital + Drawings made – Additional Capital – Opening CapitalAnswer

Answer: (d) Profit/Lose = Closing Capital + Drawings made – Additional Capital – Opening Capital


Q3.The liabilities of a firm are Rs. 60,000 and the capital of the proprietor is Rs. 40,000. The total assets are:
(a) 60,000
(b) 1,00,000
(c) 20,000
(d) 40,000

Answer: (b) 1,00,000


Q4.If a film borrows a sum of money, there will be
(a) Increase in capital
(b) Decrease in capital
(c) No effect on capital
(d) None of the above

Answer: (a) Increase in capital


Q5.Debit Means
(a) an increase in asset
(b) a decrease in asset
(c) an increase in liability
(d) an increase in capital

Answer: (a) an increase in asset


Q6.Journal is a book of in accounting.
(a) All non-cash transactions
(b) Secondary entry
(c) Original entry
(d) All cash transaction.Answer

Answer: (c) Original entry


Q7.The following account has a debit balance
(a) Creditor’s A/c
(b) Capital A/c
(c) Building A/c
(d) Loan A/c

Answer: (c) Building A/c


Q8.Ledger is a book of …………. in accounting.
(a) All non-cash transactions
(b) Secondary entry
(c) Original entry
(d) All cash transactions

Answer: (b) Secondary entry


Q9.The process of recording a business transaction in the journal is called
(a) Costing
(b) Balancing
(c) Posting
(d) Journalising

Answer: (d) Journalising


Q10.Which of the following is a cash transaction?
(a) Sold goods
(b) Sold goods to Ravinder
(c) Sold goods to Ravinder on credit
(d) Sold goods to Ravinder on account.Answer

Answer: (a) Sold goods

Fill in the blanks


Q1.The accounting voucher are based on …………….

Answer: Supporting


Q2.Both debit and credit aspects of a transaction are shown by …………… vouchers.

Answer: Transfer


Q3.Accounting equation satisfies the …………….. concept of accounting.

Answer: Dual


Q4.Liabilities = ……………….. – Capital

Answer: Assets


Q5.Accounting equation serves as a basis for preparing …………….

Answer: Balance Sheet


Q6.Journalising is the process of entering transactions in ………………

Answer: Journal


Q7.The explanation of a Journal entry is known as ……………….Answer

Answer: Narrations


Q8.Transactions, when recorded in journal, are known as ………………

Answer: Entries


Q9.Ledger account gives the folio of ………………….Answer

Answer: Journal


Q10The balance of capital account is usually ………………… balance.

Answer: Credit

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