Chapter 7 ACCOUNTANCY : Journal and Ledger — Online MCQ Test
COMMERCE · CLASS 11 INTER I YEAR · Andhra State Board
Practice Chapter 7 ACCOUNTANCY : Journal and Ledger with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers recording primary transactions in journals writing narration posting to ledger accounts and balancing ledger debit and credit accounts..
AI-generated questions from basic to board-exam level, with instant results and explanations.
Chapter 7 ACCOUNTANCY : Journal and Ledger — Important Questions & Answers
Which book is known as the 'Book of Original Entry'?
- A. Ledger
- B. Journal
- C. Trial Balance
- D. Balance Sheet
Answer: B. Journal
A journal is called the book of original entry because transactions are first recorded here in chronological order.
A journal is called the book of original entry because transactions are first recorded here in chronological order.
What is the process of transferring entries from the journal to the ledger called?
- A. Journalizing
- B. Balancing
- C. Posting
- D. Casting
Answer: C. Posting
Posting is the technical term for transferring information from the journal to the respective ledger accounts.
Posting is the technical term for transferring information from the journal to the respective ledger accounts.
When goods are purchased for cash, which account should be credited?
- A. Purchases Account
- B. Cash Account
- C. Supplier's Account
- D. Capital Account
Answer: B. Cash Account
According to the real account rule, credit what goes out; since cash is going out, the cash account is credited.
According to the real account rule, credit what goes out; since cash is going out, the cash account is credited.
If a business has a 'Credit Balance' in the Cash account, what does it signify?
- A. Surplus cash
- B. Cash bank balance
- C. Impossible situation (mathematically)
- D. Profit for the year
Answer: C. Impossible situation (mathematically)
Cash account always shows a debit balance or zero because you cannot spend more cash than you have in hand.
Cash account always shows a debit balance or zero because you cannot spend more cash than you have in hand.
What happens if a transaction is recorded in the ledger but omitted in the journal?
- A. It is a valid accounting practice
- B. It violates the principle of original entry
- C. The balance sheet will automatically adjust
- D. It results in a double-entry error
Answer: B. It violates the principle of original entry
Accounting records must start with the journal; skipping the journal breaks the audit trail and violates standard accounting procedure.
Accounting records must start with the journal; skipping the journal breaks the audit trail and violates standard accounting procedure.