Commerce Exam  >  Commerce Tests  >  Accountancy Class 11  >  Test: Subsidiary Books - 3 - Commerce MCQ

Test: Subsidiary Books - 3 - Commerce MCQ


Test Description

20 Questions MCQ Test Accountancy Class 11 - Test: Subsidiary Books - 3

Test: Subsidiary Books - 3 for Commerce 2024 is part of Accountancy Class 11 preparation. The Test: Subsidiary Books - 3 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Subsidiary Books - 3 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Subsidiary Books - 3 below.
Solutions of Test: Subsidiary Books - 3 questions in English are available as part of our Accountancy Class 11 for Commerce & Test: Subsidiary Books - 3 solutions in Hindi for Accountancy Class 11 course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Subsidiary Books - 3 | 20 questions in 20 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Accountancy Class 11 for Commerce Exam | Download free PDF with solutions
Test: Subsidiary Books - 3 - Question 1

In which book of original entry, will you record the following transactions?

Q.The debit note issued are used to prepare 

Detailed Solution for Test: Subsidiary Books - 3 - Question 1
Answer:

Q: In which book of original entry, will you record the following transactions?


Q: The debit notes issued are used to prepare


The correct book of original entry to record the following transactions is the Purchase Return Book.


Reasoning:


Debit notes are issued when a buyer returns goods to the seller or when there is an overcharge or error in the invoice. They are used to reduce the amount payable by the buyer to the seller. Therefore, the purchase return book is the appropriate book of original entry to record these transactions.


Explanation:


The purchase return book is a subsidiary book which is used to record all transactions related to the return of goods to the suppliers. It is maintained to keep a record of goods returned by the buyer to the seller, along with the reasons for return.


Key Points:



  • Debit notes are issued when there is a return of goods, overcharge, or error in the invoice.

  • The purchase return book is used to record transactions related to the return of goods to the suppliers.

  • The purchase return book helps in keeping track of goods returned and the reasons for return.

  • By recording these transactions in the purchase return book, the accounts payable balance is reduced.


Therefore, the correct answer is B: Purchase return book.

Test: Subsidiary Books - 3 - Question 2

In which book of original entry, will you record the following transactions?

Q.An allowance of Rs. 50 was offered for an early payment of cash of Rs. 1,050.

Detailed Solution for Test: Subsidiary Books - 3 - Question 2

Answer: B. Cash Book


Explanation:


The given transaction involves an allowance for early payment of cash. This transaction should be recorded in the Cash Book, which is a book of original entry used to record all cash transactions.


Reasons for recording the transaction in the Cash Book:



  • The transaction involves a cash payment, which is directly related to the cash inflow and outflow of the business.

  • Allowance for early payment is a financial incentive provided to encourage customers to make prompt payments.

  • The Cash Book is specifically designed to record cash receipts and payments, making it the appropriate book of original entry for this transaction.


Advantages of recording the transaction in the Cash Book:



  • Provides a clear and systematic record of all cash transactions, including allowances and discounts.

  • Facilitates easy tracking and reconciliation of cash inflows and outflows.

  • Helps in maintaining an accurate account balance and monitoring the cash position of the business.

  • Serves as a reliable source of information for financial reporting and analysis.


Therefore, the transaction of offering an allowance for early payment of cash should be recorded in the Cash Book, making option B the correct answer.

1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Subsidiary Books - 3 - Question 3

In which book of original entry, will you record the following transactions?

Q.A second hand motor car was purchased on credit from B Brothers for Rs. 10,000.

Detailed Solution for Test: Subsidiary Books - 3 - Question 3

Answer: A. Journal Proper (General Journal)


Explanation:


When a second-hand motor car is purchased on credit, the transaction should be recorded in the Journal Proper (General Journal) as it is a non-cash transaction and does not involve the use of cash or bank accounts. Here's a detailed explanation:


Journal Proper (General Journal):



  • The Journal Proper is used to record all non-cash transactions and transactions that do not fit into any other specialized books of original entry.

