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Test: Subsidiary Books - 1 - Commerce MCQ


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30 Questions MCQ Test Accountancy Class 11 - Test: Subsidiary Books - 1

Test: Subsidiary Books - 1 for Commerce 2024 is part of Accountancy Class 11 preparation. The Test: Subsidiary Books - 1 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Subsidiary Books - 1 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Subsidiary Books - 1 below.
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Test: Subsidiary Books - 1 - Question 1

Credit purchase of goods worth Rs 10000 was recorded as credit sale to Mr. X , the mistake was discovered after 2 months. Rectifying entry is to be made in ?

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

The rectifying entry will be made in Journal proper to rectify the error of posting in wrong account.

Test: Subsidiary Books - 1 - Question 2

A___________ is sent to a customer when he returns goods :

Detailed Solution for Test: Subsidiary Books - 1 - Question 2

A document sent to customer when he returns the goods is called Credit note. A credit note or credit memo is a commercial document issued by a seller to a buyer.

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Test: Subsidiary Books - 1 - Question 3

The Balance of Sales day book is Rs. 25,000. Rs. 5,000 were recovered from debtors. Then balance of Day Book will be transferred by which amount ?

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


To determine the balance transferred from the Sales day book, we need to consider the following information:
1. The initial balance of the Sales day book is Rs. 25,000.
2. Rs. 5,000 were recovered from debtors.
To find the balance transferred, we can use the following formula:
Balance Transferred = Initial Balance + Recovered Amount
Now let's calculate the balance transferred:
Balance Transferred = Rs. 25,000 + Rs. 5,000 = Rs. 30,000
Therefore, the correct answer is Rs. 30,000.

Test: Subsidiary Books - 1 - Question 4

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

Detailed Solution for Test: Subsidiary Books - 1 - Question 4

To record the sale of goods on credit basis to A Brothers for Rs. 1,000, the appropriate book to use is the Sales Book. Here is a detailed explanation of why the Sales Book is the correct choice:
1. Cash Book:
- The Cash Book is used to record cash transactions, such as payments and receipts of cash.
- Since the goods were sold on a credit basis, meaning no cash was involved in the transaction, the Cash Book is not applicable in this case.
2. Journal Proper (General Journal):
- The Journal Proper is used to record non-regular or miscellaneous transactions that do not have specific books for recording.
- Since the sale of goods to A Brothers is a regular transaction and can be recorded in a specific book, the Journal Proper is not the appropriate choice.
3. Sales Book:
- The Sales Book is used to record credit sales of goods or services.
- Since the goods were sold on a credit basis to A Brothers, the Sales Book is the most suitable option for recording this transaction.
- The Sales Book allows us to record the details of the sale, such as the date, name of the customer, invoice number, description of goods sold, and the amount of the sale.
4. Bills Receivable Book:
- The Bills Receivable Book is used to record bills or promissory notes received from customers as a form of payment.
- Since the goods were sold on a credit basis and no bills or promissory notes were involved in the transaction, the Bills Receivable Book is not applicable in this case.
Therefore, the correct answer is option c. Sales Book for recording the sale of goods on credit basis to A Brothers for Rs. 1,000.
Test: Subsidiary Books - 1 - Question 5

Which of the following are subsidiary books: 

Detailed Solution for Test: Subsidiary Books - 1 - Question 5

Subsidiary Books are those books of original entry in which transactions of similar nature are recorded at one place and in chronological order. In a big concern, recording of all transactions in one Journal and posting them into various ledger accounts will be very difficult and involve a lot of clerical work.

Test: Subsidiary Books - 1 - Question 6

An allowance of Rs 50 was offered for an early payment of cash of Rs 1,050. It will be recorded in ____________.

Detailed Solution for Test: Subsidiary Books - 1 - Question 6

The shop owner gives discount due early payment and it is a cash transaction so it is recorded in cash book.

Test: Subsidiary Books - 1 - Question 7

 The source document or voucher used for recording entries in sales Book is : 

Detailed Solution for Test: Subsidiary Books - 1 - Question 7

Sales Book records only credit sale of goods to the customers. When goods are sold, invoices are sent out to them and that only becomes the source document or voucher for recording transaction in sale book.

