MCQS of Journal Chapter class 11 with answers

MCQS of Journal Chapter class 11 with answers for CBSE, ISC and State Boards

When the number of accounts to be debited or credited is nore than one, entry made for recording the transaction is called __ journal entry.

(a) Single
(b) Compound
(c) Normal
(d) Multiple

Ans – (b)

A Journal is a book of

(a) original entry
(b) secondary entry
(c) final entry
(d) Both (a) and (b)

Ans – (a)

When an entry is made in journal:

(a) Assets are listed first
(b) Accounts to be debited listed first
(c) Accounts to be credited listed first
(d) Accounts may be listed in any order

Ans – (b)

Rent paid is

(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) Both (a) and (b)

Ans – (c)

How many accounts can be effected in a transaction?

(a) Only one
(b) Only two
(c) At least two
(d) All of these

Ans – (c)

Robert’s Account is

(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) Both (b) and (c)

Ans – (a)

Double entry system means:

(a) Recording of each transaction in two set of books
(b) Entry of two aspects of every transaction
(c) Two entry in one set of books
(d) Entry in two real accounts

Ans – (b)

L.F. (i.e., Ledger Folio) Column in the Journal is filled at the time of

(a) journalising
(b) Balancing
(c) Posting
(d) Casting

Ans – (c)

Journal is a book of:

(a) Original Entry
(b) Final Entry
(c) Cash Transactions
(d) Non-Cash Transactions

Ans – (a)

Transactions are recorded

(a) in chronological order on daily basis
(b) in chronological order on weekly basis
(c) in chronological order at the end of the month
(d) in the order as the proprietor decides

Ans – (a)

Outstanding Salary A/c is:

(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) All of the above

Ans – (a)

In a compound Journal entry

(a) one or more accounts are debited and credited
(b) one account is debited and one account is credited
(c) one account is debited and credited but narration is not given
(d) one or more accounts are debited and credited but narration is not given

Ans – (a)

Prepaid Expenses A/c is:

(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) All of the above

Ans – (a)

Recording of transaction in a Journal is called

(a) Posting
(b) Journalising
(c) Transfer
(d) Ruling

Ans – (b)

Goodwill A/c is

(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of the above

Ans – (b)

Which of the following accounts will be credited on giving cash donation?

(a) Cash A/c
(b) Donation A/c
(c) Purchases A/c
(d) Discount Received A/c

Ans – (a)

Which of the following is Real A/c:

(a) Salary Account
(b) Debtor’s Account
(c) Expenses Account
(d) Stock Account

Ans – (d)

Sale of goods to Paras for cash is debited to

(a) Ram
(b) Cash A/c
(c) Sales A/c
(d) Stock A/c

Ans – (b)

Which of the following is Nominal A/c:

(a) Goodwill Account
(b) Rent Account
(c) Bank Account
(d) Creditor’s Account

Ans – (b)

Withdrawal of cash from business by the proprietor is credited to

(a) Drawings A/c
(b) Capital A/c
(c) Cash A/c
(d) Bank A/c

Ans – (c)

Drawings A/c is:

(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of the above

Ans – (a)

If goods are given as Charity, account credited is

(a) Sales A/c
(b) Sales Return A/c
(c) Purchases A/c
(d) Purchase Return A/c

Ans – (c)

Capital A/c is:

(a) Nature Personal A/c
(b) Artificial Personal A/c
(c) Representative Personal A/c
(d) All of the above

Ans – (a)

Return of goods by a customer is debited to

(a) Return Outward A/c
(b) Carriage Inwards A/c
(c) Customer’s A/c
(d) Return Inward A/c

Ans – (d)

“Debit what comes in and Credit what goes out” is the rule of:

(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) All of the above

Ans – (b)

If goods are given as Sample, account credited is

(a) Sales A/c
(b) Sales Return A/c
(c) Purchases A/c
(d) Purchase Return A/c

Ans – (c)

Rule of “Debit the Receiver and Credit the Give is” related to:

(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of the above

Ans – (a)

First Computers purchased computers from HCL Ltd. and availed both Trade Discount and Cash Discount. The transactions recorded in the books of account will be for

(a0 Net Invoice Value and Cash Discount
(b) Trade Discount, Gross Invoice Value and Cash Discount
(c) Trade Discount and Gross Invoice Value
(d) Only Invoice Value

