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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