  • It is a general-purpose book where all types of transactions, including credit purchases, credit sales, expenses, and incomes, are recorded.

  • The purpose of the Journal Proper is to have a chronological record of all transactions in one place for easy reference.

  • The entry for the purchase of the second-hand motor car on credit from B Brothers for Rs. 10,000 would be recorded as follows:


Journal Proper Entry:



  • Date: [Date of the transaction]

  • Account Debited: [Motor Car Account]

  • Account Credited: [B Brothers Account]

  • Amount: Rs. 10,000

  • Narration: Purchased a second-hand motor car on credit from B Brothers for Rs. 10,000


By recording this transaction in the Journal Proper, it becomes a part of the complete and systematic record-keeping process of the business. The Journal Proper provides a clear audit trail and helps in the preparation of financial statements and analysis of the business's financial position.

Test: Subsidiary Books - 3 - Question 4

In which book of original entry, will you record the following transactions?

Q.Goods were sold on credit basis to A Brothers for Rs. 1,000.

Detailed Solution for Test: Subsidiary Books - 3 - Question 4
Answer:
The transaction of selling goods on a credit basis to A Brothers for Rs. 1,000 should be recorded in the Sales Book.
The Sales Book is a book of original entry used to record all credit sales made by a business. It is a chronological record of sales transactions and contains detailed information such as the date of sale, name of the customer, description of goods sold, quantity, rate, and total amount.
By recording this transaction in the Sales Book, we ensure that all credit sales are properly recorded and can be easily referred to when needed. This helps in maintaining accurate records, tracking customer balances, and calculating sales figures.
Other options such as the Cash Book, Journal Proper (General Journal), and Bills Receivable Book are not suitable for recording this transaction because:
- The Cash Book is used to record cash transactions, not credit sales.
- The Journal Proper (General Journal) is used for recording non-routine and adjusting entries, not regular sales transactions.
- The Bills Receivable Book is used to record bills received from customers, not credit sales.
Therefore, the appropriate book of original entry to record the transaction of selling goods on a credit basis to A Brothers for Rs. 1,000 is the Sales Book.
Test: Subsidiary Books - 3 - Question 5

In which book of original entry, will you record the following transactions?

Q.Accounting for partial recovery from Mr. C of an amount of Rs. 2,000 earlier written off as bad debt.

Detailed Solution for Test: Subsidiary Books - 3 - Question 5
Answer:

Accounting for partial recovery from Mr. C of an amount of Rs. 2,000 earlier written off as bad debt:


The transaction of partial recovery from Mr. C is recorded in the Cash Book, which is the book of original entry used to record all cash transactions.
Reasons why it is recorded in the Cash Book:

  • It involves the receipt of cash from Mr. C.

  • The amount was previously written off as a bad debt, and the recovery of a portion of it is considered a cash inflow.


Other books of original entry are not appropriate for recording this transaction:

  • Journal Proper (General Journal): The Journal Proper is used for recording non-routine transactions, adjusting entries, and correcting entries. The partial recovery from Mr. C does not fall under these categories.

  • Sales Book: The Sales Book is used for recording credit sales made to customers. The partial recovery from Mr. C is not a credit sale.

  • Purchase Book: The Purchase Book is used for recording purchases made by the business. The partial recovery from Mr. C is not a purchase transaction.


Therefore, the correct answer is D: Cash Book.
Test: Subsidiary Books - 3 - Question 6

In which book of original entry, will you record the following transactions?

Q.Rectifying the error of a credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D, discovered two months later.

Detailed Solution for Test: Subsidiary Books - 3 - Question 6
Answer:
To rectify the error of a credit purchase of goods worth Rs. 10,000 recorded as a credit sale to Mr. D, discovered two months later, the transaction would be recorded in the Journal Proper (General Journal). Here is a detailed explanation:

  • Journal Proper (General Journal): The Journal Proper is used to record transactions that do not fit into any specific books of original entry. It is used for miscellaneous transactions, including rectifying errors, adjusting entries, and other non-routine transactions.