Test: Subsidiary Books - 1 - Question 8

 The total of the Purchase Day Book is posted periodically to the : 

Detailed Solution for Test: Subsidiary Books - 1 - Question 8

The total of the Purchase Day Book is posted periodically to the Debit of purchases A/c.
Here is a detailed explanation:
Purchase Day Book:
- The Purchase Day Book is a subsidiary book used to record all credit purchases made by a business.
- It contains a chronological record of all purchases made on credit, including details such as the date of purchase, the supplier's name, the invoice number, and the amount.
Posting to Debit of Purchases A/c:
- The total of the Purchase Day Book is periodically posted to the Debit side of the Purchases Account in the General Ledger.
- The Purchases Account is a nominal account used to record the total value of purchases made by the business during a specific period.
- It is a temporary account that is closed at the end of the accounting period.
Reason for Posting:
- The total of the Purchase Day Book is posted to the Debit side of the Purchases Account to reflect the increase in purchases made by the business.
- This posting helps in maintaining accurate records of the business's purchases and provides valuable information for financial analysis and decision-making.
Other Options:
- Credit of purchase A/c: This is incorrect as purchases are recorded on the Debit side of the account.
- Cash Book: The Cash Book is used to record cash transactions, not credit purchases.
- None of these: This is incorrect as the total of the Purchase Day Book is indeed posted to the Debit of purchases A/c.
Therefore, the correct answer is A: Debit of purchases A/c.
Test: Subsidiary Books - 1 - Question 9

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

Detailed Solution for Test: Subsidiary Books - 1 - Question 9

To provide for the unpaid salary of Rs. 340 in the accounts, the appropriate book to record this transaction would be the Journal Proper (General Journal). Here's why:
1. Journal Proper (General Journal):
- The Journal Proper is used to record transactions that do not fit into any other specialized book.
- It is suitable for recording adjustments, corrections, and unusual or non-routine transactions.
- Unpaid salary is a transaction that requires a journal entry to account for the expense and the liability.
- The Journal Proper allows for a detailed description of the transaction and provides a record of all adjustments made.
2. Other options:
- Bills Receivable Book: This book is used to record bills of exchange received from debtors. Unpaid salary does not involve bills of exchange, so this option is not appropriate.
- Purchases Book: This book is used to record purchases of goods for resale. Unpaid salary does not involve purchases of goods, so this option is not appropriate.
- Purchases Return: This book is used to record returns of goods purchased. Unpaid salary does not involve returns of goods, so this option is not appropriate.
Therefore, the correct answer is C: Journal Proper (General Journal) to provide for the unpaid salary of Rs. 340 in the accounts.
Test: Subsidiary Books - 1 - Question 10

Total of Sales Book will be posted :

Detailed Solution for Test: Subsidiary Books - 1 - Question 10

Sales book is a subsidiary book that records all the credit sales of the goods. It is totalled normally on a monthly basis and the total will be posted to the credit side of  the Sales A/c. The total of the Sales book is not entered but posted to the Sales A/c because it is transferred from the sales book.

Test: Subsidiary Books - 1 - Question 11

Goods Outward Journal is meant for recording all returns of goods

Detailed Solution for Test: Subsidiary Books - 1 - Question 11

A purchase returns journal (also known as returns outwards journal/purchase debits daybook) is a prime entry book or a daybook which is used to record purchase returns. In other words, it is the journal which is used to record the goods which are returned to the suppliers.

Test: Subsidiary Books - 1 - Question 12

Goods sold for cash Rs. 10,000 plus 10% sales tax. Sales A/c will be credited by: 

Detailed Solution for Test: Subsidiary Books - 1 - Question 12

To determine the amount to be credited to the Sales Account, we need to calculate the sales tax first.
Given:
Goods sold for cash = Rs. 10,000
Sales tax rate = 10%
Step 1: Calculate the sales tax amount
Sales tax amount = (10% of Rs. 10,000)
Sales tax amount = (10/100) * 10,000
Sales tax amount = Rs. 1,000
Step 2: Calculate the total amount including sales tax
Total amount = Goods sold for cash + Sales tax amount
Total amount = Rs. 10,000 + Rs. 1,000
Total amount = Rs. 11,000
Therefore, the Sales Account will be credited by Rs. 11,000.
Answer: b. Rs. 11,000

Test: Subsidiary Books - 1 - Question 13

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 - 1 - Question 13

To record the dishonored bills receivable, the entry should be made in the Journal Proper (General journal) book. Here is the detailed solution:
1. Open the Journal Proper (General journal) book.
2. Date the entry with the date on which the dishonored bills receivable occurred.
3. Debit the Debtor's Account by Rs. 1,100, representing the amount of the claim.
4. Credit the Bills Receivable Account by Rs. 1,000, representing the amount of the dishonored bills receivable.
5. Credit the Discount Allowed Account by Rs. 100, representing the discount given to the debtor for settling the claim.
6. Provide a detailed narration explaining the transaction, such as "Dishonored bills receivable received from debtor in full settlement for a claim of Rs. 1,100".
7. Calculate and record the new balances in the respective accounts.
8. Complete the closing entries for the Journal Proper (General journal) book at the end of the accounting period.
By recording the dishonored bills receivable in the Journal Proper (General journal), it allows for accurate tracking and reporting of the transaction. This ensures that the financial records are updated and reflect the true state of the company's accounts.
Test: Subsidiary Books - 1 - Question 14