Ans – (a)

Outstanding Expenses A/c is:

(a) Artificial Personal Account
(b) Representative Personal Account
(c) Natural Personal Account
(d) All of the above

Ans – (b)

Cash Discount allowed is recorded in the books of account as follows:

(a) Cash Discount is debited to Discount Allowed Account
(b) Cash Discount is debited to Discount Received Account
(c) Cash Discount is credited to Discount Received Account
(d) Cash Discount is reduced from the Invoice Price

Ans:- (a)

Rule of “debit the expenses losses and credit the incomes and gains’ applies to:

(a) Nominal Account
(b) Real Accounts
(c) Personal Accounts
(d) All of the above

Ans – (a)

Sameer sold goods of List Price ₹ 50,000 at 10% Trade Discount and 2% Cash Discount. Trade Discount and Cash Discount will be

(a) ₹ 5,000 and ₹ 2,000 respectively
(b) ₹ 5,000 and ₹ 1,500 respectively
(c) ₹ 5,000 and ₹ 900 respectively
(d) ₹ 900 and ₹ 5,000 respectively

Ans – (c)

Example of Personal Account is:

(a) Sales Account
(b) Goodwill Account
(c) Interest Account
(d) Accrued Interest Account

Ans – (d)

On sale of Office Furniture for ₹ 50,000 for cash, which account will be credited?

(a) Sales A/c
(b) Purchases A/c
(c) Cash A/c
(d) Furniture A/c

Ans – (d)

Example of Natural Personal Account is:

(a) Bank Account
(b) Drawings Account
(c) Outstanding Rent Account
(d) Delhi University Account

Ans – (b)

Which of the following statement is correct?

(a0 Both Trade Discount and Cash Discount are shown in the Books of Account.
(b) Trade Discount is shown separately in the Books of Account
(c) Cash Discount is shown separately in the Books of Account
(d) Neither Trade Discount nor Cash Discount are shown separately in the Books of Account.

Ans – (c)

Example of Artificial Personal Account is:

(a) Capital Account
(b) Accrued Interest Account
(c) Bank Account
(d) Prepaid Expenses Account

Ans – (c)

Ajay sold goods to Deepak of ₹ 10,000 for cash. Which of the following accounts will be debited?

(a) Deepak
(b) Purchases Account
(c) Cash Account
(d) Sales Account

Ans – (c)

Example of Representative Personal Account is:

(a) Outstanding Expenses Account
(b) Prepaid Expenses Account
(c) Accrued Commission Account
(d) All of the above

Ans – (d)

Somesh purchased goods of ₹ 15,000. Which of the following accounts will be debited?

(a) Cash Account
(b) Purchases Account
(c) Goods Account
(d) Sales Account

Ans – (b)

Purchase of goods from Raghu for cash will be credited to:

(a) Purchase Account
(b) Raghu’s Account
(c) Cash Account
(d) Goods Account

Ans – (c)

Anil purchased 1,000 Add Gel Roller Pens @ ₹ 50 each less Trade Discount of 20%. Purchases Account will be debited by

(a) ₹ 50,000
(b) ₹ 40,000
(c) ₹ 45,000
(d) ₹ 60,000

Ans – (b)

Purchase of machine for cash will be debited to:

(a) Cash Account
(b) Purchases Account
(c) Machine Account
(d) None of these

Ans – (c)

Wages paid for installation of machinery is debited to

(a) installation Charges A/c
(b) Business Expenses A/c
(c) Machinery A/c
(d) Wages A/c

Ans – (c)

Cash withdrawn by the Proprietor for personal use will be credited to:

(a) Personal Account
(b) Capital Account
(c) Drawing Account
(d) Cash Account

Ans – (d)

Anil purchased 1,000 Add Gell Roller Pens @ ₹ 50 each less 20% Trade Discount and 3% Cash Discount if payment is made within 30 days. Anil paid ₹ 10,000 within 30 days and balance amount after 30 days period. Purchases Account will be debited and Discount Received Account will be credited respectively with

(a) ₹ 40,000 Nil
(b) ₹ 40,000, ₹ 300
(c) ₹ 40,000, ₹ 1,200
(d) ₹ 40,000, ₹ 900

Ans – (a)

Goods taken by proprietor for personal use is called:

(a) Capital
(b) Drawings
(c) Asset
(d) Liability

Ans – (b)

Which of the following is correct entry to record cash purchase of ₹ 3,000 from Amar?

