Chapter 3: Books of Prime Entry — Online MCQ Test
ACCOUNTANCY · CLASS 11th · Tamil Nadu State Board
Practice Chapter 3: Books of Prime Entry with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers basic accounting records source documents and journalizing transactions. Students master rules of personal real and nominal accounts alongside posting journal e....
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Chapter 3: Books of Prime Entry — Important Questions & Answers
Which book is known as the 'Book of Prime Entry'?
- A. Ledger
- B. Journal
- C. Trial Balance
- D. Balance Sheet
Answer: B. Journal
A Journal is called the book of prime entry because transactions are first recorded here in chronological order.
A Journal is called the book of prime entry because transactions are first recorded here in chronological order.
The process of recording transactions in the journal is called:
- A. Posting
- B. Balancing
- C. Journalising
- D. Casting
Answer: C. Journalising
Journalising is the act of recording business transactions in the journal.
Journalising is the act of recording business transactions in the journal.
If furniture is purchased for cash, which account should be debited?
- A. Cash A/c
- B. Furniture A/c
- C. Purchase A/c
- D. Supplier A/c
Answer: B. Furniture A/c
As per the real account rule, debit what comes in; here, furniture is coming into the business.
As per the real account rule, debit what comes in; here, furniture is coming into the business.
Which is NOT a rule of the Double Entry System?
- A. Every debit has a corresponding credit
- B. Increase in assets is debited
- C. Increase in liability is debited
- D. Expenses are debited
Answer: C. Increase in liability is debited
Increase in liability is credited, not debited, under the rules of accounting.
Increase in liability is credited, not debited, under the rules of accounting.
A trader pays Rs. 10,000 for machine installation. What is the accounting treatment?
- A. Debit Repairs A/c
- B. Debit Machine A/c
- C. Debit Wages A/c
- D. Debit Installation Expense A/c
Answer: B. Debit Machine A/c
Capital expenditure like installation charges on a new machine is added to the cost of the asset.
Capital expenditure like installation charges on a new machine is added to the cost of the asset.