  • Rectifying the error: The transaction in question involves rectifying an error made in recording a credit purchase as a credit sale. This error needs to be corrected, and the appropriate entry needs to be made in the accounts.

  • Credit purchase of goods: The original transaction involved a credit purchase of goods worth Rs. 10,000. This means that the company acquired goods on credit from a supplier.

  • Recorded as credit sale to Mr. D: However, the transaction was mistakenly recorded as a credit sale to Mr. D, who is not the actual customer in this case.

  • Discovered two months later: The error was discovered two months later, indicating that the mistake was not immediately identified.

  • Journal entry in Journal Proper: To rectify this error, a journal entry needs to be made in the Journal Proper. The entry would involve debiting the Sales account and crediting the Accounts Payable or Creditors account to reverse the incorrect credit sale entry. Simultaneously, the correct entry should be made in the Purchases account to record the credit purchase of goods.


Therefore, the correct book of original entry to record this transaction would be the Journal Proper (General Journal).
Test: Subsidiary Books - 3 - Question 7

In which book of original entry, will you record the following transactions?

Q.Credit purchase of stationery worth Rs. 5,000 by a stationery dealer.

Detailed Solution for Test: Subsidiary Books - 3 - Question 7

Answer:


Book of Original Entry: Purchase Book


Reasoning:



  • The credit purchase of stationery worth Rs. 5,000 by a stationery dealer is a transaction involving the purchase of goods.

  • The Purchase Book is used to record all credit purchases of goods for resale or for use in the business.

  • It is a subsidiary book where all credit purchases are recorded in chronological order.

  • The details recorded in the Purchase Book include the date of purchase, name of the supplier, description of the goods, quantity, rate, and amount.

  • Since the transaction involves a credit purchase of stationery, it should be recorded in the Purchase Book.


Therefore, the correct answer is A: Purchase Book.

Test: Subsidiary Books - 3 - Question 8

In which book of original entry, will you record the following transactions?

Q.A bills receivable of Rs. 1,000, which was received from a debtor in full settlement for a claim of Rs. 1,100, is dishonoured.

Detailed Solution for Test: Subsidiary Books - 3 - Question 8
Answer:

Book of original entry: Journal Proper (General Journal)


Reason:


When a bill receivable is dishonored, it needs to be recorded in the appropriate book of original entry. In this case, the dishonored bill receivable is a special transaction that does not fit into any specific book of original entry such as Purchases Return Book, Bills Receivable Book, or Purchases Book. Hence, it should be recorded in the Journal Proper (General Journal) which is used for recording all other miscellaneous transactions that cannot be recorded in any other specialized books.

Test: Subsidiary Books - 3 - Question 9

In which book of original entry, will you record the following transactions?

Q.Purchased goods from E worth Rs. 5,000 on credit basis.

Detailed Solution for Test: Subsidiary Books - 3 - Question 9
Explanation:
The correct answer is B: Purchases Book.
Here is a detailed explanation of why the transaction should be recorded in the Purchases Book:
1. Purchases Book: This book is used to record all credit purchases of goods. It is a book of original entry where all purchases of goods on credit are recorded.
2. Transaction: The transaction mentioned states that goods were purchased from E worth Rs. 5,000 on a credit basis. This means that the payment for the goods will be made at a later date.
3. Credit Purchase: Since the transaction involves a credit purchase, it should be recorded in the Purchases Book.
4. Recording: In the Purchases Book, the details of the transaction will be recorded, including the name of the supplier (E), the amount of the purchase (Rs. 5,000), and any other relevant details.
5. Other Books of Original Entry: The other options listed are not appropriate for this transaction.
- Bills Receivable Book: This book is used to record bills receivable, which are promissory notes received from debtors. It is not relevant to record a credit purchase in this book.
- Journal Proper (General Journal): The general journal is used to record transactions that do not fit into any other specific book. However, since this transaction is a credit purchase of goods, it should be recorded in the Purchases Book instead.
- Purchases Return: This book is used to record goods that are returned to the supplier. It is not relevant to record the initial purchase in this book.
Therefore, the correct book of original entry to record the given transaction is the Purchases Book.
Test: Subsidiary Books - 3 - Question 10

In which book of original entry, will you record the following transactions?