(a) Dr. Purchases A/c and Cr. Amar by ₹ 3,000
(b) Dr. Amar and Cr. Purchases A/c by ₹ 3,000
(c) Dr. Cash A/c and Cr. Purchase A/c by ₹ 3,000
(d) Dr. Purchases A/c and Cr. Cash A/c by ₹ 3,000

Ans – (d)

No entry is made in the books of accounts of:

(a) Trade Discount
(b) Cash Discount
(c) Discount Allowed
(d) Discount Received

Ans – (a)

A sole trader took goods costing ₹ 1,000 from stock from his own use. The normal selling price of the goods is ₹ 1,500.

Which of the following Journal entries would correctly record this?

(a0 Dr. Drawings A/c and Cr. Purchases A/c by ₹ 1,000
(b) Dr. Drawings A/c and Cr. Sales A/c by ₹ 1,500
(c) Dr. Drawings A/c and Cr. Purchases A/c by ₹ 1,500
(d) Dr. Sales A/c and Cr. Drawings A/c by ₹ 1,000

Ans – (a)

Goods sold to Mr. Dhoni for cash will be debited to:

(a) Dhoni’s Account
(b) Sales Account
(c) Goods Account
(d) Cash Account

Ans – (d)

Bad Debts earlier written off and now received are credited to

(a) Bad Debts A/c
(b) Bad Debts Recovered A/c
(c) Miscellaneous Income A/c
(d) Debtors A/c

Ans – (b)

Computer purchased for office use should be debited to:

(a) Office Expenses Account
(b) Office Equipment Account
(c) Purchases Account
(d) Miscellaneous Expenditure Account

Ans – (b)

Lalit, who owed ₹ 20,000 became insolvent. 70 paise in a rupee was received from his estate. Bad Debts Account will be debited by

(a) ₹ 20,000
(b) ₹ 10,000
(c) ₹ 6,000
(d) ₹ 14,000

Ans – (c)

Which account will be credited on giving the goods as charity:

(a) Purchases Account
(b) Drawings Account
(c) Sales Account
(d) Charity Account

Ans – (a)

Received a first and final dividend of 60 paise in the rupee from the official receiver of Rajesh who owed ₹ 10,000.

Select the correct statement from the following in the context of above:

(a) Discount Allowed A/c be debited with ₹ 4,000.
(b) Bad Debts Recovered A/c be debited with ₹ 6,000
(c) Bad Debts A/c be credited with ₹ 4,000
(d) Bad Debts A/c be debited with ₹ 4,000

Ans – (d)

on taking goods for personal use by the proprietor, the account debited will be:

(a) Purchases Account
(b) Sales Account
(c) Drawings Account
(d) Capital Account

Ans – (c)

Wages paid for the installation of a new machine will be debited to:

(a) Wages Account
(b) Profit & Loss Account
(c) Machinery Account
(d) Trading Account

Ans – (c)

Rent paid to Landlord should be debited to:

(a) Drawings Account
(b) Landlord Account
(c) Rent Account
(d) Personal Account

Ans – (c)

On selling old newspapers, the account credited should be:

(a) Sales Account
(b) Miscellaneous Income Account
(c) Goods Account
(d) Cash Account

Ans – (b)

The journal entry for goods sold to Gopal for cash should include:

(a) Debit to Gopal and Credit to Sales
(b) Debit to Sales and Credit to Cash
(c) Debit to Cash and Credit to Gopal
(d) Debit to Cash and Credit to Sales

Ans – (d)

X returned goods for ₹ 2,000 to us. The account debited will be:

(a) Goods Account
(b) X’s Account
(c) Return Inward Account
(d) Return Outward Account

Ans – (c)

What will be the amount of capital in opening entry, if the following balances appear in the books of SK Sons?

Assets – Cash in Hand ₹ 430; Cash at Bank ₹ 2,675; Sundry Debtors ₹ 7,495; Closing Stock ₹ 9,000; Machinery and Equipment’s ₹ 6,000.

Liabilities and Capital – Creditors, ₹ 5,600.

(a) ₹ 20,000
(b) ₹ 10,000
(c) ₹ 25,600
(d) ₹ 15,000

Ans – (a)

Mohan (Debtor) from whom an amount was due, declared insolvent and paid only 60 paise in a rupee. Total bad debts from his were written off ₹ 7,200. What was the amount actually due from Mohan?