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

Detailed Solution for Test: Subsidiary Books - 1 - Question 14

Purchase Day book (Purchase Register)is the book of original entry in which all the transactions relating to only credit purchase are recorded. Cash purchases do not find place in purchase day book as they are recorded in Cash book.The every month total of purchase is to be posted on the debit side of the purchase account.

Test: Subsidiary Books - 1 - Question 15

In Purchases Book the record is in respect of

Detailed Solution for Test: Subsidiary Books - 1 - Question 15

Purchase book records credit purchases of goods only. Whenever, goods are purchased, purchase account is debited. In all cases of purchases, goods come into business, so purchases account has to be debited. Monthly total of purchases book is posted to the debit of purchases account in the ledger.

Test: Subsidiary Books - 1 - Question 16

Credit purchase of stationery worth Rs.5,000 by a stationery dealer will be recorded in ___________.

Detailed Solution for Test: Subsidiary Books - 1 - Question 16

Purchase book is an accounting ledger in which all credit purchase of trading goods are recorded. Two most important requirement for recording entry in purchase book are:
1. Purchase must be on credit
2. Purchase must be of trading goods.
Therefore, in the given question credit purchase of stationery will be recorded in purchase book. as the purchaser deals in stationery.

Test: Subsidiary Books - 1 - Question 17

Purchase of furniture on credit should be recorded in _______

Detailed Solution for Test: Subsidiary Books - 1 - Question 17

Purchase of furniture is not for the trading purposes hence furniture cannot be included as goods and recorded in purchase book. Since the purchases are made on credit hence they cannot be entered in the cash book. Therefore, purchase of furniture will be recorded in journal.

Test: Subsidiary Books - 1 - Question 18

Total of the Purchase Return Book is posted to the ______ side of Purchase Return Account in the ledger:

Detailed Solution for Test: Subsidiary Books - 1 - Question 18

Purchase return day book is also called as Purchase return book or Purchase return journal or Purchase return register. All purchase return vouchers are recorded in purchase return day book. The totals of purchase returns book is posted to the ledger on credit side of the Purchases return A/c.

Test: Subsidiary Books - 1 - Question 19

A second hand motor car was purchased on credit from B Brothers for Rs. 10,000. It will be recorded in

Detailed Solution for Test: Subsidiary Books - 1 - Question 19

A journal proper is the book of original entry in which only those entries are recorded that cannot be recorded in the special journal. It is also termed as a General Journal. When the journal is divided into various subsidiary books, it remains only a residuary book in which only those transactions are recorded that cannot be recorded in any other subsidiary book. In such a case, the journal is called as Journal proper. Purchase of asset on credit can neither be recorded in the cash book or the purchase book because cash book only records cash transactions and purchase book only records the credit purchase of goods. Thus purchase and sale or return of purchased or sale asset on credit is recorded in journal proper. In our question a second hand motor car is purchased on credit which is fixed asset hence, it will be recorded in Journal proper.

Test: Subsidiary Books - 1 - Question 20

 The debit note issued are used to prepare

Detailed Solution for Test: Subsidiary Books - 1 - Question 20

Purchase returns book is maintained to record the transactions of goods returned to the supplier which were purchased on credit.
Whenever, such purchases are to be returned a debit note is issued by a seller as an advise of the amount of returns by the buyer with the complete details of the purchases to be returned.