Q.Unpaid salary for Rs. 340 is to be provided for in the accounts.

Detailed Solution for Test: Subsidiary Books - 3 - Question 10
Answer:

Q. Unpaid salary for Rs. 340 is to be provided for in the accounts.


The transaction mentioned above involves recording an unpaid salary in the accounts. To record this transaction, we need to determine the appropriate book of original entry. The correct book of original entry for this transaction is the Journal Proper (General Journal). Here is why:



  • The Journal Proper (General Journal) is used to record non-routine and miscellaneous transactions that do not fit into any specific books of original entry.

  • Unpaid salary is not a regular expense or purchase, therefore it does not belong in the Purchases Book or Purchases Return.

  • Unpaid salary is not a form of receivable, so it does not belong in the Bills Receivable Book.


Therefore, the correct book of original entry to record the unpaid salary of Rs. 340 is the Journal Proper (General Journal).

Test: Subsidiary Books - 3 - Question 11

In which book of original entry, will you record the following transactions?

Q.A debit note for Rs. 2,000 issued to Mr. F for goods returned by us is to be accounted for.

Detailed Solution for Test: Subsidiary Books - 3 - Question 11
Answer: D. Purchases Return
Explanation:
The transaction mentioned in the question involves the return of goods by the company to Mr. F, resulting in a debit note for Rs. 2,000. This transaction should be recorded in the Purchases Return book, which is a book of original entry used to record the return of goods purchased from suppliers.
Here is a detailed explanation:
- Purchases Return book:
- The Purchases Return book is a book of original entry used to record the return of goods purchased from suppliers.
- It is used to record transactions where the company returns goods to the supplier due to various reasons such as damaged goods, incorrect goods delivered, or goods not meeting the company's requirements.
- The book typically contains columns to record the date of the return, the name of the supplier, the description of the goods returned, the quantity, the unit price, and the total amount.
- Debit note:
- A debit note is a document issued by a buyer to inform the seller about the return of goods or an adjustment in the invoiced amount.
- It serves as a formal request for the seller to issue a credit note for the returned goods or adjust the invoice amount accordingly.
- In this case, the debit note for Rs. 2,000 is issued to Mr. F to inform him about the goods returned by the company.
- Recording the transaction:
- The transaction of returning goods and issuing a debit note should be recorded in the Purchases Return book to maintain an accurate record of such transactions.
- The entry in the Purchases Return book will include the date of the return, the name of Mr. F as the supplier, the description of the goods returned, the quantity, the unit price, and the total amount of Rs. 2,000.
Therefore, the correct book of original entry to record this transaction is the Purchases Return book.
Test: Subsidiary Books - 3 - Question 12

In which book of original entry, will you record the following transactions?

Q.Goods Outward Journal is meant for recording all returns of goods

Detailed Solution for Test: Subsidiary Books - 3 - Question 12
Book of Original Entry for Recording Transactions

Goods Outward Journal is meant for recording all returns of goods


A: Sold on credit



  • Book of Original Entry: Sales Journal

  • Explanation: Sales made on credit are recorded in the Sales Journal. This journal is used to record all credit sales transactions.


B: Purchased on credit



  • Book of Original Entry: Purchase Journal

  • Explanation: Purchases made on credit are recorded in the Purchase Journal. This journal is used to record all credit purchases transactions.


C: Purchased on cash



  • Book of Original Entry: Cash Book

  • Explanation: Purchases made with cash are recorded in the Cash Book. This book is used to record all cash transactions, including cash purchases.


D: None of the above



  • Explanation: None of the options provided is applicable. The correct option for recording returns of goods is the Goods Outward Journal.


Therefore, the correct answer is b. Purchased on credit, which is recorded in the Purchase Journal.
Test: Subsidiary Books - 3 - Question 13

In which book of original entry, will you record the following transactions?

Q.Which of the following types of information are found in subsidiary ledgers, but not in the general ledger?