(a) ₹ 24,000
(b) ₹ 18,000
(c) ₹ 12,000
(d) ₹ 16,500

Ans – (b)

Purchased goods from Rahul of the list price of ₹ 50,000 for cash at 20% trade discount and received 3% cash discount. Amount credited to Discount Account will be:

(a) ₹ 10,000
(b) ₹ 1,500
(c) ₹ 1,200
(d) ₹ 11,500

Ans – (c)

On selling the goods for cash of the list price of ₹ 40,000 at 15% trade discount and 4% cash discount, cash A/c will be debited by:

(a) ₹ 32,640
(b) ₹ 32,400
(c) ₹ 34,000
(d) ₹ 38,400

Ans – (a)

Bought goods for cash for ₹ 10,000 at 20% trade discount and 2% cash discount. Entry will be:

(a) Debit Purchases by ₹ 78,400 and Discount by ₹ 1,600 and Credited cash by ₹ 80,000.
(b) Debit Purchases by ₹ 78,400 and Credit cash by ₹ 78,400
(c) Debit Purchases by ₹ 80,000; Credit cash by ₹ 78,400 and Discount by ₹ 1,600
(d) Debit Purchases by ₹ 80,000; Credit cash by ₹ 78,000 and Discount by ₹ 2,000.

Ans – (c)

Purchased an old machinery for ₹ 50,000 and spent ₹ 2,000 on its carriage and ₹ 10,000 on its immediate repairs. Machinery A/c will be debited by _ .

(a) ₹ 50,000
(b) ₹ 60,000
(c) ₹ 62,000
(d) ₹ 52,000

Ans – (c)

Payment for Income Tax ₹ 5,000 will be debited to:

(a) Income Tax Account
(b) Drawings Account
(c) Capital Account
(d) Profit & Loss Account

Ans – (b)

Ledger Folio Column i.e. L.F. in the journal is filled at the time of:

(a) Journalising
(b) Balancing
(c) Posting
(d) Preparing Trial Balance

Ans – (c)

Purchase of goods from X for Cash should be credited to:

(a) Purchase
(b) Cash
(c) X

(b)

Main Object of preparing a ‘Journal’ is:

(a) To ascertain the financial position of the business
(b) To journalise the cash transactions
(c) To make posting in the ledger
(d) To record the business transactions first of all.

Ans – (d)

Personal accounts are related to:

(a) Assets and Liabilities
(b) Expenses, losses and incomes
(c) Debtors, Creditors etc.

Ans – (c)

Real accounts are related to:

(a) Assets
(b) Expenses, losses and incomes
(c) Debtors, Creditors etc.

Ans – (a)

Nominal Accounts are related to:

(a) Assets and Liabilities
(b) Expenses, losses and incomes
(c) Debtors, Creditors etc.

Ans – (b)

Goods worth ₹ 7,000 given away as charity would be credited to:

(a) Sales A/c
(b) Purchases A/c
(c) Charity A/c
(d) Trustee A/c

Ans – (b)

Payment of ₹ 6,000 as wages to Workmen for installation of a machine should be debited to:

(a) Wages A/c
(b) Repairs A/c
(c) Machinery A/c

Ans – (c)

What will be the amount of Capital if Cash is ₹ 5,000; Furniture ₹ 12,000; Stock ₹ 30,000 and Creditors ₹ 6,000.

(a) ₹ 53,000
(b) ₹ 47,000
(c) ₹ 41,000

Ans – (c)

Gopal is our debtor for ₹ 10,000. He became insolvent and only 60 paise in a ₹ is received from him. The balance of ₹ 4,000 would be entered to the:

(a) Debit of Discount A/c
(b) Credit of Discount A/c
(c) Debit of Bad-Debts A/c
(d) Credit of Bad-Debts A/c

Ans – (c)

₹ 5,000 received from Mohan whose account was written off as bad in the previous year should be credited to:

(a) Mohan’s A/c
(b) Bad-Debts A/c
(c) Bad-Debts Recovered A/c
(d) None of these

Ans – (c)

Cash received from Kajal ₹ 36,000 after allowing her discount @ 10%. Amount debited to discount account will be:

(a) ₹ 3,600
(b) ₹ 4,000
(c) ₹ 4,400
(d) ₹ 40,000

Ans – (b)