Test: Subsidiary Books - 1 - Question 21

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 - 1 - Question 21
Accounting for Partial Recovery from Mr. C:
To account for the partial recovery of Rs. 2,000 from Mr. C, the following journal entries need to be recorded:
1. Journal Proper (General Journal):
- Date: [Date of Recovery]
- Account Debited: Bad Debts Recovery
- Account Credited: Mr. C's Account
- Amount: Rs. 2,000
2. Cash Book:
- Date: [Date of Recovery]
- Particulars: Mr. C's Account
- L.F. (Ledger Folio): [Reference to Mr. C's Account in the Ledger]
- Cash: Rs. 2,000
- Date: [Date of Recovery]
- Particulars: Bank Account
- L.F. (Ledger Folio): [Reference to Bank Account in the Ledger]
- Cash: Rs. 2,000
3. Mr. C's Account:
- Date: [Date of Recovery]
- Particulars: Bad Debts Recovery
- L.F. (Ledger Folio): [Reference to Bad Debts Recovery in the Ledger]
- Amount: Rs. 2,000
4. Bad Debts Recovery Account:
- Date: [Date of Recovery]
- Particulars: Mr. C's Account
- L.F. (Ledger Folio): [Reference to Mr. C's Account in the Ledger]
- Amount: Rs. 2,000
This journal entry records the recovery of the amount previously written off as a bad debt. The amount is credited to Mr. C's account and debited to the Bad Debts Recovery account. In the Cash Book, the cash received from Mr. C is recorded. The amount is also credited to the Bank Account if the payment is received through a bank transaction. Finally, the ledger accounts of Mr. C and Bad Debts Recovery are updated with the recovery amount.
Test: Subsidiary Books - 1 - Question 22

The total of the Sales Book is posted to

Detailed Solution for Test: Subsidiary Books - 1 - Question 22

Sales book is a subsidiary book that records all the credit sales of the goods. It is totalled normally on a monthly basis and the total will be posted to the credit side of  the Sales A/c. The total of the Sales book is not entered but posted to the Sales A/c because it is transferred from the sales book.

Test: Subsidiary Books - 1 - Question 23

Purchases of Fixed assets on credit basis is recorded in : 

Detailed Solution for Test: Subsidiary Books - 1 - Question 23

Purchase of fixed assets on credit is originally recorded in Journal Proper. On the assumption that the asset was purchased on credit, the initial entry is a credit to accounts payable and a debit to the applicable fixed asset account for the cost of the asset.

Test: Subsidiary Books - 1 - Question 24

 A note sent by buyer on return of goods is : 

Detailed Solution for Test: Subsidiary Books - 1 - Question 24

Buyer of goods is customer from the point of view of business. In his books our account balance would show a credit balance. When he returns the goods to us, he debits our account and to show this fact he sends a debit note to us indicating the above fact.

Test: Subsidiary Books - 1 - Question 25

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

Detailed Solution for Test: Subsidiary Books - 1 - Question 25

Purchase book also known as purchase journal is an accounting ledger in which all credit purchases of trading goods are recorded.

Test: Subsidiary Books - 1 - Question 26

Total of the sales book for March indicates:

Detailed Solution for Test: Subsidiary Books - 1 - Question 26

A Sales book is a record of all credit sales made by a business. 
It is one of the secondary book of accounts, and unlike cash sales, which are recorded in cash book, sales book is only prepared to record credit sales. 
The amount entered in the sales book is on behalf of invoices supplied to purchasers. 
A Sales book is also called Sales Journal or Sales Day Book.

Test: Subsidiary Books - 1 - Question 27

Trade discounts are: 

Detailed Solution for Test: Subsidiary Books - 1 - Question 27

Trade discount is not recorded in books because trade discount is given only to traders. And this happens between the wholesalers and retails.
whereas cash discount is recorded in books because it is given on the products which is given by the retailers to the consumers.
for eg- if a retailer buys goods from wholesalers then,if,the wholesaler provide/give any discount on the products which the retailer bought. then this kind of discount is called trade discount.

Test: Subsidiary Books - 1 - Question 28

PURCHASE Book is used to record

Detailed Solution for Test: Subsidiary Books - 1 - Question 28

A purchase book records only all credit purchases of goods and trade. Cash purchases are recorded via the cash book while the credit purchase of an asset is recorded via a journal entry.

Test: Subsidiary Books - 1 - Question 29

 The Sales Book 

Detailed Solution for Test: Subsidiary Books - 1 - Question 29

A Sales book is a record of all credit sales made by a business. It is one of the secondary book of accounts and unlike cash sales which are recorded in cash book, sales book is only to record credit sales. The amount entered in the sales book is on behalf of invoices supplied to purchasers. A Sales book is also called Sales Journal or Sales Day Book.

Test: Subsidiary Books - 1 - Question 30

 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 - 1 - Question 30

When goods are returned, a debit note is prepared and is sent to the supplier with the returned goods. An original copy is sent to the supplier, informing him of the amount for which his account has been debited on account of the returned goods. A duplicate copy of the debit note becomes the source document, on the source document, on the basis of which entries are recorded in the Purchases Returned Book. Thus, a debit note is required for recording the transactions in the Purchases Return Book.

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