Detailed Solution for Test: Subsidiary Books - 3 - Question 13
Book of Original Entry:
The transactions mentioned in the question will be recorded in the Sales Journal, which is a book of original entry specifically used for recording sales transactions.
Subsidiary Ledgers vs General Ledger:
Subsidiary ledgers contain detailed information about specific accounts, while the general ledger provides summarized information. In this case, the following types of information are found in subsidiary ledgers but not in the general ledger:

  • Total cost of goods sold for the period. This information is recorded in the subsidiary ledger for the inventory account, which tracks the cost of goods sold and inventory balances.

  • The quantity of a particular product sold during the period. The subsidiary ledger for the inventory account also tracks the quantity of products sold.

  • The amount owed to a particular creditor. This information is recorded in the subsidiary ledger for accounts payable, which tracks the amounts owed to individual creditors.


The portion of total current assets that consist of cash. This information is not typically found in subsidiary ledgers as it is a summarized figure that can be obtained from the general ledger. The general ledger will have a separate account for cash, which will show the total amount of cash in the current assets section.
Therefore, the correct answer is Option B: The quantity of a particular product sold during the period.
Test: Subsidiary Books - 3 - Question 14

In which book of original entry, will you record the following transactions?

Q.The total of the purchases day book is posted periodically to the debit of:

Detailed Solution for Test: Subsidiary Books - 3 - Question 14

Book of Original Entry:


Purchases Day Book:


Purchases day book is a book of original entry where all credit purchases of goods and services are recorded in chronological order. It is a subsidiary book used to record purchases made on credit by a business. Each entry in the purchases day book includes the details of the supplier, date of purchase, invoice number, description of the goods or services, and the amount of the purchase.


Transaction:


The total of the purchases day book is posted periodically to the debit of:


Answer: A. Purchases account.


Explanation:


When the total of the purchases day book is posted periodically, it is recorded in the general ledger under the Purchases account. The Purchases account is a nominal account and is debited with the total amount of credit purchases made during a specific period. This allows the business to keep track of its total purchases and ultimately calculate the cost of goods sold.


Summary:


The total of the purchases day book is recorded in the Purchases account in the general ledger. This helps the business track its credit purchases and calculate the cost of goods sold.

Test: Subsidiary Books - 3 - Question 15

In which book of original entry, will you record the following transactions?

Q.Purchases day book records:

Detailed Solution for Test: Subsidiary Books - 3 - Question 15

Explanation:


Purchases day book is a book of original entry used to record all purchases made by a business. It is also known as a purchase journal or purchase book. The book is used to keep a record of all purchases in chronological order, whether they are made in cash or on credit.


Answer:


The following transactions will be recorded in the purchases day book:



  • All cash purchases: This includes any purchases made by the business using cash. These transactions will be recorded in the purchases day book.

  • All credit purchases: This includes any purchases made by the business on credit. These transactions will be recorded in the purchases day book.

  • Credit purchases of goods in trade: This refers to purchases of goods that are intended to be resold by the business. These transactions will also be recorded in the purchases day book.

  • None of the above: If the transaction does not fall into any of the above categories, it will not be recorded in the purchases day book.


Therefore, the correct answer is C: Credit purchases of goods in trade.

Test: Subsidiary Books - 3 - Question 16

Choose the most appropriate answer from the given options :

Q.In Purchases Book the record is in respect of

Detailed Solution for Test: Subsidiary Books - 3 - Question 16
Explanation:

The Purchases Book is a subsidiary book used in accounting to record all the credit purchases of goods dealt in by a business. It is a book of original entry where all the details of credit purchases are recorded before they are posted to the general ledger.


Options:

  • A: Cash purchase of goods: This option is incorrect because the Purchases Book specifically records credit purchases and not cash purchases.

  • B: Credit purchase of goods dealt in: This option is correct. The Purchases Book records all the credit purchases of goods dealt in by a business.

  • C: All purchases of goods: This option is not entirely accurate. The Purchases Book only records credit purchases, not cash purchases.