Loss o goods by fire should be credited to:

(a) Sales A/c
(b) Loss A/c
(c) Profit & Loss A/c
(d) Purchase A/c

Ans – (d)

Goods costing ₹ 30,000 supplied to Mohan at a profit of 25% of sales price less Trade discount @ 5% will be credited to Sales A/c will:

(a) ₹ 35,625
(b) ₹ 38,000
(c) ₹ 37,500
(d) ₹ 34,200

Ans – (b)

Goods costing ₹ 20,000 is sold at a profit of 20% on cost and trade discount is allowed @ 10% and cash discount of 10% is also allowed. Half the payment was received at the time of sale. What is the amount of cash received at the time of sale?

(a) ₹ 9,720
(b) ₹ 10,800
(c) ₹ 11,880
(d) ₹ 10,820

Ans – (a)

Paid to Rahul on behalf of Sanjay ₹ 12,000 will be debited to:

(a) Rahul’s Personal Account
(b) Sanjay’s Account
(c) Drawings Account
(d) Cash Account

Ans – (b)

Sold goods worth list price of ₹ 8,000 at 10% trade discount and 2% cash discount. 2.5% received at the time of transaction only. The amount posted to discount account will be:

(a) ₹ 36 on Debit side
(b) ₹ 144 on Credit side
(c) ₹ 144 on Debit side
(d) ₹ 40 on Credit side

Ans – (a)

Journal records the transactions of a firm in a

(a) Periodical manner
(b) Chronological order
(c) Summarised manner
(d) Systematic order

Ans – (b)

Rent of proprietor’s house paid from account on cash will:

(a) Decrease the profit
(b) Increase the profit
(c) Reduce the capital of business
(d) Reduce the cash as well as capital of the business

Ans – (d)

What will be the journal entry for salary outstanding amounting to ₹ 5,500?

(a)

Outstanding Salary A/c Dr. 5,500
To Salary A/c 5,500

(b)

Salary A/c Dr. 5,500
To Outstanding Salary A/c 5,500

(c)

Salary A/c Dr. 5,500
To Cash A/c 5,500

(D)

None of the above

Ans – (b)

Amount due from Rocky (Debtor) ₹ 50,000 and received a cheque from him in full and final settlement of his account after discount of 2%. Identify the correct entry from the following:

(a)

Rocky’s A/c Dr. 50,000
To Discount Received A/c 1,000
To Bank A/c 49,000

(b)

Bank A/c Dr. 49,500
Discount Allowed A/c 500
To Rocky A/c 50,000

(c)

Bank A/c Dr. 49,000
Discount Allowed A/c Dr. 1,000
To Rocky A/c 50,000

(d)

Rocky’s A/c Dr. 50,000
To Discount Received A/c 500
To Bank A/c 49,500

Ans – (c)

A sells goods to B, costing ₹ 1,00,000 at a profit of 10% above cost, less 10% trade discount and a further 5% cash discount if paid within 15 days.

Which of the following Journal Entry would correctly record the sale in the books of A if B makes the payment within 15 days?

(a) Dr. A and Cr. Sales A/c by ₹ 99,000
(b) Dr. B and Cr. Sales A/c by ₹ 99,000
(c) Dr. B and Cr. Sales A/c by ₹ 90,000
(d) Dr. Cash A/c 94,050, Discount allowed A/c by ₹ 4,950; Cr. Sales A/c by ₹ 99,000

Ans – (d)

Payment of wages for installation of machinery will be recorded as:

(a) Debit Machinery A/c and Credit wages A/c
(b) Debit cash A/c and Credit wages A/c
(c) Debit Machinery A/c and Credit Cash A/c
(d) Debit wages A/c and credit cash A/c

Ans – (c)

Insurance premium of ₹ 12,000 paid for one year on 1st August 2019, unexpired insurance premium is on 31st March 2020 will be:

(a) ₹ 4,000
(b) ₹ 8,000
(c) ₹ 6,000
(d) ₹ 7,000

Ans – (a)

Purchased goods list price of ₹ 80,000 @ 10% trade discount and 2% cash discount 25% of amount paid immediately. The amount posted to cash account will be:

(a) ₹ 16,760
(b) ₹ 17,460
(c) ₹ 17,260
(d) ₹ 17,640

Ans – (d)