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Test: Recording Of Transactions - 2


20 Questions MCQ Test Accountancy Class 11 | Test: Recording Of Transactions - 2


Description
This mock test of Test: Recording Of Transactions - 2 for Commerce helps you for every Commerce entrance exam. This contains 20 Multiple Choice Questions for Commerce Test: Recording Of Transactions - 2 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Recording Of Transactions - 2 quiz give you a good mix of easy questions and tough questions. Commerce students definitely take this Test: Recording Of Transactions - 2 exercise for a better result in the exam. You can find other Test: Recording Of Transactions - 2 extra questions, long questions & short questions for Commerce on EduRev as well by searching above.
QUESTION: 1

Proprietor is a creditor of the business for ______

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QUESTION: 2

Difference between assets and liabilities is

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QUESTION: 3

Cash Memo is a

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QUESTION: 4

Additional capital introduced in the business will increase ____ and ____
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QUESTION: 5

Goods purchased on credit will increase the
Solution:

Purchases is an expense of the business – so it decreases the profit (and hence the equity) and if it is on credit then it increases the liability.

Separately, if any of the purchases are unsold then we have inventory.
If we have inventory then this is an asset so assets increase and profit (so equity) also increases

QUESTION: 6

In Purchase book goods purchased on .........are recorded.
Solution:

Purchase book records credit purchases of goods only. Whenever goods are purchased, Purchases account is debited. In all cases of purchases, goods come into the business (as per the rule i.e. "Debit what comes in"), so purchases account has to be debited. The document on the basis of which purchase book is prepared is known as "Credit memo".

QUESTION: 7

In all circumstances Assets will be always equal to _____ + ______
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QUESTION: 8

Transfer voucher is prepared for
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QUESTION: 9

The company pays its creditors by cheque. What is the effect on assets and liabilities
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QUESTION: 10

The company has collected money from its debtors by cheque.What is the effect on assets and liabilities
Solution:

Correct answer is D, because in double entry system every transaction has double effect, so when we collect money from our debtors by cheque, it will increase our bank balance and at the same time it also decrease debtors. so, simultaneously increase and decrease in assets with the same amount means no effect on assets and liabilities.

QUESTION: 11

In which book credit sales of goods are recorded
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QUESTION: 12

Which document evidencing that the account of the named person is debited for the reason stated therein
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QUESTION: 13

Example of an assets is
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QUESTION: 14

Which of the following is not an assets
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QUESTION: 15

Which of the following is a liability
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QUESTION: 16

Which of the following statement is correct
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QUESTION: 17

Source of documents are
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QUESTION: 18

The final balance of purchase book is debited to :
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QUESTION: 19

The periodic total of purchases return journal is posted to :
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QUESTION: 20

Which voucher is prepared for the payment of salary, purchase of goods, payment made to any creditor etc.
Solution:

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