Therefore, the most appropriate answer is option B: Credit purchase of goods dealt in.

Test: Subsidiary Books - 3 - Question 17

The Sales Returns Book records

Detailed Solution for Test: Subsidiary Books - 3 - Question 17
Sales Returns Book records:
- The return of goods purchased.
- The return of goods sold.
Explanation:
- The Sales Returns Book is a record-keeping document used to track and document the return of goods in a business.
- It specifically records the returns of goods that were originally purchased or sold by the company.
- Goods can be returned for various reasons, such as defects, damages, or customer dissatisfaction.
- The Sales Returns Book helps businesses keep track of these returns for accounting and inventory purposes.
- The book typically includes information such as the date of return, the name of the customer, the description of the goods, the reason for return, and any associated financial transactions.
- By recording these returns, businesses can analyze trends and patterns in returns, identify any recurring issues with products, and adjust their operations accordingly.
- It is important for businesses to maintain an accurate and up-to-date Sales Returns Book to ensure proper accounting and inventory management.
- Overall, the Sales Returns Book plays a crucial role in tracking and documenting the return of goods in a business, whether they were originally purchased or sold.
Test: Subsidiary Books - 3 - Question 18

The Sales Book

Detailed Solution for Test: Subsidiary Books - 3 - Question 18
The Sales Book
The Sales Book is a part of the journal.

  • Journal: The journal is a book of original entry where all financial transactions of a business are recorded in chronological order. It serves as a primary record of financial transactions.

  • Sales Book: The Sales Book is a specialized journal that specifically records all sales transactions made by a business. It includes details such as the date of the sale, the name of the customer, the description of the goods or services sold, the quantity sold, and the amount received.

  • Importance: The Sales Book is important for the following reasons:


    • Organized Recordkeeping: It helps in maintaining a systematic and organized record of all sales made by the business.

    • Tracking Sales: It enables the business to track and analyze its sales performance over a specific period of time.

    • Reference: It provides a reliable source of information for future reference, such as when preparing financial statements or responding to customer inquiries.

    • Audit Trail: It helps in creating an audit trail, which is crucial for internal and external audits.



In conclusion, the Sales Book is a part of the journal and is essential for maintaining accurate and detailed records of sales transactions in a business.
Test: Subsidiary Books - 3 - Question 19

The weekly or monthly total of the purchase Book is

Detailed Solution for Test: Subsidiary Books - 3 - Question 19
Explanation:
The correct answer is A: posted to the debit of the Purchases Account. Here's why:
- The purchase book is used to record all purchases made by a business.
- The purpose of the purchase book is to keep track of all purchases and to have a record of the total amount spent on purchases over a certain period, which could be weekly or monthly.
- The total amount of purchases recorded in the purchase book needs to be posted to the appropriate account in the general ledger, which is the Purchases Account.
- The Purchases Account is a nominal account and is classified as an expense account. It is used to record the cost of goods purchased for resale or for use in the production of goods.
- Since purchases are considered an expense, the total amount of purchases recorded in the purchase book should be posted to the debit side of the Purchases Account.
- Posting the total amount of purchases to the debit side of the Purchases Account increases the balance of the account, reflecting the total amount spent on purchases during the specified period.
In conclusion, the weekly or monthly total of the purchase book is posted to the debit of the Purchases Account.
Test: Subsidiary Books - 3 - Question 20

The total of the Sales Book is posted to

Detailed Solution for Test: Subsidiary Books - 3 - Question 20

The Sales book is a subsidiary book which records only credit sales. Sales A/c is a ledger account which includes cash as well as credit sales. Thus, we need to post the total of sales book to the credit of Sales A/c.
The correct option is A.

82 videos|105 docs|42 tests
Information about Test: Subsidiary Books - 3 Page
In this test you can find the Exam questions for Test: Subsidiary Books - 3 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Subsidiary Books - 3, EduRev gives you an ample number of Online tests for practice

Top Courses for Commerce

82 videos|105 docs|42 tests
Download as PDF

Top Courses for Commerce