Chapter 3: Recording of Transactions – I — Online MCQ Test
ACCOUNTANCY · CLASS 11 FIRST PUC · Karnataka State Board
Practice Chapter 3: Recording of Transactions – I with a free chapter-wise online MCQ test.
This chapter covers: Business transactions, Source documents, Vouchers, Accounting Equation, Rules of Debit and Credit, Journal entry, Ledger posting, Balancing accounts, Cash Book (Single and Double C....
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Chapter 3: Recording of Transactions – I — Important Questions & Answers
What is a source document in accounting?
- A. A document that provides evidence of a business transaction
- B. A ledger account prepared by the accountant
- C. A summary of all journal entries
- D. A document used only for cash transactions
Answer: A. A document that provides evidence of a business transaction
Source documents like invoices, receipts, and bills provide original evidence of business transactions and form the basis for accounting records.
Source documents like invoices, receipts, and bills provide original evidence of business transactions and form the basis for accounting records.
Which of the following is NOT a source document?
- A. Invoice
- B. Receipt
- C. Journal
- D. Cheque
Answer: C. Journal
A journal is a book of original entry used for recording transactions, not a source document. Invoices, receipts, and cheques are primary source documents.
A journal is a book of original entry used for recording transactions, not a source document. Invoices, receipts, and cheques are primary source documents.
When a business purchases goods on credit, which of the following entries will be recorded?
- A. Debit Purchases, Credit Creditor
- B. Debit Cash, Credit Purchases
- C. Debit Creditor, Credit Purchases
- D. Debit Purchases, Credit Cash
Answer: A. Debit Purchases, Credit Creditor
Purchases account is debited (expense increases) and the Creditor account is credited (liability increases) when goods are purchased on credit.
Purchases account is debited (expense increases) and the Creditor account is credited (liability increases) when goods are purchased on credit.
In a double column cash book, which of the following statements is correct?
- A. The bank column can show a debit balance only
- B. The cash column and bank column can both show debit or credit balances
- C. Both columns must always show equal balances
- D. The bank column is used for recording petty cash only
Answer: B. The cash column and bank column can both show debit or credit balances
In a double column cash book, both the cash and bank columns can independently show debit or credit balances depending on the nature of transactions.
In a double column cash book, both the cash and bank columns can independently show debit or credit balances depending on the nature of transactions.
A petty cash custodian has a balance of ₹2,500 in the petty cash box. If the imprest amount is ₹4,000, this situation indicates:
- A. ₹1,500 has been spent and needs reimbursement
- B. There is an excess of ₹1,500
- C. The petty cash account should be credited with ₹2,500
- D. No entry is required as the balance is within limits
Answer: A. ₹1,500 has been spent and needs reimbursement
If the imprest is ₹4,000 and only ₹2,500 remains, then ₹1,500 has been spent and should be reimbursed to restore the imprest to ₹4,000.
If the imprest is ₹4,000 and only ₹2,500 remains, then ₹1,500 has been spent and should be reimbursed to restore the imprest to ₹4,000.